How is a TIF district created?

Illinois law specifies the requirements that must be satisfied for an area to qualify as a TIF district, beginning with identifying the district and the physical and economic deficiencies that need to be cured.

Prior to establishment of a TIF, an area is studied and a redevelopment plan created to demonstrate why an area needs intervention.

Municipal officials and a joint review board made up of representatives from local taxing bodies must review a plan for the redevelopment of the TIF area. A public hearing is held and a recommendation is forwarded to the Committee of the Whole and the City Council. If approved, the Mayor will sign the ordinance into law.

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1. What is a Tax Increment Financing District?
2. What is a "tax increment"?
3. Does TIF result in increased tax rates?
4. What is the “but for” test?
5. How is a TIF district created?
6. What costs are eligible for TIF funding?
7. Who monitors the TIF process?
8. How long is the area designated as a TIF district?
9. Does TIF divert money from schools?
10. What happened during Geneva’s previous TIF district?