HomeMy WebLinkAboutORDINANCE - 2535 - 2/11/1997 - GROVE MALL REDEV.PROJECT AREASTATE OF ILLINOIS )
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COUNTIES OF COOK AND DU PAGE)
CERTIFICATION OF ORDINANCES AND MINUTES
I, the undersigned, do hereby certify that I am the duly qualified and
acting Village Clerk of the Village of Elk Grove Village, Cook and DuPage
Counties, Illinois (the "Municipality"); and as such officer, I am the
keeper of the journal of proceedings, books, records, minutes, and files of
the Municipality and of the President and Board of Trustees (the "Corporate
Authorities") thereof.
I do further certify that the foregoing constitutes a full, true, and
complete transcript of the minutes of the legally conveyed regular meeting
of the Corporate Authorities held on the 11Th day of February 1997,
insofar as same relates to the adoption of an ordinance entitled:
AN ORDINANCE of the Village of Elk Grove Village, Cook
and DuPage Counties, Illinois, approving a tax increment
redevelopment plan and redevelopment project for the
Grove Mall Shopping Center Redevelopment Project Area.
true, correct, and complete copies of which said ordinance as adopted at
said meeting appear in the foregoing transcript of the minutes of said
meeting.
I do further certify that the deliberations of the Corporate
Authorities on the adoption of said ordinance was taken openly; that the
votes on the adoption of said ordinance was taken openly; that said meeting
was held at a specified time and place convenient to the public; that
notice of said meeting was duly given to all newspapers, radio or
television stations, and other news media requesting such notice; that an
agenda for said meeting was posted at the location where said meeting was
held and at the principal office of the Corporate Authorities at least 48
hours in advance of the holding of said meeting, and that said meeting was
called and held and said ordinance passed in strict accordance with the
provisions of "AN ACT in relation to meetings", approved July 11, 1957, as
amended, the Illinois Municipal Code, as amended, except as said Act and
said Code may be validly superseded by the home rule powers of the Village,
and the procedural rules of the Corporate Authorities.
IN WITNESS WHEREOF, I have hereunto affixed my official signature and
the seal of the Municipality, this 12th day of February 1997.
Patricia S. Smith
Village Clerk of the Village of Elk
(SEAL) Grove Village, Counties of Cook and
DuPage, Illinois
roll.
EXTRACT OF MINUTES of a regular public meeting of the
President and Board of Trustees of the Village of Elk Grove
Village, Cook and DuPage Counties, Illinois, held at the Municipal
Building, Elk Grove Village, Illinois, at 8:00 p.m. on the 11th
day of February 199-L.
The President called the meeting to order and directed the Village Clerk to call the
Upon roll call, the following answered present:D. Gallitano President, and Trustees
N. Czarnik, C. Johnson, P. Feichter, S. Lissner, J. Petri, P. Rettberg
The following were absent: None
The President and Board of Trustees then discussed the redevelopment objectives of
the Village relating to the redevelopment of certain territory located therein and the need
for governmental assistance to alleviate blighting conditions in the Village, thereby
necessitating such redevelopment.
Trustee Rettberg presented and the Village Attorney explained the following
ordinance:
555327.01.01
2023836-TVM
Trustee Rettberg moved and Trustee Feichter seconded the motion
that said ordinance as presented and read by the Municipal Clerk be adopted.
After a full and complete discussion thereof including a public recital of the nature of
the matter being considered and such other information as would inform the public of the
business being conducted, the President directed that the roll be called for a vote upon the
motion to adopt the ordinance as read.
Upon the roll being called, the following voted AYE:
Trustees P. Feichter, C. Johnson, S. Lissner, J. Petri, P. Rettberg,
N. Czarnik
NAY: None
Whereupon the President declared the motion carried and the ordinance adopted, and
henceforth did approve and sign the same in open meeting and did direct the Municipal
Clerk to record the same in full in the records of the President and Board of Trustees of the
Village of Elk Grove Village, Cook and DuPage Counties, Illinois.
Trustee Rettberg presented and the Village Attorney explained the following
ordinance:
ORDINANCE NO. 2535
AN ORDINANCE of the Village of Elk Grove Village, Cook and
DuPage Counties, Illinois, approving a Tax Increment
Redevelopment Plan and Redevelopment Project for the Grove
Mall Shopping Center Redevelopment Project Area.
WHEREAS the President and Board of Trustees (the "Corporate Authorities") of the
Village of Elk Grove Village, Cook and DuPage Counties, Illinois (the "Municipality"), have
heretofore determined that as a result of the existence of blighted areas and areas requiring
conservation within the Municipality, there is an excessive and disproportionate expenditure
of public finds, inadequate public and private investment, unmarketability of property,
growth in delinquencies and crime, and housing and zoning law violations in such areas
together with an abnormal exodus of families and business so that the decline of these areas
impairs the value of private investments and threatens the sound growth and the tax base of
the Municipality and the taxing districts having the power to tax real property in the
Municipality (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 blighting
conditions in the Municipality need to be eradicated and conservation measures instituted and
that redevelopment of a portion (the "Proposed Area") of the Municipality be undertaken
and that to remove and alleviate adverse conditions in the Proposed Area it is necessary to
encourage private investment and restore and enhance the tax base of the Municipality and
the Taxing Districts by such redevelopment; and
WHEREAS the Municipality has heretofore evaluated various lawfully available
programs to provide such assistance and has determined that the use of tax increment
allocation financing pursuant to the Tax Increment Allocation Redevelopment Act, as
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amended (65 ILCS 5/11-74.4-1 et seq.) (the "TIF Act"), is necessary to achieve the
redevelopment goals of the Municipality for the Proposed Area; and
WHEREAS the Municipality has heretofore caused to be conducted an eligibility study
to determine whether the Proposed Area qualifies as a "blighted area" pursuant to the TIF
Act, which study was conducted by Trkla, Pettigrew, Allen & Payne, Inc., Chicago, Illinois
(the "Urban Planner"); and
WHEREAS the Urban Planner is a planning services firm having a national reputation
for expertise in tax increment allocation and redevelopment financing in the State of Illinois;
and
WHEREAS the Urban Planner has heretofore concluded and has advised the
Municipality that the Proposed Area qualifies as a "blighted area" under Section 11-74.4-3
of the TIF Act; and
WHEREAS the Municipality has further caused the preparation of and made available
for public inspection a proposed redevelopment plan and project for the Proposed Area (the
"Plan" and "Project"); and
WHEREAS the Plan and Project sets forth in writing the program to be undertaken to
accomplish the objectives of the Municipality and includes estimated redevelopment project
costs proposed for 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 Proposed Area on or any increased
demand for services from any taxing district affected by the Plan and any program to
address 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 Proposed Area, an estimate as to the equalized assessed valuation after redevelopment
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and the general land uses to apply in the Proposed Area , a commitment to fair employment
practices and an affirmative action plan, and the Plan and Project accordingly complies in all
respects with the requirements of the TIF Act; and
WHEREAS pursuant to Section 11-74.4-5 of the TIF Act, the Corporate Authorities by
ordinance called a public hearing (the "Hearing") relative to the Plan and Project and the
designation of the Proposed Area as a redevelopment project area under the TIF Act and
fixed the time and place for such Hearing, being December 19, 1996, at the Elk Grove
Village Municipal Building, in the Village; and
WHEREAS due notice in respect to such Hearing was given pursuant to Section 11-
74.4-6 of the TIF Act, said notice, together with a copy of the Plan, and the name of a
person to contact for further information, being given to taxing districts and to the
Department of Commerce and Community Affairs of the State of Illinois by certified mail
on october 31 , 1996, by publication on November 25 1996, andDecember 5 , 1996, and
by certified mail to taxpayers within the Proposed Area on November 27, 1996; and
WHEREAS the Municipality has heretofore convened a joint review board as required
by and in all respects in compliance with the provisions of the TIF Act; and
WHEREAS the joint review board has met at the times and as required by the TIF Act
and has reviewed the public record, planning documents and a form of proposed ordinance
approving the Plan and Project; and
WHEREAS the joint review board has adopted by a majority vote a recommendation
that the Municipality proceed to implement the Plan and Project and to designate the
Proposed Area as a redevelopment project area under the TIF Act; and
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WHEREAS the joint review board based its decision to approve the proposal on the
basis of the Proposed Area satisfying the eligibility criteria defined in Section 11-74.4-3 of
the TIF Act, all as provided in Section 11-74.4-5(b) of the TIF Act; and
WHEREAS the Municipality held the Hearing on December 19, 1996, at the Elk Grove
Village Municipal Building; and
WHEREAS the Hearing was finally adjourned on that date; 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 Municipality heard and
determined all protests and objections at the Hearing; and
WHEREAS the Plan and Project sets forth in writing the program to be undertaken to
accomplish the objectives of the Municipality, and the Corporate Authorities have reviewed
the information concerning such factors presented at the Hearing and have reviewed other
studies and are generally informed of the conditions in the Proposed Area which could cause
the area to be a "blighted 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 the Proposed Area would
reasonably be anticipated to be developed in accordance with public goals stated in the Plan
and Project without the adoption of the proposed Plan and Project; and
WHEREAS the Corporate Authorities have reviewed the conditions pertaining to real
property in the Proposed Area to determine whether the Proposed Area is contiguous and
in
that there exist conditions that cause the Proposed Area to be classified as a blighted area
under the TIF Act; 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
also the existing comprehensive plan for development of the Municipality as a whole to
determine whether the proposed Plan and Project conform to the such comprehensive plan
of the Municipality; and
WHEREAS the Corporate Authorities have heretofore, and it hereby expressly is,
determined that the Municipality has in all respects complied with the requirements of the
TIF Act in such actions taken to date as hereinabove recited;
NOW THEREFORE Be It Ordained by the President and Board of Trustees of the
Village of Elk Grove Village, Cook and DuPage Counties, Illinois, 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 is described in Exhibit B attached hereto and
incorporated herein as if set out in full by this reference. The map of the Proposed
Area is depicted on Exhibit C attached hereto and incorporated herein as if set out in
full by this reference.
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(b) There exist conditions which cause the Proposed Area to be subject to
designation as a redevelopment project area under the TIF Act and to be classified as a
blighted area as defined in Section 11-74.4-3(a) 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 in accordance with public goals stated in the Plan without
the adoption of the Plan.
(d) The Plan and Project conform to the comprehensive plan for the
development of the Municipality as a whole.
(e) As set forth in the Plan and in the testimony at the public hearing, the
estimated date of completion of the Project is April 1 , 2019, and the
estimated date of the retirement of all obligations incurred to finance redevelopment
project costs as defined in the Plan is April 1 -12019.
(g) The parcels of real property in the Proposed Area are contiguous, and the
Proposed Area is not less in the aggregate than 1 and 1/2 acres.
Section 2. Exhibits Incorporated by Reference. The Plan and Project which were
the subject matter of the public hearing held on December 19, 1996, 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.
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.
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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.
Passed this 17th day of February 1997 .
Approved: February 11 , 1997 .
Dennis J. Gallitano
President
AYES: N. Czarnik, C. Johnson, P. Feichter, S. Lissner, J. Petri, P. Rettberg
NAYS:
Recorded in Municipal Records: February 12 , 1997 .
Attest:
Patricia S. Smith
Municipal Clerk
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EXHIBIT A — LEGAL DESCRIPTION
Grove Mall Shopping Center
Redevelopment Plan
Elk Grove Village, Illinois
The boundaries of the Project Area have been drawn to include only those contiguous parcels of
real property and improvements substantially benefited by the proposed Redevelopment Project to
be undertaken as part of this Redevelopment Plan. The boundaries of the Project Area are shown in
Figure 1, Boundary Map, and are generally described as follows:
The Project Area encompasses an area of approximately 23.9 acres, including rights-of-way, and is
generally bounded by Biesterfield Road on the north; Arlington Heights Road on the east; the
Village Grove Apartments on the south; and the Village Administration Building, Police HDQ,
Central Fire Station and Village Library campus on the west.
