The best way to help Southland homeowners crushed by high residential property tax bills is to attract more businesses to the region.

Tax rates are high because the region lacks commercial and industrial developments compared to other parts of Cook County. Towns struggle to attract new business investment because tax rates are high. It’s a catch 22 that threatens to make the south suburbs even less attractive to potential new residents.

Those were among key takeaways from a panel discussion I participated in Monday with South Suburban Mayors and Managers Association Executive Director Kristi DeLaurentiis and South Holland Economic Development Director John Watson.

Jeff Cohn hosted the discussion, which was recorded for his TV show “Brave Dialogue.” The 30-minute public access program airs at 8:30 p.m. every Friday on Comcast Channel 19 in Homewood and about 70 other south suburban communities.

Cohn asked about new requirements that took effect Sept. 1 for businesses that receive tax incentives in Cook County. Private businesses that receive the incentives and want to build, expand or repair structures must now hire construction companies that pay prevailing wage rates and hire apprentices.

The changes could jack up labor costs to about $80 an hour from about $50 an hour. The cost of new commercial projects in south Cook County may now be 30 to 60 percent greater, DeLaurentiis said. Projects are becoming cost-prohibitive to prospective developers.

“Meanwhile northwest Indiana and Will County are actively recruiting businesses” away from south Cook, she said.

The Cook County Board approved the changes in March despite an extraordinary appeal from municipal leaders of nearly 50 communities. Local officials said in unison that increased labor costs would negate the benefits of Class 8 and Class 6b incentives, which lower tax rates on businesses to 10 percent from 25 percent for 10 years.

The Southland needs incentives because it’s tough to redevelop sites once occupied by mills and factories, DeLaurentiis said. Environmental cleanup adds to costs, and developers can be more easily attracted to farmland a few miles away.

Over the decades, schools tried to maintain services and facilities by raising local property taxes because the state wasn’t paying its fair share of education costs. Property values are historically lower in the south suburbs compared to other parts of Cook County.

In June, Cook County Clerk David Orr said average 2017 residential tax rates were 7.1 percent in Chicago, 9.3 percent in the northern suburbs and 11.9 percent in the south suburbs. Orr compared three elementary school districts in the northern, western and southern suburbs that each billed roughly $11 million to $12 million in total annual taxes.

The key difference was that a school district in Morton Grove was able to spread tax bills among $313 million in total taxable value and a school district serving Brookfield and LaGrange Park had a total taxable value of $257 million. In Park Forest School District 163, the total value of property was only $84 million, the clerk said.

“The Illinois property tax system is regressive and disproportionately impacts people in poorer regions,” Orr said in the report.

Other factors have compounded the problem of a tax system that was structurally unfair. The Chicago Tribune and others investigated assessments and found that properties were routinely under-assessed in wealthier areas and over-assessed in poorer regions.

Well-meaning policymakers increased tax exemptions for senior citizens and others, but as a result the tax burden increased for property owners who didn’t receive exemptions. The south suburbs have higher rates of foreclosures and greater numbers of properties removed from the tax rolls than other regions.

Also, retail shopping is shifting more to online sales and away from brick-and-mortar stores, making it more difficult to fill vacant storefronts. The loss of sales tax revenue has forced communities from Harvey to Orland Park to reduce services ranging from library and recreation programs to police and fire protection.

DeLaurentiis and the SSMMA have delivered presentations about how the cumulative effect of all these headwinds creates a “perfect storm” that discourages new business investment.

The lack of businesses in the region means fewer jobs than in other areas. Many south suburban residents must travel greater distances to and from work, increasing their household expenses for commuting and child care.

All hope is not lost, however. Some business owners commit to staying in the region, even if it means lower profits. As Watson noted, the Southland has economic strengths that include a large, well-educated workforce and an ideal location with easy access to Interstates 57, 80, 94 and 294.

Communities with good leaders and a strong commitment to growth can buck the trends and succeed. Watson credited longtime Mayor Don De Graff and his town’s strong values for South Holland’s recent growth in population and jobs.

Local boosters understand the challenges facing the Southland and work together to achieve solutions. Policymakers at the county, state and federal level need to better appreciate that the economy in the south suburbs is fragile, and that a one-size-fits-all approach to incentives will not succeed.

DeLaurentiis suggested to Cook County Board members in March that they reconsider a policy that assesses vacant commercial properties at the same rate as farmland. The policy discourages landlords from trying harder to find new tenants for vacant stores and contributes to blight in communities in the long term, she said.

That’s an overview of what DeLaurentiis, Watson and I discussed with Cohn Monday at a Comcast studio in Homewood. Cohn has been hosting “Brave Dialogue” for nearly 20 years, he said, and welcomes guests on a variety of topics.

I thought Cohn did a good job getting his guests to talk about economic incentives in a way that viewers could understand. Our conversation will air in two separate 30-minute segments for the next several weeks, he said.

tslowik@tribpub.com