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Ordinance No. S9-99
AN ORDINANCE
OF THE CITY OF ELGIN, KANE AND COOK COUNTY, ILLINOIS,
APPROVING AN AMENDED REDEVELOPMENT PLAN AND AMENDED
REDEVELOPMENT PROJECT FOR THE DUNDEE/SUMMIT TAX INCREMENT
REDEVELOPMENT PROJECT AREA
WHEREAS, it is desirable and for the best interests of
the citizens of the City of Elgin, Kane and Cook County,
Illinois, for the City of Elgin to implement tax increment
allocation financing pursuant to the Tax Increment Allocation
Redevelopment Act, Division 74 .4 of Article 11 of the Illinois
Municipal Code, as amended (Act) , for a proposed amended
redevelopment plan and amended redevelopment project (Plan and
Project) within the municipal boundaries of the City of Elgin
and within a previously designated and adopted redevelopment
project area (Area) described in Section la of this ordinance,
which Area constitutes in the aggregate more than one and
one-half acres; and
WHEREAS, the City Council of the City of Elgin, Illinois
has previously adopted and designated a redevelopment Area and
plan for the area commonly known a the Dundee/Summit TIF
District by ordinances S8-86 and S9-86, adopted December 22 ,
1986 (Prior Ordinances) ; and
WHEREAS, the City Council of the City of Elgin, Illinois
has determined that it is advisable that the City afford
itself of the provisions of the Act and by ordinance approve
an amended redevelopment plan (Amended Redevelopment Plan) and
an amended redevelopment project (Project) for said territory
previously designated by Prior Ordinances and as legally
described in Exhibit A hereto as a redevelopment project area
commonly known as the "Dundee/Summit Redevelopment Project
Area" (Redevelopment Project Area) all as provided in the Act;
and
WHEREAS, the City of Elgin, Illinois has previously
created a Tax Increment Financing District consisting of the
same geographic boundaries as provided for herein; and
WHEREAS, the City of Elgin has determined in its best
interests and the interests of the citizens of Elgin to amend
the redevelopment plan thereto; and
WHEREAS, pursuant to Section 11-74 .4-5 of the Act, the
Mayor and City Council of the City of Elgin (Corporate
Authorities) called a public hearing relative to the Amended
Redevelopment Plan and amended Project area as a redevelopment
project area under the Act for August 11, 1999, at the Elgin
City Hall, Elgin, Illinois; and
WHEREAS, due notice in respect to such hearing was given
pursuant to Section 11-74 .4-5 of the Act, said notice being
given to taxing districts and to the Department of Commerce
t �
and Community Affairs of the State of Illinois by certified
mail on June 25, 1999, by publication on July 15, 1999, and
July 22 , 1999, and certified mail to taxpayers within the Area
on July 28, 1999, with the City of Elgin as an owner of
parcels within the Area hereby waiving such mailed notice; and
WHEREAS, the City of Elgin has heretofore convened a
joint review board on July 7, 1999 as required by and in all
respects in compliance with the provisions of P.A. 86-142 ,
effective August 7, 1992 ; and
WHEREAS, the Amended Redevelopment Plan and amended
Project set forth the factors that caused the previously
designated area to be in danger of becoming blighted, and the
Corporate Authorities have reviewed the information concerning
such factors presented at the public hearing and have reviewed
other studies and are generally informed of the conditions in
the previously designed Area that could cause the area to be a
"conservation area" as defined in the Act; and
WHEREAS, the Corporate Authorities have reviewed the
conditions pertaining to lack of private investment in the
Area to determine whether private development would take place
in the Area as a whole without the adoption of the proposed
amended Plan; and
WHEREAS, the Corporate Authorities have reviewed the
conditions pertaining to real property in the Area to
determine whether contiguous parcels of real property and
improvements thereon in the Area would be substantially
benefited by the proposed amended Project improvements; and
WHEREAS, the Corporate Authorities have reviewed the
proposed Amended Redevelopment Plan and amended Project and
also the existing comprehensive plan for development of the
City of Elgin as a whole to determine whether the proposed
Amended Redevelopment Plan and amended Project conform to the
comprehensive plan of the City of Elgin:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ELGIN, ILLINOIS, as follows :
Section 1 . Findings . The Corporate Authorities hereby
make the following findings :
a. The Area is described in Exhibit A attached
hereto and incorporated herein as if set out in full by
this reference . The street location (as near as
practicable) for the Area is described in Exhibit B
attached hereto and incorporated herein as if set out in
full by this reference. The map of the Area is depicted
on Exhibit C attached hereto and incorporated herein as
if set out in full by this reference .
b. There exist conditions that cause the Area to
be subject to designation as a redevelopment project area
under the Act and to be classified as a conservation area
as defined in Section 11-74 .4-3 (b) of the Act .
c . The Area on the whole has not been subject to
growth and development through investment by private
enterprise and would not be reasonably anticipated to be
developed without the adoption of the amended Plan and
amended Project .
d. The Amended Redevelopment Plan and amended
Project conform to the comprehensive plan for the
development of the Municipality as a whole .
e . As set forth in the Amended Redevelopment
Plan and in the testimony at the public hearing, the
estimated date of completion of the amended Project is
December 22 , 2009, and the estimated date of the
retirement of all obligations incurred to finance
redevelopment project costs as defined in the Amended
Redevelopment Plan is December 22 , 2009 .
f . The parcels of real property in the Area are
contiguous, and only those contiguous parcels of real
property and improvements thereon that will be
substantially benefited by the proposed amended Project
improvements are included in the Area.
Section 2 . Exhibits Incorporated by Reference . The
Amended Redevelopment Plan and amended Project, dated July
1999 amending the Redevelopment Plan and Project dated October
1986, which were the subject matter of the public hearing held
August 11, 1999, are hereby adopted and approved. A copy of
the Amended Redevelopment Plan and amended Project is set
forth in Exhibit D attached hereto and incorporated herein as
if set out in full by this reference .
Section 3 . Invalidity of Any Section. If any section,
paragraph, or provision of this ordinance shall be held to be
invalid or unenforceable for any reason, the invalidity or
unenforceability of such section, paragraph, or provision
shall not affect any of the remaining provisions of this
ordinance .
