Palatine to Disburse TIF Money

In a time of budget battles and deficit spending, the performance of Palatine’s Dundee Road tax increment financing [TIF] district is unique.

The district has performed better than anticipated, allowing village officials to retire debt and distribute funds to local school districts and other agencies.

“That is money does not have to come out of the people of Palatine’s pocket,” said District 2 Council Member Scott Lamerand. “The TIF has been very successful.”

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.

The Dundee Road TIF encompasses development from Walgreens to Staples. The district’s obligations were paid off in 2009, eight years earlier than expected. This is allowing Palatine to distribute the TIF funds to other governmental districts.

Ordinarily, these districts would have to wait until the TIF expired to see the increased revenue. The village is able to distribute the money now because the TIF has performed better than anticipated.

Palatine approved this month the disbursement of $3.7 million. Palatine also was able to retire the obligations of the Rand-Dundee TIF which includes Home Depot. The funds from that TIF that are being distributed amount to $300,000.

Below is a breakdown of how the TIF dollars are being disbursed:

•  District 15 $1.350 million
• District 211 $ 1.121 million
• Village of Palatine $516,000
• Palatine Park District $238,800
• Cook County $271,200
• Other Agencies $157,600
• Palatine Library District $133,000
• Palatine Township $60,400