Proposed Springfield & Mattis TIF District

The City of Champaign is planning to create a new Tax Increment Finance (TIF) District. The goal for the TIF District is to reverse the current blighting conditions in the shopping districts along Springfield and Mattis Avenue and to invest in infrastructure and development projects that transform this central portion of our community. A map of the proposed TIF District can be reviewed below. The Planning and Development Department manages the City's economic development programs, including TIF Districts.

FREQUENTLY ASKED QUESTIONS

What is Tax Increment Financing?

Tax Increment Financing (TIF) is a tool provided by state lawmakers to help local governments revitalize declining areas and stimulate economic growth in sluggish parts of town. It allows local governments to make necessary improvements, such as new roads or sewers, and provide incentives for enhancing existing buildings, attracting new businesses, and supporting the expansion of current businesses without using general funds or raising taxes. All TIF funds generated within a particular district must be reinvested back into that district.

What is a Tax Increment?

A tax increment is the difference between the property tax revenue generated before the TIF district designation and the amount generated after its designation. Establishing a TIF does not reduce property tax revenues available to overlapping taxing districts. Property taxes collected on properties included in the TIF at the time of its designation continue to be distributed to school districts, counties, community colleges, and other taxing districts as if the TIF did not exist. Only property taxes generated by the incremental increase in the value of these properties after the TIF's establishment are collected and reinvested back into the district. By the end of the TIF District's term, the area should have seen significant reinvestment, resulting in greater property tax generation for all taxing districts.

What significant redevelopment costs are eligible for TIF funding?

TIF funds may only be used for specific types of investment activities. Qualifying expenses include:

• Property acquisition
• Rehabilitation or renovation of existing public or private buildings
• Construction of public works or improvements
• Job retraining programs
• Relocation
• Financing costs, including interest assistance
• Studies, surveys, and plans
• Professional services such as architectural, engineering, legal, property marketing, and financial planning
• Demolition and site preparation

How long does a TIF District last?

TIF Districts are typically approved for 23 years. They can be extended an additional 12 years with the approval of the Illinois General Assembly, Governor, and City Council. Transforming a TIF Redevelopment Area is a long-term project that requires years of planning and investment by the City. It can also take years to generate enough TIF revenue in the district to invest significantly in the area.

How can my property benefit from a TIF District?

As redevelopment activity begins and TIF revenues grow, the City Council may start budgeting money for specific redevelopment programs that can aid property owners in improving their properties. The Council may also invest in infrastructure improvements that enhance the overall area. TIF Districts enable the City to prioritize the redevelopment of an area by dedicating specific TIF funds to that area.