Village of West Dundee Spring Hill Mall Area TIF 5 Tax Increment Financing Redevelopment Plan and Project

DRAFT DATED 10/20/22 VILLAGE OF WEST DUNDEE SPRING HILL MALL AREA TIF 5 TAX INCREMENT FINANCING REDEVELOPMENT PLAN AND PROJECT Prepared By: Kane, McKenna and Associates, Inc. Prepared For: The Village of West Dundee, Illinois October 2022 TABLE OF CONTENTS Subject Page I. Introduction 1 A. The Redevelopment Plan 4 B. Summary 5 II. Redevelopment Project Area Legal Description 7 III. Redevelopment Project Area Goals and Objectives 8 A. General Goals of the Village 8 B. Specific Objectives for the RPA 8 C. Redevelopment Objectives 9 IV. Evidence of the Lack of Development and Growth within RPA and Assessment of Fiscal Impact on Affected Taxing Districts 10 A. Evidence of the Lack of Development and Growth Within the RPA 10 B. Assessment of Fiscal Impact on Affected Taxing Districts 10 V. TIF Qualification Factors Existing in the Redevelopment Project Area 11 A. Findings 11 B. Eligibility Survey 11 VI. Housing Impact Study Findings 12 VII. Redevelopment Project 13 A. Redevelopment Plan

and Project Objectives 13 B. Redevelopment Activities 14 C. General Land Use Plan 15 D. Additional Design and Control Standards for Community Development in the City 15 E. Estimated Redevelopment Project Costs 16 F. Sources of Funds to Pay Redevelopment Project Costs 25 G. Nature and Term of Obligations to be Issued 26 H. Most Recent Equalized Assessed Valuation (EAV) Of Properties in the Redevelopment Project Area 26 I. Anticipated Equalized Assessed Valuation (EAV) 26 TABLE OF CONTENTS ... Continued Subject Page VIII. Description and Scheduling of Redevelopment Project 27 A. Redevelopment Project 27 B. Commitment to Fair Employment Practices and Affirmative Action 28 C. Completion of Redevelopment Project and Retirement Of Obligations to Finance Redevelopment Costs 29 IX. Provisions for Amending the Tax Increment Redevelopment Plan and Project 30 LIST OF EXHIBITS Exhibit A - Boundary Map Exhibit B - Legal Description Exhibit C - TIF Qualification Report Exhibit D - Existing Land Use Map Exhibit E - Future Land Use Map Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 1 I. INTRODUCTION The Village of West Dundee (the “Village”) is located within the outer ring of Chicago’s northwest suburbs in eastern Kane County, Illinois, approximately thirty-eight (38) miles northwest of the City of Chicago’s downtown along Interstate 90 (Jane Addams Memorial Tollway I-90). The Village is situated proximate to major arterials such as Interstates 90, and Illinois Routes 31 and 72, and is approximately 28 miles from Chicago O’Hare International Airport. The Village lies adjacent to the municipalities of East Dundee to the east, Sleepy Hollow to the west, Carpentersville to the north, and Elgin to the south. The Village has a population of 7,784 residents according to the 2020 US Census. The Village is a home rule municipality and was incorporated in 1887. West Dundee enjoys one of the region's most unique and treasured assets, the Fox River greenway. The Fox River serves as the Village's eastern border and is one of the community's finest recreational areas. Single-family residential uses are the primary land use, in West Dundee, although the Village does contain multi-family housing, several commercial districts, and office uses. Commercial districts are primarily along Main Street/Higgins Road/Route 72, Route 31 (Eighth Avenue), and Huntley Road. The large regional shopping center, Spring Hill Mall, is in the center of the Village at the intersection of Route 31 and Route 72. Spring Hill Mall and the area around the mall was once the economic engine for West Dundee. The Mall and adjacent restaurant and support uses combined with the former Target and Best Buy stores across Route 72 comprised a significant commercial area in the center of the Village. Three arterial roadways, Route 72, Huntley Road, and Route 31, provide access to this area. About 1.1 million square feet of commercial space exists in this shopping hub. The Village currently utilizes its 2005 Comprehensive Plan, as amended by the Spring Hill Mall SubArea Plan Update (“Comprehensive Plan”), to guide the Village's planning and economic development efforts. The Comprehensive Plan sets forth long-range recommendations for the future growth and development within the community and for the maintenance and enhancement of the existing image and character of the Village. The mission of the Village’s Comprehensive Plan is to “address West Dundee’s challenges and take advantage of its opportunities by providing a coordinated, sensible framework for future community improvement, development, and redevelopment actions.” In addition, at the time the Comprehensive Plan was adopted in 2005, the plan stated that “With about 1.5 million square feet of existing retail space, Spring Hill Mall alone (approximately 80 percent of the Mall is in West Dundee)” accounted for more than 55 percent of the total retail space in West Dundee. The Plan also indicates that West Dundee had derived a higher percentage of property taxes from commercial uses than any other neighboring community and Kane County as a whole. The Comprehensive Plan notes that the strong commercial base that the Village had developed over the years since the opening of Spring Hill Mall had enhanced the Village’s fiscal health, but that “declines in sales tax revenues in recent years have raised concerns regarding the reliance on commercial sales taxes as the major revenue Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 2 source of the Village in the future. Indeed, Village staff recently reported that sales tax revenues from the Spring Hill Mall decreased by over $400,000 between 2016 and 2021. According to the Comprehensive Plan, “diversification of the tax base and developing other revenue sources from land uses other than existing retail uses are potential fiscal strategies for the Village.” Finally, the Comprehensive Plan states “Repositioning Spring Hill Mall and attracting commercial establishments that complement rather than compete with existing businesses throughout the Village will enhance commercial sales and subsequent sales tax revenues.” Source: Village of West Dundee 2005 Comprehensive Plan Accordingly, the Village has recently updated its “Spring Hill Mall Sub Area Plan” (part of the Village’s Comprehensive Plan) with the “Spring Hill Mall SubArea Plan Update”. The Spring Hill Mall SubArea Plan Update is intended to address the decline of the Spring Hill Mall due to outside influences such as increasing trends in on-line sales, the pandemic, the closure of major retail anchors along with significant vacancies among the in-line mall shops, and changes in mall ownership/management. The Spring Hill Mall SubArea Plan Update calls for the repositioning of the Spring Hill Mall to respond to these downward trends. This amendment to the Comprehensive Plan will serve to encourage mixed residential, retail, commercial, and institutional uses to locate, upgrade, or expand and/or modernize their facilities within the Village as part of its ongoing economic development planning. In pursuing these uses, a necessary strategy for the Village will be to eliminate certain existing adverse conditions within some portions of the Spring Mall area, and to find new means to preserve and strengthen the Village’s tax base. Previous redevelopment efforts in the RPA include the Village’s prior adoption of a first Spring Hill Mill TIF in 2016. To date, this current Spring Hall Mill TIF has not been successful in achieving the Village’s redevelopment objectives and creating sufficient incremental EAV growth. Accordingly, the Village intends to terminate the existing Spring Hill Mall TIF when it adopts the new Spring Hill Mall Area TIF 5, which will include the Spring Hill Mall property, as well certain out-lots and adjacent properties. The Village’s future redevelopment efforts pursuant to the new Spring Hill Mall Area TIF 5 will be coordinated with the Village of Carpentersville, which recently adopted its own proposed new Spring Hill Mall TIF for the northern portion of the Spring Hall Mall and certain adjacent properties. To augment its redevelopment efforts in the RPA, the Village of West Dundee is also contemplating the establishment of a Business District in the RPA, which will expand its inventory of economic incentives to encourage redevelopment in the RPA. The area discussed in this Spring Hill Mall Area TIF 5 Redevelopment Plan and Project (the “Plan” or the “Redevelopment Plan and Project”) is the proposed Spring Hill Mall Area TIF 5 Project Area (the “Redevelopment Project Area”, the “RPA” or the “TIF District”). The RPA consists of the southern portion of the Spring Hill Mall properties that are located within West Dundee’s corporate limits, along with additional commercial parcels northwest of the mall south of Huntley Road and other commercial parcels south of the mall along West Main Street between Village Quarter Road and Locust Drive. The RPA includes 41 tax parcels. A boundary map of the RPA is attached as Exhibit A. The RPA is legally described in Section II and Exhibit B. The existence of certain building and site improvement conditions within the RPA, along with changing retail market conditions, including the emergence of the Randall Road corridor, and Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 3 increased competition from on-line shopping, have contributed to the emergence of certain qualification factors as defined by the Tax Increment Allocation Redevelopment Act of Chapter 65 ILCS Section 5/11-74.4 et seq., as amended (the “TIF Act” or the “Act”) such as obsolescence, excessive vacancies, deterioration, and inadequate utilities. In addition, the RPA experienced a decline in EAV in four of the last five (5) years, as compared to the rest of the Village which experienced increases in EAV in each of the last five (5) tax years. On balance, the combination of factors described above may not only limit potential for private reinvestment within and around the RPA but may also serve to stimulate economic decline of the Spring Hill Mall as a whole and areas adjacent thereto. This is because these conditions negatively impact coordinated and substantial private sector reinvestment in the overall RPA. Without the use of Village planning and economic development resources to address certain issues, potential redevelopment activities are not likely to be economically feasible. These factors potentially weaken the likelihood for redevelopment opportunities, limiting employment and contributing to a lack of future investment in the area. To address these conditions, the Village now seeks to adopt a Spring Hill Mall Area TIF 5, in order to capture declining EAVs and to enhance future opportunities for viable repositioning/redevelopment of the mall and surrounding area. In addition to these efforts, the Village also anticipates adoption of a Business District for the Spring Hill Mall area properties. Finally, the Village is considering the establishment of an “overlay district” in coordination with the Village of Carpentersville for the mall properties to drive a comprehensive and collaborative approach to redevelopment of the Spring Hill Mall area properties by both villages. If there is coordination of redevelopment efforts by the Village using the TIF Act, along with collaboration with the Village of Carpentersville, the RPA will become much better positioned for redevelopment opportunities that meet new market conditions and trends. Accordingly, under this Redevelopment Plan and Project, and as part of its comprehensive economic development planning, the Village intends to attract and encourage retail, commercial, and multi-family residential developers and tenants to locate, upgrade, expand and/or modernize their facilities within the Village. Through the establishment of the RPA, the Village will implement a program to redevelop the portion of the Spring Hall Mall within its corporate limits and areas adjacent to thereto; in so doing, it intends to stabilize the area, extend benefits to the entire community, and assist affected taxing districts over the long term. