Three New TIF Areas in City's Sights

Elmhurst's Development, Planning and Zoning Committee announced the city's intention to study the feasibility of three new Tax Increment Financing districts. In giving city staff the go-ahead to draft resolutions for the full council's consideration, the committee signaled to other taxing bodies that Elmhurst wants to point this economic development tool at a few more locations.

In a Tax Increment Financing district, a city targets an underperforming area for redevelopment and sets a base value of the property. The growth in the value of the property over this base value is the increment, which goes into a special fund to make additional investments in the area, generating even more growth in the TIF. Currently, the city has three TIF districts: downtown, an area between Lake Street and Interstate 290, and Route 83 and St. Charles Road.

Last month, TIF experts Kane McKenna Associates identified five areas that could be new districts. The committee narrowed their preferences to three: York Road between North and Grand avenues, the York and Vallette area and Riverside Drive.

On Monday, Charles Biondo from Kane McKenna and Brian Baugh with city attorneys Storino, Ramello and Durkin told the committee the process of activating another TIF district could take four to six months. However, the city could still approve a few “good housekeeping” resolutions that would start setting the framework now for another district.

An “inducement” resolution, Baugh explained, would allow the city to reimburse developers for TIF-related expenses before a new district was in place. Also, the city could adopt another resolution informing other taxing bodies, such as School District 205 and the Elmhurst Park District, that a new TIF was under consideration.

Finally, the city could authorize Kane McKenna to begin its feasibility study of the three areas.

“Because this is such a sensitive issue, I recommend we take every step,” said 6th Ward Alderman and committee Chairman Steve Morley.

City Manager Jim Grabowski presented an update on the three current TIF districts, noting that, at the request of District 205, the city released parcels from the downtown TIF district in 2004, 2006 and 2007. This, the committee agreed, was proof that the city had a good track record for working with other taxing bodies affected by the TIFs.

The committee directed city staff to prepare the resolutions and an authorization for Kane McKenna to begin work, all of which the City Council will consider next Monday night. Kane McKenna will charge the city $24,000 for the feasibility study on all three areas.

“We have the maximum amount of information we need without paying for more,” Morley said.

Grabowski will present his TIF update to the District 205 School Board tomorrow night.