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TIF Issues in Lindenhurst and Lake Zurich

(5 posts)
  1. TJS
    Member

    This is from the Daily Herald. Read thoroughly, sounds very similar to Riverside. Once again, an electorate is against a TIF proposal but of course the elected officials know better. Why does our board, like other pro-TIF boards continue to insult the voters by saying we don't understand what is a TIF is. Why do they insult the voters, the very people who put them in office, by saying that if you are against a TIF, scare tactics were used. Why do they feel that we voted against the TIF based on misinformation. What misinformation? The board made their case with those workshops and their TIF was rejected. I am thoroughly disgusted with our entire village board. Unfortunately, we are stuck with them. I have reviewed Illinois Municipal code, there is no recall option in Illinois. The only option is to vote all of them out of office at the next opportunity.

    ____________________________________________________________________________________

    TIFs dominate post-election talk
    Losers in Lindenhurst, Lake Zurich wonder if tax issues took center stage

    By Corrinne Hess and Madhu Krishnamurthy
    Daily Herald Staff Writers
    Posted Thursday, April 19, 2007

    Voters ousted incumbent village leaders on opposite ends of Lake County Tuesday, and both communities had something in common.

    Campaigns in Lake Zurich and Lindenhurst focused heavily on development and the use of special taxing districts to pay for it.

    In Lake Zurich, the acting village president and three board members defended their borrowing of millions for a downtown tax increment financing district redevelopment effort. All the board members lost in Tuesday's election, while the president barely survived.

    In Lindenhurst, incumbent board members and the mayor faced criticism over their consideration of using a TIF district for redeveloping open land. They all lost.

    “Absolutely, the TIF was what did it,— defeated Lindenhurst Mayor James Betustak said Wednesday. “We voted that thing down Jan. 15, but (the challengers) kept it alive because they knew it was the only issue.—

    In addition to the municipal races, voters in three townships overwhelmingly rejected the idea of using TIF districts for residential developments on vacant farmland. The advisory question was put to voters through referendums in Avon, Lake Villa and Warren townships. Voters rejected the idea in each township by at least 90 percent.

    Norm Sims, executive director of the Illinois Tax Increment Association in Springfield, said if TIF districts impacted local elections, it is because voters don't understand them.

    “If anything, it is more site-specific and case by case than a statewide revolt,— Sims said, adding Springfield Mayor Tim Davlin was re-elected Tuesday and he touted the city's use of TIF districts in his campaign.

    “It is hard to sort out what goes on in the minds of voters,— Sims said.

    TIF districts are redevelopment tools used by local governments to attract and retain businesses and to rebuild older parts of town.

    Such districts are controversial because for up to 23 years from their creation, tax money generated by increasing property values is used to pay for improvements, such as sewers or roads, within the district. So schools and other taxing bodies lose out on that increased revenue.

    Lake Zurich has borrowed about $29 million to fund a downtown redevelopment effort supporters say will revitalize the village.

    Throughout Lake Zurich's mayoral and village board campaigns, challengers questioned the TIF district borrowing and spending.

    Village president challenger Rich Sustich, who came close but failed to defeat acting President John Tolomei, said Wednesday the long-term viability of the downtown TIF district was a pivotal issue in the campaign. Yet, the election may have turned on whether the public really understood TIF districts, he said.

    “Whether the TIF was actually good or not wasn't as important as finding out what the investment was in the TIF,— he said. “It wasn't simply the issue of development, it was the sense of people not knowing what was going on in the community.—

    The incumbents have contended there was a lot of misinformation about the TIF district and village finances that may have cost them the election.

    Tolomei said Tuesday he did not know whether the ouster of the board incumbents would stall the redevelopment effort.

    “I have really no idea where these people really stand and what's their objective at this point,— Tolomei said.

    In Lindenhurst, elected leaders considered creating a TIF district to fund the proposed Village Green project, a mix of residential and commercial development. But the board decided against a TIF district after residents and three school districts protested.

    Voter turnout in Lindenhurst Tuesday was 32 percent, compared to 17 percent countywide.