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 4 A. The Redevelopment Plan The Village recognizes the need for implementation of a strategy to reposition and revitalize existing properties within the boundaries of the RPA, as well as to stimulate and enhance new commercial, retail and mixed-use redevelopment. Due to changing retail demographics and shopping culture, especially as it has affected shopping malls and large department stores, the continued successful operation of this 1980’s vintage regional mall anchored by department stores is no longer feasible. The ability to respond to marketplace demands is a key component of the Village’s strategy to promote private redevelopment within strategically critical areas of the Village. The necessary private investment will likely only be attracted to the RPA if tax increment financing (TIF) is adopted pursuant to the TIF Act. Incremental property tax revenue generated by the redevelopment will play a decisive role in encouraging private redevelopment. Existing conditions, such as those associated with properties and site improvements located within the RPA, that may have precluded intensive private reinvestment in the past, will be eliminated. Ultimately, the implementation of the Redevelopment Plan and Project detailed herein will benefit the Village and all the associated taxing districts, in the form of a stabilized and significantly expanded tax base. The designation of the area as a Redevelopment Project Area will allow the Village to address deficiencies within the RPA, by taking the following steps: - Establishing a pattern of up-to-date retail and mixed-use land-uses that will increase valuation and address evolving market trends, especially as such uses complement adjacent uses; - Providing roadway, traffic and other site improvements within the area that will be more conducive to pedestrian and bicycle use; - Entering into redevelopment agreements in order to facilitate and guide the redevelopment and potential adaptive re-use of underutilized and obsolete properties; - Improving area appearance through removal, reconstruction, and renovation of obsolete structures and deleterious conditions, and undertaking state-of-the-art industry landscape, streetscape and signage programs; - Coordinating land assembly to provide sites for more modern redevelopment plans; and - Providing infrastructure that is adequate in relation to redevelopment plans. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 5 The area, on the whole, would not reasonably be anticipated to be redeveloped in a coordinated manner without the adoption of this Redevelopment Plan and Project. The Village has prepared the Redevelopment Plan and Project to utilize tax increment financing to address area needs and to meet the Village’s redevelopment goals and objectives. The adoption of this Redevelopment Plan and Project makes possible the implementation of a comprehensive program for the economic redevelopment of the RPA. By means of public investment, the Village will strengthen the RPA, thus setting the stage for attracting private capital for redevelopment. This, in turn, will lead to the retention, expansion and attraction of commercial, retail and mixed residential use development into the Village in general, and the RPA in particular. Pursuant to the Act, the RPA includes only those contiguous parcels of real property and improvements, thereon, substantially benefited by the redevelopment project. Also pursuant to the Act, the area is not less in the aggregate than 11⁄2 acres. Through this Redevelopment Plan and Project, the Village will serve as the central force for marshaling the assets and energies of the private sector for a unified cooperative public-private redevelopment effort. Ultimately, the implementation of the Redevelopment Plan and Project will benefit the Village and all the taxing districts, which encompass the RPA in the form of a stabilized and expanded tax base, the retention of existing businesses, and the creation of new businesses and employment opportunities within the Village, because of induced private sector investment within the area. B. Summary The Village, through legislative actions as required by the Act, finds: • That the RPA, as a whole, has not been subject to growth and development through investment by private enterprise; • That in order to promote and protect the health, safety, and welfare of the public, certain conditions that have adversely affected redevelopment within the RPA need to be addressed, and that redevelopment of the RPA must be undertaken; • To alleviate the adverse conditions, it is necessary to encourage private reinvestment and stabilize and enhance the tax base in the RPA for the benefit of the taxing districts through redevelopment of the RPA; • That public/private partnerships are determined to be necessary in order to achieve development goals; • That the Redevelopment Plan and Project conforms to the Village’s Comprehensive Plan (2005) as amended Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 6 • That without the development focus and resources provided for under the Act, and as set forth in this Plan, redevelopment and growth is not reasonably expected to be achieved; and • That the use of incremental tax revenues derived from the tax rates of various taxing districts in the RPA for the payment of redevelopment project costs is of benefit to the taxing districts because the taxing districts would not derive the benefits of an increased assessment base without addressing the coordination of redevelopment. It is further found, and certified by the Village, in connection with the process required for the adoption of this Plan pursuant to the Act, that the projected redevelopment of the RPA will not result in the displacement of ten (10) inhabited residential units or more, and that the RPA contains less than seventy-five (75) inhabited residential units. Therefore, this Plan does not include a Housing Impact Study as would otherwise be required. The redevelopment activities that will take place within the RPA will produce benefits that are reasonably distributed throughout the RPA. Redevelopment of the RPA area is tenable only if a portion of the improvements and other costs are funded by TIF. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 7 II. REDEVELOPMENT PROJECT AREA LEGAL DESCRIPTION The Redevelopment Project Area legal description is attached in Exhibit B. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 8 III. REDEVELOPMENT PROJECT AREA GOALS AND OBJECTIVES The following goals and objectives are presented for the RPA in accordance with the Village’s Comprehensive Plan, which is considered the Village’s comprehensive planning process, and other relevant planning efforts (any amendments thereto). The RPA, as redeveloped, is expected to achieve a balance of commercial redevelopment and residential growth that is responsive to market trends. A large, enclosed shopping mall, located along a key commercial corridor, will be adaptively re-positioned to thrive in the ever-evolving retail climate. It will be redeveloped in a manner consistent with current market development trends. Lacking specific direction in relation to market changes, redevelopment in the RPA is currently stalled. The RPA will provide better guidance for future development and improve coordination between the Village, developers, investors, and business owners. A. General Goals of the Village 1) Provide a coordinated, sensible framework for future community improvement, development, and redevelopment actions. 2) Achieve and maintain a high quality of life for those who call West Dundee home by moving forward with coordinated policies and new development directions. 3) Strive for a diversified economic base that serves local and regional residents with a range of business and jobs. 4) Create a well-defined attractive, and pedestrian-oriented commercial districts that serve the needs of local and regional residents and enhance the Village’s tax base 5) Preserve a regional commercial center that continues to be the economic engine for West Dundee, re-positioned with new uses and improved physical conditions 6) Transformation of the Spring Hill Mall area into a genuine regional destination. B. Specific Objectives for the RPA 1) Reposition and/or demo former retail anchor structures for new market viable uses 2) Encourage location of new retail/restaurant uses on periphery out-lots with street frontage. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 9 3) Develop a mix of new residential uses to serve a range of market segments and stages of life, with an emphasis on market-rate multi-family. 4) Ensure that any remaining structures are repositioned to attract market- viable/sustainable businesses. 5) Explore the potential for alternative uses such as civic and institutional and consider potential relocation of some public facilities from other locations in the Village. 6) Create a street network that breaks up large land masses into manageable lots to facilitate incremental development and pedestrian and cycling paths that link sites internally and to adjacent neighborhoods. 7) Explore the feasibility of incorporating the stormwater detention area on Route 72/Main Street into an open space amenity. 8) Work in partnership with Carpentersville to maximize the mutual benefit of the Spring Hill Mall area to both communities. 9) Explore the potential to acquire or develop a public-private partnership to assemble parcels to facilitate redevelopment. C. Redevelopment Objectives The purpose of the RPA designation will allow the Village to: 1) Assist in coordinating redevelopment activities within the RPA in order to provide a positive marketplace signal and to conform to Village planning efforts; 2) Reduce or eliminate the negative factors present within the area; 3) Accomplish redevelopment over a reasonable time period; 4) Provide for high quality public improvement projects within the RPA; and 5) Provide for an attractive overall appearance of the area. The implementation of the Redevelopment Plan and Project will serve to improve the overall quality of life within the RPA and contribute to the economic development of the Village as a whole. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 10 IV. EVIDENCE OF THE LACK OF DEVELOPMENT AND GROWTH WITHIN THE RPA AND ASSESSMENT OF FISCAL IMPACT ON AFFECTED TAXING DISTRICTS A. Evidence of the Lack of Development and Growth Within the RPA As documented in Exhibit C of this Plan, the RPA would qualify as a “conservation” area. Properties within the RPA would not likely experience coordinated redevelopment without the designation of the RPA. The proposed RPA exhibits various conditions which, if not addressed by the Village, would eventually worsen. For example, structures and site improvements within the RPA reflect obsolescence, excessive vacancies, deterioration, inadequate utilities, and decline lag in EAV. These various conditions discourage private sector investment in business enterprises or in redevelopment sites. B. Assessment of Fiscal Impact on Affected Taxing Districts It is anticipated that the implementation of this Redevelopment Plan and Project will have a minimal financial impact on most of the affected taxing districts. In fact, the action taken by the Village to stabilize and encourage growth of its tax base through the implementation of this Redevelopment Plan and Project is expected to have a positive impact on the affected taxing districts by arresting and avoiding potential declines in assessed valuations. Given that there is potential for new retail, commercial, and mixed-use development, the Village has made allowances in this Redevelopment Plan and Project to provide for distributions to school taxing districts and will follow the guidelines provided by the Act to compensate the school taxing districts at levels dictated by the actual increase in students caused by the redevelopment, as provided by the Act. To the extent any surplus exists, any resulting surplus Special Tax Allocation Funds will be proportionately shared with the various taxing districts, including the Village, based on their respective tax rates for a given year, after all TIF eligible costs either expended or incurred as an obligation by the Village have been duly accounted for through administration of the Special Tax Allocation Fund to be established by the Village as provided by the Act. The exception to this provision will be to the extent to which the Village utilizes TIF funding to assist in the redevelopment of residential units with the impact described above to the school district and library district. In such cases, the Village will provide funds to offset the costs incurred as prescribed by the Act. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 11 V. TIF QUALIFICATION FACTORS EXISTING IN THE REDEVELOPMENT PROJECT AREA A. Findings The RPA was studied to determine its qualifications under the Tax Increment Allocation Redevelopment Act (65 ILCS 5/Art. 11 Div. 74.4, the “TIF Act”). It was determined that the area, as a whole, qualifies as a TIF District under Illinois law based upon “conservation area” factors. Refer to the Qualification Report, (Exhibit C) which is attached as part of this Plan. B. Eligibility Survey The RPA was evaluated, from time to time, over a period from July 2021 through the date of this Redevelopment Plan and Project. Analysis was aided by certain reports and information obtained from the Village and from other sources, including Kane County and Dundee Township. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 12 VI. HOUSING IMPACT STUDY FINDINGS IN THE REDEVELOPMENT PROJECT AREA Findings The RPA was studied to determine if a housing impact study would need to be conducted pursuant to the TIF Act. The Village has found that the plan will not displace ten (10) or more residents and that the RPA contains less than seventy-five (75) inhabited residential units, thus a housing impact study is not required to be completed. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 13 VII. REDEVELOPMENT PROJECT A. Redevelopment Plan and Project Objectives The Village proposes to realize its goals and objectives of encouraging the redevelopment of the RPA and encouraging private investment through public finance techniques including, but not limited to, Tax Increment Financing: 1) By implementing a plan that provides for the retention and expansion of existing businesses and bolsters the attraction of users to redevelop existing or new structures, as well as vacant or underutilized parcels that are, or may become available, within the RPA. 2) By constructing public improvements which may include (if necessary): i. Street and sidewalk improvements (including new street construction, widening of current streets, and multi-use pedestrian and bicycle paths); ii. Utility improvements (including, but not limited to, water, storm water management, flood control and sanitary sewer projects consisting of construction and rehabilitation); iii. Signalization, traffic control, and lighting; iv. Off-street parking (structured and/or grade); v. Landscaping, streetscape, and beautification; and vi. Improve public facilities and institutional uses. 3) By entering into redevelopment agreements with developers for qualified redevelopment projects, including (but not limited to) the provision of an interest rate subsidy as allowed under the Act. 4) By providing for land assembly, site preparation, environmental remediation (if necessary), clearance, and demolition, including grading and excavation. 5) By the redevelopment of certain buildings or sites through necessary rehabilitation and improvement of structures. 6) By exploring and reviewing job training programs in coordination with any Village, federal, state, and county programs. 7) By entering into agreements with other public bodies for the development or construction of public facilities and infrastructure. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 14 B. Redevelopment Activities Pursuant to the foregoing objectives, the Village will implement a coordinated program of actions, including, but not limited to, site preparation, clearance, acquisition, demolition, construction of public infrastructure and related public improvements, and rehabilitation of existing structures and improvements, if necessary. Site Preparation, Clearance, and Demolition Property within the RPA may be acquired and improved using site clearance, excavation, environmental remediation or demolition prior to redevelopment. The land may also be graded and cleared prior to redevelopment. Land Assembly and Relocation Certain properties or interests in properties in the RPA may be acquired or purchased by private entities. These properties may be assembled and reconfigured into appropriate redevelopment sites. The Village may facilitate private acquisition through reimbursement of acquisition and related costs through the write-down of acquisition costs. Relocation activities may also be undertaken by the Village. Public Improvements The Village may provide public improvements in the RPA to enhance the immediate area and support the Redevelopment Plan and Project. Appropriate public improvements may include, but are not limited to: • Improvements and/or construction of public utilities including the improvement of water mains as well as flood control and sanitary and storm sewer systems; • Beautification, identification makers, landscaping, lighting, and signage of public rights-of-way; and • Construction of new (or rehabilitation of existing) public facilities to allow for the redevelopment of the existing sites for new mixed use or retail/commercial uses, including parking facilities. Rehabilitation The Village may provide for the rehabilitation of certain structures within the RPA in order to provide for the redevelopment of the area and conformance to Village code provisions. Improvements may include exterior and facade related work as well as interior related work. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 15 Interest Rate Write-Down The Village may enter into agreements with owners/developers whereby a portion of the interest cost of a construction, renovation or rehabilitation project is paid for on an annual basis out of the Special Tax Allocation fund of the RPA, in accordance with the Act. Job Training The Village may assist facilities and enterprises located within the RPA in obtaining job training assistance. Job training and retraining programs currently available from or through other governments include, but are not limited to: • Federal programs; • State of Illinois programs; • Applicable local vocational educational programs, including community college sponsored programs; and • Other federal, state, county or non-profit programs that are currently available or will be developed and initiated over time. School District Tuition Costs The Village will provide for the payment of eligible tuition costs as provided for in the TIF Act. C. General Land Use Plan Existing land uses generally consists of mixed residential uses and commercial/retail uses. Future land use would include mixed use, residential, retail/commercial, civic and institutional uses. Existing and future land uses are shown in Exhibits D and E attached hereto and made a part of this Plan. D. Additional Design and Control Standards for Development in the Village The appropriate design controls, as set forth in the Village’s Comprehensive Plan, Zoning Ordinance, or other relevant codes shall apply to the RPA. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 16 E. Estimated Redevelopment Project Costs “Redevelopment Project Costs” mean and include the sum total of all reasonable or necessary costs incurred or estimated to be incurred, as provided in the Act, and any such costs incidental to the Redevelopment Plan and Project. Private investments, which supplement Redevelopment Project Costs, are expected to substantially exceed the Redevelopment Project Costs. Eligible costs permitted under the Act which may be pertinent to this Redevelopment Plan and Project include: 1. Costs of studies and surveys, development of plans and specifications, implementation and administration of the redevelopment plan including, but not limited to, staff and professional service costs for architectural, engineering, legal, marketing, financial, planning, or other special services, provided, however, that no charges for professional services may be based on a percentage of the tax increment collected; except that after November 1, 1999, no contracts for professional services, excluding architectural and engineering services, may be entered into if the terms of the contract extend beyond a period of three (3) years. In addition, “redevelopment project costs” shall not include lobbying expenses; 1.1 After July 1,1999, annual administrative costs shall not include general overhead or administrative costs of the municipality that would still have been incurred by the municipality if the municipality had not designated a redevelopment area or approved a redevelopment plan; 2. The cost of marketing sites within the redevelopment project area to prospective businesses, developers, and investors; 3. Property assembly costs, including, but not limited to, acquisition of land and other property, real or personal, or rights or interest therein, demolition of buildings, site preparation, site improvements that serve as an engineered barrier addressing ground level or below ground environmental contamination, including, but not limited to, parking lots and other concrete or asphalt barriers, and the clearing and grading of land; 4. Costs of rehabilitation, reconstruction or repair or remodeling of existing public or private buildings, fixtures and leasehold improvements; and the costs of replacing an existing public building if pursuant to the implementation of a redevelopment project the existing public building is to be demolished to use the site for private investment or devoted to a different use requiring private investment; including any direct or indirect costs relating to Green Globes or LEED certified construction elements or construction elements with an equivalent certification; 5. Costs of the construction of public works or improvements, including any direct or indirect costs relating to Green Globes or LEED certified construction elements or construction elements with an equivalent