Special Tax District OK'd for Oakland Avenue Development

The village took the next step Monday in making the a reality.

The Village Board approved a contract with the financial planning company, Ehlers and Associates, to help establish Tax Incremental Financing District No. 4 to finance improvements related to the proposed six-story, $32 million development on North Oakland Avenue.

The new taxing district would actually overlay onto TIF No. 1, but that district has to close by year 2022, which wouldn’t allow the village enough time for the new Sendik’s parking project to pay for itself.

The new TIF district is expected to have a 27-year lifespan and would only include the parking lots and not the actual Sendik’s store or any other businesses off of Oakland Avenue.

Ehlers' contract would not exceed $19,000, according to village documents.

Trustee Jeff Hanewell said if plans for the development fail, Ehlers would agree to discontinue its services and not be paid for any work not completed.

A TIF district is a mechanism used by communities to spur development. When a district is created, a municipality borrows money to pay for various public improvements related to development within the district. Once the development is built, the additional property taxes generated within the district are used to pay off that debt.

The developer said it could break ground on its 84-apartment development, which includes a new home for Walgreens, as soon as next fall.