    Betustak said the higher turnout was an indication of scare tactics used to get voters to the polls.

    “What they are being told by school districts is the TIF is stealing from the children,— he said. “How do you get back to a logical discussion as opposed to an emotional discussion?—

    Lindenhurst Mayor-elect Susan Lahr said Tuesday the issue wasn't the TIF district proposal itself but the communication to residents during the process. Residents want to be represented by someone who will listen to them, Lahr said.

    Posted Tuesday Apr 24, 2007 10:00 #
  2. Catherine
    Member

    Voters 'don't understand' TIFs, 'it's hard to know what goes on in their minds', they are fooled by 'scare tactics', 'high 32% voter turnout.'

    Yes, it all sounds familiar. Presumably, our result will be similar too, that everyone who pursues a TIF will be voted out. Of course, some may not care.

    Posted Tuesday Apr 24, 2007 12:01 #
  3. MikeT
    Member

    the article said --

    The incumbents have contended there was a lot of misinformation about the TIF district and village finances that may have cost them the election.

    Is it misinformation when it is a position that is different than yours? No.

    The reduction and marginalization of the referendum results in Riverside were grounded in the following according to the trustees:

    1. low turnout implies invalidity

    COMMENT: the 38 or 40 pct ( I forget which ) of the registered voters that came out and voted is about double the turnout that some or most of the board members received. If such a turnout is valid for them, then obviously, double such a turnout is valid for evaluatiing the referendum results.

    2. Referendum results were corrupted by a Dis/Mis information campaign by the TIF opponents

    COMMENT: the TIF side had 6 months from the time the RPA was made public to get their case across, and included 9 workshops and a big village wide fancy detailed brochure mailing only days before the Vote. It is a plain disservice and a disrespect of the ability of the Riverside voters to weed out real and false claims to charge that the opposition's side was misinformation. It was really just the other side of the TIF.

    3. The TIF is not formed yet; so it was invalid to survey on something that does not exist

    COMMENT: Yesterday the Village administration tried to push forward the 11-22-06 version of the proposed TIF document to the next step. If it is valid and complete enough for the Village Manager to try to push it forward, then it is valid and complete enough for the village electorate to vote on it.

    4. the referendum is non binding

    COMMENT: Two things:

    1) the Board was asked to put the question to the public on a referendum, and the Board refused. By this statement did they show that they did not particularly care about the will of the people.

    2) The referendum results, while non binding, should be considered seriously when the board votes on it instead of reducing and marginalizing the referendum results and speaking of the NEXT step AFTER the first step (the vote to start the tif clock).

    Posted Tuesday Apr 24, 2007 13:24 #
  4. Catherine
    Member

    "3. The TIF is not formed yet; so it was invalid to survey on something that does not exist

    COMMENT: Yesterday the Village administration tried to push forward the 11-22-06 version of the proposed TIF document to the next step. If it is valid and complete enough for the Village Manager to try to push it forward, then it is valid and complete enough for the village electorate to vote on it."

    Indeed.

    Posted Tuesday Apr 24, 2007 14:12 #
  5. spatny
    Member

    That was the version that started everything, and it's rejection triggered the workshops. It was there on the work tables as the operative plan. Now the Trustees say you can't vote whether you like it or not. These people are pathological. They were sold a bad idea by the VM, the consultants compounded it, when the public howled and asked questions they don't want to answer for what they have done and spent. So one Trustee wants to rethink it and another wants to go ahead and do it even though he really doesn't know what it contains. "Let the JRB fine tune it - just give us our TIF. "

    Sorry Charlie, but that isn't good enough. You may waste another $100,000 of the taxpayer's money trying to make it work, but, in the end, you will have to concede defeat because the thing won't qualify. It's a square peg for a round hole. There is already development in and around the TIF district. The "But For" will not be met. At least you've kept your streak of foul-ups intact: Delaplaine Crossing; The Village Center; now the Arcade; soon??? And surely, the TIF.

    Posted Tuesday Apr 24, 2007 15:37 #

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