Legislation regarding impact fees for schools on hold after clearing General Assembly

Legislation clarifying municipal officials’ ability to impose fees that help schools pay for construction necessitated by new housing developments has cleared the Illinois General Assembly — but it isn’t being enacted just yet.

The proposal was prompted by a dispute pitting Mundelein officials and Mundelein’s Wirtz family against two school districts that will be affected by the proposed Ivanhoe Village residential and commercial development. Mundelein Park & Recreation District officials are concerned about the project’s impact, too.

The Blackhawks-owning Wirtz family and its Wirtz Realty Corporation want to construct thousands of houses, townhouses and apartments — as well as retail, light industrial and buildings — on the family’s 773-acre ancestral property near Route 60 and Peterson Road, on the village’s northwest side.

Officials with Fremont Elementary School District 79 and Mundelein High School District 120 predict Ivanhoe Village will significantly increase enrollment on their campuses. Parks officials believe the development will result in more customers for its facilities and programs, even though it will have its own parks system.

“They won’t have all the amenities we have,” park district Executive Director Ron Salski said.

Under a deal approved in April between the Mundelein village board and Wirtz Realty, the school districts and the Fremont Public Library District will receive payments from Wirtz Realty based on formulas corresponding to the homes being built.

The arrangement was expected to generate about $6.6 million for District 79, about $4.3 million for District 120 and $947,000 for the library.

School officials say those sums aren’t large enough. District 79 officials wanted $90 million from Wirtz Realty; District 120 officials wanted $22 million.

Park district leaders were excluded from the negotiations. Wirtz Realty isn’t contractually obligated to give the park district a dime.

The impact-fee legislation was proposed as a potential solution to the school districts’ dispute. It clarifies that municipalities can impose fees on developers to help fund new school buildings that are directly tied to specific developments, proponents have said.

The bill doesn’t address park districts’ needs.

Key sponsors include state Reps. Daniel Didech of Buffalo Grove and Laura Faver Dias of Grayslake and state Sens. Adriane Johnson of Buffalo Grove and Mary Edly-Allen of Libertyville, all Democrats.

The state House approved the plan in early April, and the Senate did so May 29 with an amendment establishing it will be effective immediately. The amendment required another House vote, which happened May 31.

The same day, however, Didech placed a procedural hold on the proposal to delay its delivery to Gov. JB Pritzker for his signature.

Didech said he ordered the hold to allow village and school officials and Wirtz family representatives an opportunity to reset their conversation. It follows the election of a new mayor in Mundelein, Robin Meier, and the addition of three new trustees to the village board.

“With new leadership at the village, I am optimistic that all parties can come to the table with a renewed commitment to collaboration,” Didech said.

Fremont District 79 Superintendent Trisha Kocanda said the hold should spur more productive deliberations with village leaders.

“It’s important we meet sooner rather than later so that current taxpayers aren’t unfairly impacted by this growth,” Kocanda said through a spokesperson.

District 120 Superintendent Kevin Myers, who’s stepping down at the end of June, similarly welcomed a fresh opportunity to work with the village.

Meier said she and representatives of the other agencies affected by the proposed development already have restarted talks. Formal meetings are scheduled for this month, too, she said, and more have been proposed for July.

More meaningful conversations will be had once Pritzker signs the bill into law, Meier said.

The park district’s Salski called the new conversations “refreshing.” The Wirtz family also wants to talk, he said.

“We’re appreciative that they want to sit down,” Salski said.