The Rolling Meadows City Council’s Committee of the Whole agreed at a meeting Tuesday to rearrange a tax increment financing district plan to pay off a large portion of a $3.29 million bond issue.
In 1988, the council created a TIF district at the Rolling Meadows Plaza Shopping Center on Kirchoff Road. It issued bonds with proceeds used to buy a vacant 66,000-square-foot store and remodel it into a Dominick’s Finer Foods grocery.
A portion of sales-tax revenues generated within the TIF district are used to repay the bonds.
Because the site has generated about $160,000 a year more in taxes than needed to pay off the annual $325,000 in interest expense, the council wants to retire about $1.3 million of the debt and release about $260,000 in sales-tax revenue to the general fund.
The council will vote on the proposal at its meeting Tuesday.