Section 4 . Superseder and Effective Date . All
ordinances, resolutions, motions, or orders in conflict
herewith shall be, and the same hereby are, repealed to the
extent of such conflict, and this ordinance shall be in full
force and effect immediately upon its passage by the Corporate
Authorities and approval as provided by law.
s/ Ed Schock
Ed Schock, Mayor
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Presented: August 25, 1999
Passed: August 25, 1999
Vote : Yeas 6 Nays 0
Recorded: August 26, 1999
Published:
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
1
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Exhibit A
That part of the Southwest Quarter of Section 12 ,
Township 41 North, Range 8 East of the Third Principal
Meridian, described as follows : Commencing at the Northwest
corner of said Southwest Quarter; thence South along the West
line of said Southwest Quarter, a distance of approximately
1, 730 . 00 feet, to a point on the North right of way line of
Summit Street; thence East along said North right of way line,
a distance of approximately 1, 170 . 00 feet, to the point of
beginning; thence South along the West line extended of Lot 8
in Block 24 of Jane R. Kimball ' s Subdivision, a distance of
approximately 495 . 00 feet, to a point that is 132 . 00 feet
South of the South right of way line of Seneca Street and
132 . 00 feet East of the East right of way line of Prospect
Boulevard; thence East on a line perpendicular to the last
described course, a distance of approximately 66 . 00 feet, to a
point on the Westerly line extended of Lot 8 in Wm. H.
Wilcox' s 2nd Addition; thence Northeast along said Westerly
line extended a distance of approximately 70 . 00 feet, to the
Southwest corner of said Lot 8 ; thence Southeast along the
Southerly line extended of said Lot 8, a distance of
approximately 390 . 00 feet, to a point on the Easterly right of
way line of Dundee Avenue; thence Northeast along said
Easterly right of way line, a distance of approximately 745 . 00
feet, to the point of intersection with the North right of way
line extended of Summit Street; thence West along said North
right of way line extended to the point of beginning, all in
the City of Elgin, Kane County, Illinois .
Exhibit B
The street location for the Dundee/Summit Tax Increment
Redevelopment Project Area is located at the southwest corner
of Dundee Avenue and Summit Street along Seneca Street and
St . John.
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Exhibit C
DUNDEE AVENUE T.I .F. DISTRICT
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and St. John.
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PLANNING DEPARTMENT
ELGIN, ILLINOIS 1986
4
Ex
hibit D
DUNDEE/SUMMIT
TAX INCREMENT FINANCE DISTRICT
The attached serves as an amendment to the 1986
DUNDEE/SUMMIT AREA A
REDEVELOPMENT PLAN
Replaces pages 7 through 12 of the 1986
plan with the attached two pages
Planning Department
City of Elgin, Illinois
July, 1999
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DUNDEE/SUMMIT AREA A
REDEVELOPMENT PLAN
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PLANNING DEPARTMENT
CITY OF ELGIN
OCTOBER, 1986
COMMUNITY DEVELOPMENT GOALS
The goals of the Dundee/Summit Area A Redevelopment Project,
pursuant to the Illinois Tax Increment Allocation Redevelopment
Act are to :
1 . Eradicate or mitigate blighting conditions within the
project area.
2 . Increase levels of public and private investment in order
to restore and expand the community' s economy and tax base .
3 . Enhance the marketability of underutilized parcels in the
Dundee/Summit area.
4 . Provide for sound community planning.
5 . Strengthen an existing neighborhood commercial district .
6 . Improve the visual and design quality of the project area
and the community, in general .
7 . Enhance the quality of life in the City of Elgin.
REDEVELOPMENT PLAN OBJECTIVES
The project area is part of a larger commercial district which
is accessible to the surrounding neighborhoods via the local
street system, and to a larger market area by virtue of its
location along arterial streets . Pursuant to the above stated
community development goals, the following objectives will
serve to guide redevelopment within the project area :
Land Use
Appropriate land uses in the redevelopment area can include
upper floor residences, commercial services, retail, medical
and professional offices, institutional uses, and community
facilities .
Streets
Seneca Street and St . John Street should be maintained as local
streets to preserve the interconnections in the neighborhood
street grid.
Streetscape enhancements in the project area should include
shade trees, wider sidewalks, pedestrian scale street lighting,
and street furniture .
DUNSUM.TIF/PZTEXT/1000PL. PR/1400SA. PP/1450DTIF
1
DUNDEE/SUMMIT AREA A
REDEVELOPMENT PLAN
PLANNING DEPARTMENT
CITY OF ELGIN
OCTOBER, 1986
ELGIN CITY COUNCIL
Richard Verbic, Mayor
Edgar Anderson Marlene Shales
Robert Gilliam Donald Waters
Susan Moylan George Van De Voorde
ELGIN TAX INCREMENT COMMISSION
Renard Jackson, Chairman
E. Thomas Aderman Jack Petersen
Raymond Dalton Joan Rich
Denise Hopkins John Walters
CITY ADMINISTRATION
James Cook City Manager
Robert Malm Assistant to City Manager
Patricia Andrews Administrative Assistant
ELGIN PLANNING DEPARTMENT
Roger Dahlstrom Planning Director
Jerold Deering Senior Planner
Thomas Armstrong Planner
Jennifer Becker Planner
Bob Richardson Rehabilitation Specialist
Veronica Bell Planning Aide
Diana McNeil Planning Aide
Sandra Lewis Secretary
Sufia Khan Intern
James Paetsch Intern
DUNDEE/SUMMIT AREA A
REDEVELOPMENT PLAN
TABLE OF CONTENTS
REDEVELOPMENT PLAN
Introduction 1
I . Redevelopment Area Description 3
II . Project Area Eligibility 5
III . Community Development Goals 7
IV. Redevelopment Plan Objectives 10
V . Redevelopment Program 13
VI . Financial Feasibility 18
APPENDIX
ELIGIBILITY REPORT
Introduction V 1
I . Relevant Definitions 1
II . Findings 2
III . Conclusion 5
DUNDEE/SUIMMIT AREA A
REDEVELOPMENT PLAN
INTRODUCTION
Dundee Avenue serves as a gateway to the city and the central
business district. Its appearance and its ability to function as an
arterial street affects the image of the city, as well as the social
character and economic value of the surrounding neighborhoods . Over
the years , Dundee Avenue has evolved into a classic example of the
"commercial strip" - the street in its most uncomfortable form. The
Dundee Avenue commercial strip exhibits a number of problems
contributing to land use conflicts , traffic congestion and a
visually blighted streetscape.
The tracts of land which abut Dundee Avenue were originally
developed with residential uses . Improving transportation
technologies and a growing population in the surrounding
neighborhoods combined to foster an increased demand for commercial
development along the street . Residents began to move away from
Dundee Avenue as homes were converted to business uses or were
demolished to make way for new commercial development . However, in
most areas of the corridor, the transition to a commercial
development pattern was incomplete due to the continued existence of
residentially platted lots . In general, the transition from
residential to commercial land use predated the adoption of
contemporary design standards regulating setbacks , screening ,
off-street parking and graphics . These conditions have contributed
to a general state of decline along Dundee Avenue .
