Carpentersville approves TIF districts for Spring Hill Mall, Old Town

Creating two new tax increment financing districts is a big step for Carpentersville, officials said.

Now, TIF Project Manager Marty Bourke said the challenge will lie in figuring out how to encourage development within those districts - one at Spring Hill Mall and one in the Old Town and Route 31 area.

Trustees voted this week to approve the projects, which Bourke said are entirely different in nature but have similar goals: to spur economic growth and redevelopment within the community.

"This is the village board's continuing effort to improve the economic health of the community," Bourke said.

In a TIF district, the property tax revenues that go to local governments are frozen for 23 years at a certain level, which is set on a base assessed property value, while any taxes generated above that level can go back into redevelopment.

"That's one of the biggest things we've passed in years," Village President Ed Ritter said.

Carpentersville officials have expressed interest in bringing more businesses to the Route 31 and Old Town TIF district, which would stretch along Route 31 from just north of Gentle Breeze Terrace south to Hillside Street, across the Fox River and along part of the riverfront.

East of the river, the TIF remains south of Maple Avenue and extends east to Wilmette Avenue. It includes the Washington and Main streets intersection, Carpenter Park and several Community Unit District 300 buildings, including Carpentersville Middle School and Parkview Elementary School.

To attract that economic growth, Bourke said, the village is looking at making public improvements to that area. Trustees in the past have mentioned using TIF funds for stabilizing property along the Fox River, changing traffic patterns and improving infrastructure.

"It's going to be a complicated process for the village in the future to work through this TIF," Bourke said. "There's a lot of opportunities there, but there's nothing distinctive yet."

Economic improvement within the Spring Hill Mall TIF, on the other hand, is dependent upon the success of a single developer and its proposed $37.8 million redevelopment project, Bourke said.

Using incremental tax revenue, Carpentersville will reimburse mall owner Rouse Properties $1 million of the project's costs. West Dundee will contribute $7.6 million.

"In the long run, the village is willing to pay out its share as long as the mall is successful," Bourke said.

Trustees will vote on Carpentersville's final redevelopment with Rouse sometime in the next few months, he added.