HomeMy WebLinkAboutOrd 5582 08/15/2006
ORDINANCE NO. 5582
AN ORDINANCE OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY,
ILLINOIS AMENDING A TAX INCREMENT REDEVELOPMENT PLAN
AND REDEVELOPMENT PROJECT OF THE DOWNTOWN TIF NO.1
(AMENDMENT #3) REDEVELOPMENT PROJECT AREA
Passed and approved by
the President and Board of Trustees
the 15TH day of August, 2006
Published in pamphlet form by
authority of the corporate
authorities of the Village of
Mount Prospect, Illinois,
the 16th day of August, 2006
Ordinance No. 5582
AN ORDINANCE OF THE VILLAGE OF
MOUNT PROSPECT, COOK COUNTY, ILLINOIS,
AMENDING A TAX INCREMENT REDEVELOPMENT PLAN
AND REDEVELOPMENT PROJECT FOR THE
DOWNTOWN TIF NO.1 (AMENDMENT #3)
REDEVELOPMENT PROJECT AREA
WHEREAS, it is desirable and in the best interest of the citizens of the Village of Mount
Prospect, Cook County, Illinois (the "Village"), for the Village to implement tax increment
allocation financing pursuant to the Tax Increment Allocation Redevelopment Act, Division 74.4
of Article 11 of the Illinois Municipal Code, as amended (the "Act"), for proposed Amendments
#3 to the Downtown TIP No. 1 redevelopment and redevelopment project (the "Plan and
Project") within the municipal boundaries of the Village within the redevelopment project area
(the "Area") described in Section l(a) of this Ordinance, which Area constitutes in the aggregate
more than one and one-half acres; and
WHEREAS, pursuant to Section 11-74.4-5 of the Act, the Village President and Board of
Trustees of the Village (the "Corporate Authorities") called a public hearing relative to the Plan
and Project and the designation of the Area as a redevelopment project area under the Act for
December 6th, 2005; and
WHEREAS, due notice with respect to such hearing was given pursuant to Section 11-
74.4-5 of the Act, said notice being given to taxing districts and to the Department of Commerce
and Economic Opportunity of the State of Illinois by certified mail on December 19, 2005, by
publication on January 18, 2006, and January 21, 2006, and by certified mail to taxpayers and
residents within the Area on January 18, 2006; and
WHEREAS, the Village has heretofore convened a joint review board as required by and
in all respects in compliance with the provisions of the Act; and
WHEREAS, the Corporate Authorities have reviewed the information concerning such
factors presented at the public hearing and have reviewed other studies and are generally
informed of the conditions in the proposed Area that could cause the Area to be a "conservation
area" as defined in the Act; and
WHEREAS, the Corporate Authorities have reviewed the conditions pertaining to lack of
private investment in the proposed Area to determine whether private development would take
place in the proposed Area as a whole without the amendment ofthe proposed Plan; and
WHEREAS, the Corporate Authorities have reviewed the conditions pertaining to real
property in the proposed Area to determine whether contiguous parcels of real property and
improvements thereon in the proposed Area would be substantially benefited by the proposed
Project improvements; and
WHEREAS, the Corporate Authorities have reviewed the proposed amendments to the
Plan and Project and also the existing comprehensive plan for development of the Village as a
whole to determine whether the proposed amendments to the Plan and Project conform to the
comprehensive plan of the Village.
NOW, THEREFORE, BE IT ORDAINED by the Village President and Board of
Trustees of the Village of Mount Prospect, Cook County, Illinois, as follows:
Section 1.
Findings. That the Corporate Authorities hereby make the following
findings:
a. The Area is legally described in Exhibit A attached hereto and
incorporated herein as if set out in full by this reference. The general street location for the Area
is described in Exhibit B attached hereto and incorporated herein as if set out in full by this
reference. The map of the Area is depicted on Exhibit C attached hereto and incorporated herein
as if set out in full by this reference.
b. There exist conditions that cause the Area to be subject to designation as a
redevelopment project area under the Act and to be classified as a conservation area as defined in
Section 11-74.4-3(b) of the Act.
c. The proposed Area on the whole has not been subject to growth and
development through investment by private enterprise and would not be reasonably anticipated
to be developed without the amendments to the Plan.
d. The Plan and Project as amended, conform to the comprehensive plan for
the development of the Village as a whole, as reflected in the Village's zoning map.
e. As set forth in the Plan it is anticipated that all obligations incurred to
finance redevelopment project costs, if any, as defined in the Plan shall be retired within twenty-
three (23) years after the Area is designated, or thirty-five (35) years after the Area is designated,
ifthe Act is so amended to allow for an additional twelve (12) year extension ofthe term.
f. The parcels of real property in the proposed amended Area are contiguous,
and only those contiguous parcels of real property and improvements thereon that will be
substantially benefited by the proposed Project improvements are included in the proposed Area.
Section 2. Plan and Proiect Approved. That the amended Plan and Project, which
were the subject matter of the public hearing held on February 7,2006, are hereby adopted and
approved. A copy of the amended 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. That if any section, paragraph, or provision of
this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or
unenforceability of such section, paragraph, or provision shall not affect any of the remaining
provisions of this Ordinance.
Section 4.
Superseder and Effective Date. All ordinances, resolutions, motions, or
orders in conflict herewith shall 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.
ATTACHMENTS:
EXHIBIT A - Legal Description
EXHIBIT B - General Street Location
EXHIBIT C - Map of Redevelopment Project Area
EXHIBIT D - Redevelopment Plan and Project
PASSED this 15th day of August, 2006.
