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The village of Sugar Grove has released a one-page fact sheet TIF report for a proposed Interstate 88 and Illinois Route 47 redevelopment project area.
At the Nov. 7 village meeting, “Announcement: Tax Increment Financing Eligibility Report and Redevelopment Plan” was listed under “Appointments and Presentations” on the agenda but the report wasn’t shared until the morning of Nov. 8.
The full report can be read on the village’s website, which is also where one can find the fact sheet.
“We commissioned the preparation of this report with SB Friedman (the development advisers) to do an eligibility study of the land to determine if it legally meets the requirement to be designed as a TIF district,” said Matthew Anastasia, finance director/treasurer for the village of Sugar Grove. “Legally, does it meet the definition of the TIF statute to become designed as a TIF? So this goes out and provides the findings and documentation that demonstrates those eligibility facts and maps of there and what it qualifies as a designation of a TIF area based on the law.”
The first half of the report provides information about whether it meets the statutory requirements of the TIF district to be designated as a TIF, but it doesn’t do anything more. It concludes that the area qualifies as blighted, meaning it’s badly damaged or in deteriorating condition, and therefore qualifies for designation as a TIF district based on Illinois law.
“It doesn’t initiate a TIF,” Anastasia said. “It doesn’t establish a TIF. It’s basically the first step of the process to become a TIF district.”
The second half of the report includes a draft of the redevelopment plan and project.
“All of that obviously is in draft form until the board approves or does not approve,” Anastasia said. “But it basically provides the guidance of the TIF as a tool over the 23 years, which is the life of that district, which it kind of includes goals of the district, why are you creating it and anticipated improvements.”
The one-sheet emphasizes that while there is room for some potential adjustments, $338 million is the maximum the village of Sugar Grove can spend from the TIF funds. Furthermore, the $338 million does not represent the developer’s request nor indicate what the village may approve.
“I think one of the biggest miscommunications that is happening is this TIF budget [$338 million] that’s in there,” Anastasia said. “What that is, is that is basically establishing a limit that the village has for spending of qualifying expenses. It is not a redevelopment agreement with the developer. It has nothing to do with a developer. It is strictly [that] every TIF district has to have a redevelopment plan that has a budget in there that allows the village to have a spending limit on qualifying expenses that are spelled out in the TIF act.”
It’s basically qualifying TIF expenses, but has nothing to do yet with a request for The Grove, a master planned community from Crown Community Development.
“[This report] doesn’t approve anything that the village is doing,” Anastasia said. “It doesn’t bind the village by anything either. It’s just this is a requirement to create a TIF and this is the very first step to create a TIF. It’s an eligibility report and a draft redevelopment agreement, which is what we’ve presented, and part of statute requirements is to put that on file with the clerk prior to the next steps, which we haven’t even moved forward. We commissioned them to do it, the study was done, the plan is done and now here it is.”