1. TO DE-TIF/RE-TIF OR NOT TO DE-TIF/RE-TIF
I PROMISE THIS WILL NOT BE AS DRAMATIC AS THE FEIGNING HAMLET - BUT RATHER LIGHTER AND FLEETING LIKE JAQUES IN “AS YOU LIKE IT” WHEN HE SAYS
Sweet are the uses of adversity, Which like the toad, ugly and venomous, Wears yet a precious jewel in his head

2. TIF is a municipal financial incentive tool created by the Illinois State Legislature in 1978 to assist communities implement sound economic development.

3. WHEN SHOULD YOU CONSIDER A DE-TIF/RE-TIF
Is the TIF Underwater?
Is a Portion of the TIF Completed but Some Areas are Still Floundering.
Is the Term of the TIF Not Enough To Induce Incoming Projects

4. THE MAIN QUESTIONS SHOULD ALWAYS BE THE SAME
Is there still a “but for”? Will the area benefit from a TIF designation? What is the current condition or past history?
To induce industrial projects…
To induce commercial/retail projects…
To induce residential projects

5. WHAT IS AN UNDERWATER TIF & HOW DID IT HAPPEN
An “Underwater” TIF occurs when the current EAV is lower than when the Redevelopment Project Area was originally formed and adopted.
For the most part – underwater TIFs were simultaneous with the downturn in the economy and the devaluing of property.

6. POSSIBLE SOLUTIONS Evaluate the RPA as a whole
Determine if any part is performing
Can current debt obligations be met?
Decide if a reasonable return can be attained with potential development projects.

7. RECENT TIF RE-ENGINEERING PROJECT EXAMPLES
South Holland – Gateway
Lansing – Bernice
Rosemont – TIFs 6 & 7
Bellwood –
Richton Park

8. POLICY CONSIDERATIONS
Is there a “but for”?
What effect will the TIF have on other taxing districts?
What type of developments should be funded?
What resources are available to the municipality?
How does the estimate of incremental taxes compare to the costs to develop?

9. IMPLEMENTATION Follow Normal Statutory Process
Determine Boundaries – Added and/or Deleted Property
Reaffirm Qualification Criteria
Meet with Taxing Districts
Prepare Development Proformas

10. Final Thoughts TIF is a means to an end (solving the problem).
Community acceptance of use of TIF requires front end community participation.
Level of TIF assistance must be justified based on rate of return analysis.
Communication of use of TIF is essential.

11. TIF ISN’T THE ONLY GAME The New Enterprise Zones
All current EZ areas will expire December 31, 2014.
Re-apply using the new parameters
Multi-jurisdictional
Labor Market Area Study

12. OTHER POTENTIAL INCENTIVES
Cook County Classification Incentives
Special County Classification Considerations
Business Districts

13. WHEN CAN A BUSINESS DISTRICT WORK
Often non-home rule communities
Boundaries
Eligibility Criteria
Retail / Commercial projects
Supportive retailers
Overlaying a Business District with Other Incentives (TIF or County)