One of the most important responsibilities of any municipal government is to steward thoughtful economic development. In addition to providing new retail amenities, new housing options and other community benefits, development can have a profound impact on the property tax base over the long term. These considerations loom large as the village of River Forest evaluates the proposed development at Madison Street and Ashland Avenue.
Stabilizing property taxes is a guiding principle for the village. Like most residents, members of the village board have watched property tax bills rise year after year and are committed to using the tools of local government to help address the issue. While there are many factors that can determine an individual property tax bill, the main drivers are: 1) the levies established by local taxing bodies; 2) the overall tax base within each taxing body’s district; and 3) the assessed value of an individual property.
The village’s levy makes up about 12% of a River Forest property tax bill and the Cook County Assessor determines property values. So expanding the tax base through development is the one area where the village can make a real impact.
Development opportunities are rare in River Forest because we are a small, mainly residential community, and a significant amount of land is owned by tax-exempt institutions. This is why the village took decisive steps to foster development on the Madison Street property. We did so by acquiring all parcels between 2016 and 2018, demolishing and remediating the property, and actively marketing it to developers through the respected real estate firm, JLL, throughout 2025.
As a result of these determined efforts over 10 years, we now have a proposed development that is projected to pay approximately $600,000 in annual property taxes. As with other proposed developments, the village commissioned an expert analysis by its economic development consultant, Ryan LLC, to provide these projections.
This approach has proven reliable. In 2018, the village engaged with Ehlers & Associates to project that the then-proposed Sheridan senior living complex would provide $581,000 in annual property taxes. After its first full year on the tax rolls, the property paid $737,045.44. In 2024, it paid $775,646.96 (source: Cook County Property Tax Portal).
Of course, one new development isn’t a silver bullet, and it won’t suddenly cause a drop in anyone’s property tax bill next year. But the math is straightforward: future property taxes will be higher if the Madison Street property contributes nothing than if it contributes an estimated $600,000 annually to the tax base.
The Madison Street project represents a practical step forward. It reflects a long-term strategy pursued by successive village boards to strengthen the local tax base through responsible economic development – supporting our local schools, parks and public services, while helping moderate the tax burden residents will otherwise carry in the years ahead.
Jessica Spencer
Asst. Village Administrator
River Forest