The City of Elgin has recognized the need for redevelopment along
the Dundee Avenue commercial strip in its comprehensive and special
area planning efforts. The properties located at the intersection
of Dundee Avenue with Summit Street are designated in the Elgin
Comprehensive Plan as "area commercial center" . This land use
designation recognizes the opportunity to establish a cohesive
commercial development from which daily convenience, commercial and
professional services could be provided to an area currently in need
of such a facility.
In July of 1986, the Elgin City Council adopted the Dundee Avenue
Business District Plan - phase I . Adoption of the plan was the
first step in implementing conservation, rehabilitation and
redevelopment strategies along the Dundee Avenue corridor and in the
surrounding neighborhoods . The City of Elgin, having designated the
Dundee Avenue corridor as a business district, may acquire through
negotiation or exercise of the power of condemnation, real and
personal property for redevelopment. One mechanism for financing
such a project is tax increment financing.
The Tax Increment Allocation Redevelopment Act, sometimes referred
1
to as "the Act" , permits its municipalities to improve eligible
"blighted" or "conservation" or "industrial park conservation" areas
in accordance with an adopted redevelopment plan. The municipal
cost for such improvements may be financed over a period of up to
twenty years by the real estate and sales tax revenue increases
generated within the project area. Under the Act the state found
and declared:
" . . . that the use of incremental tax revenues derived from
the tax rates of various taxing bodies in redevelopment
project areas for the payment of redevelopment project
costs is of benefit to said taxing districts for the
reasons that taxing districts located in redevelopment
project areas would not derive the benefits of an
increased assessment base without the benefits of tax
increment financing. . . ".
The Tax Increment Allocation Redevelopment Act stipulates procedures
which must be followed for the establishment of a Tax Increment
Financing (TIF) District . Illinois statutes require such items as
the designation of a redevelopment project area , determination of
the eligibility of the redevelopment project area, development of a
redevelopment plan, and a description of the redevelopment project
and its relationship to community development goals and the
redevelopment plan objectives.
The purpose of this report is to establish the eligibility and
feasibility of the Dundee / Summit Area A Redevelopment Project for
tax increment financing designation, and to present a plan and
guidelines for its redevelopment.
2
I
I . REDEVELOPMENT AREA DESCRIPTION
The Dundee / Summit Redevelopment Project Area A boundary is
graphically displayed on Figure 1 . The general boundary of the
Dundee / Summit Redevelopment Project Area A is described as follows :
Beginning at the intersection of Dundee Avenue and Summit
Street, then West along Summit Street to a point that is
approximately midblock between St. John Street and Prospect
Boulevard; then South from from the midblock point, across
Seneca Street, to a point that is approximately midblock
between Seneca Street and Cherry Street; then Northeast ,
parallel with Dundee Avenue , to a point that is
approximately one-half the distance between the last
described point and Seneca Street; the Southeast to a point
on Dundee Avenue ; then Northeast to the point of beginning.
The Dundee / Summit Redevelopment Project Area A is legally described
as follows :
That part of the Southwest Quarter of Section 12, Township
41 North, Range 8 East of the Third Principal meridian,
described as follows : Commencing at the Northwest corner
of said Southwest Quarter ; thence South along the West line
of said Southwest Quarter, a distance of approximately
1 , 730.00 feet, to a point on the North right of way line of
Summit Street; thence East along said North right of way
line, a distance of approximately 1 , 170. 00 feet, to the
point of beginning; thence South along the West line
extended of Lot 8 in Block 24 of Jane R. Kimball ' s
Subdivision, a distance of approximately 495. 00 feet, to a
point that is 132.00 feet South of the South right of way
line of Seneca Street and 132. 00 feet East of the East
right of way line of Prospect Boulevard; thence East on a
line perpendicular to the last described course, a distance
of approximately 66. 00 feet, to a point on the Westerly
line extended of Lot 8 in Wm. H. Wilcox ' s 2nd Addition;
thence Northeast along said Westerly line extended a
distance of approximately 70. 00 feet , to the Southwest
corner of said Lot 8; thence Southeast along the Southerly
line extended of said Lot 8, a distance of approximately
390. 00 feet , to a point on the Easterly right of way line
of Dundee Avenue ; thence Northeast along said Easterly
right of way line, a distance of approximately 745. 00 feet ,
to the point of intersection with the North right of way
line extended of Summit Street; thence West along said
North right of way line extended to the point of beginning,
11 all in the City of Elgin, Kane County, Illinois.
3
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PROPOSED
DUNDEE AVENUE T.I.F. DISTRICT
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PLANNING DEPARTMENT
ELGIN, ILLINOIS 1986
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II . PROJECT AREA ELIGIBILITY .
The Dundee/Summit Area A Redevelopment Project encompasses
approximately 8. 32 acres of land, including street rights of way, 32
parcels and 29 structures, of which 25 (86%) are 35 or more years
old. Existing land uses include retail business, commercial
service, residences, an institutional use, public utilities and
vacant property (see Figure 2) .
The project area meets the criteria for a "blighted area" (which is
improved) as defined by Illinois Revised Statutes, Chapter 24,
Section 11 -74. 4-3 (a) . Accordingly, the entire area is eligible for
redevelopment under the Tax Increment Allocation Redevelopment Act .
A complete eligibility report is included in the Appendix.
5
,
PROPOSED
,
II
DUNDEE AVENUE T. I. F. DISTRICT
SUMMIT STREET
`, 359 378 •:Ei
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SENECA STREET
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EXISTING LAND USE
t: :1 RESIDENTIAL
1\\\\A COMMERCIAL
INSTITUTIONAL
t 31 STRUCTURE
kV ) VACANT STRUCTURE
I 1 VACANT LOT
,
BLOCK # # OF PARCELS # OF STRUCTURES
378 13 11
362 11 10
359 8 8
TOTAL 32 29
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PLANNING DEPARTMENT
ELGIN, ILLINOIS 1986
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Building Design/Location
New commercial buildings should be either traditional in their
architectural character, or be a contemporary expression of
traditional styles and forms, respecting simply the scale,
proportion and character of the neighborhood.
Off Street Parking
Where practicable, off street parking lots should be located to
the side or rear of the buildings served, and not between the
buildings and the street .
