TIF Program Information

If you have any questions about this application at any stage please contact zoning@bentonil.gov
The Tax Increment Allocation Redevelopment Act (65 ILCS 11-74.4-1) allows units of local governments the ability to designate geographic areas within their jurisdiction as TIF districts. TIF is designed to encourage new economic development and jobs through private investment in areas that have proven to be underdeveloped and would not have received such investment "but for" TIF assistance. If an owner or developer has a project in mind, but there is a gap in the financing to get the project done, TIF assistance may be an option. A Developers Agreement is required, which will need City Council approval. Again TIF is not an increase in taxes. It is only a re-allocation of how they are used. Increases in property taxes experienced by property owners are due to reassessment and rate increases, not TIF. TIF Redevelopment Assistance Program Handbook.

Background And Concept
Tax increment financing (TIF) is a method for financing economic development and redevelopment in Illinois municipalities. The primary purpose of TIF is to eliminate economic and physical decline by designating certain redevelopment districts.
When a TIF district is established, the most recent total equalized assessed valuation (EAV) for the district is determined. This is known as the "base EAV". As the TIF district is developed, its total EAV will grow. That portion attributable to the increase in EAV, known as the "tax increment", is placed in a special fund and is spent for redevelopment purposes as outlined in the TIF Redevelopment Plan.
The success of a TIF district is dependent upon increasing the EAV over the base through redevelopment. Establishing a TIF district does not decrease tax revenues collected by any taxing district; nor does TIF impose special assessments or raise the overall tax rate in the district. Taxes collected on the base EAV continue to be distributed to the municipalities, schools, libraries, and other authorities in the same manner. Only taxes generated above the base EAV are available for TIF use.

Local Objectives
The City of Benton currently manages two TIF districts. The Downtown District was established in 2007 and is generally located around the downtown square commonly referred to as the "Downtown TIF" and is scheduled to expire in 20301. The second TIF District is the IJRL District that was established in 2008 is generally located west of I-57 around the the Benton Municiple Airport. This program is intended to promote redevelopment in Benton, as well as achieve overall community beautification through the improvements of building assets. Through this program the City hopes to make a positive statement about the Benton business climate to the community, visitors, as well as existing and potential business tenants. The City believes that by providing incentives to spur preservation, revitalization and reinvestment in structures within the core commercial corridors of the City, it will create a more attractive community as well as greatly complement the economic development goals of the City of Benton.

The objective of the Redevelopment Plan is as follows:
Downtown TIF
  • Preservation and conservation of privately owned properties.
  • Maintenance of an economically viable and vibrant downtown.
  • Preservation and conservation of privately owned properties.
  • Maintenance of an economically viable and vibrant Industry.
Types of Assistance
TIF assistance is often in the form of a grant or subsidy, typically paid in multiple reimbursements up to 20 percent of the TIF eligible costs. Assistance may also be given in the form of a loan, interest write-down or reimbursement, or tax sharing


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