The boundaries of the Project Area are legally described as follows:
A TRACT OFLAND IN THE NORTHEAST QUARTER OFSECTION32, TOYVNSHIP
41 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, SAID TRACT OF
LAND BEING MORE PAR TICULARL Y DESCRIBED AS FOLLOWS:
BEGINNINGAT THE INTERSECTION OF THE EASTWARD EXTENSION OF THE
SOUTH LINE OF THE NORTH 1250.00 FEET OF THE SOUTHWEST QUARTER OF THE
NORTHEAST 0 UARTER OF SAID SECTION 32 WITH THE EAST LINE OF ARLINGTON
HEIGHTS ROAD;
THENCE WESTALONG SAID EASTIVARD EXTENSIONAND ALONG SAID SOUTH
LINE, CROSSING ARLINGTON HEIGHTS ROAD, TO AN INTERSECTION WITH THE
WEST LINE OF THE EAST 419.00 FEET OF THE SOUTHWEST QUARTER OF THE
NORTHEAST QUARTER OFSAID SECTION32;
THENCE NORTHALONG SAID WEST LINE TO AN INTERSECTION WITH THE
SOUTH LIVE OF THE NORTH 1170.00 FEET AS MEASURED ALONG THE EAST LINE
OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER, OF SAID SECTION
32;
THENCE WEST ALONG SAID SOUTH LINE TO AN INTERSECTION WITH THE
WEST LINE OF THE EAST 810.00 FEET, AS JvEASURED ALONG THE NORTH LII\'E OF
THE NORTH 850.00 FEET, AS MEASURED ALONG THE EAST LIVE OF THE
SOUTHWEST QUARTER OF THE NORTHEAST QUARTER, OFSAID SECTION32;
THENCE NORTHALONG SAID WEST LINEAND THE NORTHWARD EXTENSION
THEREOF, CROSSING BIESTERFIELD ROAD, TO AN INTERSECTION WITH THE
NORTH LINE OF SAID BIESTERFIELD ROAD;
THENCE EAST ALONG SAID NORTH LINE AND THE EASTFVARD EXTENSION
THEREOF, CROSSINGARLLVGTONHEIGHTS ROAD, TOANINTERSECTION [VITHTHE
NORTHiVARD EXTENSION OF THEAFOREYIENTIONED EAST LINE OFARLINGTON
HEIGHTS ROAD;
THENCE SOUTH ALONG SAID NORTHWARD EXTENSION AND ALONG SAID
EAST LINE, CROSSING JOHN F. KENNEDY BOULEVARD AND LONSDALE ROAD, TO
THE POINT OF BEGINNING;
ALL LV COOK COUNTY, ILLINOIS.
EXHIBIT B — STREET LOCATION
The approximate street location and description of the Redevelopment Project Area is
as follows:
The Project Area encompasses an area of approximately
23.9 acres, including rights-of-way, and is generally
bounded by Biesterfield Road on the north; Arlington
Heights Road on the east; the Village Grove Apartments
on the south; and the Village Administration Building,
Police HDQ, Central Fire Station and Village Library
campus on the west.
Biesterfield Road
202 Block No.
-001 Parcel No.
EXHIBIT C — MAP
'i—
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10.24.96
Figure 7
Project Boundary North KD
TOWN CENTER
TAX INCREMENT FINANCING
REDEVELOPMENT PROJECT AND PLAN
Elk Grove Village, Illinois
October 31, 1996
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TOWN CENTER
TAX INCREMENT FINANCING
REDEVELOPMENT PROJECT AND PLAN
Elk Grove Village, Illinois
This Redevelopment Plan is subject to review
and comment and may be revised
after comment and hearing.
Prepared by:
Trkla, Pettigrew, Allen & Payne, Inc.
October 31, 1996
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0 TABLE OF CONTENTS
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I. INTRODUCTION...........................................................................................................................1
A. TAX INCREMENT FINANCING...................................................................................2
B. THE TOWN CENTER REDEVELOPMENT PROJECT AREA...................................3
C. THE TOWN CENTER REDEVELOPMENT PROJECT AND PLAN .........................4
II. LEGAL DESCRIPTION...............................................................................................................6
III. ELIGIBILITY CONDITIONS...................................................................................................8
IV. GOALS AND OBJECTIVES
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A. GENERAL GOALS..........................................................................................................9
B. DEVELOPMENT AND DESIGN OBJECTIVES...........................................................9
V. REDEVELOPMENT PROJECT...............................................................................................13
..e A. REDEVELOPMENT OBJECTIVES.............................................................................13
VI. LACK OF GROWTH AND DEVELOPMENT THROUGH INVESTMENT BY
PRIVATE ENTERPRISE................................................................................................................23
VII. FINANCIAL IMPACT.............................................................................................................24
VIII. DEMAND ON TAXING DISTRICT SERVICES...............................................................25
IX. CONFORMITY OF THE REDEVELOPMENT PLAN AND PROJECT TO THE
COMPREHENSIVE PLAN FOR THE DEVELOPMENT OF THE VILLAGE AS A
WHOLE..............................................................................................................................................26
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B.
REDEVELOPMENT IMPROVEMENTS AND ACTIVITIES....................................14
C.
GENERAL LAND -USE PLAN......................................................................................15
D.
REDEVELOPMENT PROJECT COSTS......................................................................15
E.
SOURCES OF FUNDS TO PAY REDEVELOPMENT PROJECT COSTS...............20
F.
ISSUANCE OF OBLIGATIONS....................................................................................21
G.
VALUATION OF THE TOWN CENTER PROJECT AREA......................................21
VI. LACK OF GROWTH AND DEVELOPMENT THROUGH INVESTMENT BY
PRIVATE ENTERPRISE................................................................................................................23
VII. FINANCIAL IMPACT.............................................................................................................24
VIII. DEMAND ON TAXING DISTRICT SERVICES...............................................................25
IX. CONFORMITY OF THE REDEVELOPMENT PLAN AND PROJECT TO THE
COMPREHENSIVE PLAN FOR THE DEVELOPMENT OF THE VILLAGE AS A
WHOLE..............................................................................................................................................26
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X. PHASING AND SCHEDULING................................................................................................27
XI. PROVISIONS FOR AMENDING THIS REDEVELOPMENT PLAN..............................28
XII. AFFIRMATIVE ACTION PLAN...........................................................................................29
EXHIBIT I: Town Center Tax Increment Financing Redevelopment Project Area
Eligibility Report
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TABLES AND FIGURES
TABLES
TABLE 1: ESTIMATED REDEVELOPMENT PROJECT COSTS...............................................20
TABLE 2: 1995 EAV BY TAX PARCEL: PROJECT AREA.......................................................21
FIGURES
FIGURE 1: BOUNDARY MAP..........................................................................................................7
FIGURE 2: LAND -USE PLAN.........................................................................................................16
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I. INTRODUCTION
The Village of Elk Grove Village (the "Village") is a community of approximately 34,000 persons
located 22 miles north and west of downtown Chicago. The Village consists of approximately 10.7
square miles and is generally bordered on the north by the Ned Brown Forest Preserve and Busse
Woods, by Chicago -O'Hare International Airport on the east, and by Itasca and Wood Dale on the
south. Schaumburg is the Village's western neighbor. The Village is comprised of primarily
residential land uses west of Wooddale/Tonne Road. East of Wooddale/Tonne Road the Village
becomes one of the world's largest light industrial/office parks.
The Grove Mall, located near the southwest comer of Biesterfield Road and Arlington Heights
Road on the Village's west side, was once a major shopping destination for Village residents. Two
major grocery stores, a hardware store and other popular businesses attracted many customers to the
area. However, over the past several years, a number of forces impacted the mall and weakened its
ability to remain in business. Businesses began relocating elsewhere and maintenance of the mall
was neglected, further contributing to its poor condition. The result was a blighted property which
left a void in the center of the community.
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The Grove Mall was designed and built in the early 1960s. For many years, it was the main
shopping center of the Village. The Grove Mall served the Village well for 20 years. When Jewel
relocated their store to the new Elk Crossing center in 1987, Jewel retained its lease at the Grove
Mall location. The owner of the Grove Mall attempted to negotiate with Jewel to terminate the
lease so that a new viable tenant could occupy the space. The owner of the mall and Jewel were
unable to come to terms. As a result, the lack of an active anchor tenant contributed heavily to the
decline of the property.
A further hindrance to the success of the property was the introverted design of the mall. This
design, which was popular in the 1950s, had an especially negative impact on the businesses in the
mall's interior during the 1980s and 1990s. With no anchor tenant to attract a regular flow of
shoppers and with no visibility from major roads, these businesses located elsewhere. Maintenance
of the property was nearly nonexistent, leading to the deteriorated parking lot and unoccupied
buildings. Inevitably, the community began taking notice of a deteriorating and empty shopping
center in the heart of the Village.
In response to the community's concerns, the Village began meeting with the owner of the mall in
1989 in an attempt to negotiate a cooperative plan to revitalize the mall. At one point, a developer
approached the Village with a proposal to redevelop the mall. The developer requested that the
Village consider using tax increment financing ("TIF") to finance redevelopment costs, and at that
point, the Village had not yet reached the conclusion that TIF was necessary to redevelop the mall.
However, after several years of unproductive discussions, the Village determined that public action
would be required to address the problem.
Town Center Redevelopment Project & Plan page 1
Elk Grove Village, Illinois
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In October 1993, the Village passed an ordinance giving it the authority to acquire and condemn
blighted properties in the best interest of the community. To be considered blighted, an area needed
to meet defined characteristics of a deteriorated property. A professional consultant identified the
following 7 characteristics of blight at the Grove Mall: age, dilapidation, obsolescence,
deterioration, structures below minimum code, excessive vacancies and deleterious land -use or lay-
out. On June 14, 1994, the Village declared the Grove Mall area to be blighted and in December
1994, the Village initiated condemnation proceedings. This represented a very aggressive step for
the Village to take, but at this point, the Village was convinced that without its intervention, the
property would continue to decline and no revitalization or redevelopment would occur. The
Village Board decided to proceed with the condemnation, with the clear understanding and intent
that it would ultimately use TIF proceeds to reimburse the Village for costs incurred in the
acquisition of the Grove Mall. To the fullest extent possible, subject to market value and legal
constraints, the Village will attempt to sell the land to the entity ultimately chosen to work with the
Village to redevelop the Grove Mall.
The Grove Mall site occupies a strategic location within the Village and has excellent community
and regional accessibility. It is located near existing commercial and governmental facilities. As
part of a strategy to stimulate private investment at this site within Elk Grove, particularly the new
commercial development necessary for the Grove Mall site's revitalization, the Village engaged
Trkla, Pettigrew, Allen & Payne, Inc. ("TPAP") to investigate whether the area qualifies for TIF.
The proposed redevelopment project area, identified by the Village, is bounded by Biesterfield
Road on the north; Arlington Heights Road on the east; the Village Grove Apartments and a Burger
King on the south; and the Village Administration Building, Police HDQ, Central Fire Station and
Village Library campus on the west and is described in more detail in Section I.B., The Town
Center Redevelopment Project Area.
A. TAX INCREMENT FINANCING
In January 1977, Tax Increment Financing "TIF" was made possible by the Illinois General
Assembly through passage of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5111-
74.4-1 et seq., as amended (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 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 which results in Incremental Property Taxes. A decline in current
EAV does not result in a negative Incremental Property Tax.
To finance redevelopment project costs, a municipality may issue obligations secured by
Incremental Property Taxes to be generated within the 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
Town Center Redevelopment Project & Plan page 2
Elk Grove Village, Illinois
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 by increasing tax rates; it generates
revenues by allowing the municipality to capture, temporarily, the new tax revenues generated by
the enhanced valuation of properties resulting from the municipality's redevelopment program,
improvements and activities, various redevelopment projects, and the reassessment of properties.
Under TIF, 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 excess 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. Taxing districts also benefit from
the increased property tax base after redevelopment project costs and obligations are paid.
B. THE TOWN CENTER REDEVELOPMENT PROJECT AREA
The Town Center Redevelopment Project Area (the "Project Area") encompasses a single
development site of approximately 23.9 acres located on seven tax parcels of property, including
the rights-of-way of Biesterfield Road and Arlington Heights Road. The largest parcels (08-32-202-
014, -015 and -018) contain five separate buildings, including a single building with two tenants
referred to as the "Town Center." The buildings are situated so that the store fronts and entry areas
face each other to form an open interior pedestrian mall with canopies located along the store fronts
running through the center of the complex. Principal anchor stores in the large buildings include
Ace Hardware, Michaels Finer Foods, Jewel Foods, Walgreens and Goodyear Auto Service;
however, both of the large stores previously occupied by Michaels and Jewel are vacant.
Additionally, thirteen of the fifteen smaller store fronts within the complex are also vacant.
Within the Project Area are additional out lots which include a Citgo Gas Station on the northeast
corner of the Project Area, a movie theater on parcel 08-32-202-019 along the south edge of the
Project Area and a Burger King restaurant on parcel 08-32-202-020 on the southeast corner of the
Project Area.
The Project Area contains the commercial developments described above as well as parking around
the perimeter of buildings and to the edge of the Project Area. The Village's Municipal Complex
borders the Project Area on the west and multi -family housing, owned by the Illinois Housing
Development Authority, borders the Project Area on the south.