DUNSUM.TIF/PZTEXT/1000PL. PR/1400SA. PP/1450DTIF
•
III. COMMUNITY DEVELOPMENT GOALS
PURPOSE
The purposes of the Dundee / Summit Area A Redevelopment Project,
pursuant to the Tax Increment Allocation Redevelopment Act are to:
1 . Eradicate or mitigate blighting conditions within the project
area;
2. Increase levels of public and private investment in order to
restore and expand the community 's economy and tax base ;
3 . Enhance the marketability of underutilized parcels in the Dundee
/ Summit area;
4. Provide for sound community planning;
5. Provide for the placement of an area-level retail shopping
center in a portion of the community presently lacking such a
facility;
6. Provide for additional recreation space in an area of the
community presently lacking adequate facilities ;
7. Improve the visual and design quality of the project area and
the community in general ; and
8 . Enhance the quality of life in the City of Elgin.
PLANNING GOALS , POLICIES AND OBJECTIVES
The above purposes are consistent with goals, objectives and
policies contained in the Elgin Comprehensive Plan and the Dundee
Avenue Business District Plan - Phase I. Pertinent goals,
objectives and policies include the following:
Elgin Comprehensive Plan
Economic Growth and Development
Goal : Strive for both a sound tax base and a strong diversified
local economy providing economic opportunity for all Elgin
residents.
Objective : Facilitate the retention and expansion of existing
commerce and industry.
Policies: Utilize a variety of financial incentives to retain and to
7
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encourage the expansion of business and industry currently located
in Elgin.
The City of Elgin and its technical staff must become more actively
involved in the economic development efforts of the comm
unity.
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Develop a program to assist in the relocation within Elgin of
inappropriately located businesses and industries to sites more
suitable from a transportation, operations and land planning
perspective.
Parks and Open Space
Goal : To provide a park and open space system which meets the basic
recreational needs of the entire community, including both present
and future residents, and to maintain this system in accordance with
acceptable community standards so as to contribute to the overall
quality of life in Elgin.
Objective : To provide a park and open space system which is
distributed geographically throughout the city in a manner which
makes these facilities convenient, available and accessible to the
residents .
Policies : Utilize redevelopment opportunities as a method for land
banking and for introducing and expanding open space and
recreational facilities in older, high density neighborhoods where
the availability of such facilities is deficient.
Coordinate the development of park and open space facilities with
other municipal improvement efforts within neighborhoods.
Transportation System
Goal : An integrated, efficient and responsive transportation system
that meets the travel requirements of all people and goods.
Objective : To resolve present and future problems which cause
congestion and ensure ease of movement on the existing thoroughfare
network.
Policy : Continue intersection and thoroughfare improvements which
allow the thoroughfare network to function at a higher level of
capacity.
Objective: To preserve the integrity of all arterial and collector
streets by establishing a proper relationship between land use and
street function.
Policies : Develop a system of street modifications and closures at
the neighborhood level , to reinforce the local street function as
well as deal with problems of parking, traffic, open space, and
bicycle and pedestrian movement.
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Regulate land use access from arterial and collector streets in a
manner that allows these streets to fulfill their transportation
function.
Land Use
Goal : The preparation of a land use plan and decision making process
which establishes desired relationships among the uses of land,
based on environmental factors and criteria of efficiency,
compatibility, harmony, function and scale, as well as provides a
sound basis for the long-term growth of the community.
Objective : Eliminate or alleviate improper relationships among land
uses within the built portion of the city.
Policy: Pursue the redevelopment of underutilized areas that contain
development potential . Schedule public capital improvements to
coincide with neighborhood improvement efforts .
Objective : Maintain the essential character of older neighborhoods .
Policies : The City of Elgin, together with other concerned art '
shouldparties,
assemble underutilized land and make it available for
development as a P basis for improving the quality of existing
neighborhood environments .
Establish as a priority the maintenance of the physical conditions
and livability of the community ' s older neighborhoods.
Objective : Encourage innovative approaches to land development.
Policy : Encourage innovative development design formats and, utilize
incentives such as transferable development rights and tax increment
financing for promoting the development of vacant and underutilized
land in the city, as well as to encourage innovative mixed use
projects .
Dundee Avenue Business District Plan - Phase I
Goals : Encourage development which contributes positively to the
visual and urban design quality of Dundee Avenue .
Improve the quality and residential character of the neighborhoods
which surround the Dundee Avenue business corridor.
Resolve problems which cause congestion on Dundee Avenue and ensure
ease of traffic movement on the street.
9
IV. REDEVELOPMENT PLAN OBJECTIVES
Pursuant to community-wide and Dundee Avenue Business District
development goals , the proposed land use plan for the redevelopment
project area is shown in Figure 3. An entirely new land use pattern
is proposed for the Dundee/Summit area that will eliminate obsolete,
underutilized and substandard structures; provide for sound,
contemporary urban design; and encourage private sector reinvestment
and a subsequent increase in assessed valuation. The following
objectives will serve to guide redevelopment within the project
area.
Function : Completion of the redevelopment project will serve to:
1 . Strengthen an existing business district by creating a
neighborhood oriented retail development .
2. Provide adequate off-street parking facilities to accommodate
shoppers and employees.
3. Increase recreation and open space in the central Elgin
neighborhood.
Quantity and Quality : It is the objective of the city to encourage
new development in the following quantities :
1 . 60, 000 to 75, 000 square feet of retail space .
2. 300 to 350 off-street parking spaces.
3. 30, 000 square feet of public open space .
-
Specific retail activities should be limited to those providing
daily convenience and commercial services to nearby residential
neighborhoods. The quality of design and maintenance shall be
respectful of the highly visible location and the surrounding
residential neighborhoods .
Physical Arrangement : The following objectives should guide the
location of and relationships between buildings , land uses and
supporting facilities :
1 . New commercial buildings should be oriented towards Dundee
Avenue and the Dundee / Summit intersection, and shall be
located no closer than twenty (20) feet to any public right of
way.
2. Building mass and height should be compatible with existing
•
buildings and topography in the area.
3. Loading facilities should be screened from the public view.
10
d
Access and Circulation : Access and circulation should conform to
the following design standards :
1 . Access to the project area shall be limited to two (2) curb cuts
each ( including service drives ) on both Dundee Avenue and Summit
Street.
2. No curb cuts shall be located closer than two hundred fifty
(250) feet from the Dundee / Summit intersection.
3 . Direct access shall be provided to off-street parking
facilities, and internal vehicle circulation shall be restricted
to reinforce the use of drive aisles.
Parking Facilities : Off-street parking facilities shall be
provided to serve the new development. Such parking facilities, at
a minimum, shall be consistent with the standard requirements of the
Off-Street Parking Ordinance:
1 . Off-street parking areas shall be screened with trees and
shrubs . Interior landscape areas shall be provided in all
parking areas containing two (2) or more parking rows.
2. Trees planted in setback areas fronting Dundee Avenue and Summit
Street shall be located in such a manner as to create a
tree-lined character for the streets .
