Election Primer to April 9th

Brief Demographic Summary

Arlington Heights is organized as a Village with a population of 75,178 down 1.1% from 2000 with a median income of $70,000. White residents make up 84% of the population. There are 48,043 registered voters. Income and wages are distributed at 46% of the population is above $75,000 and 18% below $40,000 per year.

The Coming Local Election

During recent candidate forums in Arlington Heights, Mount Prospect and Buffalo Grove there was a common talking point. That is how to fill vacant storefronts. Vacant storefronts and excess business capacity in these municipalities are a result of a reckless mindset of "build it and they will come". See previous post 'now is the time to subsidize homeowners not businesses'.

During the 1990's municipal boards catered to the developer crowd through TIF districts, zoning changes and special treatment to overbuild their district in a 'beggar thy neighbor' to attract business. Now a structurally high vacancy rate exists especially during tough economic times.

Various forms of business tax incentives were discussed to attract business at each forum. Once again it was business tax incentives that created the excess capacity in the first place. Excess capacity was built with no regard for the customer demand side of the equation.

The Financially Stressed Arlington Heights Homeowner

According to a study by the Chicago Metropolitan Agency for Planning (CMAP) the number of Arlington Heights households paying more than 30 percent of their income on housing, considered as cost-burdened, increased from 21% in 2000 to 32% in 2010.

In Mount Prospect during the same period the cost-burdened rose from 30% to 40%. In Buffalo Grove the cost-burdened household rose from 22% to 40%. If Arlington Heights continues on this trend it will have about the same cost burdened households in 10 years as Rolling Meadows today.

In Arlington Heights property tax revenue used in the General Fund is $20M. The homeowner contributes about $13.6M and business contributes about $6.4M. Yet businesses get the direct tax breaks. The homeowner should receive the tax subsidies that will directly support business development. A homeowner tax subsidy that must be spent locally will support business and help the struggling homeowner as well.

The Metropolis Theatre

The Metropolis Theatre was purchased in 2005 for $2M of TIF funds to bail out downtown developer Mr. Mark Anderson. The theatre has required a cash subsidy each year from the Village of about $150,000 to $200,000 plus capital funds to keep the doors open.

Village president Arlene Mulder at the time and now claims the Metropolis to be the economic engine of the downtown development. A dubious claim at best given the structurally high vacancy rate. Sharing an excess capacity problem with our neighbors is really no consolation.

The election is Tuesday, April 9 2013.