This document provides recommendations to improve Evanston's use of tax increment financing (TIF) districts as economic development tools. It summarizes the history and lessons from three established TIF districts in Evanston. It then outlines eight general recommendations for TIF policy, including aligning TIF projects with economic development goals, using TIF to catalyze rather than create demand, implementing objective approval processes, and leveraging competitive bidding. The document concludes by providing four specific recommendations each for Evanston's Dempster-Dodge and proposed Chicago/Main TIF districts.
Place based policies, theoretical rationaleOECDregions
Presentation by Professor Tony Venables made at the OECD Regional Development Policy Committee Symposium: Place-based policies: rationale, implementation and policy evaluation, held on 29 October 2020.
More information: http://www.oecd.org/regional/
Staff presented this material to the Anna City Council on the many challenges and concerns for FY19/20, to get feedback and consensus to prepare the annual budget. Later in the year the actual budget will be presented for review, approval and implementation.
Financial Performance Indicators for Municipal BodiesRavikant Joshi
This PPT based on reserach report prepared for UN_HABIAT provides criteria, framework and financial performance indicators for assessing performance of municipal bodies.
Capital Investment Plan for Local GovernmentRavikant Joshi
PPT presented in Training of Trainers Workshops on Strengthening The Financial Foundation of Local Government Based on Local Government Financial Management Series of UN-HABITAT during June 4- 15 2007 - Nadi, Fiji
TIF Making The Best Economic Development Decisions For Your CommunityVierbicher
This presentation provides a history and basics of tax incremental financing in Wisconsin,Greater Economic Development Efforts, Assistance Packages, TIF Assistance Request, Case Study, Important Considerations, Municipal Funding Assistance and Best Practices.
Presentation by Professor Philip McCann made at the OECD Regional Development Policy Committee Symposium: Place-based policies: rationale, implementation and policy evaluation, held on 29 October 2020.
More information: http://www.oecd.org/regional/
Mexican Sustainable Urban and Mobility Strategy and Climate ChangeFagner Glinski
El sábado 6 de diciembre del 2014, en el Congreso de la República del Perú, se llevó a cabo, como evento oficial de COP20, la Conferencia Internacional “Movilidad Sustentable y Cambio Climático”. Allí, la Cumbre de Ciudades Líderes en Movilidad Urbana Sustentable de América Latina – MUSAL – y la Asociación Latinoamericana de Sistemas Integrados y BRT – SIBRT – hicieron el lanzamiento de la “Declaración de Lima: Libro Blanco de la Movilidad Urbana Sustentable de América Latina”, publicación que contó con la participación y auspicio de la Organización Panamericana de la Salud (OPS/OMS).
Expenditure Management in Indian Municipal BodiesRavikant Joshi
This PPT made in National Conference on Municipal Finance organised by Ministry of Housing and Urban Affairs critically examines Expenditure Management Practices in Indian Municipal Bodies.
This PPT delivered in a conference organised by Administrative Staff College of India discusses what needs to be done to improve municipal finances in India.
Sustainable Development Goals - Finding Solutions For Water Sector in AfricaViral Jani, ACMA
Water Utilities in Africa face Distribution & Commercial Losses to a whooping level of 60-70% of the amount of treated water.
This makes the water projects financially unviable and leaves the project dependent on subsidies without which there will be crippling effect on the continuity of the supply. This will have a adverse effect on health issues. On the other hand, continuous Subsidisation will adversely affect the budgetary deficit.
Through this project, I attempt to communicate the problem and suggestions to Students, Policy-Makers, Water Administrators, Community Leaders and General Public as a whole.
Thanking you all.
Tax-Increment Financing - How to Effectively Use it in Your Community - GSMSu...GrowSmart Maine
Why plan for growth and change, when it seems so much easier to simply react?
When there is a distinct and shared vision for your community - when residents, businesses and local government anticipate a sustainable town with cohesive and thriving neighborhoods - you have the power to conserve your beautiful natural spaces, enhance your existing downtown or Main Street, enable rural areas to be productive and prosperous, and save money through efficient use of existing infrastructure.
