Adkissons TIF money

By:  Diane Benjamin

See this post:  https://blnnews.com/2016/07/19/downs-the-audio/

The applicable part of the audio from the July 7th Board meeting is still over an hour.  I would need to cut it into 5 parts to put it on YouTube.  I’ve looked into other ways of posting it, but I haven’t found anything better.  The Village Clerk can put it on a disk for anybody interested.

I received the following Freedom of Information Act request.  Since the TIF reports haven’t been filed as required, I had to FOIA it:

TifadFor those not familiar with TIF (Tax Increment Financing):

TIF money is generated by the increase in property taxes due to investments in the TIF area.  All other taxing bodies do not benefit from increasing property values during the life of the TIF which is normally 23 years.  In this case, Tri-Valley schools weren’t penalized because the TIF was structured to protect them.  Usually government borrows money or uses savings to provide loans or grants to property owners for improvements so TIF money can be generated.

Note:  California has banned TIF’s because of abuse.  Chicago TIF’s are being investigated for creating government slush funds benefiting the politically connected.

The audio has Kenny Adkisson talking about his increase in property taxes because of the improvements to the building.  He is paying a lot more than before receiving the TIF money:

BEFORE:   http://mcleanil.devnetwedge.com/view/RE/29-04-252-010/2015

taxadAFTER:

taxad2Depending on how quickly taxes rise in the future, it will take at least 20 years for the TIF money to be repaid through property taxes.  The TIF will keep the difference between $2,268.04 (2015 taxes) and $446.98 (2014 taxes):  $1821.06.  Part of that is earmarked for Tri-Valley schools.

Meanwhile, if the building is sold, the value will be much higher than the purchase price – thus netting Adkissons a nice profit.

I wonder if the TIF grant made any provision for recovering part of the profit in case of sale?

.

.

.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

. .

wordpress stats plugin
%d bloggers like this: