Other local governments endorse Schaumburg tax incentive to redevelop unincorporated homes

Leaders from other taxing bodies affected by a proposal to convert an unincorporated residential area near Schaumburg into a large commercial property endorsed the village’s plan to offer the developer tax incentives Monday.

The village is planning to annex the residential area along Long Avenue on the village’s southwest side and then designate it a tax increment financing district. By doing so, other taxing bodies like school districts, park districts and townships, would lose out on property tax revenue growth within the new TIF district for up to 23 years.

The additional property tax revenue generated by the new commercial redevelopment would instead go back to the developer and village to spend on infrastructure improvements there.

The new 70-acre TIF district — the village’s fourth — would also include the adjacent Wintrust Field baseball stadium and the north parking lot of the Schaumburg Metra station.

Schaumburg Economic Development Director Matt Frank said those other properties are being included in case any improvement opportunities should arise there over the life span of the TIF district.

The TIF plan was endorsed by representatives of Harper College, the Schaumburg Park District, the Schaumburg Township District Library, Schaumburg Township Elementary District 54, the village itself and the panel’s citizen member, Tim Gerhardt.

Absent from this initial meeting were Cook County, Schaumburg Township and Palatine-Schaumburg High School District 211 representatives.

Chicago-based Logistics Property Company LLC wants to build two spec industrial buildings totaling 436,500 square feet where 19 homes currently sit.

The company has all the homes under contract to purchase, with a closing expected in early 2026.

Frank said the developer told the village the project wasn’t feasible without the assistance of the tax incentive.

This TIF district is estimated to generate $111 million in eligible funding over its 23 years. The value of the 70 acres is estimated to rise from today’s $2.8 million to about $53.5 million.

The only voice of dissent came from Schaumburg resident Sorin Ariton, who felt the project would affect his route to the Metra station and cause flooding, though officials dispute that. He further suggested the area be redeveloped as a large park instead.

“I know it’s business,” he said. “We can’t stop the business going ahead, right?”

The village board will hold a public hearing on the proposed TIF district Nov. 11 ahead of a possible approval Dec. 9.