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Elmhurst to consider increasing new housing impact fee

Published: Friday, March 21, 2014 12:30 p.m. CDT
Nitti Development, based in Glendale Heights, has reached an agreement with Elmhurst Memorial Hospital to purchase 11 acres of property on Berteau Avenue. (Mari Grigaliunas - mgrigaliunas@shawmedia.com)

ELMHURST – With pending residential housing construction on the former Elmhurst Memorial Berteau Avenue campus, Elmhurst will begin reviewing its current impact fees rate schedule.

Established in 2006, the Elmhurst Community Unit School District 205 receives $6,500 for every new single family housing unit, and the park district receives $1,500, according to a city news release.

The fee is meant to offset the one-time property tax gap created when new additional housing is added to the community. The fee only applies to housing added to the community, not replaced housing.

As a result of ongoing Mayor's Communications Committee meetings, Mayor Steve Morley, Sixth Ward alderman Jim Kennedy and Third Ward alderman Dannee Polomsky requested a referral be sent to the Finance, Council Affairs and Administrative Services Committee to review the impact fees. The Mayor's Communications Committee includes Kennedy, Polomsky as well as representatives of District 205 and the Elmhurst Park District.

Because the redevelopment of the Berteau property is expected to begin fall of 2014, the referral calls for a prompt review of the subdivision impact fee. According to the release, the impact fees should be increased to meet market expectations and adhere to the current Elmhurst code.

The city projects that a surplus of $190,000 in TIF I will be declared in 2014 and a surplus of $1,826,000 is projected for 2015. The release of surplus funds are part of an overall ongoing effort to work with both the park district and school district for the mutual benefit of the city and residents, the release stated.

The referral is expected to be on the City Council agenda April 7.

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