I worry about the hidden costs of development and the long-term impact of changing the character of our community for the sake of that development. For example, are we ready to see a parking structure in our downtown & do you believe it will be "free," that is paid for by the increased taxes from the new developments?
Riverside Info » About Riverside
TIFs hidden costs
(122 posts)-
Posted Friday Dec 1, 2006 22:48 #
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I can't see where the village will be getting the money to offer the developers. I understand that there are no plans to offer bonds, so I guess there will be agreements made with developers and notes will be written, promising the developer some sort of incentive, once there is money. But, what happens if there is no money, and how long does it take for the money to arrive anyway? With pay as you go, if there's no development up front, where does to money come from to pay in the first place?
So, what do you dangle in front of a developer to entice them to develop here? The promise of some cash down the road, in 5 or 10 years?
Posted Saturday Dec 2, 2006 01:00 # -
Again there is no plan.
Posted Monday Dec 4, 2006 15:58 # -
My Response To The Good Questions asked by ChrisHajer:
The concept of pay as you go means that TIF revenues are only used after they are generated. For the Riverside TIF, this would most likely mean that all or part of the property tax increment created by a development is returned to the developer. The "notes" are development agreements whereby the municipality says it will return a percentage of tax revenues to the developer as it comes in and the developer agrees to build a specified project. So if the development does not generate new tax revenue or falls short of the anticipated tax revenue, the municipality still is only paying a percentage. 50% of zero is zero. So in that sense, Pay as you go TIF is no risk to the municipality.
And to an extent I agree with you as far the effectiveness of this enticement. It is not a real strong enticement to a developer but it can sometimes be enough to close the gap to make a desirable project financilly worthwhile.
Posted Monday Dec 4, 2006 16:31 # -
Can a village place an amendment to a TIF document stating that they WILL NOT issue bonds, that it will be 'pay as you go?' On the same note, can an amendment be placed in the document that states no private homes will be considered for development whatsoever during the duration of the TIF? The trustees say they will not use emminent domain and that it will be a 'pay as you go.' Why not make it official? This administrations promises are nice, but who is going to be sitting in their seats a few years from now?
Posted Monday Dec 4, 2006 20:02 # -
Kim,
Yes and Yes. The Village can commit by Resolution or other means that they will not use eminent domain and that they will not issue bonds to pay for any TIF projects. Additionally, I recommend that this amendment/Resolution include a committment that the first dollars in the TIF pool be returned to District 96 in an amount equal to what District 96 would get without a TIF. If these three things are done, I believe that TIF could be of great benefit to our community with little or no risk to the residents or the Village government.
In regards to District 96, some may say that if you payback District 96 the other taxing districts will want the same and pretty soon there will be no money left for the TIF pool. This is a legimate question but I believe there is ample precedent and reason to favor District 96 over the other taxing districts (with the possible exception of the high school district).
In regards to precedent, I know that Villages often enter into such agreements with school districts and not with other taxing districts. Also, the nature of District 96 as a public education district serving primarily "Riverside-only" residents makes it unique enough to distinguish District 96 from the other taxing districts. Plus, I think that the one thing that makes Riverside great (even more so than the Olmsted Plan) is the elementary schools.
Again, I believe that if these three committments are made, that all Village residents should support the TIF. We need TIF money to do things like: keep our existing businesses in Riverside (i.e. The Art Stop, Grumpy's, etc), make improvements to the downtown streets and circulation, and possibly consider projects such as a riverfront walkway, and (my favorite) a pedestrian railroad underpass at the east end of downtown.
I hope that the Village Board will consider making these three committments and then move forward quickly with the TIF.
Posted Wednesday Dec 6, 2006 11:01 # -
Well said, but I cannot agree with the above statement. My understanding from teachers is that the elementary schools in Riverside are at their full capacity now. Are there funds and a plan to build a new school and redraw districts?
I cannot ever agree that the schools are more important than the Olmsted Plan. Many residents do not have school aged children. The Olmsted Plan is a world-famous legacy that commenced before we were born and will continue after we are gone, and it falls to each generation to preserve it. I and many people moved here for this beauty and history near the city, not for the schools. In fact the schools were not so hot when I first moved in.
The village government has shown no interest in foregoing their option for using eminent domain, and even if they forfeit it formally in connection with the TIF, they have a separate right to utilize it that they would also have to forfeit. I don't know whether the latter is even possible under the law.
