E. Dundee OKs business district

Instead of dilapidated buildings, overgrown open spaces and crumbling sidewalks greeting motorists entering East Dundee from its eastern gateway, officials want attractive, high-quality buildings along repaved roadways and pedestrian-friendly sidewalks to be the first things people see.

With the adoption Monday of a business development district for an area near the intersection of routes 25 and 72, East Dundee officials are one step closer to achieving that goal.

Under the business district designation the village added one-half percent to bring the sales tax within the district to 9 percent. Sales tax throughout the rest of village will remain at 8.5 percent.

The added sales tax is expected to create $400,000 to $450,000 in revenue. The higher tax rate begins Jan. 1.

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 business district covers about 266 acres bounded by Route 25 from the Spring Hill Ford dealership on the south to Park Street on the north and by the ComEd lines along Route 72 on the east to Linden Avenue on the west.

About 120 businesses operate within the area, most of which is zoned for office and commercial uses. Two small lots are zoned residential. The district, which overlays the village's Dundee Crossings TIF district, does not include the Dundee Township Cemetery property.

"This allows us to get going on projects that we would have had to wait three to five years for the TIF money to kick in," said Village Administrator Frank Koehler. "We can start things like road improvements and sidewalk improvements."

Revenue generated by the additional tax will fund projects to enhance or revamp the area. The district includes the site of the former Santa's Village amusement park, Wal-Mart, the River Square Shopping Center and several new and used vehicle dealerships and auto repair shops. The tax rate will not apply to vehicle purchases.

Projects would include facade improvements to existing structures and a rehabilitation program to bring structures up to code. The village will also work with property owners to expand businesses.

Improved signs will direct motorists to nearby businesses and will be added at the easternmost boundary of the district.

With the village's largest sales tax contributor, Wal-Mart, readying to close shop, East Dundee is clamoring for ways to boost its bottom line and retain the village services it provides.

Though the village is limited to spending sales tax revenues from the business district within the area, village officials say improvements to the district would benefit the village as a whole.

"We are marketing East Dundee," Village President Dan O'Leary said. "It is an indirect benefit to the rest of East Dundee. If the car dealers benefit then the village's sales taxes benefit, and that goes into the general fund."