The Village of Mahomet will host a public meeting on November 7 at 7 p.m. at the Village Administration Building to allow constituents to learn more about a proposed commercial redevelopment project that will impact 74 or more inhabited residential units and commercial businesses along Main Street in downtown Mahomet.
On September 25, the Village Board of Trustees authorized and directed a feasibility study to be prepared on the designation of the Redevelopment Project Area as a redevelopment study under the Tax Increment Finance, or TIF, Act.
Illinois law specifies a number of requirements that must be met to qualify for Tax Increment Financing, beginning with identifying the project area and the physical and economic deficiencies that require attention. The municipality must also demonstrate that these conditions will not be addressed without local action.
Along with meeting these requirements, the municipality must also prepare a plan laying out the actions that the municipality intends to take to improve the area, and a budget for the TIF district that includes the total TIF-eligible costs.
Municipal officials and a Joint Review Board, made up of representatives from local taxing bodies, must review the plan for the redevelopment of the TIF area, allowing the various taxing bodies to provide their input and opinion on the matter to the municipal authorities.
A Redevelopment Plan includes:
- Documentations as to how the area satisfies the “but for” requirement.
- A description of the boundaries of the area recommended for redevelopment.
- A discussion of why the area needs redevelopment.
- The redevelopment goals and objectives for the area.
- An explanation of how land in the TIF district will be used.
- A budget for the life of the TIF, including the total TIF eligible costs.
- An evaluation of the fiscal and programmatic impact on the overlapping taxing bodies.
- A description of the process to amend the plan.
- A statement of conformance with the municipality’s comprehensive plan.
- A timetable for redevelopment of the area
Following this, a public hearing must be held so that residents and other interested parties can express their thoughts on the subject.
Once these steps are completed, the proposal to establish the TIF district and engage in Tax Increment Financing must pass through the same process as any other ordinance proposed by the municipality, receiving approval by the municipal legislative body.
The designation of a TIF district is not a new taxing district nor does it always mean that property taxes will automatically go up in the TIF area. Upon TIF designation, the County Clerk establishes the Estimated Assessed Value (EAV) of all taxable property.
From that date and for the next 23 years, all increases to the established base EAV are deposited into a separate fund administered by the municipality to pay for qualified TIF redevelopment projects.
A TIF district assignment allows a municipality to reallocate funds from property taxes to encourage investment within the district. Often times, this can mean TIF funds are used to help new businesses relocate or assist current businesses with expansion plans.
Within the letter to residents within the proposed TIF district, the Village states, “The purposes of the redevelopment plan and project are to eradicate blighting and/or conservation area conditions; to alleviate conditions that may become blighted that are detrimental to the public safety, health, morals or welfare; to retain and create employment opportunities; to improve and add to the inventory of residential units; to make public investments that will encourage private investment to restore and enhance the tax base of taxing districts within the Redevelopment Project Area; to provide private incentives such as interest subsidies, to acquire construct (which includes repair, remodeling and rehabilitation) and install public facilities and improvements; and to encourage private development of residential, business, commercial and industrial improvements and facilities.”
The Village notified occupants, taxpayers and TIF interested parties within 750 feet of the proposed redevelopment project of the public mid-October. The letter states that of the 74 residential properties that could be affected by the TIF redistricting, 10 or more inhabited residential units could be expected to “require the removal.”
The Village of Mahomet identified the area from IL-150 south to South Mahomet Road just west of Barber Park to Barber Road as a TIF District in 2000. The development of a downtown TIF district will establish a second TIF district within Village limits.