HomeMy WebLinkAboutORDINANCE - 3712 - 6/30/2021 - Oakton/Higgins Tax Increment Redevlopment Plan and ProjectORDINANCE NO.3712
AN ORDINANCE APPROVING THE OAKTON/HGGINS TAX INCREMENT
REDEVELOPMENT PLAN AND PROJECT
WHEREAS, the Mayor and Village Board (the "Corporate Authorities") of the Village
of Elk Grove Village, Cook and DuPage counties, Illinois (the "Village "), have heretofore
determined that the stable economic and physical development of the Village is endangered by the
presence of conservation factors, with a resulting decline of the Village which impairs the value
of private investments and threatens the sound growth and the tax base of the Village and the
taxing districts having the power to tax real property in the Village (the "Taxing Districts") and
threatens the health, safety, morals and welfare of the public; and
WHEREAS, the Corporate Authorities have heretofore determined that in order to
promote and protect the health, safety, morals and welfare of the public, that there are conservation
conditions in the Village that need to be eradicated so that redevelopment within the Village can
be undertaken to remove and alleviate such conditions. The Village has determined it is necessary
to encourage private investment and restore and enhance the tax base of the Village and the Taxing
Districts by such redevelopment; and
WHEREAS, the Village has caused to be conducted and made available for public
inspection an eligibility study to determine whether the proposed Village of Elk Grove
Oakton/Higgins Redevelopment Project Area (the "Area") qualifies as a "redevelopment project
area" pursuant to the TIF Act, which study was conducted by Camiros, Ltd. ("Camiros "); and
WHEREAS, the Village has heretofore evaluated various lawfully available programs to
provide such assistance and has determined that the use of tax increment allocation financing is
necessary to achieve the redevelopment goals of the Village for the proposed Area; and
WHEREAS, Camiros is a planning firm having a national reputation for expertise in tax
increment allocation and redevelopment financing in the State of Illinois; and
WHEREAS, Camiros has heretofore concluded and has advised the Village that the
proposed Area qualifies as a "redevelopment project area" under 65 ILCS 65/11-74.4-3 of the
Illinois Municipal Code; and
WHEREAS, the Village has further caused the preparation of, and on April 16, 2021,
made available for public inspection the proposed Oakton/Higgins Court Redevelopment Plan and
Project for the proposed Area (the "Plan" and "Project") and on June 15, 2021, held a public
hearing to hear comments on the Plan and Project; and
WHEREAS, the proposed Plan does not include the development of vacant land (i) with
a golf course and related clubhouse and other facilities or (ii) designated by federal, state, county,
municipal government as public land for outdoor camping and hunting activities or for nature
preserves and used for that purpose within 5 years prior to the adoption of this ordinance; and
WHEREAS, the Corporate Authorities have heretofore, and it hereby is, expressly
determined that the proposed Plan will not result in displacement of residents from inhabited units;
and
WHEREAS, none of the redevelopment project costs enumerated in the proposed Plan
and Project would provide direct financial support to a retail entity initiating operations in the
proposed Area while terminating operations at another Illinois location within 10 miles of the
proposed Area but outside the boundaries of the Village; and
WHEREAS, the proposed Plan and Project sets forth in writing, inter alia: the program to
be undertaken to accomplish the objectives of the Village and includes an itemized list of estimated
redevelopment project costs that may be incurred within the proposed Area; evidence indicating
that the proposed Area on the whole has not been subject to growth and development through
investment by private enterprise; an assessment of the financial impact of the Area on or any
increased demand for services from any taxing district affected by the Plan; any program to address
OAKTON/HIGGINS TIF ORDINANCE ONE - ADOPTING PLAN AND PROJECT
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such financial impact or increased demand; the sources of funds to pay costs; the nature and term
of the obligations to be issued; the most recent equalized assessed valuation of the Area; an
estimate as to the equalized assessed valuation after redevelopment and the general land uses to
apply in the Area; a commitment to fair employment practices and an affirmative action plan; and
a certification that the Plan will not result in displacement of residents from inhabited units; and
the Plan and Project accordingly complies in all respects with the requirements of the TIF Act; and
WHEREAS, the Village convened a joint review board meeting on May 20, 2021, by
inviting a representative selected by each community college district, local elementary school
district and high school district or each local community unit school district, park district, library
district, township, fire protection district and county that have the authority to directly levy taxes
on the property within the proposed Area at the time the proposed Area is designated, a
representative selected by the City, and a public member (the "JRB "), as required by and in all
respects in compliance with the provisions of the TIF Act; and
WHEREAS, at the JRB meeting, in conformance with the TIF Act, the members reviewed
the public record, planning documents and the form of a proposed ordinance approving the
proposed Plan and Project; and
WHEREAS, the JRB adopted by a majority vote an advisory, non -binding
recommendation finding that the Plan and Project met the requirements and objectives of the TIF
Act; and that the Area qualified as a conservation area; and that the proposed Plan satisfied the
plan requirements, of the TIF Act for a redevelopment plan:
WHEREAS, pursuant to Section 11-74.4-5 of the Act, the Corporate Authorities adopted
an ordinance calling for a public hearing (the "Hearing") to hear comments and questions
regarding the Plan and Project and the designation of the proposed Area as a redevelopment project
OAKTONMIGGINS TIF ORDINANCE ONE - ADOPTING PLAN AND PROJECT
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area under the TIF Act and fixed the time and place for such Hearing, being the 15th day of June,
2021 at 6:30 P.M., at the Village Hall, 901 Wellington, Elk Grove, Illinois 60007; and
WHEREAS, due notice of such Hearing was given pursuant to Section I 1-74.4-5 of the
TIF Act; said notice, a copy of the Plan and the name of a person to contact for further information,
was given to taxing districts and to the Department of Commerce and Economic Opportunity of
the State of Illinois by certified mail on April 28, 2021, in accordance with the Act.
WHEREAS, notice of the availability of the Report and the Plan, including how to obtain
this information, was provided by mail on April 30, 2021 to all residential addresses that, after a
good faith effort, the Village determined were located outside the boundaries of the proposed Area
which are within 750 feet of the boundaries of the proposed Area; and
WHEREAS, the Village published notice of the Public Hearing in a newspaper of general
circulation twice, once on June 1, 2021 and again on June 2, 2021.
WHEREAS, the Village held the Hearing on June 15, 2021, at the Village Hall, 901
Wellington, Elk Grove, Illinois 60007; and
WHEREAS, at the Hearing any interested person or affected taxing district was permitted
to file with the Municipal Clerk written objections and was heard orally in respect to any issues
embodied in the notice of said Hearing, and the Village heard and determined all protests and
objections at the Hearing; and
WHEREAS, the Hearing was adjourned on the 15th day of June, 2021; and
WHEREAS, no changes have been made in the proposed Plan or in the parcels of property
to be included in the proposed Area since the adjournment of the Hearing; and
WHEREAS, the Plan and Project set forth the factors which cause the proposed Area to
be a conservation area and the Corporate Authorities have reviewed the information concerning
such factors presented in the Plan reviewed other studies and are generally informed of the
OAKTONMIGGINS TIF ORDINANCE ONE - ADOPTING PLAN AND PROJECT
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conditions in the Proposed Area which could cause the area to be a "conservation area" as defined
in the TIF Act; and
WHEREAS, the Corporate Authorities have reviewed evidence indicating that the
proposed Area on the whole has not been subject to growth and development through investment
by private enterprise and have reviewed the conditions pertaining to lack of private investment in
the proposed Area to determine whether private development would take place in the proposed
Area as a whole without the adoption of the proposed Plan; and
WHEREAS, the Corporate Authorities have reviewed the conditions pertaining to real
property in the proposed Area to determine whether contiguous parcels of real property and
improvements thereon in the proposed Area would be substantially benefited by the proposed
Project improvements; and
WHEREAS, the Corporate Authorities have made an assessment of any financial impact
of the proposed Area on or any increased demand for services from any taxing district affected by
the Plan and Project and any program to address such financial impact or increased demand; and
WHEREAS, the Corporate Authorities have reviewed the proposed Plan and Project and
along with the comprehensive plan as a whole, as documented by the Village's zoning and other
municipal ordinances and the existing plans and land uses in the Area and neighboring properties
to determine whether the proposed Plan and Project conforms to the Village's comprehensive plan,
as described herein.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and Village Board of the Village
of Elk Grove, Cook and DuPage counties, in the exercise of its home rule powers, as follows:
Section 1: Findings. The Corporate Authorities hereby make the following findings:
(a) The proposed 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 proposed Area
OAKTONMIGGINS TIF ORDINANCE ONE - ADOPTING PLAN AND PROJECT
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is described in EXHIBIT B attached hereto and incorporated herein. A map of the proposed 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 proposed Area to be subject to designation as a
redevelopment project area under the TIF Act and to be classified as a "conservation area" as
defined in Section 11-74.4-3(b) of the TIF Act.
(c) The proposed 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 Plan.
(d) The Plan and Project conform to the comprehensive plan as a whole for the development
of the Village as a whole as set forth herein
(e) Asset forth in the Plan, the estimated date of completion of the Project is not later twenty-
three years after the date of its adoption, and the estimated date of the retirement of all obligations
incurred to finance redevelopment project costs as defined in the Plan is not later than
December 31, 2045, being the year in which payment to the Municipal Treasurer as provided in
subsection (b) of Section 11-74.4-5 of the Act is to be made with respect to ad valorem taxes levied
in the twenty-third calendar year in which this ordinance is adopted.
(f) The parcels of real property in the proposed Area are contiguous, and only those
contiguous parcels of real property and improvements thereon which will be substantially
benefited by the proposed Project improvements are included in the proposed Area.
Section 2: Exhibits Incorporated by Reference. The proposed Plan and Project, which
were the subject matter of the public hearing held on the 15th day of June, 2021, are hereby adopted
and approved. A copy of the Plan and Project is set forth in EXHIBIT D attached hereto and
incorporated herein as if set out in full by this reference.
OAKTON/HIGGINS TIF ORDINANCE ONE - ADOPTING PLAN AND PROJECT
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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 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.
Section 5: Transmittal to County Clerk. The Village Clerk is hereby expressly directed
to transmit forthwith to the County Clerk of Cook County, Illinois, a certified copy of this
ordinance.
VOTE: AYES: 6 NAYS: 0 ABSENT: 0
PASSED this 3011 day of June 2021.
APPROVED this 301h day of June 2021.
