Highland Park Plans Briergate TIF District Over Objections From Schools Chief

HIGHLAND PARK, IL — The Highland Park City Council moved a step closer to approving a new Tax Increment Financing district last week, as city staff recommended establishing a TIF district for the Briergate Business District in order to "improve infrastructure within the area and encourage investment and revitalization."

If approved, the district could be approved as early as December 2017, according to city officials. The Briergate TIF district would cap the taxable property value of a 129-acre area located along Highway 41 and Old Skokie Road.

All additional tax revenue from increases in property value and new development ("incremental revenue") would then be captured by the TIF fund. Local public bodies that levy taxes, like schools, parks, counties and other districts would only collect the among of allocated property tax assessed before the district is created. (Get Patch real-time email alerts for the latest news for Highland Park — or your Illinois community. And iPhone users: Check out Patch's new app.)

» Read more about the Briergate Business District TIF Proposal via the City of Highland Park

The Briergate TIF district would last 23 years and include the former Solo Cup headquarters, as well as a Jewel-Osco shopping area, a Petco, a Toys R Us and medical facilities, according to the Highland Park News. But Township High School District 113 Superintendent Christopher Dignam questioned the plan in a letter to city staff, noting the TIF are not intended to be used as a substitute for paying for routine infrastructure maintenance and improvement.

"As you know, the primary purpose of tax increment financing is to eliminate blight by promoting the redevelopment of blighted areas...We understand that to mean the city will be using the TIF revenue that is generated to replace water and sewer lines, repair roads and make other improvements that are a basic responsibility of municipal government," Dignam wrote in a letter obtained by Pioneer Press. "We believe this is an inappropriate use of TIF."

Under Illinois law, Highland Park would need to pay District 113 and District 112 for every student attending district schools while living in an area receiving TIF help. District 112 is set to respond to the proposal at a board meeting Tuesday, according to Highland Park News.

The most recent TIF district established by Highland Park was the Ravinia business district, which was created in 2005. City officials have previously used TIF money to pay for redeveloping Port Clinton Square and the Renaissance Place garage, as well as financing a storm water management study, according to Highland Park news.

Highland Park's City Council will consider an ordinance to set up public hearings on the TIF district at its next meeting on Sept. 25. That public hearing could come as early as Nov. 27, with a final vote on adopting the Briergate Business District TIF on Dec. 11, according to the City of Highland Park.

» Read more from Highland Park News

Sept. 21 Update:

Highland Park Assistant City Manager Rob Sabo contacted Patch to say the above report is "skewed" and "omits key information." He provided a copy of a Sept. 7 letter from City Manager Ghida Neukirch to Superintendent Dignam responding to some of the issues presented by the school district and reiterated city officials' justification for the new district.

The article omits that earlier this year, the City had engaged Camiros, Ltd. to conduct a TIF eligibility Study and that based on an extensive review of the district, Camiros determined that the Briergate Business District is TIF eligible and that a TIF district is an appropriate designation for the area. The intent of the proposed Briergate TIF is to encourage investment and property redevelopment in a thoughtful manner to revitalize the subject area, benefit all taxing bodies, provide for economic development, job growth and improve the quality of life in the community. The infrastructure improvements would serve to increase safety in the area, including replacement of the roadway; and installation of curb and gutter, sidewalks, parking bays and lighting which presently do not exist in this district. Per TIF Illinois law, these improvements are eligible expenses.

The concept behind tax increment financing is that by making infrastructure and other improvements to a district, additional private sector investment will be drawn to the district, thereby increasing property values and property tax revenue. Other local taxing bodies, such as public school systems, park districts, counties, etc., continue to collect their amount of property tax allocated before the TIF district was created.

» Read complete letter from Neukirch to Dignam

_{Top photo via Patch archive}