Northfield, school districts working on TIF deal; 2nd public hearing set

A series of meetings between Northfield officials and representatives from local school districts have the two sides working toward an intergovernmental agreement that could mitigate some of the districts’ concerns regarding tax increment financing in Northfield.

Village Manager Patrick Brennan prefaced his remarks on Tuesday, Sept. 22, by noting the school districts asked that the terms of the potential IGA not be negotiated in public. He did, however, attempt to summarize some of the points the sides have been discussing.

One of the key concerns is the school districts hope to achieve the full, per-student expense reimbursements, he said.

If TIF funds are used to help create a development within a TIF district, law requires that the administer of the TIF — the village in this case — use the increment from that development to help pay school districts for any new students resulting from that development.

But the district’s full cost per student often are not 100% aligned with what the law requires, leaving a gap for schools district. One measure to address that potential gap is what Brennan described as declaring a surplus.

A surplus would occur when TIF provides funds that are not programmed or planned. That surplus cannot be directed to just one school or park district but instead is distributed to everyone based on their percentage contribution, Brennan explained.

A village can also decide to fill the gap for the schools through other sources, such as funds from its general or capital accounts.

The school districts have also shared hesitations about the ability to not capture new growth, if it occurs, for a number of years. A concept school representatives and the village discussed was a guaranteed surplus declaration each year. But Brennan noted the two sides are still working through specifics.

Lastly, the school districts brought forward concerns about if a new Northfield development resulted in a large amount of new students and thus required a capital need. The sides discussed if the village in such an occurrence could potentially devote resources toward funding that expense.

The sides are hoping to have a draft of the IGA for review before the Thanksgiving holiday, Brennan said.

Second public hearing on TIF set for Nov. 9

Northfield trustees voted on Tuesday to set a date for a second public hearing regarding the village’s TIF proposal.

The hearing is set for 6 p.m. on Monday, Nov. 9, at the North Shore Senior Center, 161 Northfield Center

As reported by The Record in September, community feedback combined with a communication error led the village to postpone a decision on tax increment financing until at least December and pursue another public hearing.

Mendrek previously told The Record that the Village “made a mistake” by not properly notifying the necessary people about a public hearing held on Aug. 25. The state of Illinois has specific notification requirements for such meetings, and Mendrek said some businesses that should have received certified mailings announcing the hearing did not.

According to a village memo included in the Sept. 22 meeting materials, two of the driving factors for the second hearing were concerns from residents regarding the pace of the evaluation process as well as the required notifications misstep.

The second hearing will take place at the North Shore Senior Center reportedly to accommodate larger crowds expected to attend the meeting.

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