Adviser: Spring Hill Mall redevelopment not feasible without TIF

West Dundee's financial advisers have determined that the redevelopment of Spring Hill Mall is not probable without the creation of a tax increment financing district.

During a public hearing Monday, Robert Rychlicki, executive vice president of Chicago-based Kane, McKenna and Associates Inc., outlined the factors that make the village's portion of Spring Hill Mall eligible for the creation of a proposed TIF district: declining property values, excessive vacancies, obsolescence and inadequate utilities.

The $37.8 million redevelopment project proposed for the mall would likely fix those issues, Rychlicki said, but the project itself is feasible only with the use of TIF funds.

"The objective is to allow the mall to continue to thrive," he said.

In a TIF district, the property tax revenues that go to local governments are frozen for 23 years at a certain level, which is set on a base assessed property value, while any taxes generated above that level can go back into redevelopment.

Since 2009, property values at Spring Hill Mall have declined from $21.9 million to $12.9 million, according to village documents. During the life of the TIF, Rychlicki said, property values are expected to climb to roughly $20 million depending on market conditions.

If approved, TIF funds would be used to reimburse mall owner Rouse Properties for $7.6 million of the redevelopment project costs. Rychlicki said the money could also be used for public improvements.

Carpentersville trustees, who also agreed to contribute $1 million to the redevelopment, approved the creation of a TIF district for their portion of the mall earlier this month.

West Dundee trustees will vote on the proposed TIF district at a later date.