Carpentersville mulls ways to revitalize Route 25 corridor
With businesses continuing to move out and underdeveloped areas remaining vacant, officials in Carpentersville are considering a pair of special taxing areas to stimulate development along Route 25 on the village's east side.
Trustees on Tuesday discussed creating either a tax increment financing district or a business development district - or possibly both - along the corridor that includes empty stores, vacant lots and new businesses.
Phil McKenna, president of Chicago-based municipal and economic development consulting firm Kane, McKenna and Associates, presented board members and village staff with an overview of a proposed tax increment financing district.
In a TIF district, the value of a property as far as taxing bodies goes is frozen for a period of up to 23 years. Any additional property tax generated because of improvements on property within the district is funneled to a special fund that pays for infrastructure improvements in that district.
A business development district is similar to a TIF district, but is instead is sales tax driven. Any revenue generated by a sales tax increase is used to improve the business district. A sales tax increase up to 1 percent in quarter-percent increments is permitted.
No decisions were made Tuesday; the board voted to send the matter to the audit and finance commission for its recommendation.
The proposed TIF district would extend from Besinger Drive to Lake Marian Road and include the vacant property across the street from village hall, as well as Meadowdale Mall on the north end.
New businesses such as the Walgreens and Village Fresh Market would not be included in the TIF. Both, though, would fall under the business district designation.
"TIFs and business districts are set up to help municipalities develop areas that are under development or that they have had a hard time developing at all," Village President Bill Sarto said. "This area qualifies. We have had difficulties doing any development along there. It is needed and necessary and the options for shopping on the east side are limited. We do need some help."
Trustee Judy Sigwalt said given the current state of the economy, the village should err on the side of caution before adopting either option.
"We are going to take an already blighted area where businesses are having a difficult maintaining business, and then raise sales tax. That seems counter productive," Sigwalt said. "I say proceed with caution, the same as I did with the gas tax, because now is just not a good time."
The audit and finance commission will consider the districts at an upcoming meeting.