Carpentersville officials have given preliminary approval to a term sheet that will establish a public-private partnership with the owners of Spring Hill Mall.
The vote at Tuesday’s board meeting follows on the heels of West Dundee’s approval Monday of its intent to help financially support the renovation project.
Earlier this year, Rouse Properties, which owns the shopping center, asked to partner with both villages to bring the nearly $40 million project to fruition. Plans call for a movie theater, restaurants and a new layout.
Rouse officials are seeking $8.6 million total in financial assistance from Carpentersville and West Dundee, with the majority, about $7.4 million, coming from West Dundee since most of the shopping center falls within the village. Carpentersville’s portion is about $1.2 million.
Both municipalities plan to establish a tax increment financing district to help cover their costs.
A TIF freezes property taxes at the level paid before development. The money generated by the difference between the property tax bill before development and after development — the increment — can then be used for improvements to the land.
At Carpentersville’s board meeting Tuesday, trustees directed staff to continue working out their term sheet details. The village’s partnership will likely be in the form of a sales tax sharing agreement and, if a TIF district is created, a redevelopment agreement that would reflect the provision of TIF revenues, officials said.
“We’re not agreeing to a final determination,” Village President Ed Ritter said. “That would be another meeting down the road where all the details are worked out.”
West Dundee’s term sheet states the village will allocate 70 percent of the future sales tax increment over the $771,000 the village averaged from the mall in 2013 and 2014, with the exception of its two anchors, Macy’s and Sears, for a term of 23 years or until its portion is paid off. The agreement also states West Dundee will allocate 95 percent of the future property tax increment for the life of a TIF district, about 23 years.
West Dundee trustees have approved a partnership with Kane McKenna Associates to perform the TIF eligibility study and create a TIF redevelopment plan.
Erin Sauder is a freelance reporter for The Courier-News.
