Tax Increment Financing

WHAT IS TAX INCREMENT FINANCING (TIF)?

Municipalities in Illinois and across the nation are faced with numerous challenges, not the least of which is encouraging economic growth in blighted, decaying, and underperforming areas in need of development or redevelopment.

Most often improving these areas requires a public investment to reduce the extra cost and risk that private development faces in such areas. The public wishes to see this development occur, but without increased taxes or the reduction of other necessary services and projects that would be required to pay for the public investments that development and redevelopment usually require.

One tool successfully in use in Illinois and 48 other states to meet this economic development challenge is Tax Increment Financing: or TIF. With this development tool, financially strapped local governments can make the improvements they need, like new roads or sewers, and provide incentives to attract new businesses or help existing businesses stay and expand. And TIF does this without tapping into general municipal revenues or raising taxes.

Since the Federal and State governments have greatly reduced their support for local economic development, Tax Increment Financing helps local governments attract private development and new businesses using local resources that do not depend upon an increase in taxes or the reduction of other services. New development and businesses mean more jobs, more customers, and, in turn, more private investment for areas most in need. TIF projects also help retain existing businesses that might consider relocating away from declining areas. These jobs and investment — public and private — mean more revenue to help a community meet its other needs. As a result, the community as a whole, not just the area targeted for TIF revenues, improves.

HOW IS A TIF DISTRICT CREATED?

Illinois TIF law specifies a number of requirements that must be satisfied for an area to qualify as a TIF district, beginning with identifying the district and the physical and economic deficiencies that need to be cured. Then municipal officials and a joint review board made up of representatives from local taxing bodies must review a plan for the redevelopment of the TIF area. Then a public hearing is held where residents and other interested parties can express their thoughts on the subject. The proposal then must pass through the same process any other ordinance passes through for approval by the municipal governing board. Then the mayor or village president will sign the ordinance into law. No state or federal approval is required.

ESTABLISHMENT OF TIF DISTRICT

Moran Economic Development can lead your community through the complex process of establishing a TIF Redevelopment Plan and Program. Our firm conducts the Feasibility/Eligibility Analysis necessary of the process and helps create a strategic plan for redevelopment of a TIF District area.

ADMINISTRATION OF TAX INCREMENT FINANCING AREAS

Moran Economic Development provides tax increment financing consulting services to many communities after a tax increment financing area has been established. We strive to build relationships within the communities we serve - relationships that allow the community to maximize the potential of development areas by effectively administering and utilizing the Illinois TIF program.

  • Creation of Marketing Packets – Moran Economic Development will consolidate any existing community data and mapping and produce new, relevant information into a succinct marketing packet which could be used by the community to generate development interest in TIF properties.
  • Annual Reporting – Moran Economic Development will assist the community in submitting its annual Tax Increment Financing Report to the State of Illinois.
  • Negotiations with Developers – Moran Economic Development will conduct negotiations with interested developers over tax increment financing assistance, as well as review existing redevelopment proposals.
  • Business Recruitment – Because Moran Economic Development works with developers and businesses, we will market your area to prospective or existing businesses that are considering location or expansion in your area. We will assist and prepare site search proposals for national and statewide site consultants interested in your community.
  • Redevelopment Agreements – Moran Economic Development can offer assistance with development projects and assist the community in creating and understanding agreements in the framework of the Illinois TIF Act.
  • Financial Feasibility Analysis – Moran Economic Development will create revenue generation charts to determine how much financial benefit would accrue from a new development or redevelopment project.
  • Continuing Education – Moran Economic Development believes that in order for communities to successfully redevelop their project areas, it is important to understand how best to utilize TIF dollars. Moran Economic Development provides ongoing technical support and education to communities that need help in the daily administration of tax increment financing. This is usually done as a courtesy.

We have experience working in over 75 municipalities- Here are a few:

Altamont
Aviston
Cahokia
Cairo
Carlyle
Carmi
Carrier Mills
Carterville
Caseyville
Christopher
Clay
Cobden
Crainville

Dieterich
Dupo
Energy
Equality
Farmer City
Germantown
Gillespie
Granville
Grayville
Harrisburg
Herrin
Hillsboro
Jerseyville

Johnston City
Louisville
Macon
Maroa
Maryville
Mascoutah
Mound
Moweaqua
Mt. Carmel
New Athens
Okawville
Pana
Petersburg

Ramsey
Sandoval
Sesser
Shiloh
South Roxana
Stonington
Tilton
Vandalia
Venice
Vienna
Warrensburg
Winchester
Zeigler


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