APPROVED:
Mayor Craig B. Johnson
Village of Elk Grove Village
ATTEST:
Loretta M. Murphy, Village Clerk
OAKTONMIGGINS TIF ORDINANCE ONE - ADOPTING PLAN AND PROJECT
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EXHIBITS
EXHIBIT A: Legal Description
Exhibit B: Description of Street Location
Exhibit C: Map of Area
Exhibit D: Redevelopment Plan & Project
OAKTON/HIGGINS TIF ORDINANCE ONE - APPROVE PLAN AND PROJECT
EXHIBIT A
LEGAL DESCRIPTION
OAKTON/HIGGINS TIF
ALL PART OF THE WEST HALF OF THE NORTHWEST QUARTER OF
SECTION 26, TOWNSHIP 41 NORTH, RANGE I I EAST OF THE THIRD
PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS:
2. BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF HIGGINS
ROAD WITH THE EAST LINE OF THE WEST HALF OF THE NORTHWEST
QUARTER OF SECTION 26 AFORESAID;
3. THENCE NORTH ALONG THE EAST LINE OF THE WEST HALF OF THE
NORTHWEST QUARTER OF SECTION 26 TO THE SOUTHWESTERLY
LINE OF PROPERTY CONVEYED TO THE NORTHERN ILLINOIS GAS
COMPANY BY DEED DATED NOVEMBER 10, 1958 AND RECORDED
DECEMBER 18, 1958 AS DOCUMENT 17408538, SAID LINE BEING ALSO
82.5 FEET SOUTHWESTERLY OF AND PARALLEL WITH THE
SOUTHWESTERLY LINE OF THE PROPERTY ACQUIRED BY THE
ILLINOIS STATE TOLL HIGHWAY COMMISSION BY DEED DATED
OCTOBER 31, 1956 AND RECORDED NOVEMBER 9, 1956 AS
DOCUMENT 16750861;
4. THENCE NORTHWESTERLY ALONG SAID SOUTHWESTERLY LINE OF
PROPERTY CONVEYED TO THE NORTHERN ILLINOIS GAS COMPANY
BY DEED DATED NOVEMBER 10, 1958 AND RECORDED DECEMBER 18,
1958 AS DOCUMENT 17408538, TO THE CENTERLINE OF OAKTON
STREET, BEING ALSO THE NORTH LINE OF THE NORTHWEST
QUARTER OF SECTION 26 AFORESAID;
5. THENCE WEST ALONG SAID CENTERLINE OF OAKTON STREET, AND
THE NORTH LINE OF THE NORTHWEST QUARTER OF SECTION 26, TO
THE CENTERLINE OF HIGGINS ROAD;
6. THENCE SOUTHWESTERLY ALONG THE CENTERLINE OF HIGGINS
ROAD TO ITS INTERSECTION WITH THE EAST LINE OF THE WEST
HALF OF THE NORTHWEST QUARTER OF SECTION 26 AFORESAID,
AND THE POINT OF BEGINNING,
7. ALL IN COOK COUNTY, ILLINOIS.
EXHIBIT B:
Description of Street Location
Oakton/Higgins Redevelopment Project Area
The Oakton/Higgins Redevelopment Project Area is generally bounded by Higgins Road on the west,
Oakton Street on the north, Interstate 1-90 on the east, and Brummel Avenue on the south.
EXHIBIT C:
Map of Area
A-2
Exhibit D
OAKTON/HIGGINS TIF
REDEVELOPMENT PLAN AND PROJECT
Prepared for:
The Village of Elk Grove Village
By:
Camiros, Ltd.
Date: April2021
This plan is subject to review and may be revised after comment and public hearing.
TABLE OF CONTENTS
1.
Introduction
1
2.
Project Area Description
4
3.
Eligibility of the Project Area for Designation as a Redevelopment Project Area
5
4.
Redevelopment Plan Goals and Objectives
6
5.
Redevelopment Plan
7
6.
Redevelopment Project Description
9
7.
General Land Use Plan and Map
10
8.
Redevelopment Plan Financing
it
9.
Housing Impact Study Applicability
20
10.
Provisions for Amending the Plan
21
11.
Village of Round Lake Commitment to Fair Employment Practices
22
and Affirmative Action
APPENDIX A (FIGURES 1-2) A-1
APPENDIX B (OAKTON/HIGGINS TIF REDEVELOPMENT PROJECT B-1
AREA LEGAL DESCRIPTION)
APPENDIX C (OAKTON/HIGGINS TIF REDEVELOPMENT C-1
PROJECT AREA ELIGIBILITY STUDY)
APPENDIX D (INITIAL EQUALIZED ASSESSED VALUE (EAV) OF PROPERTY D-1
WITHIN THE OAKTON/HIGGINS TIF REDEVELOPMENT
PROJECT AREA)
LIST OF FIGURES
FIGURE 1. REDEVELOPMENT PROJECT AREA BOUNDARY
FIGURE 2. GENERAL LAND USE PLAN
FIGURE A. STUDY AREA
LIST OF TABLES
A-2
A-3
C-5
TABLE 1 ESTIMATED REDEVELOPMENT PROJECT COSTS 15
TABLE A. COMPARATIVE INCREASE IN EQUALIZED ASSESSED VALUE (EAV) C-13
TABLE B. CONSERVATION AREA ELIGIBILITY FACTOR SUMMARY C-14
1. INTRODUCTION
This document presents a Tax Increment Redevelopment Plan and Project (the "Plan") under the
requirements of the Tax Increment Allocation Redevelopment Act (65 ILCS 5/11-74.4-1 et seq.), as
amended (the "Act") for the Oakton/Higgins TIF Redevelopment Project Area (the "Project Area") located
in the Village of Elk Grove Village, Illinois (the "Village").
The Project Area boundaries are delineated on Figure 1: Redevelopment Project Area Boundary in
Appendix A and legally described in Appendix B. The Project Area is generally bounded by Higgins Road
on the west, Oakton Street on the north, Interstate 1-90 on the east, and Brummel Avenue on the south.
The Project Area is approximately 9.25 acres in size.
This Plan responds to problem conditions within the Project Area as discussed herein and reflects a
commitment by the Village to improve and revitalize the Project Area. The purpose of this Plan is to
encourage private redevelopment and reinvestment by making the public infrastructure available and
providing other assistance allowed under the Act to support private reinvestment, thereby stabilizing
the tax base of the Village and other taxing districts.
The Plan summarizes the analyses and findings of the Consultant's work which, unless otherwise noted,
is the responsibility of Camiros, Ltd. (the "Consultant"). The Village is entitled to rely on the findings and
conclusions of this Plan in designating the Project Area as a redevelopment project area under the Act.
The Consultant has prepared this Plan and the related eligibility study with the understanding that the
Village would rely: 1) on the findings and conclusions of the Plan and the related eligibility study in
proceeding with the designation of the Project Area and the adoption and implementation of the Plan,
and 2) on the fact that the Consultant has prepared the Plan and the related eligibility study in
compliance with the Act.
The Plan presents certain conditions, research and analysis undertaken to document the eligibility of the
Project Area for designation as a tax increment financing ("TIF") district. The need for public
intervention, goals and objectives, land use policies and other policy materials are presented in this Plan.
The results of a study documenting the eligibility of the Project Area as a conservation area is presented
in Appendix C• Oakton/Higgins TIF Redevelopment Project Area Eligibility Study (the "Eligibility Study").
Tax Increment Financing
In adopting the Act, the Illinois State Legislature found at Section 5/11-74.4-2(a) that:
... there exist in many municipalities within this State blighted, conservation and industrial
park conservation areas, as defined herein; that the conservation areas are rapidly
deteriorating and declining and may soon become blighted areas if their decline is not
checked;
and also found at Section 5/11-74.4-2(b) that:
... in order to promote and protect the health, safety, morals, and welfare of the public, that
blighted conditions need to be eradicated and conservation measures instituted, and that
redevelopment of such areas be undertaken; that to remove and alleviate adverse
conditions it is necessary to encourage private investment and restore and enhance the tax
base of the taxing districts in such areas by the development or redevelopment of project
areas. The eradication of blighted areas and treatment and improvement of conservation
areas and industrial park conservation areas by redevelopment projects is hereby declared
to be essential to the public interest.
In order to use the tax increment financing technique, a municipality must first establish that the
proposed redevelopment project area meets the statutory criteria for designation as a "blighted area,"
or a "conservation area." A redevelopment plan must then be prepared that describes the development
or redevelopment program intended to be undertaken to reduce or eliminate those conditions which
qualified the redevelopment project area as a "blighted area" or "conservation area" or combination
thereof, and thereby enhance the tax bases of the taxing districts which extend into the redevelopment
project area. The statutory requirements are set out at 65 ILCS 5/11-74.4-3, et seg.
The Act provides that, in order to be adopted, the Plan must meet the following conditions under 5/11-
74.4-3 (n ):
(1) the redevelopment project 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 redevelopment plan;
(2) the redevelopment plan and project conform to the comprehensive plan for the
development of the municipality as a whole, or, for municipalities with a population of
100,000 or more, regardless of when the redevelopment plan and project was adopted,
the redevelopment plan and project either (i) conforms to the strategic economic
development or redevelopment plan issued by the designated planning authority of the
municipality, or (ii) includes land uses that have been approved by the planning
commission of the municipality;
(3) the redevelopment plan establishes the estimated dates of completion of the
redevelopment project and retirement of obligations issued to finance redevelopment
project costs (which dates shall not be later than December 31 of the year in which the
payment to the municipal treasurer as provided in Section 8 (b) of the Act is to be made
with respect to ad valorem taxes levied in the twenty-third calendar year after the year
in which the ordinance approving the redevelopment project area is adopted);
(4) in the case of an industrial park conservation area, also that the municipality is a labor
surplus municipality and that the implementation of the redevelopment plan will reduce
unemployment, create new jobs and by the provision of new facilities enhance the tax
base of the taxing districts that extend into the redevelopment project area;
(5) if any incremental revenues are being utilized under Section 8 (a) (1) or 8 (a) (2) of this
Act in redevelopment project areas approved by ordinance after January 1, 1986 the
municipality finds (a) that the redevelopment project area would not reasonably be
developed without the use of such incremental revenues, and (b) that such incremental
revenues will be exclusively utilized for the development of the redevelopment project
area; and
(6) certification that a housing impact study need not be performed if less than 10
residential units will be displaced (see 5/11-74.4-3 (n)(5) of the Act).
