Property owners denounce special taxing district in West Dundee
Several property owners in downtown West Dundee are formally opposing a special taxing district that village officials say would help spur economic growth and fund redevelopment projects.
The village board is expected to vote Monday on creating the taxing area from Lincoln Avenue south along the riverfront to Oregon Street and bordered on the west by Third Street. If approved, the tax rate for property owners in that area could increase by a maximum of $1.60 per $100 in taxable value.
The owners of 14 parcels in that area have signed and submitted a petition to the village denouncing the concept. The opposition was spearheaded by Lisa Dombrowski, owner of Logica 3 Ltd. on Washington Street, who questioned how the village can justify taking tax dollars from the private sector to fund public projects.
"Is it really necessary - or prudent - to substantially increase taxes in exactly the area you are trying to revitalize?" the petition states. "We believe that West Dundee should work harder to find more creative solutions that will attract, rather than deter, new businesses."
The special service area, which is divided into two proposals, is expected to generate roughly $70,000 per year, half of which would go toward bond repayment and future redevelopment projects. The other half, which trustees can decide to opt out of, would be used to participate in the Discover Dundee marketing initiative with East Dundee.
If both proposals are approved, the owner of a downtown property with an assessed value of $100,026 would pay $1,600.42 more in property taxes each year, according to village documents.
Special service areas can't be created if a petition opposing the measure generates signatures from at least 51 percent of property owners in that area. However, the 14 signatures represent only 27 percent of the 51 downtown parcels, not including village-owned properties, Village Manager Joe Cavallaro said.
"There is a significant, large portion of the downtown business and property owners that are supportive of the village's downtown redevelopment efforts and the current direction," he said.
Dombrowski, however, argued the village should not be placing the tax burden solely on downtown property owners.
"This strikes me as so unfair and so tone deaf on the part of the village," Dombrowski said. "How are the improvements you plan on making and the money you plan on spending going to create results?"
Other business owners who signed the petition include Randall Errington of Bikini Bottom, Shelley Murray of Shelley's Bridal Couture, Joe Mueller of Tanis Group Properties and Rich Dase of Ideosity Inc.
Municipal investment is vital for redevelopment, Village President Chris Nelson said, pointing to similar initiatives implemented by other towns with successful downtowns, such as St. Charles and Geneva. Using the additional tax dollars, he said, the village can renovate neglected buildings, improve public spaces, attract more businesses that will offer more jobs and increase property values.
"I think it's a critical time for the downtown area," Nelson said. "I'm hoping this vocal minority understands that what we are attempting to do is fully intended to be in the best interest of everyone in the downtown area."