Palatine proceeds with making ‘blighted’ area a TIF district
Consultants have determined that the northernmost section of Rand Road in Palatine is indeed considered blighted, meaning the village can continue its efforts to establish a tax increment financing district between Lake-Cook and Hicks roads.
Chicago-based SB Friedman and Co., hired last fall for $31,400 to complete an eligibility study and redevelopment plan, pointed to qualifying factors throughout the proposed district including a lack of growth in equalized assessed value, deterioration, inadequate utilities, deleterious land use and layout, and a lack of community planning.
“Implementation of the redevelopment plan will strengthen the village’s economic base and enhance the quality of life for village residents,” the study report stated.
The North Rand Road Corridor TIF district would be the village’s fourth. Two others near Rand and Dundee roads have generated surpluses in recent years, while development in the downtown district has been largely stagnant.
Municipalities use TIF districts 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, rather than go to local governments.
The proposed district includes about 60 acres annexed into Palatine in 2007. Officials have said that particular stretch suffers from declining conditions, a lack of municipal facilities, a lack of maintenance, obsolete platting and little reinvestment. It’s mainly composed of used car lots, auto repair shops and vacant parcels.
Assistant Village Manager Mike Jacobs said the Illinois TIF Act includes a variety of requirements in a process that should take another four months or so. Part of that includes the completion of a housing impact study due to the number of nearby residences.
If everything goes according to plan, Jacobs said a public hearing on the housing study will take place next month, followed by a more general public hearing in July, an introduction of the ordinance and redevelopment plan later that month and finally passage in August.
District: Public hearing on housing study coming next month