AYES 6 NAYS 0 ABSENT 0
,
APPROVE~_ t ~
LLAGE PRESIDENT
ATTEST: ~~~~ 0(7
VILLAGE CLERK /
Co:/Mount Prospect/Ordinance/Ordinance Approving 11.15.05
LEGAL DESCRIPTION
Legal Description of Downtown TIP No.1 Redevelopment Project Area, As Amended is as follows:
Beginning at the intersection of the east right-of-way line of Main Street, State oflllinois Route 83, with
the north right-of-way line of Central Road, thence easterly along said north right-of-way line to a point
of intersection with the extension of the west property line of Lots 1 through 11 of Block 5 in Busse and
Wille's Resubdivision in Mount Prospect, thence southerly along the extension of the west property line
of Lots 1 through 11 of Block 5 in Busse and Wille's Resubdivision in Mount Prospect to the north
right-of-way line of Busse Avenue, thence easterly along the north right-of-way line of Busse Avenue to
a point of intersection with the extension of the east property line of Lots 1 through 8 of Block 11 of
Busse and Wille's Resubdivision in Mount Prospect, thence southerly along the extension ofthe east
property line of Lots 1 through 8 of Block 11 of Busse and Wille's Resubdivision in Mount Prospect to
the southeast comer of Lot 8 of Block 11 of Busse and Wille's Resubdivision in Mount Prospect; thence
easterly along the south property line of Lot 17 of Block 11 of Busse and Wille's Resubdivision in
Mount Prospect extended to a point of intersection with the east right-of-way line of Elm Street, thence
southerly along the east right-of-way line of Elm Street to the north right-of-way line of Evergreen
Avenue; thence easterly along the north right of-way line of Evergreen Avenue to a point of intersection
with the extension of the west property line of Lots 1 through 21 of Block 20 of Mount Prospect
Subdivision in Section 12-41-1 1, recorded September 2, 1874, thence southerly along the extension of
the west property line of Lots 1 through 21 of Block 20 of Mount Prospect Subdivision in Section 12-
41-1 1, recorded September 2, 1874 to the northwest comer of Lot 1 of Bruce's Resubdivision in Mount
Prospect, thence easterly along the north property line of Lot 1 of Bruce's Resubdivision in Mount
Prospect extended to a point of intersection with the east right-of-way line of Owen Street, thence
southerly along the east right-of-way line of Owen Street extended to a point of intersection with the
southerly right-of-way line of Northwest Highway, US Rode 14, thence northwesterly along the
southerly right-of-way line of Northwest Highway, US Route 14 to a point of intersection with the north
right-of-way line of Central Road; thence easterly along the north right-of-way line of Central Road to
the southwest comer of Lot 1 of Trapani's Resubdivision in Mount Prospect, thence northerly along the
west property line of Trapani's Resubdivision in Mount Prospect to the northwest comer of Lot 1 of
Trapani's Resubdivision in Mount Prospect, thence easterly along the north property line of Lot 1 of
Trapani's Resubdivision in Mount Prospect extended to a point of intersection with the east right of-way
line of Main Street, State of Illinois Route 83; thence southerly along the east right-of-way line of Main
Street, State oflllinois Route 83 to the point of beginning at the point of intersection of the east right-of-
way line of Main Street, State of Illinois Route 83, with the north right-of-way line of Central Road, all
located in part ofthe Northeast Quarter and the Northwest Quarter of Section 12, and the Northeast
Quarter of Section 11 all in Township 41 North, Range 11 East of the Third Principal Meridian, and in
part ofthe Southwest Quarter and the Southeast Quarter of Section 34, Township 42 North, Range 11
East ofthe Third Principal Meridian all in Cook County, Illinois.
EXHIBIT B
The existing Downtown TIF No.1 is generally bounded by Northwest Highway on the
south and west, Central Road, Busse A venue and Evergreen Avenue to the north, and Maple
Street and Owen Street to the east.
The proposed amendments (amendment #3) include property generally located at the
southeast comer of Emerson Street and Busse Avenue, and property generally located at
northwest comer of Main Street and Central Road.
EXHIBIT C
MAP OF AMENDED REDEVELOPMENT PROJECT AREA
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EXHIBIT D
AMENDED REDEVELOPMENT PLAN AND PROJECT
(Amendment #3)
DRAFT dated April 5.. 2006
AMENDMENT #3 TO:
VILLAGE OF MOUNT PROSPECT
DOWNTOWN TIF NO.1
REDEVELOPMENT PROJECT AREA
REDEVELOPMENT PLAN AND PROJECT
Prepared Jointly By:
Village of Mount Prospect
and
Kane, McKenna and Associates, Inc.
Original Plan and Project:
First Amendment to Plan and Project:
Second Amendment to Plan and Project:
Third Amendment to Plan and Project:
April, 1985
December, 1988
January, 1993
, 2006
The Village of Mount Prospect (the "Village") Downtown TIF No.1 Redevelopment
Project and Plan, is amended as follows:
1. The "List of Tables and Exhibits" is amended to include: Exhibit 8 - Legal Description -
Amendment #3. Exhibit 9 - Amendment #3 TIP Eligibility Report.
2. The "Introduction" section 3, second paragraph is amended to include the following last
sentences at the end of the page.
The Amendment #3 to the Redevelopment Area was prepared by the Village with the
assistance of Kane, McKenna and Associates, Inc. The Amendment #3 area includes
new parcels contiguous to the initial redevelopment project area, as amended, and
includes properties located at the northwest section and at the north east section. (See
Exhibit 1 Amended Boundary Map).
3. The "Conservation Area Conditions Existing in the Redevelopment Project Area"
section, last paragraph of page 7 is amended to include the following language:
The property included in the area of the Amendment #3 meets the eligibility requirements
of the Act. The proposed amended boundaries are described in Exhibit 1 of the
Redevelopment Plan and such eligibility findings are included in Exhibit 9, attached
hereto.
4. The "Redevelopment Plan and Project Objectives" section, page 8 is amended to include
the following paragraph:
It is found, and certified by the Village, in connection to the process required for the
amendment of this Plan and Project pursuant to 65 ILSC Section 5/11-74.4.3(n)(5) of the
Act, that this Plan and Project will not result in the displacement of 10 or more inhabited
residential units. Therefore, this Plan and Project does not include a housing impact
study. If at a later time the Village does decide to dislocate more than ten (10) inhabited
residential units, this Plan would have to be amended and a housing impact study would
be completed.
5. The "Redevelopment Activities" section, page 8 is amended to include an amended
Exhibit 2, Development Program.
6. The "General Land Use Plan section" page 9 is amended to include the following changes
in the first paragraph.
This Redevelopment Plan and Amendments #1, #2, and #3 and the proposed projects
described herein conform to the Comprehensive Plan for the municipality as a whole.
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7. The "General Land-Use Plan" section, pages 9 to 11, is hereby deleted and replaced by
the following section.
Exhibit 3, "Land-Use Plan", is hereby amended and attached hereto.
General Land-Use Plan
The Redevelopment Plan and Amendments #1, #2, #3 and the proposed projects
described herein conform to the Comprehensive Plan for the mUnicipality as a whole.
The amended Generalized Land-Use Plan, Exhibit 3, attached hereto and made a part
hereof, identifies land-uses and public rights-of-way to be in effect upon adoption of this
Plan. The major land-use categories included within the Redevelopment Project Area are
office/governmental, central commercial, mixed-use, low-density residential, and
moderate-density residential.
All major thoroughfares and street right-of-way are shown on the Generalized Land-Use
Plan map. Their locations are subject to minor modification.
