2013 TIF Analysis

August 3, 2014

CITY HAD $1.71 BILLION IN PROPERTY TAXES IN TIF ACCOUNTS ON JANUARY 1, 2014

[Download this as a Word document = TIF_Press_Release-8-3-14] [2014 Analysis] [2012 Analysis]

A review of the 2013 annual reports of the City’s 151 Tax Increment Financing Districts by volunteers with the TIF Illumination Project revealed some startling facts about local government finance:

  • Total Property Tax Increment extraction for 2013 = $412,083,831 (a decrease from 2012 of $37.3 million or 8.3%) This is the amount of property taxes extracted by Chicago’s TIF districts and diverted from local units of government that rely on property taxes for their operation. 56% of Chicago property taxes are SUPPOSED to go to the Chicago Public Schools.
  • 21 TIFs take at least 90% of ALL property taxes collected inside their borders.
  • The Top Ten TIFs collected a total of $203.3 million in property taxes in 2013. These are the “champions” in terms of property tax extraction. The Number One TIF = Near South, collected $61 million in 2013, representing 92% of total property taxes collected inside that district.
  • Total Expenditures = $385,988,162 (an increase from 2012 of $83.2 million or 25%) This is how much all of Chicago’s TIF districts spent in 2013.
  • Total Fund Balance = $1,708,029,756 (an increase of 1.7%) This is how much property taxes were left in all the TIF accounts on January 1, 2014.
  • Total revenues transferred INTO TIFs = $136,567,807. This how much revenue was placed INTO TIF accounts from other TIFs.
  • Total revenues transferred OUT of TIFs = $144,684,263 – leaving $8.1 million unaccounted for.
  • The Top Ten TIFs in terms of fund balance were holding $627,404,228 in property taxes on January 1, 2014.
  • Chicago’s 24 expired or repealed TIFs have collected $1.3 billion in property taxes, including a staggering $986,767,890 from the Central Loop TIF which expired in 2008.
  • The Department of Planning and Development extracted $7,558,864 for staffing costs from 91 TIFs.

The most striking number was the finding that over $1.7 billion in property taxes was sitting in TIF accounts on January 1, 2014.

The Top Ten TIFs by property tax collection are:

TIF Amount Collected
Near South $           60,967,751
LaSalle/Central $          21,420,164
Chicago/Kingsbury $           18,446,757
Near North $           16,983,065
Canal/Congress $           16,861,700
Kinzie $           16,177,357
Near South $           14,075,826
River West $           13,938,535
Central West $         12,948,017
Midwest $           11,448,176
$       203,267,348

The Top Ten TIFs by fund balance are:

Name Amount
Near South $         125,431,493
Central West $           68,384,433
Chicago/Central Park $           66,436,822
Canal/Congress $           61,191,121
Near North $           57,716,977
River West $           50,523,063
River South $           50,371,935
Chicago/Kingsbury $           50,158,372
Midwest $           49,077,482
Kinzie $           48,112,530
$       627,404,228

The Top Ten TIFs by expenditures are:

Name Amount
Near South $         100,535,651
Near North $           15,084,259
Chicago/Central Park $           13,722,741
Kinzie $           13,114,168
Michigan/Cermak $           11,256,253
River South $        11,069,871
Pilsen $           10,405,708
Central West $           10,325,729
Near West $           10,226,413
LaSalle/Central $           9,078,946
$       204,819,739

These TIFs that collected NO property taxes in 2013 are:

TIF Name
51st/Lake Park
67th/Wentworth
Avondale
Calumet
Chicago Lakeside
Greater Southwest West
Harlem
Harrison Central
Hollywood/Sheridan
Irving Park/Elston
Kennedy/Kimball
Kostner Avenue
Pershing/King
Pratt/ridge
West Pullman
14% of all of Chicago’s TIF extract at least 90% of all the property taxes inside their borders.

