West Dundee trustees approve new TIF district

West Dundee trustees are fulfilling a nearly two-year-old request from some downtown property owners by creating a new funding mechanism for redevelopment projects.

The village board on Monday unanimously approved establishing a new tax increment financing district that encompasses part of the downtown, as well as properties along Route 31 south of Main Street. The measure, which was proposed more than a year ago, is expected to help fund infrastructure and other public upgrades that could spur economic activity within that area, Village President Chris Nelson said.

Village officials for years have been discussing ways to finance a downtown revitalization plan, which includes expanding the riverwalk, stabilizing the riverbank, adding parking and completing other improvements. In the summer of 2016, the village created a special service area that raised property taxes within the downtown business district to offset some of the project costs.

At the time, a handful of property owners suggested looking into a TIF district that expanded beyond the downtown to relieve some of the financial strain on them, Nelson said. West Dundee officials discussed the idea with consultants, who determined it was an adequate option.

"We are sensitive to the plight of the people who own properties in the downtown area," Nelson said. "There's no denying that the downtown needed and will need significant improvements. It's hard for them to shoulder all that burden. This TIF will assist in mitigating some of that burden."

In a TIF district, the property tax revenues that go to taxing bodies are frozen at a certain level, which is set on a base assessed property value, for 23 years. Any taxes generated above that level can go back into redevelopment.

The new TIF, which has an assessed valuation of roughly $15 million, includes land on the far south side of the village with little to no property value, Nelson said. That means any improvements in that area - including a new apartment complex being constructed - will almost immediately generate a "substantial increase" in value, he said.

The taxing district also could help the village expand its infrastructure along the Route 31 corridor, making that area more attractive to potential developers, Nelson said.

"We think the TIF will help us provide that support and allow us to compete with (other) communities," he said.