The 40th/State Tax Increment Financing (TIF) district will be dissolved through a measure approved by City Council today.

Designated in March 2004 for a 14-acre portion of the Douglas and Grand Boulevard communities, the district failed to achieve its goals of leveraging new housing and economic development projects. The repeal is part of ongoing reforms to the City’s TIF program, said Mayor Rahm Emanuel.

“If a TIF district isn’t meeting its objectives within a reasonable time frame after its designation, it should be dissolved,” Mayor Emanuel said.

In November, City Council approved measures to voluntarily dissolve eight other TIF districts and shift approximately $8.9 million in increment to the various government entities that levy property taxes in Chicago.

The repeal of 40th/State will not entail the distribution of any increment.

A TIF district is a geographic area in which new property tax growth is allocated over a 23-year period to help fund local redevelopment, public improvements and workforce development projects.

With today’s City Council action, Chicago has 154 active TIF districts.

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