certification, except that on and after Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 17 November, 1, 1999 redevelopment project costs shall not include the cost of constructing a new municipal public building principally used to provide offices, storage space, or conference facilities or vehicle storage, maintenance, or repair for administrative, public safety, or public works personnel and that is not intended to replace an existing public building as provided under paragraph (3) of subsection (q) of Section 11-74.4-3 unless either (i) the construction of the new municipal building implements a redevelopment project that was included in a redevelopment plan that was adopted by the municipality prior to the effective date of this amendatory Act of the 91st General Assembly or (ii) the municipality makes a reasonable determination in the redevelopment plan, supported by information that provided that basis for that determination, that the new municipal building is required to meet an increase in the need for public safety purposes anticipated to result from the implementation of the redevelopment plan; 6. Costs of job training and retraining projects including the costs of ‘welfare to work” programs implemented by businesses located within the redevelopment project area; 7. Financing costs, including but not limited to all necessary and incidental expenses related to the issuance of obligations and which may include payment of interest on any obligations issued pursuant to the Act accruing during the estimated period of construction of any redevelopment project for which such obligations are issued and for not exceeding 36 months thereafter and including reasonable reserves related thereto; 8. To the extent the municipality by written agreement accepts and approves the same, all or a portion of a taxing district’s capital (and additional student tuition) costs resulting from the redevelopment project necessarily incurred or to be incurred within a taxing district in furtherance of the objectives of the redevelopment plan and project; 9. For redevelopment project areas designated (or redevelopment project areas amended to add or increase the number of tax-increment-financing assisted housing units) on or after November 1, 1999 an elementary, secondary, or unit school district’s increased costs attributable to assisted housing units located within the redevelopment project area for which the developer or redeveloper receives financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the assisted housing sites necessary for the completion of that housing as authorized by the Act, and which costs shall be paid by the municipality from the Special Tax Allocation Fund when the tax increment revenue is received as a result of the assisted housing units and shall be calculated annually as follows: a) for foundation districts, excluding any school district in a municipality with a population in excess of 1,000,000, by multiplying the district’s increase in attendance resulting from the net increase in new students enrolled in that Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 18 school district who reside in housing units within the redevelopment project area that have received financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the housing sites necessary for the completion of that housing as authorized by the Act since the designation of the redevelopment project area by the most recently available per capita tuition cost as defined in Section 10-20.12a of the School Code less any increase in general State aid as defined in Section 18- 8.05 of the School Code attributable to these added new students subject to the following annual limitations: (i) for unit school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 25% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act; (ii) for elementary school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 17% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act; and (iii) for secondary school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 8% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act. b) For alternate method districts, flat grant districts, and foundation districts with a district average 1995-96 Per Capita Tuition charge equal to or more than $5,900, excluding any school district with a population in excess of 1,000,000, by multiplying the district’s increase in attendance resulting from the net increase in new students enrolled in that school district who reside in housing units within the redevelopment project area that have received financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the housing sites necessary for the completion of that housing as authorized by the Act since the designation of the redevelopment project area by the most recently available per capita tuition cost as defined in Section 10-20.12a of the School Code less any increase in general state aid as defined in Section 18-8.05 of the School Code attributable to these added new students subject to the following annual limitations: (i) for unit school district, no more than 40% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act; Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 19 (ii) for elementary school district, no more than 27% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act; and (iii) for secondary school districts, no more than 13% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under the Act. c) Any school district in a municipality with a population of 1,000,000, additional restrictions apply. Any school district seeking payment shall, after July 1 and before September 30 of each year, provide the municipality with reasonable evidence to support its claim for reimbursement before the municipality shall be required to approve or make the payment to the school district. If the school district fails to provide the information during this period in any year, it shall forfeit any claim to reimbursement for that year. School districts may adopt a resolution waiving the right to all or a portion of the reimbursement otherwise required by the Act. By acceptance of this reimbursement the school district waives the right to directly or indirectly set aside, modify, or contest in any manner the establishment of the redevelopment project area or projects. 10. For redevelopment project areas designated (or redevelopment project areas amended to add or increase the number of tax-increment-financing assisted housing units) on or after January 1, 2005, a public library district’s increased costs attributable to assisted housing units located within the redevelopment project area for which the developer or redeveloper receives financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the assisted housing sites necessary for the completion of that housing as authorized by this Act shall be paid to the library district by the municipality from the Special Tax Allocation Fund when the tax increment revenue is received as a result of the assisted housing units. This paragraph applies only if (i) the library is located in a county that is subject to the Property Tax Extension Limitation Law or (ii) the library district is not located in a county that is subject to the Property Tax Extension Limitation Law but the district is prohibited by any other law from increasing its tax levy rate without a prior voter referendum. The amount paid to a library district under this paragraph shall be calculated by multiplying (i) the net increase in the number of persons eligible to obtain a library card in that district who reside in housing units within the redevelopment project area that have received financial assistance through an agreement with the Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 20 municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the housing sites necessary for the completion of that housing as authorized by this Act since the designation of the redevelopment project area by (ii) the per-patron cost of providing library services so long as it does not exceed $120. The per-patron cost shall be the Total Operating Expenditures Per Capita as stated in the most recent Illinois Public Library Statistics produced by the Library Research Center at the University of Illinois. The municipality may deduct from the amount that it must pay to a library district under this paragraph any amount that it has voluntarily paid to the library district from the tax increment revenue. The amount paid to a library district under this paragraph shall be no more than 2% of the amount produced by the assisted housing units and deposited into the Special Allocation Fund. A library district is not eligible for any payment under this paragraph unless the library district has experienced an increase in the number of patrons from the municipality that created the tax-increment-financing district since the designation of the redevelopment project area. Any library district seeking payment under this paragraph shall, after July 1 and before September 30 of each year, provide the municipality with convincing evidence to support its claim for reimbursement before the municipality shall be required to approve or make the payment to the library district. If the library district fails to provide the information during this period in any year, it shall forfeit any claim to reimbursement for that year. Library districts may adopt a resolution waiving the right to all or a portion of the reimbursement otherwise required by this paragraph. By acceptance of such reimbursement, the library district shall forfeit any right to directly or indirectly set aside, modify, or contest in any manner whatsoever the establishment of the redevelopment project area or projects; 11. Relocation costs to the extent that the Village determines that relocation costs shall be paid or is required to make payment of relocation costs by federal or state law; 12. Payment in lieu of taxes; 13. Costs of job training, advanced vocational education or career education, including but not limited to courses in occupational, semi-technical or technical fields leading directly to employment, incurred by one or more taxing districts, provided that such costs (i) are related to the establishment and maintenance of additional job training, advanced vocational education or career education programs for persons employed or to be employed by employers located in the redevelopment project area; and (ii) when incurred by a taxing district or taxing districts other than the Village, are set forth in a written agreement by or among the Village and the taxing district or taxing districts, which agreement describes the program to be undertaken, including but not limited to the number of employees to be trained, a description of the training and services to be provided, the number and type of positions available or to be available, itemized costs of the program and sources of funds to pay for the same, Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 21 and the term of agreement. Such costs include, specifically, the payment by community college districts of costs pursuant to Section 3-37, 3-38, 3-40 and 3- 40.1 of the Public Community College Act and by school districts of costs pursuant to Section 10-22.20a and 10-23.3a of the School Code; 14. Interest costs incurred by a redeveloper related to the construction, renovation or rehabilitation of a redevelopment project provided that: a) such costs are to be paid directly from the Special Tax Allocation Fund established pursuant to the Act; b) such payments