the tifs of the 24th ward
TRANSCRIPT
November 11, 2015Tom Tresser
The 7 TIFsOf the 24th Ward
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2nd Ward
20th Ward
33rd Ward
This is our 45th
forum since
Feb 2013!
21stWard
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Key Policy Questions
1. Under what circumstances do we give public $ to private business?
2. Who plans what for whom? AKA, What defines “community development”?
3. Is Chicago broke?
4. Who’s watching our back? Need for new leaders.
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What are TIFs?
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What are TIFs?
• Created by municipality (state law)• Designed to subsidize some business
project in “blighted” or under-served area
• Captures “incremental” property taxes ABOVE base when district was created
• Only for hard costs• Lasts 23 years• Supposed to be spent where
collectedProperty taxes!
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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).
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Money From TIFs Taken From?
The “Base”
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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
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TIFs Used to support commercial projects in these “Blighted” Areas
40 S. Halsted
Apple Store
$842 million
in Loop $7 million
$8.5 million
10Better Government Association
?
?
?
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Budget Approved
45-15
(Includes Ald. Smith
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Where are TIFs?
2014Chicago = 147 Suburbs = 286
Cook County = 433
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ChicagoTIFs HAVE RUN AMOK!147 active Tifs
in 2014!$426 million in 2014!
$7 Billion since 1986!!
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THE CITY HAD
$1.44 BILLION IN UNSPENT TIF FUNDS
AT THE END OF 2014!
$16 BILLION TO DATE!
To sum up:
TIFs = property taxes Increment $ collected by TIF Run by city (mayor) Lasts 23 years Blight & “But for” conditions Hard costs Supposed to be spent where
collected
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What are TIFs?
The Local Picture
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TIFs of the 24th WardThe next set of slides shows the details of the seven TIFs of the 24th ward.
• How much we estimate they took FROM the ward in 2014• How much left over in those accounts FROM the ward at
the end of 2014• What projects funded by TIFs IN the ward• The proposed changes to the Midwest TIF
You get purchase the full deck from our TIF Data Store for $5 by clicking over to http://www.tifreports.com/store.
Our work is popular, useful and powerful but is NOT being supported by foundations who SAY they support civic engagement, innovations in journalism or government accountability efforts. It’s up to YOU to keep us going.
TIF CONTROVERSY
188 W. Randolph Street – Randolph Tower
Apartments
230 N. Michigan Avenue –
Hard Rock Hotel555 W. Monroe Street –
PepsiCo
$54,000,000$5,000,000
$11,000,000 TIF $ in the 42nd Ward
123 S. Dearborn Street – Dearborn Center
32 W. Randolph Street –Oriental Theater
1 N. Dearborn Street - Sears
$10,500,000
$10,000,000 $18,400,000
TIF $ in the 42nd Ward
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TIF $ in the 4TH Ward
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$11 million in TIF funds for the Pullman Park development in the 9th Ward
TIF FUNDS IN THE 46th WARD
$26,000,000?Lincoln
Park
Coming to the 10th Ward
$5,000,000?
Where are Parks MOST Needed?
$29,000,000?
TIF Funds in the 3rd Ward
$55,000,000?
UPDATE - $55 MILLION TIF FUNDING SHIFTED FROM
DePAUL STADIUM TOMARRIOTT HOTEL .
PIER AUTHORITY TO PUT UP $100 MILLION FOR STADIUM PROJECT.
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$12.8 billion revenues in 2013
$55,000,000!
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The biggest problem with TIFs
TIFs hoard taxes in prosperous communities – starve poor communities.
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We want our $1.4 Billion!
http://tinyurl.com/Empty-All-TIFs
4,200+
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We are researching legal challenges to the TIF Program in Chicago (and across Illinois). If you would like to be part of a possible legal challenge, let us know.
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Take Home
DVD with 2 TIF training videos + 2 bonus tracks
$10 cash or $13 credit card
Nifty TIF Illumination poster
