News; Oak Lawn @ 12 Jul 2006 03:20 pm by judyorr
David Heilmann chose to answer some questions brought up by a recent letter mailed out to Oak Lawn residents by Kmart and other businesses regarding the proposed Oak Lawn TIF in the Daily Southtown rather than spending village dollars on a mailout to residents.
David Heilmann states that Oak Lawn residents will not pay for a $25 million tax increase, but explained that tax increment financing is not an increase. He states that it is a legal method used to lure development without increasing resident’s taxes.
He also states that it is these newly developed properties owners who repay the TIF incentive because of the higher real estate taxes generated by the increased value of these newly developed properties. It was stated that a well respected real estate consultant was hired to prepare a TIF analysis of the site located at 111th & Cicero Ave. in Oak Lawn, Illinois. Their report projected that the real estate taxes would double immediately after completion of the new development and would quadruple in 20 years.
A question was brought up regarding other taxing bodies that would have otherwise received the increment. Heilmann answers that they continue to get the real estate taxes that are currently being generated. They won’t receive the actual increment until the TIF is repaid. However, currently they would not receive any increase as the property currently stands. In fact, he states that the assessed value of the property has declined twice in the last five years.
He again promises that Flapjacks and Harley Davidson will not be forced out. He has supposedly given them this information in writing. However, the original letter states that this promise doesn’t necessarily spell out whether they will continue to own the property or become tenants.
He also says that he is not looking for boutique type stores that would only appeal to higher income shoppers. He says they are looking for another grocery store with a pharmacy to replace the Dominicks that closed down, among other retailers. He also said Kmart collects $250,000 annually from the former Dominicks.
He also reveals that Kmart, who insists they are paying a proper tax to the village, is actually trying to get their taxes reduced. In fact, they are supposedly trying to get a 35% reduction, which was not mentioned in the letter that was sent out. He states that there is written evidence from Kmart that includes the fact that “the remaining economic life of the Kmart building is only 10 years” and “it is crucial for this property to constantly be maintained and upgraded.”
The Mayor says that the bottom line of the TIF is to be able to have more choices for better stores and restaurants and to have the northwest corner of 111th & Cicero look updated and beautiful instead of the huge parking lot and empty Dominicks building that is the current state of the site.
You can read more about the Oak Lawn TIF here.
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