1. Where is TIF? What is TIF? TIF by Size of Municipality TIF by Size of Municipality TIF Examples Future of TIF Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Downstate Economic Summit - 2011 Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois Creating a Common Voice Thursday, September 29, 2011 / 9:30 a.m. – 4:30 p.m. Thelma Keller Convention Center, Effingham, Illinois Tax Increment Financing in Illinois 2:00 p.m. Session Steven Kline, President The Economic Development Group, Ltd. 1701 Clearwater Avenue Bloomington, Illinois 61704 Email: skline@tifillinois.com Ph: (309) 664-7777 / Fax: (309) 664-7878 and Herb Klein, President Jacob & Klein, Ltd. 925 Shooting Park Rd., Suite A Peru, Illinois 61354 Email: hklein@jacobkleinlaw.com Ph: 815-223-7550 / Fax: 815-223-7577 www.tifillinois.com

2. Where is TIF? What is TIF? TIF by Size of Municipality TIF by Size of Municipality TIF Examples Future of TIF TIF is an Economic Development Tool  Program of real estate tax reimbursements.  Signed into law in 1976.  Some form of TIF in 49 States.  More than 1,000 active TIF Districts in Illinois with most formed by municipalities under the “TIF Act”: 65 ILCS 5/11-74.4 et.seq. Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Downstate Economic Summit - 2011 Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

3. TIF by Size of Municipality TIF by Size of Municipality What is TIF? Where is TIF? TIF Examples Future of TIF 1,147 TIF Districts in 88 Counties (June 2011) 418 (36%) TIF Districts in Cook County.  418 (36%) TIF Districts in Cook County.  137 (12%) TIF Districts in 5 Collar Counties.  69 (6%) TIF Districts in 6 Downstate Adjacent Counties. Adjacent Counties.  523 (46%) TIF Districts in 76 Downstate Counties. SOURCE OF DATA: Office of Illinois State Comptroller, June 2011. Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

4. Placeholder TIF by Size of Municipality Placeholder Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Percentage of Municipalities by Population Range with One or More TIF Districts, June 2011. SOURCE OF DATA: Office of Illinois State Comptroller, June 2011. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

5. Placeholder TIF by Size of Municipality Placeholder Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Total Number of TIF Districts in Illinois by Municipal Population Range, June 2011. SOURCE OF DATA: Office of Illinois State Comptroller, June 2011. 683 TIF Districts In towns of less than 25,000 pop. account for 60% of all TIF Districts in Illinois. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

6. TIF Examples Where is TIF? What is TIF? TIF by Size of Municipality Future of TIF Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Illinois TIF Trivia:  The largest City in Illinois, Chicago, had 159 Active TIF Districts on record with the Office of Illinois State Comptroller in June, 2011.  The smallest Village in Illinois hosting 1 TIF District as of June, 2011, was the Village of Sauget, IL (pop. 159) located in St. Clair County.  Of Illinois’ 37 “Metro” Counties, each one is host to at least one TIF District – Cook County has the most with 418; followed by St. Clair County (62); and DuPage County (46).  TIF is present in 77% of Illinois’ 65 “Rural” Counties.  For Fiscal Year 2009, the Office of the State Comptroller reported the total Incremental Equalized Assessed Valuation of all TIF Districts in Illinois was $19,745,778,663 and total TIF Increment Extended was $1,201,493,830. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

7. TIF Examples Where is TIF? What is TIF? TIF by Size of Municipality Future of TIF Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

8. TIF Examples Where is TIF? What is TIF? TIF by Size of Municipality Future of TIF Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

9. Future of TIF TIF by Size of Municipality TIF by Size of Municipality Where is TIF? What is TIF? TIF Examples Industrial Warehousing - PetSmart, Otttawa, Illinois. Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. “The availability of tax increment financing was a vital tool the City used to bring this $30 million project and its 200+ jobs to the community." -- Mayor Robert Eschbach Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

10. Future of TIF TIF by Size of Municipality TIF by Size of Municipality Where is TIF? What is TIF? TIF Examples Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Industrial Redevelopment - Former International Harvester Plant, Canton, Illinois. Plant Closed in 1983. Canton lost 3,000 jobs. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

11. Future of TIF TIF by Size of Municipality TIF by Size of Municipality Where is TIF? What is TIF? TIF Examples Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Manufacturing - Cook Medical, Canton, Illinois. Former International Harvester Site is being redeveloped in Canton, Illinois with help of TIF. 300+ New Jobs and Growing. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

12. Future of TIF TIF by Size of Municipality TIF by Size of Municipality Where is TIF? What is TIF? TIF Examples Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Commercial – Love’s Plaza, Utica, Illinois “Securing Love’s Travel Plaza with TIF increased the Village’s sales tax revenues dramatically, created employment opportunities, and allowed the Village to extend water and sewer utilities to the north side of I-80 for the first time. This utility extension has opened a large area for future commercial and industrial development. “ -Mayor Fred Esmond Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

13. Future of TIF TIF by Size of Municipality TIF by Size of Municipality Where is TIF? What is TIF? TIF Examples Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Residential Development: Glen Ridge West – Silvis, Illinois Residential Development: Ridgeview Subdivision – Cambridge, Illinois Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

14. Future of TIF TIF by Size of Municipality TIF by Size of Municipality Where is TIF? What is TIF? TIF Examples Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Downtown Revitalization – Sullivan, Illinois 28 Downtown Façade Projects since 2005 have resulted in $717,000 of new investment leveraged on $349,000 of TIF funding. 13 additional applications received for summer of 2011. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

15. Future of TIF TIF by Size of Municipality TIF by Size of Municipality Where is TIF? What is TIF? TIF Examples Downstate Economic Summit - 2011 Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. TIF Funds Used for Public Improvements Heyworth, Illinois $6.6 million of “BAB” Bonds were issued in 2010 to finance streets, sewer and water infrastructure improvements. Village pledged TIF Funds for repayment of the bonds and receives 35% of the total interest cost back from U.S. Treasury. Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois

16. TIF Examples Future of TIF TIF by Size of Municipality TIF by Size of Municipality Where is TIF? What is TIF? SOURCE: Chicago Tribune, Tuesday, January 18, 2011 What should the future of TIF be in Illinois?  Senate Bill 540 will diminish your town’s ability to use TIF effectively.  Illinois needs competitive tools to attract new private investment and create jobs.  If we don’t use all of the tools available to us, someone else will. Copyright 2011. The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, Illinois. All rights reserved. Downstate Economic Summit - 2011 SOURCE: Chicago Tribune, Wednesday, August 24, 2011 Vital Tools & Resources:Tax Increment Financing (TIF) in Illinois