The following land-use provisions are established for the Redevelopment Project Area as
designated in Exhibit 3, amended Generalized Land Uses Map.
Office/Governmental
The office/governmental area is intended to provide for high-quality office and related
development within the heart of the downtown. Permitted uses include business and
professional offices, governmental offices, financial institutions, parking and business
services. Under certain conditions, multifamily residential may be permitted with other
compatible and special uses as approved by the Village.
Central Commercial
The central commercial area is intended to accommodate small scale commercial and
office development such as retail and specialty shops, and business, professional, and
civic uses characteristic of a traditional downtown area. In contrast to the Office/
Governmental and the Mixed-Use development areas located in the center of the
Redevelopment Project Area, these areas should be characterized by lower intensity
development which is compatible with nearby residential areas. Other compatible and
special uses as approved by the Village may also be permitted.
Mixed-Use
This land-use is intended to allow for a high-quality mixed use developments in the
downtown. Mixed use refers to the combining of retail/commercial, and/or service uses,
and/or residential uses in the same building or on the same site.
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Low -Density Residential
The low-density residential area is intended to serve as a high-quality residential area
adjoining the downtown. Permitted uses include single-family attached or detached
houses, townhouses or similar housing types, provided they are compatible with existing
nearby resident development. Other compatible and special uses as approved by the
Village may also be permitted.
Moderate-Density Residential
The moderate density residential area is intended to serve as an attractive residential area
with limited concentrations of medium to higher density apartment and multi-family
developments. This area is appropriate because a high level of transit service is present
and employment and commercial centers are located nearby. Although intended
primarily for residential uses, other compatible and special uses approved by the Village
may also be permitted.
OTHER AREA-SPECIFIC OBJECTIVES
In addition to the objectives in the Plan, which apply to the overall Project Area, several
other design and development objects which apply to specific land-use areas are listed
below:
Office/Governmental
A. Vehicular access to the area along Northwest Highway could be provided from
Northwest Highway and from Emerson Street; however, this area includes both
office and residential development, separate access systems should be provided
for the two land uses.
B. High-quality design and construction is important because of this high-visibility
location along Northwest Highway, near Main Street.
C. The Northwest Highway edge should be attractively and generously landscaped.
Mixed-Use Retail and Residential Area
A. Below grade parking for residential units should be provided to the extent
feasible, surface parking lots shall be consolidated between buildings.
B. Setbacks and landscaping along Central Road and Northwest Highway shall be
areas of design emphasis because of high-visibility locations.
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8. The "Estimated Redevelopment Project Costs" section, pages 11 to 12 is deleted and
replaced by the following section.
Estimated Redevelopment Proiect Costs
Redevelopment project costs mean and include the sum total of all reasonable or
necessary costs incurred or estimated to be incurred, as provided in the TIF statute, and
any such costs incidental to this Redevelopment Plan and Project. Private investments,
which supplement "Redevelopment Project Costs", are expected to substantially exceed
such redevelopment project costs. Eligible costs permitted under the Act which may be
pertinent to this Redevelopment Plan and Project include:
1. Costs of studies and survey, development of plans and specification,
implementation and administration of the redevelopment plan including, but not
limited to, staff and professional service costs for architectural, engineering, legal,
marketing, financial, planning, other special services, provided, however, that no
charges for professional services may be based on a percentage of the tax
increment collected; no contracts for professional services, excluding architectural
and engineering services, may be entered into if the terms of the contract extend
beyond a period of three (3) years. In addition, "redevelopment project costs"
shall not include lobbying expenses;
1.1 Annual administrative costs shall not include general overhead or
administrative costs of the municipality that would still have been incurred
by the municipality if the area or approved a redevelopment plan;
1.2 The cost of marketing sites within the redevelopment project area to
prospective businesses, developers, and investors;
2. Property assembly costs, including, but not limited to, acquisition of land and
other property, real or persona, or rights or interest therein, demolition of
buildings, site preparation, site improvements that serve as an engineered barrier
addressing ground level or below ground environmental contamination, including,
but not limited to, parking lots and other concrete or asphalt barriers, and the
clearing and grading of land;
3. Costs of rehabilitation, reconstruction or repair or remodeling of existing public or
private buildings, fixtures and leasehold improvements; and the costs of replacing
an existing public building if pursuant to the implementation of a redevelopment
project the existing public building is to be demolished to use the site for private
investment or devoted to a different use requiring private investment;
4. Costs of the construction of public works or improvements, and redevelopment
project costs shall not include the cost of constructing a new municipal public
building principally used to provide offices, storage space, or conference facilities
or vehicle storage, maintenance, or repair for administrative, public safety, or
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public works personnel and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection (q) of Section 11-74.4-3
unless either (i) the construction of the new municipal building implements a
redevelopment project that was included in a redevelopment plan that was
adopted by the municipality prior to the effective date of this amendatory Act of
the 91 st General Assembly or (ii) the municipality makes a reasonable
determination the redevelopment plan, supported by information that provided
that basis for that determination, that the new municipal building is required to
meet an increase in the need for public safety purposes anticipated to result from
the implementation of the redevelopment plan;
5. Costs of job training and retraining projects including the costs of 'welfare to
work" programs implemented by businesses located within the redevelopment
project area;
6. 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 pursuant to the Act accruing during the estimated period
of construction of any redevelopment project for which such obligations are
. issued and for not exceeding 36 months thereafter and including reasonable
reserves related thereto;
7. To the extent the municipality by written agreement accepts and approves the
same, all or a portion of a taxing district's capital (and additional student tuition)
costs resulting from the redevelopment project necessarily incurred or to be
incurred within a taxing district in furtherance of the objectives of the
redevelopment plan and project;
8, Relocation costs to the extent that the Village determines that relocation costs
shall be paid or is required to make payment of relocation costs by federal or state
law;
9. 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 the
Redevelopment Project Area; and (ii) when incurred by a taxing district or taxing
districts other than the Village, are set forth in a written agreement by or among
the Village and the taxing district or taxing districts, which agreement describes
the program to be undertaken, including but not limited to the number of
employees to be trained, a description 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 agreement.
Such costs include, specifically, the payment by community college districts of
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costs pursuant to Section 3-37, 3-38, 3-40 and 3-40.1 of the Public Community
College Act and by school districts of costs pursuant to Section 10-22.20a and 10-
23.3a of the School Code.
