Peoria TIF (Tax Increment Financing)

TIF Is Effective

2010-09-19T09:41:00.001-07:00

Redevelopment assisted by Tax Increment Financing (TIF) is very effective in the City of Peoria. The City created three new TIF's in 2007-2009 and approved twenty redevelopments - some during the "great recession".

Total investment in the buildings is estimated at$336,000,000, creating approximately 1,050 jobs. And there are many more buildings in the works, waiting for better economic conditions.

Completed *

Warehouse TIF
LaVille De Maillet, L.L.C. *
JP Riverfront Development Comp, Inc. (Sullivan) Sealtest
Iron Front, L.L.C., (Huber) 408 Washington
Iron Front, L.L.C., (Huber) 412 Washington
Iron Front, L.L.C., (Huber) 420 Washington
Edgewater Building (Huber) River
Fastenal Company *
Drumheller Properties L.L.C *
D and B Developers, L.L.C. (Waterstreet Solutions) *
B and L Sales *

Southtown TIF
Illinois Medical Clinic *
Long Term Acute Health Care Facility Cullinan *
Cancer Research Center

Hospitality Improvement Zone
Pere Marquette Mariott Courtyard Hotel

Eagleview
Behr Peoria, Inc. *
Martco, LTD (Laser Electric) *
Pulaski Express/Adams Street Supermarket *
JWE Properties/Engler Meier and Justice (Westmont) *

CBD
Caterpillar Visitor Center
Riverfront Museum

http://peoriatif.blogspot.com

http://craighullinger.com

TIF Plays in Peoria

2009-08-21T06:52:00.001-07:00

Southtown Tax Increment Financing District

Tax Increment Financing is controversial. But there is no question that it is an effective way to build tax base and jobs. The Southtown TIF is the oldest TIF in the City of Peoria and one of the oldest in Illinois. The graph and chart show that the value of real estate within the TIF grew much faster then the City and District 150. In 2013, the TIF will be completed, and the tax revenues will go to all the local goverments.

The graph and chart below show how effectively the two new Tax Increment Financing Districts (TIF's) have worked. Despite "The Great Recession of 2007-2009", Equalized Assessed Evaluation (EAV) has grown very rapidly in the TIF's, faster then the City as a whole and faster then School District 150. 150 lags the City because it's boundary misses the rapidly developing north side of the City.

We believe these numbers support the continued use of Tax Increment Financing. We want our older neighborhoods to thrive and improve, and TIF is one of the best ways to help that process.

More Detailed Spread Sheets here

http://groups.google.com/group/tifagreement/files?upload=1

2009-04-24T06:54:00.000-07:00

The City has Ten Tax Increment Financing Districts. These district have created substantial numbers of jobs and additional tax base for the older parts of the City.

The Campustown TIF ends this year, and the taxes will be paid to the local governments.

TIF Districts Map

2008-11-04T12:32:00.001-08:00

Eagle View TIF District Map

2008-11-04T12:16:00.001-08:00

Recent TIF Deals

2008-10-09T07:01:00.001-07:00

Great new Illinois Medical Clinic on Main Street in the Southtown TIF. The plan, and reality in October 2008. But for the TIF incentive, the development would not have taken place in the older area of Peoria. This great development brings jobs and taxes to the Heart of Peoria. The TIF is over in 2013, and all the property taxes in the Southtown TIF will then be paid to the taxing bodies.

Recent TIF Improvements

2008-10-09T06:48:00.000-07:00

Long Term Acute Health Care Facility - Garrett and Hightower in the Southtown TIF

Westmont Builders - Eagle View TIF on Adams Street- Great new Company

Recent TIF Improvements

2008-10-09T06:36:00.000-07:00

Lazer Electric in Eagle View TIF on Adams

Fastenal on Jefferson in Warehouse District TIF

Adams Street Market - Unfortunately they are not all successful. No one ever said
redeveloping older neighborhoods is easy. Or if they did, they were wrong. Looking for another developer for this property.

Behr completed a great improvement on the older Recycling Center in the Eagle View TIF.

Southtown Tax Increment Financing District

2008-08-12T16:17:00.000-07:00

The Southtown Tax Increment Financing District (TIF) is one of the oldest TIF's in the State of Illinois. It was part of massive urban renewal effort the area just south of downtown. The redevelopment was controversial, and took many years, but it did result in substantial new development for Peoria, creating tax base and jobs.

The percentages below illustrate the growth in fair market value, comparing School District 150, the City of Peoria, and the Southtown TIF from 1978 when the TIF was created until 2006, the latest assessment dates.

School District 150- 87%

City of Peoria ____146%

Southtown TIF___477%

In addition, there are two recent developments underway in Southtown - the new Long Term Acute Health Care Center, and the Main Street Medical Clinic. These two large developments will add more value and jobs to the TIF.

