Des Plaines mayor tells of new redevelopment plan

Des Plaines Mayor Tony Arredia said he has hopes of reversing the fortune of the city's biggest money-losing special taxing district.

Arredia, who made his comments Thursday in his state of the city address before the chamber of commerce, said the city hopes to capitalize off its transportation hub status to help stem the loss.

The plan would expand the 60-acre Wille Road taxing district, designed to lure industrial businesses, and "absorb the deficit," Arredia said.

Officials didn't give specifics on Thursday for how the plan would work. It's expected to go before the city council in March.

"It will offset what we lost in three or four years," Arredia said.

Illinois law offers incentives for private infrastructure developers that help secure the state's status as a major transportation and logistics location. Municipalities can designate areas within their boundaries as "intermodal terminal facilities," making it easier to offer tax increment financing to spur private development.

A city report last year found that the Wille Road district, if it continued as it is now, would have a $11.5 million deficit in 14 years. The city paid $20 a square foot for the property, but sold it to developers for $5 a square foot.

While the higher property tax money from new development was expected to cover the city's bonds, the granting of extra Cook County tax incentives put the venture further in the hole.

Arredia defended the use of the sometimes controversial taxing districts, citing the successes of others in Des Plaines.

The strongest taxing districts are the city's downtown district, with a $5.8 million surplus, and the district at Mannheim and Higgins roads, $4.3 million in the black with more hotels planned.

A tax increment financing district allows a municipality to collect future property tax increases that would normally go to schools, parks and other taxing bodies. Instead, the money goes to a separate city fund for development expenses over 23 years.