Mayor Lori Lightfoot Vows 'New Level Of Transparency' In Awarding TIF Funding To Developers
by Todd Feurer, CBS Chicago web producer
CHICAGO (CBS) -- Mayor Lori Lightfoot is making extensive changes to the approval process for awarding tax increment financing (TIF) subsidies to development projects, promising a more transparent approach and stricter rules on when the funding can be used.
"For too long, the City's TIF spending decisions have occurred in the shadows," the mayor said in a statement. "With our reforms, we are bringing a new level of transparency to the way the City spends precious taxpayer dollars, while holding private recipients of TIF dollars accountable to higher standards during the review and approval process."
Often criticized as a slush fund for elected officials, the city's TIF program provides hundreds of millions of dollars in property tax revenue to projects in designated districts across the city.
In 2018, the city's 138 TIF districts generated nearly $841 million in total TIF revenue, an $180 million increase over 2017, according to the Cook County Clerk's office.
TIF districts freeze the amount of money that goes to schools, parks, and other taxing bodies for 23 years. Any increase in tax revenue generated by the district over those 23 years is funneled into a TIF fund that can be used for redevelopment projects in that area.
State law requires TIF funds to go only to "blighted" areas, but critics have said the city often ignores that standard.
Lightfoot's office said it will adopt a more rigorous "but-for" test for any application for TIF funds, to make sure the money only goes to projects that wouldn't move forward without them.
The mayor also is creating a new TIF Investment Committee tasked with focusing on assuring "equity" in distribution of the taxpayer subsidies, and developing a "routine analysis" to guide investments going forward.
The city also will publish a new TIF program guide to help taxpayers and developers understand how the program works, and to release monthly reports on TIF spending decisions.
"Residents deserve to know that their money is being used well," said deputy mayor Samir Mayekar, who will chair the TIF Investment Committee.
