TIF districts, that bugaboo of municipal financing that leeches billions from our tax revenues, are in the news again.
I’ve written about TIF districts before, and my Chicago Corruption Walking Tour takes people to the Bloomingdale’s downtown to show how this program meant for blighted, impoverished areas gets turned into mayoral pet projects for the wealthy. Cook County Clerk David Orr recently unveiled his latest TIF report, showing that now one-third of city property tax revenue is poured into these discretionary slush funds.
One in four properties in Chicago is in a TIF district, declared by the city to be so blighted special measures are needed.
How easy is it to get declared TIF-eligible? According to a 2016 Iowa Law Review article “Is Tax Increment Financing Racist? Chicago’s Racially Disparate TIF Spending,” city employees tasked by Chicago City Hall with reviewing whether an area qualifies for a TIF district have never turned in an answer other than yes. Never. Not for the six TIF districts Harold Washington wanted looked at, the one Eugene Sawyer approved, the 163 in place by the time Richard M. Daley left office or the current 143 fewer-but-larger TIF districts under Rahm Emanuel.
There are standards of course, both to be determined “blighted” and eligible for TIF or a “conservation area” that’s not blighted but still eligible for TIF. The reviewers have 13 conditions to review. If they find five, an area is blighted. They only need three for a conservation area, but the TIF will be just as TIF-y. Conditions they look for include structures older than 35 years, an area constructed without a community plan and conditions of dilapidation or deterioration.
Over 35, no real plan, showing signs of age and wear? I could be a TIF district, I joked.
So I decided to see if I could, reviewing the 13 conditions city reviewers have to check through before they can report back to the mayor that any area in Chicago is A-OK, 100-percent TIF-worthy. » Read the rest of this entry «