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Lake Villa taxing bodies support tax breaks on 243 properties

Lake Villa's push to spark development in the village's central area reached an important threshold this week with the recommendation by several taxing bodies to proceed with a special financing district.

“This was a huge step,” Mayor Frank Loffredo said of the action by the Joint Review Board, whose nine members represent the interests of taxing bodies in the proposed tax increment financing district covering 243 properties on 195 acres. Village officials last fall began the nine-month process to designate the area loosely bounded by Cedar Avenue and routes 132 and 83, which includes a Metra station and a modest business strip, as a necessity to ignite development. Visit lake-villa.org/TIF/.

“We've had one new building in the TIF area in the last 30 years. It's kind of staggering,” Village Administrator Karl Warwick said. “The area continues to decline in value — the EAV (equalized assessed value) has gone down 27 percent in the last five years.”

In a TIF district, property values and the amount taxing districts receive, typically are frozen for 23 years. Taxes are paid on increased property values that result from development, but the extra amount, known as the increment, is set aside for a variety of purposes to improve the designated area.

This mechanism is sometimes controversial and raises concerns especially for school districts — in this case, Lake Villa Elementary District 41 and Antioch-Lake Villa Area High School District 117.

TIF rules call for schools to be compensated for the cost to educate each student added as a result of development, although there is a cap on the percentage of TIF funds that can be used for that purpose.

In this case, District 117 would receive about $12,955 per student and District 41 about $6,801 per student, according to Warwick.

“We assured both school districts we wouldn't approve any development that exceeds that cap and if we did, we would make arrangements,” for full reimbursement, he said.

The review board vote was unanimous but District 41 abstained until an agreement was reached, according to Superintendent Lynette Zimmer.

“We do enjoy a cooperative relationship with the village and we are anticipating an intergovernmental agreement that will keep the school district out of harm's way,” Zimmer said.

The district understands the desirability of economic development, she added.

“At the same time, we have to protect the best interest of the district. I remain confident that all parties will continue to work together toward a positive solution and thank the village for understanding the needs of the schools,” she said.

A village concept for transit-oriented development envisions the potential for 500 multifamily units. Loffredo said no specific development is targeted and it is not the intent of the TIF to pursue high-density housing.

A public hearing on the proposed TIF designation is scheduled for June 9 and the village board is expected to vote in early July.

The open land along Grand Avenue in Lake Villa is among areas to be included in a special taxing district. Mick Zawislak/mzawislak
  Drivers head into the business district of Lake Villa. Mick Zawislak/mzawislak@dailyherald.com
Some upgrades to downtown Lake Villa could be in the works. Mick Zawislak/mzawislak
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