The vacant Holiday Inn Express near the northwest corner of Route 53 and Dundee Road is part of a new TIF district approved Monday.
Daily Herald file photo
Palatine is hoping to spur commercial development along Dundee Road between Baldwin Road and Route 53 with a new Tax Increment Financing District.
The village council approved the new TIF district at Monday’s meeting.
Palatine, as with many other towns, has turned to TIF districts to jump start economically underperforming areas. It works by freezing the taxable value of the properties in the district for up to 23 years.
While taxing bodies collect property taxes from the frozen value, dollars from new growth go into a fund that can be used to cover infrastructure costs in the project area.
The new TIF district includes 17 parcels and 24 buildings on 44 acres.
Boundaries of the new Dundee and Route 53 TIF District, including the properties incorporated from the existing Rand Corridor TIF District.
Courtesy of Palatine
Among the buildings are a vacant Holiday Inn Express near Route 53 and a strip center and outlot at the northeast corner of Dundee Road and Baldwin Road.
A TIF eligibility report by SB Friedman Development Advisors, LLC determined the zone qualifies as a “conservation area” under four factors — a decline in assessed value, deterioration, structures below minimum code standards and inadequate utilities.
Village Manager Reid Ottesen said the area that includes the northeast corner of Baldwin and Dundee has been carved out of an already existing TIF and absorbed by the new one.
Community Development Director Michael Jacobs said the strip center and outlot “haven’t seen much investment over the years.”
Jacobs said the goal is to attract office, commercial and light industrial uses.
“This is not to build high density residential. This is to keep it commercial, which helps our tax base,” District 1 Council Member Tim Millar said.
The Friedman report estimates eligible redevelopment costs can reach $30 million, including $13 million in public works improvements and $9 million in property assembly and site preparation.
The report also expects the 2022 taxable value of $9.5 million to reach $33 million by 2047.