Elburn weighs bank moratorium

There is a growing concern among Elburn leaders over the increasing number of sites in the village that are up for consideration as possible banks or financial institutions, and now they know that there have been many other local municipalities that have felt the same way.

On Monday, trustees heard a presentation by Matt Roeschley, associate with the law offices of Ottosen, Britz, Kelly, Cooper and Gilbert Ltd., attorneys for the village. Roeschley updated trustees on other municipalities that have taken steps to alleviate this concern.

Banks usually come to new commercial areas very early because they fund infrastructure and development costs for the site.

However, since a bank is a service industry, it does not provide tax revenue for the village.

"This is not an uncommon concern in the Chicago suburban area," said Roeschley, who cited Wheaton, North Aurora, Batavia, and Hinsdale as other municipalities that have dealt with this issue.

According to Roeschley, the situation in Batavia was the most similar to that of Elburn.

Batavia officials established a moratorium on banks within their business districts, which was extended for two years, until an ordinance was adopted that limited the amount of conditional-use permits for banks for a specified period of time.

However, before such steps are taken, attorneys recommended that Elburn conduct a study on the potential long-term effect of a large amount of banks, and other service industries, such as hair salons, on the village.

"We think it's (study) critical to establishing a zoning ordinance," said village attorney Robert Britz.

Elburn Village Administrator David Morrison emphasized that at this time no moratorium ordinance has been written on this issue, however, as the village continues to grow, it is something that will eventually have to be addressed.

"This is something that is going to continue to be out there," he said.