Redevelopment projects are defined as any public or private development projects undertaken in
furtherance of the objectives of the redevelopment plan in accordance with the Act. The Act provides a
means for municipalities, after the approval of a redevelopment plan and project, to redevelop blighted,
conservation, or industrial park conservation areas and to finance eligible "redevelopment project costs"
with incremental property tax revenues. `Incremental Property Tax" or "Incremental Property Taxes"
are derived from the increase in the current equalized assessed value ("EAV") of real property within the
redevelopment project area over and above the "Certified Initial EAV" of such real property. Any
increase in EAV is then multiplied by the current tax rate to arrive at the Incremental Property Taxes.
To finance redevelopment project costs, a municipality may issue obligations secured by Incremental
Property Taxes to be generated within the redevelopment project area. In addition, a municipality may
pledge towards payment of such obligations any part or any combination of the following:
(a) net revenues of all or part of any redevelopment project;
(b) taxes levied and collected on any or all property in the municipality;
(c) the full faith and credit of the municipality;
(d) a mortgage on part or all of the redevelopment project; or
(e) any other taxes or anticipated receipts that the municipality may lawfully pledge.
Tax increment financing does not generate tax revenues. This financing mechanism allows the
municipality to capture, for a certain number of years, the new tax revenues produced by the enhanced
valuation of properties resulting from the municipality's redevelopment program, improvements and
activities, various redevelopment projects, and the reassessment of properties. This revenue is then
reinvested in the area through rehabilitation, developer subsidies, public improvements and other
eligible redevelopment activities. While tax increment financing is in place, all taxing districts continue to
receive property taxes levied on the initial valuation of properties within the redevelopment project
area. Additionally, taxing districts can receive distributions of "surplus" Incremental Property Taxes
when annual Incremental Property Taxes received exceed principal and interest obligations for that year
and redevelopment project costs necessary to implement the redevelopment plan have been paid and
such excess Incremental Property Taxes are not otherwise required, pledged or otherwise designated
for other redevelopment projects as determined by the Village. Taxing districts also benefit from the
increased property tax base after redevelopment project costs and obligations are paid in full.
The Village authorized an evaluation to determine whether certain real property in the Village, to be
known as the Cakton/Higgins TIF Redevelopment Project Area (the "Project Area"), qualifies for
designation as a redevelopment project area under the provisions contained in the Act. If the Project
Area so qualifies, the Village has authorized the preparation of a redevelopment plan (the "Plan") for the
Project Area in accordance with the requirements of the Act.
As described in the ElipibilitV Study, attached as Appendix C, the Project Area is experiencing
deterioration and lack of private investment. The analysis of conditions within the Project Area indicates
that it is appropriate for designation as a "conservation area" as defined in the Act. The Plan has been
formulated in compliance with the provisions of the Act and will serve as a guide for proposed public
and private development in the Project Area.
2. PROJECT AREA DESCRIPTION
The Project Area includes only contiguous tax parcels that are anticipated to substantially benefit from
the proposed redevelopment project area improvements.
Community Context
Elk Grove Village is home to the largest business park in the United States with over 3,600 businesses
located in a 5.4-square-mile area. The Elk Grove Business Park ("Business Park") is adjacent to O'Hare
International Airport and served by several Interstate highways. It has always comprised the major
portion of the Village's tax base and that of the overlapping taxing districts. It is critical that the Business
Park remain viable and modern so that it will continue to attract new and growing businesses and
private investment.
Most of the Project Area was recently annexed to the Village. This redevelopment project area is being
created to facilitate the redevelopment of obsolete and deteriorated properties that have an adverse
impact on adjacent Business Park uses that are located within the Village's Busse/Elmhurst Road TIF.
Current Land Use
The Project Area includes eight tax parcels which are all improved as commercial property. The Project
Area is bordered on the east by Interstate 1-90. Specific uses include a Jiffy Lube, McDonalds, an older
motel complex, a large billboard oriented to 1-90 traffic, and a Nicor Gas parcel that appears to primarily
be used for parking. A Village -owned parcel, which has been improved with a now -demolished
gentlemen's club, is now vacant and included in this Plan and eligibility study.
Transportation Characteristics
Higgins Road and Oakton Street are both major transportation routes. Higgins Road carries
approximately 33,100 vehicles per day south of Oakton Street. Oakton Street carries approximately
22,900 vehicles per day east of Busse Road.
4
3. ELIGIBILITY OF THE PROJECT AREA FOR DESIGNATION AS A
REDEVELOPMENT PROJECT AREA
The Project Area on the whole has not been subject to growth and development through investment by
private enterprise. Based on the conditions present, the Project Area is not likely to attract private
sector investment without the creation of the Redevelopment Project Area and adoption of this Plan.
Studies were undertaken to establish whether the proposed Project Area is eligible for designation as a
"blighted area" or "conservation area" in accordance with the requirements of the Act. This analysis
concluded that the Project Area qualifies for designation as a redevelopment project area because it is a
conservation area consistent with the definitions contained in the Act.
In order to be designated as a conservation area, 50% or more of the buildings within the improved
portion of the Project Area must be 35 years of age or older. The Project Area currently contains four
principal buildings and a highway -oriented billboard structure. Three of these structures are at least 35
years of age according to Cook County property records representing 60% of all structures. Once the age
requirement has been met, the presence of at least three of the 13 conditions stated in the Act is
required for designation as a conservation area. These conditions must be meaningfully present and
reasonably distributed within the Project Area.
The seven conditions listed below are meaningfully present and reasonably distributed in the Project
Area with respect to improved property:
• Obsolescence
• Deterioration
• Presence of structures below minimum code standards
• Inadequate utilities
• Excessive land coverage and overcrowding of community facilities
• Lack of community planning
• Lagging or declining equalized assessed valuation ("EAV")
Need for Public Intervention
Besides establishing eligibility of the Project Area for designation as a redevelopment project area under
the Act, the presence of these conditions help to demonstrate the need for public intervention to attract
private investment to the Project Area and achieve economic growth that will benefit all taxing districts
through implementation of the Plan. For more details on the basis for eligibility, refer to Appendix C:
Eligibility Study.
The Project Area on the whole has not been subject to growth and investment by private enterprise and
is not reasonably likely to attract new development without adoption of a Redevelopment Plan and
Project. A variety of impediments, which are described in the Eligibility Study, will need to be addressed
to achieve the community's development vision.
4. REDEVELOPMENT PLAN GOALS AND OBJECTIVES
This Plan is guided by a series of goals and objectives that describe how the Plan can help improve the
Project Area. These goals and objectives are consistent with community vision, goals and objectives for
the Elk Grove Business Park. The delineation of these goals and objectives are also supported through
research performed within the Project Area to document the presence of conditions that qualify the
area for designation as a conservation area under the Act.
General Goals
The following general goals describe broad statements indicating how the Plan can help improve the
Project Area.
1. Reduce or eliminate those conditions that qualify the Project Area for designation as a tax
increment finance district while maintaining the economic vitality of the Project Area.
2. Create an attractive environment that encourages new commercial development and increases
the tax base of the Project Area, thereby fostering confidence in new real estate investment.
3. Upgrade public utilities, infrastructure and streets, including providing stormwater detention to
alleviate flooding.
4. Create an environment which will preserve or enhance the value of properties within and
adjacent to the Project Area, improving the real estate and sales tax base for the Village and
other taxing districts that have jurisdiction over the Project Area.
Redevelopment Objectives
The following redevelopment objectives describe how the Plan can be used to help foster particular
types of redevelopment needed within the Project Area.
Encourage redevelopment of underutilized property within the Project Area to enhance the
identity and economic contribution of the Elk Grove Business Park to the community and
underlying taxing districts.
2. Attract new businesses and retain appropriate existing businesses.
3. Encourage property owners to rehabilitate existing structures and/or replace existing structures
with new facilities.
The preceding goals and objectives provide initial direction regarding priorities for making the public
infrastructure improvements and investments to support private investment activity. It is anticipated
that the Plan's goals and objectives will be reviewed throughout the life of the Plan and adjusted as
required to successfully implement the Plan.
1.
5. REDEVELOPMENT PLAN
The Village proposes to achieve the Plan's goals through the use of public financing techniques,
including tax increment financing, and by undertaking some or all of the following actions:
Property Assembly and Site Preparation
To meet the goals and objectives of this Plan, the Village may acquire and assemble property
throughout the Project Area. Land assemblage by the Village may be by purchase, exchange,
donation, lease, or other available means of land acquisition. The purposes of land assemblage are
to be able to (a) sell, lease or convey property to private developers committed to locating in the
Project Area, or to (b) sell, lease, or convey or dedicate the land for the construction of public
improvements or facilities. The Village may enter into written redevelopment agreements with
developers before acquiring or conveying land to ensure that properties are developed in
accordance with the goals of this Plan, the Village's design objectives and land use goals. As
appropriate, the Village may devote acquired property to temporary uses until such property is
scheduled for disposition and development.
If the Village elects to exercise its power to acquire real property under the Act in implementing the
Plan, the Village will follow its customary procedures. Acquisition of such real property as may be
authorized by the Village Board does not constitute a change in the nature of this Plan.
Intergovernmental and Redevelopment Agreements
The Village may enter into redevelopment agreements or intergovernmental agreements with
private entities or other public entities to construct, rehabilitate, renovate or restore private or
public improvements on one or several parcels (collectively referred to as "Redevelopment
Projects").
Terms of redevelopment as part of a redevelopment project may be incorporated in appropriate
redevelopment agreements. For example, the Village may agree to reimburse a developer for
incurring certain eligible redevelopment project costs under the Act. Such agreements may contain
specific development controls as allowed by the Act.
Analysis, Professional Services and Administrative Activities
The Village may undertake or engage professional consultants, engineers, architects, attorneys, and
others to conduct various analyses, studies, administrative legal services or other professional
services to establish, implement and manage the Plan.
Provision of Public Improvements and Facilities
Adequate public improvements and facilities are required to support future development in the
Project Area. Public improvements and facilities may include, but are not limited to construction and
extension of new stormwater management facilities, new and rehabilitation of stormwater
conveyance facilities, sanitary sewer facilities, domestic water service, upgrading streets,
signalization improvements, provision of streetscape amenities, parking improvements, utility
rA
improvements, property access improvements, roadway lighting, sidewalk construction and
rehabilitation, and other multi -model transportation improvements.
