Carpentersville offering tax incentives for business park beautification

Carpentersville is offering tax incentives to encourage businesses in the Spring Hill Center for Commerce and Industry to beautify their properties.

The village board on Tuesday unanimously approved implementing a new facade and maintenance improvement program for the business park on Commerce Parkway, which is included in the village's oldest tax increment financing district. Using TIF funds, the village will reimburse property owners for 10 percent of the costs associated with eligible exterior projects, such as landscaping upgrades, outdoor lighting or parking lot repairs.

The program was created at the request of representatives from the Spring Hill Center's property owners association, who want to boost the area's "aesthetic quality," Economic Development Director Patrick Burke said. Businesses are often more likely to invest in upgrading their properties if they're receiving some financial assistance, he said.

"We're trying to improve the visible image of the park," Burke said. The Commerce Parkway road has already been resurfaced this year, he added, and a new monument sign is being installed.

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

The facade improvement program will only be in effect until the Spring Hill Center TIF district expires next year, at which point the full tax base - including new growth - will be dispersed proportionately to all taxing bodies, Burke said.

"It's a somewhat short-term program," he said.

Property owners interested in participating must submit an application, which will be reviewed by the business development commission and the village board, according to village documents. Only one project will be considered per property.

Once an application is approved, the business has 120 days to complete the project and submit proof of payment before receiving the reimbursement.

When the TIF was created in 1995, the business park was vacant land with a total equalized assessed valuation of just under $28,000, Burke said. Now, the Spring Hill Center has 15 to 20 businesses and an EAV of roughly $5.6 million.

"That's really what TIF districts are supposed to do: Bring that type of private investment where it wouldn't have occurred otherwise," Burke said. "It's been a very successful TIF."