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Dempster-Waukegan Plan Clears A Hurdle

Schools had feared they would lose money, but village will likely raise sales tax in that area and funnel the revenue to them.

 

A plan to redevelop the Dempster Street and Waukegan Road area surmounted a key hurdle Thursday.

Some had under the proposal for a TIF district. However, local taxing bodies, including , District 219 and the Morton Grove Library voted 4-1 to approve the plan after a way was found to provide them some revenue. The voted against it.

Basically, those taxing bodies entered into a revenue-sharing agreement to receive a portion of revenues from a sales tax hike.

"It's a TIF District, and now we're going to layer over it a business district," said Ryan Horne, Morton Grove's village administrator. 

Earlier:

Both TIF Districts and business districts are designations under Illinois law to help give underperforming malls or other commercial areas a shot in the arm. They allow municipalities to provide tax incentives to businesses or collect a tax on behalf of another entity.

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In the case of this area--which includes Prairie View Plaza, Castle Honda, the space that Produce World used to occupy before it moved, and some other nearby parcels--creating the business district would allow the Village of Morton Grove to impose a 0.25 percent (25 cents on $100) sales tax increase on purchases in the area, and a portion of that money would go to the schools and other taxing districts, according to Horne.

"It's very creative," he said.

The village board has not approved the business district plan yet.

Horne said the business district plan would be easy to administer, because the Salvation Army store and the former Par King property are in District 70, so sales tax revenues on purchases made there would go to District 70. The rest of the property, more or less, lies within District 67's boundaries, so it would get sales tax revenue from purchases there.

Horne estimated the taxing bodies could start seeing revenue from the agreement by June 2013, if the TIF district and business district were in place by January 2013.

Brian Sullivan, executive director of the Morton Grove Park District, said "At the Joint Review Board (meeting Thursday), we were able go let language put in that they'd get agreements put in place prior to the adaptation of the actual TIF by the village board. That should help District 67 and 70."

District 67 superintendent Jamie Reilly became amenable to the plan after the revenue-sharing agreement was proposed, according to Pioneer Press

sherwin dubren May 12, 2012 at 09:50 PM
Surprisingly, the school districts agreed to this new plan. They have received subsidies from MG in the past, but why would they agree to a partial reimbursement when they are entiteld to full tax benefits? The village approving this TIF without a referendum is like taxation without representation. TIF's do not create more taxation, but they have the potential to create debt for the residents. The current Waukegan Rd. TIF is an example of a TIF that was a financial bust. It took the village years just to pay off the interest on the loans taken to purchase land. The village still owes a big chunk of principal on that one. This TIF was the creation of the Action Party and they continually try to convince us that the TIF was a success. Now, they are embroiling us in another risky venture with the Prarie View Shopping Center. I hope the voters will remember who was responsible for our involvement there should this TIF fail. There is currently another TIF in Park Ridge which is a bust and costing them hundreds of thousands of dollars every year to support it.
Marko Deboin June 16, 2012 at 11:14 AM
We are all getting tired of your bellyaching...
Pat Craig June 16, 2012 at 01:01 PM
To paraphrase a President; "It's not that Sherwin is wrong, it's just that he knows so much that isn't correct." It has been said that a half-truth is equal to a whole lie. In this case, the Waukegan TIF was created for the very reason that the TIF law was created. Specifically to remove blighted areas, and while you might disagree that sleazy motels were not a blight, that was the reasoning behind Waukegan. It would be interesting to hear some FACTS rather than OPINIONS as to why the new TIF is risky. All business deals are based on risk-reward and if the reward outweighs the risk the deal makes sense. John Said from Community Development has the facts... ask him. The Park Ridge TIF is, or should be, of no concern to Morton Grove as we are not affected by it. There is an old legal axiom; When the law is against you argue the facts. When the facts are against you, argue the law. When both the law and the facts are against you, just argue. Sherwin, you are just arguing.
sherwin dubren June 16, 2012 at 03:53 PM
To Craig: If you want the facts, just check the financial record of the Waukegan TIF. Check how many years we were just paying off the interest on the loans to buy up property there. Also check how much we currently owe on these loans. Don't take my word for this or John Said's. Just check for yourself. To Marko: Who is 'all'? If you don't like my comments, tough.

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