After months of objecting to Clarendon Hills’ plan to create a tax increment financing agreement along 55th Street, Hinsdale’s two public school districts have reached an agreement with that village.
Community Consoli-dated Elementary District 181 Board members Monday approved an intergovernmental agreement with Clarendon Hills that dramatically reduces the amount of tax revenue the district could potentially lose under the TIF.
“It’s been a journey,” said Mindy Bradford, assistant superintendent for business and operation. “We’re in a good place now.”
Thirty-six of 39 properties in District 181’s portion of the TIF have been declared “surplus,” Bradford said. This means any additional tax dollars related to increases in property values will go to the district rather than fund TIF improvements. With the 2023 equalized assessed valuation of the remaining three properties at about $316,000 and property tax revenue totaling about $8,000, taxes related to EAV growth would be immaterial, Bradford wrote in a memo to the board. One of the properties is owned by the village of Clarendon Hills and does not pay property taxes.
“Really it’s become an insignificant amount,” she said. “We were over $1 million when we first started looking at this property.”
Following concerns about the size of the TIF, Clarendon Hills trustees voted in November to reduce it (see sidebar).
“They revised it to be kind of a micro TIF focused on two specific properties,” Bradford said. Those properties are the former site of Tracy’s Tavern at 401 55th St. and 5506 Virginia Ave.
The intergovernmental agreement, which has been reviewed by District 181’s attorney, also provides additional tuition reimbursements to affected school district beyond what the law requires.
By signing the agreement, school district waive their ability to contest the TIF.
Board President Bill Cotter praised Clarendon Hills officials for listening to feedback from the school districts.
“Kudos to them,” he said. “I appreciate their willingness to compromise and work with the various stakeholders on that.”
District 86
Like their District 181 counterparts, Hinsdale High School District 86 Board members unanimously approved the intergovernmental agreement with Clarendon Hills regarding the 55th Street TIF district.
Under the originally proposed TIF plan, the 70 parcels included would have had their assessed value frozen at $14.02 million, with any revenue growth above that over the ensuing 23 years collected for TIF purposes rather than go to the school district and other taxing bodies.
The district had estimated that the assessed value would increase to as much as $40 million over the life of the TIF.
“While District 86 would not lose revenue from the TIF, all taxpayers within District 86 boundaries — not just those who reside within the TIF area — may see their tax rate increase more than it would have without a TIF,” district officials reported back in July when the issue first surfaced.
Board president Cat Greenspon said she was proud of the outcome to remove the burden from taxpayers.
“Thank you to all of the community members, families, partners, (chief financial officer Josh) Stephenson, Superintendent (Mike) Lach,” Greenspon said as part of her president’s comments. “I would like to thank the village of Clarendon Hills trustees for working hard to hear our concerns and addressing them.”
