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TIF is a good thing and it will be a big plus for Riverside!

(41 posts)

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  1. edpilarz
    Member

    There is a lot of misinformation within this web site about TIF and the program is something that we need to make our community the best it can be so all of us and our families can have an even better place to live.

    So much of the common areas of the Village need improvement and the program can provide a lot of high quality improvements while providing what retailers and business need to succeed in Riverside.

    I have lived in Riverside as an owner of two homes for the last nine years and love our community and this program is a very smart way to provide the elements businesses need while improving the common areas of the development district.

    There are several different ways to apply the TIF proceeds and not all would be lost to the Village and the schools.

    This TIF district needs to be approved to give Riverside a chance to be an even better place to live.

    Posted Friday Dec 8, 2006 12:02 #
  2. ChrisHajer
    Member

    Hi Ed, thanks for joining the forum. If you have the time, can you point out specific misinformation on the site? I'm sure the individuals responsible for the information want to ensure its correctness, and would be willing to amend it if it's inaccurate.

    Thanks,
    Chris Hajer

    Posted Friday Dec 8, 2006 15:44 #
  3. MikeT
    Member

    I need more detail from the village on how the funds will be specifically used in order to agree with the original poster. I need to know why, for example, so many single family homes are in the district, even though it is for the commercial business district. I also need to know how the tif would not put the schools at risk for funds. I need to know who is going to receive the tif funds and how they will be distributed.

    Keep the information coming, please.

    mike

    Posted Saturday Dec 9, 2006 01:17 #
  4. Catherine
    Member

    Ed,  I have lived in Riverside even longer, and your "common area" happens to include "my home."  If the building at Burlington and Longcommon is considered an improvement, I'll hold my cards.

    Posted Saturday Dec 9, 2006 03:51 #
  5. corbi328
    Member

    Let me chime in and say that after careful study and consideration, I completely agree with Ed's conclusions. Furthermore, let me say that I have looked closely at the Village's current and projected operating budgets and the picture that is painted is not pretty. The Village's financial health is rapidly deteriorating and will reach alarming levels in two to three years. This situation is directly related to the deteriorating real estate and sales tax base within the Central Business District. If this situation goes unchecked, the village's alarming dependency on residential real estate tax revenue will increase to the point that average, middle class families will no longer be able afford to own a home in Riverside because of rapid escalation in residential real estate tax bills. The TIF is the best and most effective tool at the Village's disposal to prevent this draconian scenario.

    I make my case for the TIF on the basis of economics because it is the argument that should resonate the most with most, if not all, open minded Village residents. However, I happen to think that the TIF will generate many other benefits to the Village, although i readily admit that my views of how to "improve" the Village might differ from that of others. I do think that the physical condition of the building stock in the CBD is rapidly deteriorating and is not up to the standard set by the housing stock in the rest of the Village. The status quo is not acceptable in my mind. The TIF will not only create an incentive for redevelopment of this stock but also give the Village the leverage to have a say (beyond the say we already have through our building codes and ordinances) in the look of this redevelopment to insure that this redevelopment is compatible with the look and character of the village.

    In addition to the above, a successfully implemented TIF could provide the Village with funds to make badly needed infrastructure improvements, better maintain and enhance landscaping and the treasured green spaces in the Village, and create a windfall for the school system's operating budgets and potentially provide significant dollars for capital improvements at Central and Hauser (the latter would require a modest alteration to the borders of the TIF district). I encourage everyone to carefully study this matter (attend meetings, read the TOD and draft plan etc.) and I am convinced that most open minded Riversiders will come to the same conclusion as I have about the TIF.

    In my mind the TIF is an idea that should have been implemented in Riverside many years ago. However, it is not too late. A TIF will enable us to keep a greater share of our real estate tax dollars in Riverside to be reinvested for the betterment of our community rather than going to all the "outside" taxing bodies that take a big share of our real estate tax dollars (i.e. all of those entities that are listed on the left hand side of your tax bill like Cook County, Triton College, Water Reclamation District, Mosquito Abatement Authority etc....) While studying the matter, please make sure you are aware of the FACTS. Unlike what is stated in some parts of this web site, the TIF :

    1) WILL NOT put at risk the town's green space. Please see legal opinion posted on Village's web site and study state statutes on the TIF which stipulate that it is ILLEGAL to develop green spaces that have been designated as such on a Land Use Map.

    2) WILL NOT divert significant amounts of money from our local schools. This calculation has many variables that need to be considered, but my conservative calculation is that District 96 would lose less than $50,000 a year, on average, over the life of a 23 year TIF. Conversely, the potential upside for the school's operating budgets is significant and Central/Hauser could also benefit from TIF capital improvement dollars if slight modifications are made to the TIF boundary. Just for those who are wondering, I do have a daughter who was a recent graduate of district 96, a son who currently is enrolled in district 96, and will have another son in kindergarden next year.

