The city of Aurora intends to establish its ninth tax increment financing district.
While the cat is already out of the bag, the official announcement comes at the regular City Council meeting Tuesday [10/23], according to Martin Lyons, Aurora’s finance director.
The announcement is the first step in the long process of establishing a TIF district. The process includes an eventual public hearing, likely in January 2019, with adoption of the actual new TIF district by the City Council in February.
Although the city’s ninth tax increment financing district would be new, it would actually be old, because it’s being carved out of the city’s first TIF district, which is in the heart of downtown Aurora.
The planned boundaries of TIF No. 9 are Galena Boulevard on the north, Stolp Avenue on the west, Downer Place on the south and the west bank of the Fox River on the east.
The ninth TIF district would take in a good chunk of Stolp Island, which forms the heart of downtown Aurora. It includes the Paramount Arts Center and the new Aurora Arts Center building, but also other downtown buildings that could be part of future redevelopment plans.
While there is no specific redevelopment plan for the moment, the city said in some of the documentation with the announcement that this could set up the city as a partner with any private redevelopment in the area.
In a TIF district, assessed value is frozen for the purposes of taxation at the time of the formation of the TIF. As redevelopment occurs and assessed value of the property increases, the difference between the frozen value and the increased value goes into a fund, known as the increment.
That money can be spent on redevelopment in the TIF area, particularly on public infrastructure that goes with the development.
To establish a TIF, the city has to argue that the area is not expected to redevelop without help from the city. The city also can help with assembling the land for a redevelopment.
In the documentation, city officials estimate the assessed value of the land in the TIF after its expiration in 23 years would be between $5.5 million and $6.5 million.
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