By Gail Peckler-Dziki
Correspondent

A tax incremental finance district, known as a TIF or a TID, is a method a municipality can use to finance redevelopment or improvement on existing structures or to create new structures. Paddock Lake refers to it as a TID.

Expenses are incurred by the municipality at the beginning of the project in the form of financial incentives to developers.

As the development progresses, the value of the property increases as do the property taxes that will be collected by taxing bodies.

In a TIF or TID district, the taxing bodies create an agreement to accept a certain level of taxes for a certain period of years, or until the municipality has recouped previous costs.

TID No. 2 is about 130 acres and Whitetail Ridge is on 30 of those acres. Currently, the Whitetail Ridge parcel is assessed at $11,550 for agricultural land.

The life of the TID is 20 years. Popanda said that the senior housing should be completed by August 2019. New proposed assessed value is expected at $3.8 million with annual revenue to Paddock Lake at $91,000.

The commercial portion is expects to see occupancy in five years. Those 14 acres have an expected new assessed value of $5.8 million with annual revenue to the village of $139,200.

The 14 acres for single-family homes could be built and occupied in 15 years.

The expected new assessed value is $5.4 million and the annual revenue of Paddock Lake is expected to be $559,000.

Since the taxing bodies have agreed to accept the current tax revenues, as the TID properties increase in value and tax revenue, that additional revenue will be used for the village to recoup the village’s initial investment of $4.3 million.

Popanda also reported that he has an application for an O’Reilly Auto Parts store business with an over 7,000-square-foot building.

 
 

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