in any one-year may not exceed 30% of the annual interest costs incurred by the developer with regard to the redevelopment project during that year; c) if there are not sufficient funds available in the Special Tax Allocation Fund to make the payment pursuant to this paragraph then the amounts so due shall accrue and be payable when sufficient funds are available in the Special Tax Allocation Fund; d) the total of such interest payments paid pursuant to the Act may not exceed 30% of the total (i) cost paid or incurred by the redeveloper for the redevelopment project plus (ii) redevelopment project costs excluding any property assembly costs and any relocation costs incurred by a municipality pursuant to the Act; e) the cost limits set forth in subparagraphs (b) and (d) shall be modified for the financing of rehabilitated or new housing units for low-income households and very low-income households, as defined in Section 3 of the Illinois Affordable Housing Act and the percentage of 75% shall be substituted for 30% in subparagraphs (b) and (d); f) Instead of the eligible costs provided by subparagraphs (b) and (d), as modified by this subparagraph, and notwithstanding any other provisions of the Act to the contrary, the municipality may pay from tax increment revenues up to 50% of the cost of construction of new housing units to be occupied by low-income households and very low-income households as defined in Section 3 of the Illinois Affordable Housing Act. The cost of construction of those units may be derived from the proceeds of bonds issued by the municipality under the Act or other constitutional or statutory authority or from other sources of municipal revenue that may be reimbursed from tax increment revenues or the proceeds of bonds issued to finance the construction of that housing. The eligible costs provided under this subparagraph (f) shall be an eligible cost for the construction, renovation, and rehabilitation of all low and very low-income housing units, Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 22 as defined in Section 3 of the Illinois Affordable Housing Act, within the redevelopment project area. If the low and very low-income units are part of a residential redevelopment project that includes units not affordable to low and very low-income households, only the low and very low-income units shall be eligible for benefits under subparagraph (f). The standards for maintaining the occupancy by low-income households and very low-income households, as defined in Section 3 of the Illinois Affordable Housing Act, of those units constructed with eligible costs made available under the provisions of this subparagraph (f) shall be established by guidelines adopted by the municipality. The responsibility for annually documenting the initial occupancy of the units by low-income households and very low-income households, as defined in Section 3 of the Illinois Affordable Housing Act, shall be that of the then current owner of the property. For ownership units, the guidelines will provide, at a minimum, for a reasonable recapture of funds, or other appropriate methods designed to preserve the original affordability of the ownership units. For rental units, the guidelines will provide, at a minimum, for the affordability of rent to low and very low-income households. As units become available, they shall be rented to income-eligible tenants. The municipality may modify these guidelines from time to time; the guidelines, however, shall be in effect for as long as tax increment revenue is being used to pay for costs associated with the units or for the retirement of bonds issued to finance the units or for the life of the redevelopment project area, whichever is later; 15. If the redevelopment project area is located within a municipality with a population of more than 100,000, the cost of day care services for children of employees from low-income families working for businesses located within the redevelopment project area and all or a portion of the cost of operation of day care centers established by redevelopment project area businesses to serve employees from low- income families working in businesses located in the redevelopment project area. For the purposes of this paragraph, “low-income families” means families whose annual income does not exceed 80% of the municipal, county, or regional median income, adjusted for family size, as the annual income and municipal, county or regional median income are determined from time to time by the United States Department of Housing and Urban Development. 16. Unless explicitly stated herein the costs of construction of new privately owned buildings shall not be an eligible redevelopment project cost; 17. After November 1, 1999, none of the redevelopment project costs enumerated in this subsection shall be eligible redevelopment projects if those costs would provide direct financial support to a retail entity initiating operations in the redevelopment project area while terminating operations at another Illinois location within 10 miles of the redevelopment project area but outside the boundaries of the redevelopment Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 23 project area municipality. For purposes of this paragraph, termination means a closing of a retail operation that is directly related to the opening of the same operation or like retail entity owned or operated by more than 50% of the original ownership in a redevelopment project area, but it does not mean closing an operation for reasons beyond the control of the retail entity, as documented by the retail entity, subject to a reasonable finding by the municipality that the current location contained inadequate space, has become economically obsolete, or was no longer a viable location for the retailer or serviceman; 18. No cost shall be a redevelopment project cost in a redevelopment project area if used to demolish, remove, or substantially modify a historic resource, after August 26, 2008, unless no prudent and feasible alternative exists. “Historic Resource” means (i) a place or structure that is included or eligible for inclusion on the National Register of Historic Places or (ii) a contributing structure in a district on the National Register of Historic Places. This restriction does not apply to a place or structure for which demolition, removal, or modification is subject to review by the preservation agency of a Certified Local Government designated as such by the National Park Service of the United States Department of the Interior. If a special service area has been established pursuant to the Special Service Area Tax Act or Special Service Area Tax Law, then any tax incremental revenues derived from the tax imposed pursuant to Special Service Area Tax Act or Special Service Area Tax Law may be used within the redevelopment project area for the purposes permitted by that Act or Law as well as the purposes permitted by the TIF Act. Estimated costs are shown on the next page. Adjustments to these cost items may be made without amendment to the Redevelopment Plan and Project. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 24 VILLAGE OF WEST DUNDEE SPRING HILL MALL AREA TIF 5 REDEVELOPMENT PROJECT ESTIMATED PROJECT COSTS Program Actions/Improvements Estimated Costs (A) 1. Land Acquisition, Assembly Costs $ 3,500,000 2. Relocation Costs $ 1,000,000 3. Demolition, Site Preparation, Environmental Cleanup and Related Costs $25,000,000 4. Infrastructure Improvements $20,000,000 5. Public facilities and improvements $ 8,000,000 6. Rehabilitation Costs $ 8,000,000 7. Interest Costs Pursuant to the Act $ 3,000,000 8. Planning, Legal, Engineering, Administrative, Marketing and Other Professional Service Costs $ 2,000,000 9. Job Training $ 250,000 10. Statutory School District Payments $ 2,000,000 TOTAL ESTIMATED PROJECT COSTS $72,750,000 (A) All project cost estimates are in year 2022 dollars. In addition to the above stated costs, any bonds issued to finance a phase of the Project may include an amount sufficient to pay customary and reasonable charges associated with the issuance of such obligations as well as to provide for annual interest costs, capitalized interest and reasonably required reserves. Adjustments to the estimated line-item costs above are expected. Each individual project cost will be reevaluated considering the projected private development and resulting tax revenues as it is considered for public financing under the provisions of the Act. The line- item amounts set forth above are not intended to place a not to exceed limit on the described expenditures as the specific items listed above are not intended to preclude payment of other eligible redevelopment project costs in connection with the redevelopment of the RPA, provided the amount of payments for the Total Estimated Project Costs shall not exceed the combined overall budget amount shown above. Adjustments may be made in line items within the total, either increasing or decreasing line-item costs for redevelopment. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 25 Pursuant to the Act, the Village may utilize net incremental property tax revenues received from other existing or future contiguous redevelopment project areas to pay eligible redevelopment project costs or obligations issued to pay such costs in the proposed RPA, and vice versa. F. Sources of Funds to Pay Redevelopment Project Costs Eligible Under Illinois TIF Act Funds necessary to pay for public improvements and other project costs eligible under the Act are to be derived principally from property tax increment revenues, proceeds from municipal obligations to be retired primarily with tax increment revenues and interest earned on resources available but not immediately needed for the Redevelopment Plan and Project. “Redevelopment Project Costs” specifically contemplate those eligible costs set forth in the Act and do not contemplate the preponderance of the costs to redevelop the area. The majority of development costs will be privately financed, and TIF or other public sources are to be used, subject to approval by the Village’s corporate authorities, only to leverage and commit private redevelopment activity. The tax increment revenues, which will be used to pay debt service on the municipal obligations, if any, and to directly pay redevelopment project costs, shall be the incremental increase in property taxes attributable to the increase in the equalized assessed value of each taxable lot, block, tract or parcel of real property in the RPA over and above the initial equalized assessed value of each such lot, block, tract or parcel in the RPA in the 2021 tax year for the RPA. Among the other sources of funds which may be used to pay for redevelopment project costs and debt service on municipal obligations issued to finance project costs are the following: certain local sales or utility taxes, special service area taxes, the proceeds of property sales, certain land lease payments, certain Motor Fuel Tax revenues, certain state and federal grants or loans, certain investment income, and such other sources of funds and revenues as the Village may from time to time deem appropriate. The Redevelopment Project Area would not reasonably be expected to be developed in a coordinated manner without the use of the incremental revenues provided by the Act. The Village may also direct incremental revenues from the Redevelopment Project Area to any existing or future contiguous redevelopment project areas for redevelopment activities in conformance with the provisions of the Act and it may also receive incremental revenues from any existing or future contiguous redevelopment project areas in order to further the redevelopment activities described in this Plan. