TIF Program

Tax Increment Financing (TIF) helps municipal governments stimulate redevelopment in a designated area. Using this financing tool, the City can reimburse developers for certain expenses using the property tax revenue that new development in the TIF district generates. Expenses eligible for reimbursement include

  • Architectural, engineering, legal, environmental, financial, planning, and other services
  • Property assembly costs, including acquisition of land, demolition of buildings and site preparation
  • Costs of rehabilitation, reconstruction or repair or remodeling of existing buildings, fixtures and leasehold improvements
  • Cost of financing during construction
  • A portion of the interest cost incurred by a developer related to the construction, renovation or rehabilitation of a redevelopment project


There are three TIF Districts in Carbondale. Following are (pdf) reports detailing information in each of these three districts.

TIF #1:

Redevelopment Plan TIF #1 
TIF Fact Sheet

The map below shows the boundary of the 31-acre Redevelopment Project Area Number 1.  TIF Boundary Map

TIF #2:

Feasibility Study TIF #2
Eligibility Report TIF #2
Housing Impact Study TIF #2
Redevelopment Plan TIF #2 
TIF #2 Fact Sheet

The map below shows the boundary of the Redevelopment Project Area Number 2. TIF #2 Boundary Map.

TIF #3

Elgibility Report TIF #3
Redevelopment Plan TIF #3 
TIF #3 Fact Sheet

The map below shows the boundary of the Redevelopment Project Area Number 3. TIF #3 Boundary Map.

Please contact the City of Carbondale for detailed information.

Steven Mitchell, Economic Development Director
200 South Illinois Avenue, PO Box 2047
Carbondale, Illinois 62902-2047
phone 618-549-5302 ext. 286
e-mail: steven.mitchell@explorecarbondale.com
 

How does the City of Carbondale Tax Increment Finance (TIF) program work?

When a tax increment financing (TIF) district is established, the equalized assessed value (EAV) on each property within the TIF district is set at a “base” value.

For 23 years after the TIF district is established, property tax revenue generated by higher property values within the district is paid to the city’s special TIF fund, instead of the other taxing bodies. Those taxing bodies (the county, park district, school districts, etc.) continue to get the tax revenue from the “base EAV” in the district, but not the revenue created by property values above the base.

The City of Carbondale currently offers incentives for redevelopment in the TIF district by reimbursing developers for expenses through an annual rebate on property tax. The rebates are reimbursement for eligible project costs, and they are tied directly to the property tax increment created on the site of their new development. In several cases, the City has pledged to developers 75 percent of the property tax on the new improvements they create. This arrangement continues until the point at which the developer has been paid the agreed upon reimbursement.

Example for a hypothetical property in the TIF district:

2002 (base year)
EAV: $45,000 Tax Paid: $3,825

2006 (following a major redevelopment project)
EAV: $ 300,000 Tax Paid: $25,500

After the project is complete in 2006, a property tax increment of $21,675, the difference between $25,500 and $3,825, goes into the City’s special TIF fund.

In this case the developer has a Redevelopment Agreement with the City Council stating that the City will pay the developer 75 percent of the property tax increment each year, up to the point that the City has paid $275,000, which was the developer’s cost to buy the land. Assuming that the property’s new assessed value and the overall property tax rate stay the same, it will take 17 years for the City to complete payment of the reimbursement.

The City would use its 25 percent share of the increment to pay for other improvements in the TIF district.

View the TIF Fact Sheet.


 

 
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