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Tax Increment Financing District (TIF) - Green Bay Road Redevelopment Project
TIF District Update
On July 15th, 2019, the Village Board adopted the ordinances necessary to create a TIF District. A copy of the ordinances may be found here. In the near-term, the Village President and Village Board will be assembling an ad hoc committee to review the Green Bay Road Corridor plan of the Village's Comprehensive Plan. If you are interested in serving on that committee, please feel free to contact Village Hall with your name, address, email, and telephone number. The Village Board is anticipating selecting the committee during their September 16th, 2019 meeting.
Tax Increment Financing (TIF) Quick Facts
Our school districts will not lose any money due to the proposed TIF District. In truth, the TIF is designed in part to increase school revenues over the long run.
The Village Board has not discussed the issuance of bonds for revenue generation. In fact, the Village Board has discussed taking a slow and measured approach to any development.
Should a landowner approach the Village Board with a project, the approval of that project MUST be done in a public meeting. Fact - A TIF District does not supersede the requirements of the Illinois Open Meetings Act.
The Village restricts commercial buildings to no more than 35 feet or 3.5 stories, or with special use granted by the Zoning Board no more than 40 feet in height. There will be no high-rises coming to Kenilworth.
There is a possibility that the eminent domain regulations may grant the Village additional authority in a TIF District. Therefore, if the Village Board adopts a TIF District, language will be included to forbid the use of eminent domain authority upon residential properties within the TIF District.
A TIF District does not give the Village new authority to secretly issue debt. The fact is that the Village has had authority to issue debt for decades and chooses to use that authority conservatively and wisely.
The expenditure of all TIF Fund dollars must be approved by the Village Board and the financial activity will be audited on an annual basis.
What is a TIF District?
It is an area identified by the Village that is in need of redevelopment due to declining conditions and tax base.
Incremental increases to property taxes from within the district are reinvested in that area in an effort to stimulate improvements.
The goal is to provide a temporary financial stimulus to the redevelopment area that otherwise would not occur.
The planned redevelopment may be in effect for 23 years but can be retired sooner.
Why do we need a TIF?
Our Business District has been showing signs of decline for quite some time.
A healthy Business District contributes more to property taxes, reducing the pressure on residential property taxes.
Improvements have not come on their own and creating a TIF is a way to spur growth.
A TIF District is the best tool to achieve the goal of improving the Business District.
What it Does
Acts as an economic development tool to encourage revitalization and redevelopment within an area lagging in economic vitality.
Directs the incremental growth in tax revenues based on improvements that grow a TIF District's EAV solely to the TIF District.
Requires a formal budget and annual audits to track expenditures and activity.
Ensures that received funds are utilized to improve the district.
What It Does Not Do
Limit the budgets or taxing authority of other taxing bodies.
Give the Village new authority to issue bonds.
Decrease tax revenues from current levels in the TIF District for other taxing bodies.
Change the Village's obligation for public meetings, budgeting, and auditing of financial records.
How Big is the TIF District?
The area is relatively small at approximately 15 acres.
It represents just 0.23% of the New Trier High School District's Equalized Assessed Valuation and 4% of the Village.
It provides approximately $1,000,000 of tax revenues for all taxing bodies.
$411,613 to Joseph Sears School
$236,100 to New Trier High School District
$160,360 to the Village
The Goal is to increase the health of the TIF District so the $1 million of support grows to $3.6 million over the life the TIF District.
Redevelopment Plan & Project for the Green Bay Rd. Redevelopment Project
The Village’s Comprehensive Plan of 2008 envisioned a Green Bay Road Corridor that was transformed into a vibrant and attractive mixed-use pedestrian-oriented district reflecting the Village’s overall character and quality, which provides opportunities for alternative housing options for Village residents, and maximizes the opportunities to diversify and strengthen the tax base by maximizing revenue opportunities.
In the 11 years since the adoption of the plan, the vision for the corridor has not come to fruition. Over the past year, the Village Board has been investigating options to revitalize the long-stagnant business district. The option currently under consideration is a redevelopment plan and project for the Green Bay Road and Park Drive business district area, funded from the proceeds of a tax increment financing (TIF) district. Since the vision articulated in the 2008 Comprehensive Plan has not come to fruition on its own, the Village Board is now seeking vehicles to spur growth in the business district. It is hoped that, by making some strategic investments in the district, a seed of growth may be planted which will help revitalize the Green Bay Road and Park Drive corridor. A strong business district can help relieve pressure on residential property taxes and diversify the Village’s tax base.
If you are not familiar with what a TIF district is, please let us reassure you that it is not a method to increase property taxes at a faster pace than the non-TIF properties. A TIF district does not increase property taxes or change the amount of taxes you pay now or in the future. Rather, a TIF district is a financial tool that sets a base for today’s property taxes. Then, moving forward as property taxes increase for all properties in the Village, the entire increment (amount above the base) from within the TIF district boundary is directed to a special fund for use only within the TIF district. In essence, it is an economic development tool that allows the Village to set aside incremental property taxes to the benefit of the area within the district. Please consider reading the Green Bay Road Redevelopment Plan (linked below under “Documents”) to learn more about the effort.
The information contained herein is intended to provide those interested in learning more about the process of easy access to information. This page will be updated periodically as information is available. However, the TIF Act requires specific notifications and processes which shall serve as the official notifications from the Village.
As always, please feel free to call us with any questions that you may have.
|Joint Review Board||April 17, 2019 - 10:30 AM||Kenilworth Village Hall|
|Joint Review Board||May 8, 2019 - 10:30 AM||Kenilworth Village Hall|
|Public Hearing||May 20, 2019 - 7:30 PM||Kenilworth Village Hall|
|Village Board Discussion of Ordinances||June 17, 2019 - 7:30 PM||Kenilworth Village Hall|
|Village Board Vote on TIF Ordinance||July 15, 2019 - 7:30 PM||Kenilworth Village Hall|