Property values at risk in D303

In the June 21 Daily Herald article covering the District 303 lawsuit dismissal, the superintendent of schools said, “It’s possible Davis would receive the failing school label now as well.”

This not a good statement to make for parents of students, nor for home values on the near west side of town.

Next property value issue for all of St Charles: Mayor Dewitt pushed for the St. Charles Mall property to be developed by Shodeen with a strong residential component. There is a TIF on this property that unless developed as a commercial development, will cost St. Charles residents lost tax revenue for many years to come.

The Near West Neighborhood Association proved that this would be harmful to the residents by concentrating so much apartment density in the already concentrated apartment area. If the city tries to generate larger support for apartment development from all St. Charles it will have another negative effect on the near West community home values and an unannounced tax impact on all of St. Charles residents per the definitions below.

Tax issues concerning this development:

타 Wikipedia states,“ TIF creates funding for “public” projects that may otherwise be unaffordable to localities, by borrowing against future property tax revenues.”

타 “The process leads to favoritism for politically connected developers, lawyers, economic development directors and other implementers.”

타 “TIF can be seen as a kind of reverse value capture with private developers capturing what should be public tax dollars.”

타 “For example, the use of tax increment financing to create a large residential development means that public services from schools to public safety will need to be expanded.”

Federal and state governments are struggling to learn that you should not spend what you do not have.

Thank you, St Charles, for putting the $12 million electrical upgrade on hold.

Now we have reduced the fire department’s area of coverage and can save another $500,000 per year with cutbacks if action is taken.

We can also put the Red Gate Bridge on the back burner to save another $800,000-plus in tax revenue each year.

These revenue changes would prevent a tax increase in this economy. We could condemn the St. Charles Mall property to have the TIF removed, freeing up the future property negative tax risk. Commercial zoning produces immediate tax revenue, so let’s not change the existing commercial zoning.

These revenue saving options should preclude any need for the residents to accept any immediate tax increases or sewer system upgrade utility increases. This is our city, and we need all residents to act for sensible economic adjustments for spending, taxes and education.

Larry Norgaard

Member of Concerned Coalition for Sensible Spending

St. Charles