Elmhurst D205 To Start Getting North York Cash

ELMHURST, IL – Starting next year, Elmhurst School District 205 will start getting city money under a decade-old deal to develop North York Street, an official said recently.

In 2013, the district and city reached an agreement over an economic development district on North York, from North to Grandview avenues.

Over 23 years, the city gets to keep property tax money that is generated from rising property values.

To form the tax increment district, or TIF, the city needed the approval of other taxing bodies. Sometimes other bodies negotiate such approvals.

Under its agreement with the city, the school district will start getting 10 percent of the growth in property tax income next year.

In 2013, the city expected the schools would receive $3 million to $4 million over the life of the agreement.

Given the latest numbers, that may well happen.

In 2021, the tax increment financing district generated $1.6 million for the city. Over the last two years, the amount has gone up $100,000 annually.

By 2025, the annual amount is expected to be $2 million, meaning the school district would get $200,000. At the current rate, the school district may well surpass $3 million by the time the district expires in 13 years.

At a budget meeting last month, City Manager Jim Grabowski acknowledged the 10 percent clause kicks in next year.

The city's portion of the tax increment district's money must be spent on projects and services that benefit the district itself. Next year, the city plans sidewalk work on North York between Lake Street and Crestview Avenue.

The tax increment district includes Mariano's grocery store, which opened a few months after the agreement was signed.