Village Council recently approved a Commercial Redevelopment District, which will affect 99 parcels within the village limits. The idea is to lower taxes so developers are more willing to spend money on local projects.
“It provides a tax break for property owners who are willing to make a substantial investment and/or create jobs within the village,” Village Manager Chris Burns explained.
With the Kim Van Kampen Epicurean Village project about to begin in the buildings immediately west of the Village Hall, Burns said other developers are expressing interest in investing in the village.
“In some cases, they simply cannot make the numbers work for various reasons,” she said.
Some of those reasons include contaminated sites and substandard soils for footings and foundations.
“By providing some financial incentives, it spurs investment that might not otherwise make financial sense,” Burns said.
In exchange for making a large investment and/or creating jobs, commercial property owners could qualify for a 50 percent tax break during a specific period of time. The maximum allowable period is 12 years.
“But the investment has to be substantial to get the full 12-year abatement,” Burns noted.
The hope is to put Spring Lake on the mind of investors and developers.
“A developer may be contemplating several sites in various communities,” Burns said. “If this tool incentivizes them to choose to invest in the village, then we will consider it a 'win.'”
A detailed point system determines the length of the abatement the developer qualifies for.
“There are points awarded for job creation, investment, sustainability and other creative development ideas,” Burns said.