ELK GROVE VILLAGE, Ill. (CBS) — Elk Grove Village trustees were set to vote Tuesday night on the proposed creation of an $860 million special taxing district to pay for renovation of a major industrial park.

WBBM Newsradio’s John Cody reports Elk Grove Village Mayor Craig Johnson and village officials said the proposed tax increment financing district is needed to pay for upgraded utilities, infrastructure renovations, and streetscape improvements.

Johnson said the village could not afford to redevelop the sprawling business park without the proposed TIF district. He cited a 30 percent decline in property tax revenue, and a declining occupancy rate at the 917-acre parcel.

“Most of the buildings inside that area that we’re TIFing is over 35 years old. They’re outdated, antiquated. They’ve got low roofs, small docks,” he said. “They’re not modernized at what companies are looking for today.”

Opponents have argued siphoning property tax revenue away from basic government services to fund the TIF district would result in higher property tax bills for residents outside the district.

Johnson said he’s optimistic the TIF district will be approved, saying smaller TIF districts already in place have begun paying off early.