Not everyone supports Lakemoor business plan
A key part of Lakemoor's big picture strategy to improve its image and lure business is coming into focus, but not all affected government bodies are on board with the key component of the plan.
In the next several weeks, village officials are expected to vote on special designations for two areas generally north and south of Route 120 and west of Route 12, a heavily traveled area that long has been considered for its valuable commercial potential. Lakemoor wants to kick-start the process by establishing a special taxing district to make the area more attractive to developers.
“Not do or die,” Village Administrator David Alarcon said of the pending actions. “Do or wait.”
But Wauconda Unit District 118, Wauconda Township and the Wauconda Public Library District have raised concerns about the south area, saying it does not qualify for the tax increment financing designation and would defer eventual property tax revenue for years.
Wauconda Township Supervisor Glenn Swanson said he supports development but thinks it eventually will happen on its own.
“Why are we doing all this for the developer?” Swanson said. “I believe that corner is prime real estate for development.”
During the past year, the village considered various options to prompt action in both areas, particularly on a 74-acre open field on the southwest corner of the intersection, and settled on tax increment financing as the preferred choice. That property can hold up to 500,000 square feet in retail uses, according to Inland Real Estate Corp., which owns the parcel.
In tax increment financing, a common but sometimes controversial method of enticing development, the value of property from which government entities receive tax money is frozen for up to 23 years. As improvements are made, the increased value of the property also is taxed, but the proceeds — the increment — are put in a special fund used for a variety of purposes, rather than being shared among the taxing bodies.
An educational campaign regarding the proposal on the village website, www.lakemoor.net, includes information, maps, and questions and answers. About a dozen people attended a public information session Jan. 10. A public hearing regarding the proposed north and south districts is set for 7 p.m. Tuesday, Feb. 3, at the Lakemoor police station, 27901 Concrete Drive.
The argument for the district is that nothing has happened because of the estimated $15 million to $17 million cost of extending sewer and water, building roads and making other improvements that would make the entire area ready for redevelopment or new ventures.
“It's still a tough market, and we still have to be very diligent in efforts to market our town. This TIF provides opportunities,” said Matt Dabrowski, director of community and economic development. The two districts encompass about 146 acres, Dabrowski said.
Village officials note only 200 of the 4,600 students in District 118 are Lakemoor residents. Mayor Todd Weihofen contends there will be no impact to any of the taxing bodies because there will be no homes built in the southern district. Hundreds of jobs are among the potential benefits, he added.
“It will have a huge ripple effect,” he said. “Everyone in the whole region will benefit.”
But what the village regards as a nearly foolproof way of priming the pump without increasing taxes is seen by some opponents as unnecessary because they argue the area eventually will sprout on its own.
“Currently, we collect very little taxes for that area. It's vacant, it's farmland,” District 118 Superintendent Daniel Coles said. “When you add millions of dollars to the tax rolls, the (equalized assessed valuation) of the whole district improves and lessens the tax burden for everyone else.”
Coles made the comments last month during a required meeting of the Joint Review Board, which includes representatives from all the taxing agencies in the proposed tax increment districts. The panel unanimously recommended approval of the north district, but the vote was 4-3 in favor for the south area, with Lakemoor, a public representative, the College of Lake County and the Wauconda Fire Protection District voting to recommend approval.
All concerned agree the proposed north area, which includes existing businesses west of Route 12 and the southeast corner of the intersection, is ideal for the tax increment designation. But the township and school and library districts oppose the designation for the southern district, which includes the Inland parcel.
Opponents contend that chronic flooding, a condition cited to establish the area as a tax increment district, has not been demonstrated and so it doesn't qualify. An expert for supporters disputes that.
Swanson said he favors development but doesn't think a farm field should qualify as a tax increment finance district. He also had issue with the types of expenses that would qualify for reimbursement from the fund.
Weihofen said the village has not committed to anything and felt “a developer should pay their share” of expenses.