Economic Benefits
The original downtown redevelopment project proposed by a single developer is no longer four (4) phases but a single phase (Phase IA & IB) multi-family residential development. At this time, the Village is now taking an approach in which redevelopment can be pursued by a private developer in any given area within the downtown. Phase IA apartments are underway and the Village is assembling land for redevelopment in the area adjacent to the Municipal Center across from the train station. As progress is made and with the potential the entire downtown is developed over the long term, there is potential to receive the following economic benefits from full redevelopment (these are the estimates based only on the original four (4) phase development being constructed.
1. Property taxes - The investment in downtown redevelopment will increase property values as well as property tax dollars generated within the downtown area. The additional property tax dollars will help support all the local taxing bodies in the long-term after the TIF has terminated (2038). The schools will mostly receive the benefit of the additional tax base (approximately 68%) with minimal impact to operations from the redevelopment.
Upon the termination of the TIF District, the taxing bodies below are projected to receive increases in property tax revenues as a result of the completion of phases of the downtown redevelopment (original four phase plan). The impacted taxing bodies include (projected increases shown below in 2015 dollars):
- Village of Fox River Grove – $185,698 per year
- Fox River Grove School District #3 – $1,286,599 per year
- Crystal Lake School District #155 – $636,805 per year
- Fox River Grove Memorial Library – $135,509 per year
- Fox River Grove Fire Protection District – $176,546 per year
- Algonquin Township – $21,253 per year
- McHenry County – $292,230 per year
- McHenry County College – $114,235 per year
- McHenry County Conservation District – $71,729 per year
2. Income tax - With the additional apartments, the Village would benefit from the larger population as it receives approximately $100 per person from the State in local income tax. It is projected that the Village could receive up to an additional $78,000 per year upon completion of the redevelopment.
3. Sales tax - More people concentrated in the downtown area combined with new square footage of retail and commercial space could generate more local sales tax dollars to help support municipal operations. More tax dollars generated through redevelopment means current tax payers in the community would ultimately have to pay less. It is projected that the Village could receive up to an additional $120,000 per year upon completion of the redevelopment.
4. Utility taxes - With more square footage overall in this mixed use development, additional utility taxes (electric, natural gas, telecommunications) would be generated to help support municipal operations. It is projected that the Village could receive up to an additional $96,000 per year upon completion of the redevelopment.