Lake in the Hills candidates debate economic development, finances
Lake in the Hills mayoral candidates disagree how successful the village's economic development efforts have been over the years and the village's financial outlook.
Trustee Russ Ruzanski is challenging Village President Paul Mulcahy in the April 4 election.
Ruzanski, 70, said he is concerned about the time it is taking the village to fill the Dominick's property at Algonquin and Randall roads. It closed in early 2014 and since then three retailers eyeing the property have backed out of the deal.
Midwestern retailer Big R last fall backed out of its plan to renovate and expand the existing building at 101 N. Randall Road. Village officials spent 10 months in discussions with the department store chain, and last May the village board authorized a $500,000 incentive package to help offset an estimated $2.1 million in renovation costs.
In 2014, the village adopted an economic incentive policy to help promote new investment from restaurants and independent small businesses looking to locate in areas where existing buildings require upgrades or remodeling. In the summer of 2015, the village hired an economic development coordinator to help fill vacancies in key retail areas and market the village at shopping center conventions.
Yet, "nothing ever comes of it," said Ruzanski, a retired sales manager for Coca-Cola Chicago who has served as village trustee since 2011.
Ruzanski added, he would like to monitor the coordinator's efforts more closely in future. "Business today is not what it was 20 years ago ... it's not all on the back of one person," he said.
Mulcahy, 65, said economic development takes time. He touted his efforts toward convincing McHenry County to abandon a controversial idea to put a continuous-flow intersection at Algonquin and Randall roads, to which local businesses were opposed. He said widening the intersection could be all that's needed to bring new businesses there.
The village shouldn't solely focus on the vacant Dominick's property, said Mulcahy, who previously served 10 years as village trustee.
"We need to revisit the possibility of establishing tax increment financing districts and to explore other means of enticing businesses in our community," he said.
Ruzanski said officials typically are maneuvering funds around to keep expenses in line with revenues. He believes the village will need new revenue sources to keep up with increasing yearly operational costs as three employee contracts come up for renewal.
"The gap is getting bigger and we are short funds," he said. "If you want to balance spending with what you're making, you really have to cut down on those expenses."
Mulcahy believes the village is in good financial shape with roughly 50 percent of total operating revenues in reserves - despite those reserves being projected to go down to 40 percent at the end of this fiscal year.
Village officials haven't raised property taxes in seven years, which is why officials have been spending down reserves, Mulcahy said.
Yet, officials couldn't plan for some unforeseen costs, such as transitioning to a new radio system and the necessary prevention of emerald ash borers, he said.
"The reason we have those reserves is extremely good stewardship of the people's money," Mulcahy said. "That is rainy day money, and 2017 ... it's going to rain."