Mattoon - A state official on Tuesday outlined recent changes in the tax increment financing (TIF) law and reviewed the possible benefits of creating a TIF district. About 30 people attended the presentation at the Burgess Osborne Auditorium by Thomas Henderson of the Department of Commerce and Community Affairs.

The group included several Midtown business owners who could be affected if the city develops a Midtown TIF district. Local officials said a likely next step is to establish a committee to review the proposed district boundaries and objectives.

A preliminary outline of the district was presented in April when the City Council approved a resolution for a Midtown TIF district. Once the objectives and boundaries are better defined, the committee could go to the City Council and have a feasibility study completed before seeking final approval.

Henderson said the fundamentals of TIF district haven't changed. In a TIF district, the real estate values are "frozen" at current levels. Taxing bodies continue to get the revenue from the values at the "frozen" level. Any improvements or new structures developed within the district then create an "increment" in the property value. The tax revenue from that increment may go qualified projects, such as infrastructure, facade improvement sidewalk repairs, and, in some cases, a portion of interest costs.

Henderson said new guideline require more reporting on TIF districts and exclude things such a golf courses or natural areas. "I think this makes a more focused approach," Henderson of the changes, explaining that districts now must better define their purpose.

Used with permission from Mid-Illinois Newspapers
Publishers of the Mattoon Journal Gazette and the Charleston Times-Courier

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Mattoon, Illinois 61938
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