This is the dollars and sense of smart growth.
Success is clearly visible in Maine, from the creation of a community-built senior housing complex and health center in Fort Fairfield to conservation easements creating Forever Farms to Rockland's revitalized downtown. Communities have options. We have the power to manage our own responses to growth and change.
After all, “Planning is a process of choosing among those many options. If we do not choose to plan, then we choose to have others plan for us.” - Richard I. Winwood
And in the end, this means that our children and their children will choose to make Maine home and our economy will provide the opportunities to do so.
The Summit offers you a wonderful opportunity to be a part of the transformative change in Maine that we’ve seen these gatherings produce. We encourage you to consider the value of being actively involved in growing Maine’s economy and protecting the reasons we choose to live here.
Place based policies, theoretical rationaleOECDregions
Presentation by Professor Tony Venables made at the OECD Regional Development Policy Committee Symposium: Place-based policies: rationale, implementation and policy evaluation, held on 29 October 2020.
More information: http://www.oecd.org/regional/
Staff presented this material to the Anna City Council on the many challenges and concerns for FY19/20, to get feedback and consensus to prepare the annual budget. Later in the year the actual budget will be presented for review, approval and implementation.
Financial Performance Indicators for Municipal BodiesRavikant Joshi
This PPT based on reserach report prepared for UN_HABIAT provides criteria, framework and financial performance indicators for assessing performance of municipal bodies.
Capital Investment Plan for Local GovernmentRavikant Joshi
PPT presented in Training of Trainers Workshops on Strengthening The Financial Foundation of Local Government Based on Local Government Financial Management Series of UN-HABITAT during June 4- 15 2007 - Nadi, Fiji
TIF Making The Best Economic Development Decisions For Your CommunityVierbicher
This presentation provides a history and basics of tax incremental financing in Wisconsin,Greater Economic Development Efforts, Assistance Packages, TIF Assistance Request, Case Study, Important Considerations, Municipal Funding Assistance and Best Practices.
Presentation by Professor Philip McCann made at the OECD Regional Development Policy Committee Symposium: Place-based policies: rationale, implementation and policy evaluation, held on 29 October 2020.
More information: http://www.oecd.org/regional/
Mexican Sustainable Urban and Mobility Strategy and Climate ChangeFagner Glinski
El sábado 6 de diciembre del 2014, en el Congreso de la República del Perú, se llevó a cabo, como evento oficial de COP20, la Conferencia Internacional “Movilidad Sustentable y Cambio Climático”. Allí, la Cumbre de Ciudades Líderes en Movilidad Urbana Sustentable de América Latina – MUSAL – y la Asociación Latinoamericana de Sistemas Integrados y BRT – SIBRT – hicieron el lanzamiento de la “Declaración de Lima: Libro Blanco de la Movilidad Urbana Sustentable de América Latina”, publicación que contó con la participación y auspicio de la Organización Panamericana de la Salud (OPS/OMS).
Expenditure Management in Indian Municipal BodiesRavikant Joshi
This PPT made in National Conference on Municipal Finance organised by Ministry of Housing and Urban Affairs critically examines Expenditure Management Practices in Indian Municipal Bodies.
This PPT delivered in a conference organised by Administrative Staff College of India discusses what needs to be done to improve municipal finances in India.
Sustainable Development Goals - Finding Solutions For Water Sector in AfricaViral Jani, ACMA
Water Utilities in Africa face Distribution & Commercial Losses to a whooping level of 60-70% of the amount of treated water.
This makes the water projects financially unviable and leaves the project dependent on subsidies without which there will be crippling effect on the continuity of the supply. This will have a adverse effect on health issues. On the other hand, continuous Subsidisation will adversely affect the budgetary deficit.
Through this project, I attempt to communicate the problem and suggestions to Students, Policy-Makers, Water Administrators, Community Leaders and General Public as a whole.
Thanking you all.
