|Click on the following to download and view the redevelopment plan for the proposed TIF 3.|
What is a TIF District?
The Tax Increment Financing program is designed to serve the diverse needs of the business community and to place the Village of Downs in a more competitive position in working with business and industry. This will help them when making the decision to locate or expand within the Village of Downs corporate limits.
As part of our business assistance program, the Village is associated with McLean County Chamber of Commerce, the Illinois Department of Commerce and Community Affairs, USDA and other area development authorities to pool resources and expertise in putting together proposals and funding packages. The Village of Downs stands ready to make available the best development resources available to attract new business and industry and to aid existing business with their expansion plans.
The Village of Downs has two active Tax Increment Financing (TIF) Districts; TIF I (downtown) and TIF II (Downs Crossing). These were established to provide a funding mechanism to promote and enhance redevelopment in the downtown area and new development in the Downs Crossing area. The Village is now looking to expand our TIF Districts to create a 3rd TIF around I-74 and other areas.
A TIF district enables the Village to capture all incremental property taxes (taxes over and above those being generated on the date the TIF is created) and in some instances sales tax and place those in a pool to be used for various allowable development incentives. A TIF district does not raise taxes.
Allowable uses include:
- Land acquisition
- Planning, legal, engineering or architectural services
- Demolition of buildings and clearing of property
- Construction costs of infrastructure improvements
- Rehabilitation of existing structures
- Financing costs
- Payment in lieu of taxes
The Village enters into "redevelopment agreements" with businesses that either locate or make substantial improvements within the TIF districts. Through this agreement, the business agrees to complete the project and make certain improvements.
The amount of the negotiated assistance is determined by various criteria, including:
- The projected increase in the assessed valuation of the property.
- The number of and quality of new jobs created or retained.
- The amount of other revenue generated for the Village by the project.
- Financial strength of the applicant.
- Compatibility to furthering the development and economic goals of the Village.
A business cannot assume the Village will financially participate in the project. Decisions are made on a project-by-project basis and must receive Village Board approval before any assistance is provided.
Consideration for project assistance is to be reviewed for compliance with the following requirements:
Projects falling outside the above set requirements may be reviewed according to adopted TIF plans or other such economic development goals of the Village.
- The business must be a "for profit" business in good financial standing.
- The business must be located within one of the established TIF districts.
- The business must show the financial capacity to complete the proposed project.
- The business must not have financial obligations owed to the Village, McLean County or the State of Illinois