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 26 G. Nature and Term of Obligations to be Issued The Village may issue obligations secured by the Special Tax Allocation Fund established for the Redevelopment Plan and Project Area pursuant to the Act or such other funds as are available to the Village by virtue of its home rule powers pursuant to the Illinois State Constitution. Any and/or all obligations issued by the Village pursuant to this Redevelopment Plan and Project and the Act shall be retired not more than twenty-three (23) years after the year of adoption of the ordinance approving the Redevelopment Project Area. However, the final maturity date of any obligations issued pursuant to the Act may not be later than twenty (20) years from their respective date of issuance. One or more series of obligations may be issued from time to time in order to implement this Redevelopment Plan and Project. The total principal and interest payable in any year on all obligations shall not exceed the amount available in that year or projected to be available in that year, may be payable from tax increment revenues and from bond sinking funds, capitalized interest, debt service reserve funds, and all other sources of funds as may be provided by ordinance. Those revenues not required for principal and interest payments, for required reserves, for bond sinking funds, for redevelopment project costs, for early retirement of outstanding securities, and to facilitate the economical issuance of additional bonds necessary to accomplish the Redevelopment Plan and Project, may be declared surplus and shall then become available for distribution annually to taxing districts overlapping the RPA in the manner provided by the Act. Such securities may be issued on either a taxable or tax-exempt basis, as general obligation or revenue bonds, with either fixed rate or floating interest rates; with or without capitalized interest; with or without deferred principal retirement; with or without interest rate limits except as limited by law; and with or without redemption provisions, and on such other terms, all as the Village may determine. H. Most Recent Equalized Assessed Valuation (EAV) of Properties in the Redevelopment Project Area The most recent estimate of equalized assessed valuation (EAV) for tax year 2021 of the property within the RPA is approximately $16,153,602. 1 I. Anticipated Equalized Assessed Valuation (EAV) Upon completion of the anticipated private development of the Spring Hill Mall Area TIF 5 Redevelopment Project Area over a twenty-three (23) year period, it is estimated that the equalized assessed valuation (EAV) of the property within the RPA will be within a range of approximately $125,000,000 to $150,000,000. 1 Based on 2021 tax bills issued by Kane County Treasurer. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 27 VIII. DESCRIPTION AND SCHEDULING OF REDEVELOPMENT PROJECT A. Redevelopment Project An implementation strategy will be employed with full consideration given to the availability of both public and private funding. It is anticipated that a phased redevelopment will be undertaken. The Redevelopment Project will begin as soon as the private entities have obtained financing and other necessary approvals for appropriate projects. Depending upon the scope of the development as well as the actual uses, the following activities may be included in each phase: Land Assembly: Certain properties in the RPA may be acquired and assembled into an appropriate redevelopment site. Demolition and Site Preparation: The existing improvements located within the RPA may have to be reconfigured or prepared to accommodate new uses or expansion plans. Demolition of certain structures and grading of certain parcels may be necessary for future projects. Additionally, the redevelopment plan contemplates site preparation, or other requirements necessary to prepare the site for desired redevelopment projects. Rehabilitation: The Village may assist in the rehabilitation of private or public facilities, buildings or site improvements located within the RPA. Landscaping/Buffering/Streetscaping: The Village may fund certain landscaping projects, which serve to beautify public properties or rights-of-way and provide buffering between land uses. Water, Sanitary Sewer, Storm Sewer and Other Utility Improvements: Certain public and private utilities may be extended or re-routed to serve or accommodate the new development. Upgrading of existing utilities may be undertaken. The provision of necessary detention or retention ponds may also be undertaken by the Village. Public and private utility services may also be provided or relocated in order to accommodate the renovation or expansion of buildings. Public Infrastructure/Facility Improvements: Widening of existing road improvements and/or vacation of roads may be undertaken by the Village. Certain secondary streets/roads may be extended or constructed. Related curb, gutter, and paving improvements could also be constructed as needed. Public facilities including parking may be constructed that would be available to the general public. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 28 Traffic Control/Signalization: Traffic control or signalization improvements that improve access to the RPA and enhance its redevelopment may be constructed. Public Safety Related Infrastructure: Certain public safety improvements including, but not limited to, public signage, public facilities, and streetlights may be constructed or implemented. Interest Costs Coverage: The Village may fund certain interest costs incurred by a developer for construction, renovation or rehabilitation of a redevelopment project. Such funding would be paid for out of annual tax increment revenue generated from the RPA as permitted by the Act. Professional Services: The Village may fund necessary planning, legal, engineering, administrative and financing costs during project implementation. The Village may reimburse itself from annual tax increment revenue if available. Tuition Payments to School and Library Districts: The Village may fund payments to the school district pursuant to the provisions of the Act. B. Commitment to Fair Employment Practices and Affirmative Action As part of any Redevelopment Agreement entered into by the Village and any private developers, both will agree to establish and implement an honorable, progressive, and goal- oriented affirmative action program that serves appropriate sectors of the Village. The program will conform to the most recent Village policies and plans and will meet Village standards for any applicable prevailing wage rate as ascertained by the Illinois Department of Labor to all employees of any private developer. All entities involved in any Redevelopment Agreement will be responsible for conformance with the policy that put in to place. With respect to the public/private development’s internal operations, both entities will pursue employment practices, which provide equal opportunity to all people regardless of race, color, religion, sex, age, marital status, handicapped status, nation of origin, sexual preference, creed, or ancestry. These nondiscriminatory practices will apply to all areas of employment, including: hiring, upgrading and promotions, terminations, compensation, benefit programs and education opportunities. All those involved with employment activities will be responsible for conformance with this policy and the compliance requirements of applicable state and federal regulations. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 29 The Village and private developers will adopt a policy of equal employment opportunity and will include or require the inclusion of this statement in all contracts and subcontracts at any level. Additionally, any public/private entities will seek to ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites, and in all facilities at which all employees are assigned to work. It shall be specifically ensured that all on-site supervisory personnel are aware of and carry out the obligation to maintain such a working environment, with specific attention to minority and/or female individuals. Finally, the entities will utilize affirmative action to ensure that business opportunities are provided and that job applicants are employed and treated in a nondiscriminatory manner. Underlying this policy is the recognition by the entities that successful affirmative action programs are important to the continued growth and vitality of the community. C. Completion of Redevelopment Project and Retirement of Obligations to Finance Redevelopment costs This Redevelopment Project and retirement of all obligations to finance redevelopment costs will be completed within twenty-three (23) calendar years after the year of adoption of an ordinance designating the RPA. The actual date for such completion and retirement of obligations shall not be later than December 31 of the year in which the payment to the municipal treasurer pursuant to the Act is to be made with respect to ad valorem taxes levied in the twenty-third calendar year after the year of the initial adoption of the ordinance approving the RPA. Village of West Dundee Spring Hill Mall Area TIF 5 Redevelopment Plan and Project 30 IX. PROVISIONS FOR AMENDING THE TAX INCREMENT REDEVELOPMENT PLAN AND PROJECT This Redevelopment Plan and Project may be amended pursuant to the provisions of the Act. EXHIBIT A BOUNDARY MAP REVISED: 10-13-2022 19 8.2 1 A C. + /- SP RIN G HI LL M AL L AR EA T IF VILLAGE OF WEST DUNDEE, ILLINOIS VILLAGE OF WEST DUNDEE JRM AJK KJR 12-08-2021 CALC. DWN. CHKD. SCALE: DATE: SHEET OF Rosemont, Illinois 60018 (847) 823-0500 9575 West Higgins Road, Suite 600 ENGINEERING, LTD. IN PREPARED FOR 1 1 1"=300' 210616 PROJECT NO. DRAWING NO. TIF210616A S:\WESTDUNDEE\210616\SURVEY\TIF210616A.SUR SCALE IN FEET 0300 300 POINT OF BEGINNING SPRING HILL MALL AREA TIF 5 SPRING HILL MALL AREA TIF 5 EXHIBIT B LEGAL DESCRIPTION LEGAL DESCRIPTION (Spring Hill Mall Area TIF 5 – West Dundee): THAT PART OF THE EAST HALF OF SECTION 21, THE WEST HALF OF SECTION 22 AND THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 27 IN TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN IN KANE COUNTY, ILLINOIS, BEING DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF LOT 3 IN SPRING HILL PLAZA SUBDIVISION, AS RECORDED DECEMBER 7, 1993 AS DOCUMENT NO. 93K98062, SAID SOUTHWEST CORNER ALSO BEING A POINT ON THE EAST RIGHT-OF-WAY LINE OF LOCUST DRIVE; THENCE NORTH ALONG SAID EAST RIGHT-OF-WAY LINE OF LOCUST DRIVE TO A POINT OF INTERSECTION WITH THE SOUTHEASTERLY EXTENSION OF THE SOUTHWESTERLY RIGHT-OF-WAY LINE OF STATE ROUTE 72 (AKA WEST MAIN STREET); THENCE NORTHWESTERLY ALONG SAID SOUTHWESTERLY RIGHT-OF-WAY LINE OF WEST MAIN STREET TO A POINT OF INTERSECTION WITH THE SOUTHERLY EXTENSION OF THE WEST LINE OF SPRING HILL WEST SUBDIVISION, AS RECORDED DECEMBER 10, 1986 AS DOCUMENT NO. 1811460; THENCE NORTH ALONG SAID SOUTHERLY EXTENSION AND THE WEST LINE OF SPRING HILL WEST SUBDIVISION TO THE NORTHEAST CORNER OF TARTANS GLEN SUBDIVISION, AS RECORDED FEBRUARY 4, 1988 AS DOCUMENT NUMBER 1892122; THENCE WEST ALONG THE NORTH LINE OF SAID TARTANS GLEN SUBDIVISION TO THE SOUTHEAST CORNER OF LOT 2 IN HILL SUBDIVISION UNIT NO. 2, AS RECORDED JUNE 16, 1989 AS DOCUMENT NUMBER 1979385; THENCE NORTHERLY AND NORTHWESTERLY