Submitted By
Steven Drazner, CFO
Reviewed By
LKS
Agenda Item Title
Title
An Ordinance Supplementing and Amending the Redevelopment Plan and Redevelopment Project for the Greater Downtown Redevelopment Area of the Village of Oak Park by Providing for Receipt of the 35th Year of Incremental Property Taxes in the 36th Year
End
Overview
Overview
The Village adopted the Greater Downtown Redevelopment Project Area on December 12, 1983. Pursuant to state law, 65 ILCS 5/11-74.4-3(n)(3) and 65 ILCS 5/11-74.4-3.5, TIF districts exist for a duration of 23 years and can be extended for an additional year for collection of the increment that is levied in the 23rd year. However, the Greater Downtown TIF was previously amended in 2005 by Ordinance 2005-O-21 which extended the duration of the Downtown TIF from 23 years to 35 years. The proposed ordinance for approval allows for the collection of tax increment for the final extended 35th year in the 36th year.
Body
Staff Recommendation
Adoption of attached Ordinance.
Fiscal Impact
Adoption of this ordinance will allow for the tax increment collection for the final tax year estimated at $11,600,000.
Background
Since Cook County property taxes are always distributed one year in arrears (tax year 2018 will not be collected until calendar year 2019), in order to capture the final 35th year of tax incremental revenue, the Village must extend the TIF one more year to December 31, 2019 by passage of attached ordinance. Annual tax incremental revenue has been budgeted in FY19 and any cumulative, unobligated surplus remaining in this TIF at the end of next fiscal year will be paid to the Cook County Treasurer and then redistributed to all eligible Oak Park taxing districts.
Alternatives
None. The TIF cannot be terminated as of December 31, 2018 since State statute requires that the Village provide notification of such TIF termination to the other taxing bodies by November 1, 2018.
Previous Board Action
N/A
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