Mount Prospect weighs new downtown tax district

Concern within the Mount Prospect Elementary District 57 community about the impact of a proposed new tax increment financing district for the downtown emerged at this week's village board meeting.

The village has been evaluating the proposed district since early this year and working with units of local government since June. The TIF district would succeed the existing downtown district, which expires at the end of the year.

Village Manager Michael Cassady said at Tuesday's meeting the redevelopment plan is available on the village's website and at the village clerk's office. The board will conduct a hearing on the plan at its Oct. 18 meeting.

In a TIF district, new tax revenue from redeveloped property is used to pay for public improvements and other incentives to spur development instead of going to taxing bodies like schools.

Cassady said the original TIF district resulted in a sevenfold increase in the value of property in the district since it was formed in 1985. The new district, he said, would be expanded to include areas that "haven't seen the reinvestment." He pointed to declining property values, vacancies and failed restaurants as signs it is needed.

"Obviously this is not a done deal. We continue to collaborate and work with District 57 and the park district," he said. "We have had very positive meetings with them and have actually adjusted the boundary of the district based on those meetings."

Former District 57 board member Sann Knipple opposed a new district. She said it would shift the tax burden to homeowners who live outside it. And she said the decline in property values is "more symptomatic of the economy as a whole" than a problem with the downtown. She suggested encouraging development in alternate ways.

Marnie Kapuscinski said she is concerned about the impact on District 57. River Trails Elementary District 26 includes Randhurst Village, the Kensington Business Park and Mount Prospect Plaza, meaning that District 57 relies mainly on homeowners and the downtown for property tax revenue.

"A larger TIF district is going to make this situation worse, by decreasing the business tax revenue for the schools and increasing the burden on families," she said.

"Enrollment is growing and the schools are becoming crowded. Our teachers and administrations are underpaid, compared to surrounding communities."

If a revitalized downtown comes at the expense of underfunded schools, it might not be worth it, she said.