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.
