Lake Zurich plan is silly, irresponsible
I read a recent article regarding Suzanne Branding's candidacy for Lake Zurich mayor and the comments by John Tolomei about downtown problems being fixed. The fact is that nothing is fixed and the village is bailing out the Titanic with a tea cup.
The village is increasing its bonded debt for the TIF from $20 million to $36 million. None will be available for development support, but will be available for existing debt services only. This is essentially only taking out a new credit card with extended payment terms only to pay off existing debt that we already cannot pay. I think that is one of the key factors in the national financial distress and we are playing the same silly game here.
The village currently has about a $1 million annual deficit for which there is no specific plan to remedy. The school district presented an invoice for tuition reimbursement back in July and still has not been paid the $532,000. It appears that the village will have to take out a loan from the water fund to pay it. That is patently offensive as they wanted part of the new bond proceeds to pay off a water fund loan.
The village holds extensive property at $12 million in listed asset value, yet market value (even under normal circumstances) would only be about $6 million at best. Under current conditions, I anticipate the values are only $3 million to $4 million. Part of that property is also under foreclosure with the Somerset townhouse project, which has put millions of dollars more at risk.
If the current development proposals do come through, it will take about 5 years for the first parts to be complete, taking 2 more years for it to contribute added taxes.
In short, Lake Zurich residents need to hear it loud and clear that the TIF has failed and that Tolomei has found every excuse for its failure, blaming everyone but himself. Yet, by law, all decisions required a village board vote and Tolomei has been a party to it all since the TIF started about 7 years ago.
Jim Tarbet
Lake Zurich