Financing Costs Pursuant to the Act
Interest on any obligations issued under the Act accruing during the estimated period of
construction of the redevelopment project and other financing costs may be paid from the
incremental tax revenues pursuant to the provisions of the Act.
Interest Costs Pursuant to the Act
Pursuant to the Act, the Village may allocate a portion of the incremental tax revenues to pay or
reimburse developers for a portion of interest costs incurred in connection with redevelopment
activities in order to enhance the redevelopment potential of the Project Area.
N.
6. REDEVELOPMENT PROJECT DESCRIPTION
This Plan seeks to encourage private investment by reducing blighting conditions, such as deterioration,
inadequate utilities, obsolescence, excessive land coverage and overcrowding of community facilities,
which have hindered such investment. The Plan recognizes that new private investment is needed to
improve and revitalize the Project Area and support needed public infrastructure investments. The
redevelopment of the Project Area is expected to encourage economic revitalization within the Project
Area and the surrounding area.
Public Infrastructure Improvements
In order to support the development of property within the Project Area, the Village may upgrade
and expand utilities to adequately serve new private development. This public improvement work
will support redevelopment to meet the needs of future users.
Commercial Rehabilitation
The Village may assist property owners as needed to stabilize and retain existing facilities through
rehabilitation.
Property Acquisition and New Development
In order to facilitate redevelopment project activities, the acquisition of property may be required.
Property acquisition will be limited to properties needed to support new industrial/commercial
development.
9
7. GENERAL LAND USE PLAN AND MAP
Figure 2: General Land Use Plan, in Appendix A, identifies land uses expected to result from
implementation of the Plan. The land use designation is commercial -industrial mixed use in keeping with
the historic development character of the Elk Grove Business Park and zoning along the Oakton Street
and Higgins Road corridors. The mixed use designation provides guidance and flexibility in future land
use policy where a variety of commercial support uses may be appropriate.
The land use plan is intended to direct development toward the most appropriate land use pattern for
the Project Area and enhance the overall development of the Project Area in accordance with the goals
and objectives of the Plan. Locations of specific uses, or public infrastructure improvements, may vary
from the General Land Use Plan as a result of more detailed planning and site design activities. Such
variations are permitted without amendment to the Plan as long as they are consistent with the Plan's
goals and objectives and the land uses and zoning approved by the Elk Grove Plan Commission and
Village Board.
10
8. REDEVELOPMENT PLAN FINANCING
Tax increment financing is an economic development tool designed to facilitate the redevelopment of
blighted areas and to arrest decline in conservation areas that may become blighted without public
intervention. It is expected that tax increment financing will be an important means, although not
necessarily the only means, of financing improvements and providing development incentives in the
Project Area throughout its 23-year life.
Tax increment financing can only be used when private investment would not reasonably be expected to
occur without public assistance. The Act sets forth the range of public assistance that may be provided.
It is anticipated that expenditures for redevelopment project costs will be carefully staged in a
reasonable and proportional basis to coincide with expenditures for redevelopment by private
developers and the projected availability of tax increment revenues.
The various redevelopment expenditures that are eligible for payment or reimbursement under the Act
are reviewed below. Following this review is a list of estimated redevelopment project costs that are
deemed to be necessary to implement this Plan (the "Redevelopment Project Costs" or "Project
Budget").
In the event the Act is amended after the date of the approval of this Plan by the Elk Grove Village Board
to a) include new eligible redevelopment project costs, or b) expand the scope or increase the amount
of existing eligible redevelopment project costs (such as, for example, by increasing the amount of
incurred interest costs that may be paid under 65 ILCS 5/11-74.4-3(q)(11)), this Plan shall be deemed to
incorporate such additional, expanded or increased eligible costs as Redevelopment Project Costs under
the Plan, to the extent permitted by the Act. In the event of such amendment(s) to the Act, the Village
may add any new eligible redevelopment project costs as a line item in Table 1: Estimated
Redevelopment Project Costs or otherwise adjust the line items in Table 1 without amendment to this
Plan, to the extent permitted by the Act. In no instance, however, shall such additions or adjustments
result in any increase in the total Redevelopment Project Costs without a further amendment to this
Plan, in accordance with the provisions of the Act.
Eligible Redevelopment Costs
Redevelopment project costs include the sum total of all reasonable or necessary costs incurred,
estimated to be incurred, or incidental to this Plan pursuant to the Act. Such costs may include, without
limitation, the following:
a) Costs of studies, surveys, development of plans and specifications, implementation and
administration of the Plan including but not limited to, staff and professional service costs for
architectural, engineering, legal, financial, planning or other services (excluding lobbying
expenses), provided that no charges for professional services are based on a percentage of the
tax increment collected;
b) The costs of marketing sites within the Project Area to prospective businesses, developers and
investors;
c) 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, site preparation, site
11
improvements that serve as an engineered barrier addressing ground level or below ground
environmental contamination, including, but not limited to parking lots and other concrete or
asphalt barriers, and the clearing and grading of land;
d) Costs of rehabilitation, reconstruction or repair or remodeling of existing public or private
buildings, fixtures, and leasehold improvements; and the costs of replacing an existing public
building if pursuant to the implementation of a redevelopment project the existing public
building is to be demolished to use the site for private investment or devoted to a different
use requiring private investment; including any direct or indirect costs relating to Green
Globes or LEED certified construction elements or construction elements with an equivalent
certification;
e) Costs of the construction of public works or improvements, including any direct or indirect
costs relating to Green Globes or LEED certified construction elements or construction
elements with an equivalent certification subject to the limitations in Section 11-74.4-3(q)(4)
of the Act;
f) Costs of job training and retraining projects including the cost of welfare to work programs
implemented by businesses located within the Project Area;
g) 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 thereunder including interest accruing during the estimated period of construction of
any redevelopment project for which such obligations are issued and for a period not
exceeding 36 months following completion and including reasonable reserves related thereto;
h) To the extent the Village by written agreement accepts and approves the same, all or a
portion of a taxing district's capital costs resulting from the redevelopment project necessarily
incurred or to be incurred within a taxing district in furtherance of the objectives of the Plan.
i) An elementary, secondary or unit school district, or public library district's increased costs
attributable to assisted housing units will be reimbursed as provided in the Act;
j) Relocation costs to the extent that the Village determines that relocation costs shall be paid or
is required to make payment of relocation costs by federal or state law or by Section 74.4-
3(n)(7) of the Act;
k) Payment in lieu of taxes, as defined in the Act;
Costs of job training, retraining, 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 taxing districts, provided that such costs; (i) are
related to the establishment and maintenance of additional job training, advanced vocational
education or career education programs for persons employed or to be employed by
employers located in the Project Area; and (ii) when incurred by a taxing district or taxing
districts other than the Village, are set forth in a written agreement by or among the Village
and the taxing district or taxing districts, which agreement describes the program to be
undertaken including but not limited to, the number of employees to be trained, a description
12
of the training and services to be provided, the number and type of positions available or to
be available, itemized costs of the program and sources of funds to pay for the same, and the
term of the agreement. Such costs include, specifically, the payment by community college
districts of costs pursuant to Sections 3-37, 3-38, 3-40, and 3-40.1 of the Public Community
College Act, 110 ILCS 805/3-37, 805/3-38, 805/3-40 and 805/3-40.1, and by school districts of
costs pursuant to Sections 10-22.20a and 10-23.3a of the School Code, 105 ILCS 5/10-22.20a
and 5/10-23.3a;
m) Interest costs incurred by a redeveloper related to the construction, renovation or
rehabilitation of a redevelopment project provided that:
1) such costs are to be paid directly from the special tax allocation fund established
pursuant to the Act;
2) such payments in any one year may not exceed 30 percent of the annual interest costs
incurred by the redeveloper with regard to the redevelopment project during that year;
3) if there are not sufficient funds available in the special tax allocation fund to make the
payment pursuant to this provision, then the amounts so due shall accrue and be
payable when sufficient funds are available in the special tax allocation fund;
4) the total of such interest payments paid pursuant to the Act may not exceed 30 percent
of the total: (i) cost paid or incurred by the redeveloper for such redevelopment project;
(ii) redevelopment project costs excluding any property assembly costs and any
relocation costs incurred by the Village pursuant to the Act; and
5) up to 75 percent of the interest cost incurred by a redeveloper for the financing of
rehabilitated or new housing for low-income households and very low-income
households, as defined in Section 3 of the Illinois Affordable Housing Act.
n) Instead of the eligible costs provided for in (m) 2, 4 and 5 above, the Village may pay up to 50
percent of the cost of construction, renovation and/or rehabilitation of all low- and very low-
income housing units (for ownership or rental) as defined in Section 3 of the Illinois Affordable
Housing Act. If the units are part of a residential redevelopment project that includes units
not affordable to low- and very low-income households, only the low- and very low-income
units shall be eligible for benefits under the Act;
o) The costs of daycare services for children of employees from low-income families working for
businesses located within the Project Area and all or a portion of the cost of operation of day
care centers established by Project Area businesses to serve employees from low-income
families working in businesses located in the Project Area if the Project Area is located within a
municipality with a population of more than 100,000. For the purposes of this paragraph,
"low-income families" means families whose annual income does not exceed 80 percent of
the City, county or regional median income as determined from time to time by the United
States Department of Housing and Urban Development.
p) Unless explicitly provided in the Act, the cost of construction of new privately -owned buildings
shall not be an eligible redevelopment project cost;
13
q) The Act contains limitations on eligible redevelopment project costs related to a retail entity
initiating operations in the redevelopment project area while terminating operations at
another Illinois location within ten miles of the redevelopment project area, but outside of the
boundaries of the redevelopment project area municipality.
r) No cost shall be an eligible project cost if used to demolish, remove, or substantially modify a
historic resource, unless no prudent and feasible alternative exists. This provision does not
apply to a place or structure for which demolition, removal or modification is subject to
review by the preservation agency of a designated Certified Local Government.
s) If a special service area has been established pursuant to the Special Service Area Tax Act, 35
ILCS 235/0.01 et seq., then any tax increment revenues derived from the tax imposed
pursuant to the Special Service Area Tax Act may be used within the Project Area for the
purposes permitted by the Special Service Area Tax Act as well as the purposes permitted by
the Act.