Characteristics of the Project Area include the poor condition of the principal structures on the site
of the former Jewel and Michaels Food Stores. Problem conditions also include widespread
vacancies (67 percent), limited design and size of stores, and obsolete layout compared to present -
Town Center Redevelopment Project & Plan page 3
Elk Grove Village, Illinois
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day standards. Deterioration of the center and site is a result of lack of maintenance over a period
of years. The entire shopping strip complex is impacted by functional and economic obsolescence
due to a combination of limited design, lack of amenities and an overall deteriorated condition. All
of these factors have contributed to the extended vacancies and lack of renovation and upgrading to
the shopping center.
Access to the Project Area is provided by Arlington Heights Road and Biesterfield Road. Both of
these main regional roadways connect to the principal highways and nearby interstates located in
this northwest portion of the Chicago Metropolitan Area.
C. THE TOWN CENTER REDEVELOPMENT PROJECT AND PLAN
This report, entitled the Town Center Tax Increment Financing Redevelopment Project and Plan
(the "Redevelopment Plan") has been formulated in accordance with the provisions of the Act and
is intended to guide improvements and activities within the Project Area in order to stimulate
private investment in the Project Area. The goal of the Village, through the implementation of this
Redevelopment Plan, is that the entire Project Area be redeveloped on a comprehensive and
planned basis in order to ensure that private investment in rehabilitation and new development
occurs:
1. On a coordinated rather than piecemeal basis to ensure that the land use, pedestrian access,
vehicular circulation, parking, service and urban design systems are functionally integrated
and meet present-day principles and standards;
2. On a reasonable, comprehensive and integrated basis to ensure that the factors of blight and
conservation are eliminated; and
3. Within a reasonable and defined time period so that the area may contribute productively to
the economic vitality of the Village.
�J The success of this effort will depend to a large extent on the cooperation between the private sector
and agencies of local government. The adoption of this Redevelopment Plan will make possible
the implementation of a comprehensive program for the redevelopment of the Project Area. By
means of public investment, the Project Area may become a stable environment that will again
attract private investment. Public investment will set the stage for redeveloping the Project Area
through private investment. Through this Redevelopment Plan, the Village will serve as the central
force for directing assets and energies of the private sector for a unified cooperative public-private
redevelopment effort.
This Redevelopment Plan sets forth the overall "Redevelopment Project" to be undertaken to
accomplish the above -stated goal. During the Redevelopment Project implementation, the Village
may, from time to time, (i) undertake or cause to be undertaken public improvements and activities
and (ii) enter into redevelopment agreements with private entities to construct, rehabilitate, renovate
Town Center Redevelopment Project & Plan page 4
Elk Grove Village, Illinois
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or restore private improvements on one or several parcels (collectively referred to as
"Redevelopment Projects").
This Redevelopment Plan specifically describes the Project Area and summarizes the factors of
blight which qualify the Project Area as an improved "blighted area" as defined in the Act.
Successful implementation of this Redevelopment Plan requires that the Village utilize Incremental
Property Taxes and other resources in accordance with the Act and work cooperatively with the
private sector and other governmental agencies. Incremental Property Taxes and other resources
will be utilized to stimulate the comprehensive and coordinated revitalization of the Project Area.
Only through the utilization of TIF will the Project Area develop on a comprehensive and
coordinated basis, thereby eliminating the conditions of blight which have precluded its
comprehensive and coordinated revitalization by the private sector.
The use of Incremental Property Taxes by the Village will permit the Village to direct, implement
and coordinate public improvements and activities to stimulate private investments on a
comprehensive basis. These improvements, activities and investments will benefit the Village, its
residents, and all taxing districts having jurisdiction over the Project Area. The anticipated benefits
include:
• A strengthened tax base for affected taxing agencies;
• An improved property tax balance between residential and non-residential properties;
• Elimination of problem conditions in the Project area as well as a general physical
improvement and upgrading of properties; and
• An increased employment base for the Village.
As evidenced above and throughout this Redevelopment Plan, the Project Area as a whole has not
been subject to growth and development through investment by private enterprise. The blighted
condition of the Project Area; the continued inability to secure and retain tenants in the Project
Area; the declining assessed values associated with the Project Area; and, in particular, the repeated
attempts of the Village to stimulate private investment without using TIF, indicate that the Project
Area would not reasonably be anticipated to be developed without the adoption of this
Redevelopment Plan and the use of TIF.
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Town Center Redevelopment Project & Plan page 5
Elk Grove Village, Illinois
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II. LEGAL DESCRIPTION
The boundaries of the Project Area have been drawn to include only those contiguous parcels of
real property and improvements substantially benefited by the proposed Redevelopment Project to
be undertaken as part of this Redevelopment Plan. The boundaries of the Project Area are shown in
Figure 1, Boundary Map, and are generally described as follows:
iiThe Project Area encompasses an area of approximately 23.9 acres, including rights-of-way, and is
generally bounded by Biesterfield Road on the north; Arlington Heights Road on the east; the
61 Village Grove Apartments on the south; and the Village Administration Building, Police HDQ,
(� Central Fire Station and Village Library campus on the west.
LAThe boundaries of the Project Area are legally described as follows:
A TRACT OFLAND 17V THE NORTHEAST QUARTER OFSECTION32, TOWNSHIP
41 NORTH, RANGE Il EAST OF THE THIRD PRINCIPAL MERIDIAN, SAID TRACT OF
LAND BEING MORE PARTICULARLYDESCRIBED AS FOLLOWS:
BEGINNING AT THE INTERSECTION OF THE EASTWARD EXTENSION OF THE
SOUTH LINE OF THE NORTH 1250.00 FEET OF THE SOUTHWEST QUARTER OF THE
NORTHEAST QUARTER OF SAID SECTION 32 WITH THE EAST LINE OFARLINGTON
HEIGHTS ROAD;
THENCE WESTALONG SAID EASTWARD EXTENSIONAND ALONG SAID SOUTH
11
LINE, CROSSING ARLINGTON HEIGHTS ROAD, TO AN INTERSECTION WITH THE
WEST LINE OF THE EAST 419.00 FEET OF THE SOUTHWEST QUARTER OF THE
NORTHEAST QUARTER OF SAID SECTION 32;
THENCE NORTH ALONG SAID WEST LINE TO AN INTERSECTION WITH THE
SO UTH LINE OF THE NORTH 1170.00 FEET AS MEASURED ALONG THE EAST LINE
OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER, OF SAID SECTION
32;
THENCE WEST ALONG SAID SOUTH LINE TO AN INTERSECTION WITH THE
WEST LINE OF THE EAST 810.00 FEET, AS MEASURED ALONG THE NORTH LINE OF
THE NORTH 850.00 FEET, AS MEASURED ALONG THE EAST LINE OF THE
SOUTHWEST QUARTER OF THE NORTHEAST QUARTER, OF SAID SECTION 32,
THENCENORTHALONG SAID WESTLINEAND THENORTHWARD EXTENSION
THEREOF, CROSSING BIESTERFIELD ROAD, TO AN INTERSECTION WITH THE
NORTHLINE OFSAID BIESTERFIELD ROAD;
THENCE EAST ALONG SAID NORTH LINE AND THE EASTWARD EXTENSION
THEREOF, CROSSINGARLINGTONHEIGHTSROAD, TOANINTERSECTIONWITHTHE
NORTHWARD EXTENSION OF THE AFOREMENTIONED EAST LINE OF ARLINGTON
HEIGHTS ROAD;
THENCE SOUTH ALONG SAID NORTHWARD EXTENSIONAND ALONG SAID
EAST LINE, CROSSING JOHN F. KENNEDYBOULEVARD AND LONSDALE ROAD, TO
THE POINT OF BEGINNING;
ALL IN COOK COUNTY. ILLINOIS.
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
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Biesterfield Road: 1
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Project Boundary
202 Block No.
-001 Parcel No.
Figure 7 '�®
Project Boundary
North
Tax Increment Financing Redevelopment Project and Plan Prepared By. Trkla, Pettigrew, Allen 8 Payne, Inc.
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III. ELIGIBILITY CONDITIONS
Based upon surveys, inspections and analyses of the area, the Project Area qualifies as a "blighted
area" within the requirements of the Act.
• Of the fourteen factors for improved blighted areas set forth in the Act, seven are found to be
present in the Project Area.
• These factors are reasonably distributed throughout the entire Project Area.
• The entire Project Area is impacted by and shows the presence of these factors.
• The Project Area includes only real property and improvements substantially benefited by the
Redevelopment Program and potential Redevelopment Projects.
A detailed report concerning the definition, application and extent of the blight factors in the
Project Area is contained in a report prepared by TPAP entitled Town Center Tax Increment
Financing Redevelopment Project Area Eligibility Report, attached as Exhibit I to this
Redevelopment Plan.
The blight factors found to be present in the Project Area are based upon surveys and analyses
conducted by TPAP. The surveys and analyses conducted for the Project Area include:
1. Exterior survey of the entire commercial center and interior survey of the vacant anchor stores
and smaller stores to note the conditions and use of each structure;
2. Field survey of environmental conditions covering streets, sidewalks, gutters, lighting, traffic,
parking facilities, landscaping, fences and walls, and general property maintenance;
3. Analysis of existing use and relationships to the site and surroundings;
4. Analysis of original and current platting and building size and layout;
5. Analysis of vacant portions of the site and buildings; and
6. Analysis of building floor area and site coverage.
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
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IV. GOALS AND OBJECTIVES
Properly guided investment in new public and private improvements and facilities is essential for
the successful redevelopment of the Project Area and the elimination of conditions that have
impeded the redevelopment of the Project Area. Redevelopment of the Project Area will benefit
the Village through improvements in the physical environment, an increased non-residential tax
base, increased sales tax revenues and additional employment opportunities.
The Act encourages public and private sectors to work together to address and solve the problems
associated with urban growth and development. The joint effort between the Village and the
private sector to redevelop the Project Area will receive significant support from the financing
methods made available by the Act.
This section identifies the goals and objectives adopted by the Village for the Project Area.
Section V identifies redevelopment objectives and redevelopment activities the Village plans to un-
dertake to achieve the redevelopment goals and objectives contained in this Redevelopment Plan.
# A. GENERAL GOALS
)� Listed below are the general goals of this Redevelopment Plan. These goals provide the overall
framework for guiding decisions during the implementation phases.
1. An improved quality of life in the Project Area and the Village by eliminating the
influences and manifestations of physical and economic deterioration and
obsolescence within the Project Area.
2. An environment within the Project Area which will contribute more positively to
the health, safety and general welfare of the Village, and preserve or enhance the
value of properties adjacent to the Project Area.
3. An increased real estate and sales tax base for the Village and other taxing districts
having jurisdiction over the Project Area.
B. DEVELOPMENT AND DESIGN OBJECTIVES
Listed below are development and design objectives of this Redevelopment Plan which will assist
the Village in directing and coordinating public improvements and activities Nvith private
investment in order to achieve the goals and objectives stated in this Redevelopment Plan.
Town Center Redevelopment Project & Plan page 9
Elk Grove Village, Illinois
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The "Town Center" Concept
I . The Project Area should be viewed not as a separate and isolated redevelopment project, but
rather as part of an area -wide "Town Center" for the Elk Grove community.
2. The Town Center should become an attractive and exciting shopping, service, living and
entertainment area—the "Town Square"—which offers a mix of uses and quality of
environment very different from other nearby commercial areas.
3. The Town Center should interconnect and unite a wide range of existing uses and activities,
and create a strong, cohesive new focal point in the heart of the community.
The "Village Green" Corridor
1. The Town Center should be organized around a new "Village Green," which would extend
from east to west, connecting the new retail center with the existing public facilities to the
west.
2. An attractive view corridor and pedestrian walkway system should be established along the
new Village Green corridor.
3. The Jack Claes Pavilion should become the western anchor of the Village Green, and
should serve as a visual terminus for the view and/or open space corridor.
4. The existing Village Hall and Library should become an integral part of the Town Center,
and should form the north and south sides of the Village Green corridor.
5. The existing parking lot between the Village Hall and Library should be redesigned and
reconfigured to reinforce the view, open space and/or pedestrian corridor.
6. A series of design features should be provided along the Village Green corridor to create a
sequence of visual focal points.
T New buildings and activity areas that would reinforce, add interest to, or promote use of the
corridor should be considered along the Village Green.
The "Town Square"Retail Center
1. The Grove Shopping Center site should be redeveloped as a distinctive new retail center
including an exciting mix of retail, restaurant and entertainment uses. In general, the new
center should include between 120,000 and 175,000 square feet of new commercial space.
2. The Site might also include multi -family residential development, if it is carefully located
and appropriately related to the retail center.
