Long-planned taxing district approved at southern gateway to Arlington Heights
Arlington Heights has officially set up a long-hinted at tax increment financing district at the southern gateway to the village in an effort to spur redevelopment.
It's only the village's sixth such use of the economic development tool, whereby property taxes above a certain point are funneled into public and private projects instead of local governments like schools, parks and the library. And without it, village officials believe the area - now home to deteriorating buildings and excessive vacancies - wouldn't improve.
The new district encompasses a 65-acre area primarily along the east side of Arlington Heights Road, from the Jane Addams Tollway to Seegers Road.
It's the same area that was subject of a 2018 corridor plan that recommended a host of improvements, from installing landscaped medians to relocating sidewalks 8 to 10 feet from curbs, as a way to upgrade aesthetics and walkability. And a year before that, village officials hosted a meeting with area hoteliers who likewise sought upgrades.
"Much of what they said to us at that time was the corridor lacked in redevelopment opportunities," said Charles Witherington-Perkins, the village's director of planning and community development. "It's not reflective of the high standards of Arlington Heights."
With talk in recent years of making the area a TIF district, developers started to eye and assemble properties for redevelopment. There are at least three developers who have plans for sites they control or have under contract and are ready to begin zoning hearings at village hall this year, according to Bill Enright, the deputy director of planning and community development.
That could include inking redevelopment agreements with the village for TIF district funds, Enright added.
Even before the village board's unanimous approval Monday night, trustees last year agreed to loosen zoning standards at the southeast corner of Arlington Heights and Algonquin roads to replicate the higher density of the village's downtown. Chicago developer Bradford Allen has proposed a town center that could include multifamily homes, entertainment, restaurants, offices and a hotel.
All together, some 300,000 square feet of new commercial property is envisioned along the corridor and up to 750 new residential units, including senior housing, Enright said.
Village officials said they've been judicious with the use of TIF districts by making them small and targeted, like in the redevelopment of the downtown. With the new district, about 2% of the village's total land would be in a TIF, which expires after 23 years.
"I think the TIF is an excellent tool for us to use," said Trustee John Scaletta. "This village has had great success with it in the past."
Keith Moens, a frequent attendee of village board meetings, disagrees with the village's approach.
"I think that's a very subjective call to say that you would need to have a public financed TIF in order for this to develop," Moens told trustees during their virtual meeting Monday. "There's a mountain of research out there that says TIFs just do not deliver on promises."