Tax increment financing (TIF) is a tool that utilizes tax gains for community improvement and redevelopment projects. The Central Area TIF district in downtown Springfield was created in 1981 and later extended by 12 years, then extended again by the legislature in 2016 for another 12 years, making it the first in the state to receive a second extension.
There are a total of eight other active TIF districts throughout the city: the Far East Side, Enos Park Neighborhood, SHA (Madison Park Place), Northeast, MacArthur Boulevard, Dirksen Parkway Commercial, Peoria Road and Lumber Lane. The boundaries of the Central Area TIF district span north to south between Carpenter Street and Edwards Street, and east to west between 11th Street and First Street. It is the oldest TIF district and also considered the most successful, with businesses and property owners who have been benefitting from TIF funding for more than four decades.
Many significant downtown projects have received funding, including the Abraham Lincoln Presidential Library and Museum, Kidzeum of Health and Science, Bicentennial Plaza and the new downtown YMCA. The TIF has also assisted with creating additional housing downtown, such as converting a former church to the Centre@501 and turning outdated upper-story office space into apartments.
The spending has not been entirely without controversy, including $750,000 used from the downtown TIF for roof repairs to the Municipal Center in 2017 and $600,000 awarded to Horace Mann last year for demolition of two buildings to create a parking lot. Smaller projects have also sparked heated debates at city council meetings, particularly over whether nonprofits (which don't generate tax revenue) should be eligible for funding.
But TIF is also used to support projects such as infrastructure and public utilities improvements and streetscape beautification. Having a revitalized and attractive downtown is something everyone can support, along with wanting our historic central core to be a beautiful and lively place.
