Shorewood approves creation of TIF district
Brock A. Stein | 2/16/2017, 6 a.m.
Shorewood trustees have approved the creation of a tax increment funding (TIF) district for the area centered on the intersection of Routes 59 and 52.
The area consists of about 265 acres of land and 349 parcels with 173 structures, 128 of which (73%) are 35 years old or older.
A study conducted last year shows that the area suffers from vacancies, access issues in some retail spaces and has seen a decrease in equalized assessed values (EAV) in some properties for 4 of the last 5 years going from $22.5 million in 2011 to $21.1 million in 2015. The study also revealed a need for flood prevention measures and upgraded infrastructure.
Village attorney Dave Silverman said that values for the area will be frozen at their 2015 rates once all of the paperwork has been filed with Will County sometime in March.
Once filed, Silverman said that the TIF account could begin accumulating funds in summer 2018 or “some minimal amounts this year.”
“If there’s any increment out there we could start to get it in with this year’s tax payment,” said Silverman.
The high-traffic area is included in the village’s riverfront master plan and is considered a gateway to the village. Redevelopment has already started at the northwest corner of the intersection on the spot known locally as Anderson’s Corner. The property, owned by trustee Dan Anderson and his family, will include a 5,800 square foot anchor building, added parking and a drive through.
The village has been purchasing property along the DuPage River to the south since a flood in 1996 destroyed several homes, with a goal of creating more open park space.
Once created, tax rates are frozen and remain constant within a TIF district for as long as 23 years. During that time, any increases in property value and the resulting difference from the tax revenue increase would be directed to a TIF fund to be reinvested in improvements in the area. Property taxes don’t increase in the TIF district and property tax revenue continues to be distributed to the supported taxing bodies. The taxes generated from the increased property values would be distributed to the taxing bodies at the end of the TIF’s lifespan.