Simply put, a percentage of property tax money in designated areas called "TIF Districts" is put in a separate budget set aside for economic development: housing, job training, corporates subsidies, infrastructure, schools, public safety or anything else that city officials determine will jump start economic development.
The city benefits from the improvements in that the economic development project increases property values, and that translates into a greater tax base for the city. "About 500 million dollars has gone into the TIF program in the last 4 years". The TIF budget is a separate budget and is not included in the city's annual budget of about $6 billion (NYT).
TIF districts were designed to stimulate development in "blighted" areas. Unfortunately, many TIF dollars have gone to wealthy downtown/lakefront neighborhoods in non-public decisions made by city bureaucrats and aldermen.
One example of questionable TIF dollars use that I am aware of has to do with a project Loyola University, Lakeshore Campus proposed and received over a million dollars in TIF funds for: renovating one of their older buildings, on campus, after it was designated to have historical significance. Loyola University is far from "blighted", and many local community residents wondered why a rich private school was receiving money earmarked for a "blighted" community economic development project. There needs to be reform legislation drawn up to clarify how TIFS should work.
The 41st Ward is not a TIF district.
In the mayoral race, TIF reform is an important campaign issue. Should the TIF program be thrown out, redesigned or halted and the current money placed in the current annual budget? In the future, should the TIF budget be placed in the regular budget and voted on by the city council, in public? Should we use TIF funds to hire more police? Should a percentage be set aside for CPS, small business development, job training, throughout the entire city etc... There are many questions about how TIFs should be structured, and TIF dollars designated for appropriate projects.
How many of our aldermanic candidates are TIF savy? I think we need to ask them what they think about the TIF program.
If the TIF program did not exist, those tax dollars would be in the general annual city budget and would go to CPD, CPS, and other city departments/programs for use throughout the city.
the 41st ward candidates need to understand both community and larger city issues. I went to the first forum and was really disappointed to listen to such limited answers. Only the city planner could address issues from both perspectives, the rest of them couldn't
ReplyDeleteGlory Hallelujah!!! You see the light.
ReplyDeleteLet's hope a majority of voters in the 41st Ward do the same before election day AND then follow through on the 22nd.
TIF's have been and will continue to be an intregal part of Chicago's redevelopement landscape. The concept needs to be understood and goverened for the best interests of Chicago's voters and tax payers.
Please no political hacks in City Hall from the 41st. And, certainly not a candidate who is beholding to and then 'owned' by special interests. Be they any elected 'state' office holders of the major parties, unions or 'big' business.
Our next Alderman needs to be up on the intricate workings of the TIF program to say nothing about the rest of the agenda before the City Council.
Say no to TIF's. The public's money gets hidden in TIF funds. The program is also abused by large corporate interests. Target and Home Depot do not need to save on property taxes as well as then share a percentage of sales taxes. Mom and Pops are losing out due to the fancy accounting of TIF's. Stop the corporate takeover of main street.
ReplyDeleteThis would be a good question for candidate Murphey. He alluded to TIF funding twice in the recent forum, in a way which seemed to me favorable. Does he propose creating a TIF which includes part of the 41st? Which part of our ward is blighted? Where would he put the lower-income housing that is supposed to be financed by 10% of the money set aside? Does he support the current method of managing this money, and if not, does he think the new mayor (be it Emmanuel, Chico, Mosely-Braun or whoever) is going to allow a change?
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