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R-22-81 VILLAGE OF DEERFIELD, ILLINOIS DOWNTOWN TIF DISTRICT REDEVELOPMENT PLAN AND PROJECT Prepared By: Village of Deerfield, Illinois & Kane, McKenna and Associates, Inc. October 2022 Draft Date: 10/05/2022 TABLE OF CONTENTS I.Introduction ......................................................................................................................... 1 A. Overview of Tax Increment Financing (TIF) ................................................................ 2 B. The Redevelopment Plan ............................................................................................... 2 C. Findings Pursuant to the TIF Act ................................................................................... 3 II.Redevelopment Project Area .............................................................................................. 5 A. Redevelopment Project Area Summary ......................................................................... 5 B. Legal Description of Redevelopment Project Area ........................................................ 5 III.Redevelopment Goals ......................................................................................................... 6 A. Village Goals.................................................................................................................. 6 B. Redevelopment Project Area Goals ............................................................................... 8 IV.Evidence of Lack of Development and Growth ................................................................. 9 A. Qualification Report ....................................................................................................... 9 B. Findings .......................................................................................................................... 9 V.Assessment of Fiscal Impact on Affected Taxing Districts .............................................. 10 VI.Housing Impact Study....................................................................................................... 11 VII.Redevelopment Project ..................................................................................................... 12 A. Redevelopment Activities ............................................................................................ 12 B. General Land Use Plan ................................................................................................. 13 C. Additional Design and Control Standards .................................................................... 13 D. Eligible Redevelopment Project Costs ......................................................................... 13 E. Sources of Funds to Pay Redevelopment Project Costs ............................................... 23 F. Nature and Term of Obligations ................................................................................... 23 G. Most Recent and Anticipated Equalized Assessed Value (EAV) ................................ 24 VIII. Scheduling of Redevelopment Project .............................................................................. 25 A. Redevelopment Project ................................................................................................ 25 B. Commitment to Fair Employment Practices and Affirmative Action .......................... 25 C. Completion of Redevelopment Project ........................................................................ 26 IX.Provisions for Amending the Redevelopment Plan and Project ....................................... 27 Exhibit 1 Boundary Map Exhibit 2 Legal Description Exhibit 3 Qualification Report Exhibit 4 Existing Land Use Map Exhibit 5 Proposed Land Use Map Downtown TIF District Village of Deerfield, Illinois 1 I. Introduction The Village of Deerfield (the “Village”) is a suburban municipality serving a population of over 19,000 citizens (according to the 2020 U.S. Census). Incorporated in 1903, Deerfield is located on the border of Lake and Cook Counties, approximately twenty-five miles north of Chicago and fifteen miles from O’Hare International Airport. Most of Deerfield is located in Lake County, including all of its residential neighborhoods, parks and public schools. The Cook County portion of Deerfield is located between Lake-Cook Road and the Edens Spur. Deerfield is situated between Route 94 (Edens Expressway) to the east and Interstate 94/294 (Tri- State Tollway) to the west. The Village has, in addition to the Tri-State Tollway and the Edens Expressway, a number of other transportation assets. Lake-Cook Road and Deerfield Road are important east/west arterials and enable access to the Tri-State Tollway. In addition to the network of roadways, residents and businesses benefit from close proximity to Metra rail lines with train stations located at both Lake-Cook Road and Deerfield Road. The Village is also home to many corporate headquarters, research centers and facilities for well-known national and international companies. In this report, the Village proposes a Tax Increment Financing Redevelopment Plan and Project (the “Plan” or “Redevelopment Plan”) pursuant to the TIF Act (as defined below) to enable a certain area within the Village to overcome a number of redevelopment barriers. Kane, McKenna and Associates, Inc. (“KMA”) has been retained by the Village to assist in the drafting of this Redevelopment Plan. The Village is surrounded by Bannockburn to the north, Highland Park to the east, Lincolnshire and Riverwoods to the west, and Northbrook to the south, landlocked with little vacant land available for development. Indeed, the 2004 “Village of Deerfield Comprehensive Plan (“The Plan”) states that the Village of Deerfield “has few vacant development sites,” and that “future development within the Village limits will mostly take the form of redevelopment”. In addition, there are developments in the Village that have reached the end of their useful economic life necessitating redevelopment for other uses. The Plan calls for the Village to “strengthen the commercial areas of the Village in order to provide a sound economic base, while maintaining a compatible relationship between commercial areas and other areas of the Village.” The Plan also notes that the Village is bisected by Deerfield and Waukegan Roads, and for planning purposes, the Village is divided into four quadrants that radiate from the Deerfield and Waukegan Road intersection. The “Northwest Quadrant”, for which the Village has established a “Northwest Quadrant SubArea Plan” within The Plan, includes the Village Center, portions of which are in the Study Area. The Plan notes that “Deerfield’s Village Center represents a significant asset of the Village,” and that “most of Deerfield’s mixed-use development is located in and around the Village Center.” The Plan states that the Village Center “serves as a center of community life in Deerfield and will greatly enrich the community if it is strengthened as such”. The Village Center also has enormous transit-oriented development Downtown TIF District Village of Deerfield, Illinois 2 potential, given its proximity to the Metra commuter rail station. Accordingly, the Plan states that “Keeping the Village Center strong requires coordinated land use and planning”. In order to help achieve the goals and objectives of the Plan and the Northwest Quadrant SubArea Plan, the Village has proposed the creation of a “Downtown TIF District” (as defined below) for the Village Center and Northwest Quadrant areas to facilitate redevelopment in a coordinated manner. The Village, with the assistance of KMA, has commissioned this Redevelopment Plan to use tax increment financing in order to alleviate those conditions which deter private investment in the area and meet the Village’s redevelopment goals and objectives. A. Overview of Tax Increment Financing (TIF) Tax Increment Financing (“TIF”) is an economic development tool which uses future tax revenues to finance redevelopment activity. In the State of Illinois, an area can be designated as a “redevelopment project area” pursuant to the TIF Act if it faces certain impediments to redevelopment. At the time of designation, the equalized assessed value of tax parcels within the boundaries of the district are “frozen” for the term of the redevelopment project area. Taxing jurisdictions that overlap that district continue to receive property taxes, but those revenues are limited to those based on the “frozen” or base equalized assessed values. Any property tax revenue generated from increases in equalized assessed value relative to the frozen values are deposited in a special tax allocation fund. This revenue is then used to finance redevelopment activities within the district to accomplish various community and economic development goals. B. The Redevelopment Plan The Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-3, et. seq., as amended (the “TIF Act” or “Act”) enables Illinois municipalities to establish a “redevelopment project area” either to eliminate the presence of blight or to prevent its onset. The Act finds that municipal TIF authority serves a public interest in order to: “promote and protect the health, safety, morals, and welfare of the public, that blighted conditions need to be eradicated and conservation measures instituted, and that redevelopment of such areas be undertaken; that to remove and alleviate adverse conditions it is necessary to encourage private investment and restore and enhance the tax base of the taxing districts in such areas by the development or redevelopment of project areas” (65 ILCS 5/11-74.4-2(b)). To establish an area as a “redevelopment project area” pursuant to the Act, Illinois municipalities must adopt several documents including a Redevelopment Plan and Qualification Report that provides in reasonable detail the basis for the eligibility of the RPA. A Redevelopment Plan is any comprehensive program of the municipality for development or redevelopment intended by the payment of redevelopment project costs to reduce or eliminate those conditions which qualify the redevelopment project area as a "blighted area," "conservation area," (or combination thereof), Downtown TIF District Village of Deerfield, Illinois 3 or "industrial park conservation area," and thereby to enhance the tax bases of the taxing districts which extend into the redevelopment project area as set forth in the TIF Act. The Village has authorized KMA to study the area identified in the boundary map attached hereto as Exhibit 1 (the “Redevelopment Project Area,” “RPA,” or “TIF District”) in relation to its eligibility as a Redevelopment Project Area under the TIF Act, to prepare a report for the eligibility of the RPA (the “Qualification Report”) and to prepare a Redevelopment Plan for the RPA. C. Findings Pursuant to the TIF Act It is found and declared by the Village through legislative actions as required by the Act that: 1. To alleviate the adverse conditions, it is necessary to encourage private investment and enhance the tax base of the taxing districts in such areas by the development or redevelopment of certain areas; 2. Public/private partnerships are determined to be necessary in order to achieve development goals; 3. The Redevelopment Project Area on the whole has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of this redevelopment plan; 4. 