TIF #
TIF 2012 Property Tax Increment 2013 Property Tax Increment % TIF Take Mostly in Ward All in Ward
008 95th/Stony Island $1,023,822 $1,028,295 100% 8
119 Lakefront $235,102 $263,316 100% 4
124 67th/Cicero $93,877 $407,606 100% 13
126 Madden/Wells $938,665 $1,224,726 99% 4
059 Calumet/Cermak $13,038,537 $4,504,076 98% 2
122 Drexel $393,627 $319,404 98% 4
067 Archer Courts $304,957 $377,836 98% 25
002 41st/King $163,146 $156,175 95% 3
100 Ohio/Wabash $1,234,257 $1,479,152 95% 42
028 Lincoln/Belmont/Ashland $1,128,297 $1,029,317 95% 44
068 Roosevelt/Union $4,370,035 $3,691,621 94% 25
004 49th/St. Lawrence $457,115 $379,697 94% 4
037 River South $13,981,111 $14,025,876 93% 2
085 Western Avenue South $6,305,134 $5,386,700 93% 47
010 126th/Torrence $668,885 $899,846 93% 10
031 Near South $62,767,177 $60,967,751 92% 2
138 69th/Ashland $520,497 $456,804 92% 17
021 Englewood Mall $343,191 $239,594 92% 16
044 Stockyards (closed) $2,125,499 $1,487,807 91% 12
029 Michigan/Cermak $1,007,842 $1,275,832 91% 2
063 Canal/Congress $18,858,179 $16,861,700 90% 2
21 $116,463,131
14% of 151

Hundreds of millions of property tax dollars continue to move around the city, from one TIF into another and sometimes to the city’s General Fund:

Transfers In Transfers Out
24th/Michigan $43,810,000 Near South $           36,500,000
Near West $20,120,000 Near West $        11,698,551
Central West $11,698,551 Lake/Calumet $           8,034,600
North Pullman $8,100,000 River South $           7,115,000
Chicago/Central Park $7,418,559 Calumet/Cermak $           6,000,000
Michigan/Cermak $6,000,000 Canal/congress $           3,987,000
71st/Stony Island $4,914,483 Kinzie $           3,879,576
Hollywood/Sheridan $3,997,000 Northwest $           3,729,571
Madison/Austin $3,811,771 Midwest $           3,161,098
Midwest $3,161,098 Clark/Ridge $          3,136,000
Devon/Sheridan $3,136,000 Stony Island/Burnside $           2,912,685
Ewing Avenue $2,734,600 Lawrence/Broadway $           2,872,000
51st/Archer $2,695,228 Woodlawn $           2,535,276
Lawrence/Kedzie $2,500,000 Lawrence/Pulaski $           2,500,000
Near North $2,500,000 North Branch South $           2,500,000
Galewood/Armitage $2,247,003 Western/Rock Island $           2,120,000
Western Avenue North $2,000,000 Central West $           2,120,000
Western/Touhy $1,680,289 Clark/Montrose $           2,000,000
West Woodlawn $1,250,000 Belmont/Central $           1,994,811
95th/Western $1,200,000 87th/Cottage Grove $           1,687,250
119th/I-57 $950,000 Devon/Western $           1,680,289
Lincoln Avenue $749,998 63rd/Pulaski $           1,678,594
Harrison Central $731,362 Addison North $           1,354,000
Devon/Western $550,000 Roseland/Michigan $           1,300,000
63rd/Ashland $400,000 Bryn Mawr/Broadway $           1,125,000
105th/Vincennes $353,380 Midway $           1,016,634
67th/Cicero $350,000 Western Ave North $               749,998
West Pullman $280,500 Roosevelt/Cicero $               731,362
47th/Ashland $218,729 Pulaski $               720,269
Pershing/King $170,354 Lincoln Ave $               550,000
Avalon/South Shore $               529,272
60th/Western $               400,000
119th/I-57 $               353,380
Greater Southwest West $               350,000
119th/Halsted $            280,500
47th/Halsted $               218,729
Michigan/Cermak $               195,000
47th/King $               170,354

We were able to match money in and money out in a limited number of cases:

