West Dundee considering Spring Hill Mall TIF district
West Dundee is moving forward with plans to create a special taxing district for its portion of Spring Hill Mall.
The proposed tax increment financing district would be used to help facilitate the mall's $37.8 million redevelopment project, Village Manager Joe Cavallaro and Finance Director David Danielson said in a memo sent to the village board last week.
The TIF district would exclude the mall's anchor stores - Kohl's, Carson's, Macy's and Sears - and would include the JCPenney wing that is being demolished and will soon become the site of new development.
In a TIF district, property taxes that go to local governments are frozen at a certain level for 23 years, and any taxes generated above that level go back into redevelopment.
The village is expecting the mall to generate more money in property taxes because the renovation will likely increase its assessed value, according to the memo.
Officials have said the development is also expected to spur retail growth, which would bring in more sales tax revenue.
"This (project) is a way to generate new tax revenue above and beyond what the facility is doing today," Community Development Director Tim Scott said. "Beyond hoped for same store year-over-year improvements, without redevelopment, significant new revenue isn't likely. It underscores the importance of this substantial investment and partnership."
Carpentersville is in the process of creating its own Spring Hill Mall TIF district.
In August, the village approved a term sheet with mall owner Rouse Properties, outlining the village's involvement in the redevelopment project, which includes adding a movie theater, an outdoor plaza, outward-facing retail and free-standing restaurant and retail buildings.
As part of the agreement, Rouse asked for an $8.6 million municipal contribution to the project. Using incremental tax revenues, West Dundee will reimburse Rouse for $7.6 million, and Carpentersville will contribute $1 million.
A public hearing for West Dundee's proposed TIF district is 7:30 p.m. Jan. 18 at the village hall.