CLARENDON HILLS, IL – Hinsdale High School District 86 officials on Thursday continued their criticism of a proposed tax district in Clarendon Hills that would divert money from schools.
In a message Friday morning, the village responded, saying the proposal was important for economic development.
Earlier Thursday, school Superintendent Michael Lach and the school district’s top finance official, Josh Stephenson, met with the village manager.
Find out what's happening in Hinsdale-Clarendon Hillswith free, real-time updates from Patch.
School officials described it as the first sit-down meeting between the two entities on the proposed tax increment financing district, or TIF. The district would be along 55th Street.
“Pleasantly surprised”
Find out what's happening in Hinsdale-Clarendon Hillswith free, real-time updates from Patch.
The village argues that without a tax district, the area in question would not see development.
At Thursday’s school board meeting, Superintendent Lach questioned that assertion.
“We feel (the tax base) isn’t lagging or declining in this area,” he said. “It seems like the value of the area is increasing faster than the village. We’re not convinced it exhibits obsolescence.”
Lach said the 45-minute meeting with Village Manager Zach Creer was “very cordial” and “very warm.”
“I was pleasantly surprised that he seemed open to having a conversation about many of the issues we’ve talked about around the table, and he’s interested in our support,” the superintendent said.
Board President Catherine Greenspon said the village has not been clear about how it would spend the money from the tax district.
Under state law, such a district for 23 years can divert any property taxes derived from growth in its tax base. This money would be kept from schools and other public bodies.
The money can only be spent to benefit the tax district. In many cases, towns enter agreements with other taxing bodies to share some of the money. The village has proposed such arrangements.
“The onus” seems to be on the village
Greenspon said Thursday’s sit-down meeting was the first. The other discussions have been at public meetings, such as the committee of local taxing bodies that voted 4-3 against Clarendon Hills’ proposal.
“We have not been able to have these discussions,” she said.
Board member Jeff Waters agreed. As for holding a sit-down meeting, Waters said, “The onus would seem to be more on Clarendon Hills than it would be 86 to engage in a meeting like we had today.”
Asked for comment Friday, Creer said he has had at least eight meetings with various District 86 officials.
Some have been with board members representing themselves as residents, while others have been with the school district’s attorneys, he said. The meeting with Lach, who took the helm in July, was a first, he said.
“We don’t pick or ask for specific people,” Creer said in an email. “We have also responded quickly to district written requests. This is in addition to spending a lot of time meeting and discussing with the other taxing bodies.”
“It’s just the village guessing”
Creer said Thursday’s meeting was good, with Lach and Stephenson seeming knowledgeable and having spent a lot of time thinking about the tax district proposal.
The district’s administrators, he said, should play a bigger role in reaching a deal with the village.
“Part of my professional training and ethic is that relying on your professional staff is extremely important in local government,” Creer said in the email. “I think the school board should consider empowering their staff to work out a deal. Right now, it’s just the Village guessing on what the school board would accept based on public statements.”
Creer disagreed with the statements about the area in question. One of the state’s factors is that the tax base in the proposed district lags behind inflation or village tax base growth for at least three of the last five years, Creer said.
He said the district has lagged behind the inflation rate. But he said he understands that many feel this metric is unfair because inflation was high.
With that argument, though, all new TIFs would be invalid during high inflation, Creer said.
“Strengthen existing businesses”
During Thursday’s meeting, members said Clarendon Hills lacked a plan on how to invest the money.
Creer said the village has presented ways it would spend the proceeds.
One of the focuses would be to redevelop the Tracy’s Tavern property, he said. The bar, which closed years ago, was demolished last year because of many code violations.
The other possible investments, Creer said, would be fixing the intersection at 55th Street and Western Avenue, making pedestrian improvements like sidewalks and safe crossings, and improving water pressure.
“We only expect a few new developments, but it will be used to help retain and strengthen existing businesses,” Creer said.
