I’m not a big fan of tax increment finance districts (TIFs). I’ve seen them used irresponsibly (Midtown Plaza, for instance), and I’ve seen them divide this community. People are soured on TIFs. However, when used properly, TIFs can be a good thing. Sometimes, some places, you really do need tax incentives or development really won’t happen.

The Southern Gateway — and specifically the Eagle View Biotech Business Park — is one of those places.

The amount of money it would take to rehabilitate this area is enormous ($125,000/acre) and enough to dissuade even the most committed urban developer. Jennifer Davis gives an excellent overview of the city’s plans in today’s Journal Star. You can also read the Request for Council Action (PDF file) on the city’s website.

There’s a rule for determining eligibility for TIF funding. It’s called the “but for” test. According to www.illinois-tif.com, “When considering an area for TIF designation, municipal officials must ask the question ‘Will the same kind of private investment occur here without an incentive?’” I think the answer to that question for the Southern Gateway is definitely “no.”

I couldn’t say that about Midtown Plaza. I think that area could have been redeveloped without a TIF. Whether or not a TIF was needed around the Sears block, it certainly didn’t need to be extended for an unnecessary underground parking deck. It’s because of these and other abuses that Peorians are gun-shy about another TIF. I understand that.

But the Southern Gateway is different. The city isn’t trying to bring in a shopping center or visitor’s center or touristy stuff here — it wants to attract industry. And industry means real, well-paying jobs. Peoria needs to attract more industry, and putting it in this area along the river makes sense. We don’t want to see this industry go to other cities, nor do we want to see it going in a suburban corn field.

TIFs get a bad rap in Peoria, and deservedly so. But this time, I’m for it. It’s for this kind of project that TIF laws were made.