Aurora TIF meeting 11-4-23

Agenda
• Review Agenda
• What is a TIF?
• Problems with TIFs
• TIFs of Kane County/Aurora
• Casino TIF
• Process for Creating a TIF
• Call to Action - Upcoming
Dates & Meetings

What is a TIF?
• Created by municipality (IL state law)
• Designed to subsidize some business project in “blighted”
or under-served area
• “But for” test – only for projects market CAN NOT support
• Captures “incremental” property taxes ABOVE base when
district was created
• Only for hard costs
• Lasts 23 years
• Supposed to be spent where collected

What is a TIF?
Say there are 100 properties inside the TIF.
Say these properties generated $10,000 in
property taxes when the TIF was created.
The Base = $10,000.

What is a TIF?
Typical Aurora Home - % Tax Bill Paid

What is a TIF?
• Last for up to 23 Years
• Re-Directs taxpayer
money to develop
blighted areas
• Overused in Illinois
TIF’s are tax breaks
for the wealthy

TIF Districts Raise Taxes
When Taxes are diverted
from taxing bodies who
will pay for the increased
needs the development
brings?
Properties inside
TIFs don’t start
paying into taxing
bodies until 23 years
after TIF starts!

TIFs are Everywhere!
2022*
• 58 TIFs across 14 municipalities
• $29.6 million removed
• $264 million removed since created
• $54.8 million spent – of that,
• $32 million was on debt finance
• $30 million left in accounts at end of year
*Using reports from 2021 for Carpentersville (3)

Development Without TIF
Commercial or Residential
pays taxes after construction
Taxes for
Schools
Taxes for
Library
Taxes for
Waubonsee
Taxes for
City
Taxes for
County
Taxes for
Township
Taxes for
Parks

Development in a TIF
Taxes for
Schools
Taxes for
Library
Taxes for
Waubonsee
Taxes for
City
Taxes for
County
Taxes for
Township
Taxes for
Parks
All Tax $$$$$
goes Into the TIF
Fund to support the
development

Aurora’s TIF’s
• 6 TIF’s
• 9 Micro TIF’s
• Proposed
Casino TIF

Micro TIF vs. Large TIF area
• Micro TIF’s are a small
area surrounding in
individual development
• Traditional larger TIF
seeks to address
multiple buildings in a
blighted area
• Micro TIF’s are very
lucrative because $$$$
only goes to one project

Remember this graphic?
COA-owned –
base frozen at $0
• 6 Parcels
owned by COA
• 3 Parcels
owned by Penn
Base frozen
at $0

Casino TIF Tax Base
• Tax base frozen at $0
for an entire 23 years
• When the city buys a
property pre-TIF the tax
base drops to $0
Maximizes the
amount going into the
TIF and starves the
taxing bodies

Casino TIF - $5.25 Million
How does the $5.25 Million Break out Per Taxing Body?

Casino will require road widening
• Widening Bilter,
Farnsworth & Church
Rd will cost $$$
• In addition to sucking
money out of taxing
bodies, development
has costs
• Increased police
presence

Casino TIF
• $120M over 23 years
• Casino TIF $5.2M/Year
will be diverted

Does the Casino need a TIF?
 PENN 2022 Revenue = $6.4 billion
 Salary as CEO of PENN = $1.2 million
 CEO Jay Snowden earned $65 million
 He wants $50 million TIF gift PLUS
 $8 million in interest PLUS
 $10 million in free land!

Barstool Sports Founder Dave
Portnoy Bought Site Back for $1
after selling it for $551M to Penn
Entertainment – Aug. 9, 2023
If Penn can sustain a $550M
loss, why are we subsidizing
the construction of their casino?

 At the end of 2022 PENN executed stock
buy back of $91 million
 Then they spent ANOTHER $31.5 million
on stock buy backs
 Can purchase an ADDITIONAL $868
million at their pleasure

TIF #1 - Existing Casino
• Generated Est. $50M
• Closed in 2022
• Casino taxes reached East
Aurora District 131 in 2022
• 23-year TIF + Extension

Casino TIF Coercive Gag Clause
IGA is effectively
gun-to-the-head
negotiations.
Designed to give
unanimous
support at JRB &
Pro-education
narrative.

TIF’s - Estimated 3 Month Process
The process is initiated by and
handled by a municipality
1) TIF eligibility study
2) Joint Review Board (JRB) meeting
gives taxing bodies a voice
3) City Council public hearing
4) Final adoption by council

TIF Process – Eligibility Study
• Cottage Industry of corporate tax dodgers
like Ryan LLC – Lawyers & CPA’s

TIF Process – Eligibility Study
 Un-used
 Vacant
 Cracks in
Pavement
 1888 Plats
River Vine
• Regardless of real conditions the TIF
area is always found to be “blighted.”
• A Number of “blighted” criteria will qualify
for a TIF – 65 ILCS 5/11-74.4-3

All Taxing Bodies Convene for JRB
TIF Process – Joint Review Board
• One Representative from Each
Taxing Body + at-large member
• Vote yes, no, abstain, or amend TIF
• JRB Re-convenes
• Open to public to ask questions and
public comment – OMA applies
When: Nov. 8th @10 AM
Where: Aurora Development Services
Lower Level / Basement Training Room,
77 S. Broadway, Aurora, Illinois 60505.

Hearing Separate from Council Meeting
TIF Process – Public Hearing
• Public Hearing allows the public and city
council to enter official comment on TIF
• We are encouraging Aurora taxpayers to attend
and speak against the Casino TIF handout
• Hearing closes Casino TIF Public Hearing:
When: Dec. 12th @ 6 PM
Where: Aurora City Hall, Council Chambers,
44 East Downer Place, Aurora, Illinois 60505

TO SUM UP….
1. TIFs remove your property taxes serving the
public,
2. The Number One loser is our public school
system,
3. TIFs cause ALL our property taxes to GO UP,
4. The TIF process is secretive, arrogant, and
aggressive,
5. The person getting all this public money
does NOT need it or deserve it,
6. Only together can we stop this steal.

Aurora TIF meeting 11-4-23

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Aurora TIF meeting 11-4-23

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