Tuesday, August 12, 2008

Southtown Tax Increment Financing District

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.