E. Dundee residents oppose TIF district, but it appears likely

A proposed special taxing district in downtown East Dundee is headed for village board approval, despite widespread opposition from residents and the local school district.

The East Dundee village board held a second public hearing Monday on the planned tax increment financing district -- an area bounded by Van Buren Street to the east, the Fox River to the west, Barrington Road to the north and Haeger Potteries to the south. It would also include the north side of Route 72 from Van Buren Street to Summit School.

In a TIF district annual property tax revenue shared among taxing bodies in the district would be frozen over the 23-year life of the district. As the value of properties increases, the extra tax revenue they generate will be used to redevelop the district.

Village officials anticipate the district would generate about $50 million in tax revenue over 23 years.

But while at least five board members said they would support the district, residents on Monday again made it clear that they do not support the special tax area.

"It is unfair to District 300 because money doesn't go to the district," said Howard Burton, one of more than half a dozen residents who spoke out against the district Monday.

A representative from the school district also said District 300 would not support the creation of the TIF designation.

Others said more explanation was needed.

"The plan seems very vaguem and I don't see a timeframe or initial start costs," said resident Kathy Kalish. "It seems some things were going to happen without the TIF plan. If it was moving forward, why give them an incentive?"

But village officials said the special finance district is needed to improve infrastructure downtown and boost redevelopment in the area.

"This will allow us to focus on using general fund resources in non-TIF areas," said Trustee Mike Ruffulo, who added the village is struggling to bring in sales tax revenue.

"River Street needs a shot in the arm," Ruffulo added. "Our sales tax base needs a shot in the arm."

To produce the needed shot in the arm, Trustee Jeff Lynam said, change is needed.

"There is a tough challenge ahead of us and if we don't do something about it, we will be left with what we already have," Lynam said. "What we have isn't really cutting it."

The downtown TIF district would be the village's third. In 1997, the village declared Prairie Lake a special tax district, and the TIF area at routes 25 and 72 known as Dundee Crossings was created in 2006.

Trustee Rob Gorman, who owns property within the proposed district, did not participate in the discussion.

Meanwhile, Trustee John Cichowski said he would not support the area based on the proposal for condominium development.

The village board is expected to vote on the proposed district in June.