Aid For Struggling Darien Shopping Center On Table

DARIEN, IL – Darien aldermen are set to decide Monday on whether to form a special tax district to revitalize the struggling Chestnut Court shopping center, which includes Ross Dress for Less.

Under state law, a tax district's assessed value is frozen for 23 years. Any property tax income generated from the district's increasing value is to be used in the district itself, rather than taxing bodies such as schools.

In a memo for Monday's meeting, Ryan Murphy, the city's planner, said a tax increment financing district, or TIF, does not reduce tax income for other public bodies.

"Those taxing districts collect the same property tax revenues they would if a TIF district is established," he said.

However, over time, inflation erodes the purchasing power of a property's frozen assessed value.

Murphy also said a developer is ineligible to receive any of the tax money unless the city and the property owner reach a developer's agreement.

Chestnut's new owner, Kumar Bhavanasi, plans an overhaul of the largely vacant shopping center. But he has dropped the proposal for an apartment building, which drew much of the project's opposition.

Without the apartments, the tax district is expected to bring in $3.8 million over 23 years, the city said.

Darien has never formed a tax district before. But plenty of other towns, including Elmhurst and Western Springs, have.

The city has devoted a page on its website to TIFs.