Tax-Increment Financing - How to Effectively Use it in Your Community - GSMSu...GrowSmart Maine
Why plan for growth and change, when it seems so much easier to simply react?
When there is a distinct and shared vision for your community - when residents, businesses and local government anticipate a sustainable town with cohesive and thriving neighborhoods - you have the power to conserve your beautiful natural spaces, enhance your existing downtown or Main Street, enable rural areas to be productive and prosperous, and save money through efficient use of existing infrastructure.
This is the dollars and sense of smart growth.
Success is clearly visible in Maine, from the creation of a community-built senior housing complex and health center in Fort Fairfield to conservation easements creating Forever Farms to Rockland's revitalized downtown. Communities have options. We have the power to manage our own responses to growth and change.
After all, “Planning is a process of choosing among those many options. If we do not choose to plan, then we choose to have others plan for us.” - Richard I. Winwood
And in the end, this means that our children and their children will choose to make Maine home and our economy will provide the opportunities to do so.
The Summit offers you a wonderful opportunity to be a part of the transformative change in Maine that we’ve seen these gatherings produce. We encourage you to consider the value of being actively involved in growing Maine’s economy and protecting the reasons we choose to live here.
TIF-102 Development Incentives vs. Community GoalsVierbicher
This presentation provides the history and basics of tax incremental financing in Wisconsin, TIF as part of Greater Economic Development Efforts, Assistance Packages, Evaluation fo TIF Assistance, Case Studies, Important Considerations when reviewing Municipal Funding Assistance Requests and Best Practices.
Performance based budgeting in haverhill for a better tomorrow by brandeis un...John Michitson
Strategic planning and data-driven performance based budgeting for Haverhill, MA by MBA students from Brandeis University. A way to base funding on priorities and measured results!
These slides were presented to the Council Operations, Intergovernmental Relations &
Public Transportation Committee of Cuyahoga County Council on November 21, 2023.
This presentation provides a history of tax incremental financing in Wisconsin, trends in its use, recent changes and best practices in using TIF for community development.
Aligning Transportation and Economic Development Plans and Measuring ProgressRPO America
During the National Regional Transportation Conference, Justin Fazzari shared the Economic Development Administration's approach to aligning economic development plans with transportation or other regional planning efforts to ensure consistency.
RED_Intake Overview_January 24 february 1 2023 info sessions external FINAL...Carolyn Puterbough
The Rural Economic Development (RED) intake opened for applications on January 23, 2023 and will close on February 23, 2023 at 5:00 pm ET. These slides were provided during the public info sessions held on January 24 and February 1.
How to successfully utilize Tax Increment Financing (TIF) on downtown and infill real estate development projects. Presentation made by Ben Zellers to the American Planning Association Wisconsin conference in June 2014.
SBA & City of Evanston Economic Injury Webinar - 4/1/2020cityofevanston
Stephen Konkle from the Small Business Administration (SBA) presents options for City of Evanston businesses in the wake of the COVID-19 disaster. Includes information on the Economic Injury Disaster Loans (EIDL).
Presentation by Jared Jageler, David Adler, Noelia Duchovny, and Evan Herrnstadt, analysts in CBO’s Microeconomic Studies and Health Analysis Divisions, at the Association of Environmental and Resource Economists Summer Conference.
Many ways to support street children.pptxSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Understanding the Challenges of Street ChildrenSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
ZGB - The Role of Generative AI in Government transformation.pdfSaeed Al Dhaheri
This keynote was presented during the the 7th edition of the UAE Hackathon 2024. It highlights the role of AI and Generative AI in addressing government transformation to achieve zero government bureaucracy
What is the point of small housing associations.pptxPaul Smith
Given the small scale of housing associations and their relative high cost per home what is the point of them and how do we justify their continued existance
Russian anarchist and anti-war movement in the third year of full-scale warAntti Rautiainen
Anarchist group ANA Regensburg hosted my online-presentation on 16th of May 2024, in which I discussed tactics of anti-war activism in Russia, and reasons why the anti-war movement has not been able to make an impact to change the course of events yet. Cases of anarchists repressed for anti-war activities are presented, as well as strategies of support for political prisoners, and modest successes in supporting their struggles.
