Golf-Arlington Heights Road TIF making money

Arlington Heights’ tax increment financing district at Golf and Arlington Heights roads has collected $3.6 million and spent $3 million, according to the village’s 10-year report.

The 35-acre TIF district includes the International Plaza shopping center, and over the years has been the subject of lawsuits, which were settled in favor of the village or dismissed.

The village is still in court on one issue, to obtain through eminent domain property on the northeast corner that once held a gas station and where the owner had planned to build a Cap’n Nemo’s restaurant.

The only question remaining there is the price, Bill Enright, deputy director of planning & community development, said Tuesday.

Funds spent from the TIF IV fund include $2.25 million for acquiring and demolishing two properties on the northeast corner, as well as cleaning up the site.

The buildings that housed Arlin-Golf Plaza and Kitikada restaurant were considered obsolete. An additional $731,000 was spent on administration and professional services.

After the village acquires the third property and when the economy is strong enough, the 1.4-acre corner site will be marketed for retail development, said Enright.

At this time there is $638,000 in the TIF fund. The village has budgeted to spend $600,000 in a few years to extend storm sewers to 4.8 acres on the northern portion of the district that has been designated for office development and to reconstruct part of Council Trail in that area.

The village declared the whole area blighted in 2002 and planned to have a Super Target built where International Plaza stands, but gave up that plan in 2007, citing loss of time due to the lawsuits, increased costs and the economy. An office development in the Council Trail area also fell through.

Most of the money in the TIF comes from International Plaza, but the village currently has no plans for that area. During fiscal year 2011 the amount going into the TIF fell by half, from $556,000 to $267,798, with most of that representing a successful appeal of the International Plaza assessed valuation, said Enright.

However, in the most recent fiscal year the amount rose again to $637,855.

TIF money represents the increase in property taxes from the designated area after the TIF is established. This portion of the taxes can be spent only within the district and is not shared with local governments such as school and park districts.