TIF district established in Algonquin for new corporate campus

A tax increment financing district has been established for a 1.6 million-square-foot corporate campus that will be built in Algonquin.

Missouri-based company NorthPoint Development are the developers for the campus on the southwest corner of Longmeadow Parkway and Randall Road, which could be anything from a business headquarters to an industrial manufacturer to a logistics facility, as previously reported by the Northwest Herald.

Currently, there are no specific tenants set for the five new industrial warehouse buildings making up the campus, Algonquin’s Community Development Director Jason Shallcross said. He said they are usually finalized when buildings are either under construction or fully built.

A 12 to 18-month buildout is expected for the development, Shallcross said.

Algonquin’s village board unanimously approved creating a TIF district for the corporate campus earlier this month.

TIF districts give municipal governments the option to earmark property tax revenue generated within the district for improvements that are aimed at helping foster economic progress and job creation. They typically are approved for areas where economic growth has been blighted and where there is a need for development or redevelopment.

In Algonquin’s case, it was determined by the Johnson Research Group in Chicago that the area is eligible as a TIF district because of area’s chronic flooding. This flooding leads to standing water, saturated soils, and nonfunctioning drainage ways, meaning growth and development likely would not happen on the southwest corner of Longmeadow Parkway and Randall Road without addressing these issues.

Property tax money from the TIF would allow Algonquin to “direct, implement and coordinate public involvement and activities” that are intended to stimulate private investment within the project area,” the Johnson Research Group said.

Under Illinois law, TIF districts can exist for up to 23 years. But under an agreement Algonquin has with Community School District 300, this TIF cannot last longer than 17 years, Shallcross said.

Usually, taxing districts only have access to the base taxable value in a TIF district when it’s created until the TIF expires. Any other property tax revenue generated in the district goes into a TIF Fund for improvements, Shallcross said.

However, Algonquin declared a surplus on its portion of this extra property tax money, or increment, meaning some of it would go to all taxing bodies, such as schools or the fire protection district, immediately.

“It’s not the full amount had there been no TIF or no incentive, but it is substantially more than they would receive had the project or had the property remained a cornfield,” Shallcross said.

NorthPoint Development will get 55% of the increment, while the remaining 45% will be dispersed to Algonquin’s other taxing bodies.

When it is fully developed, the NorthPoint Development site is expected to generate over $3.2 million in new property tax revenue, according to a news release from the village.

“The NorthPoint Development is a fantastic addition to the Algonquin Corporate Campus that will generate a significant amount of jobs for the community,” Village President Debby Sosine said in the news release.

More than 1,000 new jobs also are anticipated through the construction build-out, according to the release.

“We are ecstatic to be joining and expanding the business community in Algonquin,” Tom George, vice president of acquisitions for NorthPoint Development, said in a statement. “From beginning to end their development team laid out a clear and concise process that was collaborative and made choosing Algonquin a great choice.”