Montgomery approves design work for Aucott Road widening amid calls for written TIF legal opinion

The Village of Montgomery approved a professional services agreement to design the Aucott Road widening and the Mulberry Drive extension while trustees pressed for a written legal opinion on whether the project costs are eligible for Tax Increment Financing (TIF).

The village board voted to move forward with design engineering for Aucott Road (from Orchard Road east about 1,500 feet), the Mulberry Drive extension from Countryside Drive to Orchard Road, water-main relocations and roadway lighting. The motion was accepted by the board 6-0.

The approval follows a presentation by Eric DeWolf, the village's engineering consultant, who outlined the engineering scope and said the project includes design and permitting this year with construction next season. "The scope of this project includes the design of the widening and resurfacing of Aucott Road ... and the extension of Mulberry Drive," DeWolf said.

Trustees focused most of their debate on whether TIF funds may be used for the work. Trustee Geier and others said past assumptions about what TIF can fund have shifted and they wanted a current written opinion from the village's TIF attorney before committing TIF dollars to construction. "Before I would vote to expend any money out of a TIF fund, I would want to see a current opinion from our TIF attorney that says that this project as presented is TIF eligible," Trustee Geier said.

Village officials said the design phase should proceed to keep the construction schedule and bidding timeline on track, and that budgeted amounts from this year's TIF allocation would be carried forward into next year's budget if needed. Engineer DeWolf said the storm-sewer work discussed earlier will be part of the larger regional basin improvements and that design work is needed now to meet the anticipated bidding schedule.

Trustees also discussed whether Swallow Construction, the contractor for the now-cancelled smaller storm-sewer award, would bid on the larger packaged project; DeWolf said there was a chance but the larger project may draw different types of excavation contractors.

Why it matters: the Aucott widening and Mulberry Drive extension are central pieces of the village's redevelopment strategy; whether the work is paid from TIF affects the village's fiscal plan and could determine which parts of the project proceed if a legal opinion disallows TIF funding for some costs.

Board action and next steps: the board approved the design contract 6-0. Staff committed to obtain a written opinion from the TIF attorney about eligibility of the proposed expenditures and to return to the board with guidance on funding should the attorney’s opinion limit TIF use. The design schedule remains targeted to allow construction to begin in early 2026 if permitted and bid timing proceeds as expected.

Trustee concerns and context: Trustees emphasized they are not opposed to the engineering work but want documented legal guidance before committing TIF construction dollars. Trustee Geier said the village needs written assurance "because in the last couple of months we've learned a lot about TIF" and referenced past advice that had proven inconsistent. Other trustees asked staff to review the redevelopment plan so the board can confirm which portions remain TIF-eligible under current law and practice.

Background: The Aucott/Mulberry projects were included in earlier redevelopment plans and in the village's discussion of stormwater and redevelopment priorities. Staff noted some stormwater work will form part of larger basin improvements planned later this year.

What to watch: staff said they will seek the attorney memo on TIF eligibility and will bring budget alternatives to the board if the attorney finds some elements are not TIF-eligible. Design work will continue while the legal review is obtained to avoid delaying spring 2026 construction bidding.