Jewel-Osco and PNC Bank properties excluded, schools to share in revenues
Hinsdale High School District 86 and Community Consolidated Elementary District 181 would feel much less financial impact from a proposed tax increment financing district along 55th Street in Clarendon Hills under a new deal put forward.
At the Clarendon Hills Village Board meeting Monday night, trustees approved by a 6-1 vote an intergovernmental agreement with the districts that significantly scales back the scope of the TIF by removing the Jewel-Osco and PNC properties and promises the schools any surplus yielded from most of the other parcels.
"We'll be rebating a majority of the properties back to the school districts," Clarendon Hills village manager Zach Creer told trustees prior to the vote.
The pact now goes to the schools, which also includes Maercker Elementary District 60, for their approval.
The village's intent to use the TIF mechanism, which allows local governments to divert property tax revenue away from taxing bodies to instead fund redevelopment projects, drew opposition from the districts when the plan emerged over the summer.
District 181 estimated it would lose $1 million to $3.2 million in potential tax revenue over the 23-year lifespan of the TIF district. Clarendon Hills officials said the area along 55th Street from Western Avenue to Holmes Avenue qualified as a TIF district because of its older properties and need for infrastructure and traffic safety improvements.
A Joint Review Board made up of all the taxing bodies affected overwhelmingly opposed it in an advisory vote, contending that the plan was a misuse of the TIF tool and would result in higher taxes for all residents in the various districts. As the equalized assessed value in a taxing district increases, its tax rate decreases.
With the TIF artificially keeping the EAV in the included area from increasing, taxpayers subsequently pay higher rates to generate the amount of property taxes districts are allowed to collect under the tax cap.
Village President Eric Tech suggested the strong pushback from the schools compelled the village to revise its vision for pursuing upgrades and redevelopment in the neighborhood south of 55th Street and also seek alternative funding sources.
"We're not going to be hitting the taxing authorities with the same impact as originally thought," Tech said.
Village officials said the modifications will shrink the TIF budget by $12.6 million.
"What we decided was to really make a much more focused TIF around the former Tracy's Tavern property, to make it focused on trying to improve the intersection safety at Western (Avenue and 55th Street), potentially providing a crossing and a light there," Tech said. "And also be able to accumulate some funds for a future upgrade to the water down there."
The District 86 board is slated to discuss the 55th Street TIF at their regular meeting tonight but will take no action. District 181 communications directors Jeffrey Alstadt said the board is expected to take up the matter at its next meeting Monday, Dec. 16.
