Hoffman Estates closer to tax help for Barrington Square
Hoffman Estates is one step closer to creating a tax increment financing district that would help with the redevelopment of the Barrington Square Town Center.
On Monday, the village held a public hearing on the TIF district between Higgins and Hassell roads east of Barrington Road, but only a handful of residents attended, and none of them voiced questions or concerns.
Monday night's hearing follows a recommendation for the TIF in February by a joint review board that included representatives from local governments that would stand to lose tax money from the deal.
Steve Friedman from SB Friedman, a development advisory firm, said Monday the TIF district is needed because redevelopment of the area has been a long-term goal for both the village and the owner.
The Barrington Square Town Center, which has struggled to gain new businesses after a Menards left the center in 2008, and the land behind it makes up the majority of the proposed TIF area. The 33-acre area consists of 10 parcels of land and three buildings, including a McDonald's, a Buona Beef and the Barrington Square Mall.
The proposed TIF area does not cross Hassell Road or include any of the residential properties adjacent to it.
The total estimated budget of the redevelopment project is $13.5 million. A large portion of the expenses stem from site preparation and the cost of building rehabilitation. Friedman added that to develop the site there are “extraordinary costs,” such as bringing it up to current stormwater regulations.
Residential tax rates will not increase if the TIF district is created. In a TIF district, extra property taxes from growth go to pay for some development costs instead of going to taxing bodies like parks and schools.
Friedman said a TIF eligibility study showed the area is a good candidate because of the age of some of the buildings, a lack of growth in the equalized assessed valuation, deterioration and the fact that without help from the village, it is unlikely to be redeveloped, among other factors.
“It (a TIF) is to set the stage for rehabilitation and development of additional space at the site and to do things that are necessary in order to be able to work in this marketplace today, where tenants are asking, ‘Is the site ready to go?'” he said. “The establishment of this TIF would get (Barrington Square Town Center) in the position to be ready to compete for those tenants.”
A joint review board with representatives from the taxing bodies that would be affected by this TIF — including Schaumburg Township District Library, Schaumburg Township, Hoffman Estates Park District, school districts 54 and 211 and the village — along with the public member met at the end of February and unanimously recommended the creation of the TIF.
“That's a little bit unusual, for a joint review board of taxing bodies to actually recommend this,” Village Manager Jim Norris said. “Their overwhelming sentiment was that they did not want to see the center decline further or lose further EAV, and that they felt it was worth the village's moving forward to generate economic activity there.”
A final consideration by the village board of the proposed TIF will take place May 7.