200 S. Hough Street  Barrington, IL 60010 | (847) 304-3400

Proposed Tax Increment Finance (TIF) District

The Village of Barrington is considering the establishment of a new TIF district for the area commonly known as the “Golden Triangle”. The Village engaged the nationally recognized TIF consulting firm, SB Friedman & Associates, to complete an eligibility study of the approximately 10-acre “Golden Triangle” area which confirmed the area is eligible for a TIF district. The redevelopment of this site has been a priority of the Village for over twenty years but redevelopment has been hindered by substantial property consolidation costs and environmental clean-up requirements. Establishing a TIF district will allow future incremental property tax growth generated by the development to reimburse for these and other TIF eligible redevelopment costs.

The proposed TIF district includes the site of the recently approved redevelopment project at 200-300 N. Hough St. The project includes 125 residential units, approximately 13,000 sq. ft. of restaurant and retail space and 37 car condominiums at the rear of the property. The establishment of the TIF district allows for this project and other redevelopment in this area to be possible.

What is a TIF District? What is Tax Increment?

“TIF” stands for Tax Increment Financing. TIF is a nationally and locally utilized economic development tool that assists municipalities with the redevelopment of specific geographic areas. The tax increment is the difference between the amount of property tax revenue generated by parcels within the TIF district before their inclusion within the district and the amount of property tax revenue generated each year after TIF district designation up to a maximum of 23 years. It is important to note that only this incremental amount of property taxes generated within the district is available to assist projects implemented within the district. The municipality is able to allocate these funds toward qualifying redevelopment costs.

In the case of the “Golden Triangle” property, substantial land acquisition costs, property consolidation costs and environmental cleanup requirements due to past land uses provided a barrier to development which contributed to the stagnant nature of the site. These items are qualifying redevelopment costs and a TIF district will allow for the future incremental property tax growth on the site to be utilized to reimburse for these and other similar extraordinary work.

The private investment that occurs within the TIF district as a result of specific projects increases the tax increment, creating a vital cycle that promotes development and redevelopment in the district, such that when the TIF district ends all of the overlapping taxing bodies, including the park district, library and school districts, benefit from the new growth and associated revenue.

The establishment of a TIF district does not reduce property tax revenues available to the other taxing districts. Property taxes collected on properties included in the TIF district at the time of its designation continue to be distributed to the school districts, park district, library district, and all other affected taxing districts in the same manner as if the TIF did not exist. Additionally, the school district will receive a seperate impact fee anually for each new student generated by any new development in the TIF district. Only the additional amount of property taxes generated by the incremental increase in the value of these properties after the establishment of the TIF district is available to be reinvested back into the TIF district.

Village Objectives

In the creation of these TIF districts, the Village of Barrington’s objectives include:

  • Creating and encouraging development/redevelopment in vacant and underutilized properties
  • Enhancing aesthetics
  • Improving restaurant and retail opportunities within the Village
Benefits of TIF Districts
  • Encouraging development and redevelopment of a certain area (the TIF District) via funding support that requires no tax increases.
  • Inducing private investment and development. Villages can utilize TIF funds to offset relocation and development costs, and improve needed infrastructure to facilitate redevelopment, among other legally defined costs to induce investment.
  • Creating a stronger, broader tax base. Infrastructure improvements and redevelopment of blighted areas attract private developers to invest in the community. As a result, the overall equalized assessment value increases, lessening the property tax burden.
  • Maintaining local control. Municipal officials are responsible for determining the best utilization of TIF funds, not the state or federal government.
  • Generating incremental revenue, which is reinvested in the TIF district. TIF funds are only generated and utilized within the TIF district, as a means to encourage the redevelopment of the area.
  • Benefiting other taxing bodies. At the end of the TIF, the entire increased property tax generated by the newly revitalized property goes to the underlying taxing bodies increasing revenue for schools, parks, libraries and so forth without raising taxes.
Use of TIF Funds

The Illinois TIF Act generally allows the use of TIF funds for the following items which often present monetary obstacles to the successful development of underutilized areas:

  • Property acquisition and consolidation
  • Environmental site cleanup
  • Public Infrastructure improvements
  • Financing costs
  • Studies, surveys and plans
  • Professional services (such as architectural, engineering, legal, and financial planning)
  • Demolition and site preparation

Please note that some restrictions may apply, so refer to the full State of Illinois TIF act for specific information related to TIF eligible expenses.

Questions? Contact Jennifer Tennant at (847) 304-3462 or email jtennant@barrington-il.gov.