Elgin schools' officials later this month will discuss whether to support extending the life of a special taxing district in Hanover Park.
The Village Center Tax Increment Financing District, or TIF 3, established in 2001, has a $6.6 million deficit, according to the 2016 financial report. It spans roughly 207 acres bordered by the Hanover Park Metra Train station along Barrington Road and Route 20 to the north, and Church Road and County Farm Road to the south.
Village leaders are seeking to extend its life so they can try to bring in more investment from developers, Jeff King, chief operations officer for Elgin Area School District U-46, told the school board Monday night.
"The value of the EAV (equalized assessed value) has increased by about $12 million over the life of the TIF," King said. "Their issue was really the timing."
When the economy tanked in 2007-08, property within the district began to lose value. Typically, municipalities borrow against the growth in property values to invest in infrastructure and developer incentives, King said.
"They didn't have growth for eight or nine years. That just recovered two, three years ago," King said. "(The EAV) is a little over $20 million right now."
TIF districts typically expire after 23 years. During that time, any incremental property tax revenue generated is diverted from local taxing bodies and put into a special fund used toward infrastructure improvements and providing incentives to interested developers.
Hanover Park's TIF 3 is set to expire in 2024. Its life can be extended another 12 years if the village can get affected taxing bodies and the state Legislature to sign off.
CEO Tony Sanders said he believes Hanover Park has the support of other taxing bodies in the area for the extension.
The village's latest redevelopment plan for the area includes four-story or townhouse-style residential buildings to attract singles who would commute by train to the city for work.
A previous plan called for up to 13-story buildings that the current market won't support, said Shubhra Govind, Hanover Park director of community and economic development.
"The law does allow us to seek reimbursement for students who live inside of the TIF district," said King adding, U-46 has students who come from within that district now.
School board member Veronica Noland questioned whether extending the TIF would cost the school district money.
"They want our support, but what's in it for U-46," Noland said. "Is it going to cost us more or less in the end? Do we need that revenue?"