Darien Open To Helping Developer With Project

DARIEN, IL – Darien aldermen said Monday they would consider subsidizing a proposed residential and business development through a tax district.

The Chestnut Court shopping center's New Jersey-based owner is looking to redevelop the property.

The L-shaped Chestnut Court is at the southeast corner of 75th Street and Lemont Road, with its biggest store Ross Dress For Less. The shopping center's south end is almost entirely vacant.

"The value of that mall has gone down steadily for the last 10 years," Alderman Ralph Stompanato said at a City Council meeting.

Darien is looking to set up what is known as a tax increment financing district, or TIF.

Under state law, a tax district's growth in property tax income for 23 years would be diverted for use in the district itself, rather than taxing bodies such as schools.

Much of the south end of the Chestnut Court shopping center in Darien is vacant. The city is looking to set up a special tax district to spur redevelopment. (David Giuliani/Patch)

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.

It is unclear whether the shopping center's owner, Kumar Bhavanasi, plans to renovate buildings, build anew or do both.

Many towns have tax districts, but Darien does not. Last year, Clarendon Hills endured controversy as it set up one.

To establish a district, the city must show that development would not happen without the tax incentive. One factor is excessive vacancies, the council was told.

In a presentation, the city's attorney, John Murphey, said the state law on tax districts deals with properties where time has passed them by.

Decades ago, Murphey said, the tax district law was enacted to help communities with "tired downtowns." Now, towns like Darien have reached the age where some shopping centers are going downhill, attributed to factors such as Amazon, he said.

Mayor Joseph Marchese asked aldermen whether they wanted to look into a tax district. Such a process would involve hiring a consultant – in most cases, the Ryan firm.

Alderman Eric Gustafson, who lives near Chestnut Court, noted the vacancies.

"I definitely think it needs a shot in the arm," he said.

Alderman Thomas Belczak said he favored considering a district.

"The key is getting residential in there. That will drive tax dollars," he said.

Alderman Gerry Leganski said he wanted to find out more about the developer's record.

"I've heard good things, but I don't know enough," he said.

Attending the meeting were Andrew Wise, superintendent of Center Cass School District 66, and Brian Liedtke, a school board member. They did not comment.

Center Cass and Downers Grove High School District 99 are taxing bodies in the area of Chestnut Court. Schools are often concerned about the loss of future tax money with tax districts.

In Clarendon Hills, local school districts opposed such a district. The village later approved it, but agreed to share some of the money.