The village of Winfield and two school districts are in negotiations to settle their long-running dispute over a special taxing district downtown.
Nearly three years ago, Winfield Elementary District 34 and West Chicago High School District 94 filed a lawsuit against the village challenging the legality of a Town Center tax increment financing district.
In a TIF district, as redevelopment boosts property values, the extra tax revenue that otherwise would go to taxing bodies such as schools and parks can be used to pay for improvements within its boundaries.
After the village presented a new settlement offer to District 34 in June, the parties entered into settlement negotiations, Village Manager Curt Barrett said in an email Monday. The village followed up with a revised settlement offer to which the school districts responded.
“The School District response, as we understand it, would not allow for Town Center to fully develop and reach its potential as a commercial and community hub,” Barrett wrote. “The Village continues to evaluate the School District counter proposal, including a communication sent this past week, in which the Village seeks clarification on some matters.”
Attorneys for the school districts sent a counter offer to the village earlier this month. The next court date in the case is scheduled for Sept. 25.
“Even though the school districts continue to contend that Winfield’s TIF 2 is illegal, the settlement offer allows the Village of Winfield to maintain TIF 2 for economic development,” a District 34 statement read.
Among the highlights of the proposed terms: The village would receive $14.3 million of the currently projected revenue, “which should fund every single Village project except for the construction of a new village hall,” according to the statement.
The village would receive nearly $7.5 million for the proposed Winfield Reserve apartment development, $1 million for a plaza, and $1 million for the village’s infrastructure. The village would be able to use the balance for other economic projects.
The village and the other taxing bodies would split any future TIF 2 revenue on a 50/50 basis.
The village has said the existing village hall — which also houses the Winfield police station — is outdated. The village has said it wants to use TIF funds to build a police department and municipal center in a new location to open up the current site for development near the Metra station.
Public developments would include a plaza on part of the land currently occupied by the village hall.
· Daily Herald staff writer Susan Sarkauskas contributed to this report