TO: Mayor Richard C. Irvin
FROM: Alex Minnella, Planner
DATE: July 16, 2020
SUBJECT:title
Introduce announcement of the availability of the Eligibility Study and Report, and the Redevelopment Plan and Project for the proposed Fox Valley Mall Area TIF District.
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PURPOSE:
In compliance with the TIF Act, this agenda item shall serve as the City’s announcement of its intent to establish a Fox Valley Mall Area Tax Increment Finance (TIF) District. This announcement provides for a review period of the Redevelopment Project and Plan and Eligibility Report for the proposed Fox Valley Mall Area TIF District.
BACKGROUND:
The Fox Valley Mall was originally constructed in the 1970s and reflects many of the design elements that defined the early era of mall construction in the United States including a ring road encircling the mall to support “outlot” retail sites. Like many similar sites of this era, Fox Valley Mall has been challenged by changes in consumer behavior in recent decades. These challenges have created conditions which have inhibited private investment and have led to a general decline and economic underutilization of the area. Recognizing the need to take action, the City has focused recent planning efforts on the Route 59 Corridor in general, and the Fox Valley Mall area in particular, resulting in a call to reuse and revitalize the area.
Given economic factors that have impacted malls nationwide and in conformance with its recent Route 59 Corridor Study Comprehensive Plan (2019), the City has determined that the Fox Valley Mall area as a whole would not be redeveloped in a coordinated manner without the adoption of a Tax Increment Financing Redevelopment Plan. The City, with the assistance of Kane, McKenna and Associates, Inc. (KMA), has commissioned an Eligibility Report and Redevelopment Plan to use tax increment financing in order to alleviate those conditions which deter private investment in the area and meet redevelopment goals and objectives.
To establish a TIF district (“Redevelopment Project Area” or “RPA), Illinois municipalities must adopt several documents including a Redevelopment Plan and an Eligibility Report.
DISCUSSION:
The creation of a TIF district requires several steps. The first public step is the announcement of the TIF by providing the Redevelopment Project and Plan. This document is attached. It is important to note that the actual announcement is done by the full City Council at its August 11, 2020 meeting. Further steps associated with the creation of the TIF will include the provision of mailed notices, public notices, a Joint Review Board meeting and a public hearing. The City’s Corporation Counsel has engaged Klein, Thorpe & Jenkins to serve as the City's Special Counsel to support this TIF formation process.
Attachment 1 is the Certificate of Publication of the Announcement.
Attachment 2 is the Redevelopment Plan for the Fox Valley Mall Area TIF District which provides a summary of the proposed TIF including the TIF border, budget, legal description and potential development plans.
Attachment 3 is the Eligibility Study and Report.
IMPACT STATEMENT:
Making this announcement will begin the formation process of the proposed Fox Valley Mall Area TIF District. Failure to make this announcement will mean that this TIF District will not be created and needed financing for future development will not be created.
RECOMMENDATIONS:
Staff recommends the Committee forward this item to the City Council for formal announcement on August 11, 2020.
cc: Finance Committee:
Alderman Robert O’Connor, Chairperson
Alderman Edward J. Bugg, Vice Chairperson
Alderman Carl Franco
Alderwoman Scheketa Hart-Burns
Alderman Emmanuel Llamas