One of the main opponents of Lakewood’s relatively short lived Tax Increment Financing District, Susan Handelsman, remembers what was at stake:
The creation and destruction of the Lakewood TIF is a fascinating history.
Lakewood was able to create a TIF in annexed territory within Woodstock D200 taxing district.
All the new low income housing students from that TIF would be sent to Woodstock D200, for 35 years, almost 100% at Woodstock D200 taxpayer expense.
At the same time, all TIF tax money would benefit Lakewood coffers.
Note that Village of Lakewood government was empowered to burden disenfranchised taxpayers outside Lakewood with multimillions of dollars of annual taxation obligation.
A few concerned citizens got involved.
D200 Admin and School Board at the time declined to legally object to the Lakewood TIF.
It was pointed out that D200 gets their money either way, so why should they care who has to pay their levy?
A suggestion was made that Lakewood could “detach and annex” that TIF area into Crystal Lake school districts…that was where all Lakewood “East” property tax dollars were sent.
Lakewood and Crystal Lake school district property taxpayers did not fancy that idea.
There was a closed-door meeting between D200 school board president at the time, and Lakewood president at the time.
There was a document crafted, a so-called PILOT (Payments in lieu of taxation) agreement.
(Notably current Woodstock D200 president Carl Gilmore who was then a school board member spoke against the agreement, calling it unenforceable. Gilmore is a licensed attorney at the time as now).
The amount of money which was charged in property taxes PER STUDENT was astounding to some people at the time.
Lakewood people objected.
A new Lakewood Pres was elected on a write-in vote.
TIF was dismantled.
Lakewood remains in defiance of Illinois Fair Housing law which requires a percentage of ‘affordable housing’.
TIF remains a threat to every property owner.
Self defense requires concerned citizens willing to act.
Thank God that monstrosity didn’t go thru. Erin Smith, Vlg president wanted us to believe that Crystal Woods and Craig Woods golf courses were ‘blighted land’ when both are PRIME REAL ESTATE!
All eyes must be on the current mayor of Woodstock now.
He had his hand in that and was named VP of operations to that non-existent Sportsplex and was introducing and voting for a plan to get Woodstock to use $125K of their money to put in artificial turf at the 100 yr old High School at the horror of the residents living around the football field as it grossly changes absorption of precipitation which would mean flooding basements, streets, constantly we field etc.
This was to be a favor/patronage purchase using tax dollars to garner a freebie or heavy discount at his sportsplex.
Legal?
sure.
Ethical?
NO.
Politics, smh.
Wonder what else goes on that the unopened eyes do not see.
Good follow on article to Susan’s prior article. I never knew how TIF could be exploited to push tax burdens from one town to another until I read that.
And if Justin’s post is accurate, Woodstock has some major corruption issues. Well maybe not corruption but definitely integrity issues at the top of the totem pole.
I don’t live there but I find it funny if you live there you don’t have to do a vehicle emissions test every 3 years and if you shop in town and want to bag your items, there is a 10 cent tax per bag you use. Bags are made with petroleum. Do they have climate activists out that way too?
Woodstock TIF was spearheaded by then mayor-in-waiting Turner of Sportsplex and crumb rubber soccer field fame.
Woodstock property tax rates are 3.6% of property value and TIF2 pretty much ensures those rates can never go down.
Kenilworth just did something somewhat similar.
The Village created a TIF District along the ‘blighted’ Green Bay Road corridor.
There is talk of putting condos in, and the high school aged students would go to New Trier High School.
The residents of Wilmette, Winnetka, Glencoe, and parts of Glenview would have to pay for the high school educations of these students.
Kenilworth is one of the wealthiest towns in the state, with a median home value over $1.4 M.
I still remember Erin Smith calling out Serwatka accusing him of lying when campaigned that we would kill the TIF.
Smith: “The TIF is a done deal, there is nothing Serwatka or anyone else can do about it.”
Serwatka: “Hold my beer!”
The rest as Cal states above – “is a fascinating history”.
The only self defense for affected taxpayers is litigation.
Schools often refuse to litigate on behalf of their own communities, so it falls on individuals to fund expensive legal action.
There is supposed to be a committee vote by affected taxing bodies but they seem to always vote yes (they get their levies either way).
Even if a committee no vote, the TIF can go through if high majority of city council votes yes.
It really is egregious harm when you look at it from POV of taxation without representation:
those who will be taxed to subsidize TIF for 35 or more years (23 years is nonsense political obfuscation) are not allowed a vote for those empowered to create the TIF.
Serwatka was the best thing that happened to Lakewood.
Knowing how TIF works, and seeing that it invests municipal rulers with incredible power, suggests an elegant solution for beleaguered Illinois taxpayers.
1. TIF must be in a municipality, so all unincorporated Illinois land could incorporate as a Village. Let’s call it Libertaria.
2. Libertaria declares all land within its borders blighted, thus within its universal TIF footprint and having all assessments frozen for 23 years.
3. Libertaria charter would constrain its government from issuing public debt. If development is desired, it must be funded by hyperlocal SSAs. (Those who would profit from development should bear the economic risks).
4. As farmland is developed to residential, new school enrollment would be a tax burden of non-Libertaria taxpayers.
5. School districts may suddenly be amenable to “allowing” Libertaria to detach and annex into its own newly formed school district.
Of course Libertaria school districts would operate under financial and pedagogical best practices, in keeping with the principles of economic justice and impeding political corrupt practices.
Billy Bob, if I remember Kenilworth correctly, the Green Bay Rd corridor runs parallel with the trains that run from Kenosha to downtown.
Kenilworth is a very affluent community and so are the others you mention the tax burden will be carried by.
It’s another convenient way to get people that work in the city out to the much safer burbs with a lesser tax burden.
You don’t think the wealthy parents and grandparents would buy those condos as starter homes for their silver spoon children and grandchildren do you?
I won’t drag Susan into this one but I bet the Cook County property taxes are cheaper than out here in the sticks.
And Susan, great analogy.
I hope you don’t mind if I steal that one from you when explaining it to my extended family at Christmas.
JT,
The last time I checked, the property tax rate in Kenilworth was ~2.5%.
That might sound like a good deal until you remember that the median home price is well over a million dollars, and the residents don’t typically use a lot of social services and many send their kids to private schools.
Residential property tax rates in Chicago are going up, but I believe they are still considerably lower than that, and they will be paid on home values that are generally a lot lower.
There is nothing blighted about the Green Bay Road corridor, and there is no good reason for Kenilworth to mooch off of the surrounding communities like that.
JT, the Crook County property tax rate is indeed lower than out here.
Cook county property taxes range from below 1% (Glenview) to Harvey (excessive TIF coverage) with tax rates (still below Woodstock) at 3.5%.
Chicago illustrates how TIF works to bugger-thy-neighbor.
Wealthy areas of Chicago in TIF have artificially low taxable EAV, and thus were eligible for higher percentage of State funding.
2017 Education Funding bill came along just in time to lock in disproportionate State aid allocations to wealthy tif areas in Chicago which were getting long in the tooth.
Susan H is the Greatest!
Susan Handelsmanand Paul Serwatka:
2 of the greatest in McHenry County history.
They could not be bought or scared off!