W. Dundee still talking about special tax district
In an effort to bring the once-bustling Spring Hill Fashion Corner back into vogue, West Dundee trustees Monday will consider creating a special taxing district at Routes 31 and 72.
The board will consider the proposal after postponing action on creating a tax increment financing district -- commonly called a TIF district -- until the new year.
The delay will enable the village to capture a TIF district's full 23-year lifespan and finalize obligations between the village and developer, Village Administrator Joseph Cavallaro said.
"The Fashion Corner is an integral part of the strength of Spring Hill Mall," Cavallaro said. "To maintain the mall as a strong regional commercial center, reinvestment is critical."
When a TIF district is established, the amount of property taxes paid to local governments is frozen for up to 23 years. Property taxes continue to increase, however, and the difference between the frozen level and what's paid -- the increment -- goes to pay for public improvements within the district.
Village President Larry Keller said sprucing up the area is essential for boosting the village's bottom line.
"I think it is important for the village to see the overall improvement of the area and one of the only tools we have to utilize is the TIF," Keller said. "The improvement in the business climate will increase sales tax from that Fashion Corner."
If approved Monday night, an economic incentive agreement would commit the village to the three-phase development of the area, now known as the Spring Hill Gateway, Cavallaro said.
That agreement, Cavallaro said, is worth about $4 million, which the village would recoup through the TIF district.
The project's price tag is estimated at $30 million, which includes the more than $16 million Oak Brook-based developer Accretion paid for the property, as well as about $14 million in construction and other expenses.
"It is a public/private partnership," Cavallaro said. "We are putting in $4 million toward the project for a reinvestment of $14 million."
About $2.5 million will be spent on the first phase of the project -- the brick and facade work Accretion has begun on the western side of the property that features TJ Maxx.
The balance will fund upgrades to the eastern side of the property where the OfficeMax and Factory Card and Party Outlet are located, as well as the construction of a new development at the center of the property, Cavallaro said.