Downtown TIF District Advances To Next Phase

Huntley village trustees had no objections to moving forward with Phase II of a project implementing a tax increment financing district in the downtown area.

Trustees officially will vote next week on whether to implement Phase II of the project, which began in December when the village hired Kane, McKenna and Associates to prepare the documents required under the Tax Increment Allocation Redevelopment Act.

In a TIF district, property taxes are frozen at a baseline level for as long as 23 years for the purpose of revenue distribution to municipalities, school districts and other taxing bodies. The consultants described the baseline revenues as the first of two buckets.

As property values in the TIF district rise over time, the corresponding increase in property tax revenues, or increment, funds what the consultants described as the second bucket of revenues. Those funds are used for reinvestment in the TIF. Many communities use TIF funds for infrastructure improvements, but there are other allowed uses of the funds, one of which is redevelopment.

The property values should increase as the TIF district develops, according to officials.

Phase II consists of many tasks, including determining the TIF goals and objectives, development of required ordinances, setting the district’s boundaries and determining what types of redevelopment projects can be done, said Lisa Armour, senior assistant to the village manager and director of development services.

Trustees did not make any comments, however, Trustee John Piwko asked what reaction other taxing bodies had to the possibility of creating the district. Huntley officials met with representatives from Consolidated School District 158, the Huntley Fire Protection District, the Huntley Area Public Library District and others.

Village Manager Dave Johnson said those other entities had favorable feedback in the initial discussions.

“There was no flat-out no,” Mayor Charles Sass said.

Kane, McKenna and Associates expects to complete Phase II by the end of the year, Armour said.