No Property Tax Rebate This Year, New Lenox Mayor Explains Why

NEW LENOX, IL — The Village of New Lenox has hit pause on a popular program that refunded a portion of property taxes to its residents, Mayor Tim Baldermann confirmed.

The property tax rebate program—which Baldermann estimated has run for 15 years—will not be offered this year, as the Village looks to continue its redevelopment and economic growth efforts.

The program typically refunded a designated percentage of the taxes paid specifically to the Village. The Village's portion generally represents less than 4 percent of the total property tax bill, Baldermann said, with residents paying into other taxing bodies including the Forest Preserve District of Will County, New Lenox District 122, New Lenox Township and Township roads funds, New Lenox Fire Protection District, Lincoln-Way High School District 210, New Lenox Park District and New Lenox Library.

Last year's rebate was set to 50 percent, with the two years' prior at 100 percent. In 2021, it was 85 percent. Dating back to 2020, it was 50 percent.

The amount refunded has varied, but annually amounted to an estimated $2.4 million across 8,000 households. Baldermann has said the Village decided not to offer the rebate this year to instead use the property taxes paid to the Village to further pursue growth opportunities for the town.

"We are investing in redevelopment and development in our community," Baldermann said.

Baldermann said the move to pause the program has been mentioned multiple times in recent months, but still some have seemed caught off-guard by the news, as applications for the rebate typically went out in early December and were due by New Year's Eve.

Ballparks and Penguins

Baldermann calls the use of existing funds rather than borrowed to fund redevelopment strategic, saying that investing in the community now will help attract the businesses that will boost the local economy.

Baldermann points to key projects recently completed or in the works as instrumental in a longer-term vision.

With the opening of the massive $70 million Wintrust Crossroads Sports Complex in June, comes a prime 10 acres of real estate dedicated for restaurant, retail and/or hotel use. Baldermann previously said the complex is a big economic driver, expected to pay for itself. The Village dug into its reserves to purchase the land, paying $8.25 million in cash. With a focus on hosting regional athletic tournaments, the complex is projected to have a $12 million economic impact in Year 1, $20 million in Year 3. The entire project is estimated to bring in over $34 million annually, with 600,000 visitors annually once fully operational.

The retail development has to happen first, Baldermann said, for the Village to see the returns.

"It's better to use the cash people paid in property tax, for a while, while we're redeveloping our area, rather than borrowing the money," Baldermann said.

"It’ll take a couple of years to get that to be sales tax generating. All that development will then pay for itself, and then some."

The Village has also acquired land parcels with plans to flip them, drawing in developers and businesses for their use. A recent focus has been lots between Prairie and Cedar roads, Route 30 and Haven Avenue.

One parcel there has been purchased by the Koliopoulos family—who plan to bring restaurant The Patio to New Lenox. The family is set to build at 250 E. Maple St., the site of the former Silver Cross Professional building. The Village paid $1.3 million for land purchase and site work, Baldermann said, and the buyers have paid that back in full. The restaurant is projected to open by Fall 2026.

The Village has also bought other properties in that area for approximately $2.6 million—money Baldermann says they'll recoup when they sell it.

"We're investing in our community's futures and once those businesses start paying dividends, we get right back to the rebate," Baldermann said.

The Village recently unveiled a new addition to its Christmas lights display at the Village Commons—a 40-foot-tall lighted penguin named Floyd. At a $115,000 price tag, the Village put its entire amount budgeted for Christmas decorations into the flightless bird.

As some balk at the expenditure after news of no rebate, Baldermann asserts not buying the bird wouldn't have meant refunds for all.

"If we didn't buy Christmas decorations, that would equate to about $12 in refunds," Baldermann quipped.

Baldermann highlighted the draw of the lights display—huge ornaments, glowing characters, photo backdrops—as the focal point of the Village's Christmas in the Commons. The holiday celebration set for Saturdays and Sundays in December offers activities including visits from Santa, horse-drawn wagon rides, synthetic skating rinks, food trucks and more.

"Ninety towns," Baldermann said. "People from over 90 towns dropped letters in the mailbox to Santa last year. Thousands and thousands of people from all over come to our community because we market it through Christmas in the Commons.

"... We have thousands of people coming to our community—they're going out to eat, they're shopping, they're buying gas. We get way more back in residual sales tax, than what we pay for in Christmas decorations."

'We'll give back what we can'

Refunding the $2.4 million as in past years and borrowing it instead "doesn't make any business sense," Baldermann said.

Had they borrowed the money, Baldermann estimated they'd be charged $80,000 per every million borrowed, for 30 years—amassing to $6 million in interest—a cost he says would trickle down to taxpayers.

The Village has worked to keep costs low for residents, Baldermann said, pointing to the elimination of vehicle stickers and pet tags in 2012; those requirements earned the Village $500,000 at the time, which could be near $750,000 today.

"Most towns do have vehicle stickers and pet tags," Baldermann said. "Why play that line?"

New Lenox could see its population grow to nearly 90,000 in the years to come, Mayor Tim Baldermann previously said. U.S. Census Data released in May shows New Lenox among the fastest-growing towns in the south and southwest suburbs between 2020 and 2024, as reported by the Chicago Tribune.

"We know what we're doing is the right thing for the town, and it's working," Baldermann said.

The Village is not permanently discontinuing the rebate program, which he estimates has refunded $12–13 million.

"It’s our priority to get right back to it," Baldermann said. "We need to reinvest in ourselves, that’s just the way it goes. By doing that with cash, as opposed to borrowing, there’s no interest.

"We're not a community that hoards money. We're committed to the philosophy of 'we'll give back what we can.'"