Schaumburg sets public hearing on TIF district

Schaumburg is taking its final steps toward a funding mechanism that would use local school, park and library taxes to help pay for public improvements near the potential site of a STAR rail line commuter station.

But it has to hear from the public first.

The village board Tuesday scheduled a public hearing on the creation of a new tax increment finance district to be held at 7:30 p.m. March 24 at village hall.

The intention of the TIF district is to encourage redevelopment of the area near the proposed STAR line station along the Northwest Tollway by the convention center.

The transit-oriented development model favors high-density condominiums and service businesses, similar to the areas near the Metra stations in downtown Arlington Heights and Mount Prospect.

The proposed area of Schaumburg's TIF district is north of the tollway, south of Algonquin Road, east of Meacham Road and west of Rolling Meadows.

A TIF district freezes general property taxes at the level of the district's first year. From that time on, any amount collected above that level goes directly to public improvements, rather than to the normal taxing body.

The district expires after 23 years or when all public improvements have been paid off, whichever is first.

Normally, the village collecting the TIF money is just as affected by the property tax freeze as the schools, parks and libraries. But as Schaumburg has no village property tax, it would pay the TIF fund 10 percent of the annual amount collected from all the other taxing bodies combined.

There is no intention of condemning property in the district, but merely to encourage private redevelopment by creating an acceptable plan, Village Manager Ken Fritz said.

The only possible change to a residential property in the plan concerns the Fieldpointe of Schaumburg apartments.

A representative of the apartment office Tuesday said the village's plans are having no impact on Fieldpointe.

But not only are the complex's owners at Chicago-based Draper and Kramer aware of the plans, public hearing notices are being sent to all current tenants, Schaumburg Community Development Director Christopher Huff said.