10. Interest costs incurred by a redeveloper related to the construction, renovation or
rehabilitation of a redevelopment project provided that:
a) such costs are to be paid directly from the Special Tax Allocation Fund
established pursuant to the Act;
b) such payments in anyone-year may not exceed 30% of the annual interest
costs incurred by the developer with regard to the redevelopment proj ect
during that year;
c) if there are not sufficient funds available in the Special Tax Allocation
Fund to make the payment pursuant to this paragraph (11) then the
amounts so due shall accrue and be payable when sufficient funds are
available in the Special Tax Allocation Fund; and
d) the total of such interest payments paid pursuant to the Act may not
exceed 30% of the (i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment project costs excluding any
property assembly costs and any relocation costs incurred by a
municipality pursuant to the Act.
11. Unless explicitly stated herein the costs of construction of new privately owned
buildings shall not be an eligible redevelopment project cost.
12. None of the redevelopment project costs enumerated in this subsection shall be
eligible redevelopment projects if those costs would provide direct financial
support to a retail entity initiating operations in the redevelopment project area
while terminating operations at another Illinois location within 10 miles of the
redevelopment proj ect area but outside the boundaries of the redevelopment
project area municipality. For purposes of this paragraph, termination means a
closing of a retail operation that is directly related to the opening of the same
operation or like retail entity owned or operated by more than 50% of the original
ownership in a redevelopment project area, but it does not mean closing an
operation for reasons beyond the control of the retail entity, as documented by the
retail entity, subject to a reasonable finding by the municipality that the current
location contained inadequate space, has become economically obsolete, or was
no longer a viable location for the retailer or serviceman.
13. The Village may, pursuant to the TIP Act, provide school tuition reimbursement
costs.
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Estimated costs are shown in the next section. Adjustments to these cost items may be
made without amendment to the Redevelopment Plan.
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9. The "Redevelopment Project Estimated Redevelopment Project Cost Schedule" page 13,
Table 1 - is deleted and replaced with the amended Table 1 found below.
VILLAGE OF MOUNT PROSPECT
DOWNTOWN - TIF NO.1 REDEVELOPMENT PROJECT
ESTIMATED PROJECT COSTS
Program Actions/Improvements
Estimated Costs (A)
1. Land Acquisition and Assembly Costs and
Relocation Costs
$15,000,000
2. Demolition, Site Preparation, Environmental Cleanup
and Related Costs
3,500,000
3. Utility Improvements including, but not limited to,
water, storm, sanitary sewer, the service of
public facilities, and road improvements
10,500,000
4. Rehabilitation
1,000,000
5. Interest Costs Pursuant to the Act
500,000
6. Planning, Legal, Engineering, Administrative and
Other Professional Service Costs
1,000,000
7. Job Training
250,000
8. Estimated School Tuition Costs
750.000
TOTAL ESTIMATED PROJECT COSTS
$32,500,000
. (A) All project cost estimates are in year 2005 dollars. In addition to the above stated costs,
any bonds issued to finance a phase of the Project may include an amount sufficient to
pay customary and reasonable charges associated with the issuance of such obligations as
well as to provide for capitalized interest and reasonably required reserves. Adjustments
to the estimated line item costs above are expected. Each individual project cost will be
reevaluated in light of the projected private development and resulting tax revenues as it
is considered for public financing under the provisions of the Act. The totals of line
items set forth above are not intended to place a total limit on the described expenditures
as the specific items listed above are not intended to preclude payment of other eligible
redevelopment project costs in connection with the redevelopment of the Proposed RP A,
provided the total amount of payment for Eligible Redevelopment Project Costs shall not
exceed the overall budget amount outlined above. Adjustments may be made in line
items within the total, either increasing or decreasing line item costs for redevelopment.
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10. The section, "Sources of Funds to Pay Redevelopment Project Costs" page 14, the
following paragraph is to be included as a new third paragraph.
Any surplus Special Tax Allocation Funds, to the extent any surplus exists, will be
proportionately shared, based on the appropriate tax rates for a given year, with the
various taxing districts, including the Village, after all TIP eligible costs either expended
or incurred as an obligation by the Village have been duly accounted for through
administration of the Special Tax Allocation Fund established by the Village as provided
by the Act. The exception to this provision will be to the extent that the Village utilizes
TIF funding to assist in the redevelopment of residential units. In such cases, the Village
will provide for the cost incurred by eligible school districts in the manner prescribed by
65 ILCS Section 5/11-74.4.3(q)(7.5) of the Act.
11. The section "Issuance of Obligations" page 14, is amended in order to delete the first
section with the following sentence.
It is anticipated that the Village will obtain an extension to the term of this
Redevelopment Plan and Project. Once the term is extended by the State of Illinois, all
obligations issued by the Village pursuant to the Redevelopment Plan and Project shall be
retired within thirty-five (35) years from the date of the initial adoption of the
Redevelopment Plan and Project.
The actual date for such completion and retirement of obligations shall not be later than
December 31 of the year in which the payment to the municipal treasurer pursuant to the
Act is to be made with respect to ad valorem taxes levied in the thirty-fifth calendar year
in which the ordinance approving the Proposed RPA is adopted. (Note: this would occur
to the extent that the Village is successful in obtaining the extension of the term of this
Redevelopment Plan and Project. In the event that no such extension is obtained, the
completion date would be twenty-three (23) calendar years after the adoption of the
ordinance described above).
12. The section, "Most Recent Equalized Assessed Valuation of Properties in the
Redevelopment Project Area", page 14 is amended to include the following language as a
new paragraph.
The total estimated equalized assessed valuation for the Amendment #3 to the
Redevelopment Project Area is $6,152,577 (2004 EA V).
13, The section "Anticipated Assessed Valuation" page 15, is deleted and replaced by:
Upon completion of the anticipated private development of the Redevelopment Project
Area over a thirty-five (35) year period (subject to State of Illinois approval) it is
estimated that the equalized assessed valuation (EA V) of the property within the
Redevelopment Project Area will be approximately $65,000,000.
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14. The section, "Phasing and Scheduling of Redevelopment Project" pages 18 to 20, is
hereby deleted and replaced with the following section.
PHASING AND SCHEDULING OF REDEVELOPMENT PROJECT
Target Area la of the Redevelopment Project was the first phase of construction within
Block 115. Private development in the area resulted in the construction of fifty-one
townhome units.
Target Area 1 b of the Redevelopment Project will include limited construction of single
family homes within Block 110 as lots become available. It is possible that six units
could be constructed on this block.
Target Area Ie of the Redevelopment Project will include redevelopment activity within
Block 104. This redevelopment will consist of private development of high quality
"rowhomes" with all garages/driveways to be located on the rear (east) side of the
buildings. A small open space is also planned to compliment the open space that was
incorporated into the new Village Hall/parking deck development across the street.