Thumbnail picture is by MediaZona, you may read their report on anti-war arson attacks in Russia here: https://en.zona.media/article/2022/10/13/burn-map
Links:
Autonomous Action
http://Avtonom.org
Anarchist Black Cross Moscow
http://Avtonom.org/abc
Solidarity Zone
https://t.me/solidarity_zone
Memorial
https://memopzk.org/, https://t.me/pzk_memorial
OVD-Info
https://en.ovdinfo.org/antiwar-ovd-info-guide
RosUznik
https://rosuznik.org/
Uznik Online
http://uznikonline.tilda.ws/
Russian Reader
https://therussianreader.com/
ABC Irkutsk
https://abc38.noblogs.org/
Send mail to prisoners from abroad:
http://Prisonmail.online
YouTube: https://youtu.be/c5nSOdU48O8
Spotify: https://podcasters.spotify.com/pod/show/libertarianlifecoach/episodes/Russian-anarchist-and-anti-war-movement-in-the-third-year-of-full-scale-war-e2k8ai4
1. An Assessment of
Tax Increment Financing
as a Tool for Economic Development
Seth Capron
Nick Federowicz
Eric Nyman
Brandon Strong
Add photo of Evanston?
December 2012
2. Objectives
• Draw lessons by examining Evanston’s experience with TIF and
the
experience of TIF districts elsewhere in the U.S.
• Make recommendations on ways to improve the use of TIF as
an
economic development tool
2
3. Agenda
3
1. TIF Districts in Evanston
2. Major Findings
3. Recommendations for General TIF Policy
4. Recommendations for Specific TIF Districts
4. Agenda
4
1. TIF Districts in Evanston
2. Major Findings
3. Recommendations for General TIF Policy
4. Recommendations for Specific TIF Districts
5. Summary of Evanston TIF Districts
5
TIF District
Howard and
Ridge
West Evanston
Downtown II
Southwest
Howard and
Hartrey
Washington
National
Dempster-
Dodge
Begin/End
2004/2027
2005/2028
1985/2008
1990/2013
1992/2015
1994/2017
2012/2035
Size
(acres)
35
Beginning
EAV
$5,978,279
$37,477,570
$1,835,672
$1,007,606
$7,034,353
$25,727,379
$10,816,879
2011 EAV
$11,808,477
$45,084,553
$145,470,000
$8,223,329
$23,747,973
$103,106,568
N/A
Major Projects
Church St. Plaza,
Hilton Garden Inn,
Maple Ave. Garage,
Optima
Bond
Proceeds
None
None
$23,144,579
$2,100,000
$9,069,445
$52,061,429
None
13
24
21
11
116
16
Sam’s Club, Ward
Manufacturing
Retail Center: Target,
Jewel, Best Buy,
Office Max
N/A
Park Evanston, Whole
Foods, Sherman
Plaza & Garage
415 Howard St.
apartment building
Church St.
Townhomes,
Greenwood Lofts, LSL
Industries
6. Three well-established TIF districts provide lessons for
Evanston today
• Southwest TIF district provides lessons for the newly created
Dempster-
Dodge TIF district
• Downtown II and Washington National TIF districts provide lessons
for
the proposed TIF district at Chicago and Main
6
7. A brief history of the Southwest TIF district
After Image
Thriving retail
7
• City combined parcels to
attract a large development
• Sam’s Club opened for
business in 1992
• Ward Manufacturing
relocated
from downtown Evanston in
1995
8. Key observations for the Southwest TIF district
• Addressed impediments to development
• May have created positive “spillover” effects by drawing traffic to the
neighboring retail center
• Concern: Has the success of the Southwest TIF district come at the
expense of retailers elsewhere in Evanston?
