The TIFs of Lakeside

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The Alliance of the South East (http://www.asechicago.org) hosted a summit on the massive Lakeside development project slated for the site of U.S. Steel on Chicago's southeast side on September 7, 2013. This presentation from The TIF Illumination Project (http://www.tifreports.com) gave the background on the nearby TIF districts.

You can get this full presentation online at the TIF Data Store at http://tinyurl.com/TIF-Data-Store. The full presentation contains this data:

- how many TIFs in the ward
- estimation of TIF property tax extraction from TIFs in the ward for latest year
- if a TIF is 100% or close to 100% in ward, lifetime property tax extraction
- how much money left in those TIF accounts FROM the ward
- what projects funded by TIFs in the ward
- examples from the TIF Hall of Shame

If this information is valuable to you, please sign up for our mailing list at http://tinyurl.com/SignUp-CivicLab. If you are in Chicago and need a place to work - consider co-working at the Lab!

Please support the work of the CivicLab by making a deductible contribution via our fiscal agent, the Investigative News Network, at http://tinyurl.com/SupportTheLab-INN.

Find out more - info@civiclab.us.

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The TIFs of Lakeside

  1. 1. September 7, 2013 Tom Tresser
  2. 2. 2 What are TIFs?
  3. 3. 3 What are TIFs?
  4. 4. 4 What are TIFs? • Created by municipality (state statute) • Boundaries cross political and community boundaries • Designed to subsidize some business project in “blighted” or under-served area • Captures “incremental” property taxes ABOVE base when district was created • Lasts 23 years
  5. 5. 5 What are TIFs? Under state law, areas proposed for TIF designation must possess numerous blighting factors to be eligible: • Age • Obsolescence • Code violations • Excessive vacancies • Overcrowding of facilities
  6. 6. 6 How Do TIFs Work? When the TIF is created, the city tallies up all the property taxes generated by district in that year (called the "base" amount). After that, all property tax increases above the base (the "increment") are channeled to the TIF district. The property taxes collected from properties inside the district BEFORE the district was created that go to units of government stays FLAT for the life of the TIF (23 years).
  7. 7. Better Government Association 7
  8. 8. 8
  9. 9. 9 Where are TIFs? • All over Chicago and Cook County = 435 TIFs in 2012 • 154 in city of Chicago {Was 163 - 9 terminated in 2012} • Additional 281 in suburban Cook County
  10. 10. Where are TIFs? TIF 101 10
  11. 11. 11 Where are TIFs?
  12. 12. 12 How Much Revenue Do TIFs Collect?
  13. 13. How Much Revenue Have TIFs Collected? 13 Ouch! Source: Cook County Clerk
  14. 14. 14 How Much Revenue Do TIFs Collect? 2012 TOTAL TIF REVENUE FOR COOK COUNTY City of Chicago TIFs diverted $457 MILLION Suburban Cook County where 83 municipalities have TIFs TIFs diverted $266 MILLION TOTAL FOR 2012 = $723 MILLION
  15. 15. 15 How Much Revenue Have TIFs Collected Since TIFs Introduced Here?
  16. 16. 16 How Much Revenue Do TIFs Collect? 2012 Actual TIFs extracted $457million in 2012. That # is 51% of the TOTAL amount of property taxes that went to the city for its operations! TIF = “Off the books” “On the books”
  17. 17. 17
  18. 18. The 10th Ward is the 5th most TIF’d ward in the City. 61.9% of the ward’s properties are in TIF districts. The 8th Ward is the 18th most TIF’d ward in the City. 30.7% of the ward’s properties are in TIF districts. The 7th Ward is the 36th most TIF’d ward in the City. 18.5% of the ward’s properties are in TIF districts. TIF 101 18
  19. 19. • We are told that TIFs have NO impact on our property taxes. • This bill is from a property inside the Englewood TIF. • It shows “0.00” impact on this person’s bill. Nothing.
  20. 20. 20 The civics books say our property taxes are distributed like this… But in 2011 our property taxes in Chicago were REALLY distributed like this…
  21. 21. 21
  22. 22. Click here to open the 163 2011 PDF Annual Reports. One by one. 22 Repeated for 154 2012 Annual Reports.
  23. 23. 23
  24. 24. 24
  25. 25. 25 THE CITY HAD $1.7 BILLION IN UNSPENT TIF FUNDS AT THE END OF 2011 and 2012!
  26. 26. 26 What are TIFs doing to us?
  27. 27. 27 THE TIFS OF THE LAKESIDE DEVELOPMENT AREA Avalon Park/South Shore Chicago Lakeside South Works Industrial Lake Calumet South Chicago Commercial Avenue 71st Street/Stony Island Stony Island/Burnside
  28. 28. You can get presentations from ALL our TIF Illuminations online at the TIF Data Store at http://tinyurl.com/TIF-Data-Store. These presentations will tell you: - how many TIFs in the ward - estimation of TIF property tax extraction from TIFs in the ward for latest year - if a TIF is 100% or close to 100% in ward, lifetime property 28 tax extraction - how much money left in those TIF accounts FROM the ward - what projects funded by TIFs in the ward - examples from the TIF Hall of Shame If this information is valuable to you, please sign up for our mailing list at http://tinyurl.com/SignUp-CivicLab. If you are in Chicago and need a place to work - consider co-working at the Lab! Please support the work of the CivicLab by making a deductible contribution via our fiscal agent, the Investigative News Network, at http://tinyurl.com/SupportTheLab-INN. Find out more - info@civiclab.us.

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