TIF Information

What is a TIF District?

Tax Increment Allocation Financing (TIF) was enacted into law in Illinois in 1977. As an economic development tool, it enables municipalities to target financial assistance to, among other things, eliminate or prevent blighted conditions in developed areas like established older downtowns and other commercial areas.

TIF is permitted under Chapter 65 of the Illinois Compiled Statutes, 65 ILCS 5/11-74.4-1 et seq. (the "Act"). The Act authorizes municipalities to receive increments generated from increased property tax revenues in an area designated for TIF. The "increment" is the amount of growth in property taxes attributable to the increase in the value of the property in the TIF area after private redevelopment has taken place. The growth amount is set aside by the tax collector into a special municipal fund to pay redevelopment costs, including debt service. To identify the increment, at the adoption of TIF for an area, the assessment of each parcel in the area is frozen at its current amount. During the life of TIF in the designated area, the taxing districts will receive taxes attributable to the original, frozen assessment. As improvements are made in the TIF area, and assessments rise, tax revenue attributable to the increase in assessments goes to the municipality’s special fund to pay redevelopment costs as permitted by the Act.

Once the improvements are completed and all project costs paid, or at a time specified in the original municipal ordinances establishing TIF for the area, the TIF area is dissolved and future incremental tax revenue is paid directly to the local taxing bodies.

More information on TIF Districts can be found at the Illinois Tax Increment Association

TIF Updates - Interested Parties Registry

The City has established a Tax Increment Financing (TIF) District Interested Parties Registry. Residents of the City and organizations active in the City may register to receive information on any proposed designation of a TIF redevelopment project area or the approval of a TIF redevelopment plan, as well as information regarding certain changes proposed for existing TIF redevelopment plans. Registration forms are available in the Administration Department at City Hall. 

To receive updates on TIF, complete a registration application.   

Individual Registration Application (PDF)

Organization Registration Application (PDF)

TIF Redevelopment Project Assistance Policy

On March 20, 2017, the City Council endorsed the Tax Increment Financing Redevelopment Project Assistance Policy. The Policy was established to support efficient and consistent future City Council decision making, and improve City staff’s ability to clearly and proactively communicate the City’s position on potential TIF assistance to developers, businesses, and property owners considering a potential redevelopment project in one of the City’s two active TIF districts.

Key components of the policy include:

• Specific connections and references to the City’s Strategic/Economic Development, Subarea Land Use, and TIF Redevelopment Plans.
• Establishment of the means by which the City will review and process TIF assistance proposals.
• Requirement of individuals and entities seeking TIF assistance to cover the out-of-pocket costs the City incurs during the review and processing of any such request.
• Detailed establishment and prioritization of the types of redevelopment project expenses for which the City is most likely to consider TIF assistance.
• Identification of specific redevelopment costs for which the City will not provide TIF assistance.
• Outline of the City’s preferred method of structuring TIF assistance.
  
  TIF Redevelopment Assistance Policy (PDF 
  City Review Process for TIF Assistance (PDF)
  Application form for TIF Assistanc e (PDF) 
  TIF Assistance Application Financial Review/Data Request (PDF)
  
  Last updated December 12, 2018.