The TIF will end in 2013. From that date forward, taxes paid on the new development will go local taxing bodies. The TIF certainly increased the value of the TIF area. Growth in District 150 is lower than the City because substantial amounts of new development that are part of the City are north of the District 150 boundary. This points out the need for District 150 to support redevelopment of older neighborhoods - and the most effective method to incent redevelopment in older neighborhoods is with TIF.

This TIF did create some housing with children. The City used TIF funds to help acquire land and to provide $2,500,000 for the Valeska Hinton School.

TIF Success

2008-03-23T04:47:00.000-07:00

The Photo Below is the TIF incented Medical Clinic under construction on Main Street. But for the TIF incentive, the development would not have been built in downtown Peoria.

Click on the line below to see the success of TIF in Peoria.

TIF SPREADSHEET

http://spreadsheets.google.com/pub?key=pSt1ivzaCLuN4WFfX60coQw

TIF Districts spur revitalization of older neighborhoods, increasing tax base and jobs.

Successful TIF developments include:

401Water Street
Behr (Erlichman)
Caterpillar
CBT
CityScape Apartments
Cranes & Equipment
Drumheller Bag
First Capital Bank
HCH Administration
IL Assn. of Neurosurgery
InPlay
Kirby Risk
Lazer Electric
O’Brien Stadium
O’Brien Steel
Orthopedic Institute
Plattner Orthopedic
PMP
Renal Care Center
Spring Grove Residential
Staybridge Suites
Superior Consolidated
Technicraft
U. of I. College of Medicine
Valley Park Shopping Cntr.
Valeska Hinton School
Westmont Building Supply
WW Grainger

More info on TIF at

http://peoriatif.blogspot.com/

2008-03-23T04:46:00.001-07:00

2008-03-23T04:45:00.000-07:00

Hospitality Improvement Zone

(HIZ) TIF

The cities of Tinley Park, East Peoria, and Normal have developed high quality conference centers and hotels which draw business from Peoria. Springfield’s attractiveness has been greatly enhanced by the Lincoln Museum. These improved competitors all received substantial assistance from government, and will draw business from downtown Peoria.

Our downtown hotels and other hospitality industry business struggle to compete with these quality new developments. The City can choose to compete or not to compete. The proposed Hospitality Improvement Zone would assist existing and new businesses invest, improve, and expand.

City Council has directed staff to present the potential HIZ TIF to our sister governments, and request their input and direction. We also ask our citizens to send us their recommendations. Thank you for your consideration. We appreciate your viewpoint.

Send comments or questions to Craighullinger@gmail.com

309 643 0482

More info at http://www.peoriaed.blogspot.com/

Sample TIF Agreements

2008-03-23T04:40:00.000-07:00

Click here for sample TIF Agreements

http://groups.google.com/group/tifagreement

TIF Map In and Near Downtown

2008-03-16T05:53:00.000-07:00

The City of Peoria has nine Tax Increment Financing Districts. The map above shows 5 of the TIFs in and near downtown Peoria.

TIF is Not a Four Letter Word

2008-03-15T03:00:00.000-07:00

Tax Increment Financing is a controversial method to help redevelop older declining neighborhoods. It can be a very effective method of revitalizing older communities. It is a poorly understood tool, however, and often unfairly critized. TIF is not a 4 letter word.

What is Tax Increment Financing?

The Illinois Tax Increment Financing Association http://www.illinois-tif.com/ provides an excellent explanation of TIF. The law helps cities rebuild and restore their most run-down areas. Governments can make the improvements they need, like new roads or new sewers, and provide incentives to attract businesses or help existing businesses expand, without tapping into general funds or raising taxes.

Without TIF benefits, a deteriorating area will not improve. Businesses do not sink capital into decaying areas and most local governments cannot afford the needed costly improvements without raising taxes. But in a TIF district, dollars for improvements are generated by businesses — new and old — attracted by the TIF benefits. Specifically, money for infrastructure improvements and other incentives comes from the growth in property tax revenues — the tax increment.

Taxing bodies are often confused about the impact of TIF. But they are not harmed by a properly developed TIF. All taxing bodies continue to get the same tax revenue from the original real estate. Newly increased taxes from new development in the TIF are used to help the project. Eventually, when the TIF is complete, all taxing bodies will share in the new revenue.

The City of Peoria has developed 9 TIF Districts. The value of these areas was very low. The TIF helped these areas redevelop, and the value of these areas has gone up on average 23% each year. Nearby areas without the TIF have had little improvement in value. And of course the redeveloped areas created jobs and vitality.

Depending on the rate of taxation, taxes paid by the new development may equal about ½ of the total investment by the developer. The city can provide some or all of that incentive back to the developer to help make the project a reality.

