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Campton Hills reviews LaFox redevelopment deal: KDOT IGA, TIF rules and a $54 million eligible-cost ceiling
Summary
Staff told trustees that KDOT has offered to let Campton Hills take the low bid for LaFox Road at about $2.25–$2.35 per (unit/bid item) and to defer full reconstruction; the redevelopment agreement was revised so the developer will assume TIF-related 10% obligations where the village lacks a property-tax levy and the eligible-expense ceiling was raised from $42 million to $54 million.
The Campton Hills Village Board spent the bulk of its meeting on a proposed LaFox redevelopment agreement and related intergovernmental and financing issues, including a KDOT intergovernmental agreement (IGA) for LaFox Road construction and tax-increment financing (TIF) terms in a redevelopment agreement (RDA) with the developer Shodine.
Mark (staff/consultant) briefed trustees on recent talks with KDOT and county transportation staff. He said KDOT would not increase the village’s road cost share and that the county would offer the village the low bid for the LaFox resurfacing project — roughly "$2.25 or $2.35" (as discussed in the meeting) — and allow the village to defer full-depth reclamation this fall to avoid repeated damage from upcoming utility cuts and curb openings.
On the RDA and TIF details, Carmen (staff/legal) and Mark explained a statutory 10% rule for municipalities without a local property-tax levy: "any TIF in the State of Illinois, for a community that does not levy local property tax is required to contribute 10% of the annual deposits into the special tax allocation fund," Carmen said. Counsel and staff told trustees the developer agreed in the draft to assume that 10% obligation rather than the village levying a property tax — a move staff said shifts the immediate risk to the developer but does not eliminate long-term policy trade-offs.
Staff also reported one substantial drafting change: the eligible expense ceiling in the RDA had been raised from $42,000,000 in earlier drafts to $54,000,000 in the circulated version. "The other change we made was to take the $42,000,000 ceiling ... and change it to 54,000,000 of eligible expenses that the developer could foreseeably ask for payment on," Mark said.
Trustees pressed staff on financing mechanics and contingencies: whether a sanitary-district agreement existed, whether the village or a sanitary district would issue bonds or notes, and whether the $54 million cap included interest, underwriting discounts and other fees. Staff said the $54 million described face amounts of revenue bonds and developer notes but that interest and debt-service costs would be additional over time; one trustee summarized that total payout could reach well beyond the cap when interest and pass-throughs to school and library districts were accounted for.
Staff asked for consensus to move the IGA and RDA to action on July 21 if KDOT and county technical staff can deliver final drafts in the next few days. Trustees asked staff to circulate a pro forma showing how the TIF increment would be distributed (including required 10% payments, school and library pass-throughs and expected developer reimbursements) before the next vote.
Next steps: staff will seek KDOT final language for the IGA, provide the requested pro forma and respond to trustees’ drafting concerns ahead of the next meeting and the county transportation committee meeting on July 21.
