Elmhurst Property Values Don't Reflect Upturn in Economy

Written by Carol Kania Morency

While the Elmhurst economy is righting itself after the downturn that began in 2008, it can take many more years for the rebound to be reflected in the city's property values, aldermen learned Monday night.

The Finance, Council Affairs and Administrative Services Committee saw the final 2012 property tax numbers from DuPage County, which show a decrease in the city's equalized assessed valuation of 10 percent. Property in the city was worth $1.9 billion in 2012, down from $2.4 billion in 2011.

Showing a reduction of 10.7 percent, York Township properties decreased more than Addison Township values, which were down 9.6 percent.

City Finance Director Marilyn Gaston said that this is the fourth year the EAV has decreased. The worldwide financial crisis in 2008 took its toll on the city, Gaston said, and both Addison and York township assessors tell her to expect at least one more year of lower EAVs.

On the surface, this does not square with the number of building projects going on in the city or the reappearance of orange construction fencing in residential neighborhoods.

“We're having a building boom in this town,” said 4th Ward Alderman Stephen Hipskind.

“But it will take two years for it to show up in the EAV,” replied his ward colleague, Alderman Kevin York.

Gaston confirmed that it's typical for the tax rolls to take two to three years to catch up to what residents may see on the streets. And other than encouraging economic development, there's little the city can do.

“We can't turn this tide by ourselves,” Gaston said.

While residential valuations are down 8.4 percent, the real shocker is the commercial valuation decline of 27 percent. Gaston said this is explained by the shuttering of Elmhurst Memorial Healthcare's former site on Berteau Avenue and the state's declaration that most of the new Elmhurst Memorial's campus at York and Roosevelt roads is tax-exempt.

Related: It's Official: Elmhurst Memorial Hospital Property is Tax-exempt—Mostly

2008 was the last year the city saw an increase in the EAV, when all property in the city saw a 9 percent increase. The last year the city was under $2 billion in EAV was 2005.