Glen Ellyn Business Leaders Support TIF District, Schools Say No
Some say this is an invaluable economic tool to ensure Glen Ellyn's long-term growth downtown.
From behind her counter at Urban Chic Home, Beckie Nilles looks out her window facing Glen Oak Restaurant and regularly sees "phenomenal" foot traffic along Pennsylvania Avenue in downtown Glen Ellyn. Nilles thinks this corner would benefit from a parking garage, just one improvement that could come if a tax increment financing district is approved by Glen Ellyn trustees.
According to Village staff reports, currently reinvestment is only happening on a small scale and approving a TIF district would allow the village to realize the plans adopted in the 2009 Downtown Strategic Plan. Without TIF funds it's unlikely infrastructure projects -- a new train station, pedestrian underpass, parking garage, and streetscape improvements -- would happen.
But some of those impacted by the TIF are not in favor of the plan. Glen Ellyn School District 41 and Glenbard Township High School District 87 voted against the TIF in the December joint review boarding meeting. Although the school districts voted against the TIF, they're not necessarily against development in downtown Glen Ellyn.
"We indicated that we would support the TIF district if the village would refund TIF surpluses to taxing bodies, allowing District 87 to abate taxes to our taxpayers. The Village of Glen Ellyn opted not to accept that condition," said Peg Mannion, District 87 community relations coordinator.
Although the school districts voted against the TIF, Glen Ellyn's business leaders believe it is essential for the future growth of Glen Ellyn's downtown.
Janie Patch, executive director of Glen Ellyn's Economic Development Corporation, said the proposed downtown TIF district is an important economic tool because private developers can benefit from TIF projects instead of bearing all the financial costs associated with breaking ground for redevelopment. The TIF will also help Patch, as one of her main objectives is recruiting developers and potential business owners to open up in Glen Ellyn. Patch explained that attracting businesses to Glen Ellyn has become competitive with nearby towns like Downers Grove and Elmhurst. Approving the TIF would "kind of level the playing field," explained Patch. "This tool is invaluable." Last summer her group hosted trolley rides showing off Glen Ellyn's potential to developers and business owners. Patch said groups like these are paying close attention to the village's TIF talk and their next moves in Glen Ellyn are dependent on the outcome of the TIF.
Mike Formento, executive director of the Glen Ellyn Chamber of Commerce, believes the tool is essential to Glen Ellyn's progress. The schools, railroad and downtown are three aspects of Glen Ellyn that cannot be overlooked, according to Formento. "These three jewels are what we have to protect and enhance," said Formento. This TIF district would allow for mixed-use properties and new partnerships, and Formento said attracting "anchor stores" to these locations will likely be the key to future success in downtown Glen Ellyn.
An important part of this redevelopment will be constructing parking decks, which Patch said is needed to accomodate growing traffic needs brought on by new businesses.
Nilles is on board with the TIF plans because she said that's what "put Elmhurst on the map." And without more parking near her store customers are likely to drive somewhere else.
"If people can't park they'll just leave," said Nilles.
Village trustees are expected to vote on the TIF at the Feb. 13 meeting.
Maria
1:18 pm on Thursday, February 2, 2012
The only thing not mentioned in this story is that the purpose of a TIF is to remove BLIGHT! Is Downtown GE BLIGHTED?! Use of TIF for any other reason is illegal - it is a blatent abuse of TIF Laws. If GE wants parking decks, then maybe they should find a way to finance it so they don't take property taxes from the schools. A TIF can only be used if redevelopment would NOT happen but-for TIF.
Here's what we read:
"phenomenal" foot traffic
reinvestment is only happening on a small scale
approving a TIF district would allow the village to realize the plans
Without TIF funds it's 'unlikely' infrastructure projects would happen.
essential for the future "growth" of Glen Ellyn's downtown.
private developers can benefit from TIF projects
attracting businesses to Glen Ellyn has become competitive
TIF would "kind of level the playing field
three "jewels" of downtown are what we have to protect and enhance
Is BLIGHT mentioned at all? Nope. Because there is no BLIGHT!
In Naperville, the local downtown business association built their own parking deck. No TIF
Maria
1:27 pm on Thursday, February 2, 2012
Here is a link to the Illinois Policy INstitute's recomendations for TIF Reform.
"Lastly, state law must eliminate the loopholes concerning the definition of
“blight” so that only truly blighted, low-income neighborhoods are allowed to have TIFs built with tax dollars."
Hidden Property Tax Increase.
http://illinoispolicy.org/uploads/files/TIF10-12.pdf
D R
2:39 pm on Thursday, February 2, 2012
TIF COST = $ 6,000 per resident.
School Dist 41 statement on why they oppose the TIF:
"The lack of any specific development plan to be funded by the proposed $162,000,000 in TIF expenditures, which amounts to approximately $6,000 for every resident of the Village....The likely increase in the School District‟s tax rates and the shifting of an increased tax burden to residential and commercial properties outside of the TIF."
TIF Cost by way of hidden property tax increase: $6000 Per GE Resident
For a family of 4, we're looking at a $24,000 cost.
To build parking decks at a time when property values are at an all time low, high unemployment, soaring college costs, and great uncertainty.
Maria
9:05 am on Monday, February 6, 2012
D41 TIF Opposition Statement:
“At the direction of the Board of Education, School District 41 will be voting "No‟ on the motion to recommend approval of the Village of Glen Ellyns Central Business District TIF Plan. While the School District is going to vote no, the Board of Education strongly supports development of Glen Ellyns Central Business District and is not necessarily against the use of TIF to help fund development.
The primary reasons for the School District's vote are:
1. The lack of clear evidence in the TIF study that the downtown area meets the blighted conditions of the TIF law.
2. The lack of any specific development plan to be funded by the proposed $162,000,000 in TIF expenditures which amounts to approximately $6,000 for every resident of the Village.
3. The likely increase in the School District's tax rates and the shifting of an increased tax burden to residential and commercial properties outside of the TIF.
4. The use of School District tax dollars for public improvements which will not benefit parts of the School District which are outside of the Village of Glen Ellyn
The School District remains interested in working with the Village of Glen Ellyn to provide for the development of the Central Business District through financing methods like TIF and through intergovernmental agreements which would result in a less significant impact on the School District than the $160,000,000 plan currently proposed by the Village.”
D R
9:40 am on Monday, February 6, 2012
Will GE's TIF lead to lawsuits like Oak Park's Failed Downtown TIF?
Is GE planning to issue GO bonds?
http://www.oak-park.us/tifsettlement/
Maria
12:07 pm on Tuesday, February 7, 2012
Doesn't Formento stand to gain personally with approval of a TIF?
Doesn't Formento own land in the proposed TIF?
Is Formentos endorsement also an nod of approval from the Forest Preserve District which should have the same objections as the School District?