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A TIF is a successful economic development tool used by many municipalities across Illinois. The purpose of a TIF is to promote redevelopment that would not otherwise take place. When a TIF is established, the “equalized assessed value” (EAV) of all the properties within the TIF District is frozen throughout the TIF’s duration, which is typically 23 years. Property taxes going to the municipality and other taxing bodies are then based on this frozen EAV. Any additional property taxes generated by an increase in the EAV over time (the increment) will go into a TIF fund, which the municipality can use to incentivize new development and construct public structures and amenities.
When a TIF expires, all of the properties within the TIF go back on the tax rolls at their full assessed value, which means taxing bodies benefit from the new revenue they now receive thanks to the TIF-related development.
The TIF will be used to meet the goals of and finance the Village’s Town Center redevelopment plan, which are to attract new restaurants and retail businesses, create new public amenities and beautification projects, and permanently generate additional revenue for the Village, schools, parks, library, Fire Protection District and other taxing bodies. The plan also allows for the construction of a new Village police department and municipal center, which will open up the current Village Hall site for redevelopment on a prime location right next to the Metra station.
Ground has already broken on a new office building across from the Village Hall, which will host retail and restaurants on its first floor and serve as an anchor for further mixed-use development on surrounding blocks.
Along with new businesses catering to residents and visitors, public developments will include a public plaza on part of the land currently occupied by the Village Hall, new streetscaping, outdoor furniture, plantings, sidewalks and other amenities.
No. There are no tax increases attributed to the development of new business activity or infrastructure. Rather, incremental revenue generated is reinvested in the TIF and stimulates new investment both in, and often outside, the TIF boundaries.
Establishment of a TIF does not reduce property tax revenues available to the other taxing bodies in Winfield. These taxing bodies continue to collect property taxes at the base value throughout the life of the TIF.
The Joint Review Board, made up of representatives of the various taxing bodies has approved the TIF and many local elected officials and leaders in Winfield have spoken favorably about the plan.
The reservations that some people have about the TIF is primarily due to a misunderstanding of how a TIF works. Once they understand that a TIF is a commonly-used and successful economic development tool and will not result in higher taxes or a greater burden for schools, their concerns are usually assuaged.
In Illinois, TIF districts are used by communities with both small and large populations. TIFs can help communities of any size build infrastructure and attract private investment. Many municipalities in DuPage County and across Illinois have brought significant development and traffic to their downtowns using TIFs—and that includes Winfield. Our existing TIF #1 in the Town Center has been a great success, including the construction of the recently completed 163-unit Winfield Station luxury apartment complex.
Additionally, establishment and operation of a TIF is completely transparent. Local governments (taxing bodies) monitor the progress of the TIF district. By law, all the school districts and major taxing bodies meet with the TIF municipality annually to review the progress of each TIF. Under Illinois law, municipalities have an obligation to cooperate with other taxing bodies in monitoring TIFs. The Joint Review Board must hold a public meeting annually to review the effectiveness and status of the TIF district and issue an annual report with financial disclosures.
TIFs can create new funding for schools. Schools continue to receive all the tax revenue they were entitled to before the creation of the TIF district. Also, improving the Town Center will increase the tax base in the long run. The property tax revenue generated from private development attracted by a TIF designation is truly "new" money. Without the TIF, development would not occur and the "tax increment" (increase in property values) would not be produced.
Some critics of TIFs argue that school districts are entitled to immediately receive a percentage of the TIF increment. However, it is the tax increment that pays for the improvement that attract private investment and stimulate growth. If the increment cannot be used for financing improvements and incentives, private investment and economic development will not occur, and no increment will be made available to any taxing bodies. With redevelopment, property values will rise in properties surrounding the TIF area as well, providing added revenue to the school district.
When the TIF district expires, the tax increment is returned to the tax rolls and available to schools and other taxing bodies.
The Village has negotiated an agreement with CDH to act as a developer for this project. In return, CDH is constructing a parking deck to accommodate increased visitors and staff, which can also be used by residents and visitors on weekends. This agreement hinges on the Village creating TIF #2, which is the final ingredient needed for the redevelopment plan to work.
As a nonprofit entity, the CDH parking deck would normally be exempt from property taxes. However, under our agreement, CDH will put the deck on the property tax rolls for 20 years. Tax revenue from the parking deck will contribute to the Village’s TIF fund established by TIF #2, along with other revenue generated by new development in the TIF.
TIF #1 has been a great success, enabling, among other things, construction of the recently completed 163-unit Winfield Station luxury apartment complex. This complements the Town Center 1 building on Winfield Road just north of the Metra tracks, which was also a TIF project.
When TIF #1 expires in 2027, its properties will bring a windfall of revenue for local taxing bodies, estimated at more than $750,000 dollars per year. But, these entities will actually see rewards much sooner than that. Immediately upon the Village’s approval of TIF #2, some of the parcels within TIF #1 will be returned to the property tax rolls, which will provide new revenue for taxing bodies six years ahead of schedule.
The tables below show the estimated new revenue available for local taxing bodies over the proposed 23-year term of TIF #2 after returning some TIF #1 parcels to the tax rolls this year, and after TIF #1 expires in 2027.
The Winfield Village Board will hear public comment on TIF #2 at its regular Board meeting on Thursday, September 16. After that, the Board plans to vote on advancing the TIF at its Thursday, October 7 meeting.
The Village Board welcomes comments and questions about this important economic development project.