Mount Prospect considering new downtown development
Mount Prospect's downtown is lagging behind the rest of the village in property values.
That is one of the reasons a new downtown Tax Increment Financing district is needed to replace one the village recently dissolved, a consultant told village officials recently.
In a TIF district, additional tax revenue generated by new development is diverted into a special fund to pay for economic incentives for builders and public improvements to the area.
A study by consultants SB Friedman showed that property values in the proposed TIF area - 235 parcels on nearly 180 acres in the area around South Main Street and East Prospect Avenue - has seen a steady decline the last five years. The area has lagged behind the rest of the village in value growth for four of the last five years.
"That is certainly a concern to us," said Village Manager Michael Cassady. "We are in the value creation business. That's what we need to do to be able to ensure our residents are not seeing tax increases to fund key services to the community."
Detailed information on the study, including maps, is at www.mountprospect.org.
Geoffrey Dickinson, a senior project manager for SB Friedman, said the TIF district would have an overall budget capped at $30 million.
"This is not a levy," he said. "This is a cap on spending. There is no obligation to spend money on your part."
The bulk of the budget would be spent on infrastructure improvements and assembling distressed property for redevelopment. There also would be money made available to Mount Prospect Elementary School District 57 for the cost of educating students generated by redevelopment in the TIF district.
"The village is obligated to help pay for the cost of educating those students out of TIF funds," Dickinson said.
According to the village, the expiring downtown TIF produced more than 500 new residential units and more than 40,000 square feet of new retail space.
"We have been to this rodeo before," Trustee Paul Hoefert said. "Many of us in this room were here prior to TIF one. We know what it looked like down here. We know the results that occurred from TIF one."
On the other hand, Dickinson noted, there are properties within the TIF that have not experienced much change, which is part of the rationale behind a second TIF.
Trustee Colleen Saccotelli asked Dickinson about the success of "re-TIFs."
"Has there been development the second time around?" she asked.
"We have worked on several re-TIFs, usually in downtown areas," he answered. "Frequently it's a situation that we're seeing here. There was half a loaf. You have got half of what you wanted out of that downtown.
"Your demographics are good. Your fundamentals are excellent. You're a town people want to invest in," Dickinson added.