Target Area Id of the Redevelopment Project will include initiation of redevelopment
activity within Block 108. Private development in this area will provide a mixed use
development which could include residential, office, and/or retail/commercial use.
Target Area Ie of the Redevelopment Project included the construction of a parking
garage, new Village Hall with incorporated open space, and the renovation of the Mount
Prospect Library. The garage is used for parking for employees arid customers of nearby
businesses and the Village.
Target Area If of the Redevelopment Project included the construction of the Residences
at Village Centre, a 205 unit condominium. Further redevelopment activities within
Block 102 could include residential~ office, and/or retail/commercial use.
Target Area 1 g of the amended Redevelopment Project included the construction of the
Shires of Clocktower, a 139 unit condominium. Further redevelopment activities within
Block 101 included specialty retail and service shops that provided convenience items for
residents in the area.
Target Area Ih of the Redevelopment Project will include activity in Blocks 100 and 204.
Private development in this area will provide mixed use development which could
include residential, office, and/or retail/commercial use.
Target Area Ii of the amended Redevelopment Project will include redevelopment
activity within Block 109. Private development in this area will provide mixed use
development which could include residential, office, and/or retail/commercial use.
10
Target Area Ij of the amended Redevelopment Project will include redevelopment
activity within Block 331. Private development in this area will provide mixed use
development which could include residential, office, and/or retail/commercial use.
15. A new section "Assessment of Fiscal Impact on Affected Taxing Districts" is included at
the end of page 20, and is found below:
Assessment of Fiscal Impact on Affected Taxing Districts
It is anticipated that the implementation of this Redevelopment Plan and Project will have
a minimal financial impact on most of the affected taxing districts. In fact, the action
taken by the Village to stabilize and encourage growth of its tax base through the
implementation of this Redevelopment Plan and Project will have a positive impact on
the affected taxing districts by arresting inflation adjusted declines in assessed valuations.
Given that there is the potential for new development, the Village may permit new
residential development to occur within the RP A. As such, there could be an increased
burden placed on the area's school districts. To the extent that such development does
occur, and school age children result from new community arrivals, the elementary and
high school taxing districts could potentially be affected. The Village has made
allowances in this plan and project for revenue distributions to such taxing districts and
will follow the guidelines provided by the Act to compensate the district at levels dictated
by the precise increase in students. Additionally, should the Village achieve success in
attracting private investment which does result in the demonstrated need for increased
services from any other taxing district, the Village would consider declaring sufficient
TIP related surpluses, which funds are neither expended or obligated for redevelopment
activities, as provided by the Act, to assist such taxing districts in paying the costs for any
increased services.
Though strategies will be encouraged to promote growth via private investment within
the area, specific objectives are geared to stabilize the RP A's existing strengths and
revitalize the RP A's redevelopment potential. Should the Village achieve success in
attracting private investment which does result in the need for documented increased
services from any taxing districts, the Village will consider the declaration of sufficient
surplus funds (as long as those funds are not already obligated to the TIP), to assist
affected taxing districts in paying the costs for the increased services.
16. Exhibit 4 is amended and attached hereto.
17. A new Exhibit 8, Legal Description - Amendment #3, is attached hereto.
18. The TIP eligibility report for parcels included in Amendment #3 is attached hereto as a
new Exhibit 9.
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T I I I I TIT Tl
H
Exhibit 8 - as amended
LEGAL DESCRIPTION
The legal description of the Redevelopment Area as hereby amended is as tollows:
Beginning at the intersection of the east right-ot-way line of Main Street, State of Illinois
Route 83, with the north righ~of-way line of Central Road; flence easterly along said
north right-of-way line to a point of intersection with the extension of the west property
line of Lots 1 through 11 of Block 5 in Busse and Wille's Resubdivision in Mount
Prospect; thence southerly along the extension of the west property line of Lots 1
through 11 of Block 5 in Busse and Wille's Resubdivislon in Mount Prospect to the north
right-of-way. line of Busse Avenue; thence easterly along the north rightof-way line of
Busse Avenue to a point of intersection with the extenSon of the east property line of
Lots 1 through 8 of Block 11 of Busse and Wille's Resubdivision in Mount Prospect;
thence southerly along the extension of the east property line of Lots 1 through 8 of
Block 11 of Busse and Wille's Resubdivision in Mount A"ospect to the southeast corner
of Lot 8 of Block 1'1 of Busse and Wille's Resubdivision in Mount Prospect; thence
easterly along the south property line of Lot 17 of Block 11 of Busse and Wille's
Resubdivision in Mount Prospect extended to a point of intesection with the east righ~
of-way line of Elm Street; thence southerly along the east rightof-way line of Elm Street
to the north righ~of-way line of Evergreen Avenue; thence easterly along the north right
of-way line of Evergreen Avenue to a point of iltersection with the extension of the west
property line of Lots 1 through 21 of Block 20 of Mount Prospect Subdivision in Section
12-41-11, recorded September 2, 1874; thence southerly along the extension of the
west property line of Lots 1 through 21 of Block 20 of Mount Prospect Subdivision in
Section 12-41-11, recorded September 2, 1874 to the northwest corner of Lot 1 of
Bruce's Resubdivision in Mount Prospect; thence easterly along the north property line
of Lot 1 of Bruce's Resubdivision in Mount PrCBpect extended to a point of intersection
with the east right-of-way line of Owen Street; thence southerly along the east rightof-
way line of Owen Street extended to a point of intersection with the southerly righrof-
way line of Northwest Highway, US Rolle 14, thence northwesterly along the southerly
right-of-way line of Northwest Highway, US Route 14 to a point of intersection with the
north right-ot-way line of Central Road; thence easterly along the north rightof-way line
of Central Road to the southvast corner of Lot 1 of Trapani's Resubdivision in Mount
Prospect; thence northerly along the west property line of Trapani's Resubdivision in
Mount Prospect to the northwest corner of Lot 1 of Trapani's Resubdivision in Mount
Prospect; thence easterly alorg the north property line of Lot 1 of Trapani's
Resubdivision in Mount Prospect extended to a point of intersection with the east right
of-way line of Main Street, State of Illinois Route 83; thence southerly along the east
right-of-way line of Main Street State ot Illinois Route 83 to the point of beginning at the
point of intersection of the east right-of-way line of Main Street, State of Illinois Route
83, with the north righ~of-way line of Central Road; all located in part of the Northeast
Quarter and the Northwest Quarter of Section 12, and the Northeast Quarter of Section
11 all in Township 4.1 North, Range 11 East of the Third Principal Meridian, and in part
of the Southwest Quarter and the Southeast Quarter of Section 34, Township 42 North,
Range 11 East of the Third Principal Meridian all in Cook County, Illinois.
