Yorkville City Council would like to extend life of tax increment financing district
Yorkville is looking to extend the life of the downtown tax increment financing district to spur development in the city’s center.
In a tax increment financing district, property taxes in the area are frozen and any incremental increases in tax money due to an increase in property values is used to reinvest in public infrastructure improvements to encourage private development.
At a recent meeting, Yorkville officials agreed to approach other taxies bodies for letters of support to extend the life of the downtown tax district.
City Administrator Bart Olson said the district is a powerful incentive to those looking to develop projects downtown.
“Without a TIF that has a reasonable term left, it’s just not something a developer would pursue,” he said.
The existing downtown tax district will expire in 2029. State law mandates a maximum life of a TIF district at 23 years, however a 12-year extension can be granted by the state.
Olson noted the current district was approved in 2006.
"We set that in place to get the downtown going," he said.
However, the downturn in the economy in 2008 hindered development, he said. He said it wasn't until 2012 that matters started to improve.
"In the four years since, there really hasn't been much proposed," he said, noting how the city wants to use the village of Oswego's downtown area as a model.