Yorkville officials have approved the next step in creating a new TIF (tax increment financing) district for the city’s downtown.
Aldermen unanimously passed an ordinance Tuesday, March 27, that removed some properties from the current downtown TIF district. The City Council is expected to vote on the new TIF district at its next meeting, scheduled for 7 p.m. April 10 at City Hall, 800 Game Farm Road.
The City Council held a formal public hearing on the new TIF at its March 13 meeting.
The city is creating a new TIF district and redevelopment area downtown, taking some properties out of the original TIF district approved in 2006 and adding them to the new TIF, and extending the original TIF beyond its 23-year time frame.
Under a TIF district, property taxes generated by new growth in the designated area are placed in a separate fund controlled by the city. The city can then use the funds to pay for capital improvements within the TIF district.
A TIF district eligibility report drafted by City Senior Planner Jason Engberg in 2017 states that the city approved the downtown TIF shortly before the economic downturn and housing bubble burst. As a result, property values stagnated and the original downtown TIF did not build enough incremental revenue in its fund.
“Due to the timing of its establishment and the economic recession which followed, the existing Downtown Redevelopment Project Area has not reached its potential in terms of development and increment generation,” Engberg wrote. “Overall, equalized assessed values (EAVs) in the existing area have dropped and over the course of the past decade and those values are the primary factor in generating TIF increment revenues. “