This presentation was the 35th TIF town meeting or Illumination by the TIF Illumination Project (http://www.tifreports.com) on July 23, 2015. The event was organized by 35th Ward Neighbors United. If you want the TIFs of YOUR community Illuminated, please contact info@tifreports.com.
Note - this presentation contains an overview of TIFs in Chicago and Illinois but the particulars of the 35th Ward are NOT in this file. If you want the FULL deck, you'll have to contribute $5.00 to support our work and get the file via our TIF Data Store at http://www.tifreports.com/store and select “TIF Illumination” and then you can browse for the 35th Ward presentation.
3. 3
Key Policy Questions
1. Under what circumstances do we give public $ to private
business?
2. Who plans what for whom? AKA, What defines
“community development”?
3. Are we broke?
4. Who’s watching our back?
5. 5
What are TIFs?
• Created by municipality (state
statute)
• Boundaries cross political and
community boundaries
• Designed to subsidize some
business project in “blighted” or
under-served area
• Captures “incremental” property
taxes ABOVE base when district
was created
• Lasts 23 years
6. 6
How Do TIFs Work?
When the TIF is created,
the city tallies up all the
property taxes
generated by district in
that year (called the
"base" amount). After
that, all property tax
increases above the
base (the "increment")
are channeled to the TIF
district.
The property taxes
collected from
properties inside the
district BEFORE the
district was created
that go to units of
government stays
FLAT for the life of the
TIF (23 years).
8. 8
What are TIFs?
Under state law, areas proposed for TIF designation
must possess numerous blighting factors to be
eligible:
• Age
• Obsolescence
• Code violations
• Excessive vacancies
• Overcrowding of facilities
9. 9
TIFs Used to support commercial projects in
these “Blighted” Areas
40 S. Halsted
Apple Store
17. To sum up:
TIFs = property taxes
Increment $ collected by TIF
Run by city
Lasts 23 years
Blight & “But for” conditions
Hard to track
BIG deal in Chicago & Illinois
20. 20
That’s all we’re going to show you in this free
version of the presentation. If you want the FULL
deck with the particulars of the 8 TIFs of the 35th
Ward we’re going to ask for a contribution via our
TIF Data Store. Just click over to
http://www.tifreports.com/store and select “TIF
Illumination” and then you can browse for the 35th
Ward presentation.
22. TIF FUNDS IN THE 2nd WARD
UPDATE - $55 MILLION TIF
FUNDING SHIFTED TO
MARRIOTT HOTEL FROM
DePAUL STADIUM.
PIER AUTHORITY TO PUT UP
$100 MILLION FOR
STADIUM PROJECT!
32. 32
Authors plead "Our
message is simple:
'Please, please, if you're
going to offer incentives,
don't give them to every
firm that asks -- Don't!
Ninety percent of the
time they don't work, and
handing them out after a
company has already
located in an area
without them makes no
sense at all."