8
Financially successful, but benefits for the broader community are
unclear
9. A brief history of the Downtown II and Washington
National TIF districts
After Image
Maple Street rejuvenated
9
• Downtown II, the first TIF
district in Evanston, evolved
from the Research Park
• Downtown II closed in 2008,
releasing significant property
tax revenues to taxing
authorities
• Washington National
resulted
in two large developments:
Park Evanston and
Sherman
Plaza
10. Key observations for the Downtown II and Washington
National TIF districts
• Transformed and significantly expanded downtown Evanston
• Utilized competitive bidding processes
• Projects attempted to align with community strengths, market
demand, and demographic trends
• The city successfully reassessed goals midstream
10
Both TIF districts benefitted from adapting to market conditions
11. Agenda
11
1. TIF Districts in Evanston
2. Major Findings
3. Recommendations for General TIF Policy
4. Recommendations for Specific TIF Districts
12. TIF has the greatest impact when used as part of a
broader economic development plan (1 of 8)
12
• TIF is a tactical tool that can be effective at furthering a city’s overall
economic development goals
• TIF projects that are not in sync with the city’s objectives are likely to
fail
• The Market Square TIF in Houston is an example of positive
alignment with economic development goals
Economic Development Goals
TIF Selection
Strategic
Initiative
Alternative Tools
13. TIF produces greater benefits when it is used to catalyze
rather than create demand (2 of 8)
13
• TIF can catalyze demand by removing barriers to development
• Municipalities should listen to the market when choosing TIF projects
Market
Indicators
Peninsula Town Center,
Hampton, VA
Houston Pavilions,
Houston, TX
14. TIF is viewed more favorably by the community if a clear
and objective approval process is in place (3 of 8)
14
• Following an objective and scripted process encourages trust,
generates buy-in, and ensures projects are financially and
strategically sound
• Gallery Place in Washington, D.C. is an example of a well-designed
process
Strategic Assessment
Financial Analysis
TIF certified by city
official or department
before presentation
to elected body
Proposed TIFs
assigned to a
city official or
department
Structured Approval Process
15. TIF projects tend to require less public subsidy if the city
leverages competitive market forces to choose developers (4 of
8)
15
• This option is most practical when municipalities own or control the
land
• Competitive bidding ensures the smallest amount of gap financing is
provided to the developer
• This process is illustrated by the Maple Avenue development in
Evanston’s Downtown II TIF district
Bid
#3
Bid
#2
Bid
#1
Select
Optimal
Project Bid
16. The most successful use of TIF resources provides
benefits to the broader community (5 of 8)
16
• Financial performance is easy to measure, but community benefits
are the ultimate goal
• Important to include measurable goals and metrics that capture
community benefits
• Essential to hold developers accountable for benefits to the
community
17. development in a TIF district, the city can protect its
financial integrity (6 of 8)
17
• Depending on the specific structure of a TIF deal, the municipality
can bear either very little or a lot of the risk
• Lynnhaven Mall in Virginia Beach, Virginia and Peninsula Town
Center in Hampton, Virginia are examples with financing structures
that put the risk on the private sector
Lower Risk Higher Risk
Note Bond
Back-Up
Assessment
Backed only
by Increment
Clawback No Clawback
Pay-as-you-
go
Pay Upfront
18. TIF success is less debatable when clear metrics are in
place to track and monitor performance (7 of 8)
18
• Agreeing upon clear metrics from the onset of a project ensures
goals remain in sight
• Creating metrics should be a joint exercise between the city and the
developer
• Holding developers accountable for performance is critical to
ensuring success
Develope
r
City of
Chicago
Coca-
Cola
Subsidized
Rent
Meet Jobs Goal
or Pay Penalties
Tax
Abatement
Example: Chicago
Northwest Industrial
Corridor TIF
Goal: Create 240 Jobs
19. TIF can be managed more effectively when overseen by
an advisory board of community stakeholders (8 of 8)
19
• Providing an opportunity for stakeholders to be involved promotes buy-
in
• An advisory board of community stakeholders ensures local
community needs are met
• Community members can hold developers accountable for promised
community benefits
TIF
Advisory
Board
School
District
Community
Organizatio
n
Local
Business
Local
