TIF District Information

Funding
The Downtown Redevelopment along with many other improvements are funded through the Tax Increment Finance District (TIF). TIFs are a special tool that a community has to generate money for economic development in a specific geographic area. TIFs allow a community to re-invest all new property tax dollars in the neighborhood from which they came for a 23-year period. TIF Funds must only be spent within the TIF District. These projects are not funded with property taxes.

The state law that allows Illinois cities and towns to create TIFs requires that they are only established in areas that are blighted or in danger of becoming blighted. A municipality establishes a TIF district within an area requiring public infrastructure to encourage public and private property development or redevelopment.

How TIF Works
  • New revenues arise if new development takes place in the TIF district, or if the value of existing properties rises, resulting in higher tax bills. These funds can be spent on public infrastructure projects, or given as subsidies to encourage private development within the specific defined TIF District.
  • Tax Payers within a TIF do not pay an additional tax and are not taxed at a higher rate.
  • TIFs can be a tool for implementing a community-based revitalization plan through, improving parks and schools, fixing basic infrastructure, putting vacant land to productive use, creating well-paying jobs, and meeting other local needs.
  • When the municipality creates the district, the existing property values for properties within the district are recorded; this is the Original Taxable Value (OTV). These properties already generate a certain amount of tax revenue for both the municipality and other taxing bodies. Revenues generated by the OTV will continue to go to the taxing entities throughout the life of the TIF district. However, as the property value increases due to TIF-financed improvements, so does tax revenue generated by the district as a whole - this increase is the increment. The increment then goes to the municipality and is used to build public infrastructure that will allow for real property development and redevelopment to occur. The law specifically indicates what the funds can be used for.
TIF Districts
The Village currently has three TIF Districts:
  • The Downtown TIF was created in January 2004 (Expires in 2026).
  • The Original Marquette TIF District which was established in 1989 (expires in 2024). This TIF was granted a one time 12 year extension in 2011.
  • The Romeo Road TIF was created in 2007 (expires in 2030).