The High School District 230 board raised questions Thursday about a plan by Palos Heights to extend its Gateway Redevelopment Project tax increment financing district for 12 years.
The Palos Heights City Council approved the TIF District in April 2005 with an expiration date of December 2027, said Aimee Ingalls, Palos Heights community and economic development coordinator.
It includes a series of developments that extend from the northwest and northeast corners of South Harlem Avenue and Route 83 and College Drive. Six parcels of the TIF are located in District 230, said Jeff Eagan, assistant superintendent of business services.
Ingalls said the extension is necessary to support development projects, such as a Culver’s restaurant where the CIBC bank previously stood.
She said the TIF covers vacant lots that are in distress and need help with redevelopment and infrastructure.
In a TIF district, property tax revenues for all government bodies are frozen at creation, and the city uses any increase in property tax revenue — the increment — to pay for public improvements such as streets, sidewalks, water and sewer lines or to offer incentives to developers.
Eagan said about $13,400 in annual property taxes now go to the TIF instead of District 230, which includes which includes Stagg High School in Palos Hills.
Ingalls said some developments involve conversations with larger entities, such as the Illinois Department of Transportation and the Metropolitan Water Reclamation District of Greater Chicago, which take longer and are outside of local officials’ control.
But a few District 230 board members said they have concerns with the extension.
Chris Kasmer said he was not sure the developments would bring increased revenue for the district down the road. He said most of the developments are located in a part of the TIF district under High School District 218, which includes Shepard High School in Palos Heights.
District 230 board member Susan Dalton agreed and recommended Palos Heights officials let the TIF expire and start a new TIF district for just the portion where new businesses are planned.
“I don’t know why we would need to extend ours, the side, the west side of Harlem and lose that revenue,” Dalton said. “I don’t think that would benefit our taxpayers.”
Board member Tim Danlow said he would like to better understand the TIF’s benefit to the district.
“I want to be able to be, you know, working collaboratively, obviously, with the city of Palos Heights to help them accomplish growth for their community,” Danlow said. “It’s part of our community as well, but … we have to understand what the benefit is going to be in our district.”
Eagan said while there are several planned projects for the District 230 side of the TIF, most undeveloped land would be in the northeast part of the intersection, which is District 218.
Eagan said there is some benefit to the district from the properties gaining in value.
Kasmer also expressed concern about the TIF expenses, saying $12,102 of the revenue was diverted to “city staff professional services” and “professional services,” according to the TIF’s 2023 fiscal year audit on the Illinois comptroller’s website.
Kasmer said he thought this suggests TIF funds are going to Palos Height staff.
Eagan said these funds could be going toward reimbursing the city for surveys, studies, plans, implementation of redevelopment plans or other costs.
“I don’t think that’s actual salaries, because they use the terms ‘professional services,'” Eagan said. “It appears it’s more of a reimbursement for costs associated with them.”
District 230 Superintendent Robert Nolting said the board would like more information on timing, specific TIF plans and alternatives to renewing the entire TIF for 12 years before making a decision.
The typical life span of a TIF is 23 years, even though that can be extended. But such an extension requires state legislative approval, and lawmakers typically call for letters of support from the taxing bodies substantially affected by TIF, including school and park districts.
Eagan said if the TIF districit expires and still has a fund balance, the school district and other taxing bodies would receive a prorated distribution of the balance.
The TIF fund had a balance of more than $2.1 million at the end of December 2023. The TIF audits for fiscal years 2024 and 2025 were not filed on the Illinois comptroller’s website.
The 2023 audit listed three developments assisted by the TIF: Tiffany Square, Starbucks and CIBC Bank.
But Ingalls said CIBC Bank closed, and its property was purchased by the Culver Franchising System. Ingalls said the bank is slated to be demolished soon and that part of its lot will be used for development separate from Culver’s.
A redevelopment project at Tiffany Square that included a new roof, parking and other infrastructure was completed under partial funding from the TIF, Ingalls said.
An expanded Lake Katherine parking lot was also completed with assistance from an IDOT grant, Ingalls said. Palos Heights officials now seek public access easement across the three properties for a public drive to connect the parking lot.
awright@chicagotribune.com
