Tax Increment Financing (TIF)
TIF is a development tool that allocates future increases in property tax revenue from a designated area to pay for improvements within that area. In Illinois, the TIF district can remain in place for up to 23 years after its creation. A TIF allows future gains in incremental property taxes to subsidize improvements by creating its own revenue stream. With TIF, the property taxes resulting from increased value due to new development are allocated to the City. All properties in the district are assessed in the same manner as all other properties and taxed at the same rate. TIF is not an increase in taxes. Increases in property taxes experienced by property owners are because of reassessment and rate increases, not TIF.
TIF spurs development which otherwise would not be anticipated. With public assistance, the City attracts a private investor to a compelling development project from which the entire City will benefit. The increased equalized assessed valuation (EAV) from the new development goes to the City to pay back the TIF funds. The other jurisdictions continue to receive the base EAV until the TIF period ends. The community and all of the tax bodies benefit from the growth.
Since 1983, the financial assistance of TIF and public-private partnerships have made it possible for the City to strategically revitalize areas, strengthen the local economy, and make Geneva a better place to live. The Geneva Riverfront TIF District, retired in 2005, spurred the development of residential condominiums, a luxury hotel, banquet facilities, retail, office, and restaurant space. Geneva has two active TIF Districts, the East State Street TIF District and the Geneva Fox River TIF District.
Established in 2000, the Redevelopment Project Area (TIF #2) primarily consists of properties facing East State Street from School Street to Longview Drive.
Established in 2016, the Redevelopment Project Area (TIF #3) generally includes parcels facing the east and west shores of the Fox River.
Tax Increment Financing has unlocked the value of these Geneva sites and overcome barriers to redevelopment.