What is TIF?
What is Tax Increment Financing (TIF)?Tax Increment Financing (TIF) is a financing tool that is available to all communities in the State of Illinois as well as all communities in all but three states, (Arizona, Delaware and North Carolina) in the United States. TIFs help local governments restore their most run-down areas or jumpstart economically sluggish parts of town. With this tool, financially strapped local governments can make improvements they need, like new roads or sewers, and provide incentives to attract new businesses, without tapping into general funds or raising taxes.
Has the Village used TIF before?The Village of Villa Park has used TIF's in 4 project-specific cases.
- TIF 1 – Target is for the redevelopment of the northeast corner of Ardmore and North Avenue for the attraction and development of the Target store.
- TIF 2 – Ovaltine is for the redevelopment of the Ovaltine property into a $44-million high-end residential project.
Both of these projects are considered successful since the Village gains increased sales tax from the Target store and there has been an influx of new residents with spending power into the Village as a result of the Lincoln Property-Ovaltine project as well as providing a new housing product from which Villa Park residents can choose. Without the help of TIF's which lent financial assistance in both of these cases, it is unlikely that these two projects would have been constructed.
Maps and Plans
North Avenue Redevelopment Project Plan and Project 3.74 MB
North Avenue Redevelopment Project Eastern Boundary Map 474 KB
North Avenue Redevelopment Project Western Boundary Map 503 KB
North Avenue Redevelopment TIF Project
A Public Hearing for the North Avenue Redevelopment TIF project was held November 29, 2006 at 7:00 p.m. at the Community Recreation Building, 320 East Wildwood, Villa Park for the purpose of hearing from any interested persons or affected taxing districts regarding the proposed approval of the Redevelopment Plan and Project, designation of the Redevelopment Project Area and the adoption of tax increment allocation financing.
Background of Project
With the Village of Villa Park being totally landlocked and almost entirely built-out, redevelopment of areas within the Village to a higher and better use is crucial. One of the last areas for commercial redevelopment is the North Avenue Corridor. However, prior to Illinois Department of Transportation reconstruction of North Avenue, the Village of Villa Park was interested to learn if the North Avenue Corridor could remain commercially viable or should the Village encourage other uses for the corridor. A grant application was written by the Community Development Department and was awarded $70,000 in Illinois Tomorrow Grant monies. This grant was to fund a study to determine if it was feasible to expect Villa Park's portion of North Avenue to remain commercially viable after the reconstruction project. If so, the study was then to develop a comprehensive land use and redevelopment policy for this area. A third element of this study was to propose aesthetic enhancements that would improve the character and appearance of the Corridor.
This study was completed and presented to the Board of Trustees in January of 2003.
Some of the findings of this study were as follows:
Commercial use represents the most viable mode of land use and development for the North Avenue Corridor, Other land uses were assessed, such as office and industrial uses, but were found to be not supportable from a market perspective.
Significant market competition exists within the commercial market. Although North Avenue provides good visibility for commercial use, the absence of larger sites for new development has stunted redevelopment. This has allowed other commercial areas to take a more dominant position within the market.
While significant improvement can occur in the short term, broader Corridor revitalization should be thought of a long-term project, probably lasting ten years. If revitalization is to be successful, the Village must drive the program. The Village is the only party with the long-term interest, resources and technical capability to achieve success. The single most important element of a successful implementation program is the adoption of a tax-increment finance district. The district can provide the funding needed to promote redevelopment.