The village of Huntley will meet Thursday to discuss the establishment of a business district program that could come with a sales tax increase along the Route 47/Interstate 90 corridor.
The village in 2017 adopted a gateway plan for the area as an amendment to its comprehensive plan. The goal of the plan is to ensure economic life for the area around the interchange and the entire village of Huntley, according to village documents.
The village now has an opportunity to implement a business district that would provide the financial resources to assist with redevelopments to the recently demolished Outlet Center and other underdeveloped or vacant properties in the established district.
State law allows villages to tack on an extra 1 percent in sales tax within the qualifying business district as long as the municipality has a development or redevelopment plan for the area that meets certain standards that relate to things such as blight.
The “business district sales tax” would be collected on general merchandise sold within the district. It wouldn’t cover groceries, drugs, medical appliances or items that must be titled or registered through the state such as vehicles, according to village documents.
The village could impose the sales tax in 0.25 percent increments with a cap at 1 percent. A hotel tax of one percent on top of the current 5 percent rate also can be imposed, according to city documents.
The tax can last up to 23 years under state law.
The Village Board will meet Thursday to discuss the idea and the hiring of consulting firm Kane, McKenna and Associates Inc. to study and prepare the business district plan for ultimate approval.
The firm estimated costs for preparing the proposal would be between $8,500 and $12,500.
“The creation of a business district would ultimately increase available funding to support both public and private improvements within the identified area on the east side of Route 47 adjacent to Freeman Road,” village documents read.
The village will meet at 7 p.m. Thursday at Huntley’s municipal building, 10987 Main St.