Lake Villa pushes incentives to bring businesses to town
Any day, about 180 businesses and property owners will receive sleek color brochures outlining available incentives as Lake Villa officials take the offensive to try to improve the village's tax base.
Mailed on Thursday, the hot-off-the-press information invites businesses to accelerate their potential by using "accessible economic tools" offered by the village of about 9,000 residents.
Using anticipated proceeds from a tax increment financing district designated in June, and an overlapping business district established last month, the village wants to help businesses pay for renovations and landscaping, interest fees on loans, site development and other eligible projects.
"This really gives us some legitimate tools to market with," Mayor Frank Loffredo said. "We've always had the statistical qualifications businesses are looking for but we were competing with communities with deeper pockets."
The two districts encompass the downtown area and commercial and industrial areas generally centered at Grand Avenue and Route 83 and will last for 23 years.
Tax increment financing freezes property values and the amount received by government taxing districts, including schools. Taxes are paid on increased property values that result from development, but that extra amount (the increment) is set aside for eligible expenses for improvements in the area.
The business district, which becomes effective Jan. 1, adds 1 percent in sales tax on goods except food and prescription drugs. That source is expected to raise about $150,000 a year.
Another incentive involves village matching grants of $2,000 to $50,000 for job creation and retention tied to building facade improvements.
"We don't have any official takers (but) we've had a lot of informal discussion," Village Administrator Karl Warwick said of the menu of possibilities.
The village has established a plan of action that involves three marketing phases: The first, which includes the brochure, explains to existing businesses how the incentives work. This is being pursued by village officials, staff members and others and includes follow-up calls and a website. The second is marketing small "infill" sites for uses such as fast-food restaurants; the third would focus on large vacant or undeveloped properties. The village plans to hire consultants with specialized expertise in retail or housing, for example, to pursue those steps.
Warwick did some reconnaissance in that regard Wednesday at a "deal-making event" in Chicago hosted by the International Council of Shopping Centers.
"We have a couple of proposals and are looking to get several more," he said.