ALGONQUIN – A downtown tax increment financing district might be in the village’s future.
Algonquin is considering creating a downtown tax increment financing district to help with capital projects highlighted in its downtown plan adopted last year.
“While not the sole source of funding, a TIF district would be a key capital resource,” Community Development Director Russell Farnum wrote in a village memo.
As part of the downtown plan, planners recommended that the village start designing directional and gateway signs for the downtown and evaluate the possibility of having a recreational paddling and white water park.
To help pay for a portion of the improvements, the village could look into transportation and infrastructure grants, or even into setting up tax increment financing districts or special service area districts, among other things, planning consultants had said.
If a TIF district was ultimately approved, it would be the village’s first, said Village Manager Tim Schloneger.
The village has to conduct a feasibility study to see whether the area qualifies as a potential TIF district, which are used to redevelop areas in a community.
The money also can be used to help lure developers.
If a TIF district is feasible and meets the qualifications, the village must prepare a TIF plan.
That plan would outline the projects that are expected to be completed and the revenues and budget expected for the lifetime of the TIF district, which lasts 23 years.
Eventually the village would have to conduct a set of public meetings and review meetings, before the adoption of the TIF plan, according to village documents.
The village is proposing that Kane, McKenna and Associates out of Chicago, conduct the feasibility study, prepare a TIF plan and process the plan through the adoption process. The estimated cost would be about $36,000 on the high end, according to village documents.
The process will take about six months, Schloneger said. Village staff also will be able to handle some of the tasks as well, such as the necessary GIS work.
The village board on Tuesday is scheduled to vote on whether to go forward with the feasibility study and TIF planning work.
If the process moves forward, the village would have to notify affected taxing bodies, such as school districts.
“There’s a lot of public notice, a lot of boundaries, it’s a very bureaucratic process as well,” Schloneger said.
If you go:
What: Algonquin Village Board
When: 7:30 p.m. Tuesday
Where: Ganek Municipal Center, 2200 Harnish Drive