East Dundee paves the way for Caterpillar sale, repair center
The East Dundee Village Board has voted to expand the boundaries of a tax incentive district to allow a Caterpillar sale and repair center to move to the village.
It's the latest step in a process to welcome the 23-acre, $15 million center to the south side of the Route 72 and Christina Drive intersection on the village's east side. Iowa-based Altorfer Inc., a Caterpillar dealer of parts and equipment, intends to vacate its Elmhurst location within the next year and spread those operations to four destinations, including the East Dundee parcel.
"We're in the home stretch here," East Dundee Village Administrator Jennifer Johnsen said. "Everything's just moving along through the normal process."
The village board on Monday voted unanimously to expand the business development district and add a .75% sales tax to certain Caterpillar transactions at the site. Also, there was no public opposition to a proposal to create a tax increment financing district to include the proposed Caterpillar property.
With the TIF public hearing completed, the village board is expected to approve the special taxing district for a term of 23 years at its next board meeting Sept. 28. In a TIF district, property taxes generated within the district are frozen and additional tax money generated by rising property values are used for improvements within the district.
Under the business development district agreement, tax money generated by the .75% sales tax increase is also used for improvements within the district.
Johnsen said Caterpillar began grading the site shortly after the village annexed the property in June. Caterpillar hopes to finish building the center in mid-2021.
"To have a Caterpillar dealership here in East Dundee on an undeveloped and newly annexed portion of property, it's exciting," Johnsen said.