Geneva schools would get $18K per student from Campton Hills developer in proposed impact fee deal

The Geneva District 304 school board agreed to a draft developer donation agreement with Shodeen Group for the proposed 962-acre LaFox of Campton Hills annexation to Campton Hills – subject to attorney approval.

The development includes 900 homes, 700 of them single family, all to be located within the school district.

The school board voted 6-1 at a special meeting Aug. 5, to approve the draft agreement, with board member Willard Hooks Jr. casting the lone no vote. The draft agreement solidifies the district’s financial requirements:

• $6,800 per residence to be paid by the developer at the time a permit is issued.

The amount is based on the village’s land-cash ordinance, for an estimated amount of $6.12 million, with an annual consumer price index adjustment over the 15 to 20 years of the development.

• The district will not object if the village creates a tax-increment finance, or TIF, district to pay for utility infrastructure.

A TIF is a development tool local governments use to encourage development or redevelopment that would be too expensive to improve with private investment alone.

If a TIF is created, the district will require a per-pupil expenditure of $18,000 to $19,000 for each child, each year in addition to the $6,800 per residence fee.

• The district will grant the developer an easement through a 25-acre parcel the district owns at the corner of Keslinger and Brundige roads so Shodeen can connect the development to the Mill Creek Water Reclamation District for water and sewer utility services.

“Campton Hills is considering the creation of a TIF to complete this project,” Superintendent Andrew Barrett said. “We don’t know for sure that will happen. They have not gone through any of the formal things to make that happen. But it’s on the table. ... We wanted to be sure to protect the district if it goes through.”

A TIF district has a 23-year life – unless it is extended with local approval. The district will get the baseline property value that it currently gets if there is a TIF. Any new growth is called the increment, Barrett said.

The draft agreement calls for the district to receive a per-capita tuition amount – $18,000 to $19,000 – for each student enrolled each year, Barrett said.

The language specifically states, “tax increment will be used to pay the District full per capita tuition amount for each and every student enrolled in the District that resides in any of the project dwelling units.”

“Kids in seats,” Barrett said. “If there’s 10 kids that come from the development who come to Geneva 304, we will get our per-capita expenditure for each of those 10 kids – every year.”

The per-pupil expenditure would be ongoing throughout the TIF, Barrett said, and it would be controlled by the village, not the developer.

“That [amount] grows every year and continues to grow,” Barrett said of the per-pupil cost. “If there is no TIF, then we get the full [property] tax and not tuition. The financial contribution is there no matter what.”

The district also agrees not to object to the creation of a TIF.

“We will not object,” Barrett said. “We will not be cheerleaders for it, but we will not object as they go through the process.”

As for the utility easement for the 25 acres the district owns, Barrett said the water reclamation district has the right to say no.

If that happens, “the project might turn out not to be feasible and it won’t happen,” Barrett said.

A Campton Hills annexation hearing is expected to be scheduled for early September, Village Administrator Mark Rooney said.