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TIF at 111th & Kedzie faring well despite strain on other Chicago's finances
Submitted by Medill News Service on Thu, 10/30/2008 - 11:13am.
By Adam Verwymeren
Medill Reports - Chicago
With Mayor Daley poised to slash 1,000 government jobs to plug a $400 million deficit, the city's TIF budget continues to do booming business.
Revenue from the city's tax increment financing districts are up 11.5%, according to a report issued on Wednesday by Cook County Clerk David Orr. That's a jump to $555 million from the $500 million TIFs took in the previous year. The 111th St./Kedzie TIF district - which stretches from Pulaski Road to Whipple Street along 111th Street - took in more than $608,000 in revenue in 2007 - a 10.5% jump from just a year earlier.
Cook County Commissioner Mike Quigley, a TIF critic, said people are paying more into the TIF program each year, but the workings of the districts remain a subject they know little about.
"What's insidious here is that it's the fastest growing part of people's tax bill but its not on their tax bill," Quigley said. "It is a growth in government that has no transparency or accountability."
Though TIF accounts are growing at a time the budget is shrinking, the city has some options available that might ease the current budget gap.
For one, the city could tap money in a few of the bigger TIFs.
By declaring the money surplus, officials can send it back to individual taxing bodies -- such as the county, school board and the city's general operating budget -- to help ease potential shortfalls.
City Hall could also issue bonds backed by the money in TIF accounts expected to expire over the next few years, an option that could raise the $400 million they need to close the budget hole this year, an idea being batted around City Hall, according to a source who has worked closely with the city's TIF program.
However, John McCormick, who served as the finance manager for the city's TIF project, said it is not a simple zero-sum game between the city's general budget and the money taken in by TIFs, since TIFs have the power to create new tax revenue.
"It is growing from the new development that's coming in and when TIFs are set up it fosters this new development," McCormick said.
However, he also adds that it is often hard to differentiate between money created by TIF development and growth that would happen even without the TIF.
TIFs freeze the amount of property taxes a district pays into the city, school and county budgets.
However, residents continue to pay more in taxes as property values increase; the difference gets diverted into the TIF fund.
The idea of a TIF is to allow a blighted area to hold onto more of its taxes. However, many TIFs in Chicago are found in affluent areas such as the Loop.
Despite the budget problems, the city continues to create new TIF districts. Seventeen new TIF districts, created in 2007, took in nearly $10 million. The city has created four additional TIF districts this year.
The LaSalle Central TIF, one of the city's most controversial districts, took in $10 million, making it the fourth-largest, despite only being two years old. In the coming years, it is expected to easily surpass the $111 million taken in by the Central Loop TIF.
Orr called for more transparency in the city's TIF program, which is not subject to the same level of oversight as the general operating budget.
"Because so much tax revenue has been going to TIFs, they have become the subject of controversy and debate," Orr said. "I believe much more information needs to be made available to the public to assist taxpayers in making their own judgments on TIFs."
Gee, this took how many years..a decade? With the economy the way that it is, I really don't see any further business moving in. Look at the new condos with the store fronts on 111th and Lawndale. EMPTY. Look at how we ( Chicago and Cook County ) are being taxed to death. Why would any business move in? The few brave who have come in are a much welcome sight but I don't expect more.
I drive up and down 111th often, through the Kedzie intersection and Westward.
Its easy to see that the businesses are moving out (hopefully the others that are settling in will be successful) and hopefully this area will find itself bustling with other newcomers.
It saddens me to see the new condos by the park unoccupied, they seem so obvious and I love how the architect designed the facades differently on each building.
But what also bugs me are the vacant lots and buildings that are being allowed to fall apart.
A TIF district should help us reinvest in our community with the taxes earned... I don't see how its working here yet.
I worry that the taxes will become too high in this area... will our community be represented rightfully?
Of course we also see how SXU has landed on 111th and finally the rental space is filled, that's nice to see... but I wonder how long it will take before the campus increases?
will this be a good thing?
I have so many thoughts/concerns....
If we're in a TIF district its imperative to keep those monies in this area, working for those of us who work for a living and are interested in keeping our homes in a neighborhood that reflects our needs and attitudes.
thanks for letting me go on & on & on....
Hi, At the town hall meeting last night, Rugai did mention that there will be monies (loans) available for new and exsisting businesses in the Mt. Greenwood area to remodel or repair. I also wondered how much the stores and condos were going for across from the park. I can only imagine how much it would be to lease a new store when I am paying an arm and a leg for a small space on Kedzie!
(oops! I accidentally double posted)
If you see my response twice, please disregard.
Thanks!
Comment: City Council Adopts
Submitted by Peggyr on Sat, 11/15/2008 - 9:41am.City Council Adopts Ordinance
‘Coming Soon’ just got sooner. An Ordinance authorizing the redevelopment agreement between developers of the Walgreens Signature Corner project and the City of Chicago was approved October 8, 2008. This is a huge step in moving closer to an actual groundbreaking.
I also saw that Posh Pet has relocated, as well as the resale clothing store, and the office that was next store to them. There is a sign in the window for redevelopment opportunities. Are we going to be getting some new stores in the area? Besides the 3 that are getting ready to open?