Montgomery report lists reasons for TIF district : News : Oswego Ledger-Sentinel : Hometown Newspaper for Oswego and Montgomery, Illinois
|Montgomery report lists reasons for TIF district |
|Need for financing, competitive marketplace cited among factors|
|by John Etheredge|
Montgomery Village President Matt Brolley said this past week village officials are moving forward with plans to develop a TIF (tax increment financing) district on the village's west side.
Brolley said village officials are seeking to establish the TIF to spur local business development on vacant properties along Orchard Road north of U.S. Route 30 and on Aucutt Road, extending east from Orchard Road.
A total of nine reasons for creating the TIF district were identified in a village community development department report presented to the village board Tuesday evening.
The first reason listed for establishing the TIF states: "Development today requires public-private financial partnerships. Private development deals are extremely tough to finance today. Developers, tenants, lenders, etc., are all asking the question of what public incentives are available."
Reason two for the TIF states: "It is a very competitive marketplace. Developers want to know what tools are in place now-not which tools you will consider. TIF, in particular, takes at least four months to create and for all but the largest of projects that is simply too long to wait."
The report notes: "There are over 400 Illinois communities that currently utilize TIF."
If eventually approved by the board, the taxable value of the properties within the TIF district area would be frozen at their current level for up to 23 years. During that time, any increase in tax revenues resulting from new development in the TIF district would be used to pay for improvements within the district.
The report also notes that much of the property proposed for inclusion in the TIF district is "subject to chronic flooding." Village officials have said previously that TIF district revenues could be spent to address the flooding issues thereby making the properties more attractive for business development.
The possibility the village may establish the TIF district is a matter of concern, however, to officials with Montgomery and Countryside and Sugar Grove Fire Protection Districts, which serve the proposed TIF district area.
During a board meeting last month, Montgomery and Countryside Fire Chief Tom Meyers and Sugar Grove Fire Chief Marty Kunkle said a TIF district would serve to freeze the amount of additional tax revenues they would otherwise receive from new development in the TIF district for up to 23 years.
He continued, "Basically, the taxes will remain the same for 23 years. That puts an extreme financial impact on the future of the fire district in providing services for all the TIF district."
Meyers noted the fire district will require additional revenues in the coming years to keep up with development in the Orchard Road area.
"For us to improve our services in the future and take our services to the next level, we are counting very strongly on the additional development and tax money we are going to receive from that area," he said.
Meyers added that he and other fire district officials are excited about the prospect of new development occurring along Orchard Road as a result of its recent widening to five lanes.
"However, we are not excited about losing additional tax dollars to service that area in the future if the TIF were to go through," he said.
Despite his concerns, Meyers said he would like to "work with the village board members further and explain to you how the decisions that you are going to make on the TIF district will affect the fire district for 23 years and our services."
but more homes vacant
Also in the community development report:
•Code enforcement violations increased in the first quarter from 258 in 2012 to 334 this year, an increase of 30 percent.
•Building Inspections Supervisor Mark Klupar completed 86 inspections in July in 16.5 days, an eaverage of 5.2 inspections per day.
•The number of homes in the village in some stage of foreclosure fell from 350 in January to 330 in June. However, the number of vacant homes in the village increased from 58 in January to 102 in June.
The report notes that village staff "spends time addressing property maintenance and housing code violations of foreclosed and vacant properties. To learn more about vacant homes in your neighborhood and how you can help or if you are interested in a public presentation, please contact community development at 630-896-8080."
•Work is continuing on a new comprehensive plan for the village. The report notes the public is invited to a "visioning charette" to be held on Wednesday, Sept. 11 beginning at 7 p.m. at the village hall.
The charette will provide interested residents a "chance to put pen to paper and map out what you want to see in Montgomery." Those who participate will work in both small and large group sessions.
Residents interested in participating are asked to contract Jerad Chipman, the village's senior planner, at 630-896-8080, ext. 1224 or email Chipman@ci.montgomery.il.us.
•Laura Rouse-DeVore, the village's code enforcement officer, will be the 2013 recipient of the International Code Council's Code Enforcement Officer of the Year Award. The report notes that Rouse-DeVore, who has worked for the village since April 2012, is the first code enforcement officer from Illinois to receive the award and the first woman. The report adds, "This award is given to an individual whose contribution to the code enforcement profession is meritorious and worthy of recognition."