City of Chicago Tax Increment Financing

New legislation passed by the State of Illinois will allow the City of Chicago to designate special taxing districts and direct property tax revenues into infra- structure projects. It is hoped that tax-increment financing (TIF) will give the city enough funds to obtain matching federal funds for a host of trans- portation improvements, including the $2.1-billion modernization of the Red and Purple lines, an exten- sion of Red Line south of 95th Street, and upgrades at Union Station. The TIF legislation will continue to give 54% of increased revenues to schools, while 37% would go to transit projects, and 13% to libraries, parks, and other services. The legislation also gives the Mayor and City Council discretion to create dis- tricts for rail projects within a half-mile on each side of 46 miles of “L” tracks, and within a half-mile of the center of the Union Station building. Illinois Governor Bruce Rauner has indicated he will sign the bill.


About Bill Reinhardt

Editor of Public Works Financing newsletter
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