Sugar Grove releases fact sheet, report on proposed I-88 TIF district
The village of Sugar Grove has released a one-page fact sheet regarding a proposed tax increment financing district encompassing the Interstate 88 and Route 47 redevelopment area.
The fact sheet and a full report can be read on the village's website, www.sugargroveil.gov.
"We commissioned the preparation of this report with SB Friedman (Development Advisors) to do an eligibility study of the land to determine if it legally meets the requirement to be designed as a TIF district," said Matthew Anastasia, the village's finance director/treasure.
The report concludes that the area qualifies as blighted, meaning that it's badly damaged or in deteriorating condition, and therefore qualifies for designation as a TIF district based on Illinois law.
"It doesn't initiate a TIF," Anastasia explained. "It doesn't establish a TIF. It's basically the first step of the process to become a TIF district."
The second half of the report includes a draft of the redevelopment plan and project.
"All of that obviously is in draft form until the board approves or does not approve," Anastasia said. "But it basically provides the guidance of the TIF as a tool over the 23 years, which is the life of that district, which it kind of includes goals of the district, why are you creating it and anticipated improvements."
A TIF district is an economic development tool in which property tax assessments in the designated are frozen at their current level for 23 years. Any additional property tax revenue generated through increased values goes to a village-controlled fund, to pay for improvements within the district's boundaries.
The fact sheet emphasizes there is room for adjustments, and a $338 million figure that's been cited does not represent the developer's request nor indicate what the village may approve.
"What that is, is that is basically establishing a limit that the village has for spending of qualifying expenses. It is not a redevelopment agreement with the developer. It has nothing to do with a developer. It is strictly (that) every TIF district has to have a redevelopment plan that has a budget in there that allows the village to have a spending limit on qualifying expenses that are spelled out in the TIF act," Anastasia said.