The Mellody Farms shopping center sign signals the intention of Chicago-based Regency Centers to develop the site in keeping with the commercial corridor along Route 21 in Vernon Hills. (Photo by Gregory Harutunian/for Chronicle Media)

The crowded thicket of volunteer shrubs and trees that mark the old Mellody Farms site in Vernon Hills, a bygone remnant of the Cuneo family properties, will change radically into a commercial and residential development as the village pursues the creation of a tax-increment financing district for the 53-acre site.

Located at the intersection of routes 21 and 60, the fallow property is tagged as “the crown jewel” in the village’s master comprehensive plan, due to its commercial potential and proximity to the Hawthorn Shopping Center, with its outlying lots, positioned adjacently to the west. An actual purchase negotiation has not been solidified until now.

“There have been a number of proposals for the property, and I’ve been here with Vernon Hills for the last 16 years,” said Village Manager John Kalmar. “The issue has always been how much the land costs. Every time someone came in, they were not able to complete the purchase because of the price, or factors with the economy.

“This present developer is now in the midst of plan reviews with our staff, and March 9 was the first formal meeting of the village’s Joint Review Board, where we pulled the various taxing bodies into a public session,” he said. “They received the TIF eligibility report for review and comment.”

The Oak Brook-based firm of Regency Centers, with it corporate headquarters in Florida, has made the foray into placing a mixed use of commercial entities and residential apartment dwellings on the parcel, where a large portion is still being farmed. Wetlands are also part of the topography, along with debris from the Route 22 project, more than a decade ago.

The firm, with an estimated $8 billion in capital holdings, is seeking incentives from the village, which prompted a TIF feasibility study, which was completed by Chicago-based Kane, McKenna, and Associates, Inc. for the village. Their findings indicated the parcel met the TIF qualification as “blighted” land that required the special taxing distinction for improvements to be made

“The big part is the remediation work to implement their plan, where this empty site is on a fully developed commercial corridor,” said Joe Carey, the assistant village manager. “The first step was identifying the TIF criteria factors. A portion is being framed, but there are also wetlands, and what is described as household waste, debris such as buried 55-gal. drums, and that’s just from a visual inspection.”

Infrastructure is a major consideration for the project, as well as the environmental impact on the parcel and surrounding perimeters. Those upgrades could be provided by a TIF district.

The purpose of a TIF is to help improve blighted areas within a municipality.

Once a TIF District is established, the base value is determined. As improvements are made to the property within the TIF, the assessed valuation increases. Any increase over the base value is deposited into a TIF account that is used for economic development. The maximum length of the TIF is 23 years.

The hope is that once the TIF expires, the improvements to the property and subsequent increase in property tax revenue will help local taxing bodies, such as schools.

“Regency Centers has had extensive negotiations with the Cuneo Trust,” said Kalmar. “The engineering is ongoing presently, and they are doing it as part of the property assessment. The Planning and Zoning Commission will hold a public hearing on the matter, although it has not been set, at this point.”

The village’s approval of the designation would also necessitate the concurrence of other taxing entities in the same jurisdiction such as school and fire protection districts, and township governments. “We met with the various taxing bodies before any formal meetings were held, just to take the temperature,” said Carey.

“They were interested in the redevelopment plan, but even more so, just talking with them and they appreciated it.”

A public hearing on the TIF proposal is slated for April 19, prior to the Village Board meeting. Carey also said the board may not vote on the matter at that session.

— TIF planned at Vernon Hills Cuneo site —