Governor Ryan Signs Bill Reforming Tax Increment Finance Law
FOR IMMEDIATE RELEASE
August 11, 1999
Governor George H. Ryan today signed legislation reforming the Tax Increment Finance (TIF) Law which will ensure job-creating retail, residential and industrial projects will be created in future TIFs, increase oversight of the projects and control administrative costs.
"Today we are going to improve the TIF program and strengthen a law that is creating jobs and opportunity around the state," Governor Ryan said at bill signing ceremonies in Willow Springs and Peoria.
Ryan noted that Senate Bill 1032 and House Bill 306 bring needed reforms to the TIF law. "We want to encourage real job creation," he said.
Senate Bill 1032 allows reimbursement of local school districts, if the TIF raises their costs by adding new students. The bill also calls for TIF funds to include the cost of day care services for children of employees from low-income families working for businesses in the redeveloped area. The law will not allow financial support for a retail entity that closes operations at one nearby store in order to move into the TIF.
House Bill 306 renews the Industrial Jobs Recovery Law, which uses tax increment revenues to attract and retain industrial jobs in the labor surplus areas of the state where there are vacant industrial buildings.
Both laws strengthen the Review Board made up of the local leaders to provide better oversight for the TIF projects and better define what developments are TIF eligible.
"You won't see TIF-developed golf courses anymore, but you will see new business centers, tourist attractions and housing developments," Gov. Ryan said. "And this law reigns in the types of administrative costs eligible for TIF funds."
The chief sponsors of both bills were Sen. Christine Radogno, R-LaGrange, and Rep. David Leitch, R-Peoria.
Governor Ryan also signed Senate Bill 1025 which extends the allowable maturity date for TIF obligations to 35 years for East St. Louis, Kankakee and Sauget.
The City of Kankakee intends to use the funds generated by the continuation of this TIF to build a new building, which will house a new library. Kankakee's current library is 102 years old. The building will be built with a combination of public and private funds and also will include private office space.
Senate Bill 1025 was sponsored by Representative Phil Novak, D-Kankakee and Senator Larry Walsh, D-Joliet.