East Dundee gives go-ahead for $5 million village hall & police station expansion work
By Erin Sauder For Sun-Times Media September 4, 2013 12:02PM
The East Dundee Village Board has approved a $5 million revamp of the the village hall and police station on Barrington Avenue. | Sun-Times Media file photo
Updated: October 7, 2013 12:35PM
EAST DUNDEE — The village board has approved spending $5 million to revamp both the village hall and police station.
For the village hall portion, officials agreed to take out a $2.25 million line of credit with U.S. Bank and use money generated from tax increment finance districts to pay off the debt within five years at a 1.99 percent interest rate. TIF funds also would be used to finance the $3 million price tag on the police station project.
A TIF district is a way of splitting property tax revenue between a set base that is paid out to all local taxing bodies and the tax increment, which is any tax money collected over the base. That extra money is used to finance improvements in the district.
“We get X amount of dollars but only once a year from each of the TIF districts. We don’t have money sitting in a big pile right now,” Village President Lael Miller said. “So we’ll then take the incoming TIF dollars and basically pay off that line of credit during the construction process. It’s a beautiful thing.”
Trustee Allen Skillicorn cast the lone vote against approving the project, saying he’d like to see it cost less. He also said he wished it had been presented to taxpayers in the form of a referendum.
Once the East Dundee Fire Protection District moves to its new spot near Routes 25 and 72, the East Dundee Police Department will expand into the fire district’s old building, paving the way for the village hall renovations.
A $5.5 million referendum passed by taxpayers in November made possible the new fire station. Fire officials said that area is more centrally located to serve their entire district, which extends as far east as Higgins Road (Route 72) and Interstate 90.
The land the new fire station is being built on is owned by the village. Both fire and village officials agreed to swap the land for the current fire department building on Third Street. To make the exchange more equitable, since the village was receiving three acres of land with a complete building, East Dundee officials said they would donate $100,000 per year to the East Dundee Fire Protection District — a separate taxing body — for the 20-year life of the loan to build the station to offset payment of the bonds.
Miller doesn’t anticipate construction beginning on the police department and village hall until next year.
Last month, officials broke ground on the fire district’s new station. Construction is anticipated to take about 10 months.