Carol Stream hopes TIF will spark growth

Plans are in the works for a tax increment financing district at a prominent corner in Carol Stream that could help spur economic growth there, officials said.

The TIF district designation is proposed for the southwest corner of North Avenue and Schmale Road, where three existing industrial use buildings sit next to a large vacant factory and available land for commercial use.

Officials hoped the corner could mirror newer retail developments that have arisen across the street on the southeast corner, such as a Starbucks location. But so far, that hasn’t happened.

Now the village is stepping in.

“We feel like we need to do something to get the development of the property forward,” said Village Manager Joe Breinig.

TIF districts are often used by municipalities as a means to create financing for economic development. Equalized assessed values for taxing districts within the proposed TIF district are frozen at current levels, and revenue from incremental EAV is used to fund redevelopment efforts.

A TIF redevelopment plan made available for public review on Tuesday states that current conditions on the corner have limited opportunities for private reinvestment and weakened the potential for business growth.

Under the state TIF Act, the report identified impediments to economic development, including: inadequate utilities, obsolescence, lack of community planning, excessive vacancies and deterioration.

Funds generated through the TIF district could make the area more viable and attractive to private development, according to the report.

“The public investment will lay the foundation for the redevelopment of the area with private capital,” the report states.

Breinig said the village would assist the current property owners to bring development to the corner.

The total redevelopment project budget is $22,150,000, to be used for construction of public works and other improvements, rehabilitation of existing buildings, and property assembly costs, among others.

The district would be in existence for a maximum of 23 years. The time period largely depends on how soon redevelopment occurs, Breinig said.

Carol Stream has had two other TIF districts in its history. The Carol Pointe Business Center TIF, located in the village’s industrial park, was in existence for less than ten years. The Geneva Crossing Shopping Center TIF at Schmale and Geneva roads is set to expire in 2022.

A meeting of a joint review board of various taxing bodies is tentatively scheduled for Oct. 11.

Final approval by the village board would come before the end of the year, Breinig said.