The Illinois Policy Institute, a non-profit think tank, has issued a new report calling for reform of the Tax Increment Financing process. It’s called Tax Increment Financing: Hidden in Plain Sight. The article uses examples from Chicago almost exclusively, but the information is applicable throughout Illinois. The Institute says more transparency is needed in establishing TIF districts, and the State needs to adopt a stricter definition of what constitutes “blight.”
That last part is certainly true, not only because of the impact it would have on TIFs, but also Enterprise Zone status. In Peoria, the most abused economic development tool is the Enterprise Zone; it’s supposed to be applied to “blighted” areas, but take a look at the Enterprise Zone map (available from the City’s website here) and notice how much of the zone is applied to far north Peoria, even north of Route 6. The Enterprise Zone was even used as an incentive for annexation at one point. I would suggest that it’s not just a stricter definition of “blight” that’s needed, but stricter enforcement.
The report quotes liberally from a 2006 study by the Lincoln Institute of Land Policy which found that “non-TIF areas of municipalities that use TIF grow no more rapidly, and perhaps more slowly, than similar municipalities that do not use TIF.” This is significant because it means, in addition to other taxing bodies losing out on new tax money received within TIFs, they also suffer slower growth in the areas outside of TIFs.
There is currently a new TIF being developed in the East Bluff.
I really see no reason for Enterprise Zones to be located north of War Drive. And what rationalize is used for the definition? I suspect Main Street and much of South Peoria show up on the Federal HUB (Historically Underutilized Business) Map and are legit areas for Enterprise Zones, but including Pioneer Park and Glen Hollow shopping center is silly. Peoria’s use of economic development tools as “developer hand-outs” has not benefitted the City. Time for some change.
This is true all over Illinois Conrad. Almost all Illinois cities have expanded Ent Zones past their intended use. The battle for economic development is furious and cities are using every trick up their sleeve to win this battle.
Peoria is not alone in this.
Awhhhhh TIF it!
District 150 Observer — It’s poor public policy regardless of how many cities are doing it. If everyone else jumps off a bridge, does that mean Peoria has to jump off a bridge, too?
I agree it is poor public policy and I passed no judgment in my post. My post just indicated it was common practice–not something singular to Peoria. Many here think Peoria is the only city doing some of the goofy things we see—-but they are not.
That is also why I posted the Evansville and Ft Wayne links–to show that other cities are publically assisting downtown convention center hotels. I think that is interesting.
Acording to the East Village web page “Consultant presents Study to City Council: November 9, 2010” No changes to that date found, so I guess it is a go.
No public meetings set up yet, not a word unless it will be like the last one with a 1-2 day notice..
Blght, yes in parts of the East Bluff, But OSF and MMC property? OSF fronting the $$$ known about the “loop holes” in the TIF regs.Guess we will be jumping off another bridge soon.
Cj- yes