Title
Discussion – Debt Presentation Follow-up
History
The following is a response to an inquiry from Trustee Healy following the debt presentation at the July 15, 2025, Committee of the Whole meeting.
Tax Increment Financing (TIF) Primer
At the January 16, 2023, Village Board meeting, the Village Board adopted a Resolution urging the Illinois General Assembly and Governor to protect Tax Increment Financing (TIF) in its current form as a valuable economic development tool without additional restrictions on municipal governments and the communities they serve. Since TIF is one of the last significant economic development tools available to address areas of blight, support development and promote local job creation and retention, the then-Village Board supported the Illinois Municipal League’s call to protect TIF as part of its responsibility to promote economic development and revitalization.
In order to establish a TIF district, a local government must find that development or redevelopment of the area would not occur “but for” the creation and use of TIF. Illinois law specifies a number of requirements that must be satisfied for an area to qualify as a TIF district, beginning with identifying the district and the physical and economic deficiencies that need to be cured. Specifically, state law requires that the proposed area must meet one or more of three conditions:
1. Blighted conditions;
2. Conservation conditions; and,
3. Industrial Park conservation conditions.
If one or more of these conditions is identified, municipal officials and a Joint Review Board, made up of representatives from affected local taxing bodies, must review a plan for the redevelopment of the TIF area. A public hearing must be held where residents and other interested parties can express their thoughts on the subject. If the plan for redevelopment is approved by the Joint Review Board, the municipality may adopt the plan by a majority vote of the corporate authorities. If the...
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