Tax Increment Financing in Oak Park

Tax-increment financing (TIF) is a development tool established under state law for local governments to promote economic growth within underperforming areas of a community. The properties within these designated areas in are established as TIF Districts by the local government following a public hearing process. Once established, each tax parcel’s equalized assessed valuation – or EAV – is tracked as a frozen baseline.

Over the course of the next 23 years, taxes on the parcels continue to be assessed like any other parcel in the community subject to property tax. However, property taxes are segregated with the amount paid and the dollars attributed to the frozen baseline distributed proportionately to all taxing bodies, such as county, city, township, schools, parks and libraries.

Any taxes paid and attributed to increases in EAV that occur after the TIF was established are paid into a Village government fund unique to the TIF district. Village government may only spend these fund dollars within the original TIF district during its 23-year duration. In addition to these geographical restrictions, TIF dollars also may be spent on limited activities such as Village infrastructure, land purchases, environmental remediation and urban revitalization projects.

The Village of Oak Park last two active TIF districts - Madison Street Business Corridor and Downtown Oak Park (Greater Mall Area) - expired on Dec. 31, 2019. A third TIF - Harlem-Garfield Avenue - was terminated effective Dec. 31, 2017.

Downtown Oak Park Greater Mall Area TIF

The Downtown Oak Park Tax Increment Financing (DTOP TIF) District was established in 1983 with the intent of revitalizing the downtown business district. Revenues are generated by incremental property taxes calculated by taking the overall property rate multiplied by the incremental equalized assessed valuation (EAV) above and beyond the frozen or base EAV when the TIF was first adopted. The intent is to use this increment for economic development projects, enhancing the tax base to develop above what development would have occurred otherwise. This fund is subject to the 2011 TIF settlement agreement.

The 2011 TIF settlement agreement was amended in 2013 and 2016 to provide for the capture of increments for public infrastructure costs associated with the proposed development of Colt-Westgate properties generally located east of Harlem Avenue between Lake Street and North Boulevard.

Madison Street TIF

The Madison Street TIF was adopted by the Village Board in 1995 to create a funding mechanism for public improvements, land acquisition, site preparation, rehabilitation of existing buildings, administration and professional services.

TIF funds have been used to support a range of projects on along Madison Street, including the administrative building for Elementary School District 97.

Harlem/Garfield TIF (ended Dec. 31, 2017)

The Harlem/Garfield Tax Increment Financing District was created in 1993 to remediate the site for a retail redevelopment project. The primary use of TIF funds was to support activities related to the move the of Volvo auto dealership from Madison Street to the corner of Harlem Avenue and Garfield Street in 2003. The Harlem/Garfield TIF was terminated effective Dec. 31, 2017.

TIF Historical Reports

For more information

For more information on tax-increment financing in Oak Park call 708.358.5640 or email village@oak-park.us. TIF annual reports also are posted on this website - just click here.

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Tax Increment Financing in Oak Park

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