West Dundee OKs tax break for ailing retail center

The retail center at the busiest intersection in West Dundee will benefit from a tax break that trustees hope will bolster sales tax revenues as the village struggles to stay competitive with the Randall Road corridor.

Formerly dubbed Spring Hill Fashion Corner, the recently renamed Spring Hill Gateway -- at the northwest corner of routes 31 and 72 -- was unanimously designated a tax increment financing district Monday.

"As a group, we have decided to assist the redevelopment of the Fashion Corner, the Spring Hill Fashion Gateway," Village President Larry Keller said. "People are encouraged by what they see and we are encouraged to see it moving along."

In a special taxing district, commonly referred to as a TIF district, the property tax revenue shared by the local taxing bodies is frozen at current levels for up to 23 years. Development is spurred because tax revenue above the frozen level is funneled into improving the TIF district's infrastructure.

To be eligible, a location must be deemed a blighted area, exhibiting at least five of 13 predetermined factors.

A preliminary report by Busse showed the area displayed eight of the factors, including deterioration and excessive vacancies.

The project's price tag of about $30 million includes more than $16 million Oak Brook-based developer Accretion LLC paid for the property, as well as about $14 million in construction and other expenses.

An economic incentive agreement commits the village to a three-phase development of the area, a cost of about $4 million. That includes $2.5 million toward improvements to the western side of the property, while the balance will aid the upgrades to the eastern side, as well as the construction of a new development in the center of property.

Facade improvements and work on new signage has already begun on the retail center.

Trustees late last year postponed declaring the area, which features retailers like Toys 'R' Us and Catherine's, until after the new year to make the most of the 23-year life span of the special taxing district.

The TIF allocation is effective immediately, village officials said.

Accretion Chief Executive Officer Stelios Aktipis said he is courting national retailers but would not identify which ones might move into the area.

"When I first came to the board a year ago I said, 'If I build it, they will come,'" Aktipis said. "We are halfway of what I promised and the other half is coming."