ALONG THE EASTERLY LINE OF SAID LOT 2 IN HILL SUBDIVISION UNIT NO. 2 TO THE NORTHEAST CORNER THEREOF, SAID NORTHEAST CORNER ALSO BEING THE SOUTHEAST CORNER OF LOT 3 IN SAID HILL SUBDIVISION UNIT NO. 2; THENCE NORTHWESTERLY AND WESTERLY ALONG THE EASTERLY AND NORTHERLY LINES OF SAID LOT 3 AND THE WESTERLY EXTENSION THEREOF TO A POINT ON THE WESTERLY RIGHT-OF-WAY LINE OF TARTAN DRIVE; THENCE NORTHERLY ALONG SAID WESTERLY RIGHT-OF-WAY LINE OF TARTAN DRIVE TO A POINT ON THE SOUTHERLY RIGHT-OF-WAY LINE OF HUNTLEY ROAD; THENCE EASTERLY ALONG SAID SOUTHERLY RIGHT-OF-WAY LINE OF HUNTLEY ROAD TO A POINT ON SAID WEST LINE OF SPRING HILL WEST SUBDIVISION; THENCE NORTH ALONG THE NORTHERLY EXTENSION OF SAID WEST LINE OF SPRING HILL WEST SUBDIVISION TO A POINT ON THE NORTH RIGHT-OF-WAY LINE OF SAID HUNTLEY ROAD; THENCE EASTERLY ALONG SAID NORTH RIGHT-OF-WAY LINE OF HUNTLEY ROAD TO A POINT ON THE EAST LINE OF ALEXIS COURT SUBDIVISION, AS RECORDED JUNE 10, 2002 AS DOCUMENT NUMBER 2002K072484; THENCE SOUTH ALONG THE SOUTHERLY EXTENSION OF SAID EAST LINE OF ALEXIS COURT SUBDIVISION TO A POINT ON THE CENTERLINE OF SAID HUNTLEY ROAD; THENCE EAST ALONG SAID CENTERLINE OF HUNTLEY ROAD TO A POINT ON THE WEST LINE OF SPRING HILL NORTH UNIT 1 SUBDIVISION, AS RECORDED SEPTEMBER 3, 1980 AS DOCUMENT NUMBER 1552839; THENCE SOUTH ALONG SAID WEST LINE OF SPRING HILL NORTH UNIT 1 SUBDIVISION AND THE SOUTHERLY EXTENSION THEREOF TO A POINT ON THE SOUTH LINE OF THE NORTH 25 FEET OF THE SOUTHEAST QUARTER OF SAID SECTION 21, SAID SOUTH LINE BEING DESCRIBED IN A PLAT OF ANNEXATION, AS RECORDED SEPTEMBER 7, 1978 AS DOCUMENT NUMBER 1473937, SAID LINE ALSO BEING REFERENCED AS THE CARPENTERSVILLE MUNICIPAL BOUNDARY LINE; THENCE EASTERLY ALONG SAID SOUTH LINE OF THE NORTH 25 FEET OF THE SOUTHEAST QUARTER OF SAID SECTION 21 AND THE SOUTH LINE OF THE NORTH 25 FEET OF THE SOUTHWEST QUARTER OF SAID SECTION 22 TO A POINT ON A LINE WHICH LIES 250.00 FEET SOUTHWESTERLY AND PARALLEL TO THE CENTERLINE OF STATE ROUTE 31 (AKA WESTERN AVENUE); THENCE NORTHWESTERLY ALONG SAID LINE WHICH LIES 250.00 FEET SOUTHWESTERLY AND PARALLEL TO THE CENTERLINE OF STATE ROUTE 31 TO A POINT ON THE NORTH LINE OF SAID SOUTHWEST QUARTER OF SECTION 22; THENCE EAST ALONG SAID NORTH LINE OF THE SOUTHWEST QUARTER OF SECTION 22 TO A POINT ON THE NORTHEASTERLY RIGHT-OF-WAY LINE OF SAID STATE ROUTE 31; THENCE SOUTHEASTERLY ALONG SAID NORTHEASTERLY RIGHT-OF-WAY LINE OF SAID STATE ROUTE 31 TO A POINT OF INTERSECTION WITH THE NORTHEASTERLY EXTENSION OF THE NORTHWESTERLY LINE OF LOT 4 IN SPRING HILL SOUTHEAST SUBDIVISION, AS RECORDED OCTOBER 22, 1981 AS DOCUMENT NUMBER 1591179; THENCE SOUTHWESTERLY ALONG SAID NORTHEASTELY EXTENSION AND THE NORTHWESTERLY LINE OF LOT 4 IN SPRING HILL SOUTHEAST SUBDIVISION TO THE NORTHWESTERLY CORNER THEREOF; THENCE SOUTHWESTERLY ALONG THE WEST LINE OF SAID LOT 4 TO THE SOUTHWEST CORNER THEREOF; THENCE SOUTHEASTERLY ALONG THE SOUTHWESTERLY LINE OF SAID LOT 4 TO THE MOST SOUTHERLY CORNER OF SAID LOT 4, SAID MOST SOUTHERLY CORNER ALSO BEING THE NORTHWEST CORNER OF LOT 3 IN SPRING HILL FASHION CORNER SUBDIVISION, AS RECORDED NOVEMBER 21, 1984 AS DOCUMENT NUMBER 1702859; THENCE SOUTHEASTERLY ALONG THE WESTERLY LINE OF SAID LOT 3 TO THE SOUTHWEST CORNER THEREOF, SAID SOUTHWEST CORNER ALSO BEING A POINT ON THE NORTHWESTERLY LINE OF LOT 2 IN SAID SPRING HILL FASHION CORNER SUBDIVISION; THENCE SOUTWESTESTERLY AND SOUTHERLY ALONG THE WESTERLY LINE OF SAID LOT 2 TO THE SOUTHWEST CORNER THEREOF, SAID SOUTHWEST CORNER ALSO BEING A POINT ON THE NORTH LINE OF LOT 1 IN KENTUCKY FRIED CHICKEN SUBDIVISION, AS RECORDED AUGUST 20, 2001 AS DOCUMENT NUMBER 2001K086188; THENCE WESTERLY ALONG THE NORTH LINE OF SAID LOT 1 IN KENTUCKY FRIED CHICKEN SUBDIVISION TO THE NORTHWEST CORNER THEREOF; THENCE SOUTHERLY ALONG THE WEST LINE OF SAID LOT 1 IN KENTUCKY FRIED CHICKEN SUBDIVISION AND THE SOUTHERLY EXTENSION THEREOF TO A POINT ON THE SOUTHERLY RIGHT-OF-WAY LINE OF AFORESAID STATE ROUTE 72 (AKA WEST MAIN STREET); THENCE NORTHWESTERLY ALONG SAID SOUTHERLY RIGHT-OF-WAY LINE OF STATE ROUTE 72 (AKA WEST MAIN STREET) TO A POINT 250 FEET SOUTHEASTERLY FROM THE WEST LINE OF ROYAL ACRES SUBDIVISION, AS RECORDED NOVEMBER 1, 1960 AS DOCUMENT NUMBER 933030, EXTENDED NORTHERLY, AS MEASURED ALONG SAID SOUTHERLY RIGHT-OF-WAY LINE OF STATE ROUTE 72 (AKA WEST MAIN STREET); THENCE SOUTHERLY ALONG A LINE THAT IS PARALLEL WITH SAID WEST LINE OF ROYAL ACRES SUBDIVISION, 176.03 FEET; THENCE NORTHWESTERLY ALONG A LINE THAT IS PARALLEL WITH SAID SOUTHERLY RIGHT-OF-WAY LINE OF STATE ROUTE 72 (AKA WEST MAIN STREET) 250 FEET TO A POINT ON SAID NORTHERLY EXTENSION OF THE WEST LINE OF ROYAL ACRES SUBDIVISION, SAID WEST LINE ALSO BEING THE EAST RIGHT-OF-WAY LINE OF VILLAGE QUARTER ROAD; THENCE SOUTHERLY ALONG SAID EAST RIGHT-OF-WAY LINE OF VILLAGE QUARTER ROAD TO A POINT ON THE NORTH LINE OF OLD WORLD SUBDIVISION, AS RECORDED FEBRUARY 14, 1966 AS DOCUMENT NUMBER 1063720; THENCE WEST ALONG SAID NORTH LINE OF OLD WORLD SUBDIVISION TO A POINT ON THE WEST LINE OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SAID SECTION 22; THENCE SOUTH ALONG SAID WEST LINE OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 22 TO THE SOUTHWEST CORNER THEREOF, SAID SOUTHWEST CORNER ALSO BEING THE NORTHEAST CORNER OF LOT 3 IN AFORESAID SPRING HILL PLAZA SUBDIVISION; THENCE SOUTHWESTERLY AND WESTERLY ALONG THE NORTH LINE OF SAID LOT 3 IN SPRING HILL PLAZA SUBDIVISION TO THE POINT OF BEGINNING. EXHIBIT C TIF QUALIFICATION REPORT _____________________________________________________________________________________ Draft 10/20/22 VILLAGE OF WEST DUNDEE, ILLINOIS TIF QUALIFICATION REPORT SPRING HILL MALL AREA TIF 5 REDEVELOPMENT PROJECT AREA A study to determine whether certain properties within the Village of West Dundee qualify in part as a “conservation area” as defined in the Tax Increment Allocation Redevelopment Act of Chapter 65, 5/11-74.4-1, et. seq., as amended of the Illinois Compiled Statutes (the “TIF Act”). Prepared for: Village of West Dundee, Illinois Prepared Jointly by: Kane, McKenna and Associates, Inc. and The Village of West Dundee October 2022 VILLAGE OF WEST DUNDEE SPRING HILL MALL AREA TIF 5 REDEVELOPMENT PROJECT AREA TIF QUALIFICATION REPORT TABLE OF CONTENTS SECTION TITLE PAGE Executive Summary i I. Background 1 II. Qualification Criteria 6 III. Evaluation Methodology 9 IV. Qualification Findings for Proposed RPA 10 V. Summary of Findings; Overall Assessment 17 of Qualification Exhibit I TIF Boundary Map Exhibit II Legal Description EXECUTIVE SUMMARY Kane, McKenna and Associates, Inc. (KMA) has been retained by the Village of West Dundee, Illinois (the “Village”) to conduct an analysis of the potential qualification and designation of certain property located in the Village, to be referred to herein as the proposed Redevelopment Project Area (the “RPA” or “TIF District”). The Village is pursuing the RPA designation as part of its ongoing strategy to promote the revitalization of the property and thereby assist the Village in achieving its policy goal of promoting economic redevelopment. Previous redevelopment efforts in the RPA include the Village’s prior adoption of a first Spring Hill Mall TIF in 2016. To date, this current Spring Hill Mall TIF has not been successful in achieving the Village’s redevelopment objectives and creating sufficient incremental EAV growth. Accordingly, the Village intends to terminate the existing Spring Hill Mall TIF when it adopts the new Spring Hill Mall Area TIF 5, which will include the Spring Hill Mall property, as well certain out-lots and adjacent properties. The Village’s future redevelopment efforts pursuant to the new Spring Hill Mall Area TIF 5 will be coordinated with the Village of Carpentersville, which recently adopted its own proposed new Spring Hill Mall TIF for the northern portion of the Spring Hill Mall and certain adjacent properties. To augment its redevelopment efforts in the RPA, the Village of West Dundee is also contemplating the establishment of a Business District in the RPA, which will expand its inventory of economic incentives to encourage redevelopment in the RPA. By undertaking this designation, the Village will help strengthen the RPA as a significant contributor to the Village’s overall economic base. Based upon the analysis completed to date, KMA has reached the following conclusions regarding the potential qualification for the RPA as a Tax Increment Finance (“TIF”) District: 1) The parcels within the proposed TIF District, as a whole, would qualify as a “conservation area,” as the term is defined under the TIF Act – Overall, the parcels within the proposed TIF District either have declined, or are in danger of declining, toward a blighted condition. This condition prevents, or threatens to prevent, the healthy economic and physical development of properties in a manner that the community deems essential to its overall economic health. Because 50% or more of the structures are over 35 years of age, the proposed TIF District is especially vulnerable to potential physical decline and would meet statutory criteria as a conservation area TIF. 2) Current conditions impede redevelopment – The conditions found within the proposed TIF District present a barrier to the area’s successful redevelopment. Without the use of Village planning and economic development resources to mitigate such conditions, potential redevelopment activities are not likely to be economically feasible. 4) Viable redevelopment sites could produce incremental revenue – Within the proposed TIF District, there are parcels which potentially could be redeveloped or rehabilitated and thereby produce incremental property tax revenue. Such revenue, used in combination with other Village resources for redevelopment incentives or public improvements, would likely stimulate private investment and reinvestment in these sites and ultimately throughout the TIF District. 