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CDA staff: TIF District No. 1 will be closed; revenues to be distributed to taxing districts
Summary
CDA staff reported Tax Increment Financing (TIF) District No. 1 has recovered its costs and will be closed; staff said $354 million in assessed value was added and the CDA plans to call outstanding CDA revenue bonds and distribute any remaining increment to taxing districts.
Jessa, a Community Development Authority staff member, told the CDA that TIF District No. 1 is ready to be closed and the authority has sufficient funds to call the district's revenue bonds.
"TIF 1 added $354,000,000 in assessed value to the village," Jessa said, and she reported the district's total assessed value reached about $1.7 billion. She said the district incurred roughly $86,000,000 in project costs, of which about $71.1 million went to infrastructure, $5.7 million to property acquisition, $4.7 million to development incentives and $3.7 million for administration. "The total increment collected during its life was $95,700,000," she said.
Jessa said the CDA issued revenue bonds (not village bonds) and will "call those bonds" to pay holders in full, noting that debt payments extend through 2031 but staff intends to pay outstanding holders and end debt issuance for the projects tied to the district. Chair confirmed on the record that the village has enough revenue to cover the closure costs.
The board did not vote on closure in this meeting; the discussion recorded staff's financial summary and the plan to call CDA revenue bonds as revenues are sufficient to make anticipated payouts. The session included a brief exchange clarifying that any residual incremental revenue will be distributed back to taxing districts in proportion to their shares rather than remaining solely with the village.
The CDA will follow statutory and ordinance procedures for formally closing the district and calling bond obligations; staff said final numbers await state Department of Revenue (DOR) confirmation.
