"TIF" stands for Tax Increment Financing. TIF is a financial tool used to assist a municipality in the redevelopment of a specific area that is blighted or showing signs of becoming blighted. A tax increment is the difference between the amount of property tax revenue generated before TIF district designation and the amount of property tax revenue generated after TIF designation. The TIF redevelopment project creates a vital cycle, increasing development and redevelopment in the area, such that when the TIF project ends — and Illinois law allows a TIF project to exist for a period of up to 23 years — all of the taxing bodies benefit from the new growth.
Only property taxes generated by the incremental increase in value of TIF district are available for TIF projects. Tax rates do not change when a TIF is created. TIF districts do not increase taxes.
In the 1960’s and 1970’s, the federal and state governments, including Illinois, began cutting back economic development programs that cities could use to revitalize communities. TIF districts are one of the few remaining tools that local governments can use to attract new business, invest in infrastructure and rebuild blighted areas. TIF districts are a popular and effective redevelopment tool, used in 47 states across the country and in over 250 Illinois cities.
The North Schaumburg TIF District, otherwise known as "90 North", is located in the north part of Schaumburg and bounded by I-90, Roselle Road, Algonquin Road, and Arbor Drive. In particular, the North Schaumburg TIF seeks to:
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 as part of the project .The Village also partnered with Teska to approve the North Schaumburg Plan for this area.
The Olde Schaumburg Centre TIF District included nearly one square mile of properties, which are 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.
Although 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.
No, it is not. Creating a TIF does not reduce property tax revenues available to overlapping taxing bodies like schools. Property taxes collected on properties included in the TIF at the time of its designation continue to be distributed to the school districts, park district, library district, and other taxing districts and are not reduced by the TIF creation. Only taxes derived from future growth that would not have occurred, go solely to projects in the TIF.
TIF Districts create short and long term benefits for communities. These benefits include:
Illinois State Statute only allows TIF revenues to be used for certain kinds of private expenditures. Since the purpose of a TIF district is to encourage development or redevelopment in areas of need, private sector firms are eligible to receive funding to offset the costs of a development or redevelopment project in a TIF district. However, the funds can only be used for public improvements, which typically fall into one of the following categories:
No. On the contrary, TIF’s, when executed properly, generate money for schools. First, schools continue to receive all the tax revenue they were entitled to before the creation of the TIF district. Second, under most circumstances, a school’s state aid is greater when a school district overlaps a successful TIF. The incremental growth in property values is excluded from the property tax base when the state calculates the amount of aid it should award to a school district. The "poorer" a school district, the more it stands to benefit from having a TIF district.
Of course. When a TIF is established there are numerous legal requirements designed to insure the public and also other local taxing bodies are informed. Public hearings are held and all expenditure decisions must be made in public by locally elected officials charged with representing the community.All documents pertaining to a TIF are available througha Freedom of Information Act (FOIA) request.