Lake Cook Road TIF District
TIF District Eligibility Study and Redevelopment Plan and Project Report (March 2020)
- To help spur private development in the Lake Cook Corridor and help implement the Lake Cook Corridor Market Study and Plan , the Village established a Tax Increment Financing (TIF) District on July 20, 2020.
- A TIF is a commonly used economic development tool, which helps municipalities make needed improvements (roads and sewers) or helps attract private development.
- TIF generates a pool of money used for reinvestment within the TIF area. When a TIF district is created, the property values of the parcels within the district are set at a base equalized assessed value (EAV). Taxing bodies (Village, county, township, school districts, etc) continue to collect property taxes based upon the base EAV. Any increase in the EAV generates the TIF increment, which is then available for projects within the TIF district.
- TIF is not a new tax. Property owners within the district continue to pay their normal property taxes. At the end of the TIF district's 23-year life, all real estate tax revenues are again shared proportionately by the taxing bodies based on their individual tax rates.
- Read more with this Resource Guide to TIF.
This report describes how the study area meets the required eligibility factors and outlines a comprehensive program to revitalize the area.
See the report below.
The TIF study area is generally bounded on the west by Arlington Heights Road, on the south by Lake Cook Road, on the east by McHenry Road (IL Route 83) and on the north by Checker Drive. The area includes most of the properties that were evaluated as part of the 2018 Lake Cook Corridor Study including the key properties such as Town Center, Chase Plaza and the Grove Shopping Center. Certain areas have been excluded from the study area based upon the fieldwork which has shown that those areas would likely not qualify for the TIF District.
Tax Incremental Financing (TIF) is an economic development tool that helps municipalities to make needed improvements, like new roads and sewers, or provide incentives to attract private development and new businesses. TIF helps to overcome the extraordinary costs that often prevent development and private investment from occurring, including the remediation of environmentally contaminated properties, investing in new infrastructure, and assembling small properties into a single larger parcel for redevelopment.
Upon the creation of a TIF District, the property values for all of the parcels within the district are set at a base of equalized assessed value (EAV).
As development and reinvestment occurs and the property values increase, the EAV of the district increases as well. The increment, which is the difference between the base EAV and the total EAV is collected into a special fund that the City can then invest back into the district under specific rules.
Taxing bodies such as the Village, county, township, school districts, and other entities continue to collect property taxes based upon the base EAV throughout the life of the TIF. At the end of the TIF district's 23-year life (or sooner if the district can be closed out early), property taxes will be distributed to taxing districts based on their individual tax rates utilizing the current equalized assessed value of the properties in the district.
TIF helps to overcome the extraordinary costs that often prevent development and private investment from occurring, including addressing flooding and environmental issues, investing in new infrastructure, and assembling properties into a single larger parcel for redevelopment.
The Lake Cook Road Corridor has been showing signs of decline in property value, inadequate facilities, deterioration and an overall lack of investment. Following the adoption of the 2018 Lake Cook Corridor Plan
, many developers have shown interest in certain parcels/sites within the Corridor but continue to be lose interest due to the high economic barriers for reinvestment.
As a result, the Village is looking to establish a long-term strategy to spur development activity as some key sites are ripe for redevelopment. Having a TIF available could provide the Village with a necessary economic tool to facilitate a public or private development project that is consistent with the Community’s vision. The TIF could fill any potential financial “gap” that may exist as part of a development proposal.
Tax increment financing is not a new tax. Property owners within the district continue to pay their normal property taxes throughout the life of the TIF at the same rate (by taxing district). The incremental tax revenue generated within the TIF district is reinvested back into the area in which it was collected. In this way, the TIF district stimulates the investment in property that generates the revenue the TIF district uses to incentivize reinvestment and development. At the end of the TIF district's 23-year life (or sooner if the district can be closed out early), all real estate tax revenues are again shared proportionately by the taxing bodies based on their individual tax rates.
TIFs in our Neighboring Communities:
TIFS Across Illinois:
- Wheeling: 5 TIF Districts, including Wheeling Town Center
- Vernon Hills: 2 TIF Districts, including Mellody Farm & Town Center
- Long Grove: 1 TIF District, Downtown Long Grove & Sunset Grove Shopping Center
- Arlington Heights: 3 TIF Districts
- Palatine: 5 TIF Districts
In addition to these communities, TIFs are found throughout Illinois. TIFs are found throughout Illinois. According to the Illinois State Comptroller, there are more than 500 municipalities in the State of Illinois that utilize TIF Districts to attract private investment and rebuild infrastructure . These communities range in population from 138 people 2.8 million people. A complete list of Illinois communities with TIFs is available on the Illinois Comptroller's website.