Post on 16-Apr-2017
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIFs and Civic Engagement
Tom TresserCivicLab co-founder The TIF Illumination Project
Mike PromboAssistant Superintendent of Business ServicesNorth Chicago Community Unit School District No. 187
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIFs and Civic Engagement 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 25th 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
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIFs and Civic Engagement
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIFs and Civic Engagement
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
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:
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 districtsKane/DuPage has 5 TIF districts
389 Communities have TIF districts D300 communities:
Carpentersville (2)East Dundee (2 current and 1 proposed)Hampshire (1)Hoffman Estates (1)Huntley (1)Pingree Grove (1 proposed)West Dundee (2)
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIFs and Civic Engagement
Hoffman Estates EDA (Sears Economic Development Area* ending 2013) Hampshire TIF (Downtown – State Street and SOO Railroad line) Huntley Mall TIF Carpentersville TIF 1 (Spring Hill Center); TIF 2 (Williams & Lake Marian Roads) West Dundee TIF 1 (Union School) and TIF 2 (Routes 31 and 72) East Dundee TIFs
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.
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIFs and Civic Engagement
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIFs and Civic Engagement
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIFs and Civic Engagement
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
The TIF Illumination Project
• All volunteer effort housed at the CivicLab• 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
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
14
Money From TIFs Taken From?
The “Base”
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
15
Chicago TIFs HAVE RUN AMOK!154 Tifs in
2013!$422 million in 2013!
$6 Billion since 1986!!
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
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THE CITY HAD
$1.71 BILLION IN UNSPENT TIF FUNDS
AT THE END OF 2013!
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
17
42nd Ward
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
42nd Ward
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
19
42nd ward
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
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20
42nd ward TIFs took $52.5 million in
property taxes in 2013!
These 8 TIFs spent $129 million
in total (not all in ward)
Department of Planning &
Development skimmed $2.6
million
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
21
$37,576,456 transferred out of
near south tif (Expired)
$16,723,551 transferred OUT of
near west tif (expired)
$3,987,000 transferred OUT of
canal/congress tif
$2,240,000 transferred OUT of
Chicago/kingsbury tif
$3,123,000 transferred out of
river west tif
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
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22
$20,120,000 transferred INTo
Near West TIF ??
$16,723,551 transferred OUT of
near west tif (expired)
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
23
Amount of property taxes FROM the 42nd ward sitting in TIF accounts on January 1, 2014:
$125,778,335
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
161 N. Clark Street
230 N. Michigan Avenue –
Hard Rock HotelI S. Dearborn Avenue –
Mittal Steal HQ
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
123 S. Dearborn Street
18 W. Monroe Street
1 N. Dearborn Street - Sears
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIF HALL OF SHAME
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
TIF FUNDS IN THE 2nd WARD
$55,000,000?
UPDATE - $55 MILLION TIF FUNDING SHIFTED TO MARRIOTT HOTEL FROM
DePAUL STADIUM. PIER AUTHORITY TO PUT UP $100
MILLION FOR STADIUM PROJECT!
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
30
4TH WARD TIF CONTROVERSY
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
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TIF FUNDS IN THE 46th WARD
$26,000,000?Lincoln
Park
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
WHERE ARE PARKS MOST NEEDED?
$29,000,000?
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
33
$11,000,000?
TIF FUNDS IN THE 9th WARD
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
Illuminating
D300
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
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2011 total diversion =
$16.5 million
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
THREE HUGE problems
with the TIF program…
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
37
1.TIFs hoard
taxes in prosperous
communities – starve poor communities
.
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
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38
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."
2. They have
nothing to do
with economic
Development.
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
39
3. SCHOOL
DISTRICTS
SUE. TaX
PAYERS LOOSE
TWICE!
• 2010 D200 sued Village of oak Park over downtown TIF.
• Case dragged on for one year.• Cost taxpayers over $600,000• “Economic development is not the
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 D200 School Board
64th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015
@IllinoisASBO #iasboAC15
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.