Bartlett debates Town Center taxing extension

Bartlett officials are exploring whether extending a Town Center special tax district by a year would benefit local businesses.

The tax-increment financing district, or TIF, is scheduled to expire in December. The village created it back in 1986 to help spark downtown development, and it's generated about $14.5 million that have gone into improvements aimed at reshaping the center of the village. But some local officials and businessmen say results have been mixed, with many storefronts still vacant.

The Town Center is the largest of Bartlett's four TIFs and generated $1.6 million in 2007, according to Cook County data.

The village board could vote in July on extending the TIF through 2010. A one-year extension wouldn't be subject to approvals from the state or any affected taxing bodies.

TIFs are a commonly used vehicle for redevelopment in which property taxes generated from them - that would normally go toward local taxing bodies like schools and parks - are frozen. As property values rise, the increased taxes generated are instead used to help pay for redevelopment of the property.

That's why many of those local taxing bodies oppose the TIF extension, because they want access to the higher property taxes as soon as possible.

Bartlett Community Development Director Jim Plonczyski said village officials are analyzing data and taking public input to see if the TIF extension would be a good idea. For example, the village could expand its rebate program for businesses.

Newly elected Mayor Michael Kelly opposes the plan and said it's unfair to propose an extension only six months before the expiration date. The village had more than two decades to work on a development plan and doesn't need extra time, he said.

"They're talking about coming up with a plan in the last at bat, in the last inning?" he said. "To me, that doesn't make a lot of sense."

Representatives from four taxing bodies - Elgin Area Unit District 46 and the Bartlett fire protection, library and park districts - appeared Monday at the first of three public hearings to voice their opposition to the extension.

"Certainly, those are funds that we could put toward programs that serve our students," U-46 spokesman Tony Sanders said.

The village plans additional meetings on June 29 and July 13. Trustees want public input as they too hold mixed opinions on the issue.

Library Director Tom Morning said the extension would cost the library $50,000. He pointed out that tax caps restrict revenue streams for taxing bodies. That makes the money from TIFs more valuable, especially during the economy's current struggles.

But at least seven local businesses support the TIF extension, including Banbury Fair co-owner Bruce Suffern. The store has received TIF money for remodeling improvements. Suffern said Tuesday he doesn't want the downtown area to lose out on the money. The village has yet to spend $2.7 million in TIF funds, and if it doesn't use it, that amount will be distributed to the taxing bodies.

"We need time to spend the money wisely," he said.

Suffern would like to see it spent on better signs to help out-of-town shoppers find the downtown area, which is away from major thoroughfares.