East Dundee to offer tax incentives for apartment project
A $1 million project to transform a vacant office building into residential apartments will receive financial assistance from East Dundee as long as a new special taxing district is established.
Trustees voted 4-1 Monday to approve a redevelopment agreement with broker Joe Billitteri, who plans to purchase and repurpose the 201 Penny Ave. property. Through that deal, the village promises to reimburse Billitteri for 25 percent of project costs, capped at $250,000.
The agreement is contingent upon the creation of a new tax increment financing district, which would freeze the property taxes that go to local governments at a certain level for 23 years. Any taxes generated above that level, which is determined by a base assessed property value, can go back into redevelopment.
Billitteri previously indicated that receiving tax incentives from the village would be necessary to fund his project. Renovation plans call for converting the offices into eight two-bedroom apartments, upgrading the building's exterior and improving landscaping.
In response to his request, East Dundee earlier this year began the process of establishing the proposed TIF district, which would cover the former office building, as well as a strip mall across the street at 210 Penny Ave.
Village Administrator Jennifer Johnsen said the special taxing area, if formally approved at an upcoming meeting, would spur the redevelopment of both properties, which have been underused and declining in value for years.
During a joint review board meeting Monday, however, representatives from other taxing bodies voiced concerns over how the proposed TIF district would affect their services and finances.
"My hope is that before a decision is made ... you truly take into consideration the impact it's going to have on the schools," said David Scarpino, a Community Unit District 300 board member.
Susan Harkin, the district's chief financial officer, also questioned the eligibility of the proposed TIF and said she worries the taxing area won't generate as much incremental revenue as anticipated.
Johnsen said the village is confident private investments will significantly raise property values within the TIF district. In addition to Billitteri's project, she said, the owner of 210 Penny Ave. plans to renovate and beautify the strip mall.
The village plans to work out agreements with both the school district and the Fox River Valley Public Library District to ensure fair compensation for any potential increased demand as a result of the taxing district, Johnsen said. The joint review board is expected to reconvene discussions at a later date.
Trustee Alan Hall voted "no."