Palos Heights is one step closer to extending its Gateway Redevelopment Project tax increment financing district by 12 years after a vote of support Wednesday by the High School District 218 board.
The Palos Heights City Council approved the TIF district in April 2005 with an expiration date of December 2027. Palos Heights Mayor Robert Straz said the 12-year extension is standard, but the village will likely seek to close the TIF district sooner, once two areas along Harlem Avenue are developed.
Straz said a Culver’s restaurant is planned for the west side of Harlem, where a CIBC bank formerly stood, though those developers are not seeking TIF financing. Behind that parcel is a vacant lot Straz said could fit another restaurant, but no plans are underway.
The Culver’s parcel is within District 230, while the vacant lot is within District 218.
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.
District 218 business manager Anthony Corsi said even though the district will lose some property tax revenue from the TIF extension.
“Anything that makes our communities better, which is going to draw more business in, which is going to draw more people — that’s ultimately healthy for our district,” Corsi said. “So we’re going to support that, even though it’ll potentially cause some loss of tax dollars for us.”
Corsi said he did not know how much property tax for District 218 typically is diverted to the Gateway TIF fund.
Before seeking state approval for the TIF extension, the village must gain support from all affected taxing bodies. The TIF district spans parts of District 218 along with Orland High School 230, which Straz said is the only taxing body that hasn’t expressed support.
“They want us to just close it out and start a new TIF, which becomes too costly … for a small remaining project here,” Straz said.
The District 230 board raised concerns March 19, including whether the remaining developments would benefit the district. District 230 officials said $13,400 in annual property taxes now go to the TIF instead of District 230, which includes Stagg High School in Palos Hills.
“I don’t know why we would need to extend ours, the side, the west side of Harlem and lose that revenue,” board member Susan Dalton said. “I don’t think that would benefit our taxpayers.”
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.
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 the former CIBC Bank, where the Culver’s is planned.
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