South Westmont Business District TIF
Why a TIF District was created for the SWBD
- Developments today often require public-private financial partnerships. Private development deals can be extremely tough to finance. Developers, tenants, and lenders frequently ask what public incentives are available.
- It is a very competitive marketplace. Developers want to know what tools are in place now – not tools under consideration. TIF, in particular, takes at least four months to create, and for all but the largest of projects, that is simply too long to wait. Establishing a TIF allows Westmont to compete with other nearby communities that have TIF districts for development investment.
- The adoption of the TIF began the implementation phase of the Comprehensive Plan. The establishment of a TIF district provides a funding source to implement development opportunities recommended in this area.
- TIF can fund infrastructure improvements, including streetscapes, roads, new water and sewer services, and other utilities that are needed to support new development. Increasingly, tenants and developers want the infrastructure in place upfront – they do not want to wait for the extension or upgrading of services. The use of TIF funds to improve or extend utilities can be essential in attracting desired development, especially given other competitive locations.
- Many projects require multiple incentives. Given extremely difficult private financing markets, many projects that are moving forward today combine several financial tools like sales tax rebates, additional business district taxes, special service areas, and TIF to create a tiered approach to the public/private partnership. Sales tax incentives can assist larger projects like an auto dealership or a large retailer where significant sales tax is anticipated.
- Multiplier effect. In addition to providing a funding source for public improvements, TIF economic incentives can produce construction and full-time employment opportunities, and encourage ’spin-off’ developments which will seek a location in Westmont due to the presence of new businesses and an improved community image. The improvement of the South Westmont Business District can also result in an indirect improvement of properties not in the TIF district, including adjacent residential areas.
- Return on public investment. As reported by the Illinois Tax Increment Finance Association, "A 1992 survey of TIF municipalities found that the average TIF project produced four dollars of new private investment for every dollar of tax increment investment." A study of TIFs in Cook County created prior to 1990 indicates an outstanding track record of success, with an equalized assessed value growth rate of 325% compared to an average growth rate of 91% for the municipalities in which they are located.
- Assessed property values are down. Existing blighted conditions within the SWBD have caused property values to either decrease, or have not kept pace with the overall growth of the Village.
- Successful TIFs benefit the whole community. New development provides opportunities for employment, and increases the total taxable value of property, which then increases the tax base for all taxing bodies.
For more information regarding the SWBD TIF initiative, please contact the Westmont Community Development at 630-981-6250.