Chicago

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City proposes $550M LaSalle Street TIF

Crain's--After months of rumors, the Daley Administration formally proposed to designate a 40-block section centering on LaSalle Street south of the river as a tax increment financing (TIF) district.

The city did not immediately spell out who would get money or in what amounts. But under an overview proposal submitted to the Community Development Commission, at least $550 million in property-tax receipts would be diverted from the Board of Education and other local governments over the next 23 years and instead be used to clear land, subsidize new building and redevelopment, and pay for public projects in the area, possibly a proposed Monroe Street express busway.

Another $200 million is allotted for rehabilitation of existing buildings, with $50 million for property assembly.

The projects would be funded by growth of property-tax receipts within the TIF area. The city argues that much of that growth would not occur if not for the subsidies, but some civic groups have argued that it is not wise policy to strip schools of even inflationary growth in tax receipts. More...
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