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Village board approves development deal with Kadali America LLC in Tax Increment District No. 3
Summary
The village board on Jan. 12 approved a development agreement with Kadali America LLC that would return 50% of future incremental tax value in Tax Increment District No. 3 to the developer for the remaining life of the district; board members voted unanimously to approve the agreement after a brief presentation by Schultz.
The village board voted Jan. 12 to approve a development agreement with Kadali America LLC that directs the village to return 50% of the property's incremental tax value in Tax Increment District No. 3 to the developer for the remaining life of the district.
Schultz presented the agreement, saying it applies to property east of International Drive and just south of State Trunk Highway 20. He told trustees the incentive applies to incremental value above a benchmark assessed value and will run through the mid-2030s, roughly 10 years. "This provides 50% of the incremental value in TID 3 above a benchmark value," Schultz said, adding the Community Development Authority approved the proposal 4'to—2 in open session.
Schultz said the village and developer may calculate and prepay incentives for the remaining life of the district with developer sign-off. He estimated the total value of incentives over time "somewhere between 1 and $2,000,000," and said the final amount will depend on the project's eventual taxable improvements.
A trustee moved to approve "the development agreement with Kadali America LLC in Tax Increment District Number 3 as presented," the motion was seconded, and the board took a roll-call vote. Karas, Ventrini, (Batya/Bhatia), Anastasio, Pollock, Washburn, DeGroot and the president recorded "Aye," and the president announced the motion carried.
Board discussion was brief. One trustee said it was encouraging to see the building sell and be repurposed for manufacturing and job creation after sitting vacant for three years. The president described the structure as "an empty shell" that will require substantial build-out and said it reflected a significant investment opportunity.
The meeting also approved the consent agenda earlier in the session by voice vote and then adjourned.
Next steps and details on implementation, including exact benchmark assessed value and any reimbursement schedule, were not specified in the publicly read transcript.
