Mount Prospect considering TIF district as part of United redevelopment proposal
The wheels are in motion for the creation of a tax increment financing district on the south end of Mount Prospect that could benefit CloudHQ's proposal to redevelop the former United Airlines headquarters as a massive data center complex.
A resolution on Tuesday's village board agenda would, if passed, allow the village to reimburse itself for expenses related to the proposed TIF district, including consulting and legal costs. It also would allow the village to reimburse a developer for expenses prior to entering a redevelopment agreement.
The resolution is on the village board's consent agenda, meaning it could be voted upon without debate, though any board remember could ask for further discussion.
Also on the consent agenda is the board's authorization for Village Manager Michael Cassady to execute a contract with SB Friedman, the village's consultant for its downtown TIF district, for up to $9,175 to act as a consultant for the proposed South Mount Prospect TIF District.
A TIF district is an economic incentive mechanism in which property taxes within the district's boundaries would be frozen at their current levels for 23 years. Any additional tax revenue generated by rising property values in the district would be placed in a special fund to pay for improvements within its boundaries.
Community Development Director Bill Cooney confirmed that the United property could potentially benefit from the South Mount Prospect TIF District but said other properties are involved.
"It could benefit a lot of properties. Not just United," he said.
Meanwhile, the village board also is moving forward on approving CloudHQ's plan and a tax incentive for the development.
On Tuesday, the village board will meet to discuss the proposal unveiled and recommended at last week's planning and zoning commission meeting for a redevelopment of the 50-acre property bounded by Algonquin Road, Linneman Road and Dempster Street.
CloudHQ plans to develop three data centers there, investing $2.5 billion.
The village stands to benefit from property tax and utility tax revenue, as well as job growth, officials said.
The board also will discuss recommending to Cook County a Class 6B incentive that would reduce the property's tax assessment for 12 years, effectively reducing its tax bills.
"This opportunity is a big one," Mayor Paul Hoefert said. "There is a lot of revenue flow that would come from this for the village as a whole. This is a pretty nice opportunity that doesn't come along every day. Based on what I think I know, this is good for all of Mount Prospect, but certainly for south Mount Prospect."