Tax Increment Financing
Tax Increment Financing (TIF) has been a big success in Niles. TIFs are used to renovate properties that have become obsolete and rundown. By renovating these properties, new value is brought to the tax base and new taxes are available for schools, parks, and other tax districts.
By using new tax money from redevelopment, the TIF improvements do not divert any existing tax funds from schools, parks, or libraries. The TIF program has, in fact, helped to maintain tax revenues by freezing assessed values that were spiraling downward.
The village has used TIF in five areas:
- Village Crossing
- Niles College
- Leaning Tower
- Pointe Plaza
The shopping center at Village Crossing was so successful, its original 23 year term was shortened to eight. After the TIF was dissolved, the renovated property generated new taxes for the schools, $431,000 more, an increase of 350%.
The Niles College property has been transformed into one of the finest condo communities in the northwest suburbs. As Niles College, the property taxes were zero, since it was a tax-exempt use. After the TIF is dissolved, the new condos will generate similar new taxes for our schools, parks, and libraries.
Lawrencewood is home to the new Civic Center Plaza with a new Administration Building, Senior Center, and Fitness Center for the community. All without increasing the property taxes of our residents.
The Leaning Tower TIF took an abandoned manufacturing facility and brought two first-class retailers to the site, Target and Costco. The new money from this site also allowed the rehabilitation of the Niles Leaning Tower, one of our most famous landmarks. This TIF began in 1993, and was dissolved in May 2005. Due to TIF-supported redevelopment, the EAV of this site went from $3,337,000 to $16,695,000, a 400% increase.
The Pointe Plaza TIF also took a vacant manufacturing site and new retail growth was facilitated. New stores include Walmart, Fresh Farms, Ross Dress for Less, and Walgreens. This TIF began in 1997, and was dissolved in March 2005. The EAV on this site went from $15,926,000 to $50,067,000, a 214% increase in eight years.
TIF is a redevelopment tool. During TIF redevelopment, schools, parks, and other districts continue to receive the same funds that they had collected before TIF. The residential tax bill has never been increased due to TIF activity. When used properly, older sections of town are revitalized with new businesses and new residents, creating new resources for all of Niles.
For more information about TIF's, please review the TIF association website.