Redevelopment Project Cost Budget
The eligible project cost line items that constitute the project budget of the Plan are listed in Table 1:
Estimated Redevelopment Project Costs. Costs may be allocated among lines items, as long as the total
costs do not exceed the total set forth in this Plan or are expressly authorized under the Act.
The maximum estimated gross eligible project cost over the life of the Project Area is $25 million. All
project cost estimates are in 2021 dollars. Any bonds issued to finance portions of the redevelopment
project may include an amount of proceeds sufficient to pay customary and reasonable charges
associated with issuance of such obligations, as well as to provide for capitalized interest and
reasonably required reserves.
Additional funding from other sources such as federal, state, county, or local grant funds may be
utilized to supplement the Village's ability to finance Redevelopment Project Costs identified
above. In the event there are costs savings in certain line items, the Village reserves the right to
re -allocate dollars among the line items listed below. The total reflects the maximum amount the
Village could spend over the 23 year life of the TIF; it does not reflect any expenditures or
commitments the Village has made.
14
Table 1:
Estimated Redevelopment Project Costs
Eligible Expense
Estimated Cost
Analysis, Planning, Engineering, Surveys, Legal, etc.
$500,000
Marketing Costs
$500,000
Property Assembly including Acquisition, Demolition, Site
Preparation, Relocation and Environmental Remediation
$15,000,000
Rehabilitation of Existing Buildings, Fixtures and Leasehold
Improvements
$1,000,000
Public Works and Improvements
$5,000,000
Financing Costs and Required Payments
(pursuant to the provisions of the Act)
$1,000,000
Interest Costs
$2,000,000
TOTAL REDEVELOPMENT PROJECT COSTS
$25,000,000
Sources of Funds
Funds necessary to pay for Redevelopment Project Costs and secure municipal obligations issued for
such costs are to be derived primarily from Incremental Property Taxes. Other sources of funds which
may be used to pay for Redevelopment Project Costs or secure municipal obligations are land
disposition proceeds, state and federal grants, investment income, private financing and other legally
permissible funds the Village may deem appropriate. The Village may incur redevelopment project costs
which are paid for from funds of the Village other than incremental taxes, and the Village may then be
reimbursed from such costs from incremental taxes. Also, the Village may permit the utilization of
guarantees, deposits and other forms of security made available by private sector developers.
Additionally, the Village may utilize revenues, other than State sales tax increment revenues, received
under the Act from one redevelopment project area for eligible costs in another redevelopment project
area that is either contiguous to, or is separated only by a public right-of-way from, the redevelopment
project area from which the revenues are received.
The Project Area is contiguous to the Busse/Elmhurst Road TIF, which was created in 2014. The Project
Area may be contiguous to or separated by only a public right-of-way from other redevelopment project
areas created under the Act. The Village may utilize net incremental property taxes received from the
Project Area to pay eligible redevelopment project costs, or obligations issued to pay such costs, in other
contiguous redevelopment project areas or project areas separated only by a public right-of-way, and
vice versa pursuant to the provisions of the Act.
The Project Area may become contiguous to, or be separated only by a public right-of-way from,
redevelopment project areas created under the Industrial Jobs Recovery Law (65 ILCS 5/11-74.6-1 et
seq.). If the Village finds that the goals, objectives and financial success of such contiguous
redevelopment project areas, or those separated only by a public right-of-way, are interdependent with
15
those of the Project Area, the Village may determine that it is in the best interests of the Village, and in
furtherance of the purposes of the Plan, that net revenues from the Project Area be made available to
support any such redevelopment project areas and vice versa. The Village therefore proposes to utilize
net incremental revenues received from the Project Area to pay eligible redevelopment project costs
(which are eligible under the Industrial Jobs Recovery Law referred to above) in any such areas, and vice
versa pursuant to the provisions of the Act.
Issuance of Obligations
The Village may issue obligations secured by Incremental Property Taxes pursuant to Section 11-74.4-7
of the Act. To enhance the security of a municipal obligation, the Village may elect to pledge its full faith
and credit through the issuance of general obligations bonds, but is not required to do so. Additionally,
the Village may provide other legally permissible credit enhancements to any obligations issued
pursuant to the Act.
The redevelopment project shall be completed, and all obligations issued to finance redevelopment
costs shall be retired, no later than December 31st of the year in which the payment to the Village
treasurer as provided in the Act is to be made with respect to ad valorem taxes levied in the twenty-
third calendar yearfollowing the year in which the ordinance approving the Project Area is adopted.
Also, although the life of the Project Area is 23 years, the final maturity date of any such obligations
which are issued may not be later than 20 years from their respective dates of issue. One or more series
of obligations may be sold at one or more times in order to implement this Plan. Obligations may be
issued on a parity or subordinated basis.
In addition to paying Redevelopment Project Costs, Incremental Property Taxes may be used for the
scheduled retirement of obligations, mandatory or optional redemptions, establishment of debt service
reserves and bond sinking funds. To the extent that Incremental Property Taxes are not needed for
these purposes, and are not otherwise required, pledged, earmarked or otherwise designated for the
payment of Redevelopment Project Costs, any excess Incremental Property Taxes shall then become
"surplus" as that term is defined in the Act and shall be distributed annually on a pro rata basis to taxing
districts having the authority to levy property taxes in the Project Area as provided by the Act.
NOTHING HEREIN SHALL BE CONSTRUED AS A COMMITMENT OF THE VILLAGE TO USE ITS FULL FAITH
AND CREDIT TO SUPPORT ANY TIF OBLIGATIONS ISSUED OR ANY AGREEMENTS ENTERED INTO
WITHOUT THE EXPRESS APPROVAL OF THE VILLAGE BOARD GIVEN IN COMPLIANCE WITH ILLINOIS
LAW.
Most Recent Equalized Assessed Valuation (EAV)
The purpose of identifying the most recent equalized assessed valuation ("EAV") of the Project Area is to
provide an estimate of the initial EAV which the Cook County Clerk will certify for the purpose of
annually calculating the incremental EAV and incremental property taxes of the Project Area. The 2019
EAV of all taxable parcels in the Project Area was approximately $4,109,573. This total EAV amount,
listed by parcel, is summarized in Appendix D. The EAV is subject to verification by the Cook County
Clerk. After verification, the final figure shall be certified by the Cook County Clerk, and shall become
the Certified Initial EAV from which all incremental property taxes in the Project Area will be calculated
by Cook County. The Plan has utilized the EAVs for the 2019 tax year which is the most recent
16
ascertainable EAV. If the 2020 EAV shall become available prior to the date of the adoption of the Plan
by the Elk Grove Village Board, the Village may update the Plan by replacing the 2019 EAV with the 2020
EAV.
Anticipated Equalized Assessed Valuation
Once the redevelopment project has been completed and the property is fully assessed, the estimated
EAV of real property within the Project Area is expected to be in the range of $12 to $16 million. This
estimate has been calculated assuming that the Project Area will be developed in accordance with
Figure 2: General Land Use Plan presented in Appendix A.
The estimated EAV assumes that the assessed value of property within the Project Area will increase
substantially as a result of new development and public improvements. Calculation of the estimated
EAV is based on the following assumptions: 1) the redevelopment of the Project Area will occur in a
timely manner, and 2) an average annual appreciation rate of 2.5% is assumed throughout the life of the
TIF.
Financial Impact on Taxing Districts
The Act requires an assessment of any financial impact of the Project Area on, or any increased demand
for services from, any taxing district affected by the Plan and a description of any program to address
such financial impacts or increased demand.
The following taxing districts presently levy taxes on properties located within the Project Area:
Cook County. The County has principal responsibility for the protection of persons and property, the
provision of public health services and the maintenance of County highways. The Cook County
Consolidated Elections levy supports local elections in Cook County.
Cook County Forest Preserve District. The Forest Preserve District is responsible for acquisition,
restoration and management of lands for the purpose of protecting and preserving open space in
the Village and County for the education, pleasure and recreation of the public.
Metropolitan Water Reclamation District of Greater Chicago. The Water Reclamation District
provides the main trunk lines for the collection of wastewater from cities, villages and towns, and
for the treatment and disposal thereof.
Elk Grove Township. Elk Grove Township is a basic division of a County with powers to levy taxes,
pass local ordinances and regulations, and provide various services as authorized by state statutes
and elected officials. The Elk Grove Township Supervisor is also the Supervisor of General Assistance.
The general assistance levy covers operating expenses and support for the needy that qualify under
the general assistance guidelines. The Elk Grove Township Road and Bridge levy covers
administrative costs, highway department employee salaries and costs to construct, maintain and
repair township roads and bridges, and is the responsibility of the Township Highway Commissioner.
Village of Elk Grove Village. The Village is responsible for the provision of a wide range of municipal
services, including police and fire protection; capital improvements and maintenance; water supply
and distribution; sanitation service; and building, housing and zoning codes, etc.
17
Village of Elk Grove Village Library. The Elk Grove Village Public Library is a component unit of the
Village of Elk Grove Village. The Library's mission is to facilitate the sharing of knowledge among
people of all ages by providing various format in an organized, accessible collection for the purpose
of enriching lives through accurate information, reading and entertainment within an inviting
facility.
Community Consolidated School District 59. General responsibilities of School District 59 include the
provision, maintenance and operations of educational facilities and the provision of educational
services for kindergarten through eighth grade. The district covers 24 square miles and serves a
population of approximately 75,000 residents.
Arlington Heights Township High School District 214. District 214 is the second largest high school
district in Illinois, providing secondary education (91h to 121h grades) in parts of Wheeling, Elk Grove
and Palatine townships. The District serves more than 280,000 residents in Arlington Heights,
Buffalo Grove, Elk Grove Village, Mt. Prospect, Prospect Heights, Rolling Meadows, Wheeling and
Des Plaines.
Harper Community College District 512. The Community College District is a unit of the State of
Illinois' system of public community colleges, whose objective is to meet the educational needs of
residents of the Village and other students seeking higher education programs and services.
Mt. Prospect Park District. The Park District is responsible for the provision, maintenance and
operation of park and recreational facilities within its jurisdiction and for the provision of recreation
programs.
Elk Grove Rural Fire Protection District. The Fire Protection District serves the unincorporated areas
of Arlington Heights, Des Plaines, Elk Grove Village and Mt. Prospect.
Northwest Mosquito Abatement District. The District serves an area of approximately 242 square
miles to abate mosquito nuisances using integrated pest management methods.
