Downers Grove Council approves downtown special service area

The Downers Grove Village Council Jan. 12 decided to designate parts of downtown as a special service area.

A special service area is an economic development tool. Property owners help the village pay for public improvements under an SSA.

The Village Council’s decision means a special tax will be levied on commercial properties in the downtown area. The boundaries of the SSA previously included privately owned residences, but this is no longer the case.

“SSA Number 11 has the same footprint as SSA Number 2 with the change of removing single-family residences and multifamily, owner-occupied units that were in SSA Number. 2,” said Erin Venezia, executive director of the Downtown Downers Grove Management Corp. “The commercial components of those properties will remain in the SSA.”

No residents make or submit public comments on the topic at a Dec.7 public hearing.

Commissioner Marge Earl said the ordinance is long overdue.

“This is a balance between what we wanted, which was the continuation of the downtown special service area that’s supported solely by the businesses and the rental apartments in that area and not putting the burden on the homeowners in the area, which I think has been very much appreciated,” Earl said.

The SSA helps provide funding for Downtown Downers Grove Management Corp. operations and beautification enhancements.

The SSA is projected to generate up to $400,000 in revenue based on a 1% tax rate of the assessed value of property, according to village documents. The expiring ordinance imposed a 1.5% tax rate.

Venezia said there will not be a reduction in services.

“The 1.5% maximum rate was based off [equalized assessed valuation] from 1999,” she said. “The EAVs have increased since then, therefore allowing the decrease in rate.”

The SSA will expire in 10 years.