    3) Lastly, the TIF WILL NOT leave village residents holding the bill if the TIF does not succeed. The Village Board has committed to a pay as you go approach with the TIF. This means that developers will receive future TIF benefits only after they have completed the redevelopment and this redevelopment has generated incremental EAV growth and therefore increased real estate tax revenue for the Village. At that point, the developer will receive only a FRACTION of the INCREMENTAL EAV they create for a finite number of years whereas the incremental EAV will generate increased revenues for the Village for a much longer period of time. Under this approach, no General Obligation bonds will be issued and therefore the risk to the Village is minor.

    Posted Friday Dec 15, 2006 11:22 #
  6. gorman195
    Member

    Significant amounts of money will be diverted from school districts 96 and 208 over a period of 23 years. All the loss of tax money will be shifted to the taxpayers outside the TIF. All tax revenue on the incremental EVA for 23 years will be denied the school districts (as well as the Village of Riverside a.k.a. police, fire, and village services for 23 years). The TIF provides NO opportunity for capital improvements for either school district! Your hope for "slight modifications" are a misguided pipe dream. There is absolutely NO "potential upside" for either school district's operating budget as you suggest. The school districts are absolute LOSERS with a Riverside TIF.

    Posted Friday Dec 15, 2006 13:19 #
  7. corbi328
    Member

    Gorman195, what do you mean by "significant"? If you define it the same way most people do, I respectfully disagree with everything you said. It completely contradicts every data point and piece of information I have looked at in studying the TIF.

    Let me address a couple of things you said which are directionally incorrect. The TIF redirects the incremental portion of tax funds for properties within the TIF district away from taxing bodies (including the Village) to a fund controlled EXCLUSIVELY BY THE VILLAGE. In other words, instead of the Village getting a small portion of the increment, they get all of it. It's beyond me how anybody who understands this concept would conclude that the Village and village services would be worse off as a result.

    Lastly, the TIF does provide the opportunity for Capital improvements at Hauser/Central if the TIF boundaries are redrawn to include these two buildings that are currently tangential to the TIF boundaries. If this change is made, TIF funds could be used to fund capital improvements that are needed at the these two schools in the coming years and will obviate the need for a tax referendum to fund these improvements/safety fixes. Several people, including myself, have suggested this change to the Village Board and I think they see the benefit of it and appear amenable to the change.

    Posted Friday Dec 15, 2006 14:30 #
  8. edpilarz
    Member

    corbi328 is correct with the explanation of how TIF works and how it impacts communities. I am personally working on three development TIFs in the Chicagoland area with three different communities and none of them will be adversely affected by the programs.

    The key world everyone MUST pay attention to is "incremental" that means from revenue that is not there today! It is not revenue that you can say will be lost by anyone because without the TIF you will never have it.

    gorman195 you are wrong about the impact on schools and you must get your facts straight in what TIF is had how it works under specific types of bonds and programs.

    We all need to focus on the TRUTH and not rumors!!!!!!

    Posted Saturday Dec 16, 2006 14:44 #
  9. RiversideResident
    Member

    Mr. Pilarz: you've posted two comments long on accusations and short on facts. You initially stated that there is a lot of misinformation in this website. Can you please enlighten us?

    You've also stated "There are several different ways to apply the TIF proceeds and not all would be lost to the Village and the schools." What are those ways?

    You recently mentioned that you are working on three development TIFs in the Chicagoland area and state that none of those will be adversely affected. Are you predicting in the future that they will not be adversely affected, or is there some history that shows the effect has been been beneficial rather than adverse in these TIFs?

    You also state we need to focus on the truth, but so far the proponents of the TIF have been long on rhetoric and promises and short on facts. Maybe you can enlighten us, from a developer's perspective.

    Thank you.

    Posted Saturday Dec 16, 2006 20:33 #
  10. RiversideResident
    Member

    "The key world everyone MUST pay attention to is "incremental" that means from revenue that is not there today! It is not revenue that you can say will be lost by anyone because without the TIF you will never have it."

    This assumes that without the TIF there will be no improvement and no development and that the EAV will remain stagnant or decline. With the recent development in town (Village Crossing, condos on Forest, townhomes on Burlington and Cowley (stalled but outside the TIF anyway), the Arcade building (also stalled but within the proposed TIF)) who's to say that EAV would be going down and not up? The increment might happen naturally and in that case the revenue to the taxing bodies <stromng>would be lost.

    Is that an accurate interpretation?

    Posted Saturday Dec 16, 2006 20:56 #

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