The proposed revitalization of the Project Area may create an increase in demand on public services and
facilities as properties within the Project Area are redeveloped, which may be supported in part through
user fees. New buildings will be built in accordance with current building and life safety codes and meet
Cook County stormwater management requirements. No residential units are contemplated within the
Project Area. Although the specific nature and timing of the private investment expected to be attracted
to the Project Area cannot be precisely quantified at this time, a general assessment of financial impact
can be made based upon the level of development and timing anticipated by the proposed Plan.
The land use plan anticipates that the Project Area will be developed entirely with commercial uses.
Thus, there will be no service impacts for local school districts. It is expected that any increases in
demand for the services and programs of the aforementioned taxing districts can be adequately
addressed by the existing services and programs maintained by these taxing districts. A portion of the
Project Budget has been allocated for public works and improvements, which may be used to address
potential public service demands associated with implementing the Plan.
Upon completion of the Plan, all taxing districts are expected to share the benefits of a substantially
improved tax base. When completed, developments in the Project Area will generate property tax
revenues for all taxing districts. Other revenues may also accrue to the Village in the form of sales tax,
business fees and licenses, and utility user fees.
18
Real estate tax revenues resulting from increases in the EAV, over and above the Certified Initial EAV
established with the adoption of the Plan, will be used to pay eligible redevelopment costs in the Project
Area. Following termination of the Project Area, the real estate tax revenues, attributable to the
increase in the EAV over the certified initial EAV, will be distributed to all taxing districts levying taxes
against property located in the Project Area. Successful implementation of the Plan is expected to result
in new development and private investment on a scale sufficient to overcome blighted conditions and
substantially improve the long-term economic value of the Project Area.
Completion of the Redevelopment Project and Retirement of Obligations to
Finance Redevelopment Project Costs
The Plan will be completed, and all obligations issued to finance redevelopment costs shall be retired, no
later than December 31st of the year in which the payment to the Village treasurer as provided in the
Act is to be made with respect to ad valorem taxes levied in the twenty-third calendar year following the
year in which the ordinance approving the Plan is adopted (assuming adoption in 2021, by December 31,
2045).
19
9. HOUSING IMPACT STUDY APPLICABILITY
As set forth in the Act, if the redevelopment plan for a redevelopment project area would result in the
displacement of residents from 10 or more inhabited residential units, or if the redevelopment project
area contains 75 or more inhabited residential units and a municipality is unable to certify that no
displacement will occur, the municipality must prepare a housing impact study and incorporated the
study in the redevelopment project plan.
The Project Area includes a commercial motel with units that are not considered long term residential
units. Because there are no occupied residential units within the Project Area, the Act does not require a
housing impact study be included in this Plan.
20
10. PROVISIONS FOR AMENDING THE PLAN
The Plan may be amended in accordance with the provisions of the Act.
21
11. COMMITMENT TO FAIR EMPLOYMENT PRACTICES AND
AFFIRMATIVE ACTION
The Village is committed to and will affirmatively implement the following principles with respect to this
Plan:
A) The assurance of equal opportunity in all personnel and employment actions, with respect to
the Redevelopment Project, including, but not limited to hiring, training, transfer, promotion,
discipline, fringe benefits, salary, employment working conditions, termination, etc., without
regard to race, color, sex, age, religion, disability, national origin, ancestry, sexual orientation,
marital status, parental status, military discharge status, source of income, or housing status.
B) This commitment to affirmative action and nondiscrimination will ensure that all members of
the protected groups are sought out to compete for all job openings and promotional
opportunities.
C) Redevelopers will meet the requirements of the Illinois Prevailing Wage Act if determined to be
applicable by the Illinois Department of Labor.
22
APPENDIX A
OAKTON/HIGGINS TIF
REDEVELOPMENT PROJECT AREA
FIGURES 1-2
A-1
D
N
OAKTON
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08261010100000
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26io'�,:
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190
F
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ys
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L
.... _.._.., _._.._.l ...........
_
COMMERCE
..
{{
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Legend
Roads N
Oakton/Higgins TIF Boundary
0FJ
', .. TIF Parcels
i
—..
Other Tax Parcels
Figure 1: Redevelopment Project Area Boundary
Elk Grove Village
Oakton/Higgins TIF Redevelopment Plan and Project
0 0.025 0.05 0.1 Miles
D
to
OAKTON
oazsto�olao
I
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COMMERCE
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Figure 2: General Land Use Plan
Elk Grove Village
Oakton/Higgins TIF Redevelopment Plan and Project
I%
Legend
Roads N
Oakton/Higgins TIF Boundary
Commercial -Industrial Mixed -Use Parcels '..
\ Other Tax Parcels
0 0.025 0.05 0.1 Miles
APPENDIX B
OAKTON/HIGGINS TIF
REDEVELOPMENT PROJECT AREA
LEGAL DESCRIPTION
1. ALL PART OF THE WEST HALF OF THE NORTHWEST QUARTER OF SECTION 26,
TOWNSHIP 41 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED
AS FOLLOWS:
2. BEGINNING ATTHE INTERSECTION OF THE CENTERLINE OF HIGGINS ROAD WITH THE
EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF SECTION 26
AFORESAID;
THENCE NORTH ALONG THE EAST LINE OF THE WEST HALF OF THE NORTHWEST
QUARTER OF SECTION 26 TO THE SOUTHWESTERLY LINE OF PROPERTY CONVEYED TO
THE NORTHERN ILLINOIS GAS COMPANY BY DEED DATED NOVEMBER 10, 1958 AND
RECORDED DECEMBER 18, 1958 AS DOCUMENT 17408538, SAID LINE BEING ALSO 82.5
FEET SOUTHWESTERLY OF AND PARALLEL WITH THE SOUTHWESTERLY LINE OF THE
PROPERTY ACQUIRED BY THE ILLINOIS STATE TOLL HIGHWAY COMMISSION BY DEED
DATED OCTOBER 31, 1956 AND RECORDED NOVEMBER 9, 1956 AS DOCUMENT
16750861;
4. THENCE NORTHWESTERLY ALONG SAID SOUTHWESTERLY LINE OF PROPERTY CONVEYED
TO THE NORTHERN ILLINOIS GAS COMPANY BY DEED DATED NOVEMBER 10, 1958 AND
RECORDED DECEMBER 18, 1958 AS DOCUMENT 17408538, TO THE CENTERLINE OF
OAKTON STREET, BEING ALSO THE NORTH LINE OF THE NORTHWEST QUARTER OF
SECTION 26 AFORESAID;
5. THENCE WEST ALONG SAID CENTERLINE OF OAKTON STREET, AND THE NORTH LINE OF
THE NORTHWEST QUARTER OF SECTION 26, TO THE CENTERLINE OF HIGGINS ROAD;
6. THENCE SOUTHWESTERLY ALONG THE CENTERLINE OF HIGGINS ROAD TO ITS
INTERSECTION WITH THE EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER
OF SECTION 26 AFORESAID, AND THE POINT OF BEGINNING,
7. ALL IN ELK GROVE VILLAGE, COOK COUNTY, ILLINOIS.
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APPENDIX C
OAKTON/HIGGINS TIF
REDEVELOPMENT PROJECT AREA
ELIGIBILITY STUDY
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Introduction
On March 23, 2021, the Elk Grove Village Board adopted Resolution No. 22-21 authorizing preparation
of an eligibility study related to the designation of an area known as the Oakton/Higgins Redevelopment
Project Area as a redevelopment project area pursuant to the definitions set forth under (65 ILCS 5/11-
74.4.1 et seg.), as amended (the "Act"). This legislation focuses on the elimination of blighted or rapidly
deteriorating areas through the implementation of a redevelopment plan. Pursuant to the notice
requirements contained in the Act, a copy of the ordinance was sent to affected tax districts on March
24, 2021.
This report summarizes the analyses and findings of the Consultant's work, which is the responsibility of
Camiros, Ltd. ("the Consultant"). The Consultant has prepared this report with the understanding that
the Village would rely 1) on the findings and conclusions of this report in proceeding with the
designation of the Study Area as a redevelopment project area under the Act, and 2) on the fact that the
Consultant, in determining the eligibility of the Project Area, has evaluated the Study Area in compliance
with the eligibility requirements set forth in the Act.
The Tax Increment Allocation Redevelopment Act (the "Act") permits municipalities to induce
redevelopment of eligible "blighted," "conservation" or "industrial park conservation areas" in
accordance with an adopted redevelopment plan. The Act authorizes the use of tax increment revenues
derived in a redevelopment project area for the payment or reimbursement of eligible Redevelopment
Project Costs as set forth in the Act.
The Act stipulates specific procedures, which must be adhered to, in designating a redevelopment
project area. One of those procedures is the determination that the area meets the statutory eligibility
requirements. At 65 Sec 5/11-74.-3(p), the Act defines a "redevelopment project area" as follows:
"... 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 combination of both blighted areas and conservation areas."
In adopting this legislation, the Illinois General Assembly found:
1. (at 65 Sec 5/11-74.4-2(a)) ...there exist in many municipalities within the State blighted,
conservation and industrial park conservation areas...; and
2. (at 65 Sec 5/11-74.4-2(b)) ...the eradication of blighted areas and the treatment and
improvement of conservation areas by... redevelopment projects is hereby declared to be
essential to the public interest.
The legislative findings were made on the basis that the presence of blight, or conditions that lead to
blight, is detrimental to the safety, health, welfare and morals of the public. The Act specifies certain
requirements, which must be met, before a municipality may proceed with implementing a
redevelopment project in order to ensure that the exercise of these powers is proper and in the public
interest.
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Blighted Areas
Pursuant to the Act, a "blighted area" refers to either an improved or vacant area within the boundaries
of a redevelopment project area where certain defined conditions are meaningfully present and
reasonably distributed.