TIF Districts incentivize redevelopers thus spurring revitalization of older neighborhoods and increasing jobs. The City has stimulated substantial new investment through public/private partnerships.

More info at:

Illinois Tax Increment Financing Association http://www.illinois-tif.com/

Warehouse District http://warehousedistrict.blogspot.com/

TIF History

2008-03-13T12:13:00.001-07:00

Tax Increment Financing Districts History

The City of Peoria has developed nine TIF Districts. The TIFs help these areas redevelop, and the value of these areas has gone up each year since the TIFs began. The redeveloped areas create jobs and vitality in the districts.

Southtown TIF

The Southtown TIF was created in November 1978, expires in 2013 and covers 303 acres. It is bounded by Kumpf Boulevard, Main Street, Martin Luther King, Jr. Drive, MacArthur Highway and Jefferson Street. The main objectives are elimination of blight, total clearance and development of residential, office, industrial, institutional and public facilities.

In 2006, the City entered into a contract with Spring Grove Construction Ltd., for Phase III, the final phase, of the Spring Grove residential subdivision. This Phase will consist of construction of 8 new homes with market value of between $130,000 and $250,000. This subdivision was a part of the original plan and was started in 1995.

The UICOMP, Nursing and Public Health (Peoria Campus) is also located in the City’s Southtown TIF and enrolls approximately 50 students. In December of 2005, a group of area doctors signed a 50-year lease with the UICOMP to operate a physician's building on the medical school campus. Approximately 40 doctors will invest more than $15 million for a four- or five-story medical office on more than five acres at the UICOMP. The City assisted the development by allocating $4 million in TIF funds for construction of a parking deck. As part of the plan for continued growth, the new Peoria Cancer Research Center will be constructed adjacent to the UICOMP main campus. The building will have two stories and provide parking for doctors and patients. The new facility will have 20,000 square feet of office and laboratory space with 10,000 square feet on each floor. There will be laboratory and office space for one professor, four associate professors and four assistant professionals as well as space for other research. The new addition to the medical campus will unite patient care, basic science and the research that bridges them. The center will encourage stronger ties among staff in different fields and disciplines by maintaining the college's traditional balance between research and clinical activities. The development of the $12 million Cancer Research Center continues the City’s role as hosting one of Illinois’ major medical complexes.

The City entered into a Purchase Option with Cullinan Medical I for their purchase of a 6 acre City-owned site in the Southtown TIF, which will be utilized for construction of a Long Term Acute Care Center with anticipated private investment of approximately $20 million. This project will bring 100 diverse new jobs to Southtown.

Other businesses and services located in the TIF are Caterpillar, CBT, CityScape Apartments, Cranes & Equipment, First Capital Bank, HCH Administration, IL Assn. of Neurosurgery, Renal Care Center, Spring Grove Residential, Staybridge Suites, Superior Consolidated, Technicraft, U. of I. College of Medicine, Valley Park Shopping Center, Valeska Hinton School, WW Grainger, Orthopedic Institute, Plattner Orthopedic, Kirby Risk and American Red Cross, Great Plains Sports Medicine and Institute of Physical and Medical Rehabilitation.

Midtown TIF

The Midtown Plaza TIF was created in March 1999, expires in 2022 and covers 9.5 acres. It is located on Knoxville Avenue between Nebraska Avenue and Richmond Avenue. The main objectives are elimination of blight and providing commercial business and service facilities.

Utilizing proceeds from tax increment financing bonds, the City and the David Joseph Companies partnered to develop MidTown Plaza. This shopping center, anchored by a 65,000 square foot Cub Food Stores, was completed in 2002. An additional 8,000 square feet of adjoining retail is also part of the MidTown development. The City coordinated the acquisition of 63 separate parcels to complete this $15 million project. It is now open and operational. A new restaurant has opened on one of MidTown’s outlots. Future developments include additional commercial development.

Central Business District TIF

The Central Business District TIF was created in December 1986, expires in 2021 and covers 92 acres. It is located in the Central Business District and Downtown portions of the Riverfront. The main objectives are eliminating blight, revitaling the Downtown/Riverfront and providing parking and public improvements.

Demolition was completed on the former Sears building which will be home to $120 million PRM building and Caterpillar Visitor’s Center. This private investment will be assisted with $3.7 million in public dollars, which have been utilized for property acquisition and infrastructure improvements. An upscale restaurant called the Riverstation opened in the Central Business District. The total project for the River Station was $600,000, with the City providing a loan for $150,000. The City entered into a contract with Randolph and Associates for design of Water Street and infrastructure improvements in conjunction with the Museum block.

Stadium TIF

The Stadium TIF was created in December 2000, expires in 2023 and covers 7.5 acres. It is bounded by Jefferson Street, Oak Street, Adams Street and rear property lines of properties on the southwest side of Oak Street. The main objectives are elimination of blight and development of a stadium.

