Darien Defends Moves For Tax District

DARIEN, IL – Special tax districts often attract opposition, particularly when they involve developers.

Darien is no different.

Unlike many area towns, Darien has never created a tax increment financing district, or TIF.

Darien is looking to do so for the struggling Chestnut Court shopping center, where the new owner, Kumar Bhavanasi of New Jersey, plans an overhaul.

Shortly after the City Council approved the zoning last month, the developer dropped the part of the plan for an apartment complex.

At Monday's City Council meeting, resident Heather Conroy questioned why the city was considering tax benefits for a wealthy developer with projects around the country.

"I don't understand helping a business owner that doesn't live here put money in his pocket with this," she told aldermen. "You don't even know what a TIF is."

City Administrator Bryon Vana said aldermen have educated themselves on tax districts.

"I'm not sure why you said they are not," he said.

Conroy said vacancies have plagued Chestnut Court in the decade since she moved to Darien. She questioned why the city was now getting around to it.

In response, Mayor Joseph Marchese said the city has been pushing for improvements on the property for six years.

"It's one of the key development areas, and we have worked with previous owners to try to get new businesses in there," he said. "We have an owner who is willing to spend money to improve the center."

The shopping center's taxable value dropped to $4.3 million last year, from $6.2 million in 2019, according to the city.

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.

State law allows a tax district's money to be used for such things as utilities, stormwater improvements, parking lots and building renovations. But the money cannot be spent on the construction of privately owned buildings.

Center Cass School District 66 and Downers Grove High School District 99 are taxing bodies in the area of Chestnut Court. Schools are often concerned about what they see as the loss of future tax money from such districts.

Center Cass representatives have shown up at previous council meetings about the Chestnut Court complex.

At Monday's council meeting, aldermen unanimously voted for procedural steps toward public hearings on the proposed district.

"My vote doesn't mean I'm going to support the TIF later on," Alderman Eric Gustafson said.

He has said before that he would have voted last month against the zoning for Chestnut Court. But he was blocked from taking part in the meeting remotely.