Carpentersville looks at establishing new TIF district for Spring Hill Mall
Carpentersville is considering establishing a special taxing district for its portion of Spring Hill Mall to help with future redevelopment plans.
At the village board meeting Tuesday, trustees discussed the village's financial involvement in the proposed $37.8 million redevelopment plan for the mall, which falls largely in West Dundee and partly in Carpentersville. The plan includes a new movie theater, an outdoor plaza, more restaurants and outward-facing retail shops.
Developing a tax increment financing district at Spring Hill Mall would "help facilitate the redevelopment of the mall in partnership with West Dundee," said Geoffrey Dickinson, senior project manager at SB Friedman, a development advising firm.
In a TIF district, property taxes that go to local governments are frozen at a certain level for 23 years, while any taxes generated above that level go back into redevelopment.
West Dundee and Carpentersville will establish their own districts, said Marty Bourke, Carpentersville's TIF project manager.
"The thinking is, not only is (the TIF district) going to improve that area, but it'll improve the commercial activity throughout the entire mall," he said, noting that Carpentersville's proposed TIF district would exclude its two anchor stores, Carson's and Kohl's.
A new TIF district goes along with the conditions listed in a term sheet between Carpentersville and mall owner Rouse Properties, which calls for an $8.6 million municipal contribution to the mall's redevelopment. Through incremental tax revenue, Carpentersville agreed to reimburse Rouse $1 million, and West Dundee will contribute the rest.
Carpentersville trustees also approved a sales tax rebate sharing agreement with Rouse on Tuesday. Starting at a base of $62,000, the village pledges 70 percent of all incremental sales tax revenue to Rouse for 23 years as part of its contribution to the project.
The West Dundee village board approved a similar sales tax sharing agreement with Rouse Monday. Both villages will vote on a redevelopment agreement early next year, after TIF districts are established, Bourke said.
The public will have plenty of opportunities to weigh in on the proposed taxing district for the mall, as well as two additional TIF projects in the works in Carpentersville, Dickinson said. Notices will be sent to all residents who live in or near the districts, and a public hearing will likely be held in November.
In the meantime, Village Manager Mark Rooney encouraged taxing bodies to reach out to village staff with questions.