“Unnecessary litigation”
One of the village’s biggest fears is losing the local Jewel store, which is in the proposed tax district.
Jewel is one of the two biggest sales tax producers in the village, representing over half the village’s sales tax income, Creer said.
“Not having an insurance policy, given it’s the smallest and oldest store in the market, seems like a mistake,” Creer said. “Jewel closing would mean either tax hikes for homeowners or steep cuts to public services, likely public safety or road infrastructure.”
In his email, Creer suggested the village may be sued over the tax district.
Click Here: georgia rugby jersey
“Village’s biggest concern at this point is avoiding unnecessary litigation,” he said. “The only party to win from that would be the attorneys, and regardless, the taxpayers would lose.”
Over the last year, the school board has shown it’s not shy about spending money on lawyers. Annual legal spending reached nearly $700,000, a decade-long high. The board is now looking at ways to curtail such expenditures.
Here is Clarendon Hills Village Manager Zach Creer’s email on Friday to Patch about the proposed tax district:
I have had at least 8 meetings with various district 86 officials. Sometimes with board members representing themselves as residents, sometimes with their attorneys and for the first time directly with their new superintendent yesterday. We don’t pick or ask for specific people. We have also responded quickly to district written requests. This is in addition to spending a lot of time meeting and discussing with the other taxing bodies.
I had a good meeting with the Superintendent and their CFO. Both seemed very knowledgeable and spent a considerable amount of time thinking about this TIF.
Village offered further concessions including map amendments, budget reductions and perhaps further surplus of certain properties. Particularly, the homes on Western Ave still seem to be a reoccurring concern.
We continue to believe that as it stands the TIF appropriate for this area and that ultimately this TIF financially benefit the Village and all impacted taxing bodies. The intergovernmental agreement makes sure that the TIF is cash flow positive for the District from day one.
Part of my professional training and ethic is that relying on your professional staff is extremely important in local government. I think the school board should consider empowering their staff to work out a deal. Right now, its just the Village guessing on what the school board would accept based on public statements.
State statue for one of the factors (mind you it is not required) is that EAV needs to lag CPI or Village growth in EAV for at least 3 of the last 5 years. It has. I understand that many feel this is an unfair criteria because inflation was high. But, the counterfactual on this would be that all new TIFs are invalid during a high inflationary period. So objectively it meets the statute, this is just numbers.
Lack of utilities is backed by an engineering study and public testimony from residents in the area. Lack of planning is also an objective criteria as this area was not planned by the Village and development occurred under the county’s authority mostly before the Village even had a comprehensive plan. The Village’s TIF consultant believe it qualifies too with an additional two criteria. Statue only requires 3 criteria plus age be met.
Where I live, my middle school and elementary school district have at least 4 active TIF districts. District 214, my high school district, has over a dozen. It’s a tool used throughout Illinois to help redevelop area that have stagnated or started to decline. They are massively successful statewide. Our downtown TIF has helped increase EAV by 50% in just 3 years by making public improvements, and issuing grants to help fill vacancies. Aside from development that is expected to bring high sales taxes, TIF is really the only tool available to a non-homerule community.
This TIF can be used to finally redevelop Tracy’s Tavern, fix the intersection at Western Ave and 55th St., make pedestrian improvements like sidewalks and safe crossings, and help water pressure. We only expect a few new developments, but it will be used to help retain and strengthen existing businesses. The Jewel Osco is one of the two biggest sales tax producers for the Village, which represent over half of the Village’s sale tax. Not having an insurance policy, given it’s the smallest and oldest store in the market, seems like a mistake. Jewel closing would mean either tax hikes for homeowners or steep cuts to public services, likely public safety or road infrastructure.
Village’s biggest concern at this point is avoiding unnecessary litigation. The only party to win from that would be the attorneys, and regardless the taxpayers would lose.
Not sure there is really “blame” to go around. I really do not think this has any impact on district 86 operations, and can only lead to a larger tax base in the future while fixing some real issues in the area.
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.