Downtown TIF District Meeting Set for This Week
May 31, 2016 04:12PM ● Published by Steven Jack
The village of Oswego will host a TIF District meeting this Thursday at 6 p.m. at Village Hall.
The village will hold an introductory meeting at 6 p.m. Thursday, June 2, at Village Hall that will in part explain TIF Districts under Illinois law, detail next steps and a timetable, and provide a public forum for anyone wishing to address the proposed TIF District.
The village of Oswego is in the midst of creating a TIF District to spur the redevelopment of the downtown (see attached map for entire proposed TIF area). The Village Board last year hired consultant Kane McKenna and Associates to help guide the multi-step process. A final vote to officially establish the district could come as soon as August, officials have said.
In theory, a TIF District encourages redevelopment in blighted or underdeveloped areas by using future property taxes resulting from new construction or capital improvements. Property taxes generated prior to the creation of the TIF district — the base level — continue to be distributed to local taxing bodies at the same amount.
The gradual growth in tax revenue above the base level — the increment — is used for redevelopment as property values rise. TIF funds may repay borrowing done by the municipality to finance redevelopment within the district, or they may finance improvements only as new revenue is generated.
This is not the first time in recent years a TIF District has been proposed for downtown redevelopment. In 2010, developers Harold Oliver and Angelo Kleronomos proposed unsuccessfully to build retail and residential units on the Alexander Lumber land in the downtown.
That plan called for the creation of a downtown TIF District to help fund infrastructure improvements for the $44 million project. With not enough support from the Oswego Village Board the TIF was never created and the proposed development deal collapsed.