Hoffman Estates Delays Residential TIF District

The arguments made by Algonquin School District 300 and Barrington School District 200 (see article yesterday) must have had some impact on the Hoffman Estates Village Board.

District 300 Superintendent Frederick Heid writes,

The Hoffman Estates residential TIF proposed for the Plum Farm development has been withdrawn.

The village is still working with the development group to address community concerns regarding density and other community concerns.

From a school district perspective we continue to work in tandem with CUSD200 to address our mutual concern regarding the number of students being generated and our need for a school site.

Our primary concern with the original TIF request was its ineligibility and overall fiscal impact.

The district remains in support of the interests and needs of other taxing bodies.

I believe that we have clearly demonstrated our mutual interest in seeing our community grow.

However, growth should not burden the local tax payer and should be certain to include the various needs of the community.

For future reference, and to better assist [those interested, one] can find a great deal of information on our website at http://www.d300.org/. The websites main page actually has a dedicated tab (right side blue and white) where stakeholders can find information regarding the Hoffman Estates TIF. You can visit the link directly athttp://www.d300.org/TIF.

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How refreshing that these school districts have figured out that Tax Increment Financing District are not good for taxpayers.


Hoffman Estates Delays Residential TIF District — 20 Comments

  1. The press release incorrectly states, “CUSD200.”

    It is CUSD 220, which is the Barrington school district.


    Here is a press release from the Village of Hoffman Estates almost 1 month ago.

    “Plum Farms Developer Withdraws TIF Request

    Post Date: 04/05/2017 3:02 PM

    The ownership group proposing a Tax Increment Financing (TIF) district to support the creation of a residential and commercial development at the northwest corner of Illinois State Routes 72 and 59 has formally withdrawn its request to the Village for the establishment of the TIF district.

    The proposed development, commonly known as Plum Farms, is on land owned jointly by Golden Goose Enterprises LLC, Plum Farms 0SR72 and Rubina Realty Corporation.

    Media Contact:

    Village of Hoffman Estates

    Jim Norris, Village Manager


  2. As the public at large gets better ‘educated’ relative to TIFs, will we see more dialogue such as this?

    Need to make TIF education part of the Dreyfus Civics program!

  3. TIF law provides for any municipality to set up a TIF anywhere they like, which will stand up unless local citizens spend a great deal of time and money to object…and even then the TIF will likely stand up.

    TIFs are more properly described as Tax Rate Cap Evasion Mechanisms.

    If TIFs are truly a righteous mechanism, then EVERYBODY should get equal treatment under that law and equal opportunity to avail their own property of that economic incentive, right?

    Here is the only question that needs to be answered: because ALL McHenry County property could qualify as blighted under the same terms used to ‘qualify’ the Lakewood TIF, why not declare ALL McHenry County property a TIF District?

    1. Let ANY property owner receive frozen assessment as of today, and be given free money equal to 30% of all property enhancements they pay for over the next 35 years.(Bonds may be issued to provide this payment).

    2. Let all property owners simply be given back all property tax payment increases which are a result of increased assessments over the next 35 years. They can spend at will. This is what municipal rulers are given.

    3. Let all property owners be rebated all property tax payment increases due to inflationary increases on their property taxes paid over the next 35 years.

    4. Schools and taxing bodies will have to make do with raising as much as possible under PTELL.
    If they can’t economize, then, well, Illinois Teachers Union is very powerful lobby; surely they can get PTELL lifted to accommodate double-digit inflationary cost increases.

    If school districts declined to object to TIFs for a few politically selected developers, how could they possibly object to TIFs for all?
    What possible benefit is there to children for one partisan, politically connected developer to receive a deal that isn’t available to all households of all children in their District?

    Jobs? Without claw-back provisions, jobs are worth less than the social welfare provisions connected with low/no income. (We know that from lengthy Valley Hi testimony om the difficulty of recruiting CNAs to work reliable hours).

    That ‘jobs-creation’ argument doesn’t hold water unless TIF-related jobs are guaranteed to be HIGH PAYING, long-lived, and guaranteed to last by claw-back provisions. And we know that is not the case.

    We cant beat TIFs.

    Let’s Join ’em.


  4. Susan, your entire statement assumes TIF money is given freely to developers to do with as they please, that is not always the case.

    Sure, there are many examples of bad TIF’s though out Illinois.

    TIF reform is BADLY needed. However, with the right reform, multiple taxing bodies sharing revenue to improve public infrastructure with a purpose of reducing the overall tax burden of the existing tax base can be a positive.

    In the case of Lakewood, if the TIF money is used strictly for the purpose of bringing municipal utilities to 176 and 47 for commercial development and then the TIF is closed, ALL overlapping taxing districts benefit from the increased tax revenue generated by turning farmland into property generating more significant property and sales tax.

    This increase in NEW tax revenue would help decrease the burden on those currently footing the bill. A win win for all those involved.

    I would not be supportive of using the TIF as a mechanism to rebate property taxes or provide any other incentive for a developer.

    Public funds belong to the public and should not be given to any private party.

