Hoffman Estates approves $385,000 purchase of TIF-funded land
The Hoffman Estates village board unanimously authorized the $385,000 purchase of 11 acres of land Monday.
The purchase is part of a Tax Increment Financing District-funded redevelopment of the area.
The redevelopment includes the land on the southeast corner of Barrington road and the Interstate 90 tollway which is adjacent to the village's public works maintenance garage.
Although 11 acres of land were purchased, not all are usable, which resulted in the affordable price, according to village manager Eric Palm.
“The land has a lot of challenges to it. There’s a lot of wetlands in that area, so of the eleven maybe five to six are buildable acres,” he said. “There's billboards on that property as well, that have permanent covenants to operate there. When you factor all those things into it, it really is a much limited scope of property.”
Due to the proximity to the village’s public works maintenance garage, it’s possible the property could be used for public works expansion, said Palm. However, until a feasibility study of the land is performed, details of the development aren’t solid.
“We’re going to do more due diligence for all the property to see exactly what is buildable, what isn’t and what our options could be based on the conditions of the land,” Palm said.
This TIF district was created two years ago as a funding mechanism to encourage redevelopment in the otherwise underutilized area of Hoffman Estates.
Although small-business TIF grant’s for this development were approved in September, this purchase of land is likely to not see business development, due to the location and condition of the land.
A TIF district freezes the amount of property taxes that go to taxing bodies at the value of the first year. As properties increase in value, and their taxes increase, additional revenue goes to a municipal fund for public improvements within the district. This often results in the development of infrastructure and redevelopment within these districts.