Mt. Prospect proposes compromise to resolve Dist. 214 TIF suit
Mount Prospect officials have proposed a compromise to get Northwest Suburban High School District 214 to drop its lawsuit against the village's new tax increment financing district. But school district officials said Tuesday it doesn't go far enough.
District 214 sued on June 19 in Cook County circuit court over creation of the new TIF district that covers much of the same downtown area as a recently retired district. School district officials argue the village circumvented the “spirit and intent” of state law by including parcels from the old TIF, so in effect portions of downtown Mount Prospect could be under a TIF district for 55 years.
That has upset District 214 officials because, under a TIF, additional property tax revenues generated by new development — that would otherwise be coming to them and other taxing bodies — go to economic development projects.
Village officials have argued the new TIF district is necessary because growth and property values downtown are falling behind those of nearby communities and other parts of the village. They've also disputed that the old and new TIF districts are essentially the same, though there is overlap. The new TIF's boundaries cover more than 235 parcels on nearly 180 acres in the area around South Main Street and East Prospect Avenue.
The day after the suit was filed, Village Manager Mike Cassady presented District 214 with a proposed compromise, in the form of an intergovernmental agreement. It includes:
• Carving out six portions from the new TIF mainly along Northwest Highway, including Trezeros restaurant, Village Bank, ReMax, a day care, an office at Maple Street and property at the northwest corner of Central Road and Main Street.
• Allocating about $4 million in equalized assessed value back to the affected taxing bodies, which village officials say represents 40 percent of the total property value growth of the “overlapping” TIF properties.
• Sharing incremental taxes beginning in Year 12 of the 23-year TIF.
Mayor Arlene Juracek said in a news release the village has “grave concerns” with the amount of legal fees that could be expended by both sides, instead of on education or municipal services.
On Tuesday morning, school board members discussed the proposed compromise during a closed session. After the meeting, District 214 spokeswoman Jen Delgado said the district still has “significant concerns” with the deal as presented but would continue discussions “in the hope of reaching a mutually acceptable and equitable resolution.”
Delgado added that the district sent a proposed intergovernmental agreement of its own to the village in late March.
“It is unfortunate that the village did not respond until this past week, almost three months from the time the proposal was made and within 24 hours after the filing of the lawsuit,” she said.
Cassady has said District 214's proposal would have rendered the new TIF district moot because of the amount of TIF revenue that would have been siphoned off.
Both sides agreed to a deal in 2006 that allowed the village to extend the original TIF a dozen years in exchange for additional TIF revenues for the taxing bodies.