On Monday Aug. 16, the Crest Hill City Council unanimously voted “to approve a resolution aimed at restructuring an existing TIF district to expedite new economic and residential development along Weber Road,” a news release from the city said.
This “inducement resolution” could begin the process of removing 75 acres of property from the existing Weber Road Corridor Tax Incremental Finance district and create a new, standalone TIF in order to develop business and residential properties on Crest Hill’s northwest side, according to the release.
Many municipalities use an inducement resolution to encourage a development program before a TIF district or other economic development plan is in place. As development occurs in TIF district, “the increase in assessed value creates more incremental property taxes,” which are then moved into a fund to help pay for the property’s improvements, the release said.
“The City Council’s vote marks the first step in a process to move forward with the new TIF to avoid further delays in attracting new development along Weber Road, which has long been designated for commercial and residential use,” Crest Hill Mayor Ray Soliman said in the release. “Taking advantage of development opportunities will create jobs and generate much-needed sales taxes and property tax revenue that will help take the burden on local taxpayers.”
Over the next several months, the city will conduct public hearings regarding the establishment of the new 75-acre TIF, Soliman said.
In 2017, City Council members voted unanimously to create the 450-acre TIF on vacant property. But last year, a court ruled that the two tracts of land within the TIF were not contiguous based on a technicality, which stalled development, according to the release.
The Crest Hill Plan Commission previously conducted a public hearing and recommended a planned unit development by developer RR Crest Hill should the TIF plan move forward.
With an inducement resolution, RR Crest Hill could proceed “to incur eligible redevelopment costs of the property,” the release said.
If a TIF is created and funding becomes available through incremental property tax growth, the developer eventually would be reimbursed.