Hoffman Estates to consider tax incentive for redevelopment near I-90, bus terminal
Hoffman Estates village board members are poised to approve a tax incentive to encourage private redevelopment and the public improvements that would accompany it on 124 acres southeast of the Pace bus terminal and full interchange at Barrington Road and the Jane Addams Tollway.
A consultant's study two years ago determined the area to be ripe for what's often referred to as transit-oriented development, which can include an increase in higher density residential property.
There currently are no residential properties within the proposed tax-increment finance (TIF) district, which would encompass an area east of Pembroke Avenue, north of Higgins Road, west of the East Branch of Poplar Creek and including property between the creek and Hassell Road.
The village anticipates its costs for the implementation and public improvements in the TIF district at $30 million, which would be eligible for reimbursement by the funding generated.
A TIF district works by freezing the amount of property taxes local governments receive at current levels As property is improved and its value rises, the incremental increase goes to a municipal fund to pay for eligible costs.
TIF districts expire after 23 years or when all improvement costs have been paid, whichever comes first.
Lee Brown, president of Evanston-based Teska Associates, presented the proposal at a public hearing Monday. He explained that the amount of taxes property owners pay isn't changed by being in a TIF district.
"It's where the money goes and how it is used," he added.
A joint review board made up of representatives of the 12 taxing bodies potentially affected by the TIF district unanimously voted to recommend its approval.
Of the 12, the village is the one for which the district makes up the highest proportion of its total property value at 2.4%. The Hoffman Estates Park District is just below that due to its slightly different borders.
No one objected to the TIF district at Monday's hearing, which yielded only one clarifying question from a property owner.
The village board's scheduled approval vote on Sept. 19 will be preceded by a discussion at a Sept. 12 committee meeting.