Palatine exploring another Rand Road TIF district

A stretch of Rand Road in Palatine dotted with a hodgepodge of used car lots, auto repair shops and vacant parcels is being eyed for redevelopment.

The Palatine council this week approved spending up to $31,400 to study a possible tax increment financing district between Hicks and Lake-Cook roads.

“It doesn't make any commitments that we're doing anything,” Village Manager Reid Ottesen said. “This just starts to undertake the process ... to determine whether it's feasible to do it in this area.”

The North Rand Road Corridor TIF would be Palatine's fourth TIF district, which municipalities use as a tool to provide developers with financial incentives. As property values rise, TIF districts capture additional property tax revenue that can be used to fund improvements within the district.

Chicago-based SB Friedman will first determine whether the roughly 60 acres annexed into the village in 2007 would meet state requirements for a TIF district. If it appears likely to qualify, the company will study the age and value of existing properties, prepare a redevelopment plan and facilitate communication with affected parties.

The process is expected to take up to six months. If the district is established, TIF funds could be used to pay for the study.

Officials said that when that segment of Rand Road was annexed into the village, the majority of properties were experiencing deteriorating conditions, lack of maintenance and little reinvestment. At the time, there were questions over how much attention Cook County gave the unincorporated area, Deputy Village Manager Mike Jacobs said, adding that Lake-Cook Road was a logical extension of the village boundary.

Jacobs said significant infrastructure improvements are needed, as well as possibly a traffic signal to increase access.

“We do see development potential up there,” Ottesen said. “We see underutilized properties or outdated uses, which are general causes for some sort of incentive like (TIF funds).”

TIF districts often come under fire because they divert new tax revenues from schools, parks, libraries and other taxing bodies. But officials maintain everyone ultimately will benefit from an updated Rand Road corridor.

They also point to successful projects in the southern Rand Road and Dundee Road TIF districts, which contributed to Palatine getting Home Depot, Target and the new City Limits Harley Davidson dealership.