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Staff recommends closing two TIFs as developments complete; early payoff could save $3 million in interest
Summary
Staff told the board the Vernon Hills Town Center TIF has reached its natural end and that the Melody Farms (Milwaukee/Townline) TIF has sufficient receipts to close early; paying off outstanding debt early would save roughly $3 million in interest and eliminate an annual 10% village contribution of about $440,000.
Staff presented a status update on three TIF districts. The oldest, the Vernon Hills Town Center TIF (established 2002), has reached its natural end; staff will prepare a formal ordinance to close the TIF, declare any surplus, notify the Lake County collector and participating taxing bodies and distribute surplus funds per statutory process.
The Melody Farms (Milwaukee Ave./Townline) TIF (established 2017) reported an estimated fund balance of approximately $16.9 million and projected receipts of roughly $5 million in fiscal 2027; disbursements to retire the outstanding debt would be under $19 million, leaving an estimated post-payoff balance of about $3 million. Staff said an early payoff is financially feasible and would save an estimated $3 million in interest and eliminate the village's current annual 10% in-lieu-of-tax contribution of about $440,000. Staff reported they have not identified other public projects that make logical sense as alternate uses of the remaining increment and recommended pursuing formal closure and distribution steps this summer or early fall so taxing bodies can include returned EAV in 2026 levies if appropriate.
Board members asked timing questions; staff said they expected to have ordinances prepared for board consideration in August or September and noted statutory notification deadlines for taxing bodies.