3. At least four (4) different varieties of trees and four (4)
different varieties of shrubs shall be included in the landscape
design. Landscaping shall include plant materials which provide
attractive fall and winter color.
Amenities : The following amenities shall be included to enhance
the design quality of the project :
1 . Foundation plantings shall be provided to enhance building
facades visible from Dundee Avenue and Summit Street .
2. Uniform and compatible graphics shall be provided within the
project area conconsistent with the standard requirements of the
Community Graphics Ordinance.
3. Special attention shall be given to night lighting throughout
the project area for special effects as well as public safety .
11
SUMMIT
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. 466•46
. ,
`del ./ RETAIL SPACE : 56,600 SO. FT.
. it
9 PARKING : 326 SPACES
e` �p SCALE 1 : 40
�'°1% "
PLANNING DEPARTMENT
CITY OF ELGIN
OCTONEA, IIII
V. REDEVELOPMENT PROGRAM
Acquisition and Clearance - The Dundee / Summit Redevelopment
Project contains approximately 8. 32 acres of land. The plan will
require the public acquisition of approximately 5. 70 acres of real
property at a cost of approximately $1 , 844, 330. The remaining
acreage is located within public rights of way. It is recognized
that the public commitment regarding the availability of land for
redevelopment projects may require the exercise of condemnation
power. Land assembly cost estimates are based on a factor of three
times present assessed valuation levels with a 30% contingency. It
is anticipated that any increases in land acquisition costs over
time will be offset by corresponding increases in the value of
properties after redevelopment, and therefore, the TIF revenues
available for redevelopment project activities.
Plan implementation will require the demolition of 29 structures and
clearance of 32 individual parcels of land. Cost estimates for
these clearance activities are set at $120, 000.
Generally, acquisition and clearance activities will be scheduled to
coincide with redevelopment efforts so that structures and sites do
not remain vacant for extended periods of time . Properties that are
acquired in advance of redevelopment may be made available on a
temporary basis for public or private revenue producing uses. Any
revenues generated from such temporary use will accrue to the
redevelopment fund. All acquisition and clearance activities are to
be funded through TIF related bond obligations .
Relocation - The project will require the relocation of
approximately 6 businesses , 15 homeowner households and 27
residential tenant households presently occupying the redevelopment
project area site . The city will provide relocation assistance to
all displacees with policies borrowing the. most desirable features
from federal relocation procedures. These costs are estimated at
approximately $174, 000. All relocation activities are to be funded
through TIF related bond obligations.
Land Disposition - Other than that required for planned public
improvements , land acquired for the implementation of the Plan shall
be disposed of through competitive negotiation or the submission of
responses to a Request for Proposal (RFP) . Expected revenues from
the disposition of these properties are set at approximately
$124, 000 or $0. 50 per square foot.
Physical Improvements - Supportive physical improvement efforts
will focus on subsurface site preparation work associated with the
relocation of public storm and sanitary sewers under the Seneca
Street right of way, the improvement of the existing Dundee / Summit
intersection radius, the development of a buffer park along the
western boundary of the project area; and the closure of Seneca
13
' Street west of the project area and St. John Street north of the
project area. All costs for public improvement work shall be funded
through TIF related bond obligations.
' Nature and Term of Obligations to be Issued - The TIF bond
obligations shall be issued for a term not to exceed 20 years at a
currently anticipated interest rate of 10%. It is likely that these
bonds will be issued as taxable General Obligation Bonds in order to
achieve consistency with federal tax law and to access the most
advantageous interest rate. A tax exempt bond issue may be used for
' project funding if permitted by current law.
Assessed Value - Presently, assessed values of real estate in
Dundee Avenue Redevelopment Area A are set at $472, 905.
The Redevelopment Plan contemplates that developer will construct a
retail shopping area consisting of not less than 66, 500 square feet
gross floor area at a value not less than $2, 327, 500. The Elgin
Township Assessor is expected to place an appraised value on the
buildings consistent with the value shown above, consistent with a
land value of not less than $3. 70 per square foot ($918, 680) and
site improvement values equivalent to $0. 90 per square foot on
parking lot (site) improvements ($60,438) . Historically, over the
past 40 years, real estate property values in the Elgin area have
escalated at an average annual rate of 6. 0%. This project phase is
expected to represent a continuation of that basic trend with a
discounted (4 .0%) escalation rate due to location within a
redevelopment area .
Estimated Redevelopment Project Costs - Redevelopment Project Costs
1 mean and include the sum total of all reasonable or necessary costs
incurred or estimated to be incurred, and any such costs incidental
to a redevelopment plan and a redevelopment project. Such costs
include, without limitation, the following:
1 . Costs of studies , and surveys , development of plans , and
specifications, implementation and administration of the
redevelopment plan including but not limited to staff and
professional service costs for architectural , engineering,
legal , marketing, financial , planning or other services,
provided however that no charges for professional services may
be based on a percentage of the tax increment collected;
2. Property assembly costs, including but not limited to
acquisition of land and other property, real or personal, or
rights or interests therein, demolition of buildings, and the
clearing and grading of land;
3. Costs of rehabilitation, reconstruction or repair or remodeling
of existing buildings and fixtures ;
4. Costs of the construction of public works or improvements;
5. Costs of job training and retraining projects ;
14
6. Financing costs , including but not limited to all necessary and
incidental expenses related to the issuance of obligations and
which may include payment of interest on any obligations issued
hereunder accruing during the estimated period of construction
of any redevelopment project for which such obligations are
issued and for not exceeding 36 months thereafter and including
reasonable reserves related thereto;
7. All or a portion of the taxing district ' s capital costs
resulting from the redevelopment project necessarily incurred or
to be incurred in furtherance of the objectives of the
redevelopment plan and project, to the extent the municipality
by written agreement accepts and approves such costs;
8. Relocation costs to the extent that the municipality determines
that relocation costs shall be paid or is required to make
payment of relocation costs by federal or State law;
9. Payment in lieu of taxes ;
10. Certain costs of job training, advanced vocational education or
career education, including but not limited to courses in
occupational , semi-technical or technical fields leading
directly to employment, incurred by one or more of the taxing
districts;
11 . Interest costs incurred by a redeveloper related to the
construction , renovation or rehabilitation of a redevelopment
project provided that :
A. such costs are to be paid directly from the special tax
allocation fund established pursuant to the Act; and
B . such payments in any one year may not exceed 30% of the
annual interest costs incurred by the redeveloper with
regard to the redevelopment project during that year;
C. if there are not sufficient funds available in the special
tax allocation fund to make the payment pursuant to this
paragraph ( 11 ) then the amounts so due shall accrue and be
payable when sufficient funds are available in the special
tax allocation fund; and
D. the total of such interest payments incurred pursuant to the
Act may not exceed 30% of the total redevelopment project
costs excluding any property assembly costs and any
relocation costs incurred pursuant to the Act.
