West Dundee approves special taxing district for downtown

A group of residents and downtown property owners have spent the past few months protesting the creation of a special taxing district in West Dundee.

They displayed signs along Main Street, sent out fliers and spoke publicly against the proposal, which could raise property taxes in the downtown business district to help fund redevelopment projects.

Their efforts weren't enough to dissuade the village board, which voted 5-1 Monday to establish a special service area from Lincoln Avenue south along the river to Oregon Street and west to Third Street. But trustees did promise to continue discussions and consider alternate funding options before December - the village's deadline for deciding the amount levied for the following year.

"The discussion does not end tonight. ... We are looking at alternatives to try to lessen the burden on those whose businesses are in the SSA," Village President Chris Nelson told the dozens of business owners and residents in attendance. "I encourage you to be a part of those discussions."

The measure allows the village to levy up to 80 cents per $100 in taxable property value within the special service area, which would generate about $34,000 per year. That money, in addition to other funding sources, would go toward the village's annual $137,000 debt repayments.

In what officials are calling a "phased-in levy approach," trustees also agreed they would not levy more than 40 cents per $100 in taxable value the first year of the special service area. Officials have indicated one-time revenue sources, such as building permit fees from a new development, would make up the difference.

Several property owners and residents opposing the special service area addressed trustees Monday, arguing the tax increase places an unfair burden on small businesses. Some, such as resident Julie Fox, suggested higher taxes would be a detriment to future development.

"When our downtown suffers, we all suffer," she said. "Everyone who lives, operates a business and is a patron of our downtown businesses will suffer."

Bonnie Yates, who lives and owns a counseling business on Main Street, said the planned improvements would benefit more than just the downtown businesses and suggested spreading such a tax to the entire village.

Trustee Dan Wilbrandt, who voted against the measure, has long opposed the village borrowing money for downtown improvements without having a funding plan in place. He recommended brainstorming other funding mechanisms with businesses and residents.

"Everybody benefits from the beatification, the modernization of downtown West Dundee," he said. "It's a whole village problem that deserves our time and attention to figure out how to pay for it."