Molly Reimer addresses Western Kane Dems on Crown TIF and Warehouses
Thursday, February 22, 2024
Sugar Grove, Illinois — Molly Reimer spoke to the Western Kane Democrats on February 14th, sharing her perspective on the proposed Crown Community Development TIF and warehouses in Sugar Grove. Her full speech is included below.
Speech
My name is Molly Reimer and I have lived in unincorporated Elburn since 2016 with my husband of 25 years and our three kids. I am so thankful to Heidi and the Western Kane Democrats for inviting me here tonight. I'm not a great public speaker but I'm going to do my best because this issue is so important to me. I will do my best to answer questions after I'm done speaking. Tonight, I'm going to be talking about TIFs. Specifically, the upcoming proposal of a TIF district or "Tax Increment Financing" district from Crown Community Development and Sugar Grove which will be located at I-88/R-47. On the south side? Residential and light commercial. On the north side? 3.5 million square feet of warehousing, data centers, and a truck stop. Roughly the size of four United Centers. Less than ¼ of a mile from hundreds of homes. Mine included. They're calling it "The Grove."
A year ago, I didn't even know what a TIF was or what it stood for. I think that's the case for most of us. Tax Increment Financing is a tool used to generate money to "improve" an undeveloped area. In a TIF district, the current property taxes are frozen for the duration of the project — most are 23 years, extendable up to 47 years. TIFs can and have done a lot of good for many communities that have fallen into hard times. They've been used successfully to breathe life back into broken communities and improve property values. Unfortunately, they're being abused all over the US by large corporations and developers. We're seeing it right here in Kane County.
Crown development (the 34th richest family in the US — worth almost $15 Billion) and the village of Sugar Grove (population 9,128) will be proposing that the 760 acres of prime farmland (actively being farmed by a local family) along Route 47 north and south of I-88 is eligible for a TIF by way of a small area of supposed "blight." You see, to qualify for a TIF, the developer must prove that the area they want to develop is blighted and no development would occur without it. The state's definition of blight is so vague it's almost impossible to challenge. For a minimum of 23 years the amount of revenue (EAV or Equalized Assessed Value) our schools, fire, police, libraries, and other taxing bodies currently receive will FREEZE.
All revenue resulting from any increases above this base value will go directly to the developer — Crown. Our schools could also receive a limited amount in "impact fees" but that is not for certain. Crown wants a 90/10 split plus management fees. They get 90 percent of all the revenue and Sugar Grove is left with 10 percent to divide among the 15 taxing bodies. For 23-47 years.
I will be 45 years old in May. That means possibly for my ENTIRE lifetime, our local taxing bodies would receive no increase in revenue. Despite a rising need for police & fire services, excess strain on schools, wear and tear on our roads. These services would all be stretched thinner than they currently are to enrich an already-wealthy developer.
TIFs and their proponents promise to spur development and revitalize depressed communities, but all too often they're used as political slush funds for private developers with comfortable political connections. Recent statements regarding a windfall of surplus funds from Sugar Grove's two current TIF districts are subject to the breakdowns of the taxing bodies' percentage shares. Only 4.66% of any of these released funds go to the Village of Sugar Grove. For example, of the recent $250,000 surplus, the Village received only about $11,650. Hardly enough to replace a small section of sidewalk.
We cannot afford to give handouts to wealthy developers at the expense of taxpayers. We are being told that this type of development is needed to "diversify" the tax base. How is this issue solved when the villages designate their prime business property to TIF districts? How is this type of growth possibly able to reduce or stabilize residential property taxes? It doesn't make sense. There must be a better way.
Administrations try to dismiss TIFs as "no cost to the taxpayers," but these millions of dollars will be repaid via a TIF Fund (aka property tax dollars diverted from our schools, libraries, parks, and other taxing bodies). Essentially these developers get to use property taxes that would normally go to these taxing bodies to subsidize their construction project. TIFs are complicated, but in short, they are massive tax giveaways to wealthy developers.
