Mayor Pekau Wants an Additional Three TIF Districts

By Kathy Fenton

Tax Increment Financing (TIF) districts are used as a tool to improve blighted areas and encourage development in areas that need some public help. In fact, to create a TIF district, a local government must declare the intended district to be blighted and that development would not occur if not for public incentives. Orland Park has one existing TIF - which is located at the 143rd Metra Station. When this TIF was developed, the area was blighted with industrial uses, a deteriorated train station, and no public utilities. Public funds were spent to acquire land, demolish blighted buildings, build a new public train station, and construct new roads and public utilities. Regardless of whether the public agrees with this development or not - we should remember that when Pekau originally ran for Mayor - he ran against TIF districts and using public funds for private development. Pekau's three new TIFs are all vacant land, owned by private developers, and are private development opportunities. Meaning, the private developers will profit from the future development.

The Petey's II proposed TIF is located at the busiest intersection of Orland Park - 159th and LaGrange Road. This vacant piece of land has sat undeveloped not because it is blighted but because the private owners have overvalued their property for decades. In fact, prior to Costco locating at their current site, they made an offer to purchase land at Petey's II. However, the private owners overpriced the value of the land and Costco choice to not proceed forward at that site. This site is the best location in the entire village, so why does it need public funds to develop? Taking this site off the tax rolls for 23 years, will also hurt the other taxing bodies, particularly the school districts, as they will not receive any of the growth in EAV for 23 years. While the village will receive property taxes and sales taxes from this future development, the public should question the validity of this TIF. It is not blighted and the only reason it has not developed is because of greedy private developers. Every time a commercial property is removed from the property tax base, it hurts our other taxing bodies that rely on property tax and have no access to other tax revenue, such as sales tax. If Pekau wants to see this land developed, there are other tools he can use - such as a special service district or business district tax - both of which allow the village to help with the development but recoup that investment over time through these special assessments - all without taking property taxes away from other taxing bodies, such as our fire and school districts.

The second proposed TIF district is located the former Terry Lincoln Dealership at 143rd and John Humphrey Drive. This vacant parcel is owned by Pete's Fresh Market and has been vacant for almost two decades. This is very small parcel and future development is limited due to it's size. There is no need to install new roads or public infrastructure, as these have already been set up as the rest of this area has redeveloped. So, again - why create a TIF district when other economic tools are available? Pekau can offer sales tax sharing, as he does already for other retailers who located in Orland Park. Why take property tax base away from the other taxing bodies?

The last proposed TIF is located at the former industrial site of Andrew's Company. This parcel has sat fallow for years because it is environmentally contaminated. They contaminated the property and want Orland Park to clean it up with tax payer dollars. Both the EPA and IEPA has been involved with this site for decades. While there is no doubt the site should be cleaned -Andrew should pay for the clean up NOT Orland Park residents. Pekau wants to develop this site with new homes and this is very dangerous plan. Currently, the IEPA will not allow this - due to the level of contamination. The residents of Orland Park should be asking - why is it their responsibility to clean up this site?

All three of these TIF districts should be concerning to the residents of Orland Park. We need to support our businesses but not at the cost of our safety and economic health of the entire community - including our other local taxing bodies.