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 that are incurred in the redevelopment of the RPA will incentivize such redevelopment and benefit such taxing districts in the long run, by alleviating the conditions identified in the Eligibility Report and increasing the assessment base; 5. Such increased assessment base is not likely to be achieved without using such incentives to first alleviate such conditions; and 6. The Redevelopment Plan and Project conforms to the Village’s 2004 “Comprehensive Plan” (the “Comprehensive Plan”) which guides development of the Village as a whole, and with the Village’s “Northwest Quadrant Master Plan” adopted in 2016, amending the 2004 Comprehensive Plan. It is further found, and certified by the Village, in connection to the process required for the adoption of this Redevelopment Plan pursuant to 65 ILCS 5/11-74.4-3(n)(5) of the Act, that this Redevelopment Plan will not result in the displacement of ten (10) or more inhabited residential units. Therefore, this Redevelopment Plan does not include a housing impact study as is required under the Act. Downtown TIF District Village of Deerfield, Illinois 4 The redevelopment activities that will take place within the RPA will produce benefits that are reasonably distributed throughout the RPA. Redevelopment of the RPA is tenable only if a portion of the improvements and other costs are funded by the RPA. Pursuant to the Act, the RPA includes only those contiguous parcels of real property and improvements thereon substantially benefited by the Redevelopment Plan. Also pursuant to the Act, the area of the RPA in the aggregate is more than 1½ acres. Downtown TIF District Village of Deerfield, Illinois 5 II. Redevelopment Project Area A. Redevelopment Project Area Summary The RPA is primarily located between Hazel Avenue to the north and Deerfield Road to the south, and between Chestnut Street to the west and Rosemary Terrace to the east. Most of the uses within this area are retail/commercial, institutional, recreational, and some single- and multi- family residential. B. Legal Description of Redevelopment Project Area The Redevelopment Project Area legal description is attached as Exhibit 2. Downtown TIF District Village of Deerfield, Illinois 6 III. Redevelopment Goals A. Village Goals The Village has established certain goals, objectives and strategies which would determine the kinds of activities to be undertaken within the RPA. Important underlying documents are the 2004 Comprehensive Plan and the Northwest Quadrant Master Plan which amends the Comprehensive Plan, both of which, as elements of the planning process, describe the overall vision for the Village and the Village Center and are the foundation for Village initiatives. These planning documents influence all other Village planning processes including those related to TIF. The below Table 1 summarizes goals in the 2004 Comprehensive Plan and Northwest Quadrant Master Plan that are applicable to the RPA. Table 1. 2004 Comprehensive Plan Goals and Objectives Relevant to Redevelopment of the RPA Goals Objectives Seek to strengthen the commercial areas of the Village in order to provide a sound economic base, while maintaining a compatible relationship between the commercial areas and other areas of the Village. Maintain the Village Center as the governmental, recreational, cultural and visual center of Deerfield. Guide future growth within Deerfield’s Planning Jurisdiction so that public facilities and amenities can be effectively and economically provided, and that such growth does not adversely change the Village. Preserve and strengthen the commercial areas of the Village. Ensure that the Village’s commercial areas are accessible and have adequate parking facilities. Actively work toward the elimination of barriers between parking areas. Ensure that commercial areas contribute to a positive community image. Promote unified development and continuity in the Village’s commercial area. Provide a centrally located area that serves as a focus of community life. Ensure that the Village Center contributes to a positive community image. Integrate the Village Center redevelopment into the physical fabric of the larger community. Encourage attractive and vibrant business uses as part of the Village Center land use mix. Carefully consider proposals for development or redevelopment of development sites. Downtown TIF District Village of Deerfield, Illinois 7 Maintain the variety of the existing housing stock and supplement it in suitable locations with safe, well- constructed housing or a density, scale, and character compatible with adjacent housing. Continue to maintain and improve traffic circulation within Deerfield by supporting transportation system improvements and managing traffic to ensure safe, coordinated, and efficient flow of vehicles and people within and through the Village. Encourage and provide a safe and convenient environment for the pedestrian and bicyclist. Help protect recreational and open space areas to encourage the acquisition of additional recreation and open space facilities. Help maintain the desirability of Village neighborhoods. Accommodate new housing in a manner that does not adversely impact the residential character of the Village. Ensure that traffic along major thoroughfares moves smoothly, efficiently and without back-up and congestion. Ensure that access to major streets is provided and that movement between the residential quadrants of the Village is not impeded. Encourage modes of transportation other than the automobile to lessen congestion on the streets.. Establish a cohesive pedestrian and bicycle pathway system that links all quadrants of the Village Maintain sidewalks in a safe condition for use by cyclists and pedestrians. Provide pedestrian-friendly crossings at major intersections. Expand the supply of open space within the Village. Source: Village of Deerfield 2004 “Comprehensive Plan” Implementation of this Redevelopment Plan will facilitate the accomplishment of these and other goals described in the Village’s Comprehensive Plan and Northwest Quadrant Sub Area Plan. It is further expected that the “redevelopment projects” as defined in the TIF Act will return the RPA Downtown TIF District Village of Deerfield, Illinois 8 to economically productive use; thus, accomplishing the Village’s general goals regarding enhancing and strengthening the Village’s tax base. B. Redevelopment Project Area Goals Given the potential community benefits that may be gained from redevelopment of the RPA, efforts should be made to achieve the following goals for the RPA: 1. Reduce or address those adverse impacts described in the TIF Qualification Report which deter private investment in the RPA; 2. Return underutilized property located within the RPA to productive use and strengthen and enhance the Village’s tax base; 3. Provide for high-quality development within the RPA that facilitates community and economic development goals; and 4. Accomplish redevelopment of the RPA over a reasonable time period. These goals may be accomplished by pursuing the following objectives for the RPA: 1. Promotion of the redevelopment of underutilized property located within the RPA; 2. Provision for the assembly or coordination of private and public property for viable redevelopment projects; 3. Improvement of existing rights-of-way and infrastructure including, but not limited to roadways, streetscape, traffic signalization and parking improvements; 4. Provision of necessary site preparation including, but not limited to, grading, demolition and environmental remediation; and 5. Provision of public investment that improves the physical condition and visual aesthetic of the area including those in the public realm (e.g. streetscaping) and the private realm (e.g. facades and signage). These objectives may be pursued independently by the Village or in public-private partnership by entering into redevelopment agreements in order to redevelop existing property or induce new development to locate within the RPA. Downtown TIF District Village of Deerfield, Illinois 9 IV. Evidence of Lack of Development and Growth A. Qualification Report The Redevelopment Plan Area’s qualification under the TIF Act was evaluated by representatives of KMA from June 2022 through the date of this report. Analysis was aided by certain reports obtained from the Village and other sources. Only information which would directly aid in the determination of eligibility for a redevelopment project area was utilized. The reported results of this evaluation are attached as Exhibit 3 of this Redevelopment Plan. B. Findings As found in Exhibit 3 of this Redevelopment Plan, the RPA has suffered from certain impediments to redevelopment. The area has been burdened with a lack of significant private investment and/or development. As a result, the