Lake Zurich could seek tax increase to help fund Paulus Park Barn rebuild

Lake Zurich residents could see a referendum on new taxes as part of the village's plans to rebuild the Paulus Park Barn gutted by fire in early November.

The referendum, which would appear on the Nov. 3 general election ballot at the earliest, likely would seek voter approval for a bond issue to help fund the reconstruction and possible expansion of the barn.

The amount and its impact on taxpayers would depend on potential state assistance and how village leaders choose to proceed with the barn's rebuilding.

Fire broke out in the barn Nov. 2, 2019, leaving the 51-year-old building unusable for parks department programming. The cause of the blaze remains undetermined, Fire Chief John Malcolm said.

Village trustees voted Jan. 20 to apply for an Illinois Department of Natural Resources grant that would cover as much as 75% of the costs, up to $2.5 million. The village would be required to supply the rest.

Village trustees are considering four renovation options:

• Rebuild the 7,600-square-foot barn using primarily insurance money, along with about $500,000 in village funds. No new taxes would be required.

• Rebuild the barn along with a one-story, 9,000-square-foot addition. The addition would include a large multipurpose room with partitions, restrooms and an exterior patio. Depending on grant funding, the project would cost the village an estimated $1.2 million to $3.7 million.

• Rebuild the barn with a two-story, 18,000-square-foot addition. That would cost the village between $4 million and $6.5 million.

• Demolish the barn and build a new, 35,500-square-foot building that would cost the village up to $14.2 million.

Depending on which option village officials choose and how much state funding they obtain, a voter-approved proposal would raise annual property taxes anywhere between $12 and $141 for the owner of a $360,000 house, officials say.

"Looking into the future and gazing into a slightly cloudy crystal ball, I slightly prefer option four, but I can see option two being favored," Mayor Tom Poynton said. "Yes, it could mean a potential tax increase. But that would only occur after robust community engagement, which has only just begun."

Trustees are divided on the matter, with Mary Beth Euker and Jonathan Sprawka favoring option two, while others are taking a wait-and-see approach.

"Option four definitely provides the most opportunity for expansion," Trustee Greg Weider said. "The fire was a tragic accident, but at the same time, that facility was very limiting. There's a lot of things in flux right now."

Weider said village trustees will seek community input on which path to take.

Trustee Janice Gannon said she favors the first option.

"I don't think a big expense like that is something we can decide for ourselves," she said. "I'd rather see it go to referendum. Lake Zurich needs to take a real hard look at all the expenses we have looming."

The village last week announced it had received a different state grant of $400,000 to enhance Paulus Park. The funding will be used to extend walking trails, add a new fishing pier, install a canoe/kayak launch and replace the band shell, among other improvements.