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64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 TIFs and Civic Engagement Tom Tresser CivicLab co-founder.

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Presentation on theme: "64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 TIFs and Civic Engagement Tom Tresser CivicLab co-founder."— Presentation transcript:

1 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 TIFs and Civic Engagement Tom Tresser CivicLab co-founder The TIF Illumination Project Mike Prombo Assistant Superintendent of Business Services North Chicago Community Unit School District No. 187

2 64 th 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 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

3 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 TIFs and Civic Engagement

4 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 TIFs and Civic Engagement

5 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

6 64 th 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 districts Kane/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)

7 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

8 64 th 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.

9 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 TIFs and Civic Engagement

10 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 TIFs and Civic Engagement

11 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 TIFs and Civic Engagement

12 64 th 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

13 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

14 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 14 Money From TIFs Taken From?

15 64 th 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!!

16 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 16 T H E C I T Y H A D $ 1. 7 1 B I L L I O N I N U N S P E N T T I F F U N D S A T T H E E N D O F 2 0 1 3 !

17 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 17

18 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

19 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 19

20 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 20 42 nd 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

21 64 th 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

22 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 22 $20,120,000 transferred INTo Near West TIF ?? $16,723,551 transferred OUT of near west tif (expired)

23 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 23 Amount of property taxes FROM the 42 nd ward sitting in TIF accounts on January 1, 2014: $125,778,335

24 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

25 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

26 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 161 N. Clark Street 230 N. Michigan Avenue – Hard Rock Hotel I S. Dearborn Avenue – Mittal Steal HQ

27 64 th 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

28 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

29 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 TIF FUNDS IN THE 2 nd WARD UPDATE - $55 MILLION TIF FUNDING SHIFTED TO MARRIOTT HOTEL FROM DePAUL STADIUM. PIER AUTHORITY TO PUT UP $100 MILLION FOR STADIUM PROJECT!

30 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 30 4 TH WARD TIF CONTROVERSY

31 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 TIF FUNDS IN THE 46 th WARD Lincoln Park

32 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 WHERE ARE PARKS MOST NEEDED?

33 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 33 TIF FUNDS IN THE 9 th WARD

34 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

35 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

36 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15

37 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 37 1. TIFs hoard taxes in prosperous communities – starve poor communities.

38 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 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.

39 64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, 2015 @IllinoisASBO #iasboAC15 39 TWICE! 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

40 64 th 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.


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