5) Pursuit of TIF designation is recommended – To mitigate the existing conditions (thereby promoting the improved physical condition of the proposed RPA) and to leverage the Village’s investment and redevelopment efforts, KMA recommends that the Village pursue the formal TIF designation process for the RPA. Because the Village will not consider the redevelopment of residential parcels that would dislocate ten (10) or more residential units within the proposed TIF District and since the RPA contains less than seventy-five (75) inhabited residential units, the Village will not conduct a housing impact study pursuant to the TIF Act. Village of West Dundee Spring Hill Mall Area TIF 5 Qualification Report – October 2022 1 I. BACKGROUND The Spring Hill Mall regional shopping center is situated within both the Village of West Dundee (southern portion of the mall) and the Village of Carpentersville (northern portion of the mall). The mall had been an important contributor to both of the Villages’ economies for forty (40) years, generating a significant portion of both Villages’ property tax and sales tax revenues, as well as a serving as an important source of jobs, and other multiplier benefits over this time. Recent downward shifts in retail industry trends, however, have had an adverse economic effect on shopping centers. Enclosed regional malls, in particular, have been dramatically impacted by anchor department store closures and declining overall sales. As a result, enclosed mall owners, nationwide, are increasingly faced with a need to reposition these properties in reaction to these dynamic retail market transformations. The redevelopment of an established regional mall property into a mixed-use center, like Spring Hill Mall, poses certain extraordinary financial challenges. Disproportionately high costs associated with relocating or repurposing infrastructure, traffic and parking configurations, and the reconstruction of a large single-use property for multiple uses that meet market acceptance and investment criteria, are just some of the extraordinary costs associated with repurposing large single use properties. As part of the Village’s economic development planning and 2005 Comprehensive Plan, as amended, and other Village plans implementation, the Village has initiated a study of the southern portion of the mall and a limited additional adjacent area, (collectively “the RPA”), to determine whether it would potentially qualify as a TIF District. Kane, McKenna and Associates, Inc. agreed to undertake the study of the proposed RPA on the Village’s behalf. (It should be noted that Kane McKenna & Associates, Inc. has also undertaken a study of the northern portion of the mall and a limited additional adjacent for the Village of Carpentersville and determined that it can qualify as a “conservation area”.) The Village of West Dundee is a suburban community in eastern Kane County approximately 38 miles northwest of Downtown Chicago along Interstate 90 (Northwest Tollway). It has a population of 7,784 residents as of the 2020 US Census. According to the Village website, West Dundee enjoys one of the region's most unique and treasured assets, the Fox River greenway. The Fox River serves as the Village's eastern border and is one of the community's finest recreational areas. Current Land Use The proposed TIF District generally consists of the south half of the Spring Hill Mall and is approximately located between Huntley Road and Elm Avenue to the north, Prairie Meadow Park to the south, part of Tartan’s Drive and Edinburgh Lane to the west, and Western Avenue and Village Quarter Road to the east. The area is primarily retail and commercial. Overall, the area faces a number of redevelopment impediments as described in Section IV of this report. Lag in EAV, deterioration, obsolescence, excessive vacancies, inadequate utilities, and Village of West Dundee Spring Hill Mall Area TIF 5 Qualification Report – October 2022 2 lack of community planning are some of the principal impediments that currently limit the competitiveness of the area. General Redevelopment Objectives The redevelopment of the proposed RPA would further the Village’s overarching land use objectives, which are contained in its 2005 Comprehensive Plan as amended by the the “Spring Hill Mall SubArea Plan Update”, to be adopted later this year (“the Comprehensive Plan”), the “Inspirational Framework Plan” (2018), and other planning documents anticipated to be put into place outlining a vision for elevated re-use of the mall site, zoning ordinance, and other land use planning elements. In the Comprehensive Plan, the Village has articulated a number of public policy goals and objectives, and related strategies, which would be supported by the Village’s adoption of the proposed RPA as a TIF District (see Table 1 below). Furthermore, the Comprehensive Plan specifically identifies and acknowledges the Spring Hill Mall area as one of four “Sub Areas”, areas defined in the plan as “major opportunities and target areas for redevelopment and new development”. Pursuant to this designation, the Comprehensive Plan describes this sub-area as “one of the largest retail agglomerations in Kane County”, and “the economic engine of West Dundee." The plan further states that “The declines in retail sales from the Mall and its environs in recent years indicate that it is losing market share to competition from new big box retail chains”. The plan also maintains that “The Village should be proactive in enhancing this key sub area and maintaining it as a regional retail destination.”. Toward this end, the plan calls for the Village to “Work closely with the owner of the Spring Hill Mall and adjacent Fashion Corner Mall to facilitate new development concepts and site improvements.” Accordingly, Village staff has recently prepared “the Spring Hill Mall SubArea Plan Update” to be adopted by the Village Board prior to the end of 2022 (“the SubArea Plan Update”). With this SubArea Plan Update, the Village intends to encourage mixed residential, retail, commercial, and institutional uses to locate, upgrade, or expand and/or modernize their facilities within the Village as part of its ongoing economic development planning. In pursuing these uses, a necessary strategy for the Village will be to eliminate certain existing adverse conditions within some portions of the Spring Mall area, and to find new means to preserve and strengthen the Village’s tax base. Given the gap between the Village’s goals for the area and the conditions described in this report, the Village has determined that the redevelopment of the proposed RPA would be highly beneficial to the community. With a redevelopment strategy in place, the economic base associated with the RPA would be stabilized and increased – thereby benefiting the community as a whole. Without such a redevelopment strategy, the adverse conditions identified in this report would likely worsen. The below Table 1 summarizes some the Village’s economic development goals and objectives and demonstrate that establishment of the proposed TIF District is consistent with these goals and objectives. Village of West Dundee Spring Hill Mall Area TIF 5 Qualification Report – October 2022 3 Table 1 Redevelopment Policy Goals - West Dundee 2005 Comprehensive Plan ( as amended) Policy Goals Objectives and Strategies • Diversified economic base that serves local and regional residents with a range of business and jobs • Well-defined attractive, and pedestrian- oriented commercial districts that serve the needs of local and regional residents and enhance the Village’s tax base. • Preserve and enhance the commercial base of the Village by actively marketing to commercial businesses that fill a market niche and/or complement existing businesses • Encourage and assist the repositioning and strengthening of the Spring Hill Mall • Take advantage of the strong market demand for residential development by soliciting developers and encouraging large mixed-use developments linked to commercial areas • Create a business and retention and attraction program based on the Future Land-Use Plan and sub-area development strategies • Reduce commercial zoning and focus economic development efforts on the most viable areas of the Village • Concentrate commercial development within the Village’s four key sub-areas: Spring Hill Mall, Randall Road Corridor, Route 31 Corridor, and Downtown • Promote redevelopment of vacant and underutilized property in the sub-areas • Increase outreach efforts to businesses and developers to attract new uses to the key sub-areas • Consider improvements to Huntley Road and Route 72 as priority projects linked to economic development strategies for the Randall Road corridor and Spring Hill Mall. Village of West Dundee Spring Hill Mall Area TIF 5 Qualification Report – October 2022 4 • A regional commercial center that continues to be the economic engine for West Dundee, re-positioned with new uses and improved physical conditions • Maintain existing retail anchors within the mall and on the properties surrounding it • Focus new development on the periphery of the property • Introduce new residential, restaurant and/or entertainment uses • Create an internal system of pedestrian paths and defined driveways that link commercial sites to each other and adjacent neighborhoods • Consider the storm water detention area on Route 72 as a possible amenity space for new shops and restaurants • Reposition the Fashion Corner property with existing anchor U-Haul and destination retail (including health/fitness). Improve parking area. • Improve commercial building facades, walls, and loading areas so that the subarea is more attractive and inviting. Source: Village of West Dundee 2005 Comprehensive Plan as amended General Scope and Methodology KMA performed its analysis by conducting a series of meetings and discussions with Village staff, starting in July 2021 and continuing periodically up to the date of this report. The objective of the meetings was to gather data related to the qualification criteria for properties included in the study area. These meetings were complemented by a series of field surveys for the entire area to evaluate the condition of the proposed RPA, reviewing individual parcels as well as the RPA as a whole. The field surveys and data collected have been utilized to test the likelihood that the proposed RPA would qualify for TIF designation. Village of West Dundee Spring Hill Mall Area TIF 5 Qualification Report – October 2022 5 The qualification factors discussed in this report qualify the RPA as a “conservation area” as such term is defined pursuant to the TIF Act. For additional information about KMA’s data collection and evaluation methods, refer to Section III of this report. Village of West Dundee Spring Hill Mall Area TIF 5 Qualification Report – October 2022 6 II. QUALIFICATION CRITERIA With the assistance of Village staff, Kane, McKenna and Associates, Inc. assessed the proposed RPA to determine the likelihood that qualifying factors listed in the TIF Act would be present. The relevant provisions of the TIF Act are cited below. The Act sets out specific procedures which must be adhered to in designating a redevelopment project area (RPA). By definition, a “redevelopment project area” is: “An area designated by the municipality, which is not less in the aggregate than 11⁄2 acres and in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area or a conservation area, or a combination of both blighted areas and conservation areas.” Under the TIF Act, a “blighted area” or “conservation area” means any improved or vacant area within the boundaries of a development project area located within the territorial limits of the municipality where certain conditions are met, as indicated below. TIF Qualification Factors for a Conservation Area. In accordance with the Illinois TIF Act, KMA performed a two-step assessment to determine if the proposed RPA qualified as a conservation area. First, KMA analyzed the threshold factor of age to determine if 50% or more of the structures were 35 years of age or older. Secondly, if a proposed conservation area meets the age threshold, then the following factors are to be examined to determine TIF qualification: If a conservation area, industrial, commercial and residential buildings or improvements are detrimental to the public safety, health or welfare because of a combination of three (3) or more of the following factors, each of which is (i) present, with that presence documented to a meaningful extent so that a municipality may reasonably find that the factor is clearly present within the intent of the TIF Act and (ii) reasonably distributed throughout the improved part of the redevelopment project area: (A) Dilapidation. An advanced state of disrepair or neglect of necessary repairs to the primary structural components of building or improvements in such a combination that a documented building condition analysis determines that major repair is required, or the defects are so serious and so extensive that the buildings must be removed. (B) Obsolescence. The condition or process of falling into disuse. Structures become ill-suited for the original use.