Tuesday, November 15, 2005
Crystal Lake TIF Fallout: “Tax Hiker” for Re-Election?
It is the so-called Main Street Tax Increment Financing (TIF) district that the city council is supposed to vote on this evening at its 7:30 meeting. It only takes four votes because the park district did not voice its opposition soon enough and Grade School Board member Dave Hubbard successfully argued that his board should not oppose the Downtown TIF, resulting in no opposition resolution's being passed.
According to the Sunday Northwest Herald, the vote on Vulcan Lakes/Route 14 TIF has been postponed until Dec. 6th. Yet, the vote could still be tonight.
The hastily written, lengthy TIF endorsement editorial that appeared in the today’s Herald (see article here) could be used to “convince” an apparently shaky council member that he/she will have enough cover to get re-elected when the time comes.
Still, the “tax hiker” label could be waiting.
And, just as the Northwest Herald could not stop the exemplary door-to-door effort by Jim Thompson, Chairman of Citizens Against TIFs, it may not provide enough of an umbrella to deflect a determined tax fighter.
The Crystal Lake City Council says it will be spending $35 million in the Main Street TIF. Of course, that does not take into account approximately the same amount that will have to be paid in interest after borrowing the $35 million.
The biggest winner in the Main Street TIF will probably be the owner of the old Oak Manufacturing building. When my state representative office was located there, I asked for some re-modeling. The cost was rolled into the rent over the term of the lease. But, at least the tenant, through your taxes, paid for the improvements.
Under the TIF proposal, it is my understanding that property tax dollars could be used to pay for renovation, if the city council agrees. (Councilman Howie Christensen did ask if the financing could be a loan, but I doubt that such TIF improvements are traditionally considered “loans.”)
If remodeling costs comes out of the TIF property tax dollars, it would mean that taxpayers throughout McHenry County could end up paying to make Oak Manufacturing more suitable for renting, as local governments raise their tax rates to compensate for the loss of tax revenues.
That does not strike me as fair.
To return to McHenry County Blog, click here.
# posted by Cal Skinner : 4:54 PM 0 comments
According to the Sunday Northwest Herald, the vote on Vulcan Lakes/Route 14 TIF has been postponed until Dec. 6th. Yet, the vote could still be tonight.
The hastily written, lengthy TIF endorsement editorial that appeared in the today’s Herald (see article here) could be used to “convince” an apparently shaky council member that he/she will have enough cover to get re-elected when the time comes.
Still, the “tax hiker” label could be waiting.
And, just as the Northwest Herald could not stop the exemplary door-to-door effort by Jim Thompson, Chairman of Citizens Against TIFs, it may not provide enough of an umbrella to deflect a determined tax fighter.
The Crystal Lake City Council says it will be spending $35 million in the Main Street TIF. Of course, that does not take into account approximately the same amount that will have to be paid in interest after borrowing the $35 million.
The biggest winner in the Main Street TIF will probably be the owner of the old Oak Manufacturing building. When my state representative office was located there, I asked for some re-modeling. The cost was rolled into the rent over the term of the lease. But, at least the tenant, through your taxes, paid for the improvements.
Under the TIF proposal, it is my understanding that property tax dollars could be used to pay for renovation, if the city council agrees. (Councilman Howie Christensen did ask if the financing could be a loan, but I doubt that such TIF improvements are traditionally considered “loans.”)
If remodeling costs comes out of the TIF property tax dollars, it would mean that taxpayers throughout McHenry County could end up paying to make Oak Manufacturing more suitable for renting, as local governments raise their tax rates to compensate for the loss of tax revenues.
That does not strike me as fair.
To return to McHenry County Blog, click here.
# posted by Cal Skinner : 4:54 PM 0 comments
# posted by Cal Skinner : 9:44 AM