DRAFT Dated 10/18/05
Exhibit 9
VILLAGE OF MOUNT PROSPECT
TIF QUALIFICA TION/DESIGNA TION REPORT
AMENDMENT #3 TO DOWNTOWN TIF NO.1
A study to determine whether all or a portion of an area located in the Village of Mount
Prospect qualifies as a conservation area as set forth in the definition in the Tax Increment
Allocation redevelopment Act of 65 ILCS Section 5/11-74.4-3, et seq. of the Illinois
Compiled Statutes, as amended.
Prepared For: Village of Mount Prospect, Illinois
Prepared By: Kane, McKenna and Associates, Inc.
OCTOBER, 2005
VILLAGE OF MOUNT PROSPECT
TIF QUALIFICATION REPORT
AMENDMENT #3 TO DOWNTOWN TIF NO.1
TABLE OF CONTENTS
PAGE
SECTION
TITLE
I. Introduction and Background 1
II. Qualification Criteria Used 3
III. The Study Area 6
IV. Methodology of Evaluation 7
V. Qualification of Proposed RP A
Findings of Eligibility 8
VI. Summary of Findings and Overall
Assessment of Qualification 10
MAP
Proposed Third Amendment to the Downtown TIP
EXHIBIT 1
Parcel Descriptions
I. INTRODUCTION AND BACKGROUND
In the context of considering the amendment ("Amendment #3") of the Downtown
Redevelopment Project Area ("TIP No.1"), the Village of Mount Prospect (the "Village") has
authorized the study of the amended areas to determine whether it qualifies for consideration as
an amendment to the existing Tax Increment Financing (the "TIP") District. Kane, McKenna
and Associates, Inc. ("KMA"), has agreed to undertake the study of the amended area. The
properties (the "Proposed Amendments") are located adjacent to the Downtown TIP No.1 and
would be included as part of the Amendment #3 to TIP No.1.
The Proposed Amendments include two parcels "as described above, a commercial retail
center on Main Street and a six story office building (the Bank One building) on Busse Avenue.
The Village has undertaken ongoing review ofthe properties located within the
Downtown TIP No.1, as well as the Proposed Amendments for several years. In conjunction
with past and current redevelopment activities, the Village has also undertaken efforts to allow
for the extension ofthe existing TIP term by an additional twelve (12) years, in order to continue
the viable redevelopment of the downtown area on a comprehensive basis. The 12-year
extension request is currently under review by the Illinois State legislature, and is expected to be
considered in late 2005 or the first part of 2006.
The Proposed Amendments will serve to continue redevelopment activities and to include
several key properties as part of the Downtown TIF No.1.
Due in part to their age, the structures and site improvements within the Proposed Amendments
were found to have varying degrees of deterioration due to the age of the structures. Ongoing
vacancies and functional obsolescence have also contributed to underutilization.
The Proposed Amendments also suffers from a lack of community planning. That is, the
area did not have the benefit of developing under the modem construction and land use
guidelines under either a comprehensive plan or an economic development plan. The limited
parking within the area, the minimal buffering between buildings and the limited
loading/unloading provisions are indications of this factor. The majority of the Downtown TIP
No. 1 buildings are over thirty-five (35) years in age including the Proposed Amendments. In
conjunction with the qualification factors discussed above, and within other sections of this
report, these qualify the area as a "conservation" area, as that term is hereinafter defined pursuant
to Illinois State statute as amended.
Tax Incremental Financing Qualification/ Designation Report - Third Amendment to Downtown TIF No, 1
Mount Prospect, Illinois
Page 1
OBJECTIVES
The Village's redevelopment objectives propose to enhance commercial, retail and mixed
use residential opportunities. To achieve this objective the Village proposes the following
guidelines:
. To redevelop the area in relation to transportation facilities (including
coordination with the existing Metra station) and infrastructure network for
improved accessibility use to the wider market area.
· To attract market driven residential and retail/commercial redevelopment.
· To assemble properties in a traditional manner in order to assist area
redevelopment objectives.
· To assist site preparation in order to provide for the reuse of properties.
· To assist and provide services to businesses and enterprises that seek locations
within the Village.
Given Village goals under its comprehensive planning process and the conditions briefly
summarized above, the Village has made a determination that it is highly desirable to promote
the redevelopment of the Proposed Amendments. The Village intends to create and implement
such a plan in order to increase tax revenues associated with the Proposed Amendments and to
increase the community's tax base.
Given the conditions into which the Proposed Amendments has required coordination for
a variety of uses, the Village is favorably disposed toward supporting redevelopment efforts.
However, the Village is determined that redevelopment takes place through the benefit and
guidance of comprehensive economic planning by the Village. Through this coordinated effort,
the area is expected to improve. Development barriers, inherent with current conditions within
the Village's Downtown area, which impede economic growth under existing market standards,
are expected to be eliminated.
The Village has determined that redevelopment currently planned for the Proposed
Amendments may only be feasible with public finance assistance. The creation and utilization of
a TIP redevelopment plan is intended by the Village to help provide the assistance required to
eliminate conditions detrimental to successful redevelopment of the Village central core area.
The use of TIP relies upon induced private redevelopment in the Proposed Amendments
creating higher real estate value that would otherwise decline or stagnate without such
investment, leading to increased property taxes compared to the previous land-use (or lack of
use). In this way the existing tax base for all tax districts is protected and a portion of future
increased taxes are pledged to attract the needed private investment.
Tax Incremental Financing Qualification/ Designation Report - Third Amendment to Downtown TIP No. 1
Mount ProJjJect, Illinois
Page 2
II. QUALIFICATION CRITERIA USED
With the assistance of Village staff, Kane, McKenna and Associates, Inc. examined the
Proposed RP A in July to August of2005, and reviewed information collected for the area to
determine the presence or absence of appropriate qualifying factors listed in the Illinois "Real
Property Tax Increment Allocation Act" (hereinafter referred to as "the Act") Ch. 65 ILCS
Section 5/11-74.4-1 et. seq. of the Illinois Compiled Statutes, as amended. The relevant sections
of the Act are found below.
