December 18, 2019

Plan Will Terminate Four North and South Side TIF Districts

Four Tax Increment Financing (TIF) districts will be terminated on Dec. 31, 2019, under a plan approved today by City Council.

The Pershing/King TIF district in Grand Boulevard will be terminated 12 years before its planned expiration date, having achieved its primary objective of supporting the construction and rehabilitation of affordable housing within its boundaries. The district’s TIF-funded improvements included the construction and rehabilitation of more than 550 housing units at the Bronzeville Family Apartments, Bronzeville Senior Apartments and the Paul G. Stewart Apartments. The 26-acre district was established in 2007. Upon its termination, the district’s $153,545 in unallocated increment will be distributed to the various tax-collecting jurisdictions in Chicago. The City’s share is estimated at $38,386.

The Harlem Industrial TIF district in Clearing will be terminated 12 years before its planned expiration date due to lack of substantial redevelopment activity. Designated in 2007 to promote investment within 151 acres of primarily industrial land, the district provided approximately $525,000 in grants for 10 building rehabilitation projects. Upon its termination, the district’s $51,828 in unallocated increment will be distributed to the various tax-collecting jurisdictions in Chicago. The City’s share is estimated at $12,957.

The Irving Park/Elston TIF district in Irving Park will be terminated 16 years before its planned expiration date due to lack of substantial redevelopment activity. Designated in 2009 to promote investment within 66 acres of primarily commercial land, the district provided approximately $230,000 for a half-dozen building rehabilitation projects. Upon its termination, the district’s $161,904 in unallocated increment will be distributed to the various tax-collecting jurisdictions in Chicago. The City’s share is estimated at $40,476.

The South Works Industrial TIF district in South Chicago will be terminated four years before its planned expiration date due to lack of redevelopment activity. The 240-acre district was established in 1999 to foster the redevelopment of portion of the USX South Works steel mill site, which remains to be developed. Upon its termination, the district’s $585,932 in unallocated increment will be distributed to the various tax-collecting jurisdictions in Chicago. The City’s share is estimated at $146,483.

A TIF district is a defined geographic area in which new property tax growth is allocated over a 23-year period to help fund local improvement projects. With the terminations, Chicago will have 136 active TIF districts on Jan. 1, 2020.

 

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