Using Historical Information to Support Palatines Downtown TIF District

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Using Historical Information to Support
Palatines Downtown TIF District

• ITIA Presentation
• September 15, 2004

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Supporting the Downtown TIF

• Establishing the True Existing Conditions
• Identifying Key Areas of Concern
• Setting Measurable Goals
• Continual Reporting of Information
• Providing Understandable Results
• Identifying the Changing Areas of Concern
• Reminding Public of Existing Conditions
• Update, Update, Update

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Establishing the True Existing Conditions

• Photos of the District
• Publicize the Eligibility Study Findings
• Determine Market Conditions
• Obtain Public Input

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Publicize Eligibility Study

• Explain Qualifying Criteria
• Identify All Factors Present

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Determine Market Conditions

• Housing Market Study
• Sales Prices
• Sales Velocities
• Competition Areas
• Retail Office Market Study
• Vacancy Rates
• Rental Rates
• Condition of Existing Space

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Obtain Public Input

• Walking Tour
• Community Workshops
• Open Planning Process
• Discussion About TIF Eligibility
• Look For Alignment of Public Comments and
  Findings of Eligibility Findings

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Identifying Key Areas of Concern

• General Public Areas of Concern
• Condition of Downtown Buildings
• Lack of Businesses and Residents
• Lack of Investment
• Forgotten Area
• Tax Breaks for the Area
• Using Tax Dollars in Selected Area

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Identifying Key Areas of Concern

• Village Council, Taxing Districts, Staff Concerns
• School Aged Children
• Tax Base
• Debt Coverage
• TIF Account Balance
• Market Conditions

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Setting Measurable Goals

• Goals Addressing Public Concerns
• Number of New Buildings Per Year
• Number of Rehabbed Buildings Per Year
• Extent of Public Improvements Each Year

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Setting Measurable Goals

• Goals Addressing Council, Taxing Bodies and Staff
  Concerns
• Annual Increase in EAV Debt Payment Schedule
• Specific Mix of Uses
• Residential Absorption Rates Sales Prices
• Commercial Space Rental Rates
• Maximum Number of School Aged Children

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Implementation Strategy

• Centralize Commuter Parking to Create Development
  Sites
• Build Roof Tops and Daytime population first
• Perimeter of Downtown as Residential Base
• Focus on Internal Blocks for Commercial Base
• Commercial Base would be office restaurants in
  Phase 1, Retail in Phase 2
• Move to Next Surface Lot. Use Sale Proceeds to
  Acquire More Land
• Use Increment to Pay for Parking Deck, Public
  Improvements

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Continual Reporting of Information

• The Community Group Speaking Tour
• Monthly Village Newsletter Reports
• Quarterly Reports to the Village Council
• Annual Reports During Public Meetings

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Providing Understandable Results

• Before After Pictures
• TIF Account vs. General Fund

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Changing Areas of Concern

• Shift of Public Concerns
• Too much construction
• Too much traffic
• Preserving Historical Downtown
• Building Heights
• Retail Issues Keep the Mom Pops
• Property Values too high
• The Good Old Days

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Changing Areas of Concern

• Shift of Council Taxing Body Concerns
• Too much focus on downtown area
• Capturing EAV increases taxing bodies share
• School aged children
• No need for further assistance

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Update, Update, Update

• 5 Year Downtown Land Use Guide Update
• Walking Tours
• Revised EAV Projections
• Debt Service Restructuring
• School Aged Children Tracking

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Summary of Downtown TIF

• Approved Projects
• 668 Condominiums
• 150 Rowhomes
• 175,000 s.f. of commercial space
• 1244 structured parking spaces

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Summary of Downtown TIF

• All projects funded by TIF or other outside
  sources.
• Not paid by the Village general fund
• No impact to tax payers

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Summary of Downtown TIF

• 34 million of TIF funds invested
• 200 million of private funds invested
• 5 million of non-Village public funds invested
• TIF leverage ratio of 6 to 1

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Summary of Downtown TIF

• Prior to TIF, the downtown area property values
  were decreasing, tax base was declining. 3
  annual decrease
• Revitalization has increased tax base by 35

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Summary of Downtown TIF

• 135,000 to 140,000 in Village sales tax
  revenues each year from new residents
• 250,000 to 300,000 in Village sales tax
  revenues each year from retail developments

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Train Station
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Miramonte Pointe
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Plum Court
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Groves of Palatine
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Gateway Center
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Slade Street Railwalk
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Palatine Station
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Washington Square
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Wellington Court
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Brownstones of Palatine I II
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Emmetts Brew Pub Office Building
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Mexico Uno
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Lamplighters
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Durty Nellies
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Block 31
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Colfax, Smith Wood Street Improvements
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Using Historical Information to Support
Palatines Downtown TIF District

• ITIA Presentation
• September 15, 2004