Congress/Canal TIF District Extended for 12 Years
The Canal/Congress Tax Increment Financing (TIF) district on the Near West Side will be extended for 12 years under a plan approved by City Council today.
The extension will change the district’s planned expiration date from Dec. 31, 2022, to Dec. 31, 2034, maintaining its successful role as a financing source for improvement projects within an approximately 15-block area generally bounded by the Chicago River and Harrison, Des Plaines and Madison streets.
The extension will primarily support planned Chicago Department of Transportation improvements to the Canal Street viaduct, which is an above-grade roadway that provides access for multiple commuter rail lines entering Union Station. Viaduct improvement costs between Madison and Taylor streets are estimated to exceed $150 million.
The Canal/Congress TIF district was originally designated to support commercial and residential investment, infrastructure upgrades, and open space improvements within its boundaries. To date, it has allocated approximately $70 million toward commercial investment projects at 555 W. Monroe St., 550 W. Adams St., 444 W. Jackson Blvd., 550 W. Jackson Blvd. and 400 S. Jefferson St.; open space improvements at Heritage Green Park at 610 W. Adams.; and infrastructure upgrades at 600 W. Jackson, 434-500 W. Jackson, and 200 S. Canal St. Over the same period, private investments within the district are estimated to have exceeded more than $400 million.
The extension will be subject to the review and approval of the State of Illinois, anticipated this fall. Amendments to the district’s redevelopment plan and land use map, goals and objectives, and budget will follow.
TIF is a financial tool used by municipalities throughout the United States to support investment within designated districts. TIF districts use new property tax growth within their boundaries to help fund improvements identified in their respective redevelopment plans.
The City of Chicago currently has 129 TIF districts citywide. Since late 2019, four districts were terminated, seven districts expired, three received 12-year extensions, and one was designated.