Clarendon Hills Village Board members will have plenty to think about before deciding whether to approve a proposed 55th Street Tax Increment Financing district.
A Sept. 16 public hearing on the TIF included many comments, both for and against creating the district during more than two hours of discussion and public comment. Board members decided to take some time to digest it all before voting, possibly in November, on whether to move forward on the plan.
“(This) was the first time the board received all the information, so they are still in listening mode,” village manager Zach Creer said. “I did take a temperature check, and the board was interested in continuing the discussion. It’s a super majority vote (needing 5 of 7 votes in support to pass), and I wanted to be cognizant of the board’s time as well as the time of our residents if the board was already at a ‘no.’”
When a TIF district is created, the value of the property in the area is established as the base amount. The property taxes paid on this base amount continue to go to the various taxing bodies as they always had, with the amount of this revenue reduced only if the base declines or the tax rate decreases. It is the growth in the value of the property over the base that generates the tax increment, which is what is collected into a special fund for use by the village to make additional investments in the TIF project area.
The proposed new Clarendon Hills TIF District is generally located along the north and south sides of 55th Street, between Western Avenue to the west and Holmes Avenue to the east, and also includes certain parcels on the east and west sides of Western Avenue and Bentley Avenues, and the west side of Virginia and Clarendon Hills Avenues, all south of 55th Street. The uses within this area are commercial and residential, and all TIF funding comes directly from the property owners within the district.
Clarendon Hills officials are interested in using a 55th Street TIF District to facilitate redevelopment in a coordinated manner, according to information from the village.
The three school districts that would be affected by a 55th Street TIF — Hinsdale High School District 86, Hinsdale-Clarendon Hills Elementary District 181 and Maercker Elementary District 60 — all have expressed opposition to its creation. A Joint Review Board, composed of representatives from those three school districts and other affected taxing bodies, voted Aug. 14 to recommend the rejection of the 55th Street TIF proposal.
Members of the Joint Review Board expressed concerns about an unequal tax burden, saying there would be a substantial tax shift that disproportionately impacts non-TIF residents. In addition, Join Review Board members also highlighted the potential negative impact on school funding from lost property tax revenue.
“Overall, the Village Board is trying to weigh the concerns of the school districts, along with the issues raised by our planning efforts and village residents in attendance,” Creer said. “There are also different visions about what types of development are appropriate for the area and whether, in general, the village should be actively encouraging development.”
Creer said he believes the overall tone of the hearing was much more positive, in general, than some of the earlier feedback on the proposed TIF.
“The school districts provided great feedback and information,” he said. “We also heard from a lot of residents in the area who were supportive of using development to support infrastructure in the area and remove eyesore properties like the former Tracy’s Tavern.” That business at 401 55th St. was demolished in 2023.
Much of the testimony at the TIF hearing focused on safety issues, especially water pressure and traffic safety. Opposition was mainly focused on schools, tax impacts outside of the district and some Clarendon Hills residents not in favor of any additional commercial development in the area.
“Staff believe there is a win-win where all parties can benefit from increased investment in the area, using tax dollars from new developments to fund the needed infrastructure improvements,” Creer said.
Village Board member Ralph DeAngelis said he found the public comments very helpful.
“The people commenting were mostly respectful of others, made good points and advocated for their positions,” he said. “It’s important to me that some of the differences highlighted in the comments regarding the numbers used in the various projections be reconciled. There seemed to be some disconnection here, and while TIFs are complicated, it should be possible to clear up these issues and have more clarity for all.”
DeAngelis said he is optimistic that good solutions can be found and implemented.
“I have an open mind at this point as to the TIF, and that was how I felt at the beginning of the meeting,” he said. “The speakers during the public hearing represented various interests, and I feel all will be helpful to consider when making final decisions.
“I am certain there will be more discussion, and hopefully clarity, to bring the differing viewpoints closer together before the board votes on this matter.”
Chuck Fieldman is a freelance reporter for Pioneer Press.