The Sugar Grove Village Board of Trustees took a close look at the village of Sugar Grove’s Northeast Airport Tax Increment Finance District No. 2 with a potential plan to amend it.
A TIF District is an economic development tool used by municipalities to encourage investment and spur new activity, in accordance with the governing authorities afforded under state statute.
A presentation provided to the board detailed the village’s intent, plans and the next steps.
The consulting firm Moran Economic Development has been tasked with assisting the village with the administration of TIF and the amendment of an existing TIF District.
“What we’re looking at is doing a minor amendment to a TIF District that was established back in 2015,” said Keith Moran, president of Moran Economic Development.
The village passed an ordinance at the time to establish TIF district No. 2 with the intent of establishing a business park and corporate campus base.
That will not change going forward.
The village wants to add 30 parcels to TIF District No. 2 and is seeking to encompass certain properties along U.S. Route 30 and Illinois Route 47.
“This was a finance tool to help attract businesses to town, realizing that there’s some very expensive fees that need to be paid to develop any of this property,” Village President Sean Michels said.
Some of the properties were bound by the village’s Industrial TIF District No. 1, which was established in 2012. Those parcels could be switched from one TIF District to the other, if an amendment is passed by the village board.
Under state statute, a TIF District can remain active for a period of up to 23 years.
“We just kind of jumbled things around a little bit [to] give a fresher clock to allow for development to occur on the west side of this TIF district area,” Moran said.
TIF District No. 2 generates about $57,000 for the village, officials said.
“In reality, there’s probably only about 6 or 7 parcels of substance, so to speak,” Moran said. “In fact, 9 of the 30 parcels are developed, and 18 are actually tax-exempt parcels, as well. So, they’re not actually generating anything by way of revenue at all currently because they’re either village-owned or perhaps airport-owned.”
Under state statute, an area bound by a TIF District is eligible for inclusion if it meets a set of criteria.
Moran, noting the qualifying factors that apply to the village, said the proposed properties for inclusion within the boundaries of TIF District No. 2 easily qualify.
There are a number of reasons why the area passed the TIF feasibility study, officials said. Those range anywhere from the appearance of deterioration and the evidence of inadequate utilities to the declining of Equalized Assessed Valuations for property.
Moran said the new funds generated by the TIF District can be used to improve many of the items outlined in the TIF feasibility study.
A joint review board meeting of neighboring taxing districts will take place Dec. 5 at 3 p.m. After which, a public hearing on the proposed amendment to TIF District No. 2 is expected to be set for Jan. 7 at 5:30 p.m.