ALGONQUIN – A proposed Tax Increment Financing District would include parts of Algonquin Road and all of the western bypass, according to maps provided by the village.
Assistant Village Manager Mike Kumbera said the proposed TIF district boundaries are preliminary. The 335 acres of land includes properties along Algonquin Road to the west of downtown, which is an effort to include an industrial park.
"This area has several infrastructure constraints and is a critical daytime population/activity generator, which supports the Old Town commercial district," Kumbera wrote in an email to the Northwest Herald.
The redevelopment area would be bounded on the south by Jayne Street and Willow Street, on the east by the Fox River and South River Road, and on the north by Arrowhead Drive and Cary-Algonquin Road.
"The proposed TIF boundaries are generally consistent with the boundaries examined in the Downtown Planning Study," Kumbera wrote. "This area is the Village's Old Town District, which includes both commercial and residential properties."
Before the boundaries are finalized, the village has to conduct a feasibility study, which is set to be completed by Kane, McKenna and Associates, to determine if the area would qualify to be a TIF district under state law. A housing impact study also is planned.
A public hearing, tentatively scheduled for late June, on the TIF district also has to take place, before the TIF is formed.
TIF districts are used by communities to help encourage economic redevelopment in an area.
As part of the downtown study, planners recommended the village start designing directional and gateway signs for the downtown and evaluate the possibility of having a recreational paddling and white water park, and look into starting a TIF district.
In TIF districts, municipalities can pay for public improvements and other services needed to prepare the redevelopment area for private investment. Any increase in local real estate can be used to pay for the public costs or other eligible TIF costs, such as incentives.
In a TIF district the equalized assessed valuation of all taxable real estate within the area is "frozen" as the base EAV. Taxes are levied at the base EAV in the redevelopment area for taxing districts such as the county and school districts, according to village documents.
However, the growth in property tax revenues as a result of the private investment is put into a TIF fund, and used to pay for the public investment made in the redevelopment area, village documents say.