RPA is not likely to experience significant development and growth without the use of Village resources. Factors which constitute evidence of the property as a “conservation area” and which impair sound growth in the RPA are: (i) lagging EAV; (ii) obsolescence; (iii) deterioration of structures or site improvements; (iv) deleterious layout; (v) excessive vacancies; (vi)inadequate utilities; and (vii) lack of community planning; Downtown TIF District Village of Deerfield, Illinois 10 V. Assessment of Fiscal Impact on Affected Taxing Districts It is anticipated that the implementation of this Redevelopment Plan will have a positive financial impact on the affected taxing districts. Actions to be taken by the Village to enhance its tax base through the implementation of this Redevelopment Plan will also have a positive impact on the affected taxing districts. Strategies will be encouraged to promote growth via private investment within the area, while specific objectives will be geared toward stabilizing the RPA’s existing strengths and revitalizing the RPA’s redevelopment potential. It is anticipated that the RPA will require minimal increased services from affected taxing districts other than the Village. Should the Village achieve success in attracting private investment which does result in the need for documented increased services from any taxing districts, the Village will consider the declaration of sufficient surplus funds (which funds are neither expended nor obligated) as provided by the TIF Act, to assist affected taxing districts in paying the costs for the increased services. Any surplus funds that may exist will be proportionately shared, based on the appropriate tax rates for a given year, with the various taxing districts including the Village. Prior to any surplus disbursement, all TIF eligible costs either expended or incurred as an obligation by the Village will be duly accounted for through the administration of the Special Tax Allocation Fund to be established by the Village as provided by the TIF Act. Downtown TIF District Village of Deerfield, Illinois 11 VI. Housing Impact Study The RPA was studied in order to determine if a housing impact study would need to be conducted pursuant to the TIF Act. A housing impact study is not required to be completed because the Village will certify that it will not displace ten (10) or more residential units. A limited number of residential units are located within the RPA. If, later, the Village does decide that it is necessary to dislocate ten (10) or more residential units, then the Village must complete a housing impact study and amend the Redevelopment Plan herein. Downtown TIF District Village of Deerfield, Illinois 12 VII. Redevelopment Project A. Redevelopment Activities The Village will implement a coordinated program of actions allowed under the Act, including, but not limited to, the following actions: Land Assembly: Property within the RPA may be acquired, assembled and reconfigured into appropriate redevelopment sites. The Village may also cover any relocation costs related to land assembly activities. Site Preparation, Clearance and Demolition: Property within the RPA may be improved by site clearance, excavation, regrading, environmental remediation or demolition. Public Improvements: Public improvements within the RPA may be provided or repaired to support the Redevelopment Plan and Project. Examples of such public improvements may include but are not limited to: (i) public utilities and infrastructure including roadways, sidewalks, water mains, sanitary sewer systems and storm sewer systems; (ii) public parking facilities; (iii) storm water management and detention facilities; and (iv) landscaping, lighting, traffic signalization, signage and other improvements to the streetscape. Relocation of utilities or infrastructure may also be funded as determined by the Village. Rehabilitation and Construction: 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 commercial signage upgrades, exterior and facade related work as well as interior related work. Interest Rate Write-Down: Entering into agreements with property owners/developers whereby a portion of the interest cost of a construction, renovation or rehabilitation project is paid for on annual basis out of the Special Tax Allocation Fund of the RPA, in accordance with the Act. Job Training: Assisting facilities and enterprises located within the RPA in providing job training assistance. Job training and retraining programs currently available from or through other governments include, but are not limited to, federal programs, state programs, applicable local vocational educational programs including community college sponsored programs and other federal, state, county or non-profit operated programs that are available or will be developed and initiated over time. Downtown TIF District Village of Deerfield, Illinois 13 B. General Land Use Plan Existing land uses consists largely of retail/commercial, mixed-use, institutional, recreational and some single- and multi-family residential uses. Existing land uses are shown in Exhibit 4, attached hereto. Proposed land uses in the RPA are to consist of commercial, retail, mixed-use, residential, recreational and institutional uses. Intended land uses will generally conform to the Village’s Plan. Exhibit 5, attached hereto and made a part of this Plan, designates the proposed general land uses in the Redevelopment Project Area. C. Additional Design and Control Standards The appropriate design controls, including for any Planned Unit Developments, as set forth in the Village’s Zoning Ordinance, as amended, shall apply to the RPA. D. Eligible Redevelopment Project Costs Redevelopment project costs mean and include the sum of all reasonable or necessary costs incurred or estimated to be incurred, as provided in the Act, and any such costs incidental to this Redevelopment Plan. Private investments, which supplement municipal Redevelopment Project Costs, are expected to substantially exceed such redevelopment project costs. Eligible costs permitted under the Act which may be pertinent to this Redevelopment Plan include: 1. Professional Services - 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; Downtown TIF District Village of Deerfield, Illinois 14 2. Marketing - 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. Rehabilitation Costs - 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. Public Works and Improvements - 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 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. Job Training - 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 Incentives - 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; Downtown TIF District Village of Deerfield, Illinois 15 8. Capital Costs - 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. School-related Costs - 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 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 Downtown TIF District Village of Deerfield, Illinois 16 (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; (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 Downtown TIF District Village of Deerfield, Illinois 17 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. Library Costs - 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 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 Downtown TIF District Village of Deerfield, Illinois 18 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 - Those estimated tax revenues from real property in a redevelopment project area derived from real property that has been acquired by a municipality which according to the redevelopment project or plan is to be used for a private use which taxing districts would have received had a municipality not acquired the real property and adopted tax increment allocation financing and which would result from levies made after the time of the adoption of tax increment allocation financing to the time the current equalized value of real property in the redevelopment project area exceeds the total initial equalized value of real property in said area. 13. Job Training - 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, 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 pertaining to the redevelopment project during that year; Downtown TIF District Village of Deerfield, Illinois 19 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, 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 Downtown TIF District Village of Deerfield, Illinois 20 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. Day Care - 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. The TIF Act prohibits certain costs, including the following: Construction of Privately-owned Buildings - Unless explicitly stated herein the costs of construction of new privately-owned buildings shall not be an eligible redevelopment project cost; Retail Displacement - 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 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; Historic Building Demolition - 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 Downtown TIF District Village of Deerfield, Illinois 21 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 in the below Table 2. Downtown TIF District Village of Deerfield, Illinois 22 Table 2. Redevelopment Project Cost Estimates Program Actions/Improvements Estimated Costs Land and Property Acquisition and Assembly Costs (including Relocation Costs) $ 5,000,000 Site Preparation, Demolition, and Environmental Cleanup $ 3,500,000 Public Works or Improvements including, but not limited to, water, storm sewer, sanitary sewer, traffic management, roadway and streetscape improvements, and utility relocations $17,000,000 Rehabilitation of Existing Structures $ 1,500,000 Professional Service Costs (Including without limitation Planning, Legal, Engineering, Architectural, Financial, Administrative, Annual Reporting and Marketing) Interest Costs Pursuant to the Act $ 2,000,000 $ 1,000,000 School Tuition/Library Costs/Capital Improvements (per the TIF Act) $ 8,000,000 Job Training $ 250,000 TOTAL ESTIMATED TIF BUDGET $38,250,000 Notes: (1) All project cost estimates are in 2022 dollars. Costs may be adjusted for inflation per the TIF Act. (2) In addition to the costs identified in the exhibit above, any bonds, notes or other obligations issued to finance a phase of the Project may include an amount sufficient to pay (a) customary and reasonable charges associated with the issuance of such obligations, (b) interest on such bonds, notes, or other obligations, and (c) capitalized interest and reasonably required reserves. (3) Adjustments to the estimated line-item costs above are expected. Adjustments may be made in line- items within the total, either increasing or decreasing line-items costs for redevelopment. Each individual project cost will be reevaluated in light of the projected private development and resulting tax revenues as it is considered for public financing under the provisions of the Act. The totals of the line- items set forth above are not intended to place a total 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 total amount of payment for eligible redevelopment project costs shall not exceed the overall Total Estimated TIF Budget amount outlined above and all as provided for in the Act. Downtown TIF District Village of Deerfield, Illinois 23 E. Sources of Funds to Pay Redevelopment Project Costs Funds necessary to pay for public improvements and other project costs eligible under the TIF Act are to be derived principally from property tax increment revenues, and proceeds from municipal obligations, if any. Any such obligations would be retired primarily with tax increment revenues and interest earned on surplus revenue available, but not immediately needed, for the Redevelopment Plan. The Village may utilize incremental revenues from contiguous redevelopment project areas to pay for redevelopment project costs within the RPA, and conversely, transfer incremental revenues from the RPA to contiguous TIFs, as provided for in the TIF Act. Any publicly funded “redevelopment project costs” as defined in the TIF Act are subject to (a) approval by the Village; (b) having specific cost categories as set forth in the TIF Act; and (c) pursuant to the Village’s incentive policy. The tax revenues which will be used to pay debt service on the municipal obligations, if any, and to directly pay redevelopment project costs, shall be derived from 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 2020 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. F. Nature and Term of Obligations The Village may issue obligations secured by the tax increment Special Tax Allocation Fund established for the Redevelopment Project Area pursuant to the Act or such other funds as are available to the Village by virtue of its powers pursuant to the Illinois State Statutes. Any and/or all obligations issued by the Village pursuant to this Redevelopment Plan and the Act shall be retired not more than twenty-three years from the date of adoption of the ordinance approving the Redevelopment Project Area. The actual date for such 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, occurring after adoption of the ordinance which establishes the RPA. Downtown TIF District Village of Deerfield, Illinois 24 The final maturity date of any obligations issued pursuant to the Act may not be later than twenty 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. 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, 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, 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. G. Most Recent and Anticipated Equalized Assessed Value (EAV) The most recent estimate of equalized assessed valuation (“EAV”) for tax year 2021 of the property within the RPA is approximately $6,645,736. This is only an estimate and the certified EAV of the RPA will be determined by the County subsequent to adoption of the Village’s TIF ordinances. Upon completion of the anticipated private development of the Redevelopment Project Area over a twenty-three-year period, it is estimated that the equalized assessed valuation of the property within the Redevelopment Project Area will range from approximately $35,000,000 to $45,000,000. VIII.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. Redevelopment projects will begin as soon as the specific private entities have obtained financing approvals for appropriate projects and such uses are conformant with Village zoning and planning requirements. Depending upon the scope of the development as well as the actual uses, those redevelopment activities described in Section VII may be included in each phase. 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 parties 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 Village’s most recent policies and plans. 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 sex, color, race or creed. Neither party will discriminate against any employee or applicant because of sex, marital status, national origin, age or the presence of physical disabilities. 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 to this policy and the compliance requirements of applicable state and federal regulations. 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, all 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. 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. ______________________________________________________________________________ Downtown TIF District Village of Deerfield, Illinois 25 ______________________________________________________________________________ Downtown TIF District Village of Deerfield, Illinois 26 C. Completion of Redevelopment Project This Redevelopment Plan will be completed within twenty-three years after the year of adoption of an ordinance designating the Redevelopment Project Area. The actual date for such completion shall not be later than December 31st 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 that the ordinance approving the RPA is adopted. _____________________________________________________________________________________ Downtown TIF District Village of Deerfield, Illinois 27 IX. Provisions for Amending the Redevelopment Plan and Project This Redevelopment Plan may be amended pursuant to the provisions of the TIF Act. EXHIBIT 1 BOUNDARY MAP DEERFIELD ROAD ROBERT YORK AVJEWETT PARK DR CHESTNUT STREETHAZEL AVENUE PARK AVSPRI NGFI ELD AVJOURNAL PLWAUKEGAN ROADROSEMARY TERTODD CTORCHARD STCAROLINE CTWALNUT ST REVISED: 08-09-2022, 08-17-2022, 09-06-2022 DOWNTOWN TIF CALC. DWN. CHKD. SCALE: DATE: SHEET OF Rosemont, Illinois 60018 (847) 823-0500 9575 West Higgins Road, Suite 600 ENGINEERING, LTD. VILLAGE OF DEERFIELD PROJECT NO. DRAWING NO. DOWNTOWN TIF VILLAGE OF DEERFIELD, ILLINOIS JRM AJK KJR 08-01-2022 IN PREPARED FOR 1 1 1"=100' 220426 S:\DEERFIELD\220426\SURVEY\TIF220426B.SURSCALE IN FEET 0100 100 TIF220426B 53.95 +/- DOWNTOWN TIF POINT OF BEGINNING NOT INCLUDED PIN 16-29-420-007 EXHIBIT 2 LEGAL DESCRIPTION LEGAL DESCRIPTION (Downtown TIF – Deerfield): THAT PART OF THE SOUTHWEST QUARTER OF SECTION 28, SOUTHEAST QUARTER OF SECTION 29, NORTHEAST QUARTER OF SECTION 32 AND THE NORTHWEST QUARTER OF SECTION 33 IN TOWNSHIP 43 NORTH, RANGE 12 EAST OF THE THIRD PRINCIPAL MERIDIAN IN LAKE COUNTY, ILLINOIS, BEING DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF LOT 37 IN BLOCK 4 IN DEERFIELD PARK LAND AND IMPROVEMENT ASSOCIATION SUBDIVISION AS RECORDED MAY 5, 1898 AS DOCUMENT NO. 70894, PLAT BOOK “D” PAGES 64 – 67, SAID SOUTHEAST CORNER ALSO BEING A POINT ON THE WEST RIGHT-OF-WAY LINE OF JOURNAL PLACE; THENCE NORTH ALONG SAID WEST RIGHT-OF-WAY LINE OF JOURNAL PLACE TO THE NORTHEAST CORNER OF LOT 30 IN SAID BLOCK 4, SAID NORTHEAST CORNER ALSO BEING A POINT ON THE SOUTHEASTERLY LINE OF A VACATED NORTHEASTERLY-SOUTHWESTERLY 16-FOOT-WIDE PUBLIC ALLEY; THENCE NORTHEASTERLY ALONG THE NORTHEASTERLY EXTENSION OF SAID SOUTHEASTERLY LINE OF THE VACATED NORTHEASTERLY-SOUTHWESTERLY 16-FOOT-WIDE PUBLIC ALLEY TO A POINT ON THE NORTHEASTERLY RIGHT-OF-WAY LINE OF WAUKEGAN ROAD; THENCE SOUTHEASTERLY ALONG SAID NORTHEASTERLY RIGHT-OF-WAY LINE OF WAUKEGAN ROAD TO A POINT ON THE NORTHERLY RIGHT-OF-WAY LINE OF ORCHARD STREET; THENCE EASTERLY ALONG SAID NORTHERLY RIGHT-OF-WAY LINE OF ORCHARD STREET TO A POINT OF INTERSECTION WITH THE NORTHERLY EXTENSION OF THE EAST LINE OF LOT 13 IN OWNERS’ HOMESTEAD SUBDIVISION AS RECORDED DECEMBER 11, 1922 AS DOCUMENT NO. 218864; THENCE SOUTH ALONG SAID NORTHERLY EXTENSION AND THE EAST LINE OF LOTS 13, 15, 18 AND 19 IN SAID OWNERS’ HOMESTEAD SUBDIVISION TO THE NORTHWEST CORNER OF LOT 1 IN FIRSTAR’S DEERFIELD PLAT OF CONSOLIDATION AS RECORDED MAY 10, 1994 AS DOCUMENT NUMBER 3538859, SAID NORTHWEST CORNER OF LOT 1 ALSO BEING THE NORTHWEST CORNER OF PARCEL 2 IN SAID FIRSTAR’S DEERFIELD PLAT OF CONSOLIDATION; THENCE EAST ALONG THE NORTH LINE OF SAID PARCEL 2 TO THE NORTHEAST CORNER THEREOF, SAID NORTHEAST CORNER ALSO BEING A POINT ON THE WEST LINE OF PARCEL 3 IN SAID FIRSTAR’S DEERFIELD PLAT OF CONSOLIDATION; THENCE NORTH ALONG THE WEST LINE OF SAID PARCEL 3 TO THE NORTHWEST CORNER THEREOF; THENCE EAST ALONG THE NORTH LINE OF PARCEL 3 TO THE NORTHEAST CORNER THEREOF; THENCE SOUTH ALONG THE EAST LINE OF SAID PARCEL 3 TO THE NORTHWEST CORNER OF PARCEL 4 IN SAID FIRSTAR’S DEERFIELD PLAT OF CONSOLIDATION; THENCE EAST ALONG THE NORTH LINE OF PARCEL 4 TO THE NORTHEAST CORNER THEREOF; THENCE SOUTH ALONG THE EAST LINE OF SAID PARCEL 4 TO THE SOUTHEAST CORNER THEREOF, SAID SOUTHEAST CORNER OF PARCEL 4 ALSO BEING A POINT ON THE SOUTH LINE OF LOT 26 IN SAID OWNERS’ HOMESTEAD SUBDIVISION; THENCE EAST ALONG THE SOUTH LINE OF SAID LOT 26 TO THE SOUTHEAST CORNER THEREOF, SAID SOUTHEAST CORNER ALSO BEING A POINT ON THE WEST LINE OF O.B. VON LINDE’S SUBDIVISION AS RECORDED MARCH 20, 1922 AS DOCUMENT NUMBER 210087; THENCE SOUTH ALONG SAID WEST LINE OF O.B. VON LINDE’S SUBDIVISION TO THE SOUTHWEST CORNER OF LOT 29 IN SAID O.B. VON LINDE’S SUBDIVISION; THENCE EAST ALONG THE SOUTH LINE OF SAID LOT 29 IN SAID O.B. VON LINDE’S SUBDIVISION AND THE EASTERLY EXTENSION THEREOF TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF ROSEMARY TERRACE; THENCE SOUTH ALONG SAID EAST RIGHT-OF-WAY LINE