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City of Naperville Proposed Water Street Tax Increment Financing (TIF) District Public Hearing November 20, 2007

City of Naperville Proposed Water Street Tax Increment Financing (TIF) District Public Hearing November 20, 2007. Proposed Water Street Tax Increment Financing District. TIF Overview Water Street TIF Eligibility Criteria Redevelopment Objectives and the TIF Plan

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City of Naperville Proposed Water Street Tax Increment Financing (TIF) District Public Hearing November 20, 2007

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  1. City of NapervilleProposed Water Street Tax Increment Financing (TIF) DistrictPublic HearingNovember 20, 2007

  2. Proposed Water Street Tax Increment Financing District • TIF Overview • Water Street TIF Eligibility Criteria • Redevelopment Objectives and the TIF Plan • Joint Review Board Consideration • Next Steps

  3. What is TIF? • TIF is a municipal financial incentive tool created by the Illinois State Legislature in 1978 to assist communities implement sound economic development. • TIF can be used: • to provide infrastructure (i.e. water and sewer improvements, road improvements, parking facilities, etc.) • for demolition, site clearance or environmental remediation • to rehabilitate structures • to pay for consultant, engineering, attorney and other applicable soft costs

  4. City of Naperville Proposed Water Street TIF District • DuPage River – north • Main Street – east • Aurora Avenue – south • Webster Street – west

  5. Water Street Area • Downtown Plan envisioned area as a south anchor of downtown • Water Street Vision Statement • Approved November 2006 • Guidelines for redevelopment • Mandated significant public improvements, including Riverwalk and parking deck

  6. Water Street TIF DistrictProcess

  7. City of Naperville Proposed Water Street TIF District • The proposed Water Street TIF District is found to qualify under a “conservation area”, based upon a threshold finding that 50% or more of the buildings are 35 years old or greater. • 8 of 11 structures (72%) are 35 years of age or older • Such an area is not yet a blighted area but because of a combination of 3 or more factors it is detrimental to the public safety, health, morals or welfare and such an area may become a blighted area.

  8. 1) Lack of Community Planning 2) Inadequate Utilities 3) Obsolescence 4) Deterioration The minimum three factors as required by the TIF Act are present plus one additional factor. Proposed Water Street TIF Conservation Factors

  9. Lack of Community Planning • Conversion of residential structures and commercial uses which has led to inadequate parking availability and inadequate provisions for loading and servicing for more contemporary uses in the RPA • Area’s utilities were not designed to support significant contemporary commercial development within the RPA • Many of the retail and commercial uses within the RPA are located in parcels that are inadequate in size and shape and are not substantial enough to sustain modern sized developments • Until recently, lack of coordinated and effective economic development plans for the Water Street Area

  10. Inadequate Utilities • Insufficient capacity, deteriorated, antiquated, obsolete or in disrepair • Review of existing infrastructure have identified deficiencies in: • Water System • Sanitary Sewer System • Stormwater Detention • Electrical System • Certain improvements to the utilities in the RPA will be required for redevelopment in a contemporary fashion

  11. Obsolescence • Obsolescence is defined as the condition or process of falling into disuse. • Obsolescence is present due to the RPA’s poor design layout and building and parking orientation, especially as related to Water Street and the River. • Buildings in the RPA exhibit characteristics that reflect earlier development patterns – including lack of coordinated parking, lack of access to the site, design features, and older buildings construction features (i.e., ADA) • Some of the structures have become ill-suited for their original use.

  12. Deterioration • This factor is present in various locations within the RPA • Various degrees of deterioration with respect to buildings were identified on 7 of the 16 parcels, or 44% of the parcels within the RPA, including: • Damaged siding, wood frames, porches, steps and asphalt • Deterioration was found related to roadways, alleys, driveways, walkways and curbs • Off-street parking areas evidence deterioration

  13. City Redevelopment Objectives • Promote the redevelopment of property in and around the RPA • Improve existing infrastructure including sidewalks, crosswalks, streetscape, roadway system, recreational facilities, and utilities • Provide for the necessary site preparation, grading, and excavation of property located within the RPA as a means to promote more modern land development uses • Increase City property tax and sales tax base • Identify economically viable reuse opportunities for adjacent parcels in the RPA in a manner to promote mixed-use development

  14. Specific Objectives for the RPA • Design and Character • Multi-Use Development • Pedestrian Access Settlement. • Riverwalk and Naper Settlement. • Streetscape Parking/Access. • Traffic – Traffic should be thoroughly addressed and accommodated within the RPA to minimize the impact of the increased traffic, which will result from redevelopment of the area. • Stormwater Management • Planned Unit Development District • All development must comply with planning and zoning processes of the City. Source: City of Naperville Water Street Vision Statement, Nov. 2006

  15. City of Naperville Proposed Water Street TIF District TIF Plan Summary – The budget will be applied to public improvements, including improvements to enhance the Riverwalk area and a public parking garage. • Estimated 2006 EAV: $2,940,800 • Projected TIF EAV upon completion of redevelopment activities: $27,901,881 to $61,000,000 • TIF Redevelopment Budget: $20,475,000 • Anticipated TIF Revenue: $4.2 million (conservative estimate)

  16. School Tuition Costs Pursuant to the Act • The TIF Act requires that funds be set aside based on 25% of the residential portion of the projected TIF increment in order to reimburse actual tuition costs on a per student basis. • If reimbursements are not required because students are not generated, the property tax increment set aside for this costs, may be used by the City as it determines and in accordance with the law.

  17. Joint Review Board (JRB) • The JRB conducted two meetings to discuss the Draft TIF Redevelopment Plan and Project and; • How it met the objectives of the TIF Act • The TIF Plan requirements • Eligibility Criteria • The JRB recommended approval of the Draft TIF Redevelopment Plan and Project (4-1)

  18. Water Street TIF DistrictProcess

  19. Next Steps • Complete public hearing • City Council deliberation • Direct staff to draft ordinances establishing a TIF district • Approve ordinances • Negotiate Development Agreement

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