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TIFs divert $9.4M in taxes, attorney says; District 69 disputes village IGA payment
Summary
An attorney's presentation outlined how three TIF districts generated $9.4 million in incremental tax revenue last year and highlighted a disputed IGA payment for the Oakton/Niles TIF; the District returned a reduced FY26 payment and is seeking full payment per the agreement.
Attorney Ares Dalianis of Franczek gave the Board an informational overview of Tax Increment Financing (TIF) and its fiscal effect on overlapping taxing bodies. He explained that a TIF freezes assessed value (EAV) at a baseline and directs incremental growth above that baseline back into the TIF district for redevelopment, while original taxing bodies continue to receive revenue based on the frozen base.
Dalianis told the Board the Village currently operates three TIFs affecting District 69 — Downtown Science & Technology, West Dempster, and Oakton/Niles — and that "in the most recent tax year, the Village generated $9.4 million in property tax revenue from the three TIFs." He cautioned that, as the smallest overlapping taxing body, District 69 is more significantly affected than larger bodies and recommended the district advocate for smaller, targeted TIFs and negotiated intergovernmental agreements to address student and fiscal impacts.
On the Oakton/Niles ("Hotel") TIF, Dalianis said the Village had paid $254,842 annually to the District from FY21–FY25 but, in FY26, "the Village unilaterally recalculated the IGA payment and issued $63,812.65 to the District without consultation." According to the presenter, the IGA ties annual adjustments to 2020 dollars, specifies no interest, and is fixed for the life of the TIF; District administrators returned the FY26 check and have requested full payment consistent with the agreement. The Board did not take formal action on the IGA during the meeting but scheduled further conversations with Village representatives.