I hope that the Board will consider the many adverse experiences of towns with TIFs, and not comport itself in the manner of the aldermen of DesPlaines, who passed a TIF the night before a referendum in which some 75% of the people voted it down based on their prior negative experience.
Posted Wednesday Dec 6, 2006 16:55 # -
Catherine,
I certainly did not mean any disrespect to the Olmsted Plan - I am a certified city planner and I have studied and taught the history of city planning extensively, including Olmsted, Burnham, Columbian Exposition, etc. At this point in my life, however, with a third grader, a kindergartner, and a preschooler at home, maintaining our schools is extremely important to me. Also, I know from my practical experience as a city planner, that the quality of the local schools has a huge impact on a community, including but not limited to the impact on property values. I apologize for trying to place relative value on two aspects of our community each of which are priceless.
I do not understand your point about school capacity. The TIF has no impact on school capacity unless it is financing a plan that would have the effect of bringing in more school children. I have read the TIF plan and the TOD plan and I can assure you that there is nothing there that would add school children. Further, the TIF plan has a reimbursement clause that would require the Village to directly reimburse the schools if any school children move into the TIF district.
I guess the point that you are making, and it is a point worth considering, is that even with a pay as you go TIF, with no bonds, no eminent domain, and full reimbursement of the school district, the TIF may have an impact on the character of the Village. But please remember, TIF is only a financing tool. It cannot and will not (by itself) impact the character of the community or the heritage of the Olmsted Plan.
The TOD plan is what we need to focus on when we say we are concerned about the character of the Village and the Olmsted Plan. With the conditions I have recommended, TIF is a no risk venture for the Village. If we can concentrate on the TOD plan and make sure we have a downtown (i.e. TOD) plan that we support and enhances the character of the Village and furthers Olmsted's heritage, a conditional TIF is a great way to finance it.
Another way of looking at the conditional TIF: with the full reimbursement of the schools up front, the money to finance a downtown plan, keep businesses in the Village, etc, is the increment that would have otherwise gone to Cook County, Triton Community College, MWRD, and other large taxing bodies. I have no qualms about investing those dollars into our downtown - provided, again, that we have a downtown plan we like.
Posted Thursday Dec 7, 2006 09:47 # -
Mr. Pollock, regarding your comment:
I have read the TIF plan and the TOD plan and I can assure you that there is nothing there that would add school children. Further, the TIF plan has a reimbursement clause that would require the Village to directly reimburse the schools if any school children move into the TIF district.
At the meeting on Nov 21st, someone raised a good point regarding this provision, however speculative. If condos are added within the TIF district, and residents without kids move from single family homes in town to these multi-family dwellings within the TIF district, families with children could conceivably move into those single family homes, thus increasing enrollment in the district but without the benefit of the reimbursement to the school district. The village has maintained that they are not encouraging high-density development, so I don't know how much of an issue this is, but I thought it was a good point.
Thanks,
ChrisPosted Thursday Dec 7, 2006 10:18 # -
Chris,
It is a good point on the surface and one I have dealt with extensively in my practice as a planner. My response: Generally speaking the majority of empty nesters looking to downsize and move out of their large homes are most likely to do that regardless of whether or not their are new condos in downtown Riverside. Thus, the large homes vacated by empty nesters will be available anyway. (In fact, that has been going on in Riverside for 10 years) If there are no condos available in downtown Riverside, the empty nesters will look in Chicago, Oak Park, LaGrange and elsewhere. The increase in the number of empty nesters moving out of their homes in Riverside cannot be expected to be statistically significant because their are condos in downtown Riverside.
The issue of large homes formerly occupied with no kids being bought by families with kids is an issue the school district has to deal with and has been dealing with for the last 10 years. It cannot be shown statistically or intuitively that the addition of 100 condos (which I believe is the number referenced in the TOD plan) will significantly impact this trend.
One other comment this raises: I believe that it is very important that a village keep its older residents in town. If there is not sufficient housing available for down sizing empty nesters, they will leave town and as a result you lose residents who have a lifetime invested in the community. Thus, the community loses one of its most prized assets, residents with a long term history and connection to the community. Personally, I hope to stay in Riverside after my kids are grown and having some really nice condos in downtown Riverside to move into would be pretty cool. I hope many of my good friends that I have made here will feel the same way.
PS. I sure wish this forum had a spell check. I apologize for all the misspellings.
Posted Thursday Dec 7, 2006 12:34 #
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