Tax Increment Finance Districts

Tax Increment Financing, or TIF, is a tool state lawmakers gave local governments more than 30 years ago to help them restore areas in decline. With this tool, municipalities can invest in necessary infrastructure, provide financial incentives, and generally make areas ready for redevelopment.  TIF works by establishing a district and calculating the current assessed value (value by which the assessor uses to calculate your tax bill) for the entire area.  All of the taxing districts such as the City, County, School District, and other special districts continue to collect this amount of tax money for the life of the TIF, generally 23 years.  The municipality then begins investment in the district to begin attracting new development and increasing property values.  The tax money generated by these new developments is then captured in a TIF fund for reinvestment back in the district.  These funds must be used within the district which then encourages even more investment and the creation of new tax “increment”.

TIFs help an area in many ways.  The funds can help update failing infrastructure, provide public facilities such as parking decks, create new commercial spaces to attract retail,  and invest in new projects that bring jobs, customers, and in turn higher tax generators that help a local economy. TIF designation also helps retain existing businesses that might otherwise find more attractive options elsewhere. The jobs and additional investment — private and public — mean more money for the community. TIF also helps to overcome the extraordinary costs that often prevent the development and private investment from occurring on environmentally contaminated sites or aging, and often historic, structures that cost more to update than new construction. As a result, the TIF area itself improves and property values go up.

Once a TIF District is created, the City embarks on the creation of programs to accomplish the redevelopment of these areas.  Information about these incentive programs can be found on the City’s Business Portal.

Frequently Asked Questions about TIF Districts

 

  • Enacted December 16, 1986 (Council Bill 1986-313)
  • Extended December 7, 2010 (Council Bill 2010-241)
  • Expires December 16, 2022

The East University Avenue Tax Increment Finance District has helped to create the new district of Midtown by investing in new streetscape and infrastructure, permanent building improvements and programs to attract visitors and businesses to the area.

  • Enacted February 5, 2002 (Council Bill 2002-014,015,016)
  • Expires February 5, 2025

note: Information on proposed Amendment of the North Campustown TIF is located at the bottom of this page

  • Enacted February 4, 2014 (Council Bill 2014-016,017,018)
  • Expires February 4, 2037

  • Enacted January 3, 2017 (Council Bill 2017-002,003,004)
  • Expires January 3, 2040 Bristol Park TIF Plan 2017

  • Enacted January 3, 2017 (Council Bill 2017-005,006,007)
  • Expires January 3, 2040

 TIF Compliance Reporting

State law mandates municipalities that maintain a TIF district must file an annual report with the Illinois Comptroller.  The City of Champaign’s reports can be found on the Illinois Comptroller’s website.

Proposed TIF Districts

The City of Champaign is currently pursuing the creation of a new Garden Hills TIF District and the Amendment of the North Campustown TIF District.  These TIF districts will create the financing tool needed to implement the Garden Hills stormwater and infrastructure projects throughout the district and continue improvements to the Midtown area.  TIF Districts work by diverting any new property tax growth in a specific district into a special fund administered by the City of Champaign for investment back into the district.  The creation of the TIF District does not impact the rate or amount of parcel pays in property taxes.   To learn more, please read these frequently asked  questions:

Frequently Asked Questions about TIF Districts

 

The City of Champaign is currently evaluating the creation of a new Tax Increment Finance District in the Garden Hills neighborhood.  The proposed TIF would encompass approximately 513 acres, including streets, right-of-way, and 1,225 parcels.  The area is generally bounded by Bloomington Road to the north, Mattis Avenue to the west, Bradley Avenue to the south, and North Harris Avenue to the east.

The City of Champaign is currently evaluating the amendment of the North Campustown TIF District.  This proposed amendment would increase the size of the North Campustown TIF to 211 Acres.