
Skeptical Morris has finally weighed in on TIF. I do not share Skeptical's defeatist attitude about the use of TIF for the new city hall. The city council is divided on the issue of the new city hall, and it doesn't appear that the mayor has the votes to approve the project in its present form. Two points merit further consideration.
Point Number One:It is true that the city amended the Redevelopment Plan in 1999 to designate funds for the construction of a new city hall - just days before an amendment to the TIF law that would prohibit such a use. However, the amended plan does not give the city
carte blanche to build the city hall. The 1999 amended Redevelopment Plan only earmarked $2.5 million dollars for the project - a far cry from the $14 million or more that is now being estimated, and the nearly $2 million already spent.
This substantial change to the Redevelopment Plan requires consideration by the Joint Review Board, which consists of the members of the affected taxing bodies. There will have to be specific findings that bring the project within one of the limited exceptions to the 1999 ban on the use of TIF money to fund municipal buildings.
If the Joint Review Board dissaproves the change in the redevelopment plan, the city can proceed with the project only on a three-fifths vote of the City Council.
Any TIF funds not expended before the expiration of the TIF term must be returned to the affected taxing bodies. Districts 54 and 101 could recoup millions of dollars diverted from schools to the TIF slush fund.
Point Number Two:The Morris TIF is set to end in 2009. The city has already approached the school districts asking for a twelve year extension.
When Morris adopted the TIF in 1986, it was sold to the city council, the schools and the public as a means to spur development in blighted areas and ultimately generate additional property tax revenue for the taxing bodies.
The city has demonstrated that it cannot be trusted to use TIF money for its intended purpose.
The school districts have the power to end the Morris TIF in 2009. Let's hope that the school boards do not miss this opportunity to address the financial needs of educating our children, while at the same time bringing much needed tax relief the residents of their districts.
City acknowledges TIF hurdles in this
MDH articleBen Joravsky of the Chicago Reader has authored numerous articles on creative TIF abuses in Chicago. Check out the
TIF Archives.Full text of the TIF lawSeneca school districts win TIF abuse lawsuitOak Park school districts demand return of TIF money