Judge dismisses East Dundee lawsuit over Carpentersville Walmart
A Kane County judge has again thrown out a lawsuit filed by East Dundee officials in an ongoing legal battle aimed at preventing Walmart from obtaining $4.3 million in tax increment financing funds for its new Carpentersville store.
East Dundee leaders have been arguing for years that Walmart does not qualify for the tax incentives because the store is less than three miles from its former East Dundee location. State law prohibits special taxing district money from being used to entice a business to relocate within 10 miles.
Judge John A. Noverini dismissed the latest lawsuit Aug. 16, saying East Dundee's case lacks standing.
Walmart had already closed the East Dundee store and opened its new supercenter on Lake Marian Road last summer. Invalidating a TIF agreement between Walmart and Carpentersville would not ameliorate East Dundee's economic loss, Noverini said.
East Dundee also sought $450,000 to make up for lost sales tax revenue as a result of the store's closure.
Village President Lael Miller said East Dundee is not likely to appeal the judge's ruling, which he called "strange and confusing." Village officials are considering asking state legislators to implement specific consequences should a municipality be found liable of luring a business away from another town, he said.
"I think the law does need to be corrected," Miller said. "To have a law that's unenforceable and that doesn't have teeth to it does nothing to protect Illinois businesses from being poached."
However, Noverini says Walmart representatives announced their decision to close the East Dundee store and build the new supercenter "well before" a TIF agreement was approved.
"We agree, and we appreciate the judge's ruling," Carpentersville attorney Hart Passman said. "We're very pleased with the results. We've had great success with Walmart, and we're looking forward to more years of continued success."
East Dundee has filed three separate complaints - each of which was thrown out by a judge - over the course of more than four years. Village Manager Mark Rooney said Carpentersville has spent roughly $170,000 on related litigation costs.
"It's a meritless case," he said. "Hopefully they will not bring it (forward) again, and we can stop wasting taxpayers' money."
Information was not immediately available about East Dundee's litigation costs, Village Administrator Jennifer Johnsen said.