3. The Village is not interested in a typical "strip center" development. The new retail center
should offer a pedestrian scale and "people orientation" verydifferent from the typical strip
commercial development.
4. The new retail center should be designed and configured to provide an eastern anchor and
visual terminus to the new Village Green corridor.
Town Center Redevelopment Project & Plan page 10
Elk Grove Village, Illinois
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5. The new retail center should be organized around an attractive new "Town Square" which
would provide a focal point for commercial uses and an outdoor gathering place for
shoppers and other pedestrians. The Town Square should be connected to the Village Green
corridor that extends through the public campus.
6. While the new retail center should be organized around a central open space, the periphery
of the center should also be carefully designed and provide attractive views from both
Biesterfield Road and Arlington Heights Road.
7. Safe and convenient pedestrian connections should also be provided between the new retail
center and the Elk Crossing shopping center to the north, the single-family neighborhood to
the east, and the senior citizen housing to the south.
Building & Site Design:
1. While the Village does not intend to dictate architectural design, architecture will be of
special concern. The new retail center must be characterized by high-quality design,
construction materials and site amenities.
2. Streetscape improvements should be undertaken along the new Village Green, including
street trees, accent landscaping, light fixtures, paving materials, benches and other
pedestrian amenities. On -street parking should also be considered.
3. Selected Village Green design features—such as light fixtures, paving materials and
benches—should be extended into the new retail center.
4. Other design features should be provided at key points along the Village Green to articulate
and reinforce this new corridor.
S. Distinctive entryway design features, perhaps including special signage, landscaping and
lighting, should be provided at the key intersections which provide access to the new Town
Center.
Traffic Access & Circulation:
1. Primary vehicular access to the new retail center should be from Biesterfield Road and from
Arlington Heights Road.
2. While vehicular traffic would be allowed along the new Village Green, this corridor should
not become a "by-pass" route for through traffic between Wellington Avenue and Arlington
Heights Road.
3. All access drives and roadways should be characterized by attractive landscaping, light
fixtures and signage.
4. Plans for the new retail center must consider the traffic carrying capacity of both
Biesterfield and Arlington Heights Roads. New development should not result in
unacceptable traffic congestion or operational problems along either roadway.
Parking:
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
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1. The new retail center should be served by an adequate supply of conveniently located and
attractively designed parking. A minimum of five parking spaces should be provided for
each 1,000 square feet of new retail space.
2. The design and appearance of parking areas will be of special concern. Parking lots should
be characterized by attractive landscaping, lights and signage.
3. Parking areas should be configured in smaller lots and sections. Large, uninterrupted
expanses of asphalt should be avoided.
4. While parking lots should be located convenient to stores and shops, they should not disrupt
or conflict with the Town Center's special pedestrian environment.
5. Pedestrian walkways should be extended out into the parking areas. It should be safe and
convenient for people to move from their parking spaces to their destinations.
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Elk Grove Village, Illinois
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V. REDEVELOPMENT PROJECT
This section presents the Redevelopment Project anticipated to be undertaken by the Village and by
private entities on behalf of the Village in fintherance of Redevelopment Plan. The Redevelopment
Project contained in this Redevelopment Plan and pursuant to the Act includes redevelopment
objectives, a description of redevelopment improvements and activities, a general land use plan,
estimated redevelopment project costs, a description of sources of funds to pay estimated
redevelopment project costs, a description of obligations that may be issued, identification of the
most recent EAV of properties in the Project Area, and an estimate of future EAV.
A. REDEVELOPMENT OBJECTIVES
Listed below are objectives which guide planning decisions to achieve the goals and objectives
contained in this Redevelopment Plan.
1. Reduce or eliminate those conditions which qualify the Project Area as a blighted area.
Section III, Eligibility Conditions, describes these conditions.
2. Encourage a high-quality appearance of buildings, rights-of-way, and open spaces and
encourage high standards of design.
3. Strengthen the economic well-being of the Project Area and the Village by increasing
taxable values.
4. Assemble land into parcels of appropriate shape and sufficient size for redevelopment in
accordance with this Redevelopment Plan and contemporary development needs and
standards.
5. Create an environment which stimulates private investment in appropriate new
10 construction and rehabilitation.
14 6. Provide needed improvements or facilities in proper relationship to the projected
demand for such facilities and in accordance with present-day design standards for such
facilities.
7. Provide needed incentives to encourage a broad range of improvements in rehabilitation
and new development.
8. Reinforce and strengthen the economic viability of existing, nearby commercial
developments.
Town Center Redevelopment Project & Plan page 13
Elk Grove Village, Illinois
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B. REDEVELOPMENT IMPROVEMENTS AND ACTIVITIES
The Village proposes to achieve its redevelopment goals and objectives for the Project Area
through public financing techniques including, but not limited to, tax increment financing, and by
utilizing such financing techniques to undertake some or all of the activities and improvements
14 authorized under the Act, including the activities and improvements described below.
The Village may enter into redevelopment agreements with private entities for the furtherance of
Id this Redevelopment Plan. Such redevelopment agreements may be for the assemblage of land,
rehabilitation of buildings, construction of improvements or facilities, the provision of services or
any other lawful purpose. Redevelopment agreements may contain terms and provisions which are
more specific than the controls which guide this Redevelopment Plan.
1. Analysis, Administration, Studies, Surveys, Legal, etc.
The Village may undertake or engage professional consultants, engineers, architects,
attorneys, etc. to conduct various analyses, studies, surveys, administration or legal
services to establish, implement and manage this Redevelopment Plan.
2. Property Assembly and Site Preparation
Property assembly costs, including but not limited to, reimbursement for acquisition of
land and other property, real or personal, or rights or interests therein, demolition of
buildings, environmental remediation and the clearing and grading of land;
3. Relocation
Active businesses and other occupants that are displaced by the public acquisition of
property may be relocated and may be provided with financial assistance and advisory
services. Relocation services in conjunction with property acquisition will be provided in
accordance with Village policy.
4. Provision of Public Works or Improvements
The Village may provide public improvements and facilities that are necessary to service
the Project Area in accordance with this Redevelopment Plan. Public improvements and
facilities may include, but are not limited to, the following:
a) Streets, Sidewalks, Utilities
Public infrastructure improvements may be necessary to adequately serve the
Project Area.
b) Streetscape and Related Improvements
Landscape/buffer improvements, street lighting and general beautification
improvements may be provided.
Town Center Redevelopment Project & Plan page 14
Elk Grove Village, Illinois
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c) Parks and Open Space Improvements
Parks, open spaces and public and private plazas may be provided.
5. Building Rehabilitation
14 The Village will encourage the rehabilitation of buildings that are basically sound.
C. GENERAL LAND USE PLAN
This Redevelopment Plan and the development program described herein conform to the land -use
development policies and standards for the Village.
Figure 2, Land -Use Plan, identifies the general land -uses to be in effect upon adoption of this
Redevelopment Plan. The primary land -use category within the Project Area is commercial/mixed-
use. Development and design objectives for the Town Center are contained in Section IV of this
Redevelopment Project and Plan.
I D. REDEVELOPMENTPROJECT COSTS
Reviewed below are the various redevelopment expenditures which are eligible for payment under
the Act. Following this review is a list of estimated redevelopment project costs which are deemed
to be necessary to implement this Redevelopment Plan (the "Redevelopment Project Costs").
1. Eligible Redevelopment Project Costs
Redevelopment project costs include the sum total of all reasonable or necessary costs
incurred, estimated to be incurred, or incidental to this Redevelopment Plan pursuant to
the Act. Such costs may include, without limitation, the following:
14 a) Costs of studies, surveys, development of plans and specifications, implementation
and administration of the redevelopment plan including but not limited to, staff and
professional service costs for architectural, engineering, legal, marketing, financial,
planning or other services, provided that no charges for professional services are
based on a percentage of the tax increment collected;
b) Property assembly costs, including but not limited to, acquisition of land and other
property, real or personal, or rights or interests therein, demolition of buildings, and
the clearing and grading of land;
c) Costs of rehabilitation, reconstruction or repair or remodeling of existing public or
private buildings and fixtures;
d) Costs of the construction of public works or improvements;
Town Center Redevelopment Project & Plan page 15
Elk Grove Village, Illinois
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Project Boundary
Commercial/ Mixed Use
Figure 2 10.24.96
Land-Use Plan
North KIA
Prepared By: Trkla, Pettigrew, Allen & Payne, Inc.
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1. such costs are to be paid directly from the special tax allocation fund
established pursuant to this 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;
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
page 17
e)
Costs of job training and retraining projects;
f)
Financing costs including, but not limited to, all necessary and incidental expenses
related to the issuance of obligations and which may include payment of interest on
any obligations issued hereunder accruing during the estimated period of
construction of any redevelopment project for which such obligations are issued and
for a period not exceeding 36 months following completion and including reasonable
reserves related thereto;
g)
All or a portion of a taxing district's capital costs resulting from a redevelopment
project necessarily incurred or to be incurred in furtherance of the objectives of the
redevelopment plan and project to the extent the municipality by written agreement
accepts and approves such costs;
h)
Relocation costs to the extent that a municipality determines that relocation costs
shall be paid or is required to make payment of relocation costs by federal or state
law;
i)
Payment in lieu of taxes as defined in the Act;
j)
Costs of job training, advanced vocational education or career education, including
but not limited to, courses in occupational, semi -technical or technical fields leading
directly to employment, incurred by one or more 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 a redevelopment project area; and (ii) when
incurred by a taxing district or taxing districts other than the municipality, are set
forth in a written agreement by or among the municipality 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 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 and by school districts of costs pursuant
to Sections 10-22.20a and 10-23.3a of the School Code;
k)
Interest cost incurred by a redeveloper related to the construction, renovation or
rehabilitation of a redevelopment project provided that:
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1. such costs are to be paid directly from the special tax allocation fund
established pursuant to this 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;
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
page 17
3. if there are not sufficient funds available in the special tax allocation fund to
make the payment pursuant to this provision, then the amount so due shall
accrue and be payable when sufficient funds are available in the special tax
allocation fund; and
4. the total of such interest payments incurred pursuant to this Act may not
exceed 30 percent of the total: (i) costs paid or incurred by the redeveloper for
such redevelopment project plus (ii) redevelopment project costs excluding
y any property assembly costs and any relocation costs incurred by a
municipality pursuant to this Act.
1) Unless explicitly provided in the Act, the cost of construction of new privately -
owned buildings shall not be an eligible redevelopment project cost.
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 redevelopment
project area for the purposes permitted by the Special Service Area Tax Act as well as the
purposes permitted by the Act.
2. Estimated Redevelopment Project Costs
A range of redevelopment activities and improvements will be required to implement this
Redevelopment Plan. The activities and improvements and their estimated costs (1996
dollars) are summarized below and shown in Table 1, Estimated Redevelopment Project
Costs. To the extent that municipal obligations have been issued to pay for such
pq Redevelopment Project Costs prior to, and in anticipation of, the adoption of TIF, the
Village shall be reimbursed from Incremental property Taxes or other sources for such
Redevelopment Project Costs. The estimated Redevelopment Project Costs illustrated
below and in Table 1 are intended to provide an upper estimate of expenditures. Within
this upper estimate, adjustments may be made in line items without amending this
Redevelopment Plan.
The estimate of Redevelopment Project Costs listed below and summarized in Table 1
excludes financing costs, including any interest expense, capitalized interest and costs
associated with optional redemptions. These costs are subject to prevailing market
conditions and are in addition to total Redevelopment Project Costs. Although all costs
listed are eligible Redevelopment Project Costs, this listing does not obligate the Village
to pay or reimburse such costs.
a) Planning, Legal, Administrative and Other Fees
Estimated Cost $600,000
Town Center Redevelopment Project & Plan page 18
Elk Grove Village, Illinois
This expenditure includes survey and study costs, legal services, administrative
services and other professional and service fees associated with implementing this
Redevelopment Plan and providing a secure environment for private investment in
accordance with the Act.
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fi Interest Carry, Capitalized Interest and Issuance Costs
Estimated Cost $4,000,000
This expenditure provides for costs of financing, including interest expense,
capitalized interest and issuance costs.
g) Project Contingency
Estimated Cost $750,000
This expenditure provides for unexpected cost over -runs which may impede or delay
the successful implementation of this Redevelopment Plan
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
page 19
b)
Property Assembly and Lease Termination
This expenditure provides reimbursement for property acquisition and lease
termination agreements.
