Jewel Axed From Planned Clarendon Hills Tax District
CLARENDON HILLS, IL – Facing criticism from area school districts , Clarendon Hills is scaling back a proposed tax district designed to spur development.
Earlier this year, the village unveiled a plan for a tax increment financing district, or TIF, in areas along 55th Street.
With the latest changes, Jewel and PNC Bank would no longer be a part of the district, according to a village memo released Thursday.
In previous statements, the village said it included Jewel in the plan because of fears the nearly 60-year-old store would close. It is one of the oldest and smallest Jewels in the area.
With a tax district, growth in property tax income for 23 years would be diverted for use in the district itself. The money could be used for infrastructure to make the area more appealing for businesses such as Jewel, a major sales tax generator in Clarendon Hills.
However, school districts, which make up the majority of property tax bills, oppose the proposed district because of the diversion of taxes.
Under its new proposal, the village said it has agreed to give the growth in property taxes for most properties in the planned district to the schools and other taxing bodies.
Because of this, the tax district's budget would be cut by an estimated $12.5 million, Village Manager Zach Creer said in the memo.
The village, he said, needed to offset that loss by increasing sales tax income from developments in the district. Also, he said the village believes it can get federal and state-subsidized loans for projects in the district.
With the tax district, Clarendon Hills wants to redevelop the old Tracy's Tavern site and the village-owned property at the southwest corner of 55th Street and Virginia Avenue.
The village says it needs the tax district to pay for street, water and stormwater improvements. Part of the area, officials say, lacks water pressure, requiring fire trucks to haul in water for fires.
At Monday's Village Board meeting, trustees are expected to review the proposal.