Improved Areas
Improved areas meet the requirements for designation as a blighted area through documentation of the
presence of a combination of five or more of the following factors that are detrimental to the public
safety, health or welfare:
1. Dilapidation
2. Obsolescence
3. Deterioration
4. Presence of structures below minimum code standards
5. Illegal use of individual structures
6. Excessive vacancies
7. Lack of ventilation, light or sanitary facilities
8. Inadequate utilities
9. Excessive land coverage and overcrowding of structures and community facilities
10. Deleterious land use or layout
11. Environmental clean-up requirements
12. Lack of community planning
13. Lagging or declining equalized assessed value ("EAV")
Vacant Land
There are two sets of factors that determine whether vacant land meets the requirements for
designation as a "blighted area" under the Act. The sound growth and development of the area may be
impaired by the meaningful presence and reasonable distribution of two or more of the following
factors:
A. Obsolete platting
B. Diversity of ownership
C. Tax or special assessment delinquencies
D. Deterioration of structures or site improvements in neighboring areas
E. Environmental clean-up requirements
F. Lagging or declining equalized assessed value ("EAV")
Vacant land may also qualify for designation if the sound growth of the proposed redevelopment project
area is impaired by one of the following factors:
a. Area consists of one or more unused quarries, mines or strip mine ponds
b. Area consists of unused rail yards, rail tracks or railroad rights -of -way
c. Area is subject to chronic flooding pursuant to definitions contained in the Act
d. Area consists of an unused or illegal disposal site as defined in the Act
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e. Area was designated as a town or village center prior to November 1, 1999, but not developed
for that purpose
f. Area qualified as a blighted improved area immediately prior to becoming vacant
Conservation Areas
A "conservation area" is an improved area located within the territorial limits of the municipality in
which at least 50% of the structures have an age of 35 years or more. Such areas are not yet blighted
but, because of a combination of three or more of the following conditions that are detrimental to the
public safety, health, morals or welfare, may become a blighted area:
1. Dilapidation
2. Obsolescence
3. Deterioration
4. Presence of structures below minimum code standards
5. Illegal use of individual structures
6. Excessive vacancies
7. Lack of ventilation, light or sanitary facilities
8. Inadequate utilities
9. Excessive land coverage and overcrowding of structures and community facilities
10. Deleterious land use or layout
11. Lack of community planning
12. Environmental clean-up requirements
13. Lagging or declining equalized assessed value ("EAV")
Industrial Park Conservation Areas
To be designated as an "industrial park conservation area" the municipality must be a "labor surplus
municipality, as defined in the Act. The property contained in the redevelopment project area must be
zoned as industrial no later than the date the TIF designation ordinances are adopted. The area must
include both vacant land suitable for use as an industrial park and a blighted area or a conservation area
contiguous to such vacant land.
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Oakton/Higgins TIF Study Area
The Oakton/Higgins TIF Study Area, shown in Figure A: Study Area, is approximately 9.25 acres in size.
The Project Area is generally bounded by Higgins Road on the west, Oakton Street on the north,
Interstate 1-90 on the east and Brummel Avenue on the south. The Study Area consists of improved
property pursuant to the definitions contained in the Act.
The Project Area includes eight tax parcels which are all improved as commercial property. Specific uses
include a Jiffy Lube, McDonalds, an older motel complex and a large billboard oriented to 1-90 traffic. A
Village -owned parcel was most recently improved with a now -demolished gentlemen's club.
OAKTON
Figure A: Study Area
Elk Grove Village
Oakton/Higgins TIF Redevelopment Plan and Project
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y0
0 0.025 0.05 0,1 Mies
Eligibility Analysis Overview
An analysis was undertaken to determine whether any or all of the eligibility factors listed in the Act are
present in the Study Area, and if so, to what extent and in which locations. In order to accomplish this
evaluation the following tasks were undertaken:
1. Exterior survey of the condition and use of each building;
2. Field survey of environmental conditions involving parking facilities, public infrastructure, site
access, fences and general property maintenance;
3. Analysis of existing land uses and their relationships;
4. Comparison of surveyed buildings to zoning regulations;
5. Analysis of the current platting, building size and layout;
6. Analysis of building floor area and site coverage;
7. Review of previously prepared plans, studies, inspection reports and other data;
8. Analysis of real estate assessment data;
9. Review of available building permit records to determine the level of development activity in the
area; and
10. Review of building code violation and fire suppression system information.
Improved Property Condition Evaluation
This section summarizes the process used for assessing improved property conditions in the Study Area.
These standards and criteria were used to evaluate the existence of dilapidation or deterioration of
buildings and structures.
Building Components Evaluated
During the field survey, buildings were examined to determine whether they were in sound condition or
had minor, major, or critical defects. Building components examined were of two types:
Primary Structural Components
These include the basic elements of any building: foundation walls, load -bearing walls and columns,
roof, roof structures and facades.
Secondary Components
These are components generally added to the primary structural components and are necessary
parts of the building, including exterior and interior stairs, windows and window units, doors and
door units, interior walls, chimney, and gutters and downspouts.
Each primary and secondary component was evaluated separately as a basis for determining the overall
condition of individual buildings. This evaluation considered the relative importance of specific
components within a building and the effect that deficiencies in components will have on the remainder
of the building.
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Building Component Classification
The four categories used in classifying building components and systems and the criteria used in
evaluating structural deficiencies are described below.
Sound
Building components that contain no defects, are adequately maintained, and require no treatment
outside of normal ongoing maintenance.
Minor Deficient
Building components containing minor defects (loose or missing material or holes and cracks over a
limited area), which often may be corrected through the course of normal maintenance. Minor
defects have no real effect on either the primary or secondary components and the correction of
such defects may be accomplished by the owner or occupants. Examples include tuck pointing
masonry joints over a limited area or replacement of less complicated components. Minor defects
are not considered in rating a building as structurally substandard.
Major Deficient
Building components that contain major defects over a widespread area that would be difficult or
costly to correct through normal maintenance. Buildings in the major deficient category would
require replacement or rebuilding of components by people skilled in the building trades.
Dilapidated
Building components that contain severe defects (bowing, sagging, or settling to any or all exterior
components causing the structure to be out -of -plumb, or broken, loose or missing material and
deterioration over a widespread area) so extensive that the cost of repair would be excessive. The
cost of repairs needed to bring such buildings into sound condition would likely exceed the value of
the building and would not represent a prudent use of funds.
Final Building Rating
Based on the evaluation of building components, buildings were classified as follows:
Sound
Sound buildings can be kept in a standard condition with normal maintenance. Buildings so classified
have no minor defects.
Deteriorated
Deteriorated buildings contain defects that collectively are not easily correctable and cannot be
accomplished in the course of normal maintenance. Buildings classified as deteriorated have more
than one minor defect, but no major defects.
Dilapidated
Structurally substandard buildings contain defects that are so serious and so extensive that the
building may need to be removed. Buildings classified as dilapidated or structurally substandard
have two or more major defects.
Each condition identified in the Act for establishing eligibility of an improved area for designation as a
redevelopment project area was considered. Only factors whose presence could be documented as
being meaningfully present and reasonably distributed within the Study Area were used to establish
eligibility for designation of the Study Area as a redevelopment project area under the Act.
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Presence and Distribution of Eligibility Factors
The Study Area qualifies for designation as a conservation area under the criteria contained in the Act.
Aqe
The Study Area contains four principal buildings and a highway -oriented billboard structure. Three of the
five structures are at least 35 years of age according to Cook County property assessment records. Thus,
the required age threshold is met with 60% of structures being 35 years of age or older.
Conservation Area Eligibility Factors
The presence and distribution of eligibility factors related to the qualification of the Study Area for
designation as a conservation area are discussed below.
1. Dilapidation
As defined in the Act, "dilapidation" refers to an advanced state of disrepair or neglect of necessary
repairs to the primary structural components of buildings or improvements in such a combination
that a documented building condition analysis determines that major repair is required or the
defects are so serious and so extensive that rehabilitation is not practical or economically feasible.
Such structures typically exhibit major structural fatigue such as leaning or warped walls, severe
cracking in walls and foundations, and bowed or sagging roofs.
None of the buildings were determined to be dilapidated.
Conclusion: This condition was not found to be present and was not used to establish eligibility of
the Study Area as a conservation area under the Act.
2. Obsolescence
As defined in the Act, "obsolescence" refers to "the condition or process of falling into disuse, or
where structures have become ill suited for the original use." Obsolescence can occur in response to
a variety of factors. Most often, the standard of improvement for given uses becomes higher, over
the course of time. Uses that are not improved or upgraded periodically often become obsolete.
Market forces play a large role in the process of obsolescence. When the market for particular uses
declines, there is little or no financial incentive to upgrade properties. In the absence of
improvements made over the course of time, properties fall further and further behind current
standards and become obsolete.
Obsolete improved properties contain characteristics or deficiencies that limit their long-term sound
use or reuse. Obsolescence in improved properties is typically difficult and expensive to correct.
Obsolete building types have an adverse effect on nearby and surrounding development and detract
from the physical, functional and economic vitality of the area.
The Study Area includes four principal buildings: a 35-year old Jiffy Lube, a 33-year old McDonalds,
and a 57-year old 2-building motel complex. Given their age and type of construction both the Jiffy
Lube and motel properties are considered to be obsolete in terms of contemporary standards for
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such facilities. Additionally, the existing billboard structure is a non -conforming use under the
Village's zoning code.
Conclusion: This condition is meaningfully present reasonably distributed and was used to qualify the
Study Area for designation as a conservation area, impacting 80% of commercial structures.
3. Deterioration
Based on the definition given by the Act, deterioration refers to any physical deficiencies or disrepair
in buildings or site improvements requiring treatment or repair. As defined in the Act,
"deterioration" refers to (with respect to buildings) defects including but not limited to major
defects in the secondary building components such as doors, windows, porches, gutters and
downspouts, and fascia. With respect to surface improvements, the condition of roadways, alleys,
curbs, gutters, sidewalks, off-street parking, and surface storage areas may evidence deterioration,
including but not limited to surface cracking, crumbling, potholes, depressions, loose paving
material, and weeds protruding through paved surfaces.
Site deterioration was observed on all but one tax parcel to varying degrees. Additionally, recent
inspections have documented numerous examples of deterioration with respect to the two motel
buildings.
Conclusion: This condition is meaningfully present and reasonably distributed, and was used to
qualify the Study Area for designation as a conservation area under the Act.
4. Presence of Structures Below Minimum Code Standards
As defined in the Act, the "presence of structures below minimum code standards" refers to all
structures that do not meet the standards of zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not including housing and property maintenance
codes.
As referenced in the definition above, the principal purposes of governmental codes applicable to
properties are to require buildings to be constructed in such a way as to sustain safety of loads
expected from the type of occupancy; to be safe for occupancy against fire and similar hazards;
and/or to establish minimum standards essential for safe and sanitary habitation. Structures below
minimum code standards are characterized by defects or deficiencies that threaten health and
safety.
The Study Area was developed under Cook County zoning regulations many years ago. These
standards are generally less rigid than current Village zoning and life safety codes. The entire Study
Area has been annexed into Elk Grove Village and there are numerous examples of conditions that
do not meet current Village zoning, building and fire safety requirements.
