Friday, May 14, 2010

TIF's In Chicago, This Process Sounds Familiar

Taken from Progress Illinois' article.

This maneuver, in which revenue captured in one TIF district is transferred to projects in an adjacent district, is known as "porting." It's not illegal by any means, but it provides ample opportunities for abuse.

Link to the entire article at Progress Illinois


While the wording in Columbia Crossing talked of a "pass through" which I have never received a clear answer or explanation on. Chicago's planned idea of sharing revenue between TIF districts is possible. I do not have a map of Columbia's current districts and have not gone back to see how far Columbia Crossing reached to the East I would have to imagine this idea could maybe be used.

The issue then, is it a good idea? In the case of Chicago not really. The claims that the mayor's office is using the power of distributing the revenues between TIF districts to gain votes on certain items is a troubling enough. Let alone when a district has valid needs and uses for the TIF revenue in its own district only to see it funneled somewhere else.

In Columbia's case if a development were to happen in the bottoms (which I am not sure is the best location) and a TIF district be used (which I am not sure is really the best financing measure) and the new TIF district "touched" the current TIF district that includes at least the middle school it seems possible Columbia could take a page out of the Daley playbook (which I would not advise doing)and have at it. But it seems completly possible, maybe.

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