Schaumburg seeks recommendation to extend tax incentive to Loeber Farm housing development
Schaumburg and nearby local governments will soon discuss extending a tax incentive for redevelopment at the 33-acre Loeber Farm property.
The site received approval for a residential project in January.
The tax increment financing district currently covers 1,086 acres in north Schaumburg and would expand to 1,122 acres by adding three new areas, including the Loeber site. The TIF has already helped with redevelopment along Meacham Road near Algonquin Road.
A joint review board of affected taxing bodies will meet at 10:30 a.m. on Monday, March 16. They will consider whether the new areas can join the TIF district for the remaining 11 years.
Consultant SB Friedman & Associates recently determined the three properties qualify as blighted vacant land, making them eligible for TIF status.
Improvements needed for the Loeber property are significant. They include water and sewer utilities, a bridge over Salt Creek, and a sanitary lift station due to the site's elevation, according to Schaumburg Economic Development Director Matt Frank.
Developers and neighbors in adjacent Rolling Meadows have raised concerns about building homes on this site for more than 25 years. However, Elmhurst-based Nitti Group's recently approved plan is the first to request a TIF extension to help fund public improvements.
Last fall, Schaumburg Mayor Tom Dailly suggested TIF assistance could be a better option than previously considered high-density proposals needed to be cost-effective for developers.
Nitti plans to build 43 single-family homes, 37 row houses in eight buildings, and 42 townhouses across 16 buildings. Their earlier proposal, which did not include the TIF district, featured 357 rental units.
The total cost of Nitti’s development is estimated at $82 million. The village may offer $4.8 million from the projected $17 million in TIF revenue the site is expected to generate over the remaining life of the district.
A TIF district freezes property taxes for local governments at the level from the first year. As land is improved and its value rises, the increased taxes fund public improvements for up to 23 years.
In addition to the 29 acres for the Loeber site, village officials are also seeking to include one acre at South Thorntree Lane and East Algonquin Road, where a village gateway sign has replaced the old Frankly Yours hot dog stand. They also want to add six acres near Medieval Times’ horse stables east of Roselle Road.
All three sites are adjacent to the existing TIF district, as required.
Members of the TIF district’s joint review board are the village, Cook County, Palatine-Schaumburg High School District 211, Schaumburg Township, Schaumburg Township Elementary District 54, Harper College, Schaumburg Park District, Schaumburg Township District Library, Palatine Township, Palatine Public Library, Palatine Township Elementary District 15, Palatine Park District and the Plum Grove Sanitation District.
The joint review board only determines TIF eligibility. It does not debate Nitti’s proposal.
The joint review board's recommendation would lead to an April 14 public hearing, followed by a village board vote on the TIF extension April 28.