Health & Fitness
Proposed TIF district would encompass Buffalo Grove government property, raise property taxes
Originally, TIF laws were created in Illinois to alleviate blight in communities, but TIFs are often abused by public officials and politically connected individuals for other reasons.
Property tax bills hit mailboxes last week for residents across the state.
The average homeowner in Illinois has an effective property tax rate of 1.93 percent; this is the second-highest property tax rate in the country. Homeowners in Lake County pay a median effective property tax rate of 2.46 percent, which ranks as the 17th-highest tax rate of any county in the country.
Recently I read an article about potential Buffalo Grove developer Chuck Malk, who wants a government subsidy financed through tax increment financing, or TIF, property taxes to finance a private development that he will profit off of. This will make local property taxes even higher.
If this proposal proceeds it might be the first time in Illinois’ history that a TIF district has been proposed for lands entirely owned by government.
That’s because Malk’s downtown Buffalo Grove proposal includes the “demolition and reconstruction of Buffalo Grove’s Village Hall, police station and public works building.” It also includes requires the acquisition of half of the municipal golf course, including the clubhouse and restaurant. All of this would have to be rebuilt elsewhere at an undetermined cost to taxpayers.
In its place, Malk proposes building a mixed development including “a movie theater, grocery store, office spaces, outdoor concert space and three residential towers that would offer a total of 266 owner-occupied units.”
Additionally, Malk’s recent presentation to the Buffalo Grove Area Chamber of Commerce didn’t mention the effect of the TIF district on local residents. According to the Civic Federation’s 2010 report, “the principal effect of TIF is to raise tax rates higher than they otherwise would have been.”
The proposed project development area overlaps the boundaries of many local taxing bodies, including the village of Buffalo Grove, Vernon and Wheeling townships, local school districts and taxpayers in both Lake and Cook counties.
If the Civic Federation analysis is correct, the result of a new TIF district would be higher property tax rates for every taxpayer within the borders of those taxing districts. Some taxing bodies will see higher property tax rates than others depending upon how much of their total area falls within the TIF district.
Originally, TIF laws were created in Illinois to alleviate blight in communities, but TIFs are often abused by public officials and politically connected individuals for other reasons.
Find out what's happening in Buffalo Grovewith free, real-time updates from Patch.
For example, there is no blight in Malk’s proposed development area.
It would be pretty hard for Malk to argue that the village of Buffalo Grove’s own buildings and golf course are blighted.
Additionally, using TIF districts to redevelop the Buffalo Grove Golf Course and open spaces is not allowed under Illinois law.
Find out what's happening in Buffalo Grovewith free, real-time updates from Patch.
“No redevelopment plan may be approved or amended that includes the development of vacant land (i) with a golf course and related clubhouse and other facilities or (ii) designated by federal, State, county, or municipal government as public land for outdoor recreational activities or for nature preserves”.
In the 1970’s Buffalo Grove held a referendum to purchase the golf course, and it passed by overwhelming support of local voters. At the time, one of the justifications given by the village was that the golf course would serve as a floodplain for the community.
It remains to be seen if local officials will ultimately agree with Malk’s plans and approve the creation of the TIF district. However, Village President Jeff Braiman has talked glowingly about the project’s potential and appears in a taxpayer-funded video with the developer touting the project.
Still, it’s clear Malk’s proposed TIF project has some serious legal and political problems.
As for the developer, Malk should either drop the proposal entirely or come up with a plan that doesn’t result in higher property taxes, corporate welfare, the loss of a floodplain and that wouldn’t break state law.
The residents of Buffalo Grove deserve better.
