RDA tables release of TIF funds to Zion Mountain amid $340,562 tax delinquency

The Kane County Redevelopment Agency on May 26 postponed a decision on releasing tax-increment financing (TIF) funds to the Zion Mountain Local Service District, citing unresolved delinquent property taxes and a state law change that affects participation agreements.

County staff presented a breakdown of revenues for the project area, saying, "the total amount of revenue that we have, for this project area has been a $152,436.65." Staff explained the distribution: a 2.5% administrative fee ($3,810.92), 10% for housing (40% of that to workforce housing = $6,097.47; 60% to other authorized housing = $9,146.20) and roughly $133,382.06 for project development, which will first go to visitor-center debt service.

Staff also read a recently enacted state requirement that affects older participation agreements. As staff put it, beginning on 05/07/2025 "any participation agreement shall include a provision authorizing the agency directly or through the county to use funding that would otherwise be provided to the participant" to satisfy tax liens. Board counsel explained agreements made before that date should be amended "as soon as practical."

Board members focused on the district's unpaid property taxes, which staff said total $340,562.24, while the RDA has collected about $133,382.06 and therefore lacks funds to make the outstanding tax payments. Dirk, a consultant working with the district, warned that the local service district "has definitely been starving for funds and would appreciate a release of the funds that have been collected."

After discussion about optionswithholding funds until taxes are current, accepting a private payment to cover obligations, or amending agreements to comply with state lawthe Chair moved to table the release for further coordination with Zion Mountain's board. The motion was approved on a voice vote and the item was deferred for more information and follow-up.