Tax increment Financing
The Tax Increment Financing Development Process
- The developer must submit to the TIF Investment Committee a written application for TIF assistance. The application must be on the form approved by the Committee. The Committee has the right and the authority to require additional information as the Committee may reasonably believe will assist the Committee and the Savanna City Council in addressing the application and in securing full compliance with the Tax Increment Allocation Redevelopment Act (65 ILCS 5/11-74.4 et seq.)
- The TIF Investment Committee will review the application, including such additional information as the Committee requests under paragraph 1, above. This review may include, among other matters, the developer’s business plan, construction drawings and financial information and the developer’s history in other business projects. No application for TIF assistance will be approved unless the Committee finds that without the allowance of TIF assistance, the developer will not proceed.
- After the Committee has reviewed the application, it shall report to the City Council its findings as to the merits of the application and shall recommend whether the City Council approve or decline to approve a resolution ( known as an “Inducement Resolution”) permitting the TIF Investment Committee to commence negotiations with the developer on a potential agreement for TIF assistance. If the Council declines to approve the Inducement Resolution, the Committee may meet with the developer to assist the developer in modifying its application for TIF assistance. If the Council approves the Inducement Resolution the Committee shall proceed as directed by the Council to negotiate an agreement with the developer specifying the manner, form and amount of TIF assistance the developer may receive.
- In the course of the negotiations, the Committee may require the developer to provide the Committee with such additional information as may reasonably assist the Committee in reaching an agreement with the developer.
- If the Committee and the developer reach a tentative agreement on the manner, form and amount of TIF assistance to be offered the developer, the Committee shall direct the drafting of a “redevelopment agreement” for presentation to the City Council explaining the terms of the redevelopment agreement and its reasons for recommending the approval of the redevelopment agreement to the City Council. The City Council may approve or disapprove the redevelopment agreement or it may suggest modifications with direction to the Committee to resume negotiations with the developer.
- No redevelopment agreement shall be presented to or approved by the City Council unless the project described in the redevelopment agreement for TIF assistance is located within the TIF District, will substantially increase the equalized assessed valuation of the property described in the redevelopment agreement, will comply with the overall redevelopment plan for the TIF District, and the completed project will otherwise substantially serve the development needs of the TIF District and the City of Savanna.
- If the City Council finds the redevelopment agreement is in proper form and fully complies with the requirements set forth in paragraph 6 and the Act, the Council may approve the redevelopment agreement by ordinance.
- Only bona fide expenses of the developer actually incurred by the developer in accordance with the developer’s application after the date of the City Council’s Inducement Resolution approving negotiation may be considered for TIF assistance and constitute “redevelopment project costs” as defined in the Act. No expense incurred prior to the date of the passage of the Inducement Resolution shall be eligible for TIF assistance. All expenses presented by the developer for TIF assistance must be supported by original proofs of payment and must be usual and customary charges. The Committee shall have the authority to request additional documentation in support of the developer’s request for TIF assistance.
Whiteside Carroll Enterprise Zone
The Whiteside Carroll Enterprise Zone offers several incentives for businesses including Sales Tax Deduction on Building Materials, Property Tax Abatement, Demolition, Investment Tax Credit, EZ Machinery and Equipment Sales Tax Exemption, and Utility Tax Exemption/Machinery and Equipment Deduction.
Whiteside Enterprise Zone
Northwest Illinois Economic Development
Northwest Illinois Economic Development promotes economic development by fostering business growth. They assist expanding and relocating businesses in determining their needs for growth with cooperation of our government and business partners. They encourage entrepreneurs by assisting with access to resources to begin and grow their businesses. They employ all available resources to create a welcoming business environment, aligning the skills of their workforce with the needs of businesses, and building political and economic capital.
Northwest Illinois Economic Development (NWILED)
Contact: David Schmit, firstname.lastname@example.org, 815-297-7361
Savanna Chamber of Commerce