Hartland TIF District 4 likely to lose money at closing
Public financing discussed for Riverwalk Apartments development

By Katherine Michalets - Freeman Staff

May 19, 2015

HARTLAND - Without the creation of a public financing district, it’s unlikely that vacant lots and an older strip mall would be redeveloped, advised Ehlers Senior Financial Advisor James Mann.

Mann gave a presentation on an existing tax incremental financing district and a proposed one - both in the downtown area - during a joint Plan Commission and Village Board meeting Monday evening that followed a regular Joint Architectural Board and Plan Commission meeting. While no action was taken during the meeting, possibilities were presented to the officials with the intent of holding a public hearing on the matter June 4.

The plan for Riverwalk Apartments on Capitol Drive includes three buildings, two of which would be all residential and a third containing commercial space on the first floor and residential on the second floor.

After discussing the plans with developer Joe McCormick last week, Village Administrator David Cox said, McCormick and the village staff reached a tentative agreement involving tax incremental financing of $1.75 million, which would cover costs such as building acquisition, building demolition, a $356,100 development incentive and other initial expenses.

One-third of the total, $528,000, would be paid up front by the village with the remaining $1.222 million dispersed over time, Cox said.

Mann said once the Riverwalk project is completed, its assessed value would be between $8 million and $10 million. If the value comes in closer to the $8 million mark, Mann said the TIF district would close by 2033. If it comes in more toward the $10 million mark then it could close as early as 2029, he said.

“It certainly would be a good addition to your downtown,” Mann said to the joint committees.

Part of any upcoming discussion regarding TIF districts will be the possible closure of TIF No. 4 in the downtown area, which has been in the red for a while. The village is suggesting adjusting the boundaries of TIF No. 4, created in 2008 and already shrunken once, to help it to be in the positive.

Most of the money that would be collected from the district going forward would then be applied to advances given for development, Mann said; however, the village would come up about $150,000 short because of the expenses attributed to TIF No. 4.

Trustee Richard Landwehr asked where the $150,000 came from originally.

Cox said it was from a fund solely used for encouraging future development.

“You are basically making a decision to almost close TIF No. 4 recognizing that you are not going to recoup all of the dollars that you are going to put into it,” Mann said.

 

In other Joint Architectural Board/Plan Commission meeting news:

HARTLAND - No one from the public spoke during a hearing on a proposed 32-bed Memory Care CBRF at 430, 438 and 444 Merton Ave. Several items regarding the project were approved, including site and building plans, land use plan amendment, zoning and conditional use permit.

A 25,000-square-foot expansion for the existing 126,000-square-foot Dorner Manufacturing, 975 Cottonwood Ave., was approved. The space will be used for expanded manufacturing operations.

Email: kmichalets@conleynet.com