    I also believe residential development within a TIF area is a significant problem because school districts will bear most of the burden from those new rooftops.

    While Illinois law does provide some relief for school districts, it typically will not cover the costs.

    If a residential development proposal were put before the Board, I would suggest an SSA on the new development to cover the additional cost of those students.

    My guess is a residential developer would be turned off by this proposition and withdraw their proposal.

  5. The area around Route 176 & 47 is not blighted in any practical sense of the word blighted.

    If the developers can’t turn a profit without a taxpayer subsidy, reduce state / local government costs /laws / regulations, and / or the current property owners can sell property for a lower price, and / or vendors can reduce their costs if they want the business, etc.

    What the TIFs have allowed in Illinois is artificially high development costs due to municipalities providing millions in subsidies.

    TIF reform is needed, but those in power don’t want that, so municipalities just rationalize the best option is a TIF, and we are in this endless cycle of unsustainable government costs.

  6. A perfect example of hiked taxpayer costs due to TIFs is the 4 stone monuments on Route 14 / Virginia Avenue in Crystal Lake.

    Two monuments, one on each side of the road, at the beginning of the TIF district, and two monuments at the end of the TIF district, again, one on each side of the road.

    It is unlikely the village would have built the TIF monuments without the TIF revenue.

    Just about every person can think of a better use of taxpayer funds than knowing the beginning and ending of a TIF district by looking at a stone TIF monument.


  7. Jason my entire statement assumes what the law allows and what actually happens.

    Your fantasy scenario is absurd.

    If infrastructure financing was the goal that could be accomplished with plain vanilla muni bonds.

    The Lakewood TIF has specific resolution to site 100+ low income housing.

    Do some homework.

    We are at an inflection point of survival, and face the choice of bugging put or standing and fighting.

    When you catch up learning facts about how TIFs are actually employed you’ll understand that the only defense against them is to give them to everyone.

  8. lol Questioning. Wonder how many here have even heard of the Dreyfuss civics program.

  9. Mark?You forgot to mention the street lights with the spyware and the expensive pavers that had to be replaced after one winter. Still going to be paying for that for another twenty-eight years.

  10. http://www.thedreyfussinitiative.org/support-us/as-an-individual/

    (how to participate as an individual)

    “Become a speaker at your local public, private, parochial, and home school. Help teachers explain the relevance of their civics curriculum. Share your experiences as a local official or activist. Host field trips to local government and community agencies so students understand their impact in our day-to-day lives.

    Establish an online community forum to share information and ideas. If one already exists in your area, then (1) participate, (2) recruit others to participate, and (3) share your forum with us to inspire others to take action. Here are some very successful examples:

    Establish an online community information portal to archive and share local ordinances, regulations, processes, and documents. Also include relevant legal rulings. One of the great challenges for community activists is there is rarely “institutional memory”. As a result, much precious volunteer time is spent relearning processes, players, and precedents. There is always a “back story” to every local issue, and that information will not be in the public record or the news media. If one already exists in your area, then (1) participate, (2) recruit others to participate, and (3) share your web portal with us to inspire others to take action. Here are some very successful examples:

    Demand local governments make public information truly public. This means making sure government entities post all their public documents on the web, and making them keyword searchable. Ask your local government officials (town, county, school board) to create a citizens’ advisory board to make sure public information is available and user-friendly. Make sure there is a “sunshine” act that requires public access to public information and that local officials are fully complying with the law.

    Demand local governments be fully accessible to the public. Public meetings must be announced online by governmental entities so everyone has adequate and timely information in order to participate. Public meetings must be conducted in a manner that allows for fair and open consideration of public issues, including:
    the agenda known well in advance,
    information on some of the pros and cons of the agenda items available well in advance,
    proper procedures, such as Roberts’ Rule of Order, are followed,
    conflicts of interest are fully disclosed and officials recuses,
    the meeting is held at a time that maximizes public participation, such as an evening meeting in communities with many commuters,
    adequate time is set aside for the public to comment on pending matters,
    the meeting is broadcast, webcast, and the video permanently archived on an official website
    minutes and votes are quickly posted online. Lists of all votes would be very helpful for local government, where fewer monitory groups exist than nationally.

    If meaningful and timely public participation is being achieved in your area, then (1) participate, (2) recruit others to participate, and (3) share your local government’s web portal with us to inspire others to take action.

    Make sure your state prohibits “Strategic Lawsuits Against Public Participation” [SLAPP]. If SLAPP is allowed, then push your state legislators to pass Anti-SLAPP legislation. The First Amendment is vital to holding our public officials and our public processes accountable.

    Recruit and campaign for local candidates who support a healthy civic culture, regardless of party affiliation. No one party has “cornered the market” on helping or hurting America. At the local level, basic services [first responders, libraries, parks, utilities, roads] are not partisan issues. The rule of law, accountability, and effectiveness should always “trump” partisanship.

    Make sure your local governments announce clearly which staff to go to for each subject, from barking dogs to water quality. Make sure staff have time and are just as helpful to concerned citizens as to applicants, and inform the public early when they consider new policies and major applications.

