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Sugar Grove OKs controversial 761-acre development proposal

Despite passionate opposition from some residents, the Sugar Grove village board on Tuesday approved the controversial mixed-use The Grove development.

The board voted 4-2 to annex 761 acres at I-88 and Route 47, and create a planned development district with housing, offices, stores and businesses that could include warehouses and data centers.

  The proposed The Grove development has stirred vehement opposition from some residents, who say it will create safety, traffic and environmental hazards. Susan Sarkauskas/ssarkauskas@dailyherald.com

Trustees also voted to create a tax increment financing district and use funding from it to reimburse developer Crown Community Development up to $109 million in costs.

A TIF district works by freezing property tax payments to local governments at their current levels. Then, for typically 23 years, any increase in property tax payments caused by rising land values goes to a special village-controlled fund to pay for public and private improvements within the district, including roads and utilities.

Trustees Heidi Lendi and Sean Michels voted against every measure.

Michels opposed using TIF funding for the residential portion of the development. Lendi argued the land does not qualify for a TIF, because it is not blighted.

The annexation agreement stipulates that if the village did not create a TIF, Crown would not annex into the village. Crown contends it could not make a profit on the development without the financial assistance.

The board also agreed that if there isn’t enough money in the TIF fund at any given time to pay a reimbursement, it would pay the reimbursement later, plus interest of up to 8%, for up to 20 years.

Hundreds of people attended plan commission and village board hearings and meetings this summer to protest the development.

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