2. Chicago/Main TIF
TIF will give City ability to:
1. Invest in necessary infrastructure in Main/Chicago neighborhood;
2. Participate in public/private partnerships; and
3. Encourage transit-oriented development and improvements.
3.
4. Plan for Implementation
• Guide for implementation of the
Chicago/Main TIF District
• Four Major Areas of New Investment
– Transit-Oriented Development
– Public Infrastructure
– Open Space; and
– Private Development.
• Neighborhood Meeting for January 2013
5. 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 and Private Structures;
Taxing District Capital Improvements
$5,500,000
Public Facilities (Incl. 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. Overview
I. Background on Proposed TIF District/Plan
for Chicago/Main Corridor
II.Factors Qualifying Area as a TIF District
III.Key Elements of TIF Plan
8. • The Chicago/Main TIF Area
– One of the City’s oldest and important commercial/mixed use areas;
situated outside of the downtown district
– Relatively dense land use, with multiple land uses
• industrial, residential, commercial, and transportation-related uses
– Area may be at an “inflection point” whereby it either continues to
stagnate or it rebounds
• Strategic Importance
– Important space for southern Evanston residents
– Chicago/Main is a commercial and transportation center that for
decades has provided shopping options for nearby residents (including
multi-family dwellings) and commuters
– Based on location and transportation assets, has potential for success
and renewal
I. Background
9. The TIF Plan complies with key legal provisions of the
TIF Act, including but not limited to:
– TIF Plan conforms to the City’s Comprehensive Plan
– Area consists of contiguous parcels – exceeds 1 ½ acres
– “But-for” requirement is met - Redevelopment is feasible
only with the utilization of tax increment financing
• As documented in the TIF Qualification Report (Appendix V of the
TIF Plan)
I. Background
11. • City has considered alternative economic
development tools, with only limited success
• The City has considered, in succession:
– Ad-hoc use of financial tools other than TIF
– “Corridor studies”
– Now considering TIF
I. Background
12. I. Background
Review of TIF Financing
TIF involves splitting property tax revenue generated from
properties within the TIF District into two components or
“buckets”:
Bucket for Base Revenues – For All Local
Governments
Bucket for Incremental Revenues – For
Redevelopment within TIF
13. $0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
1 2 3 4 5 6 7 8 9 10
Year
AssessedValue(AV)
Year Base AV Total AV
I. Background
Review of TIF Financing
- Ideally, a successful TIF produces positive incremental revenue over
time
14. TIF Performance Adjusted for Project-Related Risks
0
20
40
60
80
100
120
140
160
180
200
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Base EAV Total EAV - Adjusted for Market Factors
Delay in
Project
Absorption
Reduction in
Growth
I. Background
Review of TIF Financing
- In practice, a successful TIF faces certain challenges in seeking to generate positive increment
ASSESSEDVALUE
YEAR
15. • The proposed TIF District is found to qualify under
the following criteria:
– Improved property - As a “conservation area”, based
upon the findings that:
• A combination of 3 or more of the 13 factors set forth in the TIF
Act are present in the area
AND
• A majority of structures (83%) are 35 years or older
II. Qualification Factors
16. Improved Property – Conservation Area Findings Underlined
8. Inadequate Utilities
9. Excessive Land Coverage
10. Deleterious Layout
11. Environmental Clean-up
12. Lack of Community
Planning
13. Lagging EAV
II. Qualification Factors
1. Dilapidation
2. Obsolescence
3. Deterioration
4. Presence of
Structures Below
Code
5. Illegal Uses
6. Excessive Vacancies
7. Lack of Ventilation and
Sanitary Facilities
24. Improved Property – Conservation Area Findings Underlined
8. Inadequate Utilities
9. Excessive Land Coverage
10. Deleterious Layout
11. Environmental Clean-up
12. Lack of Community
Planning
13. Lagging EAV
II. Qualification Factors
1. Dilapidation
2. Obsolescence
3. Deterioration
4. Presence of
Structures Below
Code
5. Illegal Uses
6. Excessive Vacancies
7. Lack of Ventilation and
Sanitary Facilities
25. • Base EAV: $11.49 million (2011 EAV)
• Projected EAV: Upon completion of redevelopment and
“re-tenanting,” approximately $30,000,000 to
$35,000,000
• Proposed TIF Budget: $25,000,000 (see next slide)
– The TIF Budget is:
• A maximum amount which does not obligate the City to expend
such amounts
• Sized to accommodate potential development requirements
• 23 year budget, not annual budget
• Proposed Land Uses: Retail, commercial, institutional,
and residential uses
• Key “But-For” Finding
– Redevelopment will not go forward without the TIF assistance
III. Key Elements of TIF Plan
26. • A TIF Plan…..
– IS
• A general framework for economic development
• Authorizes but does not require expenditures in certain
broad categories
– IS NOT
• A detailed “blueprint” or strategy document (the 2000
Corridor Study and Economic Development Strategy
Document fulfills that role)
• A document mandating expenditures
– City Council would have to authorize funding of specific
economic development activities under separate ordinances
III. Key Elements of TIF Plan
27. 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 and Private Structures;
Taxing District Capital Improvements
$5,500,000
Public Facilities (Incl. 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
28. • Budget Guidelines
– Overall budget cannot be exceeded
– Line-items in budget are flexible
– Covers 23 years; hence difficult to estimate with precision
– Budget expenditures subject to:
• City approvals
• Determination of appropriateness of costs
• Special TIF audit
• Review by JRB annually
III. Key Elements of TIF Plan
29. Next Steps
• Introduction and Adoption of TIF ordinances: within
14-90 days after the Public Hearing
– Subject to additional review/approval by City Council
– Two open meetings with opportunity for additional public
comment
Notas del editor
Why use TIF here?
The strongest tool available and requires by statute reinvestment into the community/district
City in partnership with Bonnie Management could use the funds to attract tenants at a quality perhaps just above what otherwise the center would afford and to improve the public infrastructure / right of way in the district.