The Jiffy Lube property lacks parking lot lighting, which is required. Existing parking stalls are also
not in compliance with Village zoning requirements. Fire safety inspections identified open electrical
boxes, and unsafe use of extension cords among other concerns. Besides a variety of issues with
respect to electrical code compliance, a 2018 inspection identified plumbing code issues that require
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correction. In addition, none of the four existing driveway aprons are compliant with Elk Grove
Village standards.
Code issues were also identified with respect to the McDonald's. The size and height of the free-
standing sign exceeds Village sign code standards. The dumpster corral is in a location not permitted
under the Village's zoning code. Fire alarm coverage will be required now that the property has
been annexed to the Village.
The highway -oriented billboard is not permitted under the Village's sign code. It is also located on a
tax parcel without direct street access.
The most serious code compliance issues relate to the two -building Days Inn property. Recent
inspections identified numerous code violations including a gas leak, electrical code violations,
stored materials blocking exit doors, missing exit signage and lack of fire extinguishers, exposed
electrical wiring, missing smoke detectors, water damaged ceiling tiles, and missing drywall, and a
variety of life -safety issues related to guest bathrooms, water temperature and backflow protection.
Several public areas also failed to meet current Illinois handicap accessibility standards.
Conclusion: This condition is meaningfully present and reasonably distributed within the Study Area
and was used to establish eligibility as a conservation area under the Act.
S. Illegal Use of Structures
There is an illegal use of a structure when structures are used in violation of federal, state or local
laws.
Conclusion: This condition was not found to be present within the Study Area and was not used to
establish eligibility as a conservation area under the Act.
6. Excessive Vacancies
As defined in the Act, "excessive vacancies" refers to the presence of buildings that are unoccupied
or under-utilized and that represent an adverse influence on the area because of the frequency,
extent, or duration of the vacancies.
All buildings are currently in use.
Conclusion: This condition was not determined to be present and was not used to qualify the Study
Area for designation as a conservation area under the Act.
7. Lack of Ventilation, Light, or Sanitary Facilities
As defined in the Act, "lack of ventilation, light, or sanitary facilities" refers to the absence of
adequate ventilation for light or air circulation in spaces or rooms without windows, or that require
the removal of dust, odor, gas, smoke, or other noxious airborne materials. Inadequate natural light
and ventilation means the absence or inadequacy of skylights or windows for interior spaces or
rooms, and improper window sizes and amounts by room area to window area ratios. Inadequate
sanitary facilities refer to the absence or inadequacy of garbage storage and enclosure, bathroom
facilities, hot water and kitchens, and structural inadequacies preventing ingress and egress to and
from all rooms and units within a building.
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Conclusion: This condition was not identified as being present within the Study Area and was not
used to establish eligibility as a conservation area under the Act.
8. Inadequate Utilities
As defined in the Act, "inadequate utilities" refers to underground and overhead utilities such as
storm sewers and storm drainage, sanitary sewers, water lines, and gas, telephone, and electrical
services that are shown to be inadequate. Inadequate utilities are those that are (i) of insufficient
capacity to serve the uses in the redevelopment project area, (ii) deteriorated, antiquated, obsolete,
or in disrepair, or (iii) lacking within the redevelopment project area.
The Study Area was developed under Cook County zoning regulations and none of the tax parcels
are currently connected to the Village water and sanitary sewer system. Only the McDonalds
property appears have any provision for stormwater management. The presence of catch basins or
other stormwater management infrastructure was not observed on the remaining tax parcels.
Demolition of the property acquired by the Village included capping an existing water well.
Conclusion: This condition is meaningfully present and reasonably distributed within the Study Area.
Therefore, it was used to establish eligibility as a conservation area under the Act.
9. Excessive Land Coverage and Overcrowding of Structures and Community Facilities
As defined in the Act, "excessive land coverage and overcrowding of structures and community
facilities" refers to the over -intensive use of property and the crowding of buildings and accessory
facilities within a given area. Examples of problem conditions warranting the designation of an area
as one exhibiting excessive land coverage are (i) the presence of buildings either improperly situated
on parcels or located on parcels of inadequate size and shape in relation to present-day standards of
development for health and safety and (ii) the presence of multiple buildings on a single parcel.
The motel complex includes two buildings located on a single tax parcel in violation of current
Village standards. There is also a small accessory storage building on the Jiffy Lube property that
similarly is not allowed under the Village's zoning code. The motel appears to cater to truck drivers
and is served by parking that is inadequate to accommodate large truck cabs. It is somewhat unclear
whether the trucks parked on site are for truckers renting rooms. The tax parcel owned by Nicor Gas
is also heavily parked and it is unclear whether Days Inn guests are also using this property for
parking.
The location of the Jiffy Lube building on its lot and the presence of four driveway aprons (which are
non -compliant with Village code) have resulted in parking stalls and drive aisles that also fail to meet
current development standards.
Conclusion: This condition is present to a meaningful extent and reasonably distributed and was used
to qualify the Study Area for designation as a conservation area under the Act.
10. Deleterious Land Use or Layout
As defined in the Act, "deleterious land use or layout" refers to the existence of incompatible land
use relationships, buildings occupied by an inappropriate mix of uses, uses considered to be noxious,
offensive, or unsuitable for the surrounding area, uses which are non -conforming with respect to
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current zoning, platting which does not conform to the current land use and infrastructure pattern,
parcels of inadequate size or shape for contemporary development, and single buildings located on
multiple parcels which have not been consolidated into a single building site.
Only the Jiffy Lube parcel was identified as being of inadequate shape and size to accommodate
contemporary development. However, this condition also applies to the large billboard structure,
which is located on a tax parcel without direct street access.
Conclusion: Because this condition is present to a limited extent, it was not used to qualify the
improved portion of the Study Area as a conservation area under the Act.
11. Environmental Clean -Up Requirements
As defined in the Act, "environmental clean-up" means that the area has incurred Illinois
Environmental Protection Agency or United States Environmental Protection Agency remediation
costs for, or a study conducted by an independent consultant recognized as having expertise in
environmental remediation has determined a need for, the clean-up of hazardous waste, hazardous
substances, or underground storage tanks required by State or Federal law, provided that the
remediation costs constitute a material impediment to the development or redevelopment of the
redevelopment project area. No existing environmental surveys were conducted or found that
identify sites within the Study Area as environmentally contaminated.
Conclusion: This factor was not found to be present within the Study Area.
12. Lack of Community Planning
As defined in the Act, "lack of community planning" means that the proposed redevelopment
project area was developed prior to or without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption by the municipality of a comprehensive
or other community plan or that the plan was not followed at the time of the area's development.
This condition must be documented by evidence of adverse or incompatible land -use relationships,
inadequate street layout, improper subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence demonstrating an absence of effective
community planning.
The Elk Grove Business Park was developed as a planned manufacturing district more than 50 years
ago, and as a result was developed in accordance with a community plan. Until recently, the
majority of property in the Study Area was unincorporated. However, it was identified in Elk Grove
Village Industrial/Commercial Revitalization Master Plan Update 2011 as a redevelopment area
should it be annexed into the Village in the future. As noted previously, the current development
pattern includes obsolete building types that are ill -suited for adaptive reuse, the area is
inadequately served by utility infrastructure and the majority of buildings do not meet Village
building and development code requirements.
Conclusion: This condition was used to qualify the improved portion of the Study Area as a
conservation area under the Act because it is meaningfully present and reasonably distributed as
required by the Act.
13. Lagging or Declining Equalized Assessed Value
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As defined in the Act, this condition is present when the Study Area can be described by one of the
three conditions 1) the total equalized assessed value ("EAV") has declined in three of the last five
years; 2) the total EAV is increasing at an annual rate that is less than the balance of the municipality
for three of the last five calendar years; or 3) the total EAV is increasing at an annual rate that is less
than the Consumer Price Index for all Urban Consumers published by the United States Department
of Labor or successor agency for three of the last five calendar years for which information is
available.
As shown in Table A: Comparative Increase in Equalized Assessed Value (EAV), the EAV of the Study
Area declined in three of the last five years. Thus, the necessary standard for establishing the
presence of this factor has been met.
Table A: Comparative Increase in Equalized Assessed Value (EAV)
2019 EAV
2018 EAV
2017 EAV
2016 EAV
2015 EAV
All Study Area PINS
$4,109,574
$3,119,373
$3,174,883
$2,966,450
$3,025,505
% Change from
Prior Year
31.7%
-1.7%
7.0%
-2.0%
-0.1%
Elk Grove Village,
Excluding Study Area
$2,115,562,689
$1,792,105,248
$1,781,203,868
$1,772,766,046
$1,586,732,975
% Change from Prior
Year
17.8%
0.6%
0.5%
11.7%
-2.0%
CPI % Calendar Year
Change from Prior Year
2.2%
1.1%
1.7%
1.9%
0.0%
Source: Cook County Clerk, U.S. Bureau of Labor Statistics
Conclusion: This factor was used to qualify the Study Area as a conservation area under the Act.
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Conclusion
On the basis of the above review of current conditions, the Study Area meets the age threshold for
qualification as a conservation area since more than 50% of the buildings within the Study Area are 35
years of age or older. A minimum of three of the thirteen eligibility factors are required to qualify as a
conservation area under the Act, once this age threshold is met. The Study Area exhibits the presence of
seven conservation area eligibility factors that are meaningfully present and reasonably distributed
within the Study Area, as determined in the individual analysis of each eligibility factor. One other
eligibility factor was found to be present to a more limited extent. The prevalence of the applicable
conservation area eligibility factors are summarized in Table 8: Conservation Area Eligibility Factor
Summary.
Table B: Conservation Area Eligibility factor Summary
Conservation Area Eligibility Factors
Present to a
Major Extent
Present to a
limited Extent
(At least three factors must be meaningfully present and reasonably distributed)
1
Dilapidation
2
Obsolescence
d
3
Deterioration
V
4
Presence of structures below minimum code standards
V
5
Illegal use of structures
6
Excessive vacancies
7
Lack of ventilation, light or sanitary facilities
8
Inadequate Utilities
9
Excessive land coverage or overcrowding of community facilities
d
10
Deleterious land use or layout
V
11
Lack of community planning
12
Environmental clean-up requirements
13
Lagging or declining equalized assessed valuation
d
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