This is one of the reasons there is a growing wealth gap in the United States. It's not magic money. It must come from somewhere. The TIF ask for the Crown Development called "The Grove" is projected to be anywhere between $127-$350 million – one of the largest TIFs in Illinois outside of Chicago. One of 51 other TIF districts in Kane County alone. As more and more of these jumbo TIFs for billionaires are approved throughout Kane County, more homeowners will be forced to subsidize these tax drains. With states balancing budgets by slashing aid to school boards and other government bodies, local revenue matters more than ever. Costly long-term property tax abatements and TIFs granted to large companies in the name of economic development hurt our schools. They divert huge sums of property taxes for decades. Public schools are the lifeblood of our communities, and they are suffering.
I would also like to mention how TIFs can have a negative impact on health and safety. Chief Brendan Moran, of the Sugar Grove Fire Protection District, recently addressed his concerns at the Kaneland School Board meeting during public comment — explaining how existing TIFs have negatively affected his district. Many residents in the district have filed complaints citing poor response times to 911 calls. He explained that adding another TIF in addition to the four they already have in his jurisdiction would be detrimental. One building in the TIF district only gives them about $80 a year in revenue. If it wasn't under a TIF, they'd be getting about $7,700 a year from that building. Another TIF would mean even more area/work to cover without the support of more revenue. Residents should know that if a fire protection district doesn't have finances they need, they don't have the manpower or full training for its station, other districts will be asked to cover calls for them or send mutual aid. When there are large accidents or fires, this is a given and is what should be expected especially with a development of this scale. However, when it becomes a manpower situation only, other departments can eventually deny their aid, as it puts unnecessary cost and strain on their own districts. This will negatively affect everything in that district, from effective emergency coverage to insurance rates to station morale. I should also note that in addition to this burden, the Sugar Grove and Elburn fire protection districts oversee all safety inspections for the 3.5 million square feet of warehouses at 88/47.
As one of many residents on well and septic just north of the proposed development, it is extremely concerning that Sugar Grove has adopted permitted use zoning on all their business park zoning. Special use zoning would have given the village much tighter control over what types of hazardous materials could be stored on site and what types of businesses could be housed in the business parks. Most all other municipalities we contacted confirmed they apply special use zoning in their business parks/manufacturing. The aquifer that replenishes our wells is just ten feet below ground level in some places. We have site plans showing poor drainage and soil that is unfit to support the weight of these large buildings Crown is proposing and truck traffic. In order to develop the land, they will need to grade the hill some 15-30 feet lower. Some area wells are less than fifty feet deep. We are all extremely concerned not only about what may end up in our water supply, but whether our wells will go dry. Both scenarios are a real possibility.
Keeping to the topic of health and safety, truck traffic is another huge concern. Since the construction of the interchange at 88/47 (for which Crown paid half of the costs), our area has seen an increase in serious traffic accidents. We have documents from IDOT stating there is no plan to widen or improve the area before 2029. If this warehouse plan is approved, Crown's traffic study estimates a minimum of 750 additional daily truck trips in this area of Route 47. With new access roads to the business parks strewn in among roads to neighborhoods, I don't see how this isn't a recipe for disaster. Kaneland is a geographically large district with 9 towns busing students from Montgomery and Kaneville and Elburn to the middle school in Sugar Grove as well as the high school in Maple Park. Take Waubonsee College commuters into account as well. These buses, families and young student drivers will be trying to navigate these treacherous roads filled with semi traffic. I can't even begin to imagine it. With the TIF in place, there won't be extra funding to improve roads for a minimum of 23 years.
Currently there are 1,300 TIF districts scattered across our great state of Illinois. However, a number of taxing bodies have started to realize they are a scam, and some have even opted to sue municipal governments for implementing them. TIF reform has earned bipartisan support in Springfield with two bills currently in the General Assembly that would amend the state's loose definition of "blighted area." Lawmakers would be wise to take this common sense step toward reducing the role of TIFs in local government.
Somehow, someway, we collectively must stop this madness and stand against politicians being used as pawns to the sophisticated marketing scams of these billionaires. It's time to wake up and shake up this broken system. I support TIF reform in Illinois and especially here in Kane County. I hope you will join me. Thank you.