What is a TIF District? A Tax Increment Financing District (TIF) is an area segregated according to State Law in Illinois that has to meet certain criteria to be considered for this special designation. The criterion generally deals with blighted areas that without public assistance might remain in its current condition for an extended period of time. The City of Springfield has used TIF Districts to improve the Downtown area as well as to assist with development in other areas. Not all TIF Districts are successful, but most are if the upfront commitment to the area is strong. Property values in blighted areas do not increase with the simple creation of a TIF district and no other activity. The ultimate benefits to the City and other taxing bodies can be large if the development strategy is sound and the effort for the development of the District is continuing.
One of these TIF Districts in Springfield is the TIF District for the redevelopment of 125 acres which was formally the Fiat-Allis Complex. The project at its inception had approximately 1,200,000 sq. ft. of buildings that had to be removed and a complete new infrastructure installed to allow for development. TIF District dollars paid for much of this removal and redevelopment. The property taxes when the TIF was put in place were approximately $154,000. The TIF District will expire in November of 2012 and based on the current taxes being paid for 2011 in the amount of approximately $1,545,000 the taxing bodies will receive an immediate benefit of $1,391,000. The taxing bodies have continued to receive their share of the $154,000 during this 23 year period, which is the life of the District. A once obsolete industrial zone has been transformed into a desirable commercial area with office buildings and opportunities for retail centers.
Clearly, the Fiat-Allis Complex is an example of the success that a TIF District can have on an area in need of redevelopment. There are still properties available, and if you would like any information on other properties from Coldwell Banker Commercial Devonshire Realty, you can go to http://www.curtistillett.com/propertiesforsale.htmlor call Curtis Tillett at 217-726-3298.