Title
Intergovernmental Agreement by and among the Village of Orland Park, Orland School District 135, and Consolidated High School District 230 - 2025(A)
History
Summary
In 2004, the Village established the Main Street Triangle (MST) Tax Increment Financing (TIF) District. Soon after the establishment of the MST TIF District in 2004, the Village sought to amend the MST TIF District Ordinance and sought support from the Orland School District 135 (D135) and Consolidated High School District 230 (D230). Ultimately, an Intergovernmental Agreement was approved (“2007 IGA”).
An important provision of the 2007 IGA (tinyurl.com/muwp34cf) related to the distribution of surplus funds from the special tax allocation fund. Unfortunately, a 2003 review (tinyurl.com/5n963tua) of the 2007 IGA by Attorney Michael Roth, of Ice Miller, found that the provision regarding distribution of surplus funds from the special tax allocation fund could not be legally implemented.
In the spirit of intergovernmental cooperation, and for the best interests of our shared constituencies, the Village, D135, and D230 have drafted a new Intergovernmental Agreement (“2025(A) IGA”) that resolves the disagreement regarding distribution of surplus funds and MST TIF District per pupil reimbursement.
2025(A) Intergovernmental Agreement (IGA)
Recently, the Village, D135, and D230 have been in negotiations to draft an IGA that is mutually beneficial to our shared constituencies. The proposed 2025(A) IGA incorporates the following:
1. The 2007 IGA is hereby nullified and any pending or probable litigation as a result of the 2007 IGA is abandoned.
2. The Parties agree to eliminate the Main Street Triangle TIF District by December 31, 2025, which is four years sooner than had originally been planned. By doing so, D135 and D230 are estimated to capture a combined $2.5 million in new non-tax cap revenue ($1.4 million to D135 and $1.0 million D230). Other impacted taxing districts will also receive tax distribution sooner.
3. D135 and D230 agree to abandon all past and current claims relative to per pupil reimbursements for any students generated within the MST TIF District.
Financial Impact
As stipulated in the Intergovernmental Agreement.
Recommended Action/Motion
I move to approve an Intergovernmental Agreement between the Village of Orland Park, Orland School District 135, and Consolidated High School District 230, referred to as the 2025(A) IGA;
AND
Authorize the Village President to execute the 2025(A) IGA subject to Village Attorney review.