Judge throws out lawsuit over $4.3 million funding for new Carpentersville Wal-Mart
East Dundee officials are mulling their next move after a Kane County judge again shot down the village's efforts to block Wal-Mart from receiving $4.3 million in special funding to build a new store in neighboring Carpentersville.
East Dundee officials estimate a loss of between $60,000 and $80,000 a month in sales tax revenue once Wal-Mart closes after a new one opens off Route 25 a few miles away.
Judge David Akemann declined to issue a temporary restraining order blocking the special funding from Carpentersville in 2013, and issued his ruling this week after the latest lawsuit filed by East Dundee.
“Obviously, we're disappointed in the judge's ruling,” East Dundee Village President Lael Miller said. “We're reviewing it at this point.”
The village has 30 days to appeal. Miller said the full village board could discuss the matter behind closed doors as early as Monday.
In his ruling, Akemann used a previous case in a dispute between two municipalities to make his decision that East Dundee lacked standing to sue.
Construction has already begun on the Carpentersville site; officials have pledged $4.3 million in funding from a Tax Increment Financing district.
In a TIF district, property values in a designated area are frozen for up to 23 years. As redevelopment occurs, the tax revenue from the increased property value, or increment, is used to fund infrastructure improvements within the district or defray costs for a developer.
East Dundee officials had argued state law prohibits TIF funding from being used if two developments are less than 10 miles apart.
Carpentersville attorneys argued the state law was not an “anti-poaching” statute. The village pledged $4.3 million in financial incentives even if the judge said that money could not come from TIF funds.
“We always respect the decision of any judge,” said Richard Gleason, an attorney for East Dundee. “We're obviously disappointed. We're still considering our options as to whether we will appeal.”