The Act sets out specific procedures, which must be adhered to in designating a
redevelopment project area. By definition, a "Redevelopment Project Area" is:
"an area designated by the municipality, which is not less in the aggregate than I ~ acres
and in respect to which the municipality has made a finding that there exist conditions
which cause the area to be classified as a blighted area or a conservation area, or a
combination of both blighted area and conservation area."
CONSERVATION AREA
The Act defines a "conservation area" as follows:
"Conservation area" means any improved area within the boundaries of a redevelopment
project area located within the territorial limits ofthe municipality in which 50% or more
ofthe structures in the area have an age of 35 years or more. Such an area is not yet a
blighted area, but because of a combination of 3 or more of the following factors may be
considered as a "conservation area".
(1) If improved, industrial, commercial and residential buildings or improvements are
detrimental to the public safety, health or welfare because of a combination of
five (5) or more of the following factors, each of which is (i) present, with that
presence documented, to a meaningful extent so that a municipality may
reasonably find that the factor is clearly present within the intent of the Act and
(ii) reasonably distributed throughout the improved part of the redevelopment
project area:
(A) Dilapidation: An advanced state of disrepair or neglect of necessary
repairs to the primary structural components of building or improvements in such
a combination that a documented building condition analysis determines that
major repair is required or the defects are so serious and so extensive that the
buildings must be removed.
(B) Obsolescence: The condition or process of falling into disuse. Structures
become ill-suited for the original use.
Tax Incremental Financing Qualification/ Designation Report - Third Amendment to Downtown TIP No, 1
Mount Prospect, Illinois
Page 3
(C) Deterioration: With respect to buildings, defects including, but not limited
to major defects in the secondary building components such as doors, windows,
porches, gutters and downspouts and fascia. With respect to surface
improvements, that the condition of roadways, alleys, curbs, gutters, sidewalks,
off-street parking and surface storage areas evidence deterioration, including, but
limited to, surface cracking, crumbling, potholes, depressions, loose paving
material and weeds protruding through paved surfaces.
(D) Presence of Structures Below Minimum Code Standards: All structures that
do not meet the standards of zoning, subdivision, building, fire and other
governmental codes applicable to property, but not including housing and
property maintenance codes.
(E) Illegal Use of Individual Structures: The use of structures in violation of
applicable federal, State, or local laws, exclusive of those applicable to the
presence of structures below minimum code standards.
(F) Excessive Vacancies: The presence of buildings that are unoccupied or
under-utilized and that represent an adverse influence on the area because of the
frequency, extent or duration of the vacancies.
(G) Lack of Ventilation. Light. or Sanitary Facilities: The absence of adequate
ventilation for light or air circulation in spaces or rooms without windows, or that
require the removal of dust, odor, gas, smoke or other noxious airborne materials.
Inadequate natural light and ventilation means the absence of skylights or
windows for interior spaces or rooms and improper window sizes and amounts by
room area to window area ratios. Inadequate sanitary facilities refer to the
absence or inadequacy of garbage storage and enclosure, bathroom facilities, hot
water and kitchens and structural inadequacies preventing ingress and egress to
and from all rooms and units within a building.
(H) Inadequate Utilities: Underground and overhead utilities such as storm
sewers and storm drainage, sanitary sewers, water lines and gas, telephone and
electrical services that are shown to be inadequate. Inadequate utilities are those
that are: (i) of insufficient capacity to serve the uses in the redevelopment project
area; (ii) deteriorated, antiquated, obsolete or in disrepair; or (iii) lacking within
the redevelopment project area.
Tax Incremental Financing Qualification/ Designation Report - Third Amendment to Downtown TIF No. 1
Mount Prospect, IUinois
Page 4
(I) Excessive Land Coverage and Overcrowding of Structures and Community
Facilities: The over-intensive use of property and the crowding of buildings and .
accessory facilities onto a site. Examples of problem conditions warranting the
designation of an area as one exhibiting excessive land coverage are: (i) the
presence of buildings either improperly situated on parcels or located on parcels
of inadequate size and shape in relation to present-day standards of development
for health and safety and (ii) the presence of multiple buildings on a single parcel.
For there to be a finding of excessive land coverage, these parcels must exhibit
one or more of the following conditions: insufficient provision for light and air
within or around buildings, increased threat of spread of fire due to the close
proximity of buildings, lack of adequate or proper access to a public right-of-way,
lack of reasonably required off-street parking or inadequate provision for loading
servIce.
(J) Deleterious Land-Use or Lavout: The existence of incompatible land-use
relationships, buildings occupied by inappropriate mixed-uses or uses considered
to be noxious, offensive or unsuitable for the surrounding area.
(K) Environmental Clean-Up: The Proposed redevelopment project area has
incurred Illinois Environmental Protection Agency or United States
Environmental Protection Agency remediation costs for, or a study conducted by
an independent consultant recognized as having expertise in environmental
remediation has determined a need for the clean-up of hazardous waste, hazardous
substances or underground storage tanks required by State or federal law,
provided that the remediation costs constitute a material impediment to the
development or redevelopment of the redevelopment proj ect area.
(L) Lack of Communi tv Planning: The Proposed redevelopment project area was
developed prior to or without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption by the municipality of
a comprehensive or other community plan or that the plan was not followed at the
time of the area's development. This factor must be documented by evidence of
adverse or incompatible land-use relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet contemporary
development standards or other evidence demonstrating an absence of effective
community planning.
(M) The total equalized assessed value of the proposed redevelopment project
area has declined for three (3) of the last five (5) calendar years prior to the year
in which the redevelopment project area is designated, or is increasing at an
annual rate that is less than the balance of the municipality for three (3) of the last
five (5) calendar years, for which information is available or increasing at an
annual rate that is less than the Consumer Price Index for All Urban Consumers
published by the United States Department of Labor or successor agency for three
(3) of the last five (5) calendar years prior to the year in which the redevelopment
project area is designated.
Tax Incremental Financing Qualijicationj Designation Report - Third Amendment to Downtown TIF No. 1
Mount Prospect, Illinois
Page 5
III. THE STUDY AREA
The Study Area which is located adjacent to the Village's Downtown TIP No.1 and
includes two parcels located at the northwest portion and the northeast portion of the existing
TIP district.
The northwest parcel includes a single story retail center (Central Plaza) and the northeast
parcel includes a six story office building (Bank One Building).
In evaluating the properties within the area, KMA completed its analysis based on the
"conservation area" criteria cited in 65 ILCS 5/11-74-3(a)(1) (the "Conservation Area
Definition"). The Conservation Area Definition states that at least fifty percent (50%) of the
area's buildings must be thirty-five (35) years of age or older and there must be three (3) or more
qualification factors present. Fifty-eight percent (58%) of the Downtown TIP No.1 buildings
are over thirty-five (35) years in age including the two parcels described above, and the Proposed
Amendments contains five (5) additional qualification factors (a minimum of three (3) is
required).
