Lake Zurich reviews downtown plans
Having spent roughly $29 million on downtown revitalization, Lake Zurich will be reviewing its redevelopment plan and costs so the village can fund future projects.
The village board's committee of the whole this week approved a contract with consultant S. B. Friedman & Co. of Chicago to amend that redevelopment budget and figure out how much more money is needed.
The village has reached its spending limit under its current tax increment financing district budget. The spending cap was set at $25 million in the original redevelopment plan ordinance, which must be amended if expenses go 5 percent over budget.
"We have to make sure that we have enough projected plans for new increment that will justify the sort of budget we're going to set up and the debt limit," Lake Zurich Mayor John Tolomei said.
Officials are rethinking what projects to undertake in future, since one of two initial redevelopment projects has stalled because of lack of funding.
Construction of the much-hyped five-story condominium building planned for a stretch of Route 22 across from the lakefront promenade is up in the air. The development cost is roughly $32 million to $35 million, including public/private investment.
"It's a combination of the developer wanting more, the bank being -- with the current economic environment -- not willing to lend us much, and the developer not being willing to bring anything into it," Tolomei said.
The TIF district established over the entire downtown area allows the village to capture taxes from increased property values into a 23-year fund to be used for redevelopment purposes. It is under this authority that the village borrowed money through bonds to be eventually repaid by TIF district revenues.
TIF district funds have been spent on improvements such as the lakefront promenade, beautification of Main Street sidewalks, purchasing land and offering developer incentives to transform a former chemical plant off Genesee Street into the 247-unit Concord Village subdivision.
Lake Zurich residents can expect public hearings within the next four months on the amended budget, similar to when the special taxing district was established in 2002.
"Then the community can make a decision about how much more money they want to put into it," Trustee Tom Poynton said. "We'd all like to see a nice, thriving, vibrant downtown, but at what cost? It's not a dead thing, but it just needs to be tweaked."
Consultants will be reviewing the village's downtown master plan to identify public improvements the village could help fund, such as infrastructure work, parking facilities and possibly future land purchases.
The village may also amend the TIF district boundaries to add some properties, and remove a bed and breakfast owned by Trustee Suzanne Branding so she may vote on redevelopment issues without conflict.