The South Elgin Village Board nixed a proposal this week for a manufactured home community that would have added nearly 300 residences to the village.
Developers PND 3001 Investments had sought a zoning change, special use permit and site plan approval for the 296 units it wanted to place on an 88-acre site on Umbdenstock Road. The development was targeted to residents 55 and older.
But concerns about how the state taxes manufactured homes — also called mobile homes — and how those taxes would be split among governing bodies stopped some trustees from approving the project.
The state of Illinois taxes mobile homes as "chattel." While a buyer pays sales tax on the initial home purchase, an annual fee to the state and rent to the owner for use of the land, the property owner only pays taxes for the land on which the homes are located.
Larry Lapin of PND 3001 estimated taxes on the property would be about $400,000 a year. The developers had offered to add a clause to the agreement to pay an additional $350 per unit, which would be spilt between the village and the South Elgin & Countryside Fire Protection District.
Trustee Scott Richmond said he could not support the development.
The land is currently zoned for industrial use. There are housing developments on two sides and an industrial park to the south. To the east is farmland, which could be developed if the village is able to expand McLean Boulevard to four lanes from Spring Street to Stearns Road.
Trustee Greg Lieser agreed with Richmond, adding he was concerned that if the property was sold, new owners would not follow the agreement or would seek to have it changed.
"There is too much uncertainty with the owners and rent, and what this might look like in 10 or 20 years. I do appreciate that you listened. I wish you would have come in originally with a solid plan," Lieser said.
PND had agreed to limit the development to residents 55 and older, restricting children from living there for more than 14 days at a time, and that each unit would have an attached garage. Those caveats were added following discussions with the Planning and Zoning Commission and later with the Village Board.
Trustees John Sweet and Mike Kolodziej voted in favor of the development.
"They look nice … different from a stick-built home but not really," Sweet said. "I think it is an alternative," and adds another option to the village's housing stock, he said.
"We need more diversity in our housing," he said.
There have been no other proposals for the land, Kolodziej added.
"It has been in the village for 20 years and nothing has been proposed there," he said.