PUBLIC HEARING

1
Route 31 TIFAmendment
Village of North Aurora, Illinois

• PUBLIC HEARING
• June 30, 2009

2
Agenda

• Introduction
• What is TIF?
• Route 31 TIF Amendment
• Existing District and Proposed Amendment
• Eligibility Criteria
• Future Land Use
• EAV and Proposed Budget
• Questions and Comments

3
What is Tax Increment Financing?
Tax Increment Financing (TIF) is a technique
which utilizes future tax revenues to stimulate
new private investment in redevelopment areas.

• Not a tax!
• Redistribution of tax revenues to be used in the
  community
• Tool to leverage public investment

4
Things to Remember

• TIF does not create any additional tax to any
  property owner
• TIF does not freeze any property owners taxes
• Any jurisdiction can modify its levy each year
  within the bounds of tax caps
• All taxing jurisdictions ultimately benefit by an
  increased tax base

5
TIF Funding

• TIF funds can be used for project costs that
  benefit the district, including
• Utilities Road Improvements
• Environmental Clean-Up
• Façade Improvements / Rehabilitation Assistance
• Property Assembly
• Not Direct Funding of Private Construction Costs

6
Proposed TIF Area

• Grey Original TIF District Boundary (existing)
• Purple 1st Amendment Area Boundary (existing)
• Red 2nd Amendment Area boundary (proposed)

7
Eligibility Requirements

• Conservation Area TIF
• At least 50 of existing structures must be
  greater than 35 years old
• Project Area must exhibit a minimum of 3 out of
  13 eligibility criteria
• Amendment Area must met the criteria independent
  of existing project area

8
Conclusions of Eligibility Study
Conservation Area Qualifications
50 of structures over 35 years of age and
evidence and distribution of the following
factors

1. Deterioration of buildings and surface
   improvements
2. Inadequate utilities
3. Lack of Community Planning
4. Relative Decline in EAV

9
TIF Goal

• Promote development and revitalization along
  Route 31 corridor through public-private
  partnership
• Improve communities tax base
• Enhance appearance of area
• Fund needed capital improvements

10
Property Value Impact
Orig. TIF EAV 12,171,621
1st Amendment EAV 1,956,703
Proposed 2nd Amendment 6,983,448
Total 21,111,772
Estimated EAV after Redevelopment 71,796,522
11
Future Land Use
Red - Commercial Light Blue Office Blue
Institutional Brown Medium Density
Residential Yellow Low Density
Residential Purple Mixed Use Green Open
Space Grey Highway Property
12
RedevelopmentSites
Sites within the TIF District that are targeted
for possible redevelopment as outlined in the
plan.
13
Proposed TIF Budget
Existing 12,800,000
14
Route 31 TIF Facts

• Original Route 31 TIF created in 2002, and
  expanded in 2005
• Amendment does not extend the life of the TIF
  which is set to expire in 2025 (23 years from
  inception)
• Intent remains to operate as a pay-as-you-go TIF
  but bonds still permitted

15
Tentative Timeline
Establish Public Hearing Date Ap. 13th, 2009
Conduct Joint Review Board May 13th, 2009
Provide Notice (newspaper, direct mailing) 5/25 6/12, 2009
Public Hearing June 30th, 2009
Adoption 7/20/09 9/28/09
Official Action is NOT taken at the Public
Hearing. Adoption by the Village Board can
occur only during the timeframe shown.
16
Route 31 TIFAmendment

• Questions
• and
• Public Input