Payment in Lieu of Taxes - No payments in lieu of taxes are
anticipated for this project.
Development Schedule - Plan activities are expected to begin in the
Spring of 1987. Initial efforts will concentrate on site
15
II
1
acquisition with site work and building construction to follow as
site availability permits . Business opening would be anticipated
for Spring of 1988. It is recognized that adjustments to this
schedule may be necessary. However, inasmuch as State Statute
1 limits the term of a TIF redevelopment plan to 23 years and TIF
related bond issues to 20 years, Plan activities should be initiated
within 3 years of ordinance adoption in order to utilize a 20 year
I bond issue (see E above) . The estimated time of completion for the
redevelopment project is five (5) years ending on December 1 , 1991
and under no circumstances shall the project extend beyond December
9, 2009.
Conformance with Statutes and Adopted Plans - The Dundee / Summit
Area A Redevelopment Plan has been developed in conformance with the
1 Tax Increment Allocation Redevelopment Act and all State Statutes
applicable thereto . In addition, the plan and project conform with
the City of Elgin Comprehensive Plan adopted June 6, 1983 for the
1 development of the city as a whole, and the Dundee Avenue Business
District Plan - Phase I adopted July 14, 1986 .
Amendment Provision - This Redevelopment Project Area Plan may be
1 amended pursuant to provisions of the Tax Increment Allocation
Redevelopment Act.
1 Findings of Need for Tax Increment Financing - Pursuant to State
Statutes , Sec 11 -74. 4-3f, the City Council of the City of Elgin
makes the following findings :
I1 . The redevelopment project area on the whole has not been subject
to growth and development through investment by private
enterprise and would not reasonably be anticipated to be
Ideveloped without the adoption of the redevelopment plan ;
2. The redevelopment plan and project conform to the comprehensive
1 plan for the development of the community as a whole;
3. The estimated dates of completion of the redevelopment project
and retirement of the obligations incurred to finance
1 redevelopment project costs shall not be more than 23 years from
the adoption of the ordinance approving the redevelopment
project area ;
1 4. The redevelopment project area would not reasonably be developed
without the use of incremental revenues from taxes paid by
retailers and servicemen on transactions at places of business
located within the associated redevelopment project area
pursuant to the Municipal Retailer ' s Occupation Tax Act, the
Municipal Service Occupation Tax Act, the Retailer ' s Occupation
1 Tax Act, the Use Tax Act, the Service Use Tax Act , and the
Service Occupation Tax Act and;
1 5. The incremental revenues from the Municipal Retailer ' s
Occupation Tax Act , the Municipal Service Occupation Tax Act,
the Retailer ' s Occupation Tax Act, the Use Tax Act, the Service
1 4
' DUNDEE/SUMMIT AREA A
REDEVELOPMENT PLAN
ELIGIBILITY REPORT
INTRODUCTION
The Tax Increment Allocation Redevelopment Act permits
municipalities to improve eligible "blighted" or "conservation" or
"industrial park conservation" areas in accordance with an adopted
redevelopment plan.
The Act specifies procedures which must be adhered to in designating
9 9
a redevelopment project area. One of the procedures is to determine
' the eligibility of the area. A redevelopment project area is
defined as :
' "an area designated by the municipality, which is not less
in the aggregate than 1 -1 /2 acres and in respect to which
the municipality has made a finding that there exist
conditions which cause the area to be classified as an
industrial park conservation area or a blighted area or a
conservation area, or a combination of both blighted areas
or conservation areas. "
To determine eligibility of the Dundee/Summit Area A Redevelopment
Project, the Elgin Planning Department has conducted field and
office surveys of the redevelopment project area, resulting in the
following findings and the conclusion that the area qualifies as a
' "blighted area" (which is improved) .
RELEVANT DEFINITIONS
Blighted Area : Any improved area within the boundaries of a
redevelopment project area located within the territorial limits of
' the municipality where , if improved, industrial , commercial and
residential buildings or improvements, because of a combination of 5
or more of the following factors : age; dilapidation; obsolescence;
' deterioration; illegal use of individual structures; presence of
structures below minimum code standards; excessive vacancies ;
overcrowding of structures and community facilities; lack of
ventilation, light or sanitary facilities; inadequate utilities;
excessive land coverage; deleterious land use or layout ;
depreciation of physical maintenance; lack of community planning, is
detrimental to the public safety, health, morals or welfare.
_Age : The advanced age of buildings affect their condition, adaptive
reuse and /or real estate value. Buildings that are at least 35
years old are considered to be advanced in age .
1
•
I
Dilapidation : Buildings which exhibit extensive defects in primary
I (structural ) and secondary building components. These defects
generally result from advanced deterioration. Evaluation of
dilapidation was accomplished through an exterior building condition
survey.
Obsolescence : The condition of being or becoming outmoded for uses
for which the building was originally designed and/or for uses which
are considered viable at this location.
Deterioration : The process of buildings becoming poorer in quality
I and/or value due to age and deferred maintenance. Evaluation of
deterioration was accomplished through an exterior building
condition survey.
I Overcrowding of Structures and Community Facilities : The condition
whereby the number of persons occupying habitable rooms exceeds code
requirements, and public park and recreation facilities are not
adequate to meet the needs of the population served.
Inadequate Utilities : Utilities cannot accommodate existing
I development and could contribute to conditions which adversely
impact the public health, safety and welfare .
Excessive Land Coverage : Land coverage of parcels improved with
' principal structures is excessive with respect to contemporary
building setback and off-street parking requirements.
Deleterious Land Use or Layout : Land uses and/or parcelization
which has had a long term harmful effect on the maintenance of
property, investment , reinvestment, development or redevelopment.
' Depreciation of Physical Maintenance : A decrease in the value of
property through deterioration resulting from the lack of normal
physical maintenance . Such depreciation contributes to building
' deterioration, the lack of site improvements and/or maintenance,
code violations and the devaluation of the property . Property
devaluation is documented by changes in assessed valuation.
' Lack of Community Planning : The absence of a planning program
directed toward maintaining and enhancing the social , economic and
physical viability of an area.
Principal Structures : Structures located on a parcel or parcels in
which the principal use is located. A principal structure is
' serviced with major mechanical systems, and is enclosed by
structural walls, a roof and a foundation.
