Education Matters US

Lindenhurst still pushes tax district

By Bob Susnjara
Daily Herald Staff Writer
Posted Saturday, December 09, 2006

Inadequate utilities and chronic flooding on land near Route 45 and Grand Avenue are two reasons Lindenhurst is proposing public subsidies to help a developer build upscale stores and homes there.

Explanations about why Lindenhurst would provide the financial assistance to San Diego-based OliverMcMillan for the Village Green project were provided to schools and other taxing agencies during a meeting Friday.

The incentives would mean fewer tax dollars for the schools and others, but development proponents say that still trumps what’s produced by 245 vacant acres.

“No one has been interested in developing that property for at least 10 years,” Lindenhurst village attorney Paul Phillips said.

Woodland Elementary District 50, Grayslake High School District 127 and Millburn Elementary District 24 leaders have banded together to fight a special taxing zone planned for Village Green. Officials contend their schools would be deprived of maximum revenue, with higher taxes for residents a possible end result.

Representatives from the schools, Lake Villa Fire Protection District, Lake County government and other affected public bodies met Friday as the special Lindenhurst joint review board. The 11-member advisory group — guided by state law — will issue a recommendation to the Lindenhurst village board, which gets the final word on whether the incentives should be granted for the project.

Gilman Bishop, senior project manager for Village Green, said OliverMcMillan made it known to Lindenhurst in January the project would require public subsidies because of challenges expected in developing the 245 acres northwest of Grand Avenue and Route 45.

In addition to chronic flooding and inadequate utilities, there has been a lack of community planning for the property, OliverMcMillan consultants said.

Lindenhurst Village Administrator James Stevens tried to assure the schools and other development opponents that no one is attempting to help OliverMcMillan any more than necessary.

“We don’t have any ill intentions here, I can promise you that,” Stevens said.

Village Green would have 838 homes and a 642,370-square-foot upscale retail center. The special taxing district for Village Green has been proposed to run from 2008 through 2031.

Woodland projects it would receive $51 million in property tax revenue from 2008 through 2031 if Village Green were built without the financial assistance. Instead, Woodland estimates it would receive $17 million over the 23 years.

Grayslake High, Woodland and Millburn officials will hold a forum for taxpayers to discuss the Village Green proposal at 7 p.m. Monday. The session will be at Grayslake North High School, 1925 N. Route 83 in Grayslake.

In a letter directed to parents this week, Grayslake High Superintendent Catherine Finger said the financial aid planned for OliverMcMillan could lead to an increase in District 127’s tax rate or “dramatic” staff and program cuts over time.

Lindenhurst would create a tax increment financing district for OliverMcMillan. Commonly known as TIFs, such districts are used to freeze the amount of property taxes a local government can get from the area for up to 23 years.

Property taxes continue to rise during the span of a TIF district. However, the difference between the frozen level and what’s paid to local taxing agencies is used for improvements within the designated area.