GLEN ELLYN – After a unanimous vote from the Village Board of Trustees Oct. 14, Glen Ellyn has established a TIF district along Roosevelt Road to encourage growth in the area, which has struggled with private development.
"The rationale for doing this is to use probably the best and most utilized economic development tool to proactively address some needs of investment – both public and private – in a very important commercial corridor on Roosevelt Road," Village Manager Mark Franz said.
The district includes the north side of Roosevelt Road from Main Street to Park Boulevard, with the exclusion of some residential areas, and the area bordered by Park Boulevard, Route 53, Roosevelt Road and Taft Avenue.
Kane, McKenna and Associates, Inc., which prepared the village's Roosevelt Road/Park Boulevard Redevelopment Plan, identified several factors that qualify the area to be established as a TIF district.
These include obsolescence and deterioration of current structures, inadequate utilities, lack of community planning, lagging equalized assessed value and deleterious layout, which means areas were developed with little regard to other nearby structures.
The village completed the necessary process to establish the district, convening a Joint Review Board of representatives from nearby taxing bodies and conducting a public hearing.
The Joint Review Board unanimously recommended approval of the TIF district.
Within a TIF district, property taxes paid on the base value of property within the area go to taxing bodies as they normally would. When property values grow, taxes paid on those increases are reinvested in the development of the area.
TIF funds can be used to attract new developments and to improve existing infrastructure within an area.
Earlier this summer, the proposal for the TIF district was met with opposition from residents living in the Parkside and Park Plaza apartments, who feared they would be displaced by new development brought about by a TIF.
Partly at the request of residents, village officials opted to reconfigure the TIF district boundaries to exclude the apartments from the Roosevelt Road/Park Boulevard Redevelopment Project Area.
The village's decision also stemmed from the burden that would fall on a potential developer to cover relocation costs for residents if they were displaced, an added requirement that could create difficulty attracting developers to the area.
At its meeting Oct. 14, the Village Board approved the TIF Redevelopment Plan, established the project area and formally adopted tax increment financing for the area.
The TIF district will take effect with tax bills paid in 2014, according to village records.
"Now we need to put it to work in the most equitable and appropriate manner, but in an expedited manner," said Village President Alex Demos.