' II . FINDINGS
Project Area Size : 8. 32 acres
2
1
1
1 Project Area Description : Block 378 and portions of blocks 359 and
362; portions of the Dundee Avenue, Seneca Street , Summit Street and
1 St. John Street rights of way.
Aqe : Of the 29 principal structures located in the redevelopment
project area, 25 ( 86%) are over 35 years of age . A block by block
ianalysis follows :
Block Buildings > 35 years Total Buildings
1 359 8 8
362 8 10
378 9 11
Total 25 29
I Dilapidation : Of the 29 principal structures , 15 (52%) have been
classified as dilapidated by an exterior building condition survey.
A block by block analysis follows :
IBlock Dilapidated Buildings Total Buildings
359 3 8
I 362 6 10
378 6 11
ITotal 15 29
Obsolescence : Of the 29 principal structures, 13 (45%) are in
residential use and located on parcels zoned for business use . The
I residential use of these structures may continue indefinitely as
lawful nonconforming uses under a business zoning classification .
The existing structures are not readily adaptable to business use in
I that the parcels on which they are located are small in size and
lack sufficient space to provide required off-street parking.
Accordingly, the existing structures have been found to be obsolete
Ifor business use , which is considered viable at this location.
Deterioration : Of the 29 principal structures, 22 ( 76%) have been
classified as deteriorating or dilapidated by an exterior building I
Icondition survey. A block by block analysis follows :
Block Deteriorating Buildings Total Buildings
I359 5 8
362 8 10
1 378 9 11
Total 22 29
I Overcrowding of Structures and Community Facilities : The
redevelopment project area is contained within a neighborhood
strategy area (NSA ) which includes 6. 8% of the total number of
Idwelling units in the city and 7. 6% of the city population.
3 1
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i
Approximately 54% of the dwelling units in the NSA are renter
occupied. Total population in the NSA is 4, 832. There are two
vest-pocket parks in the NSA intended to serve 500 to 2500 persons.
These parks contain 0. 5 and 0. 16 acres . Another playlot, located to
the north of the NSA, serves both the strategy area and the
northeast neighborhood.
Inadequate Utilities : The capacity to service the redevelopment
project area is currently adequate . Redevelopment will require the
vacating and closing of streets, intersection improvements at Dundee
Avenue and Summit Street, and the relocating of sewer, water and
electric lines.
Excessive Land Coverage : The redevelopment project area was
subdivided in the middle to late 1800 ' s . The parcels were developed
with residential and commercial uses prior to the adoption of
{ contemporary zoning standards regulating building setbacks and
off-street parking. As a result, land coverage of these parcels
improved with principal structures is excessive .
Deleterious Land Use or Layout : The redevelopment project area was
subdivided into lots intended for residential use. Unless they can
be combined, the small lots do not lend themselves to commercial
development. The land use pattern and fragmented ownership of
parcels often become effective barriers to privately financed
redevelopment efforts .
Depreciation of Physical Maintenance : The total equalized assessed
valuation of parcels located in the redevelopment project area
increased $144, 286 ( 31 %) between 1971 and 1985. This figure is
skewed by the establishment of a church (1983) on one parcel and its
subsequent tax exempt status. When this parcel is factored out from
all calculations , the equalized assessed valuation increased
$167, 046 ( 36%) between 1971 and 1985, (an average annual increase of
2.4%) . In contrast, real estate property values in the Elgin area
have increased at an average annual rate of 6% over the past 40
years. The depreciation of physical maintenance is further
documented in the results of the exterior building survey which
classified 22 of the 29 principal structures as deteriorating or
dilapidated. Results of the exterior building condition survey
indicate inadequate building and grounds maintenance which has
contributed to a significant number of structures being listed as
deteriorating or dilapidated.
•Lack of Community Planning : The subdivision and the development of
the redevelopment project area was accomplisahed without the benefit
of community planning. The current residential and commercial strip
pattern of development is inconsistent with the goals, policies and
objectives of the Elgin Comprehensive Plan (1983) which designates
the redevelopment project area as an "area commercial center. " The
area has been targeted for redevelopment in the Dundee Avenue
Business District Plan - Phase I (1986) . The goal is to construct a
retail development to serve the central and northeast Elgin
neighborhoods .
4
111
I
III . CONCLUSION
The Dundee / Summit Redevelopment Project Area meets the criteria
for a "blighted area" (which is improved) . Accordingly, the entire
area is eligible for redevelopment under the Tax Increment
Allocation Redevelopment Act.
I
I
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1
5
PROPOSED
_ DUNDEE AVENUE T.I.F. DISTRICT
I f-i 11 1 1 1 1 i 1 Milli' <� 1 -fit _� �all'�mo,. , 1
"T— ! LJ1 : WAND-
i jr- "--' 1.1-1 -11 I 1 I -- Y ‘411 ' ilin- -.
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' -TA muniliEVATZI :IN — i ' ' - - - - 1— 7-
dillwA".. wall"
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,171._ -_. I --i* sq --IP- _ ,li■�t 111111111 -=1 - IN ! `"
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PLANNING DEPARTMENT
ELGIN, ILLINOIS 1986
I
11
6
PROPOSED
DUNDEE AVENUE T.' I. F. DISTRICT
SUMMIT STREET
-009
-003 -001 -002 -003 0 0 -007
-010 Z o o -008 i
I359 -° 11 0 378 (
-012
-012
008 -009 -010 -011 J�
-007 -008 Q.
-013 -013
STREET
SENECA -
-011
O -013
-006 _020 -010 ..� -014
-005 362 /
-015 /��
I
q o
J
-021 O
I
I BLOCKS AND PARCELS
I
I
I
I I
PLANNING DEPARTMENT
I ELGIN, ILLINOIS 1986
I 7
PROPOSED
Il
DUNDEE AVENUE T. I. F. DISTRICT
I SUMMIT STREET
1
359 378:• : \• 4X -.7t:.::.:::.:•i.::..::.1.•.:i::••.•.y:::.:••••.::,:.••.•::.:•,
� >::. n
• ,.,fit . :, :<..:..
f.
;;. --- ----• ........ .. ... ........ STREET
SE NEC A ` .
362` �� !`
Q
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I
EXISTING LAND USE
;. RESIDENTIAL
I\\\\y COMMERCIAL
I INSTITUTIONAL
t71 STRUCTURE
ILVL VACANT STRUCTURE
C] VACANT LOT
I
BLOCK # # OF PARCELS # OF STRUCTURES
I378 13 11
362 11 _ 10
I359 8 8
TOTAL 32 29
PLANNING DEPARTMENT
ELGIN, ILLINOIS 1986
I
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PROPOSED
DUNDEE AVENUE T.I .F. DISTRICT
l
COwmD�♦II . 111 I T1lI1t1 11111 V�fla.