Estimated Cost $7,000,000
c)
Demolition, Environmental and Site Preparation
Estimated Cost $500,000
This expenditure provides for the demolition of existing structures, environmental
remediation and site preparation, and a contingency for these activities
d)
Building Rehabilitation
Estimated Cost $250,000
This expenditure provides for the rehabilitation, reconstruction, repair or remodeling
of existing private buildings and fixtures.
e)
Public Works and Utility Improvements
Estimated Cost $2,500,000
This expenditure provides for the construction or extension of water mains, sewers
and stormwater detention improvements; the construction or improvement of
landscaping and buffers, streetscapes, street lighting and general beautification
improvements; the construction of public parks, plazas or other or open space; and the
construction or improvement of streets and sidewalks.
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fi Interest Carry, Capitalized Interest and Issuance Costs
Estimated Cost $4,000,000
This expenditure provides for costs of financing, including interest expense,
capitalized interest and issuance costs.
g) Project Contingency
Estimated Cost $750,000
This expenditure provides for unexpected cost over -runs which may impede or delay
the successful implementation of this Redevelopment Plan
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
page 19
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h) Total Redevelopment Project Costs are estimated at $15,600,000
Table 1: Estimated Redevelopment Project Costs
Planning, Legal, Administrative and Other Fees
$600,000
Property Assembly and Lease Termination
$7,000,000
Demolition, Environmental and Site Preparation
$500,000
Building Rehabilitation
$250,000
Public Works and Utility Improvements
$2,500,000
Interest Carry, Capitalized Interest and Issuance Costs
$4,000,000
Project Contingency
$750,000
Estimated Redevelopment Project Costs $15,600,000
(1) Estimated Redevelopment Project Costs exclude financing costs, including any interest
expense, capitalized interest and costs associated with optional redemptions. These costs
are subject to prevailing market conditions and are in addition to total Redevelopment
Project Costs. While all of the foregoing costs are eligible redevelopment project costs
per the Act, inclusion herein does not commit the Village to finance all these costs with
TIF; moreover, the above costs are only estimates, and the Village reserves the right to
re -allocate the costs among line items to the extent actual costs vary.
E. SOURCES OF FUNDS TO PAYREDEVELOPMENT PROJECT COSTS
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 municipality may deem appropriate. 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.
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
page 20
F. 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 pledge its full
faith and credit through the issuance of general obligation bonds. Additionally, the Village may
provide other legally permissible credit enhancements to any obligations issued pursuant to the Act.
All obligations issued by the Village pursuant to this Redevelopment Plan and the Act shall be
retired within 23 years from the adoption of the ordinance approving the Original Project Area and
the Original Redevelopment Plan, such ultimate retirement date occurring in 2019. Also, 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 Redevelopment Plan. Obligations may issued on a parity or subordinated
basis.
pj In addition to paying Redevelopment Project Costs, Incremental Property Taxes may be used for
4 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, any excess Incremental Property Taxes shall then become available for
distribution annually to taxing districts having jurisdiction over the Project Area in the manner
provided by the Act.
G. VALUATION OF THE TOWN CENTER PROJECT AREA
1. Most Recent EAV of Properties in the Project Area
The most recent EAV of all taxable parcels in the Project Area is currently estimated to be
$2,362,190. However, the Village has appealed this assessment and is anticipating a
Certificate of Error. After receiving the Certificate of Error, the final figure shall be
certified by the County Clerk. This final certified amount shall become the Certified Initial
EAV from which all Incremental Property Taxes in the Project Area will be calculated by
the County. The 1995 EAV of the Project Area is summarized by tax block in Table 2,
1995 EAV by Tac Parcel: Project Area.
2. Anticipated Equalized Assessed Valuation
IN By the tax year 1999 (collection year 2000) and following the completion of all potential
Redevelopment Projects, the EAV of the Project Area is estimated to range between
$7,600,000 to $8,600,000. This estimate is based on several key assumptions, including:
1) redevelopment of the Project Area will occur in a timely manner; and 2) the five year
average state equalization factor of 2.1041 (tax years 1991 through 1995) is used in all years
to calculate estimated EAV.
Town Center Redevelopment Project & Plan page 21
Elk Grove Village, Illinois
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TABLE 2.
1995 EAV BY TAX PARCEL: TOWN CENTER PROJECT AREA
Tax Parcel Number
08-32-202-002
08-32-202-014
08-32-202-015
08-32-202-017
08-32-202-018
08-32-202-019
08-32-202-020
Total EAV
1995 Estimated EAV
$470,800
$784,332
$429,844
$70,161
$470,127
$60,094
$76,832
$2,362,190
*The most current EAV of the Project Area is estimated to be $2,362,190 and is subject to
verification by the County Clerk of Cook County, Illinois. After verification, the value shall be
certified by the County Clerk
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
page 22
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VI. LACK OF GROWTH AND DEVELOPMENT THROUGH
INVESTMENT BY PRIVATE ENTERPRISE
As described in Section III of this Redevelopment Plan, the Project Area as a whole is adversely
impacted by the presence of numerous blight area factors, and these factors are reasonably
distributed throughout the Project Area. Blight factors within the Project Area are widespread and
represent major impediments to sound growth and development.
The lack of private investment in and the decline of the Project Area are evidenced by the
following:
• Improved areas characterized by obsolescence, deterioration, structures below minimum code
specifications, excessive vacancies, and an overall depreciation of physical maintenance.
• Between 1992 and 1995, the equalized assessed valuation (the "EAV") of the Project Area
decreased by approximately 30 percent, while the EAV of the Village as a whole increased by 9
percent over the same period.
As evidenced above and throughout this Redevelopment Plan, the Project Area on the whole has
not been subject to growth and development through investment by private enterprise. Finally, the
Project Area would not reasonably be anticipated to be developed without the adoption of this
Redevelopment Plan.
Town Center Redevelopment Project & Plan page 23
Elk Grove Village, Illinois
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VII. FINANCIAL IMPACT
Without the adoption of this Redevelopment Plan and TIF, the Project Area is not reasonably
expected to be redeveloped by private enterprise. In the absence of Village -sponsored
redevelopment initiatives there is a prospect that blighting factors will continue to exist and spread,
and the Project Area on the whole and adjacent properties will become less attractive for the
maintenance and improvement of existing buildings and sites. In the absence of Village -sponsored
redevelopment initiatives, erosion of the assessed valuation of property in and outside of the Project
Area could lead to a reduction of real estate tax revenue to all taxing districts.
Section V of this Redevelopment Plan describes the comprehensive Redevelopment Project
proposed to be undertaken by the Village to create an environment in which private investment can
Id occur. The Redevelopment Project will be staged over a period of time consistent with local
market conditions and available financial resources required to complete the various redevelopment
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improvements and activities as well as Redevelopment Projects set forth in this Redevelopment
Plan. Successful implementation of this Redevelopment Plan is expected to result in new private
investment in rehabilitation of buildings and new construction on a scale sufficient to eliminate
problem conditions and to return the area to a long-term sound condition
The Redevelopment Project is expected to have both short- and long-term positive financial
impacts on the taxing districts affected by this Redevelopment Plan. In the short-term, the Village's
strategic use of TIF can be expected to stabilize existing assessed values in the Project Area,
thereby stabilizing the existing tax base for local taxing agencies. In the long-term, after the
completion of all redevelopment improvements and activities, Redevelopment Projects and the
payment of all Redevelopment Project Costs and municipal obligations, the taxing districts will
benefit from an enhanced tax base which results from the increase in EAV caused by the
Redevelopment Projects.
Town Center Redevelopment Project & Plan page 24
Elk Grove Village, Illinois
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VIII. DEMAND ON TAXING DISTRICT SERVICES
This Redevelopment Plan provides for commercial and residential type development activity within
the Project Area. The amount and type of new development is not known at this time. It is
anticipated that redevelopment projects implemented as part of this Redevelopment Plan will not
cause increased demand for services or capital improvements on most of the taxing districts.
Non-residential development (i.e., community business) should not cause increased demand for
services or capital improvements on any of the following taxing districts: School District 59,
Arlington Heights Township High School District 214, Harper Community College District 512,
Elk Grove Park District, Village of Elk Grove Village Library, Township of Elk Grove, County of
dCook, Forest Preserve District of Cook County and Cook County Health Facilities.
Replacement of underutilized buildings and sites with active and more intensive uses may result in
additional demands on services and facilities provided by the Metropolitan Water Reclamation
District of Greater Chicago (WRD). It is expected that any increase in demand for treatment of
sanitary and storm sewage associated with the Project Area can be adequately handled by existing
treatment facilities maintained and operated by the WRD.
d
Residential development may cause increased demand for services or capital improvements to be
provided by School District 59, Arlington Heights Township High School District 214, Harper
Community College District 512, Elk Grove Park District and Village of Elk Grove Village
Library. However, it is not possible at this time to predict, with any degree of reliability, (i) the
number or timing of new residential buildings that may be added within the Project Area, or (ii) the
increased level of demand for services or capital improvements to be provided by any taxing
district as a result therefrom.
Because the scale and mix of development in the Project Area cannot be predicted with certainty as
of the date of this Redevelopment Plan, the scope of the financial impact on taxing districts and
increase in demand for services provided by those districts cannot be quantified at this time, As a
result, the Village has not developed, at present, a specific plan to address such impact or increased
demand.
However, as described more fully in Section V.13.2, Redevelopment Improvements and Activities --
Provision of Public lil'orks or Improvements, of this Redevelopment Plan, the Village plans to
provide public improvements and facilities to service the Project Area. Such improvements may
mitigate some of the additional service and capital improvement demands placed on taxing districts
as a result of the implementation of this Redevelopment Plan.
Town Center Redevelopment Project & Plan page 25
Elk Grove Village, Illinois
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IX. CONFORMITY OF THE REDEVELOPMENT PLAN AND
PROJECT TO THE COMPREHENSIVE PLAN FOR THE
DEVELOPMENT OF THE VILLAGE AS A WHOLE
This Redevelopment Plan and the Redevelopment Project described herein conform to the
Comprehensive Plan for the development of the Village as a whole.
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
page 26
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X. PHASING AND SCHEDULING
A phased implementation strategy will be utilized to achieve comprehensive and coordinated
redevelopment of the Project Area.
It is anticipated that Village expenditures for Redevelopment Project Costs will be carefully staged
on a reasonable and proportional basis to coincide with Redevelopment Project expenditures by
private developers and the receipt of Incremental Property Taxes by the Village.
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
page 27
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XI. PROVISIONS FOR AMENDING THIS REDEVELOPMENT
PLAN
This Redevelopment Plan may be amended pursuant to the Act.
Town Center Redevelopment Project & Plan page 28
It Elk Grove Village, Illinois
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XII. AFFIRMATIVE ACTION PLAN
The Village is committed to and will affirmatively implement the following principles with respect
to this Redevelopment Plan:
A) The assurance of equal opportunity in all personnel and employment actions, including,
but not limited to: hiring, training, transfer, promotion, discipline, fringe benefits, salary,
employment working conditions, termination, etc., without regard to race, color, religion, sex,
age, handicapped status, national origin, creed or ancestry.
B) This commitment to affirmative action will ensure that all members of the protected
groups are sought out to compete for all job openings and promotional opportunities.
In order to implement these principles, the Village shall require and promote equal employment
practices and affirmative action on the part of itself and its contractors and vendors. In particular,
parties engaged by the Village shall be required to agree to the principles set forth in this section.
Town Center Redevelopment Project & Plan
Elk Grove Village, Illinois
page 29
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EXHIBIT I: TOWN CENTER TAX INCREMENT
FINANCING REDEVELOPMENT PROJECT
AREA ELIGIBILITY REPORT
tJ
TOWN CENTER
TAX INCREMENT FINANCING
REDEVELOPMENT PROJECT AREA
d ELIGIBILITY REPORT
d
I
d Elk Grove Village, Illinois
Prepared by
Trkla, Pettigrew, Allen & Payne, Inc.
October, 1996
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TABLE OF CONTENTS
EXECUTIVESUMMARY.................................................................................................... i
I. BASIS FOR REDEVELOPMENT................................................................................ 1
H. THE STUDY AREA........................................................................................................ 4
III. ELIGIBILITY SURVEY AND ANALYSIS................................................................. 5
A. Building Condition Survey................................................................................ 5
1. Building Components Evaluated.............................................................. 8
2. Building Component Classification.......................................................... 8
IFinal Building Rating................................................................................ 9
B. Presence of Conservation Factors ............................
........... 10
1.
Age..........................................................................................................10
2.
Dilapidation.............................................................................................11
3.
Obsolescence...........................................................................................
12
4.
Deterioration......................................................:.....................................13
5.
Illegal Use of Individual Structures........................................................
16
6.
Presence of Structures Below Minimum Code Standards .....................
17
7.
Abandonment..........................................................................................18
S.
Excessive Vacancies...............................................................................
18
9.
Overcrowding of Structures And Community Facilities .......................
18
10.
Lack of Ventilation, Light, or Sanitary Facilities ...................................
