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Tax Increment Financing Districts
TIF #1: Designation: March 2002 Expiration: 2034 (Restructured in 2014 into TIF #1 and TIF #2)
Growth in Equalized Assessed Value
Equalized Assessed Valuation (EAV) |
Amount |
---|---|
Base EAV (2002) | $12.6 million |
2021 TIF Update
Village Manager Keller presents overview of the downtown TIF district during virtual board meeting of 2/1/21 outlining past administration's reasoning for establishing the district with concept plans that date back to 1998. With redevelopment stalled during the great recession in 2008, the Village restructured the original TIF in 2014 to ensure that debt payments aligned with the tax increment received. The restructuring lowered interest and reduced annual payments to make make the TIF district self-sustaining, removing pressure from the general fund and Lake Zurich tax payers.
Slide deck presented during the update
If I see it on the Internet ...
... it must be true!
There is has been much chatter about Lake Zurich's TIF districts, development and TIF debt on social media. The information included in posts or comments range from up-to-date facts to pure conjecture and everything in between. Therefore, we are posting this fact check tool of the Lake Zurich TIF Experience as presented by Village Manager Keller in 2021:
Taking a look back
- The downtown TIF was established in 2002, with $30M in debt issued over the next 3 years to fund property acquisition and cover development costs for the downtown concept.
- Some redevelopment projects were successful, namely Concorde Village and a partial development of Somerset homes. Other projects from McCaffrey and ESG/Smith collapsed with the 2008 recession.
- The Route 22 bypass of downtown improved traffic flow, but left downtown Main Street with less visibility and investors focused on heavy traffic areas such as Route 12.
- Holding $30M in debt and several properties, increasing debt payments exceeded the TIF increment in 2014. Restructuring the TIF in the same year to protect the Village's operating funds from covering TIF repayments resulted in TIF #1 and TIF #2. In short, the increment derived from the TIF will be covering the debt payments.
2021 and beyond
- There is light at the end of the tunnel with TIF debt decreasing with $7.83M already repaid in 2020. Future repayment dates are 2024, 2029 and the last repayment in 2034.
- Future revenue and debt repayments are not dependent on a specific new project.
- Several Village owned properties have been sold, returned to the property tax roles and are adding TIF increment.
- TIF investments support private investments and will generate additional TIF increment.