TIFs and Civic Engagement Tom Tresser Civic Lab
TIFs and Civic Engagement Tom Tresser Civic. Lab co-founder The TIF Illumination Project Mike Prombo Assistant Superintendent of Business Services North Chicago Community Unit School District No. 187 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIFs and Civic Engagement o o o o 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 25 th 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 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIFs and Civic Engagement 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIFs and Civic Engagement 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIFs and Civic Engagement As of January 2006, the Illinois Department of Commerce and Economic Opportunity reported that there were 998 TIF Districts in Illinois: Ø Ø Ø 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 districts Kane/Du. Page has 5 TIF districts 389 Communities have TIF districts D 300 communities: Carpentersville (2) East Dundee (2 current and 1 proposed) Hampshire (1) Hoffman Estates (1) Huntley (1) Pingree Grove (1 proposed) West Dundee (2) 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIFs and Civic Engagement o Hoffman Estates EDA (Sears Economic Development Area* ending 2013) Hampshire TIF (Downtown – State Street and SOO Railroad line) Huntley Mall TIF o Carpentersville TIF 1 (Spring Hill Center); TIF 2 (Williams & Lake Marian Roads) o West Dundee TIF 1 (Union School) and TIF 2 (Routes 31 and 72) East Dundee TIFs o o o n n n o 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. 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIFs and Civic Engagement 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIFs and Civic Engagement 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIFs and Civic Engagement 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
The TIF Illumination Project • • • All volunteer effort housed at the Civic. Lab 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 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
Money From TIFs Taken From? 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 14 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
Chica go TI Fs HAV E RU N AMO K! ! 3 1 0 2 n i s f i T 154 ! 3 1 0 2 n i n o i l l i $422 m ! ! 6 8 9 1 e c n i s n o i l l i B 6 $ 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 15 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
D F A I H T Y T IT C N E E P TH S ! N 3 1 U 0 2 N I F O N D O N I E L H I T B T A 1 7 Mr. TIF $1. S D FUN 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 16 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
n 2 4 d r a d. W 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 17 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
n 2 4 d r a d. W 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
42 n d w ard 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 19 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
s F I T d r a 42 nd w y t r e p o r p in n o i l l i m 5. 2 5 $ k too ! 3 1 0 2 n taxes i 9 2 1 $ t n pe s s F I T 8 e s e h l in ward) T l a t o n ( in total million & g n i n n a l P f o t n n o e i l l m i t r m a. 6 2 Dep $ d e m m i k s t n e m p o l e v De 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 20 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
OUT of d e r r e f s n a tr 1 5 5 , 3 2 (expired) $16, 7 f i t near west of t u o d e r r e f s n a r t 6 5 4 , 6 7 5 , (Expired) $37 f i t h near sout of T U O d e r r e f s n a tr 0 0 0 , 7 8 9 f i t $3, s s e r g canal/con of T U O d e r r e f s n a r t 0 0 0 , 0 f i 4 t 2 , y r $2 u b s ng i k / o g a c i Ch of t u o red r e f s n a r t 0 0 0 , 3 2 1 , 3 $ tif t s e w r e riv 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 21 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
d e r r e f s n a r t 0 0 0 , ? ? $20, 120 F I T t s e W r a Ne rred e f s n a r t 1 5 5 , 3 2 7 , 6 (expired) $1 f i t near west INTo OUT of 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 22 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
Amount of property taxes FROM the 42 nd ward sitting in TIF accounts on January 1, 2014: $125, 778, 335 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 23 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
161 N. Clark Street 230 N. Michigan Avenue – Hard Rock Hotel I S. Dearborn Avenue – Mittal Steal HQ 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
18 W. Monroe Street 123 S. Dearborn Street 1 N. Dearborn Street - Sears 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIF FUNDS IN THE 2 nd WARD UPDATE - $55 MILLION TIF FUNDING SHIFTED TO MARRIOTT HOTEL FROM De. PAUL STADIUM. PIER AUTHORITY TO PUT UP $100 MILLION FOR STADIUM PROJECT! 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
4 TH WARD TIF CONTROVERSY 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 30 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIF FUNDS IN THE 46 th WARD Lincoln Park 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
WHERE ARE PARKS MOST NEEDED? 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
TIF FUNDS IN THE 9 th WARD 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 33 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
g n i t a n i m u Ill D 300 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
= n o i s r e v i d l a t o t 1 1 0 2 n o i l l i m 5. 6 $1 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
s m e l b o r p E G U H E E R … TH m a r g o r p F I T e h t wi 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
1. TIFs hoard taxes in prosperous communities – starve poor communities. 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 37 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
o d o t g n i h t o n e v a 2. They h c i m o n o with ec. t n e m p o Devel 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. " 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 38 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
• 2010 D 200 sued Village of oak Park S T C I R T over downtown TIF. S I D L O 3. SCHO E S • Case dragged on for one year. O O L S R E Y A P X a T. • Cost taxpayers over $600, 000 E SU E! • “Economic development is not the TWICE! 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 D 200 School Board 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS 39 APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
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. 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @Illinois. ASBO #iasbo. AC 15
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