tifs of the 34th ward
TRANSCRIPT
January 13, 2018Tom Tresser
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The TIF Illumination Project
started in 2013.
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• Annual TIF analysis reports
• Training videos
• History of the project
• We prove it’s a slush fund
• Data Store
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What are TIFs?
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What are TIFs?• Created by municipality (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
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What are TIFs?
The Midwest TIF – 24th Ward
(created in 2000)
Say there
are 1,000
properties
in this
TIF…
…and say that
these properties
are generating
$1,000 in
property taxes as
the TIF starts…
…then this
$1,000 is
called the
“Base.”
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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).
$1,000 from
example
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How Do TIFs Work?
1,000
properties –
$1,000 from
example
Year 10 -
1,100
properties –
$1,500 in
property taxes
Year 20 -
1,200
properties –
$3,000 from
example
A = ?
B = ?
C = ?
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Money From TIFs Taken From?
$1,000 from example
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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
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TIFs Used to support commercial projects in these “Blighted” Areas
40 S. Halsted
Apple Store
14Better Government Association
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#ChicagoIsNotBroke
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Where are TIFs?
2016
Chicago = 148
Suburbs = 295
Cook County = 443
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How Many TIFs?
$493
million
148 TIFs
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Mr. TIF
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To sum up:
TIFs = property taxes
Increment $ collected by TIF
Run by city (mayor)
Lasts 23 years
Blight & “But for” conditions
Hard costs
Supposed to be spent where
collected
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105th/Vincennes - #111 – 2002 –
approx. 95% in ward
Western/Rock Island - #142 –
2007 – approx. 10% in ward
119th/I-57 - #125 – 2002 –
100% in ward
107th/Halsted - #176 – 2014
100% in ward
119th/Halsted - #114 –
2002 – 100% in ward
West Pullman - #50 –
1998-2014 - Was 100% in ward
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TIF 2016 TIF # Created Expires $ 2016 Cumulative2016
ExpensesBalance @ End 2016
105th/Vincennes 111 2001 2025 729,822 3,571,652 52,056 971,087
107th/Halsted 176 2014 2038 441,840 441,840 8,936 1,411,668
119th/Halsted 114 2002 2026 1,145,160 8,067,713 1,657,524 2,807,379
119th/I-57 125 2002 2026 2,884,860 21,033,267 1,615,253 5,984,635
Western/Rock Island 142 2006 2030 46,159 1,119,130 4,312,502 132,002
West Pullman 50 1998 2014 0 303,932$5,247,841 $34,537,534 $7,646,271 $11,306,771
119th/Halsted $375,000 107th/Halsted
119th/I-57 $625,000 107th/Halsted
For Retail
Thrive Zone
Program
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Hancock House Senior Apartments
12045 S. Emerald Street
- Total cost = $19 million (89 units @ $213,000/unit)
- Property given to developer Source Works
- Dept of Housing $3.9 million in loans
- $900,000 in TIF funding
Principal Campaign Contributions
Counsel – Katten, Muchin, Roseman $2,500 to Ald. Austin (2011-16)Total $1 million to locals (1994-2016)
Zoning Counsel – Shefsky & Froelich $500 to Ald. Austin (2013)Total $666,000 to locals (1996-2014)
Construction – Linn-Mathes $450 to Ald. Austin (2003,2007)Total $105,000 to locals (1998-2017)
Developer/Manager – Source Works $1,500 to Ald. Austin (11/12)
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Marshfield Plaza
1700 W. 119th Street
- Total cost = $88.6 million
- Original owner = Prudential Insurance Company
- $22 million in TIF funding
Principal Campaign Contributions
Counsel – DLA Piper Rudnick $2,500 to Ald. Austin (2013-15)Total $574,000 to locals (2005-2017)Including $10,000 to Emanuel (2013)
Manager – Matanky Realty $7,000 to Ald. Austin (2011-17)Total $91,500 to locals (1999-2017)
Developer = Primestor 119 (Prudential) $1,200 to Ald. Austin (2006-07)$6,000 to Ald. Munoz (2006-08)
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Renaissance Estates
122nd Street/Ashland Avenue
- Total cost = $15.7 million
- Developer = John Powen, JTA Development
- $3.6 million in TIF funding
- Original plan called for 86 town homes
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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. Is Chicago broke?
4. Who’s watching our back? Need for new leaders.
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www.tifreports.com
312-804-3230