Title
Resolution Providing for the Disposition of the Special Tax Allocation Fund of the Main Street TIF District
History
This resolution provides for the final financial steps associated with the dissolution of the Main Street Tax Increment Finance (MST TIF) District. Originally established in 2004 and amended in 2007 and again in 2024, the MST TIF is being dissolved following the establishment of the Downtown Orland Park TIF (DOP TIF), which now includes previously removed portions of the MST TIF.
Over the years, the MST TIF’s Special Tax Allocation Fund (STAF) did not generate sufficient revenue to meet its debt obligations. The Village subsidized these obligations by borrowing from the General Fund. That debt was subsequently forgiven by Village during the acceptance of the 2022 Annual Comprehensive Financial Report.
Following the forgiveness and due to the timing of real estate tax collections in Illinois, the MST TIF STAF has accumulated a positive balance and may continue to receive funds even after its official dissolution. Under Illinois law, funds may be transferred between contiguous TIF districts.
The resolution directs that all current and future funds collected for the MST TIF (after satisfying any remaining obligations) be deposited into the Special Tax Allocation Fund of the Downtown Orland Park TIF. This ensures continued use of the funds in alignment with the Village’s development goals.
Recommended Action/Motion
I move to adopt a Resolution entitled: THE VILLAGE OF ORLAND PARK, ILLINOIS RESOLUTION PROVIDING FOR THE DISPOSITION OF THE SPECIAL TAX ALLOCATION FUND OF THE MAIN STREET TAX INCREMENT FINANCE DISTRICT.