East Dundee mulls taxing district

The area map of East Dundee may soon include another shaded area as the village board considers adding another special taxing district to help lure developers along the Route 25 corridor.

Trustees on Tuesday held a public hearing for a proposed business development district for the almost 12-acre property at the corner of routes 25 and 68, an area known as Dundee Gateway. A Thornton's gas station is currently under construction on part of the site.

In the business development district, an additional half percent in sales taxes is applied, bringing sales taxes in the district to 9 percent.

If approved, the additional sales tax would go into effect Jan. 1, 2010.

A business development district is similar to a tax increment financing district, or TIF district, but is sales-tax driven.

Any revenue generated by the half-percent increase will be used to improve the business district. In a TIF, as the value of properties increases, the extra tax revenue properties generate are used to redevelop the district.

The village board approved a business development district designation for Dundee Crossings, located just south of Dundee Gateway on Route 25.

Robert Skurla, the village's economic development consultant, said the additional revenue would help the developer offset unforeseen road repair costs associated with intersection improvements.

Skurla said the Department of Transportation is requiring the developer, Dmyterko & Wright, to undertake about $900,000 in road work.

Those improvements would include extending Route 68, adding turn lanes and installing curbs and gutters.