Consultant James Mann of Ehlers gives an overview of the proposed Paddock Lake tax incremental financing district at Wednesday’s Village Board meeting.
A plan to create a tax incremental financing district on Paddock Lake’s southwest side to fund completion of the west side water system was approved by the Paddock Lake Village Board Wednesday night.
A TIF district allows a municipality to recover infrastructure costs within a designated area by using all increased tax revenue in that district from development for a designated period of time.
Village officials decided to pursue the TIF district as a way to finance the completion of a water system that was started when some 700 new housing units were proposed for the village in several developments in about 2005. Special assessments were levied against the developers, but when the subdivisions weren’t built the properties were eventually foreclosed on and assessment payments slowed.
The village has $1.6 million already invested in drilling wells. Completing the system will cost an estimated $4.79 million.
Rather than foot the bill for the financing for the system that the village is already obligated too and the cost of completion, officials decided to advance the TIF.
The board’s action Wednesday included designating a boundary for the district. Included property is mostly commercial properties and some undeveloped residential subdivisions as well.
The Village Board’s approval was unanimous, with Trustee Terry Burns absent.
However, that approval is not the final say. Next the program will have to go before a joint review board made up of representatives of all the involved tax bodies for their approval.
“We have had a lot of positive feedback from that group,” village President Marlene Goodson said.
