Homewood Takes a Step Toward Two New TIF Districts

Homewood took a step toward the development of two new Tax Increment Financing (TIF) districts during Tuesday night's village board meeting after Trustees voted in favor of partnering with the Kane, McKenna and Associates consulting firm to evaluate the feasibility of two new TIF sites.

The two areas in consideration are 175th Street, from Homewood Disposal to Halsted Street, and the East Central Business District (ECBD), from to . The village previously has worked with the consulting firm on other TIF projects.

Homewood Director of Finance Dennis Bubenik explained the logic behind the idea.

"We have a difficult property tax system here in Cook County … but the TIF tool allows us to deal with that and helps businesses, maybe to grow, or sometimes just to keep their doors open," Bubenik said. "We do have that advantage, though, of population base and commerce activity that some of our neighbors in Will County and Indiana don't have."

Among other things, a TIF, would help to alleviate tax burdens on current and future businesses in the district areas by a manipulated and fairly complex system of financing in which funds are used now in hopes that development will lead to higher equalized assessed value (EAV) in the future. The theoretical increased future EAV then will compensate for any accrued debts along the TIF's lifespan. According to Bubenik, the village plans on both TIFs lasting 23 years, the maximum allowed duration of a TIF.

Trustee Barbara Dawkins agreed that both areas in consideration are in need of redevelopment.

"175th … is completely dead and the vacancy rate is even worse than I thought it was," Dawkins said. "And, certainly, whatever we can do to keep our Central Business District vibrant is something that we would be remiss if we didn't do, so this is something that I am in favor of."

Trustee Anne Colton had similar views, specifically mentioning the ECBD area.

"I've lived here 11 years and that one storefront on Ridge Road has had soap in the windows since the day I moved in," Colton said. "It's clear something needs to be done."

But Colton warned that she was not giving her approval of the new TIFs just yet.

"I can't say whether or not I am going to support a TIF until I get all the information, but I think getting more information makes an awful lot of sense," Colton said. "One thing I want to make sure of is that we do engage our taxing partners—the library, the schools, the parks—and make sure we hear from everybody."