Fremont District 79 and Mundelein High School District 120 say the village's fees for the Walnut Ridge subdivision don't cover the true cost of educating incoming students.
Two local school districts are suing the Village of Mundelein, claiming that development impact fees tied to a major new subdivision shortchange schools by millions of dollars.
What's the dispute about?
Fremont Elementary District 79 and Mundelein High School District 120 have filed suit over the impact fees set for Walnut Ridge, a 155-home development planned for roughly 80 acres at the southwest corner of Route 83 and Winchester Road in northwest Mundelein. The project is being built by national homebuilder PulteGroup.
The districts say the fees approved by the village fall well short of what it will actually cost to serve the new students those homes will bring in.
How big is the gap?
The schools project about 167 new K-12 students from Walnut Ridge alone. According to the lawsuit:
- District 79 estimates a shortfall of roughly $2 million
- District 120 estimates a shortfall of roughly $1.3 million
On top of Walnut Ridge, the village also annexed an additional 165 acres of agricultural land nearby. Because there are no concrete development plans for that parcel yet, the districts argue it's impossible to accurately project costs — and existing taxpayers could end up footing the bill.
"We are taking this action to ensure that new developments pay their fair share, preventing a massive financial burden from shifting onto existing taxpayers." — School district officials
What does the village say?
Village Administrator Eric Guenther pushed back on the districts' claims, saying Mundelein's fee ordinance "is based on a standard formula recognized by the highest courts." He also pointed out that the Walnut Ridge developer voluntarily agreed to pay more than what's legally required.
"The schools say that still is not enough." — Eric Guenther, Mundelein Village Administrator
What happens next?
The case will move through the Lake County court system. The outcome could set a precedent for how impact fees are calculated for future residential developments in Mundelein and surrounding communities.