By: Diane Benjamin
I posted how much Normal earned last year from their TIF districts in this story: https://blnnews.com/2022/03/26/hey-unit-5-jackpot-ahead/
A quick primer on TIF districts – Tax Increment Financing:
TIFs are supposed to be used to revitalize blighted areas. An area is designated as a TIF district, money is invested in the TIF which hopefully raises property tax values which is then used to pay back the investment. For 23 years the City gets to keep the increase in property taxes. Investment in the TIF is likely kickbacks to developers who invest in the TIF area.
The Uptown TIF in Normal hasn’t generated enough money to pay off the debt by the time it expires, taxpayers will get the bill instead.
Bloomington has 4 TIFs, the below are the reports just for property taxes diverted to the TIF last year:
The Empire St TIF (mostly the old K-Mart shopping center) generated $443,456.30
The Downtown East Washington TIF generated $387.91. (Mostly old Junior high)
The Downtown Bloomington TIF generated ZERO
The Downtown Bloomington Southwest TIF generated $5,085.58, this is strictly higher assessed values, not investment by the private sector.
The complete details of the TIFs from inception are on the Illinois Comptroller’s website. The reports above are only for last year. The Empire TIF began in 2016, the two others are newer.
This TIF has a positive balance: $200,405. A description of the public and private investment are in the report. Evidently the City promised developers money, the total TIF has a negative balance of $2,163,901.
The Equalized Assessed Valuation decreased – the Fund had a negative balance actual of $204,682. This is mostly the old Junior High School. This TIF has an overall negative balance of $1,503,682, the City pledged $1,300,000 to the developer – see PDF page 10.
This TIF has no investment from the private sector. The City has invested money to improve downtown infrastructure. It has a negative fund balance. $230,718. If the City was hoping investors would jump in to rehab some of the empty downtown buildings (like Front and Center), they are still waiting. The spending so far is maintenance that didn’t need a TIF.
No report was issued for the Bloomington Downtown TIF because it has zero activity.
.
.
.
.
.
.
.
.
So a TIF is like a shell game using walnut halves then? A shell game that the taxpayers will HAVE to play in the future? And under each walnut halve is a massive bill the taxpayers have to pay? I don’t like this game. You shouldn’t like this game either…
Yes, Chicago is much worse than here. (If that helps)