OF ROSEMARY TERRACE AND THE SOUTHERLY EXTENSION THEREOF TO A POINT ON THE SOUTH RIGHT-OF-WAY LINE OF DEERFIELD ROAD (AKA DEERFIELD AVENUE); THENCE WEST ALONG SAID SOUTH RIGHT-OF-WAY LINE OF DEERFIELD ROAD TO A POINT ON THE EASTERLY RIGHT-OF-WAY LINE OF ROBERT YORK AVENUE; THENCE SOUTHERLY ALONG SAID EASTERLY RIGHT-OF-WAY LINE OF ROBERT YORK AVENUE TO A POINT OF INTERSECTION WITH THE EASTERLY EXTENSION OF THE SOUTH LINE OF LOT 7A IN DEERLAND RESUBDIVISION AS RECORDED NOVEMBER 30, 2021 AS DOCUMENT NUMBER 7848939; THENCE WESTERLY ALONG SAID EASTERLY EXTENSION AND THE SOUTH LINE OF LOT 7A IN DEERLAND RESUBDIVISION TO THE SOUTHWEST CORNER THEREOF, SAID SOUTHWEST CORNER OF LOT 7A ALSO BEING A POINT ON THE NORTHEASTERLY RIGHT-OF-WAY LINE OF THE CHICAGO, MILWAUKEE, ST. PAUL AND PACIFIC RAILROAD; THENCE SOUTHWESTERLY ALONG A LINE TO THE NORTHEAST CORNER OF G.J. GRETHEN SUBDIVISION AS RECORDED JUNE 17, 1976 AS DOCUMENT NUMBER 1773179, SAID NORTHEAST CORNER ALSO BEING A POINT ON THE SOUTH RIGHT-OF-WAY LINE OF SUNSET COURT; THENCE WEST ALONG SAID SOUTH RIGHT-OF-WAY LINE OF SUNSET COURT TO A POINT ON THE WESTERLY RIGHT-OF-WAY LINE OF CHESTNUT STREET; THENCE NORTHERLY ALONG SAID WESTERLY RIGHT-OF-WAY LINE OF CHESTNUT STREET TO A POINT ON THE NORTH RIGHT-OF-WAY LINE OF HAZEL AVENUE; THENCE EAST ALONG SAID NORTH RIGHT-OF-WAY LINE OF HAZEL AVENUE TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THE FOLLOWING PARCEL OF LAND: LOT 3 IN THE RESUBDIVISION OF LOTS 8 TO 14, INCLUSIVE, OF BLOCK 17 IN DEERFIELD PARK LAND AND IMPROVEMENT ASSOCIATION, A SUBDIVISION IN THE SOUTHEAST QUARTER OF SECTION 29, TOWNSHIP 43 NORTH, RANGE 12 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SAID RESUBDIVISION RECORDED JANUARY 25, 1927, IN BOOK “R” OF PLATS, PAGE 8, AS DOCUMENT NUMBER 293261, IN LAKE COUNTY, ILLINOIS. EXHIBIT 3 QUALIFICATION REPORT VILLAGE OF DEERFIELD, ILLINOIS TIF QUALIFICATION REPORT DOWNTOWN TIF STUDY AREA An analysis to assess the likelihood that all or a portion of an area located in the Village of Deerfield would qualify as a “conservation area” as defined in the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-3, et seq., as amended. Prepared for: Village of Deerfield, Illinois Prepared by: Kane, McKenna and Associates, Inc. October 2022 Draft Dated 10/5/2022 DEERFIELD DOWNTOWN TIF REDEVELOPMENT PROJECT AREA/STUDY AREA TIF QUALIFICATION ASSESSMENT TABLE OF CONTENTS SECTION TITLE PAGE I. Introduction and Background 1 II. Qualification Criteria Used 3 III. The Study Area 6 IV. Methodology of Evaluation 7 V. Qualification Findings for Proposed Study Area 8 VI. Summary of Findings; Overall Assessment 14 of Qualification Exhibit A Boundary Map Exhibit B Tax Parcel List 1 I.INTRODUCTION AND BACKGROUND In considering the designation of the proposed Downtown TIF Project Area (“TIF District”), the Village of Deerfield (the “Village”) has authorized a study of the area indicated in the map attached hereto as Exhibit A (the “Study Area”) to determine whether it qualifies for consideration as a “redevelopment project area” (“TIF”) pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq., as amended (“TIF Act” or the “Act”). Kane, McKenna and Associates, Inc. (“KMA”), has agreed to undertake the study of the Study Area. The Study Area consists of sixty-nine (69) tax parcels (as described in Exhibit B) comprised of almost 42 acres, and approximately thirty (30) buildings. The proposed TIF designation will serve to improve the Village’s downtown area, including the Village’s “Village Center”. The proposed TIF District was found to have various qualification factors that would enable the Village to designate the Study Area as a “conservation area” as defined in the TIF Act. Approximately 27 of the 30 buildings, or over 93%, are over thirty-five (35) years in age. These building ages qualify the Study Area as a “conservation area”, pursuant to the TIF Act. Additional qualifying factors in the Study Area include stagnant or decline in EAV obsolescence, deterioration of building and site improvements, deleterious layout, excessive vacancies, inadequate utilities, and lack of community planning. Village Goals The 2004 “Village of Deerfield Comprehensive Plan”, (“The Plan”), states that the Village of Deerfield “has few vacant development sites,” and that “future development within the Village limits will mostly take the form of redevelopment.” The Plan also notes that the Village is bisected by Deerfield and Waukegan Roads, and for planning purposes, the Village is divided into four quadrants that radiate from the Deerfield and Waukegan Road intersection. The mixed-use area around this intersection is known as the “Village Center” and includes the Study Area. The Plan notes that “Deerfield’s Village Center represents a significant asset of the Village,” and that “most of Deerfield’s mixed-use development is located in and around the Village Center.” The Plan states that the Village Center “serves as a center of community life in Deerfield and will greatly enrich the community if it is strengthened as such.” Accordingly, the Plan states that “keeping the Village Center strong requires coordinated land use and planning.” Toward this end, the Plan contains the following goals: -Maintain the Village Center as the governmental, recreational, cultural, and visual center of Deerfield. -Seek to strengthen the commercial areas of the Village in order to provide a sound economic base, while maintaining a compatible relationship between commercial areas and other areas of the Village. Source: 2004 Village of Deerfield Comprehensive Plan 2 Given these Village goals under its comprehensive planning process and the conditions briefly summarized above, the Village has made a determination that it is highly desirable to promote the redevelopment of the Study Area. The Village has conceptualized the Study Area as one of the Village’s economic development target areas since the area has experienced upward- trending commercial vacancies over the last few years. National trends that affect the retail market also impact uses in the Study Area. The Village intends to create and implement a “redevelopment plan” as defined in the TIF Act (the “TIF Redevelopment Plan”) in order to increase tax revenues by undertaking redevelopment activities to increase the community’s tax base. The Village is favorably disposed toward supporting redevelopment efforts in areas of underutilization and disinvestment and to proactively position the area in relation to the marketplace. Accordingly, the Village has determined that additional redevelopment strategies take place with the benefit and guidance of comprehensive economic planning by the Village. Through such a coordinated effort, the economic benefits of the Village’s other redevelopment efforts, including current downtown area redevelopment efforts, can be broadened into the proposed TIF District area to further complement the Village’s overall redevelopment activities. Development barriers, inherent with current conditions within the proposed TIF District, which impede economic growth under existing market standards, can be expected to be mitigated. The Village has determined that redevelopment currently planned for the area may only be feasible with public financial assistance coordinated with private sector investment. The creation and utilization of a TIF redevelopment plan is intended by the Village to help provide the assistance required to eliminate conditions detrimental to successful redevelopment of the area. The use of tax increment financing relies upon induced private redevelopment in the area thus creating higher real estate value that would otherwise decline or stagnate without such investment, leading to increased property taxes compared to the previous land use (or lack of use). In this way, the existing tax base for all tax districts is protected and a portion of future increased taxes are pledged to attract the needed private investment. 3 II. QUALIFICATION CRITERIA USED With the assistance of Village staff, Kane, McKenna and Associates, Inc. examined the Study Area from June 2022 through the date of this report, and reviewed information collected for the Study Area to determine the presence or absence of appropriate qualifying factors listed in the TIF Act. The relevant sections of the TIF Act are found below. The TIF Act sets out specific procedures which must be adhered to in designating a redevelopment project area. By definition, a “redevelopment project area” is: “an area designated by the municipality, which is not less in the aggregate than 1½ 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 area and conservation area” Under the TIF Act, a “conservation area” means any improved area within the boundaries of a redevelopment project area located within the territorial limits of the municipality in which 50% or more of the structures in the area have an age of 35 years or more. Such an area is not yet a blighted area, but because of a combination of three or more of the factors identified below, may be considered as a “conservation area”. Conservation Area In accordance with the TIF Act, KMA assessed the following factors to determine qualification of the Study Area as a “conservation area”. Pursuant to the TIF Act, such an area qualifies as a “conservation area” provided that: If improved, industrial, commercial, and residential buildings or improvements are detrimental to the public safety, health or welfare because of a combination of five (5) 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 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. (C) Deterioration: With respect to buildings, defects including, but not limited to major defects in the secondary building components such as doors, windows, porches, gutters and downspouts and fascia. With respect to surface improvements, that the condition of roadways, alleys, curbs, gutters, sidewalks, off-street parking 4 and surface storage areas evidence deterioration, including, but not limited to, surface cracking, crumbling, potholes, depressions, loose paving material and weeds protruding through paved surfaces. (D) Presence of