Plainfield says TIF districts for downtown, Route 30 have paid off

Plainfield will be reviewing two Plainfield tax increment financing districts that have been in place for several years, including one that was adopted more than 20 years ago.

In compliance with the Illinois Tax Increment Financing legislation, a meeting to review the Downtown Tax Increment Financing District and the Route 30 Tax Increment Financing District will be at 3 p.m. Thursday, Dec. 19, at Village Hall, 24401 W. Lockport St. The public is invited.

A TIF district is a common public financing method and economic development tool used to help improve areas that are considered blighted and in need of redevelopment.

It diverts increased sales or property taxes generated to pay for specific improvements within the district. A TIF district can last up to 23 years.

Plainfield Economic Development Director Jake Melrose said that when a municipality is interested in adding a TIF district, it conducts a study to identify whether the area needs a “boost to get it going.”

“When you see a blighted property, those are essentially stagnate taxes. They are not growing,” he said.

Improvements to the property can increase the interest of new businesses coming to the area, which in turn adds to the property tax coffers.

The village operates two TIF funds, one for the downtown area that was established in 1997 and another currently in place and established in 2017 for the Route 30 corridor from Renwick Road to Interstate 55.

The Downtown TIF District had a base equalized assessed value of $3,902,976, and today the TIF’s EAV is $14,700,059.

In fiscal 2024, total downtown Plainfield TIF spending measured $838,244.

According to a statement of activities from the village’s TIF district for 2024, $352,258.92 was the amount distributed to local government units.

A portion of the funds was used for the completion of the Illinois Street reconstruction at a final cost of $113,000.

The village also continued to provide façade grant reimbursements, returning century-old buildings closer to their historic appearance for the properties at 24108 W. Lockport St., 15032 S. Illinois St., and 24038 W. Lockport St. at a total cost of $63,236.23.

In addition, other expenses included costs for the design of electrical systems performed by Christopher B. Burke Engineering and ongoing snow removal, maintenance, repairs, supplies and licensing fees for public music.

Route 30 corridor

In fiscal 2024, according to the village’s Route 30 TIF District statement of activities, the TIF expenditures included the payment of property tax rebates to the units of local government amounting to $264,349.06.

In addition, based on an economic incentive agreement, a payment totaling $239,971.91 was paid to the developer of “The Boulevard” development, a planned mixed-use development that includes 172 acres of land at the northwest quadrant of I-55 and Route 30.

In April, two new projects were approved at The Boulevard development: Cooper’s Hawk and Panda Express.

The new restaurants will generate more than $90,000 in additional property taxes, according to the village.

The Route 30 TIF corridor is seeking funds to update a façade at 15932 S. Lincoln Hwy.

The building improvement also includes a newly constructed three-story self-storage facility.

Based on village estimations, this new development should generate more than $100,000 in additional property taxes.

Currently, the site generates $28,000 in property taxes.

The Route 30 TIF District was established with a base EAV of $4,930,688 and today has an EAV of $12,703,227.

Melrose said the opening of Costco Wholesale in November 2020 as the anchor of the Boulevard Place Development is one of the largest commercial projects in more than a decade for the area.

In 2023, Costco had a tax bill of more than $500,000, with more than $480,000 going to the TIF fund and the remaining going to local taxing bodies.

With additional development to the area, Melrose said more funds will be captured by the TIF fund.