New Trier states case against Northfield TIF proposal

With the Village of Northfield exploring the adopting a Tax Increment Financing district to help with economic development, New Trier High School officials have come out against the idea, saying it would negatively impact the district.

The School Board learned about the possible side effects of a Northfield TIF district on Monday, May 18, courtesy of a presentation from Deputy Superintendent Dr. Chris Johnson.

Johnson said that Northfield, where the district’s freshman campus is located, and New Trier have partnered on a “variety of issues” for decades, but this topic would be a “rare example where New Trier and the Village may see this issue differently.”

As park of the Northfield Village Board packet for its April 28 Committee of the Whole meeting, Village Manager Patrick Brennan wrote that the Village has been looking for ways to enhance the Happ Road and Central Avenue corridors in the downtown area, and one tool noted in the Village’s Comprehensive Plan is a TIF district.

Brennan said TIF funds can be earmarked for facade improvements, to repair properties and invest in Village infrastructure.

According to Brennan’s memo, the Village is in Phase 1, which is a TIF eligibility study.

Johnson told School Board members that New Trier administrators have several concerns about a potential TIF district.

He said if a TIF district is approved, it could freeze property taxes. In the past, he said new developments have benefited the district by generating revenue beyond the CPI, and a TIF reportedly would mean that the equalized assessed value generated would not flow to the school district, but rather the municipality.

Johnson also said that communities reimburse school districts for certain enrollment costs. While those reimbursements can be negotiated under TIF, he said, the sum likely would not be as much as the school receives now.

Another concern, according to Johnson, is in response to the Northfield freeze, “the district’s tax rate would increase slightly across the remainder of the district.”

In answering board questions, Johnson said TIF districts typically last about 23 years, with an option of extending them. He added that the decision to approve a TIF district belongs to the Village Board.

Board member Sally Tomlinson, who was named board president following Johnson’s presentation, read a prepared statement where she shared her concerns about the adoption of a TIF district.

“I feel obligated to question the fairness of such TIFs for taxpayers outside the issuing village,” she said. “With the freezing of property taxes within the TIF zone, all other District 203 (New Trier) residents should expect their tax rates to go up.”

She said that while Northfield residents will benefit from new property taxes under TIF, she said it will put New Trier at a disadvantage.

Tomlinson said that a similar conversation ensued in 2017-’18, when Winnetka considered a TIF district for its downtown area, but the Village Council ultimately decided to look for other economic development opportunities after “a similar series of hearings and meetings.”

“I understand the importance of economic development across all of our feeder communities and municipalities,” she said. “But I personally encourage Northfield, like Winnetka, to explore other means of generating financing for such development in a way that does not impair one of our township’s greatest assets, New Trier High School.”

The Record is a nonprofit, nonpartisan community newsroom that relies on reader support to fuel its independent local journalism.

Become a member of The Record to fund responsible news coverage for your community.

Already a member? You can make a tax-deductible donation at any time.