Structures Below Minimum Code Standards: All structures that do not meet the standards of zoning, subdivision, building, fire and other governmental codes applicable to property, but not including housing and property maintenance codes. (E) Illegal Use of Individual Structures: The use of structures in violation of applicable federal, State, or local laws, exclusive of those applicable to the presence of structures below minimum code standards. (F) Excessive Vacancies: The presence of buildings that are unoccupied or under- utilized and that represent an adverse influence on the area because of the frequency, extent or duration of the vacancies. (G) Lack of Ventilation, Light or Sanitary Facilities: The absence of adequate ventilation for light or air circulation in spaces or rooms without windows, or that require the removal of dust, odor, gas, smoke or other noxious airborne materials. Inadequate natural light and ventilation means the absence of skylights or windows for interior spaces or rooms and improper window sizes and amounts by room area to window area ratios. Inadequate sanitary facilities refer to the absence or inadequacy of garbage storage and enclosure, bathroom facilities, hot water and kitchens and structural inadequacies preventing ingress and egress to and from all rooms and units within a building. (H) Inadequate Utilities: Underground and overhead utilities such as storm sewers and storm drainage, sanitary sewers, water lines and gas, telephone and electrical services that are shown to be inadequate. Inadequate utilities are those that are: (i) of insufficient capacity to serve the uses in the redevelopment project area; (ii) deteriorated, antiquated, obsolete or in disrepair; or (iii) lacking within the redevelopment project area. (I) Excessive Land Coverage and Overcrowding of Structures and Community Facilities: The over-intensive use of property and the crowding of buildings and accessory facilities onto a site. Examples of problem conditions warranting the designation of an area as one exhibiting excessive land coverage are: (i) the presence of buildings either improperly situated on parcels or located on parcels of inadequate size and shape in relation to present-day standards of development for health and safety and (ii) the presence of multiple buildings on a single parcel. For there to be a finding of excessive land coverage, these parcels must exhibit one or more of the following conditions: insufficient provision for light and air within or around buildings, increased threat of spread of fire due to the close proximity of buildings, lack of adequate or proper access to a public right-of-way, lack of reasonably required off-street parking or inadequate provision for loading service. 5 (J) Deleterious Land-Use or Layout: The existence of incompatible land-use relationships, buildings occupied by inappropriate mixed-uses or uses considered to be noxious, offensive or unsuitable for the surrounding area. (K) Environmental Clean-Up: The Proposed redevelopment project area has incurred Illinois Environmental Protection Agency or United States Environmental Protection Agency remediation costs for, or a study conducted by an independent consultant recognized as having expertise in environmental remediation has determined a need for the clean-up of hazardous waste, hazardous substances or underground storage tanks required by State or federal law, provided that the remediation costs constitute a material impediment to the development or redevelopment of the redevelopment project area. (L) Lack of Community Planning: The Proposed redevelopment project area was developed prior to or without the benefit or guidance of a community plan. This means that the development occurred prior to the adoption by the municipality of a comprehensive or other community plan or that the plan was not followed at the time of the area’s development. This factor must be documented by evidence of adverse or incompatible land-use relationships, inadequate street layout, improper subdivision, parcels of inadequate shape and size to meet contemporary development standards or other evidence demonstrating an absence of effective community planning. (M) Lagging or Declining EAV: The total equalized assessed value of the proposed redevelopment project area has declined for three (3) of the last five (5) calendar years prior to the year in which the redevelopment project area is designated, or is increasing at an annual rate that is less than the balance of the municipality for three (3) of the last five (5) calendar years, for which information is available or increasing at an annual rate that is less than the Consumer Price Index for All Urban Consumers published by the United States Department of Labor or successor agency for three (3) of the last five (5) calendar years prior to the year in which the redevelopment project area is designated. 6 III. THE STUDY AREA The Study Area is primarily between Hazel Avenue to the north and Deerfield Road to the south, and between Chestnut Street to the west and Rosemary Terrace to the east. Most of the uses within this area are retail/commercial, institutional, recreational and some single- and multi- family residential. 7 IV. METHODOLOGY OF EVALUATION In evaluating the Study Area’s potential qualification as a TIF District, the following methodology was utilized: 1) A site survey of the Study Area was undertaken by representatives from KMA. 2) KMA completed an exterior evaluation of structures, as part of the review. Additionally, KMA assessed 2015 through 2020 tax information from the Lake County Clerk’s Office, Sidwell parcel tax maps, site data, local history (discussions with Village staff) and an evaluation of area-wide factors that have affected the Study Area’s development (e.g., lack of community planning). KMA reviewed the Study Area in its entirety. Village redevelopment goals and objectives for the Study Area were also reviewed with Village staff. A photographic analysis of the Study Area was conducted and was used to aid this evaluation. 3) Existing structures and site conditions were initially surveyed only in the context of checking, to the best and most reasonable extent available, TIF Act criteria factors of specific structures and site conditions on the parcels. 4) The Study Area was examined to assess the applicability of the different factors required for qualification for TIF designation under the TIF Act. Evaluation was made by reviewing the information and determining how each measured when evaluated against the relevant factors. The Study Area was examined to determine the applicability of the thirteen (13) different “conservation area” factors for qualification for TIF designation under the TIF Act. 8 V. QUALIFICATION FINDINGS OF PROPOSED STUDY AREA As a result of KMA’s evaluation of the Study Area included in the proposed TIF District and analysis of each of the eligibility factors summarized in Section II, the following factors are presented to support qualification of part of the proposed TIF District as a “conservation area”. A. Conservation Area Threshold Factors Age Based upon the site survey and data from the Lake County Assessor’s office, over 93% (approximately 27 of the 29 structures) within the Study Area were found to be thirty-five (35) years of age or greater. B. Other Conservation Area Factors (Must Include Three or More Additional Factors) Table 1 Summary of TIF-Qualifying Factors Maximum Possible Factors per Statute Minimum Factors Needed to Qualify per Statute Qualifying Factors Present in Proposed Study Area 13 3 7 • Lagging or Decline in EAV • Obsolescence • Deterioration of Building and Site Improvements • Deleterious Layout • Excessive Vacancies • Inadequate Utilities • Lack of Community Planning Findings for Study Area. The proposed Study Area meets the qualifications for a conservation area under the statutory criteria set forth in the TIF Act. As a first step, KMA determined that approximately 27 of 29 structures, or over 93%, were 35 years in age or older. Secondly, KMA reviewed the thirteen aforementioned criteria needed to qualify the area as a conservation area, determining that seven (7) factors were present: 1. Lagging or Declining EAV. The Act states that if the total equalized assessed value of the proposed redevelopment project area has declined for three (3) of the last five (5) calendar years, or is increasing at an annual rate that is less than the balance of the municipality for three (3) of the last five (5) calendar years, or is increasing at an annual rate that is less than the Consumer Price Index for All Urban Consumers published by the United States Department of Labor or 9 successor agency for three (3) of the last five (5) calendar years. The finding is based on the last 5 tax years for which information is available. The table below indicates that the total EAV of the Redevelopment Project Area has been increasing at an annual rate that is less than the balance of the municipality for three (3) of the last five (5) calendar years for which information is available. The below table also shows that the total EAV of the redevelopment project area has been increasing at an annual rate that is less than the annual CPI for three (3) of the last five (5) years for which information is available Table 2 2021 2020 2019 2018 2017 Total EAV: 6,645,736 6,691,148 6,756,349 6,559,953 6,975,609 % Change from Previous Year: -0.7% -1.0% 3.0% -6.0% 3.1% Village of Deerfield 1,285,429,534 1,479,532,161 1,524,116,833 1,460,222,579 1,468,241,454 Balance of Municipality EAV 1,278,783,798 1,472,841,013 1,517,630,484 1,453,662,626 1,461,265,845 Percentage increase/decrease -13.2% -2.9% 4.4% -0.5% 4.3% CPI All Urban Consumers 4.70% 1.20% 1.8% 2.4% 2.1% (1) Figures in bold for those years in which City EAV exceeded growth rate of EAV within the Study Area. Source: Lake County Assessor Lake County Clerk and U.S. Bureau of Labor Statistics 2. Obsolescence. Under the Act, obsolescence is defined as the condition or process of falling into disuse. Structures have become ill suited for the original use. The Study Area potentially includes