Title
Intergovernmental Agreement Concerning an Amendment to the Main Street Triangle TIF District
History
During the Joint Review Board Meetings held as part of the process to amend the Main Street Triangle TIF District Plan and Project, School Districts 135 and 230 expressed concern about the effect of the amended TIF District upon the finances of the school districts, as well as other taxing bodies. Prior to the final vote of the Joint Review Board approving the amendment, the Village agreed to enter into an Intergovernmental Agreement that would address the Districts’ concerns.
Attached is the Intergovernmental Agreement in its substantial form, subject to final legal review. The major terms of the IGA are as follows:
§ The total and uses of the project costs to be financed by bonds and/or incremental revenues shall not exceed those specified in the Amended Plan and Project Budget ($54.5M).
§ The Village guarantees a distribution of surplus incremental revenues in an amount not less than $818,383 over the remaining life of the TIF District. The Village will utilize sales taxes, in an amount not to exceed $818,383, to fund this distribution should incremental revenues not be available.
§ Incremental revenues received from the Main Street Triangle TIF District, as amended shall not be transferred or loaned to any other TIF District or any other Village fund.
§ The Village agrees to make annual payments to the school districts for the educational operational cost of the students enrolled in that district and residing in the TIF District in an amount equal to the per pupil cost of that district in accordance with statutory requirements.
§ The Village will not further amend the Plan or extend the TIF District to include additional properties.
Financial Impact
Future incremental revenues - payment of the guaranteed surplus distribution will be an additional expense of the TIF Fund and may affect the Village’s ability to completely recoup its investment ...
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