TIFs create short and long term benefits for communities. TIF benefits include:
No tax increases
- In TIF areas properties are assessed and taxed the same way as in non-TIF areas. The only change is that during the life of the TIF the property tax revenues are distributed differently — with the incremental increase in tax revenue going to the municipality to finance some of the redevelopment expenditures within the TIF area.
Increased property values
- The engine that drives TIF is investment in private property subject to the property tax. It is primarily this investment that causes the increased property values and enables the TIF to be a valuable redevelopment tool for cities.
Private investment and development
- Chicago Heights — ABC Rail Corporation had two manufacturing facilities in operation in Chicago Heights. The corporation wanted to expand its operations and open a third plant in the City. ABC Rail purchased a vacant industrial property and renovated the 195,000 square foot facility into a plant that will manufacture railroad tracks and switches. Chicago Heights provided $1.5 million in TIF assistance to acquire and renovate the property. ABC Rail invested $16 million in the expansion project.
- Peoria — The $50 million expansion of the PMP Fermentation Products Facility created 30 new technical jobs in addition to the current 60 positions. Approximately 250 construction jobs were created during the two-year construction period.
- Granite City — National Steel Corporation needed to add new coating line facilities to its existing operations. The company opted to remain in Granite City because TIF incentives made expansion possible — keeping more than 3,500 jobs in the area.
Job training programs
- Riverdale —To increase its tax base and ensure employment opportunities for area residents, the Village of Riverdale offered $10,000 annually in matching funds for job training programs to each of the companies in the district.
Stronger, broader tax base
- Washington — Infrastructure improvements in the City of Washington — new roads, demolition of dilapidated structures, a new well, a new water treatment plant, and a water tower — attracted private developers to invest in the community. As a result, the equalized assessed value of the city went from $318,000 in 1985 to more than $1.8 million in 1993. *Stronger economic base
- Chicago — After the demise of the union stockyards in the 1960’s, hundreds of acres of land on Chicago’s south side were left vacant with inadequate infrastructure. $15 million in TIF funds were used to rehabilitate the area. Today, the Stockyards Industrial Park is one of the nation’s most successful inner city industrial parks with an industrial community of 200 firms and 17,000 workers.
- Chicago — One of the City of Chicago’s primary development goals in its North Loop TIF district was the creation of a theater district to be the “Broadway of the Midwest.” The Oriental Theater, part of this entertainment district, is expected to add $3.5 million annually to city tax revenue. No federal or state approval of this project was required.
Incremental revenue is reinvested in the TIF district
- Bartlett — The Village of Bartlett plans to use funds from a downtown TIF district for streetscaping in the business district. The $600,000 in improvements includes street resurfacing, landscaping, brick payers, streetlights, and benches.
Stimulates investment outside TIF district boundaries
- In 1993, a subsidiary of Tru Vue, Inc. of New York City relocated its 40,000 square foot industrial facility to the Eastman — North Branch TIF in Chicago. This $5 million project brought over 20 new jobs to the district and encouraged other industrial interests to establish operations in the area.