ROCK ISLAND, Ill. — Rock Island is looking to bring in even more development to downtown in addition to ongoing construction.
It would be through a new tax increment financing district, similar to the one that expired a few years ago. That TIF funded projects like Schwiebert Park and contributed $1.5 million to the current roadwork in downtown Rock Island.
TIF districts freeze property tax values at the time the district goes into effect. Any new tax value generated is reinvested into the district. With financial incentives, Mayor Mike Thoms said TIFs draw property developers into areas that need it.
"It can be used for infrastructure of water and sewer, and foundations, and land acquisition," Thoms said.
At the end of a TIF's life, property tax values are unfrozen. Community Development Director Miles Brainard said it gives the city a boost.
"Very well-cared-for and well-managed TIFs can dramatically increase property tax revenues at the end of their life because of that reinvestment," Brainard said.
He said that was the plan for the old downtown TIF, too. It expired in 2020 after 35 years.
"The old TIF was perhaps at times too focused on improvements that may have made buildings better but didn't necessarily grow the tax base," Brainard said.
With a new TIF, he said there's a new focus.
"We’ve had a number of buildings be demolished making available brand new open sites for development," Brainard said. "That is a significant opportunity for new investment in the downtown, and a TIF would be highly advantageous for getting developments onto those sites."
Brainard said developers are ready to start, too.
"The number one question we’ve had since the old TIF closed is, 'When will you get a new TIF in place?', especially given these new development opportunities that have presented themselves more recently," Brainard said.
That's expected to happen by the end of the year, after a feasibility study and public hearing. While it will take a number of years to build up the funds for developer incentives, Thoms said it's all part of the plan.
"These things don’t get created overnight, and so it takes months to be able to put this TIF in place, and have it ready to go, and to build up the funds in it also," Thoms said. "So we’re just doing a little preparation for the future."
Brainard said a different Rock Island TIF is an example of a successful TIF district. The site over the old IH Harvester facility has had a number of redevelopment sites since it started in 2007. It's scheduled to expire in 2030.