TIF Tool Kit sheds light on how to benefit from TIF dollars

TIF Tool Kit sheds light on how to benefit from TIF dollars

By Safiyyah Muhammad

Carolina Gaete and Cecile Caroll De Mello, co-directors of the TIF Tool Kit are spreading the word on how communities across the city can benefit from the Tax Increment Program (TIF) program in their Blocks Together initiative.

According to a press release, the Blocks Together initiative is designed to help residents across the city understand how their TIF dollars can be used to bring about economic and community development in their neighborhoods. The program also informs residents and civic leaders on how TIF assists with affordable housing, and acquiring microloans for small businesses.

Valarie Leonard, a community development professional, expressed appreciation of Gaete’s and De Mello Blocks Together initiative.

"I am very glad that Blocks Together is sharing lessons learned with community practitioners around the city of Chicago. Their advocacy is making it possible for TIFs to be accessed by the very people whose taxes are being used to finance them.”

According to the Cook County Clerk's website, a TIF is a special tool that a city such as Chicago can use to generate money for economic development in a specific geographic area. The site also stated that TIFs allow a city to re-invest all new property tax dollars in the neighborhood from which they came for a 23-year period.

According to the City of Chicago's website, TIF funds are used to build and repair roads and infrastructure, clean polluted land and put vacant properties back to productive use, usually in conjunction with private development projects.

The site also states that funds are generated by growth in the Equalized Assessed Valuation (EAV) of properties within a designated district over a 23- year period.

Leonard's knowledge about TIFs dates back as early as the 90s. She participated in the Redevelopment Study for the Ogden & Pulaski TIF located in the North Lawndale Redevelopment effort that took place on the city’s west side in 2007.

Although TIF dollars are originally used to revitalize poor and blighted areas, Leonard said TIF dollars that are supposed to help resurrect poor communities are often channeled to other business entities.

“These TIFs (areas) are primarily in African-American, and Latino neighborhoods. Studies show that Blacks are disproportionately impacted by TIFs," she stated.

Community residents can gather more information about the TIF program by visiting their local Aldermanic offices or by going to the City of Chicago TIF website at www.cityofchicago.org/city/en/depts/dcd/supp_info/tax_increment_financingprogram.html.

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