Transfers In Transfers Out
24th/Michigan $43,810,000 < Near South $           36,500,000
< Michigan/Cermak $               195,000
< River South $             7,115,000
$           43,810,000
47th/Ashland $218,729 < 47th/Halsted $               218,729
67th/Cicero $350,000 < Greater Southwest West $               350,000
105th/Vincennes $353,380 < 119th/I-57 $               353,380
Devon/Sheridan $3,136,000 < Clark/Ridge $             3,136,000
Harrison Central $731,362 < Roosevelt/Cicero $               731,362
Lawrence/Kedzie $2,500,000 < Lawrence/Pulaski $             2,500,000
Near North $2,500,000 < North Branch South $             2,500,000
Pershing/King $170,354 < 47th/King $               170,354
Western/Touhy $1,680,289 < Devon/Western $             1,680,289
West Pullman $280,500 < 119th/Halsted $               280,500
24 Chicago Terminated/Expired TIFs
TIF # TIF Status Started End Grand Total Property Tax Extraction
T-003 43rd and Damen Terminated 8/3/1994 12/31/2008 $                 1,863,540
T-006 72nd and Cicero Terminated 11/17/1993 2012 $                 3,973,719
T-007 73rd and Kedzie Terminated 11/17/1993 2012 $                   511,947
T-012 Bloomingdale/Laramie Repealed 9/15/1993 12/31/2008 $                         1,411
T-014 Central Loop Expired 6/20/1984 12/31/2008 $           986,767,890
T-015 Chatham-Ridge Expired 12/18/1986 12/31/2010 $             25,679,863
T-016 Chinatown Basin Expired 12/18/1986 12/31/2010 $             29,859,789
T-017 Division-Hooker Terminated 7/10/1996 2012 $                 3,378,641
T-018 Division/North Branch Terminated 3/15/1991 2012 $                4,275,520
T-019 Eastman/North Branch Terminated 10/7/1993 2012 $                 2,690,364
T-020 Edgewater Expired 12/18/1986 12/18/2009 $                 5,326,637
T-022 Fullteron/Normandy Terminated 10/7/1993 12/31/2008 $                7,263,866
T-025 Homan/Grand Trunk Terminated 12/15/1993 2012 $                 3,542,026
T-026 Howard-Paulina Expired 10/14/1988 12/31/2012 $             21,687,137
T-032 Near West Cancelled 1989 2013 $           140,102,118
T-041 Ryan/Garfield Terminated 12/18/1986 12/31/2008 $                 5,868,966
T-044 Stockyards Industrial Commercial Cancelled 3/9/1989 2013 $             45,266,087
T-046 West Grand Terminated 6/10/1996 2012 $                 1,179,348
T-047 West Ridge/Peterson Expired 10/27/1986 12/31/2010 $                 5,134,171
T-049 87th and State Cancelled 4/1/1998 2013 $                 4,387,549
T-051 26th-Kostner Repealed 4/29/1998 12/31/2008 $                   227,490
T-080 Addison/Kimball Industrial Park Repealed 1/12/2000 12/31/2008 $                 2,114,742
T-132 40th/State Repealed 3/10/2004 2013 $                               –
T-137 Lakeside/Clarendon Repealed 7/21/2004 2012 $                   693,320
$       1,301,796,141

In a new revelation from the TIF Illumination Project, we found that the Department of Planning and Economic Development extracted $7.6 million from 91 TIFs for city staff and administration costs. This amounts to skimming from the skim, so to speak.

