West Dundee to continue discussions on special taxing districts

West Dundee will continue debating whether to implement a new proposed tax in the downtown area that officials say will help repay debts, finance redevelopment and fund the village's involvement in a marketing initiative.

After hearing from several property owners opposing the concept Monday, the village board tabled two proposals that would establish identical special service areas from Lincoln Avenue south along the riverfront to Oregon Street and west to Third Street. The measures could increase the property tax rate in that area by a total of $1.60 per $100 in taxable value.

Village President Chris Nelson said the additional tax revenue could be used for fixing neglected buildings, incentivizing private investment and improving public spaces, thus creating a more vibrant community.

But several affected property owners spoke out against the measures, arguing a property tax hike would stifle development and make the downtown less desirable to prospective investors. Some said they don't believe the village should be taking money from small businesses to invest in public improvements.

”I have spoken to many property owners that this is going to be a tremendous burden to,” said property owner Lisa Dombrowski, who spearheaded an opposing petition signed by the owners of 14 downtown parcels.

If trustees approve creating the first special service area, the village could levy up to an additional 80 cents per $100 in taxable property value, which is expected to generate about $34,000 annually, according to village documents.

Those funds, in addition to sales tax revenue from a recently established business development district, would go toward paying off the village's debt obligations for various downtown improvements, including property acquisition and demolition.

The revenue generated from the second special service area, which is identical to the first, would be designated for the village's involvement in the Discover Dundee marketing initiative.

Trustees indicated they want to further discuss both proposals and receive more feedback from downtown businesses.

Some business owners, including Dawn DeWitt of DeWitt Salon and Spa, questioned why the village would consider placing the tax burden solely on the downtown businesses. Trustee Billy Pflanz suggested the village consider the use of impact fees to mitigate such a burden.

“I am asking all of you as a village to hear us out,” DeWitt said. “Don't take it personally, but for us, it is personal.”

The village board will gather more information and reconsider both proposals Aug. 22.