both functional and economic obsolescence. Functional obsolescence can be present due to age, physical condition, poor layout and building orientation. As mentioned previously, ninety-three percent (over 93%) of the twenty- nine (29) structures in the Study Area, or 27 structures, are over 35 years of age. Of these, almost ninety-six (96%), are over fifty (50) years old. All of the structures over 35 years old range in age from 50 to 122 years old. The advanced ages of almost all of the structures within the Study Area, along with their associated deterioration, make them obsolete in comparison to contemporary construction and development standards. Another example of functional obsolescence can be seen in three of the buildings within the Study Area which consist of former single-family residential structures, ranging in age from 89 to 122 years old, one of which has been converted to multi-unit commercial uses, demonstrating that their original intended uses are obsolete for their location. One of these three structures has been vacant for one year and the other has been vacant for two years, suggesting that commercial uses within these three structures fail to meet today’s development standards for commercial uses. 10 Functional obsolescence can also be seen in the deterioration of three single-family residences within the Study Area with ages ranging from 69 to 122 years. Another example of functional obsolescence is the 65-year-old AT&T building, built in 1956, which houses a major switching station (rather than a business office), located within the Study Area. Since the infrastructure housed in this building precludes its relocation to a site consistent with its use, the Village has granted this property a special use, further evidence of obsolescence in the middle of what has become Deerfield’s downtown. Evidence of economic obsolescence can be seen in the fact that 20% of the commercial units within the Study Area are vacant. These include the Warehouse Eatery restaurant which has been vacant for approximately three years and the adjacent former Rhapsody Café which has been vacant for approximately six months. Vacancies are also found at the former “Shred 415” shop which has been vacant for two years, and the “Studio Beads” shop which has been vacant for approximately four years. 3. Deterioration of Buildings and Site Improvements. The Act states that with respect to buildings, defects include, but are not limited to, major defects in the secondary building components such as doors, windows, porches, gutters, downspouts and fascia. With respect to surface improvements, the condition of roadways, alleys, curbs, gutters, sidewalks, off-street parking and surface storage areas show evidence of deterioration, including, but not limited to, surface cracking, crumbling, potholes, depressions, loose paving material and weeds protruding through paved surfaces. Several of the properties in the Study Area exhibit deteriorated conditions in both site improvements and building components. These site conditions are characterized by, among other things, the following: •Extensively cracked and crumbling asphalt pavement, along with potholes in parking lot areas and driveways, requiring re-surfacing •Weed and vegetation growth in cracked pavement and/or loose pavement material •Faded and cracked parking space striping and curb caution paint, requiring re-painting •Crumbling curbs and gutters throughout parking areas and approaches, requiring removal and replacement Building deterioration was found to consist of cracked or damaged exterior building surfaces including masonry facades in need of tuckpointing, faded and peeling trim paint, deteriorated windows or doors or window/door frames, rusted metal service doors, rusted metal fencing and broken downspouts, for example. 4.Deleterious Layout. The Act defines “deleterious layout” as existence of incompatible land- use relationships, buildings occupied by inappropriate mixed-uses or uses considered to be noxious, offensive or unsuitable for the surrounding area. 11 Deleterious layout is found within the Study Area as parking lot and building/lot configurations that provide for uncontrolled, hazardous vehicular and pedestrian traffic patterns. According to Village staff, the Village’s northwest quadrant suffers from a disjointed roadway circulation system, characterized by a general lack of a unified system of vehicular and pedestrian traffic, including insufficient connectivity, parking lots that are improperly used for vehicular through traffic, lack of pedestrian sidewalks, and the absence of adequate space for a safe drop-off and pick-up location for a child daycare facility. Accordingly, the Village’s Comprehensive Plan calls for the Village to provide safe and usable vehicle access to/from Deerfield Road that does not encourage cut-through traffic seeking to avoid Waukegan and Deerfield Roads. Improvements include the proposed alignment of the intersection at Waukegan Road and Elder Lane, an enhancement of Jewett Park, and burying overhead Commonwealth Edison power lines, among others. Toward this end, the Village adopted the “Northwest Quadrant Master Plan” in October 2016. This Northwest Quadrant Master Plan is intended to address the lack of safe vehicular and pedestrian movements between the existing destinations in the “northwest quadrant” of the Village Center. The adoption of the Downtown TIF is a strategy for the Village to address these issues. The Village Center’s northeast quadrant, part of which is also located in the Study Area, is characterized by deleterious layout as well. According to Village staff, this quadrant is developed in a piecemeal fashion with no designated public route through this quadrant, and instead, access is a series of private lots connected by drive aisles. The number of sidewalks within this quadrant are inadequate to achieve safe pedestrian traffic flows, and there are no cross-easements or maintenance agreements between property owners to facilitate proper traffic circulation within this quadrant. Parking in this quadrant is disjointed and not equally distributed by property owners within this area. As an example, the US Bank parking lot provides overflow parking for many neighboring businesses whose parking lots are inadequate. Again, the adoption of the Downtown TIF is intended to address many of these issues. 5. Excessive Vacancies. The presence of buildings that are unoccupied or under-utilized and that represent an adverse influence on the area because of the frequency, extent or duration of the vacancies. As stated previously, approximately 20% of the approximately forty (40) commercial units within the Study Area are vacant. Some of the vacancies have been long term, including over many years, and represent an adverse impact on the Study Area. For example, the former “Studio Beads” shop has been vacant for approximately four years and the Warehouse Eatery restaurant has been vacant for approximately three years. Vacancies also include the former Rhapsody Café restaurant which has been vacant for approximately six months and the former “Shred 415” shop which has been vacant for approximately two years. Other vacancies include two of the three former single-family structures that were converted to commercial uses and two vacancies in the five-unit commercial strip center on the north side of Deerfield Road east of Waukegan Road. 12 6. Inadequate Utilities. The Act defines “inadequate utilities” as underground and overhead utilities such as storm sewers and storm drainage, sanitary sewers, water lines and gas, telephone and electrical services that are shown to be inadequate. Inadequate utilities are those that are: (i) of insufficient capacity to serve the uses in the Redevelopment Project Area; (ii) deteriorated, antiquated, obsolete or in disrepair; or (iii) lacking within the Redevelopment Project Area. A certain section of twelve-inch water main along Deerfield Road within the Study Area is approximately sixty (60) years old and is in need of replacement due to its age, condition and shallow depth beneath the Metra underpass. The 12-inch water main system along Waukegan Road, between Central Avenue and North Avenue (including the Study Area) is approximately 60 years old, and is in need of replacement due to age, condition and numerous water main breaks. In addition, there are approximately fifty (50) lead service lines in this section of the water system, all of which need replacement under the new IEPA mandate. Within the Study Area, the storm sewer that conveys runoff from Waukegan Road westbound to the West Fork of the North Branch of the Chicago River is undersized. This has contributed to problematic flooding during heavy rain events. A recent storm water master plan presents extensive infrastructure work in the twenty-year improvement plan to address this. The storm sewer that conveys runoff along Waukegan Road from Deerfield Road to the north is approximately sixty (60) years old, is undersized, and is in poor condition. This area has experienced minor flooding. The storm sewer main is shallow and due to its location within a major arterial (Waukegan Road), is a challenge to replace. The sanitary sewer system in the Study Area conveys wastewater along Deerfield Road between Waukegan Road and the Wastewater pumping station. This system is undersized and is shallow due to the Metra underpass and performing routine work or capacity improvements is challenging. The sanitary system in the Study Area also regularly experiences grease blockages due to the lack of grease interceptor infrastructure at the many restaurants in the area. Grease blockages have historically caused backups in the system. Two sanitary sewers systems convey wastewater along Waukegan Road, north and south of Deerfield Road. This system is undersized and is in extremely poor condition requiring chronic repairs and installation of CIPP lining of this section. Full replacement is needed but is cost prohibitive. The Metra bridge that grade separates Deerfield Road and the Metra Rail was built in 1905. While the bridge is in stable condition it has been identified by Lake County DOT and the Village for replacement. The vertical clearance of the bridge is only 11’-9”, being substandard from the required 14’-6” that is set by the FHWA. As a result, the bridge is routinely struck by over-height trucks and other vehicles, typically six to ten times per year, causing major traffic delays. 