City Offers Park and School Districts Revenue Sharing Agreement to Lessen the Burden of TIF
Park Board is considering the terms, and the School District has tentatively agreed to them, according to Park District documents.
Among other business on their Aug. 13 agenda, Elmhurst Park commissioners will discuss the City of Elmhurst's proposed North York Street tax increment financing district (TIF 4). Included in the Park District agenda packet released last week are some details of the negotiation process the city has begun with Elmhurst School District 205 and the Park District to lessen the impact of the TIF on their budgets.
TIF districts freeze assessed property values for local taxing bodies for up to 23 years to encourage redevelopment in areas considered blighted. TIFs generate new revenue through new construction in the TIF district, or if the township assessor increases the assessed value of the properties in the TIF district. The difference between the frozen property value and any new assessment or growth goes into a TIF fund. The city then uses this money to pay for any public improvements or to help finance redevelopment projects in the district.
According to a memo recently released to park commissioners, "Discussions have centered around the concept of an intergovernmental agreement in which the School District and, by extension, the Park District would receive a proportional share of the tax revenues generated (if any) from an increased EAV within the TIF on an annual basis."
Negotiations have resulted in a proposal that includes a distribution of surplus funds generated in TIF 4 in years 11 through 23, and a 2012 distribution of surplus funds from TIF 2 (Lake Street). Both the park and school districts would have to waive their rights to any challenge to TIF 4 once the agreement was in place.
According to a Park District memo, the School District already has tentatively agreed to the terms and the City Council will discuss the agreement in its Committee of the Whole Monday. The Park Board also will continue discussing the terms Monday.
Terms offered by the city to the school and park districts are as follows:
- Declaration of surplus in the Lake Street (TIF 2) fund of $1.5 million for distribution to all taxing districts: $1.02 (68 percent) to the School District, $84,975 (5.7 percent) to the Park District.
- Declaration of Surplus from the North York (TIF 4) fund from year 11 to 23 equal to 10 percent of the incremental property tax revenues generated.
- District 205 TIF eligible costs from TIF 4: Establish $5 million in capital and $1 million in job training in the North York TIF proposed budget with an annual review of TIF 4 revenues and expenditures to allow for the funding of District 205 capital projects for Conrad Fischer School and Churchville Middle School.
The Park Board meets at 7 p.m. at the Park District Administration offices, 225 S. Prospect Ave. Elmhurst City Council Committee of the Whole will meet at 6:30 p.m. at City Hall, 209 N. York Street. Elmhurst Unit District 205 will meet at 7:30 p.m. Tuesday, Aug. 13, at the District 205 administration building, 162 S. York. A TIF discussion is not specifically listed on the District 205 agenda.