Oak Forest creates tax incentive for vacant auto dealership development

• Reprints

Updated: March 17, 2012 10:18AM

Oak Forest has created a special taxing incentive district for a vacant auto dealership.

The measure, approved by the city council Tuesday night, creates a tax increment financing district near 159th Street and Terrace Drive, and includes the former Community Motors, a church, the Bjorkland Group Home and Oak Forest Dental.

City officials hope the reduced tax rules will spur development.

The Community Motors site spans more than eight acres.

Since the auto dealership closed, the surrounding area has seen a serious economic decline, community development director Adam Dotson said.

“There’s many properties in this community that we could talk about for a TIF,” Dotson said. “But I don’t think there’s one more so than this particular property and community, because of its size and what it did by producing sales tax. We need to find another use for this property.”

TIFs are tax instruments used to subsidize infrastructure improvements in areas that need redevelopment, with the idea of reaping the incremental tax dollars once property values improve in the district.

Oak Forest was eligible for the TIF, in part, because a decline of equalized assessed value in the area. It was one of the three qualifying factors that helped the city meet the state’s requirements for the special taxing district.

“The Community Motors site has seen a decline in property values. Not only does it hurt the city, but it hurts the school district also,” Dotson said. “TIF plays a very key role in helping properties get back on the tax rolls and be a positive contributor to the schools as well as the city.”