Outlook Good On New TIF Districts after Public Meeting

is one step closer after Tuesday night’s .

Despite some criticism during the 175th Street TIF discussion by both a member of the public and several trustees, the entire board ultimately gave their support of the TIFs.

Mary Thompson, senior vice president of Kane McKenna and Associates, Homewood’s TIF consulting group, gave a brief overview of the preliminary numbers and qualifications for the new TIFs.

175th Street TIF District

According to Thompson, the 175th Street TIF will be predicated on two parts of a specific form of the TIF Act: blighted area improved land (for land with buildings) and blighted area vacant land (for vacant land). Both together cover the mixture of land with pre-existing buildings as well as vacant land, making this TIF fall under the blighted area category.

A blighted area improved land TIF requires five of 13 different criteria to be met. Homewood has met six of these criteria:

• Lag in Equalized Assessed Value growth (during at least three of the last five years)
• Obsolescence (properties that have become obsolete)
• Deterioration
• Excessive vacancies
• Lack of community planning
• Inadequate utilities

A blighted area vacant land TIF requires two of six different criteria to be met. Homewood has met two required criteria:

• Lag in EAV growth
• Obsolete planning

Additionally, Thompson said the base EAV of the district, based on 2010 EAV values is about $14.7 million. The projected EAV upon completion is estimated to be $35 to $40 million, Thompson said. The proposed TIF budget is $28 million and the land is intended for commercial, retail, mixed and industrial uses.

East Central Business District (ECBD) TIF District

“This is a strategic location for this village. It provides economic significance to the village and it needs to be redeveloped in a coordinated and planned manner,” Thompson said.

Unlike the 175th Street TIF, the ECBD TIF district will be established as a conservation area TIF district.

A conservation area TIF district requires three of 13 criteria to be met in addition to an age requirement: 50 percent of the structures in the district must be 35 years or older. Homewood passes the age requirement with 10 of 12 buildings, or 83 percent, that were built 35 years ago or earlier. Six of the 13 criteria were met:

• Lag in EAV growth
• Obsolescence (properties that have become obsolete)
• Deterioration
• Excessive vacancies
• Lack of community planning
• Inadequate utilities

The base EAV of the proposed ECBD TIF district is currently just over $2 million, according to Thompson. This compares to a projected EAV of $8 to $9 million by the end of the project, Thompson said. The proposed TIF budget is $10 million and proposed land uses are mixed and commercial.

“The goals for this TIF are to increase density, increase commercial development, improve the physical conditions—including streetscape, upgraded street furniture and signage and enhanced open space areas,” Thompson said.

Make sure to check back with Patch later to get a deeper look into the 175th Street TIF discussion.