19
11.
Inadequate Utilities.................................................................................
19
12.
Excessive Land Coverage.......................................................................
20
13.
Deleterious Land -Use Or Layout............................................................
20
14.
Depreciation of Physical Maintenance...................................................
21
15.
Lack of Community Planning.................................................................
21
C. Eligibility Conclusions .........................
22
14 LIST OF FIGURES
itFigure l: Project Boundary ...................................................................................................iii
i
Figure 2: Existing Land Use.................................................................................................. 6
Figure 3: Exterior/Interior Survey Form................................................................................ 7
Figure 4. Summary of Blight Factors.................................................................................. 22
LIST OF TABLES
Table 1: Summary of Building Conditions......................................................................... 14
4
11
EXECUTIVE SUMMARY
The purpose of this study is to determine whether the Town Center Redevelopment Project Area
(the "Project Area") qualifies for designation as a "blighted area" within the requirements set forth
in the Tax Increment Allocation Redevelopment Act (the "Act"). The Act is found in Illinois
Compiled Statutes, Chapter 65, Act 5, Section 11-74,4-1 et.seq., as amended.
The findings presented in this report are based on surveys and analyses conducted for an area of
approximately 23.9 acres of property, including a portion of the right-of-way, which is bordered by
Biesterfield Road on the north, Arlington Heights Road on the east, the west property line of
parcels -014, -015, -018 and -019 in Block 202 on the west, and the south property line of Parcels -
019 and -020 in Block 202 on the south. The Project Area is located on the southwest quadrant of
the intersection of Biesterfield Road and Arlington Heights Road in the Village of Elk Grove
Village, Illinois (the "Village"). Boundaries of the Project Area are shown on Figure 1, Project
Boundary Map.
As set forth in the Act, "redevelopment project area" means an area designated by the municipal-
ity, which is not less in the aggregate than 1 1/2 acres and in respect to which the municipality
has made a finding that there exist conditions which cause the area to be classified as an
industrial park conservation area or a blighted area or a conservation area, or a combination of
both blighted and conservation areas. The Project Area exceeds the minimum acreage require-
ments of the Act.
As set forth in the "Act", "blighted area" means any improved or vacant area within the boundaries
of a redevelopment project area located within the territorial limits of the municipality where,
if improved, industrial, commercial and residential buildings or improvements, because of a
combination of 5 or more of the following factors: age; dilapidation; obsolescence; deterioration;
illegal use of individual structures; presence of structures below minimum code standards;
excessive vacancies; overcrowding of structures and community facilities; lack of ventilation, light
or sanitary facilities; inadequate utilities; excessive land coverage; deleterious land use or layout;
depreciation of physical maintenance; or lack of community planning, is detrimental to the public
safety, health, morals or welfare, or if vacant, the sound growth of the taxing districts is impaired
by: (1) a combination of 2 or more of the following factors: obsolete platting of the vacant land;
diversity of ownership of such land; tax and special assessment delinquencies on such land;
flooding on all or part of such vacant land; deterioration of structures or site improvements in
neighboring areas adjacent to the vacant land; or (2) the area immediately prior to becoming vacant
qualified as a blighted improved area, or (3) the area consists of an unused quarry or unused
quarries, or (4) the area consists of unused railyards, rail tracks or railroad rights-of-way, or (5) the
area, prior to the area's designation, is subject to chronic flooding which adversely impacts on real
Town Center Eligibility Report Page i
Elk Grove Village, Illinois
i
S
property which is included in or is in proximity to any improvement on real property which has
been in existence for at least 5 years and which substantially contributes to such flooding or (6) the
area consists of an unused disposal site containing earth, stone, building debris or similar material,
which were removed from construction, demolition, excavation or dredge sites, or (7) the area is
not less than 50 nor more than 100 acres and 75% of which is vacant, notwithstanding the fact that
such area has been used for commercial agricultural purposes within 5 years prior to the designation
of the redevelopment project area, and which area meets at least one of the factors itemized in
provision (1) of the subsection (a), and the area has been designated as a town or village center by
ordinance or comprehensive plan adopted prior to January 1, 1982, and the area has not been
developed for that designated purpose.
While it may be concluded that the mere presence of the minimum number of the stated factors is
sufficient to make a finding of blight, this evaluation was made on the basis that the blighting
factors must be present to an extent which would lead reasonable persons to conclude that public
intervention is appropriate or necessary. Secondly, the distribution of blighting factors throughout
the area must be reasonable so that basically good areas are not arbitrarily found to be blighted
simply because of proximity to areas which are blighted.
On the basis of this approach, the Project Area is found to be eligible within the definition set forth
in the Act. Specifically:
• Of the fourteen factors of blight set forth in the ordinance for improved areas, seven
are present in the Project Area.
• The blight factors which are present are reasonably distributed throughout the entire
Project Area.
• The entire Project Area is impacted by and shows the presence of blight factors.
The Project Area includes only real property and improvements thereon substan-
tially benefited by the proposed redevelopment project improvements.
The following blight factors were found to be present in the Project Area:
1. Age
Age as a factor is present to a significant extent in all buildings which comprise the
major portion of the shopping center.
2. Obsolescence
Obsolescence as a factor is present to a major extent. Conditions contributing to this
factor include the functional and economic obsolescence of the existing single -
purpose buildings.
Town Center Eligibility Report
Elk Grove Village, Illinois
Pale ii
Biesterfield Road
202 Block No.
-001 Parcel No.
Figure 1
Project Boundary
10.24.96
North QA
Tax Increment Financing Eligibility Report Prepared Lay: Trkla, Pettigrew, Allen & Payne, Inc.
3. Deterioration
Deterioration as a factor is present to a major extent and includes major portions of
the roof and roof drainage system, ceilings, floors, exterior and interior wall sections
and doors of several major anchor buildings of the Town Center. The deteriorating
condition of site improvements, including retaining walls of the large tree planters
and parking lot surfaces also contribute to the factor of deterioration.
4. Structures Below Minimum Code
Structures below minimum code as a factor is present to a major extent. Defects on
the interior and exterior of principal shopping center structures and premises are
below the Village's codes for existing buildings and property maintenance.
5. Excessive Vacancies
Excessive vacancies as a factor is present to a major extent. Vacancies include the
two principal anchor stores formerly occupied by Jewel Companies and Michaels
Foods Store and thirteen small storefronts, representing close to two-thirds of the
main shopping center buildings. Additionally, one "out lot" parcel is also vacant
and currently part of the parking lot area.
6. Deleterious Land Use or Layout
Deleterious land -use or lay -out is present to a major extent. Characteristics con-
tributing to this factor include the faulty arrangement, design and lay -out of the
original buildings with access to stores only from the interior of the shopping center
with unsightly walls and loading and delivery areas facing the adjacent parking ar-
W eas.
Depreciation of Physical Maintenance
Depreciation of physical maintenance is present to a major extent and includes the
deferred maintenance of major portions of several building groups and site im-
provements.
The conclusion of Trkla, Pettigrew, Allen & Payne, Inc. ("TPAP") is that the number, degree, and
distribution of blight factors as documented in this study warrant designation of the Project Area as
a "blighted area" as set forth in the Act. The conclusions presented in this Eligibility Study are
those of TPAP which was retained by the Village to examine whether conditions of blight exist
within the Project Area. The Village Board should review this Eligibility Study and any supporting
data and files and, if satisfied with the methodologies and conclusions contained herein, may adopt
the necessary ordinances approving the redevelopment plan of which this study is a part,
designating the redevelopment project area and approving the use of tax increment financing. As
part of the adoption of these ordinances, the Village must make this Eligibility Report a part of the
public record.
Town Center Eligibility Report Pagge iv
Elk Grove Village, Illinois
I. BASIS FOR REDEVELOPMENT
The Illinois General Assembly made two key findings in adopting the Act:
1. That there exists in many municipalities within the State blighted and con-
servation areas; and
2. That the eradication of blighted areas and the treatment and improvement of
conservation areas by redevelopment projects are essential to the public in-
terest.
These findings were made on the basis that the presence of blight or conditions which lead
to blight are detrimental to the safety, health, welfare and morals of the public.
To ensure that the exercise of these powers is proper and in the public interest, the Act also
specifies certain requirements which must be met before a municipality can proceed with
implementing a redevelopment project. One of these requirements is that the municipality
must demonstrate that a prospective redevelopment project qualifies either as a "blighted
area" or as a "conservation area" within the definitions forth in the Act (in Section 11-74.4-
3). These definitions are paraphrased below.
A. ELIGIBILITYOFA BLIGHTED AREA
1. Improved Blighted Area
A blighted area may be either improved or vacant. If the area is improved (e.g., with in-
dustrial, commercial and residential buildings or improvements), a finding may be made
that the area is blighted because of the presence of a combination of five or more of the
following fourteen factors:
• Age,
• Dilapidation,
• Obsolescence,
• Deterioration,
• Illegal use of individual structures,
• Presence of structures below minimum code standards,
• Excessive vacancies,
• Overcrowding of structures and community facilities,
Town Center TIF Eligibility Report
Elk Grove Village, Illinois
L
Page I
• Lack of ventilation, light, or sanitary facilities,
• Inadequate utilities,
• Excessive land coverage,
• Deleterious land use or layout,
• Depreciation of physical maintenance,
• Lack of community planning.
2. Vacant Blighted Area
If the area is vacant, it may be found to be eligible as a blighted area based on the finding
that the sound growth of the taxing districts is impaired by:
a. A combination of two or more of the following factors:
• Obsolete platting of the vacant land;
• Diversity of ownership of such land;
• Tax and special assessment delinquencies of such land;
• Flooding on all or part of such vacant land; or
• Deterioration of structures or site improvements in neighboring areas
adjacent to the vacant land, or
b. The area immediately prior to becoming vacant qualified as a blighted
improved area, or
C. The area consists of an unused quarry or unused quarries, or
d. The area consists of unused railyards, rail tracks or railroad rights-of-way, or
e. The area, prior to its designation, is subject to chronic flooding which
adversely impacts on real property in the area and such flooding is
substantially caused by one or more improvements in or in proximity to the
area which improvements have been in existence for at least five years, or
f The area consists of an unused disposal site, containing earth, stone, building
debris or similar material, which were removed from construction, demolition,
excavation or dredge sites, or
g. The area is not less than 50 or more than 100 acres and 75 percent of which is
vacant, notwithstanding the fact that such area has been used for commercial
agricultural purposes within five years prior to the designation of the
redevelopment project area, and which area meets at least one of the factors
itemized in provision (1) of this subsection (a), and the area has been
designated as a town or village center by ordinance or comprehensive plan
Toirn Center TIF Eligibility Report Page 2
Elk Grove Village, Illinois
adopted prior to January 1, 1982, and the area has not been developed for that
designated purpose.
C. CONCL USIONS
While the Act defines a blighted area and a conservation area, it does not define the various
factors for either, nor does it describe what constitutes presence or the extent of presence
necessary to make a finding that a factor exists. Therefore, reasonable and defensible
criteria should be developed to support each local fmding that an area qualifies as either a
blighted area or as a conservation area. In developing these criteria, the following principles
have been applied:
1. The minimum number of factors must be present and the presence of each
must be documented;
2. Each factor to be claimed should be present to a meaningful extent so that a
local goveming body may reasonably find that the factor is clearly present
within the intent of the Act; and
3. The effect of the factors should be reasonably distributed throughout the
Project Area.
It is also important to note that the test of eligibility is based on the conditions of the Project
Area as a whole; it is not required that eligibility must be established for each and every
property in the Project Area.
Town Center TIF Eligibility Report
Elk Grove Village, Illinois
Paee 3
II. THE PROJECT AREA
The Project Area encompasses a single development site of approximately 23.9 acres
located on seven tax parcels of property. The largest parcels (08-32-202-014, -015 and -
018) contain five separate buildings, including a single building with two tenants referred to
as the "Town Center." The buildings are situated so that the store fronts and entry areas
face each other to form an open interior pedestrian mall with canopies located along the
store fronts running through the center of the complex. Principal anchor stores in the large
buildings include Ace Hardware, Michaels Finer Foods, Jewel Foods, Walgreens and
Goodyear Auto Service; however, both of the large stores previously occupied by Michaels
and Jewel are vacant. Additionally, thirteen of the fifteen smaller store fronts within the
complex are also vacant.
Within the Project Area are additional out lots which include a Citgo Gas Station on the
northeast corner of the Project Area, a movie theatre on parcel 08-32-202-019 along the
south edge of the Project Area and a Burger King restaurant on parcel 08-32-202-020 on the
southeast comer of the Project Area.
