Sherwood approves TIF amendment and up to $349,000 for High Cliff Golf Course irrigation; agreement includes easements and covenants

The Village of Sherwood moved ahead on downtown and recreation investments in spring 2010, amending Tax Increment District (TID) plans and approving a TID‑funded redevelopment agreement to contribute to an irrigation system at High Cliff Golf Course.

Financial adviser David Wagner presented options in February for closing or reducing the village’s Tax Increment District #1. During April hearings and debate, Village legal counsel David Farwell of Foley & Lardner explained a proposed redevelopment agreement under which the Village would provide TID funds toward the golf course irrigation project (initial estimates ranged from about $318,000 to $349,000). In exchange, the golf course agreed to grant trail easements, convey two one‑acre parcels to the Village and offer fee concessions for village residents. The Board discussed protections to secure the Village’s investment, including a 25‑year operational covenant, lender consent and escrow/repayment language to protect against future transfers.

Trustees amended the draft agreement to cap the Village contribution at $349,000 and to limit the fee‑concession language to ensure fairness with local competitors. The Board approved the amended Resolution authorizing the grant/loan to High Cliff Golf Course; subsequent Community Development Authority (CDA) action and a Village resolution authorized a grant from the Village to the CDA to make a loan to the golf course. Board documents show Village disbursement of $116,321.70 on May 7, 2010 as part of the agreed process.

Village members pressed for additional protections in committee and during public sessions—questions included how the Village would be protected if ownership changed, whether the improvements would be secured against sale, and whether the Village would recoup deprecation if the course sold. Counsel advised that the agreement would be binding on successors and that lender consent and non‑disturbance clauses would be used to protect the Village; an escrow mechanism was discussed as an additional safeguard.

Why it matters: The agreement uses TID funds—tax increment revenues set aside for redevelopment—directly toward a private property improvement tied to public benefits (trail easements, property conveyance and fee concessions). Trustees approved limits, legal covenants and additional oversight intended to protect public dollars while advancing a project that the Board and CDA argued would support local recreation and downtown redevelopment.

Next steps: The Village and CDA will monitor contract completion, confirm easement and deed documents are recorded as promised, and track loan repayment provisions to ensure TID funds are recovered or secured if the developer defaults.