Tax Incremental Financing Qualification/Designation RBport- ThirdAmendment to Downtown TIF No, 1
Mount Prospect, Illinois
Page 6
IV. METHODOLOGY OF EVALUATION
In evaluating the Proposed Amendments potential qualification as a TIP District, the
following methodology was utilized:
1) Site surveys of the Proposed Amendment were undertaken by representatives from KMA.
site surveys were completed from each tract of land (based upon Sidwell blocks), within
the area.
2) Exterior evaluation of structures, noting such conditions as deterioration, obsolescence
and deleterious layout and land-use was completed. Additionally, 1998 through 2004 tax
information from the Cook County Clerk's Office, Sidwell parcel tax maps, site data,
local history (discussions with Village staff), and an evaluation of area-wide factors that
have affected the area's development (e.g., lack of community planning). KMA
reviewed the area in its entirety. Village redevelopment goals and objectives for the area
were also reviewed with Village officials. A photograph analysis ofthe area was
conducted and was used to aid this evaluation.
3) Existing structures and site conditions were initially surveyed only in the context of
checking, to the best and most reasonable extent available, criteria factors of specific
structures and site conditions on the parcels.
4) The Proposed Amendment was examined to assess the applicability of the different
factors, required for qualification for TIP designation under the Act. Evaluation was
made by reviewing the information and determining how each measured when evaluated
against the relevant factors. The Study Area was examined to determine the applicability
ofthe thirteen (13) different conservation area factors for qualification for TIP
designation under the TIF Act.
Tax Incremental Financing Qualification/ Designation Report - Third Amendment to Downtown TIF No, 1
Mount Prospect, Illinois
Page 7
V. QUALIFICATION O~ PROPOSED RPAlFINDINGS OF ELIGIBILITY
As a result ofKMA's evaluation of each parcel in the Proposed Amendments, and
analysis of each ofthe eligibility factors summarized in Section II, the following factors are
presented to support qualification ofthe Proposed Amendments as a "conservation area".
THRESHOLD FACTORS
1. Age (Downtown TIF No.1 and Proposed Amendments parcels)
Based upon site surveys and County assessor data fifty-eight percent (58%) (or thirty-
nine (39) out of sixty-seven (67) structures) were found to be thirty-five (35) years of age
or greater.
OTHER CONSERVATION AREA FACTORS (MUST INCLUDE THREE OR
MORE ADDITIONAL FACTORS) Note: Conservation factors aoolv onlv to
Prooosed Amendments
2. Lack of Community Planning
According to the Act, an area suffers from a lack of community planning if the area was
developed prior to or within the benefit of a community plan.
The absence of coordinated parking for sites, the lack of buffering between uses, and the
coordinated loading/unloading provisions as well as access and circulation issues
residential housing to commercial and retail sites all reinforce the fact that the area was
developed without benefit of modem, comprehensive community planning.
Also lacking until recent years has been effective and sustained economic development
plans and strategies intended to address the coordinated redevelopment ofthe Proposed
Amendments. This is not to necessarily say that improvements did not take place over
the years, but that they were implemented without the inclusion within the Downtown
TIF No. 1 District. Amendment to the existing TIP will serve to improve overall
coordination redevelopment for these parcels.
Tax IncrementalFinancingQualijication/Designation RBport- Third Amendment to Downtown TIP No.1
Mount Prospect, Illinois
Page 8
3. Obsolescence
Obsolescence is defined as the condition or process of falling into disuse. This can also
be defined as a structure(s) that has become ill-suited for its original use.
Functional obsolescence is present at the retail center due to poor layout and building
orientation as well as its age and physical condition. Front parking is limited and internal
circulation is also limited at the frontage to a north bound direction. The office building
also exhibits characteristics of functional obsolescence due to its age and special purpose
design and characteristics. As a whole, the area suffers from poor design and layout
which is manifested in several iilstances, one of which being a lack of (or positioning of
parking in relation to street traffic). The parking buildings lack adequate loading and
buffering provisions. Because of these factors, the area's overall usefulness and
desirability for redevelopment is significantly limited for modem day redevelopment.
Economic obsolescence is illustrated by the decline in EA V for the Proposed
Amendments in relation to the high point of 2002 (refer to Exhibit 1).
4. Deterioration of Site Improvements and Structures
Deterioration can be evidenced in major or secondary building defects. For example,
such defects include but are not limited to, defects in building components such as
windows, porches, gutters, doors, brick, mortar and stucco. Many of the structures and
site improvements within the Proposed RP A exhibited various degrees of deterioration
which require repairs, upgrades and replacement.
Many ofthe parcels displayed deteriorated conditions. The conditions were characterized
by occurrences that included the following:
· Rotten wood and eaves
· Deterioration of brick and mortar
· Buckled asphalt and concrete
5. Excessive Vacancies
The retail center has exhibited vacancy factors over 60% since 2000, and the office
building has exhibited a 25% to 30% vacancy factor since 2000. Both factors are
excessive for commercial properties.
Tax Incremental Financing Qualification/ Designation Report - Third Amendment to Downtown TIF No, 1
Mount Prospect, Illinois
Page 9
VI. SUMMARY OF FINDINGS AND OVERALL ASSESSMENT OF
QUALIFICATION
The following is a summary of relevant qualification findings as it relates to
potential designation of the Proposed Amendment by the Village as a TIF District:
1. The area is contiguous and is greater than 112 acres in size, including the adjacent
Downtown TIP No. 1 area.
2. The area qualifies as a "conservation area". A more detailed analysis of the
qualification findings is outlined in this report.
3. All property in the area would substantially benefit by the proposed
redevelopment proj ect improvements.
4. The sound growth of taxing districts applicable to the area, including the Village,
has been impaired by the factors found present in the area.
5. The area would not be subject to redevelopment without the investment of public
funds, including property tax increments.
These findings, in the judgment ofKMA, provide the Village with sufficient
justification to consider designation of the Proposed Amendments as a TIP District.
The area has not benefited from coordinated planning efforts by either the public
or private sectors. There is a need to focus redevelopment efforts relating to business
attraction as well as the coordination of redevelopment efforts for modem uses. There
efforts will be important to the area's continued improvement and preservation oftax
base.
Tax Incremental Financing Qualification/ Designation Report - Third Amendment to Downtown TIP No. 1
Mount Prospect, Illinois
Page 10
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