South Elgin Village Board members remain undecided if a manufactured home subdivision is right for the village given that some of the houses will lack garages and property tax income will be less than for standard homes.
Developers PND 3001 Investments presented the board with its plan for the Meridian Pointe subdivision at last week’s meeting. To be built, it requires board approval of a special use permit, preliminary plat and site plan, all of which were recommended by the village’s Planning and Zoning Commission in October.
The development calls for the 88-acre site to be set up for 269 home lots designed for people ages 55 and older, Assistant City Manager Megan Golden said. The units would be owned by residents, who would pay to lease the land from PND.
The state taxes manufactured homes as chattel — moveable, stick-built and temporary. The owners pay a one-time sales tax at the time of purchase and an annual $200 mobile home fee but do not pay annual property taxes other than small amounts for amenities they might add, such as a garage or deck.
“My concern … is I am not sure we are maximizing our revenues of tax dollar,” Trustee Mike Kolodziej said of the development.
There are few properties in the area for comparison. Willow Lakes Estates in Elgin, an 111-acre manufactured home community, generated about $960,000 in property taxes in 2018 paid by owners MHC-Deanza Financing Limited Partnership, Kane County Assessor Mark Armstrong said.
The assessment included the land and some amenities, such as streets, a clubhouse and a pool, Armstrong said.
PND is offering to build garages for buyers but only if the owner wants one.
“If garages are optional, will it be half with, half without?” Trustee Scott Richmon asked. “It becomes a hodgepodge development when you have that.”
A traffic study, requested by the Planning and Zoning Commission, found a traffic signal would likely be needed at Umbdenstock and Stearns roads. PND officials told the commission they would pay up to $250,000 for the light, which is not enough to cover the $400,000 cost, the village’s engineering firm said.
An additional traffic light might also be needed at Hopps and Umbdenstock roads, which falls into Elgin’s jurisdiction, the study said.
Peter Lapin, one of PND’s principals, said he believes the manufactured homes may be the only good residential use for the property. It is surrounded by single-family homes on two sides and an industrial park and farm land on the other two.
“This is a senior living alternative in the state of Illinois. If not a manufactured home community there, I don’t think it will ever be residential,” Lapin said.
A final vote will be made at a future meeting, Golden said.