Tax Increment Financing District V was created to assist in redevelopment of Town & Country and Southpoint Shopping Centers. Early on TIF increment was provided to the ownership of Town & Country to assist in renovating and de-malling the former interior mall. TIF V was created in February, 2005 and expires in 2028.

In 2020, the Village negotiated a redevelopment agreement with Visconsi Companies, owners of Town & Country Mall for $1.4M for assistance with infrastructure, sitework, and façade improvements to attract Raising Cane and renovate the former vacant Dominick’s grocery store space. The agreement had a true-up provision and in 2022, TIF reimbursement was provided in the amount of $1,354,511. Property tax increment received in TIF V increased from $805,182 in 2021, to $1,235,647 in 2022.

In 2021 the Village negotiated a redevelopment agreement with Southpoint Shopping Center ownership to attract At Home. The assistance was $1.3M, and At Home opened in the formerly underutilized 100,000 sq. ft. retail space. The Village also negotiated a redevelopment agreement for $170,000 for storm water detention to facilitate the new out lot developments currently under construction.

After payments and Rand Road enhancement projects, TIF V has a positive fund balance. Declaring surplus funds in a TIF district, allows the taxing districts that are under a tax cap to utilize these funds outside the tax cap. The surplus would be distributed proportionately amongst the taxing districts based upon current tax levy rates and formulas. For example, approximate share of tax bills in 2021 was School District 214 approx. 26.6%, School District 25 approx. 37%, and Village of Arlington Heights approx. 12%.

Recommendation

It is recommended that the Village Board adopt the resolution declaring and authorizing $1 Million surplus from TIF V.