School District 204 passed a new resolution outlining their stance on new developments within the district.
Justin Karubas, the vice president of District 204, said city officials and school board members should come together when discussing new developments.
“I think we should all be in favor of economic developments around the district, but it should be done in partnership with schools,” Karubas said.
The resolution comes after members of Aurora City Council approved a development agreement to a senior citizens housing complex.
The $29 million housing unit will be located on the corner of 75th and Ogden Ave., which is within District 204’s boundaries. As part of the development the city of Aurora will see if the 30 acres qualifies as a TIF district.
Municipalities can create TIF districts to encourage economic development in a certain area by freezing the assessed value of the property. That limits an increase in taxation for a period of time regardless of whether the property value goes up.
One of District 204’s resolution states it opposes “any tax increment financing or other economic incentive without the approval of the district.”
“School boards should oppose any reduction in their access to local property tax revenue,” Karubas said.
Cathy Piehl, District 204’s Board Secretary, said the board is in unison about the resolution.
“I think it is a good way to communicate with our community that we are all in agreement with this. And no one wavering on our attitude about removing funding from our school district,” Piehl said.
Fellow board member, Mark Rising, agreed with Piehl and explained that close to 80 percent of District 204’s budget is property taxes. He offered his opinion on how municipalities should proceed when thinking about creating a TIF districts.
“We’ve been dealing with this close to a year the process should work that the city, any city, any school district should work with the school district locally before considering a TIF,” Rising said.
The set period a TIF may vary, but typically ranges from 23-35 years. During this time if a property value increases from the initial assessment the excess money goes into a fund know as an increment.
Cities can then take the increment and use that to further develop areas around the TIF district.
Though, the City of Aurora is looking to redevelop part of the Route 59 corridor with the potential for more TIF districts.
Karubas said the resolution isn’t development specific, nor does the board want to stop development around the district.
“We’re not saying no incentives, we’re not saying no economic developments. We’re trying to be as pro and positive as possible.”
Naperville News 17’s Christian Canizal reports.
To learn more about TIF districts click here.
LIKE WHAT YOU SEE?
Get daily hometown news and sports delivered to your inbox!Sign Up Today!