7. Lack of Community Planning. The Redevelopment Project Area was developed prior to or without the benefit or guidance of a community plan. This means that the development occurred prior to the adoption by the municipality of a comprehensive or other community plan or that the plan was not followed at the time of the area’s development. This factor must be documented by evidence of adverse or incompatible land-use relationships, inadequate street layout, improper 13 subdivision, parcels of inadequate shape and size to meet contemporary development standards or other evidence demonstrating an absence of effective community planning. Formal planning was initiated in the Village of Deerfield with adoption of the Village’s first comprehensive plan in 1955. Most of the Study Area was developed prior to 1955, and as a result, is characterized by ineffective community planning that has generated adverse land use relationships, inadequate street layout, and parcels of inadequate shape and size that do not meet contemporary development standards. Most of the issues resulting from a lack of community planning are those that were described in Section 4 above. The Village’s current Comprehensive Plan, dated 2004, targets two “sub-areas” within the Study Area (the “Village Center” and “Northwest Quadrant” subareas) for specific planning strategies to address these issues. In the Village Center sub-area, the current Comprehensive Plan calls for the elimination of curb cuts to make Deerfield Road more pedestrian friendly and to ensure adequate parking, among other physical improvements. In the Northwest Quadrant sub-area, plans call for improving pedestrian safety, a vibrant public campus, an attractive safer, walkable , and environmentally friendly atmosphere, a designated pre-school drop-off zone and to retain the cluster of civic assets in the quadrant. 14 VI. SUMMARY OF FINDINGS; OVERALL ASSESSMENT OF QUALIFICATION The following is a summary of relevant qualification findings as they relate to the Village potentially designating the proposed Study Area as a TIF District: • The area is contiguous and is greater than 1½ acres in size • The proposed Study Area would meet the criteria for a conservation area TIF District if the Village pursues this course of action In the judgment of KMA, these findings would be sufficient for the Village to proceed with the designation of the Study Area as a TIF District. Exhibit A Boundary Map DEERFIELD ROAD ROBERT YORK AVJEWETT PARK DR CHESTNUT STREETHAZEL AVENUE PARK AVSPRI NGFI ELD AVJOURNAL PLWAUKEGAN ROADROSEMARY TERTODD CTORCHARD STCAROLINE CTWALNUT ST REVISED: 08-09-2022, 08-17-2022, 09-06-2022 DOWNTOWN TIF CALC. DWN. CHKD. SCALE: DATE: SHEET OF Rosemont, Illinois 60018 (847) 823-0500 9575 West Higgins Road, Suite 600 ENGINEERING, LTD. VILLAGE OF DEERFIELD PROJECT NO. DRAWING NO. DOWNTOWN TIF VILLAGE OF DEERFIELD, ILLINOIS JRM AJK KJR 08-01-2022 IN PREPARED FOR 1 1 1"=100' 220426 S:\DEERFIELD\220426\SURVEY\TIF220426B.SURSCALE IN FEET 0100 100 TIF220426B 53.95 +/- DOWNTOWN TIF POINT OF BEGINNING NOT INCLUDED PIN 16-29-420-007 Exhibit B Tax Parcel List 16-29-420-001 16-29-420-002 16-29-420-003 16-29-420-004 16-29-420-005 16-29-420-006 16-29-421-002 16-29-421-003 16-29-421-004 16-29-421-005 16-29-421-006 16-29-400-011 16-29-400-014 16-29-400-015 16-29-400-016 16-29-400-018 16-29-400-020 16-28-321-009 16-28-321-010 16-28-321-011 16-28-321-012 16-28-321-013 16-28-321-014 16-28-321-015 16-28-321-007 16-28-321-008 16-28-321-005 16-28-321-006 16-28-321-016 16-28-321-017 16-28-321-018 16-28-321-019 16-28-321-020 16-28-321-021 16-28-300-005 16-28-300-006 16-28-300-007 16-28-300-008 16-28-300-009 16-28-300-013 16-28-300-014 16-28-300-015 16-28-300-016 16-32-200-088 16-32-200-009 16-32-200-010 16-32-200-012 16-32-200-049 16-32-200-050 16-32-200-089 16-32-207-003 16-32-207-004 16-28-322-009 16-28-322-010 16-28-322-011 16-28-322-014 16-28-322-017 16-28-322-019 16-28-322-020 16-28-322-021 16-28-322-037 16-28-322-039 16-28-322-029 16-28-322-022 16-28-316-004 16-28-316-002 16-28-316-001 16-28-300-004 16-28-300-001 EXHIBIT 4 EXISTING LAND USE MAP 538 7455 6 8 766 932557932 563 1010 1034947937 863810 664 9446 5 51030 5 7 28459318501006910741711 9501016 941 849937-9419201010561861 900935 100210 09 839915859541 1010 90570410399041052943547101010209399361015100010308181013 745833-84510261045707 100110371020 722833966927956 10261022720-724 9 1 5 83974310321036 9269 0 51021 85010508491020914946-948942-9445 3 1 807-8131015 9 1 71027 730953912-91410309208481050 916-920719727 65 4 10456541019 8368587558291040 650733 8387208348571029924704 8259 1 1 822853933-935 6 5 4 1018100010138508 2 7947 5 6 9957 539 1003 945 101110007139 658 2 5 636 84610296 4 8 9509459 0 31025907 912843 8229501001 960708846637 942860 8218121031 534826920944956916649 939 5 6 4735 908740932 1029641 808 812-816 1030101510071051646-660729901 626 10141030 955 901 9201010933701 808940925 863806 807862103210408438566016389268516658529401000 648 1001-1015 1038642 770832948 840802-82083010208387379638457751035857860 711 9248206401035 10099705 8 4 6759139056951035 780930-9408 5 9844834 806-808 9239211030 955938927944 949 913 10121005950102185110151006644 934 5 7 6 66 3 1040 6601012 9338505358249391036 5 9 0 634 8448468325 4 51025869924- 9281024101610339388388309029 0 9 725856551 700933 840104410 24 855 560919827950949913910934755600943-951104180085 3 9091040843915930938944905625-655 760928835750-760761828842826636 8 2 91037 710 Kipling Park Maplewood Park Deerfield Square DeerfieldVillageCentre 5 6 8 745538 766 932932557 563 1010 1034937923863664 9445 7 285091092110301030 950931 9558497419389201016 861561 935 9271002839944 915949 1039541905 913 54793990410129369431005100010209508181015 1021104510138511020 833-845101510061001956 644 1037722934 720-724 9665 7 61026915 66 3 1040 7431032 66010121036 9339269 0 5 1050850849914535942-9448245 3 1 1015 93995310369209 1 7 5 9 0916-9206341027 84465 4 912-91484610198328581050 829 650 5 4 5 719 10451025838733869822924- 92883485710246 5 4 9249 1 110131016 8538 2 71033933-935 5 6 910009388389471003957 83010009028 2 5 945 9 0 9 6 4 8 636 9507259 0 3907 8565511025822700 8431001 933960840637 104484682110 24 8551031 560826 920944939919 5 6 4916827740 90895010297299491030808 9 1 392 01030910934 7551007600 808626 701 940925 863943-95186210401041800856601 85 3 9098511040638665 1000 8521038843648 948 91510209301001-1015 737938770944845905857832625-655 820840760928830835838640 750-76010097755 8 47619138289058421035826780636930-9408 2 9 8 5 9 1037844710834806-808 947 810 6 5 5 8451006711 941 937-941101090010 09 8591010 7041052101010307451026707 833927102283910218501020946-948807-8137301030848727 654 83675510407201029704 82510188505391011713965 8461029945912950 708942860 812 534956649 735932 641 812-8161015 1051646-660 9 0 1 1014 955 901 1010933806 8071032843926940642 802-8209631035860 711 9241035970675695 Kipling Park Maplewood Park Deerfield Square DeerfieldVillageCentre 0 80 160 240 320 Feet 1 inch = 136 feetµ Multi-Family Residential Retail Services Public Institutional Transportation/ Parking/ Utilities Open Spac e Village of DeerfieldDowntown TIF FutureLand Use Map EXHIBIT 5 PROPOSED LAND USE MAP 538 7455 6 8 766 932557932 563 1010 1034947937 863810 664 9446 5 51030 5 7 28459318501006910741711 9501016 941 849937-9419201010561861 900935 100210 09 839915859541 1010 90570410399041052943547101010209399361015100010308181013 745833-84510261045707 100110371020 722833966927956 10261022720-724 9 1 5 83974310321036 9269 0 51021 85010508491020914946-948942-9445 3 1 807-8131015 9 1 71027 730953912-91410309208481050 916-920719727 65 4 10456541019 8368587558291040 650733 8387208348571029924704 8259 1 1 822853933-935 6 5 4 1018100010138508 2 7947 5 6 9957 539 1003 945 101110007139 658 2 5 636 84610296 4 8 9509459 0 31025907 912843 8229501001 960708846637 942860 8218121031 534826920944956916649 939 5 6 4735 908740932 1029641 808 812-816 1030101510071051646-660729901 626 10141030 955 901 9201010933701 808940925 863806 807862103210408438566016389268516658529401000 648 1001-1015 1038642 770832948 840802-82083010208387379638457751035857860 711 9248206401035 10099705 8 4 6759139056951035 780930-9408 5 9844834 806-808 9239211030 955938927944 949 913 10121005950102185110151006644 934 5 7 6 66 3 1040 6601012 9338505358249391036 5 9 0 634 8448468325 4 51025869924- 9281024101610339388388309029 0 9 725856551 700933 840104410 24 855 560919827950949913910934755600943-951104180085 3 9091040843915930938944905625-655 760928835750-760761828842826636 8 2 91037 710 Kipling Park Maplewood Park Deerfield Square DeerfieldVillageCentre 5 6 8 745538 766 932932557 563 1010 1034937923863664 9445 7 285091092110301030 950931 9558497419389201016 861561 935 9271002839944 915949 1039541905 913 54793990410129369431005100010209508181015 1021104510138511020 833-845101510061001956 644 1037722934 720-724 9665 7 61026915 66 3 1040 7431032 66010121036 9339269 0 5 1050850849914535942-9448245 3 1 1015 93995310369209 1 7 5 9 0916-9206341027 84465 4 912-91484610198328581050 829 650 5 4 5 719 10451025838733869822924- 92883485710246 5 4 9249 1 110131016 8538 2 71033933-935 5 6 910009388389471003957 83010009028 2 5 945 9 0 9 6 4 8 636 9507259 0 3907 8565511025822700 8431001 933960840637 104484682110 24 8551031 560826 920944939919 5 6 4916827740 90895010297299491030808 9 1 392 01030910934 7551007600 808626 701 940925 863943-95186210401041800856601 85 3 9098511040638665 1000 8521038843648 948 91510209301001-1015 737938770944845905857832625-655 820840760928830835838640 750-76010097755 8 47619138289058421035826780636930-9408 2 9 8 5 9 1037844710834806-808 947 810 6 5 5 8451006711 941 937-941101090010 09 8591010 7041052101010307451026707 833927102283910218501020946-948807-8137301030848727 654 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