UNDERSTANDING TIF LAWS

MUNICIPALITIES (65 ILCS 110/)

Economic Development Project Area Tax Increment Allocation Act of 1995.

From the Illinois Compiled Statutes (Illinois state law): this is the law that allows them to create the TIF district in the first place.

(65 ILCS 5/11-74.6-22 Sec. 11-74.6-22 )

Joint Review Board requirements of considerations

Public Act 094-1055 SB3086 Enrolled

This law was signed by the IL Govenor on July 30, 2006 it gives property owners subject to eminent domain increased financial releif, provides for reimbersment of legal fee and moving expenses to the property owners.

Illinois Tax Increment Association. An organization that promotes TIF financing.

There is a clause in the current definitions called "but for" which guides how many TIF Districts come into being. Basically stated "but for the creation of a TIF district, economic development would not occur."

Retail areas have historically experienced up and downs. Businesses come and go, it's survival of the fittest. Richmond IL is not alone in losing business to slow economic times. Even more popular areas like Galena, Lake Geneva and Long Grove have empty store fronts. Because our "downtown" is so small, it becomes very apparent when economic downswings occur.

In the past couple of years, Richmond IL has seen the downside of business failure due a national trend in a slow economy. The Richmond IL downtown also lost a row of storefronts due to the death of a long time business owner. Other new start-ups came in under capitalized and were not able to financially weather the long start-up time required for a business to grow and succeed.  Existing businesses relied on advertising by the Village of Richmond IL, alone and chose to not invest in their own individual advertising plans.

And let's face it, the Richmond IL downtown is not an easy place to get to on a weekend due to an overloaded and inadequate highway. Customers need to be able to get to a business to purchase products or services. We need to ask where we're at with the bypass project.

Now here is where we see the "but for" clause coming into play. WITHOUT a TIF District, buildings and property have sold and new businesses are starting up. Hunter Country Club was purchased and the new owner approached our village officials with his plans for redeveloping the property and expanding its uses (Jan-2005 article). A full year later a winery is making plans to add to the same property (Jan-2006 Article). We have a new bank! Financial institutions are very careful with expansion and it is a very calculated decision. This has all occurred without a TIF District and prior to talk of a TIF by our village to its constituents.

It would seem we all need to ask our village representatives "Why create a TIF now?" Has there been some closed room agreement made? These new investors in the community of Richmond IL are already successful business people who have working capital. Why is the village of Richmond IL even considering making residents and existing business owners pay for what was in the works? Where is the transparency of what our local government is doing that most currently seated board members based their campaigns on? We have more questions as to what is going on and no answers.