Tax Increment Financing (TIF) is a financial tool used to assist a municipality in redevelopment of a specific area that is blighted or showing signs of becoming blighted. A redevelopment plan for the TIF District is created which outlines the goals and redevelopment activities. Illinois State Statute allows certain costs to be financed with TIF funds including:
- Infrastructure improvements
- Land acquisition
- Site preparation
- Relocation costs
- Job training
- Bond financing
There are many benefits to using TIF:
Locally controlled redevelopment tool that is not dependent on state or federal approval
- Does not raise taxes on existing property to pay for redevelopment
- Schools, parks, libraries, counties continue to receive Base Taxes
- Helps to remove conditions of deterioration
- Funds public improvements and infrastructure through incremental property tax revenue from added value of new development
- Enhances tax base of local governments to reduce tax burden on other properties
Additional information on TIF can be found on the Illinois Comptroller's website.
Olde Schaumburg Centre TIF District
Created in 1989, the Olde Schaumburg Centre TIF District includes nearly one square mile of properties located at the intersection of Schaumburg and Roselle Roads. The TIF has been very successful with the redevelopment of Town Square, construction of the Clock Tower and Veteran's Gateway Park, infrastructure improvements and restoration of the historic buildings within the project area.
Though the Olde Schaumburg TIF District expired in 2012, a surplus still remains in the TIF fund. As a result, Town Square, Pleasant Square, and Waterbury Lane Rowhouses will continue to receive funding for public infrastructure improvements in the district.
North Schaumburg TIF District
The Village of Schaumburg created the North Schaumburg TIF District bounded by I-90, Roselle Road, Algonquin Road and Arbor Drive in 2014. The North Schaumburg TIF seeks to:
- Pay for the new I-90 Tollway Ramps at Meacham and Roselle Roads
- Integrate Bus Rapid Transit and local transit services to promote a convenient pedestrian circulation
- Encourage redevelopment of the underutilized properties in the area
- Improve utilities and infrastructure within the project area
The Village worked with Teska Associates on the North Schaumburg Redevelopment Plan and Project for the new TIF District. Teska completed the Eligibility Study and the Housing Impact Study . The Village also partnered with Teska to approve the North Schaumburg Plan for this area.
As part of the North Schaumburg study, Teska has recommended the creation of a diversified regional center concept geared towards entertainment and medium density residential. This district aims to be an easily-accessible area for both residents and employees by incorporating public transit and transit-oriented development. Due to the close proximity to the Renaissance Hotel & Convention Center, the Village is currently looking for new manufacturing, commercial, office, and residential uses for the new entertainment district.
A few of the other properties in the North Schaumburg TIF include Motorola Solutions, Sunstar Americas, Inc., Zurich Insurance, Nation Pizza Products, Medieval Times, and the American Veterinary Medical Association.
If you have any questions, please contact Matt Frank, Assistant Director of Community Development/Economic Development Manager, at 847.923.3853.