In the fall of 2000, the City Council approved a development agreement for the construction of a new minor league baseball stadium, to be located in the downtown area of the City, adjacent to the Riverfront and Southtown Redevelopment areas. This private/public project resulted in the construction of a professional minor league stadium providing many of the amenities of a major league stadium. Features include approximately 6,500 permanent seats and approximately 1,000 lawn berm seats, as well as sixteen luxury suites in the upper level, covered concourse with concession stands and restrooms, video board, and a playground area in the left field area. Opening day at O’Brien Field was May 24, 2002.

Northside Riverfront TIF

The Northside Riverfront TIF was created in March 1995, expires in 2018 and covers 105 acres. It is located on I-74 to Spring Street, between Adams and the Illinois River. The main objectives are improve the overall environment and rehabilitate and expand the PMP Fermentation Plant.

This TIF is anchored by PMP Fermentation. This project consists of two plant buildings. Toward the end of 2006 one of their plant buildings closed due to competition within the global market. They are currently reviewing options for use of the empty building.

Campustown TIF

The Campustown TIF was created in December 1986, expires in 2009 and covers 13 acres. It is located on 13 acres beginning at the corner of Main Street and University Street. The main objectives are to eliminate blight and provide commercial and support facilities in close proximity to Bradley University.

Businesses and services located in the TIF are Blockbuster Videos, Bard Optical, Campustown Liquors, Check Into Cash, Supreme Nails, Panda House, Bellacinos, The Hair Gallery Inc., Subway Sandwich Shop, H&R Block, Cookies by Design, Co-op Records, Velvet Freeze, LaBamba Restaurant, Starbucks Coffeehouse and Steak & Fries.

Northside Business Park TIF

The Northside Business Park TIF was created in December 2000, expires in 2023 and covers 214 acres. It is generally bounded by Jefferson Street, Spring Street, the Illinois River and Park Avenue. The main objectives are elimination of blight, expansion of O’Brien Steel, installation of an S-Curve, elimination of Adams Street Row through the Project Area and establishing two-way traffic on Jefferson Street through the Project Area plus establishment of a delineation between industrial and residential uses and provision of commercial/retail opportunities.

In 1999, the City developed the Northside Business Park TIF. O’Brien Steel purchased $1.6 million in processing equipment to expand the processing capabilities. Their shipping area was expanded to Wisconsin during 2006. They continue to hire employees with 175 employees reported at the end of 2007, an increase of 45 jobs over the previous year.

Warehouse District TIF and Eagle View TIF

In June of 2007, the City looked at ways to redevelop the Central and Southern areas of the City and determined that these areas would best be served by creation of two Tax Increment Financing Districts (TIF), the Eagleview and Warehouse District TIFs. These TIFs were approved by the City Council in June of 2007 and have already resulted significant redevelopment with the signing of six new development agreements in the oldest areas of the City.

Warehouse District TIF

The Warehouse District south of downtown and is a mixed area of old industrial lofts, one story industrial buildings, and vacant lots. This area could become a vibrant mixed-use residential and commercial neighborhood. The old industrial lofts could become condominiums similar to the successful development of the buildings on Water Street. The street level space can become viable commercial and retail space. Artists and artisans have already located in this area.

Eagle View TIF

The Eagle View TIF encompasses over 544 acres and is bound by the Illinois River, I-474, Adams Street and is adjacent to a large number of residential units. The plan proposes the Eagle View Biotech Park creating a large high tech industrial park near Darst and Clark north of I-474. The plan also calls for a large conservation area along the Illinois River, the area is known for viewing eagles as well as for fishing and hiking.

2008-03-13T12:13:00.000-07:00

Click on the line below to see the success of TIF in Peoria.

TIF SPREADSHEET

TIF SPREADSHEET http://spreadsheets.google.com/pub?key=pSt1ivzaCLuN4WFfX60coQw

TIF Districts spur revitalization of older neighborhoods,

increasing tax base and jobs. Successful projects include:

Caterpillar
CBT
CityScape Apartments
Cranes & Equipment
Drumheller Bag
First Capital Bank
HCH Administration
IL Assn. of Neurosurgery
InPlay
Kirby Risk
O’Brien Stadium
O’Brien Steel
Orthopedic Institute
Plattner Orthopedic
PMP
Renal Care Center
Spring Grove Residential
Staybridge Suites
Superior Consolidated
Technicraft
U. of I. College of Medicine
Valley Park Shopping Cntr.
Valeska Hinton School
Westmont Supply
WW Grainger
401Water Street

More info on TIF at

http://peoriatif.blogspot.com/

______________________________

Hospitality Improvement Zone

(HIZ) TIF

Send comments or questions to Craighullinger@gmail.com

309 643 0482 More info at http://www.peoriaed.blogspot.com/