Tax Increment Financing (TIF)
The City of Oregon is scheduled to establish a Tax Increment Financing (TIF) District on February 28, 2017 as a means of encouraging private investment within the community. Development projects that take place within a TIF District are eligible for reimbursement of certain costs. Some examples include professional services (e.g., architectural, engineering, legal, financial, planning); site preparation and improvement expenses (e.g., acquisition of land, demolition or rehabilitation of buildings, public works projects, extension of utilities, land clearing/grading); job (re)training expenses; and long-term interest costs.
Any questions contact Darin DeHaan, City Administrator at City Hall 815-732-6321 or ddehaan@cityoforegon.org
TIF Developer Application Form: TIF Developer Application Fillable form
Recent TIF Developments: (More Information Coming Soon)
Trestle Ridge: 48 Townhome development on the Rock River. These will be homes for individuals who are 55 or older. Developer: Hvarre
River’s Edge Experience: 300 Person event venue along the beautiful Rock River: Developer Merlin Hagemann
Ogle County Brewery: Old Oregon Theater rehab and conversion to a Brewery in the heart of downtown Oregon.
- What is TIF?
Tax Increment Financing (TIF) is a tool that allows municipalities to target investments and jumpstart economic development in a specific geographical area called a “Redevelopment Area” or also referred to as a “TIF District”. The TIF program allocates future increases in property taxes from a designated area to pay for improvements within that area. In Illinois, once established, a TIF District can be in place for up to 23 years.
- How does it work?
With the help of a consultant, the City designates an area as a Redevelopment Project Area and then establishes a TIF program as a tool to encourage investment. Once a Redevelopment Project Area and TIF Program are created, the equalized assessed value of the property within the designated area is set as the base value for the area. As property values appreciate or increase within the area, the additional property tax revenues generated (the “increment”) are reinvested into the area to facilitate redevelopment and eliminate blight within the area. Increment may be used to fund public infrastructure and public improvement projects, site assembly and land acquisition, and certain redevelopment costs like demolition or rehabilitation. New construction is not generally an eligible expense.