Huntley Looks To Advance TIF District Plan

Huntley’s downtown meets the qualifications for consideration for a Tax Increment Financing District and it could be an economic boost for the area, consultants say.

Now, Huntley’s village trustees must decide whether to take the next step and create a redevelopment plan and project.

The topic will be up for discussion at Huntley’s committee of the whole meeting at 7 p.m. Thursday in Village Hall, 10987 Main St.

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 finds 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.

Huntley officials began exploring a TIF district in December when it hired Kane, McKenna and Associates to prepare the documents required under the Tax Increment Allocation Redevelopment Act. The agreement included work on three phases, but staff cannot move to each phase without board approval.

In April, Kane, McKenna and Associates completed the first phase and informed the board that Huntley’s downtown would qualify for a TIF for consideration as a conservation area or blighted area. Kane, McKenna and Associates found the downtown and surrounding area meet the minimum factors for a district, including excessive vacancies, deteriorating buildings, inadequate utilities and bad land-use planning. For example, modern planning would not call for homes to be located near industries like Dean Foods on Mill Street.

Village officials have met with other taxing bodies, like the school district, to discuss the TIF and get feedback.

Phase II would involve creating a plan that would include a statement of redevelopment goals and objectives, examination of TIF or other program qualifications and a presentation of estimated costs for proposed redevelopment projects.

The cost of preparing the plan and project is between $22,000 and $27,000. Huntley already has spent about $17,000 on Phase I. The village budgeted $50,000 for both phases.