From http://www.dailyherald.com/search/printstory.asp?id=305469
By Jake Griffin
Daily Herald Staff Writer
Posted Tuesday, April 24, 2007Naperville could soon join the ever-increasing legion of Illinois communities creating tax increment financing districts.
A developer is seeking the designation for a square block of property south of the downtown core, just across the DuPage River, to spur redevelopment.
The city council held a workshop Monday to discuss the matter and listened as consultants for the developer explained how the area qualified for the special taxing district designation that allows cities to use excess tax revenue generated by increasing property values to pay for infrastructure improvements.
One of the consultants, Phil McKenna, said the area meets five of the 14 requirements necessary to qualify for TIF district designation. The area only needs to meet three.
McKenna said the area doesn't have to be “blighted,— as such districts are often defined; instead, a provision in state law allows cities to designate such districts as a “conservation area.—
“It's conserving the character of the area,— he said.
Some city councilmen had concerns about the boundaries of the proposed 3-acre district. They were also concerned about the financial benefits the city would receive from the designation.
City officials said it would cost about $18 million to make some of the infrastructure improvements necessary for the district, but finance officials said the district would only generate $4 million to $6 million to offset those costs over its 23-year life span.
“I'm wondering if this whole thing is going to be affordable or feasible even if we put the TIF in place,— Councilman Darlene Senger said. “There's a lot to still be determined.—
Other councilmen suggested the infrastructure costs were inflated because they included improvements that would be done whether the proposed development was coming online or not.
The council is expected to decide whether to pursue the district at its May 15 meeting.
Developers want to build a mixed-use complex that would add several retail shops, some restaurants, about 62 condominiums and a 400-space parking deck that would be shared by the residents and downtown visitors.
Most of the parcels in the proposed district are owned by a single developer, Moser Enterprises.
Councilmen said they wanted some assurances other property owners in the district wouldn't see their property values deflated by the designation.
Two councilmen, Doug Krause and Grant Wehrli, did not participate in Monday's talks because of personal conflicts of interest they have with development plans. Wehrli has relatives who own some of the land in the proposed district and Krause is the real estate broker for another parcel there, City Manager Peter Burchard said.
FIRST TIF District? You mean all that other development in Naperville happened WITHOUT a TIF?