    Make sure your local government posts its budget and spending online in understandable detail, generally broken into categories of 5%-10% of the total, neither mind-numbing detail, nor big totals hiding the story. For example if schools or police take 60% of the budget, break them into 6-12 sub-categories by region, grade level, or other important category.”

  11. Susan Handelsman’s next campaign slogan should be, “give me a tax break and get off my lawn!”

  12. Says someone who is not smart enough to do any of the things recommended.

  13. Susan, properly utilizing a TIF is no more an “absurd fantasy senario” than effciently using tax dollars and reducing government expenses. It is how government should be run.

    I understand municipal bonds are an option.

    However, a properly administered TIF spreads the infrastructure expenses across all government entities that benefit from the tax dollars raised by new development.

    A municipal bond would require Lakewood to foot the entire bill, while all other tax bodies benefit.

    I have done my homework and the low income housing you speak of is nothing more than a boogie man created to scare residents about the TIF.

    If any housing was proposed, it would likely be some type of senior housing.

    They are popping up all over the area, they generate multiple tax revenue streams and would help support retail.

    They do not add any tax burden to the schools.

    In fact, quite the opposite.

  14. I 100% agree Crystal Lake’s waste of TIF funds was completely irresponsible.

  15. Susan’s an idealist when it comes to taxes.

    To her, it’s easier to put on slippers than lay carpet.

    Doing big things is difficult and just because something is complex or hard to do doesn’t mean it can’t work.

  16. Jason the sole local beneficiary of TIF generated tax dollars for 35 years is Village of Lakewood.

    That would also be the case if Lakewood issued debt for infrastructure.

    Are you claiming that for 35 years, a one square mile area TIF will not build residential development generating 3-21 year old population?

    Are you aware of a legal basis to refuse a development proposal of non-age-restricted low income housing in light of Lakewood’s non compliance with Illinois Affordable Housing Act and Village resolution to comply with this Act?

    Retail sales tax generated within the TIF flow to Lakewood. What do you mean ‘quite the opposite’?
    Do you think schools get retail sales tax revenues?

    You fail to address the costs engendered by TIF development which must be paid for by taxpayers outside of TIF for 35 years.

    These costs include increased police road fire&rescue increased costs of MCC MCCD library and County government.

    You fail to address the blight engendered outside the TIF by putting competitor businesses and residential areas at cost disadvantage.

    That blight comes at additional cost to taxpaying society outside TIF.

  17. Past performance indicates future results.

    The performance of TIFs and municipal government in a County with a mean and median 3.7% property tax rate (vs. National mean 1.4%, State and Chicago mean rates around 2.4%) indicate that the Lakewood TIF will brutalize Woodstock (property tax rate 4.2%) and the Woodstock TIF will continue to exploit Woodstock taxpayers.

    There is no plan proposed–carpeted or bare splintery boards— to mitigate the economically devastating impact these TIFs have on Woodstock or McHenry County’s anomalous high property tax rates.

  18. Susan, If the TIF is used as I stated, Lakewood is NOT the sole beneficiary.

    ALL taxing districts that overlap in the TIF district would share the cost to bring the infrastructure necessary to facilitate development.

    The taxing districts would also benefit from the increase in property taxes to farmland to developed property.

    I am not claiming anything.

    I am saying the TIF district should be dissolved after paying for the infrastructure needed to benefit ALL taxing bodies.

    Please do not put words in my mouth.

    I did not say we would refuse development of non age restricted housing.

    I said we should require such a development to cover the cost of education with an SSA given the TIF status.

    It would be up to the developer to decide if they could be profitable with that caveat.

    No part of my comment stated that retail sales tax would benefit anyone other than Lakewood (although a gas station or quick mart would generate Lotto sales which would benefit education).

    My comment, “quite the opposite”, was intended to reinforce that senior housing would generate jobs, sales tax revenue for Lakewood and would benefit EVERY overlapping tax district with increased property tax revenue, NOT available without development, without adding ANY burden to school budgets.

    Regarding your last two paragraphs, I agree, if TIF funds are used for purposes other than infrastructure it does put business outside the TIF district at a dis-advantage.

    Your other points remain to be determined.

    I have offered to discuss your concerns/ideas with you, however, you have mocked me for “falling to educate myself”.

    How am I able to understand your perspective without a civil discussion?

    Finally, “past performance indicates future results” is an impossible statement to debate.

    If that statement is one of your core beliefs, there is nothing you can do to change the future of our country.

    I believe there is a way to change our course if enough citizens care enough to stand up and get involved.

  19. Jason I would be glad to meet and discuss.

    You seem to think that your described scenario is an actual possibility and I have seen no law or past precedent to support that prediction.

    Sorry to have been brusque but this topic brings out commentors who aim to divert serious discussion though tactical generalization.

    “Past performance…” was in response to a factually inaccurate comment about my personal reaction to political issues.

    My own past performance illustrates my willingness to stand up and get involved in efforts to change our future.

    Please email me, we can meet at a Starbucks and both leave with clearer understanding of the Lakewood and Woodstock TIFs and TIFs in general.

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