Palatine council authorizes TIF eligibility study for East Dundee Road Corridor

The Palatine Village Council on Sept. 11 authorized the village manager to negotiate and enter into an agreement with SB Friedman Development to undertake a Tax Increment Financing (TIF) eligibility study, a redevelopment plan and a designation of services for the proposed 2023 East Dundee Road Corridor study area.

Staff emphasized that the action does not create a TIF district; it funds studies to determine whether statutory criteria are met. The estimated timeline for the work is about five to six months, after which council action would be required to create a TIF district. Staff said additional public input would be sought during the process.

Councilmembers questioned the proposed study area’s boundaries and whether the plan should extend to nearby corridors, including Rand Road and Park Place. Staff explained TIF districts must be contiguous and noted parts of the nearby Rand Road corridor already lie inside an existing TIF. Staff also cautioned that including residential areas would trigger relocation-planning obligations under state law; the current proposal is limited to commercial properties to avoid residential displacement issues. "If the council had a desire to look at a TIF district on Rand Road south ... it would probably be best to look at it as a wholly separate TIF rather than bundling," staff said.

Why it matters: A TIF district can redirect incremental property-tax growth to fund infrastructure or redevelopment within the district; studying the corridor is the first step in determining whether the statutory and local criteria for a TIF can be met. The study will also define proposed boundaries and identify any compensating measures for other taxing bodies.

What’s next: SB Friedman Development will conduct the eligibility analysis and redevelopment planning over the coming months; staff said they would report back to council and that public outreach will follow if the study indicates a viable TIF.