TIF district extension for Loeber Farm in Schaumburg wins key recommendation

A panel of local governments on Monday recommended the extension of a tax incentive to assist the controversial residential development of the Loeber Farm property in Schaumburg.

But two school districts also asked that they and all other affected taxing bodies begin receiving 10% of the annual surplus from the prolonged tax increment financing district.

Schaumburg village trustees in January approved Nitti Group LLC’s plan to build dozens of single-family, row and townhomes on the 33-acre farm on the town’s north side.

However, developers said its financial viability depended on the extension of the TIF district to fund public improvements such as utilities, a bridge over Salt Creek and measures to address chronic flooding.

A joint review board of affected taxing bodies within the district met Monday to decide whether Loeber Farm, along with six acres near Medieval Times and another acre at Algonquin Road and South Thorntree Lane, meet the criteria for an extension.

Only seven of the board’s 12 local governments attended and all voted yes. They were the village of Schaumburg, Palatine-Schaumburg High School District 211, Schaumburg Township Elementary District 54, Palatine Township Elementary District 15, Schaumburg Park District, Palatine Park District and the Palatine Public Library.

A TIF district freezes property taxes for local governments at the level of the first year. As land is improved and its value rises, the increased taxes fund public improvements and other eligible expenses for up to 23 years.

As part of the extension, representatives of school districts 15 and 211 asked the village to consider sharing surplus funds in future years. They said they’d reached similar agreements involving TIF districts in other municipalities.

Schaumburg Economic Development Director Matt Frank said the request Is unprecedented for Schaumburg, and the time for it to be decided would be the annual disbursement of funds.

Neighbors in adjacent Rolling Meadows have voiced concerns about the environmental impacts of building homes on the Loeber Farm for more than 25 years. However, Nitti Group's plan is the first to request a TIF extension to help fund public improvements.

Nitti plans to build 43 single-family homes, 37 row houses in eight buildings and 42 townhouses across 16 buildings. Their earlier proposal, which did not include the TIF district, called for 357 rental units.

Rolling Meadows resident Mike Bryskier told the Daily Herald earlier this month he hoped other local governments would question the extension of the TIF district.

“So even if Schaumburg sees the extension as a logical next step, I do think it is reasonable for other affected governments to ask harder questions or apply a different standard before going along with it,” Bryskier said. “I hope they do, especially the school districts, but I expect they will continue their ostrich act.”

A public hearing on the extension is now set for April 14, with village board approval possible on April 28.