Archive for April, 2010

SB3151 May Negatively Impact the Availability of TIF Funds

Friday, April 23rd, 2010

The Illinois Legislature is currently considering SB3151, an Amendment to the TIF Act, which proposes an annual increase to the initial equalized assessed value (EAV) of a Redevelopment Project Area by the annual rate of increase of the Consumer Price Index (CPI).

If the proposed Amendment is adopted, it will result in a higher TIF base and a lower property tax rate, all other factors remaining constant, and may reduce the available tax increment for redevelopment projects.  The following example provides a detailed illustration of this impact:

Example of Proposed SB3151′s Impact on TIF Funds

City of Chicago Considers Living Wage Ordinance

Thursday, April 15th, 2010

Alderman Freddrenna Lyle (6th Ward) introduced a living wage ordinance on April 14th, 2010 that would require large retailers (those that employ at least 50 employees) benefiting directly or indirectly from City subsidies, including tax increment financing, to pay a “living wage” of at least $11.03 per hour.  The proposed ordinance was introduced the day before the Chicago Plan Commission is scheduled to vote on the Pullman Park project, a 180-acre mixed-use development anchored by the City’s first Wal-Mart supercenter that would also include 850 homes, a hotel, a community recreation center, a park and senior apartments.

A similar ordinance introduced earlier this year was not adopted by the City Council.  Mayor Daley vetoed a big-box minimum-wage ordinance in 2006.