Five Corners TIF review gaining interest in Des Plaines

An idea recently floated by Des Plaines 2nd Ward Alderman John Robinson to eliminate the Five Corners tax increment financing district hasn't gained much momentum, but several city officials think it should be investigated.

The matter likely won't go before the city council for months as officials are preoccupied with the $102 million 2010 budget, expected to be approved in November if not at Thursday's final budget hearing.

The 70-acre Five Corners TIF is a largely industrial, partially commercial area north of Des Plaines' downtown and bound by River, Rand and Golf roads.

A draft redevelopment plan calls for building 463,900 square feet of new retail, restaurant, office space and townhouses.

The district was established Nov. 6, 2006, a day before voters overwhelmingly rejected the TIF proposal in an advisory referendum. Businesses inside the TIF district lobbied heavily against the idea.

Des Plaines Mayor Marty Moylan said Tuesday "it is feasible" the TIF may be dissolved if the reasons why it was created in the first place do not meet certain qualifications.

Moylan added it's possible some of the city's five TIF districts "were implemented without the proper justification or the proper follow up."

The motivation to re-examine the Five Corners taxing district at this time is largely due to the city's financial situation with depleted fund balances and a projected $5.2 million deficit. Also, redevelopment plans for the area are still in the preliminary stages.

"Obviously, there's not much activity happening at all and businesses are in a state of flux right now because the future is not known," Moylan said. "They don't know if they should remodel. They have a hard time selling. The property owner doesn't know if the property is going to be condemned."

Robinson, one of 11,525 voters who objected to the TIF district's establishment (he was not an alderman at the time), said his call to rescind the TIF is based on principle.

"People still feel the same way about it," he said. "I feel, at this juncture and our political climate, either terminate it or put it on hold. I want to find out the ramifications if we kill it ... weigh it financially against what the expenditures are going to be over the next (few) years."

Resident Dion Kendrick, who has been fighting the Five Corners TIF from the start, said the city already has too much debt to take on more for its redevelopment.

"Does the city of Des Plaines need to add somewhere between $50 and $100 million more to (its) bond debt?" Kendrick said of the figure quoted by officials during initial presentations on Five Corners redevelopment.

"The people of the city of Des Plaines voted this down 4-1 three years ago and the council should recognize the will of the people," he said. "Whether it is legally binding or not, it's morally binding."

Alderman Patricia Haugeberg, whose 1st Ward is home to the Five Corners TIF, agreed it is time to re-evaluate the TIF, but is undecided what the proper course of action is.

She added her constituents also have mixed feelings about whether the TIF is good for the area.

Haugeberg said the Five Corners area is a prominent entryway into the city and could use some attention.

"The TIF is probably the best way to do it, but is our timing right?" she said. "I think it's time to re-evaluate."

Michael Conlan, the city's director of community and economic development, said any discussion about eliminating the Five Corners TIF is premature because the city council hasn't even reviewed the redevelopment plan.

He added that aldermen haven't yet heard the "positives" involved in going ahead with the TIF at Five Corners.

"We have a number of businesses in the TIF district looking at this as an opportunity to expand," Conlan said. "The whole reason behind TIF districts, if they are done well, it's the answer to continued urban sprawl."

Conlan said TIF districts help with problems such as flooding and needed infrastructure improvements.

Yet, at least two of the city's TIF districts are losing millions of dollars.

The city council will review the proposed redevelopment plan for Five Corners on Nov. 16.