Hoffman Estates to see surplus in taxes generated

Local taxing bodies will receive more than $320,000 thanks to a TIF surplus in Hoffman Estates.

Village officials on Monday approved the transfer of $323,180 from the Barrington Road-Higgins Road tax-increment financing district allocation fund to Cook County. The county treasurer's office would then distribute the money among 14 taxing bodies.

That includes Schaumburg Township Elementary School District 54, which is set to receive the most at $121,065. Palatine-Schaumburg High School District 211 will get $88,186; the village of Hoffman Estates gets $35,492; and Cook County will get $19,501.

TIF districts freeze property taxes within a boundary, saving the money for development within the district, typically for 23 years. The thinking is after that time, the property values within the district would increase, generating more tax dollars in the future for bodies like library and park districts. Proponents call TIFs a development tool. Critics say it's a way to grant tax breaks to developers.

The surplus in this case comes from the 2006 tax levy year, and the TIF district generated a total of $517,531 in total taxes during the same period, according to the village.

Michael DuCharme, the village's director of finance, said the surplus money comes from taxes generated by four restaurants within the district -- Friday's, Max and Erma's, Romano's Macaroni Grill and the now-shuttered Lone Star Steakhouse. The village decided to set aside tax dollars from restaurants at the TIF's inception.

The village has seen similar surplus figures from the TIF district through the years. The board could elect to extend the TIF's life. However, the restaurant tax exemption wouldn't cover future projects within the district, Village Manager James Norris said.