SUGAR GROVE – On May 15, the Sugar Grove Village Board approved an eligibility study for a Tax Increment Financing Boundary study to create the same boundaries for both TIF District 1 and TIF District 2. The approval for the eligibility study proposed by Moran Economic Development was passed with three yes votes and two no votes.
Moran Economic Development will work on the initial eligibility study and come back to the board to present its findings. A development plan will be needed after the eligibility study in order to create the same boundaries for the TIF districts.
There are several benefits to combining the boundaries of TIF District 1 and 2. Village President Sean Michels spoke about a couple of potential benefits.
“Combing the two TIF districts would help us move funds between them,” Michels said. "We could extend the bike trails across Route 30. It would help to fund the cost for extending fiber optics out to the west. TIF District 1 has some extra funds and TIF District 2 is in a deficit.”
Moran Economic Development President Keith Moran was present at the village board meeting to address questions from the board concerning the eligibility study proposal.
“It is quite common to have TIF districts fuse with one another and have one hand help the other,” Moran said. “It’s a common strategy used. It is almost like establishing a brand new TIF district. It will serve multiple purposes. You will be able to add money from one TIF district to the other. Perhaps, we have a small boundary within the TIF districts to reflect projects that could be in need of TIF assistance. We could treat it like a brand new TIF. The ability to move money can make a big difference.”
Questions came up concerning the potential name of the new TIF district. Moran mentioned a couple options.
“It would either be TIF District 3 or an amended TIF District 2,” Moran said. “I’m not exactly sure how we would do it.”
Finance Director Matt Anastasia explained how the process would work to create the same boundaries for TIF District 1 and TIF District 2.
“They are going to do an eligibility study and come back to us,” Anastasia said. “Then they will come back to us in phases. They will recommend options with the eligibility study.”
Michels spoke about the option of establishing TIF District 3.
“I’m in favor of creating TIF District 3 and proposing extension of the fiber optics,” Michels said. “[The project] is a considerable expense but over time I think this would benefit everyone. I’m in favor of moving forward.”
The cost for the initial eligibility study Moran Economic Development will complete will cost the village $13,900. The board will have another fee for the development plan if approved at a future board meeting.