Palatine will send more Lake Michigan water to Deer Park in exchange for sales tax dollars

  • Deer Park officials have reached a deal with neighboring Palatine for the delivery of Lake Michigan water to parts of the village. In return, Deer Park will share additional sales tax revenue with Palatine.

    Deer Park officials have reached a deal with neighboring Palatine for the delivery of Lake Michigan water to parts of the village. In return, Deer Park will share additional sales tax revenue with Palatine. Daily Herald File Photo

 
Updated 8/15/2022 8:45 PM

Palatine will provide additional Lake Michigan water to Deer Park in return for a bigger slice of that village's sales tax revenue, under an intergovernmental agreement recently approved by both towns.

The agreement is an extension of an arrangement that dates back to 1999. That called for Palatine to provide water to the "triangle area" of Deer Park that's bounded by Lake-Cook, Quentin and Rand roads and includes the Deer Park Town Center.

 

In 2013, the area receiving water was expanded under a deal in which Deer Park agreed to share of 20% of sales tax revenues from new developments.

The new agreement will last for either 25 years or the term of Palatine's agreement with the Northwest Water Commission, whichever is shorter. The commission provides water to Palatine and other Northwest suburbs.

Under the deal, Palatine will boost its allocation from 345,000 gallons to 450,000 gallons per day. Deer Park will increase the sales tax sharing from a fixed 20% to a moving scale of 20% for the first six years, 25% in years seven to 10 and 40% following year 10. It also will apply to properties that had not received a water allocation.

Deer Park Village Administrator Beth McAndrews said the additional water will promote future development.

"We're excited, because now we have predictability," she said. "Through this agreement, we have the water we need to finish developing this area. So now, when developers are approaching us, we have predictability, we have a resource."

"We want to maintain this great relationship with Palatine," McAndrews added. "So, it's a win-win for both of us."

Palatine Mayor Jim Schwantz said the agreement is a good economic deal for the village.

"This goes back a long ways to some really forward thinking people that decided to grab Lake Michigan water years ago," Schwantz said. "So, thank you to the forefathers who put the forethought into that, because we're reaping the benefits now to be able to work and use water to our advantage. Every dollar we bring in in sales tax is one less dollar we have to levy (property taxes) for."

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