Could a TIF district help Northfield’s downtown? Officials are going to find out.

Northfield officials have for years talked of enhancing the town’s main business district, and they have a new idea on how to approach it.

Village Board members, real estate consultants and community members discussed the possibility of implementing a tax increment financing district, commonly called a TIF district, during Northfield’s Committee of the Whole meeting on April 28.

The meeting was an initial public review of the plan, and the committee requested consultant SB Friedman to develop more information to present in June. The Village published a dedicated webpage with TIF information, including an FAQ section.

Village officials want to boost growth in the Happ and Central corridors, saying the area has several issues that stagnate community growth, such as deteriorating buildings, aging water mains and declining property values. The redevelopment project area officials are initially proposing for the TIF would run adjacent to Happ Road between Winnetka Road and Pine Street.

To help investigate the idea, the board invited SB Friedman Development Advisors to present information about the logistics of a TIF district, a program that is utilized in several nearby communities, including Skokie (three TIF districts) and Highland Park.

TIF, according to SB Friedman Project Manager Tony Canepa, is a flexible economic development tool used to enable redevelopment in areas that are underperforming.

When a TIF district is put in place, the property taxes collected from that district area are frozen. More properties are developed, and property values tend to increase. The extra tax dollars generated from those increased property values are the “increment” that gets kept within the district, funding improvements to roads, buildings and more.

Areas must meet certain criteria to qualify for tax increment financing. SB Friedman reviewed village documents and recent private investment data and concluded that — based on signs of aging infrastructure (87% of area’s buildings are more than 35 years old) and slow economic growth — the redevelopment area Northfield is proposing is eligible for a TIF district.

Canepa said that a TIF district would neither increase property taxes for existing properties nor divert money away from public school districts.

During the public comment portion of the meeting, multiple residents asked about the impact of a TIF district on public schools, such as Sunset Ridge District 28 and New Trier High School.

Northfield resident and D29 School Board Member Jennifer Damon said she believes that the frozen property value will keep schools from getting the funding that matches their needs.

“I know that we are looking at adding more population to our town, which means more kids in our schools,” Damon said. “The last thing we need to be doing right now is reducing the funding to our public schools.”

New Trier High School officials during a School Board meeting on May 18 also expressed opposition to a Northfield TIF district, saying it could limit future funding and could push hire tax rates onto other district communities.

Caitlin Johnson, senior vice president of SB Friedman, said at the Northfield meeting that a portion of the TIF funds would be reallocated to the local schools if more students move into newly developed homes.

Residents had other concerns as well. Northfield resident Kim Orth worried about small businesses that may be impacted by any redevelopment.

“I’m more worried about the existing businesses here that are in the strip malls and they worry that someone’s going to come in and redevelop them,” Orth said. “And if (the developers) have some assistance, then what’s to stop them from being more aggressive coming at them? So, if I was a small business owner, should that be a concern of mine?”

Village President Tracey Mendrek said that the plan is meant to meet community needs, rather than change out businesses.

“This is not about taking over small businesses in Northfield,” Mendrek said. “It’s about enhancing what makes Northfield great, adding to it, and understanding that there are so many people in this community that want a gathering place. They want more walkability. They want safety.”

Trustee Tom Whittaker empathized with those community concerns but encouraged residents to wait for more information.

“I feel the angst in just the word TIF, and I’ve heard it forever, and I share your concerns,” Whittaker said. “But I also think we can learn more and learn how it can be altered to work for us as a village, and how we cannot have a negative impact on the school districts, how it’s not going to have a negative impact on public services and then how do we move forward.”

The development plan would go through Northfield’s public review process, including at least two public hearings before reaching the Village Board. Officials estimate that could happen by September.

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