The proposed tax-increment financing (TIF) district at Rand and Lake Cook roads could soon bring the total number of TIF districts in Palatine to five.
The Palatine village council held a public hearing Monday night for the proposed TIF district that would encompass the area south of Lake Cook Road, west of Hicks Road and east of the Cook County Forest Preserve.
Last October, the Palatine hired SB Friedman, a real estate and development advisory firm, to conduct a TIF Eligibility study, and in March the council gave its approval to move forward with creating another TIF zone in Palatine. There are three existing TIFs in the Rand/Dundee area and another downtown.
When a TIF area is redeveloped, the value of property is supposed to increase. This in turn increases the property tax revenue from the area. The increased revenue is placed in a TIF fund and used to pay for public improvements. TIFs typically are in place for 23 years.
Village officials estimates that over the life of the TIF, the total eligible redevelopment project could be up to $35 million, said Mike Jacobs, deputy village manager. A TIF is not a new or additional tax, Jacobs said, and stressed that it does not change the process of how Cook County assesses a property.
The proposed 110-acre redevelopment area currently comprises 51 parcels and 44 buildings. Jacobs said there’s been a lack of growth in the area for the past four to five years, deterioration in 41 percent of the parcels and inadequate utilities in 84 percent of the parcels.
The revamped area would be used for commercial, industrial, institutional and mixed use. Village documents state that the main goals of the Rand/Lake Cook Redevelopment area are to “eliminate the conditions that qualify the area as blighted, strengthen the commercial corridor along Rand Road and support commercial and residential development along Lake Cook Road.”
Connie Kus, a Palatine resident, noted that there was a single family zone squashed in between two planned unit developments and she asked whether the zoning classifications could change if the council approves the TIF. Jacobs said that cannot happen without a proper zoning board hearing.
The Palatine village council will vote on the matter sometime next month.