Judge dismisses District 302 lawsuit to block Crown development TIF

A Kane County judge has dismissed Kaneland School District 302’s attempt to stop tax increment financing for the 760-acre Crown development in Sugar Grove.

After a short court hearing Nov. 19, Judge Kevin Busch ruled in favor of the village, whose attorneys argued that the school district could not object now when it did not vote against the creation the TIF at the Joint Review Board last year.

A Joint Review Board is made up of taxing bodies that would be affected by a TIF district, an economic development tool which freezes property tax payments to local governments like schools at current levels. Over the 23-year life of the TIF, any revenue increases are funneled to a special fund to help pay for improvements within the TIF district’s boundaries.

Last year, the Joint Review Board voted 3-3 regarding the TIF, records show. Kaneland 302’s representative voted present.

“This court finds that the school district had an obligation to vote no if it wanted to preserve its right to complain later,” Busch said.

“The argument that voting present somehow was no opinion — clearly, the present vote is akin to the school district saying, ‘We have no objection. We’re just going to sit back and watch and take no action. We’re just here, watching,’” Busch said. “The motion to dismiss is granted, with prejudice.”

Crown’s project, called The Grove, is a mixed housing and commercial development near the intersection of Interstate 88 and Route 47.

The school district sued the village in June, asserting that the project does not meet the statutory requirements of a TIF. The suit argues that the development area is neither blighted by flooding, nor is it contiguous, both required to meet the legal standards.