Spending TIF funds to construct municipal buildings generating no new tax revenue is contrary to the purpose and intent of the TIF law.
In 1999, the Illinois legislature enacted an amendment to the TIF law to end this abusive practice.
Section 11‑74.4‑3 (q)(4) of the TIF law says that:
... on and after November 1, 1999, redevelopment project costs shall not include the cost of constructing a new municipal public building principally used to provide offices, storage space, or conference facilities or vehicle storage, maintenance, or repair for administrative, public safety, or public works personnel....
There are some limited exceptions which would permit a municipal building to be built with TIF funds, such as when it is part of a redevelopment plan adopted before 1999, or when it is replacing a municipal building that must be demolished as part of the redevelopment plan.
The exceptions do not seem to apply with the City's current plans.
Full text of the TIF law
Transcript of debate on the 1999 Amendment to the TIF law in the Illinois House of Representatives.
The discussion on TIF starts at page 239, including definitions for "blight."
Discussion about spending TIF money for municipal buildings starts at page 249. Read as the sponsoring legislators call this practice an "abuse" of TIF.
Morris Daily Herald Article published September 5, 2007