1st Amendment Howard/HartreyTax Increment Financing (TIF) District

City of EvanstonPublic Hearing

October 28, 2013

Howard/Hartrey History

• Established in 1992• Addressed redevelopment of industrial

property and created an opportunity for commercial redevelopment

• TIF was established under “blighted” classification

2

Why Geographic Expansion of TIF?

• Redevelopment of 222 Hartrey Avenue• Improve area infrastructure (sidewalks, roads,

alley, parking areas)• Expiration in 2015

Public Approval ProcessDate Activity Completed?Mon., Aug. 12 Introduction/Action of Ordinance to City Council to

Adopt Public Hearing Concerning Creation of Howard/Hartrey TIF District

Wed., Aug. 14 Notice of Public Hearings sent by certified mail to affected taxing bodies, IDCEO, and any interested parties

Wed., Aug. 21 Notices of Existing & Amended TIF District sent to residential addresses within 750’ of proposed TIF boundary

Thurs., Sept. 12 Joint Review Board Meeting at 3:00p at LHM Civic Center Rm. 2200

Mon., Oct. 28 City Council holds the Public Hearing for the Proposed Howard/Hartrey TIF District Amendment

*TONIGHT*

Mon., Nov. 11 City may introduce and adopt ordinance to amend the Howard/Hartrey TIF District

Proposed TIF BudgetProgram/Improvements Estimated Costs

Land Acquisition/Assembly Including Demolition & Site Prep

$11,000,000

Construction of Public Facilities and Buildings, Rehabilitation of Existing Buildings

$3,500,000

Environmental Remediation $1,500,000

Utility Improvements $1,500,000

Construction and Reconfiguration of Parking Rights-of-Way and Street Improvements/Construction

$1,000,000

Interest Costs Pursuant to the Act $200,000

Planning, Legal, Engineering, and other Professional Costs $200,000

Relocation $200,000

Job Training $200,000

Payments Pursuant to Intergovernmental Agreements $200,000

Total $19,500,000

1st Amendment Howard/Hartrey Tax Increment Financing (TIF) District

City of EvanstonOctober 28, 2013

Qualifications Overview

I. BackgroundII. Factors Qualifying Amendment Area

The TIF Plan complies with key legal provisions of the TIF Act, including but not limited to:– TIF Plan conforms to the City’s Comprehensive Plan– Area consists of contiguous parcels – exceeds 1 ½ acres– “But-for” requirement is met - Redevelopment is feasible

only with the utilization of tax increment financing

I. Background

I. Background

I. Background

Review of TIF FinancingTIF involves splitting property tax revenue generated from properties within the TIF District into two components or “buckets”:

Bucket for Base Revenues – For All Local Governments

Bucket for Incremental Revenues – For Redevelopment within TIF

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

1 2 3 4 5 6 7 8 9 10

Year

As

se

ss

ed

Va

lue

(A

V)

Year Base AV Total AV

I. BackgroundReview of TIF Financing- Ideally, a successful TIF produces positive incremental revenue over

time

TIF Performance Adjusted for Project-Related Risks

0

20

40

60

80

100

120

140

160

180

200

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Base EAV Total EAV - Adjusted for Market Factors

Delay in Project Absorption

Reduction in Growth

I. BackgroundReview of TIF Financing- In practice, a successful TIF faces certain challenges in seeking to generate positive increment

ASS

ESS

ED

VA

LU

E

YEAR

• The TIF District was found to qualify under the following criteria:– Age – Obsolescence– Excessive Vacancies– Lack of Ventilation, Light or Sanitary Facilities– Inadequate Utilities– Deleterious Land Use/Lay-Out– Lack of Community Planning

II. Qualification Factors - THEN

Improved Property – Conservation Area Findings Underlined

8. Inadequate Utilities

9. Excessive Land Coverage

10.Deleterious Layout

11.Environmental Clean-up

12.Lack of Community Planning

13.Lagging EAV

II. Qualification Factors - AMENDMENT

1. Dilapidation

2. Obsolescence

3. Deterioration

4. Presence of Structures Below Code

5. Illegal Uses

6. Excessive Vacancies

7. Lack of Ventilation and Sanitary Facilities

Next Steps

• Introduction and Adoption of TIF ordinances: within 14-90 days after the Public Hearing – Subject to additional review/approval by City Council– Two open meetings with opportunity for additional public

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