Downtown Tax increment financing District
BACKGROUND. In 2018 the Economic Development Commission, under the direction of the Village Board of Trustees, hosted an Economic Development Summit. During the event, the panelist discussed issues, opportunities, and methods the Village should consider using to attract investment and new businesses in the Downtown. Shortly after the Summit, the Village Board hired of Ehlers & Associates, Inc. to prepare a Downtown Economic Incentives Study for their consideration and approval. A copy of the approved July 31, 2018 Study is posted at www.clarendonhills.us/dtedtools. The Study provides an overview of potential financial tools that would generate base-line revenue, that in turn, could be used to create financial incentives for private investment in the Downtown. Specifically, the Study reviewed three financial mechanisms: special service areas, business districts, and tax increment finance districts (TIF), and concluded that TIF would have the greatest potential of providing the most revenue without negatively impacting the value of the existing downtown properties. As a result of the Study, the Village Board set aside funding for consultant services needed for the development of a Tax Increment Finance District Eligibility Study.
ELIGIBILITY STUDY. On June 17, 2019, Ernst & Young LLP (EY) was engaged by the Village of Clarendon Hills (the Village) to assist in the creation of a formal Eligibility Study, the Redevelopment Plan and Project, and Housing Impact Study. These documents together will include the TIF Redevelopment Plan and Project for the Redevelopment Project Area (the RPA). These documents will define TIF eligibility and qualifications of the Redevelopment Project Area in support of its designation as a “Conservation Area” pursuant to the definition contained in the Illinois Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11- 74.4-1 et seq. (the Act).
The Redevelopment Project Area is located in downtown Clarendon Hills and includes the Clarendon Hills Metra train station and surrounding area. It is generally bounded by Burlington Avenue on the north, Park and Ann avenues on the south, Gilbert Avenue on the west, and the alley east of Golf Avenue on the east. The downtown area has faced many challenges that established communities along rail lines have faced including pedestrian and vehicle safety. In addition, it consists primarily of older single-story commercial structures that are outdated, are incompatible with current development requirements, and in many cases do not meet current building code requirements for life safety.
The Redevelopment Project Area consists of 89 parcels represented by 117 Permanent Index Numbers (PIN(s)), including adjacent rights-of-way, and encompasses approximately 30 acres (meeting the requirement of the TIF Act that the area must equal or exceed 1.5 acres). The primary land uses are mixed-use, commercial, residential, institutional and railroad.