Village Board to Take Action on Special Tax District for Oakland Avenue Development

The Village Board is expected to take action Monday on an agreement with a financial planning company to help create a special tax district for the slated for the Sendik’s parking lot.

The village’s Community Development Authority on Friday recommended that village hire Ehlers and Associates to work with Shorewood to establish Tax Incremental District No. 4 to finance improvements related to the proposed six-story, $32 million retail and apartment development on North Oakland Avenue.

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

The new taxing district would actually overlay onto TIF No. 1, but CDA Chairman Pete Petrie said that district 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.

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.

Friday was the third of 14 meeting village officials have said they need to before work can start on the development that includes a covered parking lot, 84 upscale apartment units above and a new home for Shorewood’s Walgreens.

The developer said work could start as early as next fall.