Eight of Chicago’s 163 active Tax Increment Financing (TIF) districts will be dissolved through measures approved today by City Council.

“If a TIF district has already accomplished its neighborhood improvement goals, or if a district has clearly failed to produce intended results, it should be eliminated, plain and simple,” Mayor Emanuel said.

Part of ongoing reforms to the City’s TIF program, the dissolved districts will collectively shift approximately $8.9 million in increment to the various government entities that levy property taxes in Chicago.

Seven of the districts will be voluntarily terminated, including 72nd/Cicero, 73rd/Kedzie, Division/Hooker, Division/North Branch, Eastman/North Branch, Homan/Grand Trunk, and West Grand. 

The 40th/State district will be repealed under state TIF guidelines for having failed to produce an economic development project within seven years of its designation.

None of the districts have pending projects or obligations. The surplus funding is expected to be returned to the districts after annual audits are completed in the spring.

A TIF district is a geographic area designated by City Council in which new property tax growth is allocated to help fund local redevelopment and public improvement projects over a period of 23 years.

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