Elburn officials OK bank -- then bans all new ones for six months
Just moments after giving the green light for the construction of its sixth bank, Elburn leaders approved a six-month moratorium on future banks in the village on Monday.
"You made it in just under the wire," Elburn Village Administrator David Morrison told representatives from Castle Bank, who had just received final approval to construct a location on the northeast corner of routes 38 and 47.
With six banks officially part of Elburn's commercial landscape, and the possibility of a seventh in the future, trustees have previously expressed concern about their effect on the village.
Banks usually come to new commercial areas very early because they fund infrastructure and development costs for the site.
However, since a bank is not a service industry, it does not provide tax revenue for the village.
"Our main concern is they will take up all of the retail space on these corners," said Elburn Village President James Willey.
According to Morrison, an unnamed national bank was attempting to get contracts to build sites on three different retail locations within the village.
During the moratorium, the village plans to conduct a study on the potential long-term effect a large amount of banks would have on Elburn.
Other municipalities including Batavia, North Aurora, Wheaton and Hinsdale have also taken action to limit the amount of banks in their communities.
"It's not to prohibit banks, but to regulate banks so they don't take up valuable retail space on the main thoroughfare," explained Village Attorney Bob Britz.
The moratorium only applies to banks with drive- through facilities, and does not include financial institutions that have already submitted applications to the village.
If necessary, it is possible for Elburn leaders to either shorten or extend the moratorium based on whether or not they resolve the issue.
Castle Bank will join Walgreens as part of the Prairie Valley North Commercial subdivision, and is expected to begin construction next fall.