The Project Area contains the commercial developments described above as well as parking
around the perimeter of buildings and to the edge of the Project Area. The Village's
Municipal Complex borders the Project Area on the west and multi -family housing, owned
by the Illinois Housing Development Authority, borders the Project Area on the south.
Characteristics of the Project Area include the poor condition of the principal structures on
the site of the former Jewel and Michaels Food Stores. Problem conditions also include
widespread vacancies (67 percent), limited design and size of stores, and obsolete layout
compared to present-day standards. Deterioration of the center and site is a result of lack of
maintenance over a period of years. The entire shopping strip complex is impacted by
functional and economic obsolescence due to a combination of limited design, lack of
amenities and an overall deteriorated condition. All of these factors have contributed to the
extended vacancies and lack of renovation and upgrading to the shopping center.
Access to the Project Area is provided by Arlington Heights Road and Biesterfield Road.
Both of these main regional roadways connect to the principal highways and nearby
interstates located in this northwest portion of the Chicago Metropolitan Area.
Town Center TIF Eligibility Report Page 4
Elk Grove Village, Illinois
III. ELIGIBILITY SURVEY AND ANALYSIS
A survey of existing conditions within the Project Area was completed by TPAP to
document the extent to which each blight factor is present within the Project Area. The
surveys and analyses included:
1. Exterior survey of the entire commercial center and interior survey of the vacant
anchor stores and smaller stores to note the conditions and use of each structure;
2. Field survey of environmental conditions covering streets, sidewalks, gutters, lighting,
traffic, parking facilities, landscaping, fences and walls, and general property mainte-
nance;
3. Analysis of existing uses and their relationships;
4. Analysis of original and current platting and building size and layout;
5. Analysis of vacant portions of the site and building;
6. Analysis of building floor area and site coverage; and
7. Review of previously prepared plans, studies and data.
A. BUILDING CONDITIONSURVEY
In September 1996, TPAP documented the Project Area conditions based on exterior
inspections of all buildings. Noted during the inspection were structural deficiencies of
individual buildings and related environmental deficiencies in the Project Area.
Summarized below is the process used for assessing building conditions in the Project Area,
the standards and criteria used for evaluation, and the findings as to the existence of
dilapidation or deterioration of structures. Figure 2, Existing Land -Uses, identifies existing
land uses within the Project Area and Figure 3, Exterior Survey Form, illustrates the
building condition survey form used to record building conditions.
1. Building Components Evaluated
During the field survey, each component of the subject buildings was examined to
detennine whether it was in sound condition or had minor, major, or critical defects.
Building components examined were of two types:
Toivn Center TIF Eligibility Report Page 5
Elk Grove Village, Illinois
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Prima tructural Components.
These include the basic elements of any building: foundation walls, load bearing
walls and columns, roof and roof structure.
econdary Building Components.
These components are generally added to the primary structural components and are
necessary parts of the building, including porches and steps, windows and window
units, doors and door units, chimneys, gutters and downspouts.
Criteria for Classifying Defects for Building Components.
Each primary and secondary component was evaluated separately as a basis for
determining the overall condition, of individual buildings. This evaluation consid-
ered the relative importance of specific components within a building and the effect
that deficiencies in components will have on the remainder of the building.
2. Building Component Classifications
The four categories used in classifying building components and systems and the criteria
used in evaluating structural deficiencies are described below.
a. Soun .
Building components which contain no defects, are adequately maintained,
and require no treatment outside of normal maintenance as required during
the life of the building.
b. Deficient - Requiring Minor Repair.
Building components which contain defects (loose or missing material or
holes and cracks over a limited area) which may or may not be corrected
through the course of normal maintenance but could be significant depend-
ing on the size of the building or number of buildings in a large complex.
C. Deficient - Requiring Major Repair.
Building components which contain major defects over a widespread area
and would be difficult to correct through normal maintenance. Buildings in
the major deficient category would require replacement or rebuilding of
components or significant upgrading of larger buildings or complexes of
buildings by people skilled in the building and maintenance trades.
d. Critical.
Building components which contain major defects (bowing, sagging, or
settling to any or all exterior component causing the structure to be out -of -
plumb, or broken, loose or missing material and deterioration over a wide -
Town Center TIF Eligibility Report
Elk Grove Village, Illinois
Page 8
spread area) so extensive that building is classified as substandard
(dilapidated) and the cost of and degree of repair would be excessive or un-
feasible.
3. Final Building Rating .
After completion of the exterior building condition survey, each individual building was
placed in one of four categories based on the combination of defects found in various
primary and secondary building components. Each final rating is described below.
a. Sound
'_. Sound buildings kept in a standard condition, requiring no maintenance at
present. Buildings so classified have less than one minor defect.
a
b. Deficient.
Deficient buildings contain defects which collectively are either not easily
correctable through normal maintenance or require contracted skills to ac-
complish the level of improvements as part of maintenance or correction of
defects. The classification of major or minor reflects the degree or extent of
defects found during the survey of the building.
c. Minor.
Buildings classified as deficient - requiring minor repairs - have at least one
minor defect, beyond normal maintenance, in one of the primary compo-
nents or in the combined secondary components, but less than one major de-
fect.
d. Major.
Buildings classified as deficient - requiring major repairs - have at least one
major defect in one of the primary components or in the combined secon-
dary components, but less than one critical defect.
e. Substandard.
Structurally substandard buildings contain defects which are so serious and
so extensive that the building must be removed. Buildings classified as
structurally substandard have two or more major defects.
Minor deficient and major deficient buildings are considered to be the same as deteriorating
buildings as referenced in the Act; substandard buildings are the same as dilapidated
buildings. The words building and structure are presumed to be interchangeable.
Toi m Center TIF Eligibility Report Page 9
Elk Grove Village, Illinois
B. PRESENCE OF BLIGHT FACTORS
Summarized below are the conclusions of the surveys and analyses completed for each
blight factor based on existing conditions within the Project Area. The conclusions indicate
whether the factor is found to be present within the Project Area, and the relative extent to
which the factor is present. A factor noted as "not present" indicates either that no
information was available or that no evidence was documented as part of the various
surveys and analyses which would indicate its presence. A factor noted as "present to a
limited extent" indicates that the factor is present, but the distribution or impact of the factor
is limited. Finally, a factor noted as "present to a major extent" indicates that the factor is
present throughout major portions of the block, and that the presence of such conditions has
a major adverse impact or influence on adjacent and nearby development.
1. Age
Age as a blighting factor presumes the existence of problems or limiting conditions
resulting from normal and continuous use of structures over a period of years. While
smaller structures, including residential buildings often do not indicate significant problems
as a result of age until 35 years or older, larger commercial buildings such as motels,
shopping centers, larger office buildings typically are faced with problems as a result of age
after 20 years. Most of these type of buildings require major renovation and increased
maintenance as a result of age and direct competition from more modem buildings with
similar occupancies. Since building deterioration and related structural problems can be a
function of time, temperature and moisture, commercial buildings, which are approaching
20 years or more such as the subject property, typically exhibit more problems and require a
greater level of maintenance than more recently constructed buildings of the same type.
Discussion
Of the ten buildings comprising the Town Center, eight were constructed in 1966 and two.
in 1972, making the greatest portion of the shopping center 30 years in age and the two later
buildings 24 years in age. Many of the marketing problems associated with the Project
Area are a direct result of the existing conditions, due to age, with the corresponding
obsolescence and related higher costs of maintenance.
Conclusion
Age as a factor is present to a major extent and adversely impacts the major portion of the
Project Area.
Totivn Center TIF Eligibility Report Page 10
Elk Grove Village, Illinois
2. Dilapidation
Dilapidation refers to an advanced state of disrepair of buildings and improvements.
Webster's New Collegiate Dictionary defines "dilapidate," and "dilapidation" as follows:
•Dilal2idat , "... to become or cause to become partially ruined and in need of re-
pairs, as through neglect."
•
Dilapidated . "... falling to pieces or into disrepair; broken down; shabby and
neglected."
• Dilapidation, "... dilapidating or becoming dilapidated; a dilapidated condition.
The building condition analysis is based on a detailed interior -exterior inspection of the
building and site during September, 1996. Noted during the inspection were structural
deficiencies in building components and related environmental deficiencies in the Project
Area. The Building Condition Survey Form is shown in Figure 3.
Discussion
The condition of the principal building groups, including individual buildings within the
Project Area, was determined based on observable components. Based on the degree and
distribution of major and minor defects, the overall condition ratings of the structures
resulted in one complex (Jewel - Michaels and connected stores) being classified as
requiring major repairs. Three other building groups were found to be minor deficient. The
three outlot buildings (the theatre, Burger King and the Citgo Gas Station) as well as the
Dental Store building were more recently constructed and considered basically sound.
Conclusion
The result of the analysis of dilapidation indicates that no buildings were found to be in
substandard (dilapidated) condition. As a result, this factor is not present.
3. Obsolescence
Webster's New Collegiate Dictionary defines "obsolescence" as "being out of use;
obsolete." "Obsolete" is further defined as "no longer in use; disused" or "of a type or
fashion no longer current." These definitions are helpful in describing the general obsoles-
cence of buildings or site improvements in a proposed redevelopment project area. In
making findings with respect to buildings, it is important to distinguish between functional
obsolescence, which relates to the physical utility of a structure, and economic obsoles-
cence, which relates to a property's ability to compete in the market place.
Totvn Center TIF Eligibility Report Page 11
Elk Grove Village, Illinois
Functional Obsolescence
Structures historically have been built for specific uses or purposes. The design,
location, height and space arrangement are intended for a specific occupant at a given
time. Buildings become obsolescent when they contain characteristics or deficiencies
which limit the use and marketability of such buildings after the original use ceases. The
characteristics may include loss in value to a property resulting from an inherent defi-
ciency existing from poor design or layout, the improper orientation of the building on
its site, etc., which detracts from the overall usefulness or desirability of a property.
Economic Obsolescence.
Economic obsolescence is normally a result of adverse conditions which cause some
degree of market rejection and, hence, depreciation in market values. Typically, build-
ings classified as dilapidated and buildings which contain vacant space are characterized
by problem conditions which may not be economically curable, resulting in net rental
losses and/or depreciation in market value.
Obsolescence as a factor should be based upon the documented presence and reasonable
distribution of buildings and site improvements evidencing such obsolescence.
Obsolete buildings contain characteristics or deficiencies which limit their long-term sound
use or reuse. Obsolescence in such buildings is typically difficult and expensive to correct.
Obsolete building types have an adverse affect on nearby and surrounding development and
detract from the physical, functional and economic vitality of the area.
Site improvements, including sewer and water lines, public utility lines (gas, electric and
telephone), roadways, parking areas, parking strictures, sidewalks, curbs and gutters,
lighting, etc., may also evidence obsolescence in terms of their relationship to contemporary
development standards for such improvements. Factors of obsolescence may include
inadequate utility capacities, outdated designs, etc.
Discussion
Obsolescence is present in the Project Area's buildings and site. The structures are
characterized by conditions which seriously limit its use and marketability according to
contemporary standards. Obsolescence in the Project is evidenced by the following:
• The single -purpose design (based on the initial use and activity for which
the center was constructed) which would require an excessive cost to mod-
ify, alter or renovate for long-term use.
Toivn Center TIF Eligibility Report Page 12
Elk Grove Village, Illinois
Limited design with basic structural materials; limited facade and canopy
treatment; solid wall and loading areas facing the parking areas which
visually detracts from the appearance of buildings and limits access from the
perimeter parking lot; and limited lighting and landscaping of the Project
Area. None of these conditions typically exists in more recently constructed
buildings of this type which are fully occupied.
Stores, including both anchor and smaller tenant space are extremely limited
in size and are below the amount of square footage currently demanded by
both larger anchor stores and smaller retail tenants.
Over 67 percent of the shopping center is currently vacant, including the two
anchor stores (Jewel and Michaels) in the large building group and an addi-
tional thirteen smaller stores throughout the remaining buildings within the
shopping center. Vacancies have existed for an extended period of time and
interest by possible tenants has not materialized. As a result, maintenance
has been deferred and funds for upgrading and maintaining the property
have not been forthcoming due to the vacancies and corresponding lack of
income for the property.
Lack of energy-efficient construction, requiring excessive operating costs.
Conclusion
The analysis indicated that obsolescence is present to a major extent throughout all portions
of the principal group of buildings within the Project Area.
4. Deterioration
Deterioration refers to any physical deficiencies or disrepair in buildings or site improve-
ments requiring treatment or repair.
Deterioration may be evident in basically sound buildings containing minor
defects, such as lack of painting, loose or missing materials, or holes and
cracks over limited areas. This deterioration can be corrected through nor-
mal maintenance.
