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Downtown Redevelopment

Financial

The Redevelopment Agreement was originally signed and approved with a budget that required the Village to provide $11.1 million in funds to this project. These funds would be generated primarily through the TIF District, but would also be supplemented by sales tax from the Downtown Project Area and the implementation of a Special Service Area (SSA) in that same project area. This would make the project self-sufficient, and while the securities of the Village would be utilized as a backup revenue source for the project, the Village Board and Staff took the most conservative approach to potential revenues, making it highly unlikely that any supplemental funds would ever be necessary outside of the TIF area.

Current
As stated in the December, 2003 update on this project, the costs have steadily increased to the point that it is no longer financially feasible working with the Teng/Forrest developer under the terms and conditions of the current concept plan. The large revenue-generating grocery store has been eliminated from the project, necessitating a $2 Million infusion from the Village’s General Fund. In addition, the other revenue-generating sources of the plan, including condominiums and office/retail space, have been substantially reduced in area. These factors, along with the passing of time, have weakened the financial viability of the plan, causing the Village to return to the drawing board and evaluate more cost-effective options.