City Council today approved a plan to terminate two South Side and one North Side Tax Increment Financing (TIF) districts. . Part of Mayor Rahm Emanuel's ongoing efforts to reform the city’s TIF program, the terminations will take effect on December 31, 2016.
The 69th/Ashland TIF district in West Englewood will be terminated 12 years before its planned expiration date because it successfully accomplished its purpose of fostering the commercial redevelopment of blighted land along Ashland Avenue between 69th and 71st streets. TIF-funded improvements resulted in two economic development projects on the site of a former Chicago Transit Authority bus barn: a 62,000-square-foot full service grocery store and a 32,000-square-foot, three-building professional and retail center. Established in 2004, the 18-acre district has an unallocated balance of approximately $180,000 with no pending projects or financial obligations. Upon its termination, all unallocated increment will be distributed to the various taxing jurisdictions that receive tax revenues from district properties. The City of Chicago’s share is estimated at $40,600.
The Addison Corridor North TIF district in Avondale will be terminated four years before its planned expiration date due to lack of redevelopment activity. Designated in 1997 to help facilitate the redevelopment of 79 acres of land along the Chicago River between Belmont Avenue and Addison Street for modern industrial uses, the district has no pending projects or financial obligations. Upon its termination, an unallocated balance of approximately $2.9 million will be proportionally redistributed to the various taxing bodies that receive tax revenues from district properties. The City of Chicago's share is projected at $655,000.
The Calumet River TIF in Hegewisch will be terminated 18 years before its planned expiration date due to lack of redevelopment activity. Designated in 2010 for 535 acres of land along the Calumet River between 130th and 138th streets, the district did not achieve its goal of fostering marina-, retail-, and recreation-oriented development projects. The termination of the Calumet River TIF will not involve the distribution of any increment.
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