Twelve-Year Extension Proposed for Congress/Canal TIF District
The Canal/Congress Tax Increment Financing (TIF) district on the Near West Side would be extended for 12 years under a proposal introduced to City Council today by Mayor Lori E. Lightfoot.
The extension would change the district’s planned expiration date from Dec. 31, 2022, to the end of 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 proposed extension would 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 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 would 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 would 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.