— 1,_- , f L IWAri . /.
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r.r..•$o^ Apt Q" ,
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--1 -1- "I— — i mr- in raW- co . _
- i'; MIII 194i n 11- mi•-.. : c i-- / j,.____._° - -
_ 417::,_,,jo H _ ' i . ..4. . R., // // -: E
1 i hi- rairri w 13 . "ItjfeMi ig 4
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Adl‘
PLANNING DEPARTMENT
ELGIN, ILLINOIS 1986
I
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i MIN i - i M IIIIIF MIL
SUMMIT STREET
•• e00 ep .co_c0=-0=0=-06 �ee'�•--owl �eogo • :���0 ado0
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3.000
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If
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CONCEPT PLAN
� 1� lid' / FOR
(le
O O Q �°, REDEVELOPMENT AREA "A"
0 0
�, RETAIL SPACE : 66,600 SO. FT.
O`ilksi, 'ill
I PARKING : 826 SPACES
eii,i0 SCALE 1 : 40
14/40.4:4%/Iv
n.
PLANNING DEPARTMENT
CITY OF ELa1M
OCTOEER. Ins
IV
I
Use Tax Act, and the Service Occupation Tax Act shall be
exclusively utilized for the development of the redevelopment
project area.
I
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VI . FINANCIAL FEASIBILITY
The financial feasibility of any tax increment financing (TIF)
effort is based upon the ratio of public costs to private
investment. More specifically, the level of private investment must
be sufficient to produce real estate and sales tax revenue increases
equal to the debt service costs associated with the issuance of TIF
related bonds to fund supportive public improvements. This
following analysis attempts to explore, in a preliminary fashion,
the feasibility of TIF for the Dundee/Summit Area A Redevelopment
Plan. The validity of the Tax Increment Potential is based upon the
following assumptions and considerations :
1 . Estimates of public costs for off-site improvements are
generally correct and will be limited to the following : the
relocation of storm and sanitary sewer lines presently under the
Seneca Street right of way, the radius improvement at the
southwest corner of the Dundee Avenue / Summit Street
intersection, the closures of Seneca Street west of the project
area and St . John Street north of Summit Street; and finish
grading, berm and landscaping of the open space buffer to the
west of the commercial development.
2. The developer will construct a neighborhood shopping center
containing approximately 66, 500 square feet with a value of
$35. 00 per square foot.
3. The Elgin Township assessor will place an appraised value on the
buildings consistent with the referenced construction value and
consistent with a land value of not less than $3. 70 per square
foot and site improvement values equivalent to $0. 90 per square
foot on parking lot (site) improvements .
4. There will be no substantial reinvestment in the project area
properties in the immediate future such that there would be any
upward reassessment by the Township assessor ' s office previous
to the assembly and receipt of a "Certified List of Property
Owners and Evaluations" .
5. The city will provide the developer with a cleared site of
approximately 248, 292 square feet. Site acquisition costs are
estimated at 3 times the assessed valuation levels ($472, 905 x 3
= $1 , 418, 715) with a 30% contingency factor ($1 ,418, 715 x 1 . 30 =
$1 , 844, 330) .
6. Site clearance costs are estimated at $120, 000.
7. Consulting costs are limited to those associated with bond
issuance and legal review.
8. Relocation cost estimates are based on maximum per unit amounts.
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of $4, 000, $2, 000 and $10, 000 for 15 homeowners, 27 residential
tenants and 6 businesses; respectively.
9. The developer will purchase the project area site at a cost of
$0. 50 per square foot.
10. The developer will lease the entire square footage of the
development to uses generating retail sales tax. Anticipated
uses will be of a type and intensity sufficient to generate an
average $100. 00 per square foot of sales subject to retail sales
tax.
11 . The TIF bonds will be issued for a 20 year term at an interest
rate of 10%.
12. Historically, over the past 40 years, real estate property
values in the Elgin area have escalated at an average annual
rate of 6. 0%. This feasibility report assumes a continuation of
that basic trend with a discounted (4. 0%) escalation rate due to
the project ' s location in a redevelopment area.
Based upon the preceding assumptions and considerations , it would
appear that the Dundee / Summit Area A Redevelopment Plan can meet
the threshold of feasibility. This threshold is the balance between
the estimated project costs and projected revenues and is
represented as the TIF bond coverage ratio. Typical or average bond
coverage ratios required by investors change from time to time,
however, a TIF revenue bond commonly requires bond coverage ratio in
the 1 . 50 to 2. 00 range. A bond coverage ratio is unnecessary if the
TIF bond issuance is carried out as a General Obligation (GO) bond.
This plan assumes a taxable GO issuance and includes a bond coverage
ratio figure as a contingency factor. An acceptable bond coverage
ratio appears likely with only a modest annual increase in project
property valuation and subsequent tax revenue .
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II TAX INCREMENT POTENTIAL
Dundee Ave. Area A
1 PROJECT REVENUES Quadrennial Projections
1 Existing AV 472,905
il2 Existing RE Taxes 36,487 36,487 36,487 36,487 36,487
3 Sales Tax Estimate 90,144 90,144 90,144 90,144 90,144
II 4 Total Private Development 2,407,938
5 Land Value 918,680
6 Estimated Market Value 3,326,618 3,891,673 4,552,706 5,326,023 5,760,626
a 7 Estimated AV 8 Estimated RE Taxes 1,108,873 1,297,224 1,517,569 1,775,341 1,920,209
85,555 100,087 117,088 136,976 148,154
9 Estimated RE Tax Increment Annual 49,068 63,600 80,601 100,489 111,667
II10 Average RE Tax Increment Bond Term 69,918
11 Estimated Sales Tax 399,000 399,000 399,000 399,000 399,000
I12 Adjusted Sales Tax Increment Term 293,832 293,832 293,832 293,832 293,832
13 Net Project Revenues Annual 342,900 357,432 374,433 394,321 405,499
I14 Net Project Revenues Tern 363,750
15 Bonding Potential 3 10% Annual 2,961,049 3,086,539 3,233,345 3,405,088 3,501,607
16 Bonding Potential 7 10% Term 3,141,098
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PROJECT COSTS
III17 Land Acquisition 1,844,330
18 Demolition 120,000
19 Relocation 174,000
III 20 Rehabilitation 0
21 Site Improvements 210,000
22 Consulting 15,000
III 23 Gross Project Costs 2,363,330
24 Less Disposition Costs 124,146
25 Less CDBG 0 1
III26 Net Project Cost 2,239,184 1
111 27 TIF Debt 20 Years 2,239,184
28 TIF Debt Service 10'/. i 18 Years 288,117
29 TIE Bond Coverage Ratio 1.26
III
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