iasbo tif presentation-4-30-15

64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015

@IllinoisASBO #iasboAC15

TIFs and Civic Engagement

Tom TresserCivicLab co-founder The TIF Illumination Project

Mike PromboAssistant Superintendent of Business ServicesNorth Chicago Community Unit School District No. 187



TIFs and Civic Engagement A tool used as a financing mechanism by municipalities for community

redevelopment and improvement Uses future gains in taxes to finance current improvements that will

create those gains TIFs started in California in 1952 Illinois passed the Illinois Tax Increment Allocation Redevelopment Act

in 1977, becoming the 25th state to adopt TIF legislation In Illinois, a TIF district can exist for up to 23 years and can be extended

for up to another 12 years Today 49 states and the District of Columbia have TIF legislation,

(Arizona does not have a state TIF law in place) Since 1970, TIF activity has increased due to a reduction in federal

funding for redevelopment related activities, state-imposed caps on municipal property tax collection, and limits on the amounts and types of city expenditures




As of January 2006, the Illinois Department of Commerce and Economic Opportunity reported that there were 998 TIF Districts in Illinois:

77 Illinois counties (out of 102) have a TIF district in them 998 total TIF districts Kane County has 17 TIF districts

Kane/Cook has 4 TIF districtsKane/DuPage has 5 TIF districts

389 Communities have TIF districts D300 communities:

Carpentersville (2)East Dundee (2 current and 1 proposed)Hampshire (1)Hoffman Estates (1)Huntley (1)Pingree Grove (1 proposed)West Dundee (2)




Hoffman Estates EDA (Sears Economic Development Area* ending 2013) Hampshire TIF (Downtown – State Street and SOO Railroad line) Huntley Mall TIF Carpentersville TIF 1 (Spring Hill Center); TIF 2 (Williams & Lake Marian Roads) West Dundee TIF 1 (Union School) and TIF 2 (Routes 31 and 72) East Dundee TIFs

Downtown TIF (Proposed) Dundee Crossing TIF Prairie Lakes TIF

Pingree Grove TIF (Proposed for Bell and Harrison Property – approximately 100 acres)

* The Sears EDA was created by the State of Illinois to retain or attract large companies willing to: 1) retain or create a minimum of 2,000 jobs; 2) make an investment of $100 million or more; and 3) develop 400 acres or more.



The TIF Illumination Project

• All volunteer effort housed at the CivicLab• Data mining, investigatory journalism, map making, graphic design• Answers: “What is a TIF?” & “What is impact where I live?”• So far looked at 141 TIFs across 32 wards in front of 4,300 people• Over 75 stories in media about this work• Made news and contributed to wide civic discourse across the city



14

Money From TIFs Taken From?

The “Base”



15

Chicago TIFs HAVE RUN AMOK!154 Tifs in

2013!$422 million in 2013!

$6 Billion since 1986!!



16

THE CITY HAD

$1.71 BILLION IN UNSPENT TIF FUNDS

AT THE END OF 2013!



17

42nd Ward



42nd Ward



19

42nd ward



20

42nd ward TIFs took $52.5 million in

property taxes in 2013!

These 8 TIFs spent $129 million

in total (not all in ward)

Department of Planning &

Development skimmed $2.6

million



21

$37,576,456 transferred out of

near south tif (Expired)

$16,723,551 transferred OUT of

near west tif (expired)


canal/congress tif


Chicago/kingsbury tif

$3,123,000 transferred out of

river west tif



22

$20,120,000 transferred INTo

Near West TIF ??


near west tif (expired)



23

Amount of property taxes FROM the 42nd ward sitting in TIF accounts on January 1, 2014:

$125,778,335



161 N. Clark Street

230 N. Michigan Avenue –

Hard Rock HotelI S. Dearborn Avenue –

Mittal Steal HQ



123 S. Dearborn Street

18 W. Monroe Street

1 N. Dearborn Street - Sears



TIF HALL OF SHAME



TIF FUNDS IN THE 2nd WARD

$55,000,000?

UPDATE - $55 MILLION TIF FUNDING SHIFTED TO MARRIOTT HOTEL FROM

DePAUL STADIUM. PIER AUTHORITY TO PUT UP $100

MILLION FOR STADIUM PROJECT!



30

4TH WARD TIF CONTROVERSY



TIF FUNDS IN THE 46th WARD

$26,000,000?Lincoln

Park



WHERE ARE PARKS MOST NEEDED?

$29,000,000?



33

$11,000,000?

TIF FUNDS IN THE 9th WARD



Illuminating

D300



2011 total diversion =

$16.5 million



THREE HUGE problems

with the TIF program…



37

1.TIFs hoard

taxes in prosperous

communities – starve poor communities

.



38

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."

2. They have

nothing to do

with economic

Development.



39

3. SCHOOL

DISTRICTS

SUE. TaX

PAYERS LOOSE

TWICE!

• 2010 D200 sued Village of oak Park over downtown TIF.

• Case dragged on for one year.• Cost taxpayers over $600,000• “Economic development is not the

business of school districts – education is. TIFs take dollars from schools. The best economic development localities can do is provide great education. When dollars from education go into these deals the game never comes out favorably for students.” – Sharon Patchak-Layman, member D200 School Board



LET’S HAVE AN HONEST AND ACCURATE TALK WITH OUR CONSTITUENTS ABOUT TIFS.

THEY’RE PAYING THE BILLS.

THEY DESERVE TO KNOW ALL THE IMPACTS THAT TIFS HAVE ON THEIR LOCAL GOVERNMENT.

iasbo tif presentation-4-30-15

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