Alcatel Lucent property value reduced $31 million

It wasn't quite the tax break they were hoping for, but Alcatel Lucent will still be paying a lot less in property taxes this year.

Lisle Township officials have signed off on a plan that calls for the value of the technology company's former headquarters at 2600 Warrenville Road in Lisle to be reduced from more than $109 million to about $78 million. That equates to a drop of more than $10 million in taxable, assessed value.

Naperville Unit District 203 is one of the largest property tax benefactors of the 87-acre parcel. The district stands to lose more than $400,000 in tax revenue if the agreement is approved by the DuPage County Board of Review. That decision is expected next month.

The property has been vacant for years, but is currently the epicenter of a fracas between residential neighbors and engine-building giant Navistar over plans to move its international headquarters to the complex. The neighbors remain concerned about a proposed diesel-engine testing facility at the property that Navistar officials contend is not currently being planned. The neighbors want assurances the facility will never be built.

Alcatel Lucent had appealed the property assessment in January and had asked the Board of Review to reduce the property's market value to $31.5 million, which is more in line with the estimated $33 million price tag associated with the Navistar deal.

"The fact is the property - given what the market was - had come down in price, so we were seeking a fairer share on that," said Alcatel Lucent spokeswoman Mary Ward. "Navistar did have a right to review what we were doing, but we own the property and we have the obligation to pay taxes."

Lisle Township Assessor John Trowbridge said he could not comment on the proposed compromise because it was considered "pending litigation."

Navistar officials said they had nothing to do with Alcatel Lucent's property tax appeal and plan to restore the property value to the $109 million level if Lisle approves a Tax Increment Financing District proposal for the parcel. The special taxing district allows companies to use extra property tax revenue generated at the site over a 23-year period for infrastructure improvements at the site.

"Navistar has always committed publicly and reaffirms its commitment that any TIF district should be based on the existing assessed value, before the tax appeal," said Navistar attorney Russ Whitaker. "Navistar has no interest in reaping any benefit from the Lucent tax appeal or reducing tax receipts to local taxing bodies."

Lisle Village Manager Jerry Sprecher said the property value would have to be restored in order for the TIF proposal to remain "viable." Navistar still hasn't set a date to present the company's relocation plans to Lisle's planning and zoning commission.

And village officials have recently become the target of residents' complaints as they await Navistar's proposal. Members of Citizens for Healthy Development believe Lisle officials are hiding several conflicts of interest related to the Navistar deal. They complain that planning and zoning commission member Rob Getz's employment with a civil engineering firm working with Navistar on the relocation project wasn't disclosed. Getz has not attended any of the commission meetings, Sprecher said.

"I do not think not showing up for a hearing is a recusal," said MaryLynn Zajdel, a member of the citizens group and neighbor of the property. "I think a recusal should be public and should include why and identify the nature of the conflict."

She also believes Getz's father-in-law Lee LaFond, also a village trustee, should recuse himself along with Mayor Joe Broda who used to work for both Navistar and Alcatel Lucent.

Broda dismissed the charges saying he has no conflicts and he's checked with the village attorney to make sure. He doesn't receive a pension from Navistar, and the one he receives for working 31 years at Lucent doesn't fluctuate on the future fortunes or misfortunes of that company, he said.

"I'm tired of all this conspiracy stuff," Broda bristled. "There's no conflict."