Resident
20. Agenda
20
1. TIF Districts in Evanston
2. Major Findings
3. Recommendations for General TIF Policy
4. Recommendations for Specific TIF Districts
21. Evanston should approve TIF districts only after specifying how
they help the city achieve its economic development goals (1 of
4)
• Make sure that the city’s economic development goals are
clear
• Describe targeted areas of prioritization
21
Alignment with economic development goals increases the likelihood of
success
• Define how the TIF district will help the city achieve its goals
• The objectives of the district should be aligned with the city’s
economic development goals
22. Evanston should implement a more rigorous process for
TIF approval, oversight, and accountability (2 of 4)
• TIF approval should require official certification
• Delegate the responsibility to a specific individual within the city,
such as the CFO
• The individual’s responsibilities include conducting a financial
gap analysis, projecting economic impacts, and ensuring
strategic alignment with the city’s overall economic development
plan
• Create metrics and dashboards to monitor performance
• Consider appointing an oversight body of local stakeholders
• Hold recipients of TIF funds accountable for performance
• Link subsidies received to performance
22
A rigorous process leads to greater trust and better performance
23. Evanston should shift financial risk to the private
sector (3 of 4)
• Structure deals to minimize financial risk to the city
• Structure financing so that the private sector bears up-front
costs
• Create guidelines requiring a minimum level of performance
before the city reimburses TIF-eligible expenses
• Possible structures include:
• TIF notes
• Claw-back provisions
• Back-up assessments
• Pay-as-you-go funding
23
Shifting the risk to the private sector protects the city
24. Evanston should maximize the usage of competitive
market forces (4 of 4)
• When the city owns the land, require proposals from multiple
developers
• Proposals must include financial information and an assessment
of how the project will further the city’s strategic goals
• Multiple proposals decrease the need for public subsidies
• When a private entity owns or controls the land, other
precautions are necessary
• External validation of pro forma financial statements
• A financial structure that places the risk on the private sector
• Extra emphasis on identifying concrete benefits for the
community
24
Taking advantage of competitive market forces improves the chance of
success
25. Agenda
25
1. TIF Districts in Evanston
2. Major Findings
3. Recommendations for General TIF Policy
4. Recommendations for Specific TIF Districts
26. Dempster-Dodge TIF District
• Determine the root cause of the decline of the shopping
center
• Our research suggests West Evanston faces intense retail
competition
• Evanston Plaza is now a convenience center rather than a
destination that draws traffic
• Address issues in the surrounding neighborhood
• Ensure plans for Dempster-Dodge TIF district do not ignore the
surrounding area
• Coordinate with the West Evanston TIF district
• Create a specific plan for short-term stabilization
• Explore earmarking some of the initial $2M of TIF funding to
subsidize new tenants
• Identify desired effects of TIF expenditures
26
27. Proposed TIF District at Chicago & Main (1 of 2)
• Assess the viability of the project’s financial goals
• Ensure projections appropriately reflect market conditions
• Assess the risk of relying on a single project to generate tax
increment
• Focus TIF expenditures on projects that benefit the broader
community
• Ensure the goals of the proposed project are aligned with the
city’s economic development goals
• The vacant lot is a viable candidate for larger office space,
however, few current tenants in Evanston occupy more than
10,000 sq. ft.
• The city should carefully consider the challenges and potential
consequences of attracting office tenants to a new
development out of the core downtown
27
28. Proposed TIF District at Chicago & Main (2 of 2)
• Mitigate financial risk for the city
• Utilize a pay-as-you-go structure to provide tax abatements or
subsidized rents only if tax increment materializes
• Consider issuing Special Service Area bonds backed by a
guaranteed stream of revenue from the property owner
28
29. Summary
Usage of TIF as an economic development tool in Evanston is
more effective and accepted when:
• It is aligned with the city’s economic development goals
• Financial risks to the city are mitigated
• TIF expenditures benefit the broader community
29