Local Officials Discuss Whether to Extend Life of Local TIF Districts

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Published on November 30 2018 11:16 am
Last Updated on November 30 2018 11:16 am
Written by Greg Sapp

Representatives of local taxing districts impacted by the Effingham Tax Increment Financing districts met Thursday. One topic was whether to extend the life of two of the four TIF districts in Effingham.

Mayor Jeff Bloemker and other city officials made the case that much of the economic activity seen in Effingham wouldn't have happened without TIF. Director of Public Works Steve Miller said TIF was the difference in making incentives available that led to Sherwin Williams' decision in recent years to stay in Effingham.

The original TIF District #1 has already been extended and will expire in 2021, with the last revenue payable in 2022. The Outer Belt West TIF was established primarily to get that roadway built.

That leaves the Central Area TIF, where City officials say much of the recent economic activity has taken place, and the South Central Industrial TIF. Bloemker said the City considers the other taxing districts partners in economic development efforts and urged them to consider extended the life of those two districts.

There are some hurdles to achieving the extensions; one, the other taxing districts have to agree to the extensions. TIF districts capture a portion of the growth seen in the districts for use on projects in those districts. Those funds could be used by those other districts for their own projects. The argument is that the increase might not have happened without the incentives made available through the TIF district.

The other chief hurdle is that extending the life of TIF districts in Illinois has to be approved by the General Assembly.

During the procedural activities at the annual meetings, our own Dave Ring was reappointed the public member on the TIF #1 and Central Area TIF Boards, while Tim Spitz was reappointed the public member on the Outer Belt West and South Central Industrial TIF Boards.

Russ Sehy of the Effingham Park Board will remain the chairman of the TIF #1 Board with Unit 40 Superintendent Mark Doan as vice-chairman. Lake Land College Trustee Doris Reynolds will remain chairman of the Central Area TIF Board with Douglas Township Trustee Nick Althoff as vice-chairman. Tim Spitz will chair the Outer Belt West and South Central Industrial TIF Boards with Effingham County Board Chairman Jim Niemann as vice-chairman.