In an effort to incentivize businesses and spur new development, the Village of River Grove has created three separate “Tax Increment Financing (TIF) Districts” throughout the community. TIF Districts provide the village with the resources to assist businesses to grow and developers to create new businesses and residential properties in areas that are underdeveloped and unproductive. Very often, a new project can only proceed with the financial help of the local governing bodies. A simple example of how TIF works is this:
- An investor/developer wishes to make improvements to a deteriorated section of a TIF District which, when completed, can provide the immediate benefit of creating jobs and, where appropriate, a new stream of sales-tax revenue. A qualified new development will also likely be reassessed at a higher property-tax level, also creating a new revenue stream for the local taxing bodies such as the schools and libraries.
- The developer must demonstrate that the project is not financially feasible without some public financial support. When applying for “TIF Assistance”, the applicant must present the village with all relevant financial data that demonstrates that the amount of TIF money requested is both necessary and is equal to, or less than, the newer, higher property-tax revenues generated by the new development.
Using a hypothetical example, they might do this by demonstrating that the existing, underdeveloped site generates $50,000 in property-taxes each year. Once the County Treasurer collects that $50,000, it is divided up and distributed to the vast array of taxing bodies listed on your property-tax bill including the local village, the public schools, the library, and several county agencies.
The developer would then need to demonstrate that the proposed new, improved development will be taxed at a higher rate for example, $100,000 per year. In this case, the difference between the old tax bill, $50,000, and the new bill, $100,000, equals $50,000. It is this difference in the tax bill that makes up the TAX INCREMENT.
- The developer may (hypothetically) request a TIF subsidy of $250,000. In this case, the tax increment equals $50,000 per year. Therefore, the village knows that the $250,000 can be made up for by the increment in five years. If the village decides that the benefits of the new development far outweigh the deferment of the newly-increased property taxes for a limited number of years, they will vote to enter into a “TIF Incentive Agreement” with the developer that now makes it possible for the new development to move forward.
- It is important to note that the developer is not simply “given” the $250,000. Nor are the village, schools, and other taxing bodies “losing” property-tax revenues. Instead, the developer must pay the increased tax bill of $100,000 each year. The County Treasurer than distributes the original $50,000 that the taxing bodies had been receiving all along. The remaining $50,000, the “increment”, goes into the TIF fund to finance the incentive. Once the incentive is paid for, and the TIF district is eliminated, the taxing bodies now receive a much larger sum of money from the distribution of the entire property-tax revenue generated from the project.
NOTICE OF REQUEST FOR PROPOSALS FOR PURCHASE
AND COMMERCIAL DEVELOPMENT OF PROPERTY AT:
8359 W GRAND AVE RIVER GROVE IL
The Village of River Grove (“the Village”) is soliciting proposals from qualified parties to purchase Village owned property and improve the property with a commercial development. The property is located at the southeast corner of Grand and Thatcher Avenues in River Grove, Illinois, and is commonly known as 8359 West Grand Avenue. The property is presently zoned “C-2 Office and Commercial District” and is included within the “Grand Avenue Village Center Plan,” the “River Grove Transit-Oriented Development (“TOD”) Plan,” and the Grand Thatcher TIF Redevelopment Area. These planning documents are available at the Village website: RFP-60_8359GrandAve Area Map
Interested parties are required to submit a completed Request for Proposal (RFP) package and are encouraged to register with the Village as a Proposer. The RFP Package and Proposer Registration Form may be obtained at the Village website or the Village Office located at 2621 N. Thatcher Avenue, in River Grove, Illinois. Additional information may be obtained from Raymond Bernero, Director of Economic Development, by e-mail: firstname.lastname@example.org or by phone at 708-878-4988. All submittal packages must be received by the Village no later than 4:00 p.m. on Monday, May 23, 2016.
Descriptions and Maps of the Three TIF Districts in River Grove:
Grand/Thatcher TIF District - Map
This District, recreated in 2016, is located along Grand Avenue, going east and west, and Thatcher Avenue, going north and south, in the area of the village Metra train depot. Because property values plummeted in the years following the creation of this district, it had been used only on a few occasions. In addition to aiding several new businesses with façade improvements, TIF funds were utilized to assist an existing, successful restaurant to double in size. This not only created a new sales-tax revenue stream for the village, but it has also resulted in drawing many new visitors to the business district.
Belmont/Thatcher TIF District-
This District encompasses the entire Thatcher Woods Shopping Center located in the northeast section of town. Created in 1997, the funds generated by the TIF District made it possible for a developer to purchase the decaying, neglected and obsolete shopping plaza and essentially rebuild it. An old, vacant department store was demolished to be replaced with a brand new, expanded home for Dominick’s Finer Foods. Today, the center is vibrant and healthy and generates a healthy stream of sales-tax revenue for the village that would likely not been possible without the benefits of Tax Increment Financing of the redevelopment project.
Southwest TIF District-
This district was created in 2011 and is located south and west of Triton College. The area consists of mostly older, industrial-type structures and it is expected that, as the economy improves, some of these areas will be redeveloped into commercial retailers. Again, it is hoped that this will create a new stream of sales-tax revenues which will ease the tax burden on the village’s property owners.