E. Dundee to seek tax-sharing if Walmart leaves

Though Walmart has indicated to East Dundee officials the store has begun to make a profit after several years of losses, Village Manager Robert Skurla is taking precautions against its potential relocation anyway.

If the retailer builds in West Dundee — the village board approved a store near Spring Hill Mall three years ago, but Walmart has yet to move due to pending litigation — East Dundee will suffer a major income hit in the sudden loss of tax revenue.

Skurla hopes to avoid the abruptness of that loss with special legislation at the state level.

“If they have to move there is nothing we can do about it,” Skurla said. “But we're looking into ways of easing the transition.”

While still in its initial phases, Skurla's request includes legislation outlining a gradual phaseout of tax revenue. That would give East Dundee nine years before the entire amount generated by sales tax would go to West Dundee, or any new location within 10 miles of Wal-Mart's Route 25 building.

Skurla mirrored his legislative request after an amendment to the Tax Increment Financing Act that prevented municipalities from offering extravagant TIF benefits to retailers relocating within 10 miles of their original locations.

Skurla submitted his plan to the legislative committee of the Metro West Council of Government last week but said the committee put him off. He acknowledged the request may have been premature — he had yet to approach West Dundee Village Manager Joe Cavallaro — but said based on the meeting schedules of the committee and the state legislature, he had to move forward.

Skurla said legislation tends to move very slowly, pushing East Dundee to start the process as soon as possible.

“You get your foot in the door, you get it drafted and then you ask again next year,” Skurla said of the legislation.

Cavallaro had not heard of Skurla's plan but said West Dundee, too, has suffered the loss of large retailers. Michael's, T.J. Maxx and Wickes Furniture have all left the village in recent years.

“It's part of the business cycles that retailers take in terms of making their decisions,” Cavallaro said.

Cavallaro would not comment on the likelihood of West Dundee supporting Skurla's proposed arrangement.

As one-sided as the collaboration may seem, East Dundee will continue to look into the possibility of the legislation and other ways to cushion the potential blow of Walmart's relocation.

East Dundee Trustee Paul VanOstenbridge said he thought legislation was worth a try, even if it doesn't sound like it would pass easily.

“We have to do everything possible,” he said.