TIF Districts

TIF districts last 23 years.  During the life of a TIF, the base year of tax revenues are distributed to the various taxing bodies with the increment in tax revenues distributed to the TIF fund. Once the TIF expires, then the full property taxes paid by each property owner in the TIF are distributed to the various taxing bodies. With a successful TIF, the taxing districts will receive a windfall in tax revenues, particularly the elementary and high schools districts – which have the highest tax rates.

The Village of Arlington Heights has utilized Tax Increment Financing (TIF) to redevelop five specific areas beginning in 1983 with TIF 1 in the southern portion of downtown. The three existing TIF districts comprise only 1.0% of the Village's land area. Status reports on the current and past TIF districts in the Village are shown below...

TIF 1 & TIF 2 | Southern & Northern Portions of Downtown
TIF 1 was established in 1983 and expired in 2006 and comprised the southern portion of downtown. TIF 2 was established in 1986 and expired in 2009. During that time the Village leveraged approximately $50 million in TIF funds to facilitate $200 million in private investment. TIF funds were used for the following: construction of three public parking garages (including the expansion and renovation of the Vail Avenue garage), streetscape / sidewalk beautification of all downtown streets, development of Harmony Park, construction of the train station, acquisition of the Metropolis Performing Arts Theater, loans and grants to renovate the older buildings in downtown, new sewers and street pavement, among other items. All bonds issued by the Village in these two TIF’s were paid off (defeased) on time wholly from TIF increment.

TIF 3 | Southwest corner of Arlington Heights & Rand Roads
TIF 3 was established in 1995 to spur redevelopment of the corner for 52,000 square feet of retail space. Current tenants include Barnes & Noble and Trader Joes. Funds were used to acquire land, remediate contaminated soils from a dry cleaners, and relocate a large antenna tower. $3.0 million in TIF funds were used to leverage $12.0 million in private investment. TIF 3 is estimated to terminate in 2015, which isthree years early as tax increment will be sufficient to pay off the bonds ahead of schedule due to the TIF’s success.

TIF 4 | Northeast of Golf & Arlington Heights Roads
TIF 4 was established in 2002 and includes 35 acres, including International Plaza (which is approximately 13 acres, or 37% of the total TIF area). The Village’s development agreement to redevelop for a SuperTarget store was terminated due to delays resulting from law suits filed against the Village. In January, 2006 Judge James R. Epstein of the Circuit Court of Cook County, ruled in favor of the Village determining that the Village did legally establish the TIF district. In Fall, 2009 Judge Epstein's ruling was upheld by the First Appellate Court of Illinois, thus confirming that the Village properly declared the area as a TIFdistrict.As a result of the delays related to the lawsuits and the economic recession beginning in 2007, the Village in 2014 commenced a process to extend the TIF District by 12 years. The Village first obtained support for the 12 year extension from various taxing districts including School District 59 and School District 214. A Bill was introduced in January, 2014 in the State of Illinois House to consider the extension. The Legislation was approved by the House in March, 2014 by a 108-3 vote and in May, 2014 by the State Senate by a 55-0 vote. The Governor in August 2014 signed the legislation into law.Over the past several years, the Village has moved forward with the acquisition of three properties near the corner of Arlington Heights Road and Golf Road, with the buildings being removed in order to prepare the site for future development. Also, in November 2013, the Village Board approved rezoning approximately 4.5 acres of land at the northeast corner of Council Trail and Arlington Heights Road for a memory care facility - Autumn Leaves. This facility is under construction and expected to open in late 2014. In September, the Village Board designated a developer to pursue development of the TIF area south of Council Trail to Golf Road in order to eliminate blighted conditions resulting in enhancing the Village's tax base.

TIF 5 | Town & Country and Southpoint Shopping Centers at Rand & Palatine Roads
TIF 5 was established in 2005 and includes two large shopping centers which were distressed with significant vacancies. In 2007, redevelopment of Town & Country Shopping Center was completed and new tenants opened including Dicks Sporting Goods, Ashley Furniture Store, and Joann Fabrics. $4.2 million in TIF funds were used to leverage approximately $24.0 million in private redevelopment. The Village is currently working with the owners of Southpoint Shopping Center to redevelop the vacant building at the southeast portion of the site along Rand Road, although no definitive plans are currently being discussed.

Hickory-Kensington TIF | Northeast of Northwest Highway & Kensington Intersection
The Hickory / Kensington TIF District was adopted by the Village Board in July, 2014. This TIF District was supported by School District 25 and School District 214, and the Arlington Heights Park District. The Board approved the TIF District after extensive public meetings/hearings of the Joint Review Board, Redevelopment Commission and Village Board. The TIF District is approximately 36 acres (see TIF Redevelopment Plan for exact boundaries). One of the goals of this TIF District is to redevelop older industrial land for mixed use development. Prior to the consideration of a TIF District, the Board approved the Hickory Kensington Area Plan.  This plan provided the framework for the long term vision for the area and was approved in January, 2013 after numerous public meetings throughout 2012.