$1,076,456 Near South
$362,086 Canal/Congress
$358,261 Chicago/Kingsbury
$344,959 LaSalle/Central
$335,003 Kinzie
$306,498 Near North
$286,549 River South
$264,349 River West
$262,082 Central West
$233,178 Near West (cancelled 2013)
$209,089 Midwest
$191,989 Pilsen
$153,682 Calumet/Cermak
$126,794 Western/Ogden
$116,818 Wilson Yard
$114,006 Northwest
$111,691 North Branch South
$110,218 Fullerton/Milwaukee
$108,375 Western Avenue South
$105,442 47th/King
$104,238 Lawrence/Kedzie
$87,683 Jefferson/Roosevelt
$78,842 Western Avenue North
$78,254 35th/Halsted
$77,072 Chicago/Central Park
$71,822 Englewood Neighborhood
$70,790 North Branch North
$66,955 Roosevelt/Union
$66,177 Goose Island
$56,503 Bronzeville
$52,349 Lawrence/Broadway
$49,499 Stony Island/Burnside
$47,890 71st/Stony Island
$45,050 47th/Halsted
$44,410 Lincoln Avenue
$44,131 Galewood/Armitage
$43,433 Belmont/Central
$43,376 Woodlawn
$43,010 Addision South
$41,545 119th/I-57
$41,487 Read/Dunning
$41,229 Roosevelt/Cicero
$39,952 Lake Calumet
$39,699 Pulaski
$38,139 43rd/Cottage Grove
$37,262 Clark/Montrose
$36,069 Devon/Western
$35,741 47th/Ashland
$33,897 Portage Park
$33,548 Diversey/Narragansett
$32,145 Roosevelt/Racine
$31,317 Clark/Ridge
$31,031 Bryn Mawr/Broadway
$30,870 Stockyards Southeast
$30,802 Madison/Austin
$30,307 Stockyards (cancelled 2013)
$29,038 63rd/Pulaski
$27,373 35th/State
$25,863 87th/Cottage Grove
$23,791 Addison North
$21,609 Lawrence/Pulaski
$21,589 Michigan/Cermak
$21,501 Midway
$21,198 47th/State
$21,018 79th/Southwest Highway
$20,587 Madden/Wells
$20,259 Commercial Avenue
$19,928 South Chicago
$19,300 24th/Michigan
$19,038 North/Cicero
$18,958 Roosevelt/Homan
$18,585 Division/Homan
$18,476 Roosevelt/Canal
$17,876 95th/Stony Island
$17,770 83rd/Stewart
$17,755 Belmont/Cicero
$17,079 Stockyards Annex
$16,007 63rd/Ashland
$15,591 126th/Torrence
$13,207 Ravenswood
$12,039 Western/Rock Island
$11,798 West Irving Park
$11,695 26th/King
$11,635 35th/Wallace
$11,329 79th Street
$11,253 Jefferson Park
$10,594 95th/Western
$10,491 Greater Southwest East
$10,313 111th/Kedzie
$10,211 119th/Halsted
$10,061 Austin
$7,558,864

The TIF Illumination Project is online at http://www.tifreports.com. It is an all volunteer project that is revealing the impacts of TIFs at the ward level. We show how much property taxes are extracted from inside each ward by the TIFs IN that ward. We produce posters that contain a map of the ward showing:

  • The shapes of all TIFs that are in the ward
  • How much revenue those TIFs took from properties just IN the ward
  • How much revenue FROM the ward was left in the in-ward TIF accounts at the end of the year
  • Who has received TIF funds inside the ward
  • Any schools being closed or experiencing recently announced budget cuts

The TIF Illumination Project distributes these graphic posters at TIF town meetings, or Illuminations, that have been independently organized by residents of the community. Since February of 2013 we have investigated and Illuminated 120 TIFs across 28 wards before over 2,300 people.

The complete record of these events and all the presentations made at them as well as the schedule for UPCOMING Illuminations are online at http://tifreports.com/tif-town-meetings.

We are offering a “TIF 101” workshop at the CivicLab, 114 N. Aberdeen Street, on Wednesday, August 20th, from 7:00pm to 8:30pm. The cost is $10. Further information is at http://tinyurl.com/TIF-101-8-20-14.

The CivicLab is seeking funding to flesh out and extend the research on Chicago’s TIF districts plus the TIFs in suburban Cook County. We wish to place all our information online in an easy-to-use web site that will also contain all the details on the projects funded by TIF dollars.

Tom Tresser is the founder and lead organizer of the TIF Illumination Project. His web site is at http://www.tresser.com. He is the co-founder of the CivicLab, http://www.civiclab.us. The CivicLab is America’s only co-working space dedicated to collaboration, education and innovation for civic engagement and social justice. We are located at 114 N. Aberdeen Street in Chicago’s West Loop.

 

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