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Tax Increment Financing, or TIF is a tool to assist in financing redevelopment projects in designated blighted and substandard areas of the city. The City of Fairbury issues bonds or a promissory note to finance any approved project. The property taxes generated from the increased valuation of the development are captured for a period of up to 15 years to repay the public investment.
The purpose of TIF is to help communities undertake redevelopment activities for urban renewal and municipal growth. TIF allows a city to pay for the public improvements that are part of a private redevelopment project. TIF is not a grant and it is not a primary funding source for a redevelopment project, but does provide an incentive for private development that will increase the tax base of the Fairbury community and create additional jobs.
Tax Increment Financing can be used for the following purposes:
Tax Increment Financing is primarily designed to finance public improvements associated with a project. However, residual funds can be used for other allowed purposes after allowing for the cost of public improvements.
HOW IT WORKS (LINK)
FAIRBURY'S TIF POLICY
Projects applying for TIF assistance must qualify by meeting certain criteria. Mandatory criteria must be met in order for the project to be considered. Discretionary criteria will enable the Community Redevelopment Authority (CRA) to further determine the benefits of the project. The project application must demonstrate how the project meets the required criteria.
In order to be considered for TIF, a project must meet each of the following mandatory criteria:
In addition, the project should meet several of the following discretionary criteria.
CITY OF FAIRBURY'S TIF APPLICATION