Deterioration which is not easily correctable and cannot be accomplished in
the course of normal maintenance may also be evident in buildings. Such
buildings may be classified As minor deficient or major deficient buildings,
depending upon the degree or extent of defects. This would include build-
Toivn Center TIF Eligibility Report Page 13
Elk Grove Village, Illinois
ings with defects in the secondary building components (e.g., doors, win-
dows, porches, gutters and downspouts, fascia materials, etc.), and defects in
primary building components (e.g., foundations, frames, roofs, etc.), respec-
tively.
Discussion
Building Deterioration. The analysis of building deterioration is based on the survey
methodology and criteria described in the preceding section on "Dilapidation."
Property tax records indicate that various building groups within the Project Area are
located on more than one parcel, making a correlation of the buildings on a block and parcel
basis confusing. Table 1 summarizes the conditions of buildings and building groups in the
Project Area.
Table 1. Summary of Building Conditions
Building/Group
Sound
Minor
Deficient
Major
Deficient Substandard
Jewel/Michaels and connected stores
1
Walgreens and connected stores
1
Ace Hardware and connected stores
1
Goodyear and connected stores
1
Dental Store/Cent. 21
1
Theatre Building
I
Burger King
1
Citgo Station
1
Total
4
3
1
Percent Deficient
50.0
37.5
12.5 0
Defects and deterioration noted during the surveys resulting in the overall building ratings
indicated above are as follows:
Toim Center TIF Eligibility Report Page 14
Elk Grove Village, Illinois
Jewel/Michaels and connected stores: Wide -spread problems with two major components
were observed. First, seepage of the roof had occurred on both the large Jewel and Michaels
stores, impacting both the floor and floor covering (tile) which are deteriorated and the
ceiling which show panels missing and panels hanging down in these wet areas. Second,
exterior masonry with step cracking and shifting of wall sections was observed above the
front windows of the Jewel and Michaels stores. In addition, peeling and rusted louvers on
the vent grill covers were observed on the west wall and holes from previous sign fasteners
were observed on the north wall of the Jewel Store.
Walgreens and connected stores: Defects are limited to broken and missing glass sections
in windows and storefront doors and damage on interior walls and drop ceilings resulting
from tenants vacating premises.
Ace Hardware and connected stores: Limited defects include broken glass in vacant store
fronts and minor settling affecting the north masonry wall of the vacant store located south
of the Dental Store. A vertical crack/separation with a section of missing elastic mortar
patch runs from the base of the wall to the top of the wall. Stress cracks run through the
center of all full bricks and indicate settling to the rear half of the building along the side
and rear of this building.
Goodyear and connected stores: Limited defects include broken, cracked and missing Blass
in vacant store fronts; limited irregularities (bulging) of stucco surfaces on the exterior; and
masonry deterioration along sections of the south wall building extensions.
Dental Store: No significant defects were noted.
Theatre, Burger King, Citgo Station: No defects were noted.
Field surveys were conducted to identify the condition of parking and surface storage areas,
sidewalks, canopies and other related site improvements. The results of the surveys are
described below.
Parking Surfaces: The parking and loading areas indicate wide -spread wear and alligator-
in-, of the asphalt surface, including pot holes, cracked areas and weed growth around the
following: (i) the shopping center sign along the Arlington Heights Road frontage area, (ii)
the light standards in the parking area and (iii) throughout most of the area located west of
the main sections of the shopping center.
Canopies and tree planters: Canopies along the store fronts contain metal support columns
with missing and peeling paint. Canopy ceilings require repainting. Masonry retaining walls
around all tree planters are bowing Oat and contain cracked masonry retaining walls and
cracked concrete sills.
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Elk Grove Village, Illinois
Conclusion
Deterioration is present to a major extent throughout major portions of the shopping center
buildings and throughout the site improvements within the Project Area.
5. Illegal Use Of Individual Structures
Illegal use of individual structures refers to the presence of uses or activities which are not
permitted by law.
Discussion
A review of the Elk Grove Zoning Ordinance indicates that the existing site is zoned for B-
1 commercial use. One activity (Goodyear) does not comply to the current zoning and is
considered a legal non -conforming use.
Conclusion
No illegal uses of individual structures is evident.
6. Presence Of Structures Below Minimum Code Standards
Structures below minimum code standards include all structures which do not meet the
standards of zoning, subdivision, building, housing, property maintenance, fire, or other
governmental codes applicable to the property. The principal purposes of such codes 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 are characterized by defects or deficiencies which threaten health and safety.
Discussion
The defects indicated as part of the deterioration of the shopping center are below the
required property maintenance codes for existing buildings. Additionally, within the two
major anchor stores of the Jewel/Michaels building group, much of the ceiling, roof and
floor areas are damaged and are below code compliance.
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Elk Grove Village, Illinois
Conclusion
The conditions noted above, including both property maintenance and building component
defects, are present to a major extent and are below the Village's building and maintenance
codes for existing buildings.
7. Abandonment
Webster's New Collegiate Dictionary defines Abandon as "to give up with the intent of
never again claiming one's right or interest"; or "to give over or surrender completely; to
desert."
Conclusion
Based on the analysis of the properties within the Project Area, abandonment as a factor is
not found to be present.
S. Excessive Vacancies
Excessive vacancies refers to the presence of buildings or sites which are unoccupied or not
utilized and which present adverse influence on the area because of the frequency of
vacancies, or the duration of vacancies. Excessive vacancies include properties for which
little evidence exists for future occupancy or utilization.
Discussion
Within the Project Area, excessive vacancies include the two main anchor stores formerly
occupied by Jewel and Michaels Finer Foods. In addition to these large building portions,
thirteen of the remaining fifteen smaller stores in all building group are vacant. Of the total
139,078 square feet of floor area within the major shopping center portion of the Project
Area (excluding buildings in the outlots), approximately 93,180 square feet, or 67 percent,
is vacant.
The results of the analysis indicates that the factor of excessive vacancies is present to a
major extent throughout the Project Area.
Town Center TIF Eligibility Report Page 17
Elk Grove Village, Illinois
9. Overcrowding Of Structures And Community Facilities
Overcrowding of structures and community facilities refers to utilization of public or private
buildings, facilities, or properties beyond their reasonable or legally permitted capacity.
Overcrowding is frequently found in buildings originally designed for a specific use and
later converted to accommodate a more intensive use of activities without adequate
provision for minimum floor area requirements, privacy, ingress and egress, loading and
services, capacity of building systems, etc.
Discussion
While some storing of merchandise on the exterior sidewalk areas around the Ace Hardware
Store was noted, the merchandise may have been stored outside for seasonal appeal and not
due to lack of interior space.
Conclusion
No conditions of overcrowding of structures and community facilities have been docu-
mented as part of the surveys and analyses undertaken within the Project Area.
10. Lack Of Ventilation, Light, Or Sanitary Facilities
Lack of ventilation, light, or sanitary facilities refers to substandard conditions which
adversely affect the health and welfare of building occupants, e.g., residents, employees, or
visitors. Typical requirements for ventilation, light, and sanitary facilities include:
• Adequate mechanical ventilation for air circulation in spaces/rooms without win-
dows, (e.g., bathrooms), and dust, odor or smoke producing activity areas;
• Adequate natural light and ventilation by means of skylights or windows or interior
rooms/spaces, and proper window sizes and amounts by room area to window area
ratios; and
• Adequate sanitary facilities, i.e., garbage storage/enclosure, bathroom facilities. hot
water, and kitchens.
Conclusion
No conditions of the lack of ventilation, light, or sanitary facilities have been documented as
part of the surveys and analyses undertaken within the Project Area.
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Elk Grove Village, Illinois
11. Inadequate Utilities
inadequate utilities refers to deficiencies in the capacity or condition of infrastructure which
services a property or area, including, but not limited to, storm drainage, water supply,
electrical power, streets, sanitary sewers, gas and electricity.
Conclusion
No conditions of inadequate utilities regarding the amount of drainage structures, water
retention or storm water requirements have been documented as part of the surveys and
analysis undertaken within the Project Area.
12. Excessive Land Coverage
Excessive land coverage refers to the over -intensive use of property and the crowding of
buildings and accessory facilities onto a site. Problem conditions include buildings either
improperly situated on the parcel or located on parcels of inadequate size and shape in
relation to present-day standards of development for health and safety. The resulting
inadequate conditions include such factors as insufficient provision for light and air,
increased threat of spread of fires due to close proximity to nearby buildings, lack of
adequate or proper access to a public right-of-way, lack of required off-street parking, and
inadequate provision for loading and service. Excessive land coverage conditions have an
adverse or blighting effect on nearby development.
Conclusion
No conditions of excessive land coverage have been documented as part of the surveys and
analysis undertaken within the Project Area.
13. Deleterious Land -Use Or Layout
Deleterious land uses include all instances of incompatible land -use relationships, buildings
occupied by inappropriate mixed uses, or uses which may be considered noxious, offensive
or environmentally unsuitable.
Deleterious layout includes evidence of improper or obsolete platting of the land, inade-
quate street layout, and parcels of inadequate size or shape to meet contemporary develop-
ment standards. It also includes evidence of improper layout of buildings on parcels and in
relation to other buildings.
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Elk Grove Village, Illinois
Discussion
The site contains seven tax parcels, including three large parcels and four smaller out
parcels, including a land -locked parcel which is occupied by the theatre building.
The shopping center buildings and building groups are limited in size and are arranged in
such a manner that access is only from the interior of the mall and not directly from the
parking areas along much of the length of the center and loading areas around the perimeter
conflict with parking and pedestrian traffic.
Conclusion
Deleterious land use or layout as a factor is present to a major extent with respect to the
layout of parcels and the layout, size, relationship and configuration of buildings.
14. Depreciation Of Physical Maintenance
Depreciation of physical maintenance refers to the effects of deferred maintenance and the
lack of maintenance of the buildings and related yard storage areas, parking areas and public
improvements, including streets. The presence of this factor within the Project Area
includes:
• Buildings. Five of the eight separate buildings and building groups evidence defects
and deterioration and related deferred maintenance of roof areas, ceilings, interior
flooring, canopies, windows and portions of the exterior walls.
• Parking areas tree planters. sidewalks. canopies. The parking area is worn through-
out most of the Project Area with alligatored and cracked surface, pot holes and
weed growth. Tree planter retaining walls are cracked and bowed out. Canopies
along store fronts lack paint and contain blistered paint on columns and ceilings.
Several walks contain evidence of settling with cracks.
Conclusion
The results of the surveys and analyses of depreciation of physical maintenance indicate
that this factor exists to a major extent with respect to the principal structures and site
improvements within the Project Area.
15. Lack Of Community Planning
The Project Area was developed during the mid 1960's when expansion of development
from the original areas of the Village took place. During this period, Village ordinances,
Town Center TIF Eligibility Report Page 20
Elk Grove Village, Illinois
planning guidelines, development controls or comprehensive plan may have been sufficient
to monitor the development of the principal buildings, which were constructed during 1966,
and based on criteria which was acceptable at that time. Subsequently the local plans,
ordinances and regulations which guide commercial development have been updated.
Irrespective of the current platting, layout, building design and configuration of the site
being out of conformity with current guidelines, no indications suggest that, at the time of
the development of the Project Area, there were no plans or ordinances guiding the initial
development of the Project Area.
Conclusion
Lack of community planning as a factor can not be sufficiently documented.
C. ELIGIBILITY CONCLUSIONS
The Project Area meets the requirements of the Act for designation as a blighted area. There
is a reasonable presence of seven of the fourteen factors listed in the Act for improved areas.
These factors include:
1. Age -- moderate presence
2. Obsolescence -- major presence
3. Deterioration -- major presence
4. Presence of structures below code -- major presence
5. Excessive vacancies -- major presence
6. Deleterious land use or layout -- major presence
7. Depreciation of physical maintenance -- major presence
A summary of the blighting factors in the Project Area is contained in Figure 4.
The eligibility findings indicate that the Project Area site is in need of revitalization and
guided growth to ensure that it will contribute to the long-term physical, economic, and
social well-being of the Village. All factors indicate that the area has not been subject to
sound growth and development through investment by private enterprise and would not
reasonably be anticipated be developed without public action.
Toren Center TIF Eligibility Report Page 21
Elk Grove Village, Illinois
Biesterfield Road l
i
1
' Summary of Blight Factor
1. Age
2. Obsolescence
3. Deterioration
4. Structures Below Minin
Code Standards
5. Excessive Vacancies
6. Deleterious Land -Use
or Layout
7. Depreciation of Physica
Maintenance
=6 I
0
' Figure 4 ,
Summary of Blight Factors
TOWN CENTS�
Tax Increment Financing E
10.24.96
North
Report Prepared er. Trkla, Petrigrew, anon s Payne, Inc.