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Proposed Chicago/Main
Tax Increment Financing
District
August 13, 2012
Overview
• Review Proposed Boundaries of District
• TIF District Eligibility
• Plan for Implementation
• Budget
• TIF Performance Measures
• Timeline
3
Proposed
Chicago/
Main TIF
District
Properties for Proposed TIF Inclusion
---PARCELS--
• Mixed-use properties on
Main Street (Sherman to
Chicago Avenue)
• Vacant Lot at Southeast
Corner of Chicago & Main
• CTA & Metra Stations
• Eligible properties on
Chicago Avenue
---INFRASTRUCTURE---
• CTA & Metra Rail
(Dempster – South Blvd)
• Portion of Main St.
• Portion of Chicago Ave.
• Portion of Custer Ave.
• Public Parking Lots &
Alleys
Why Chicago/Main TIF?
• Infrastructure Improvement
• Transit Oriented Development -- Potential for
CTA/Metra enhancements
• Open Space Development
• Private Development
TIF Designation Process
• Completed the Illinois State Statute required
for TIF eligibility study and determined that
the site met the criteria for a TIF.
• Based on input from staff, TIF consultants
completed the Redevelopment Plan which
outlines goals, objectives, strategies, and
budget.
6
TIF Eligibility Factors
• Lack of Growth in EAV
• Inadequate Utilities
• Obsolescence
• Deleterious Lay-Out
• Lack of Community Planning
• Deterioration
Plan for Implementation
• Attached document will move simultaneously
with formal TIF approval process
• Guide for how TIF Funds will be expended
– Transit-Oriented Development
– Public Infrastructure
– Open Space
– Private Development
Proposed TIF Budget
Program/Improvements Estimated Costs
Land Acquisition, Assembly, Relocation $2,500,000
Site Prep, Remediation, Demolition, Site Grading $2,500,000
Utility Improvements $6,000,000
Rehabilitation of Existing Public & Private Structures; Taxing District
Capital Improvements
$5,500,000
Public Facilities (Inc. Parking & Streetscaping) $4,500,000
Interest Costs Pursuant to the Act $2,000,000
Professional Service Costs $1,000,000
Job Training $500,000
Statutory School District Payments $500,000
TOTAL ESTIMATED TIF BUDGET $25,000,000
7/23/2014 9
Potential TIF Performance Measures
Measure Examples
Input •Private investment
•Square feet of land assembled for TIF
•Bond proceeds
Output/
Workload
•Jobs created or retained
•Number of streetscaping fixtures installed
•Commercial space created (square feet)
Efficiency •Leverage ratio (private investment/public investment)
•Cost per square foot of commercial space
•Public assistance per job created/retained
Effectiveness •% change in AV within TIF before and after TIF creation
•Municipal sales/property taxes before and after TIF creation
Risk •Debt Coverage Ratio
•Credit ratings of anchor tenants
•Tenant diversification (e.g. % of total TIF EAV)
Timeline of Public Approval Process
Date Activity
Monday, Aug. 13 Introduction of Ordinance to City Council to Adopt Public Hearing
Concerning Creation of Chicago/Main TIF District (Intro)
Monday, Sept. 10 Introduction of Ordinance to City Council to Adopt Public Hearing
Concerning Creation of Chicago/Main TIF District (Action)
Thursday, Sept. 20 Notices sent to residential addresses within 750’ of the proposed
boundaries of the TIF District
Tuesday, Oct. 2 Joint Review Board Meeting
Thursday, Nov. 1 Date by which the Joint Review Board makes a non-binding
recommendation regarding the TIF area.
Monday, Nov. 12 City Council holds the Public Hearing for the Proposed
Chicago/Main TIF
Monday, Nov. 26 City may introduce ordinance to establish the Chicago/Main TIF
Monday, Dec. 10 City may adopt ordinance to establish the Chicago/Main TIF
District

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Chicago main tif presentation - city council august 13, 2012

  • 1. Proposed Chicago/Main Tax Increment Financing District August 13, 2012
  • 2. Overview • Review Proposed Boundaries of District • TIF District Eligibility • Plan for Implementation • Budget • TIF Performance Measures • Timeline
  • 4. Properties for Proposed TIF Inclusion ---PARCELS-- • Mixed-use properties on Main Street (Sherman to Chicago Avenue) • Vacant Lot at Southeast Corner of Chicago & Main • CTA & Metra Stations • Eligible properties on Chicago Avenue ---INFRASTRUCTURE--- • CTA & Metra Rail (Dempster – South Blvd) • Portion of Main St. • Portion of Chicago Ave. • Portion of Custer Ave. • Public Parking Lots & Alleys
  • 5. Why Chicago/Main TIF? • Infrastructure Improvement • Transit Oriented Development -- Potential for CTA/Metra enhancements • Open Space Development • Private Development
  • 6. TIF Designation Process • Completed the Illinois State Statute required for TIF eligibility study and determined that the site met the criteria for a TIF. • Based on input from staff, TIF consultants completed the Redevelopment Plan which outlines goals, objectives, strategies, and budget. 6
  • 7. TIF Eligibility Factors • Lack of Growth in EAV • Inadequate Utilities • Obsolescence • Deleterious Lay-Out • Lack of Community Planning • Deterioration
  • 8. Plan for Implementation • Attached document will move simultaneously with formal TIF approval process • Guide for how TIF Funds will be expended – Transit-Oriented Development – Public Infrastructure – Open Space – Private Development
  • 9. Proposed TIF Budget Program/Improvements Estimated Costs Land Acquisition, Assembly, Relocation $2,500,000 Site Prep, Remediation, Demolition, Site Grading $2,500,000 Utility Improvements $6,000,000 Rehabilitation of Existing Public & Private Structures; Taxing District Capital Improvements $5,500,000 Public Facilities (Inc. Parking & Streetscaping) $4,500,000 Interest Costs Pursuant to the Act $2,000,000 Professional Service Costs $1,000,000 Job Training $500,000 Statutory School District Payments $500,000 TOTAL ESTIMATED TIF BUDGET $25,000,000 7/23/2014 9
  • 10. Potential TIF Performance Measures Measure Examples Input •Private investment •Square feet of land assembled for TIF •Bond proceeds Output/ Workload •Jobs created or retained •Number of streetscaping fixtures installed •Commercial space created (square feet) Efficiency •Leverage ratio (private investment/public investment) •Cost per square foot of commercial space •Public assistance per job created/retained Effectiveness •% change in AV within TIF before and after TIF creation •Municipal sales/property taxes before and after TIF creation Risk •Debt Coverage Ratio •Credit ratings of anchor tenants •Tenant diversification (e.g. % of total TIF EAV)
  • 11. Timeline of Public Approval Process Date Activity Monday, Aug. 13 Introduction of Ordinance to City Council to Adopt Public Hearing Concerning Creation of Chicago/Main TIF District (Intro) Monday, Sept. 10 Introduction of Ordinance to City Council to Adopt Public Hearing Concerning Creation of Chicago/Main TIF District (Action) Thursday, Sept. 20 Notices sent to residential addresses within 750’ of the proposed boundaries of the TIF District Tuesday, Oct. 2 Joint Review Board Meeting Thursday, Nov. 1 Date by which the Joint Review Board makes a non-binding recommendation regarding the TIF area. Monday, Nov. 12 City Council holds the Public Hearing for the Proposed Chicago/Main TIF Monday, Nov. 26 City may introduce ordinance to establish the Chicago/Main TIF Monday, Dec. 10 City may adopt ordinance to establish the Chicago/Main TIF District