DON DAVIS \ Tax Increment Financing | ‘Tax Increment Financing (TIF) uses the increase in taxes resulting from an area's redevelopment to help subsidize the costs of redevelopment. The paper focuses on the mechanisms and problems of using real property tax increments under Illinois law. Two distinct methods of calculating tax increments, the “aggregate” and “par- cel” methods, are examined. A brief case study is provided. In recent years, American cities have been faced with declining federal aid to combat urban decay.' Cities and states have reacted with various strategies and creative financ- ing tools. One tool gaining in popularity is tax increment financing (TIF). TIF is not a new tax; rather, TIF only directly affects the allocation of tax dollars. The essence of TIF is that any increase in tax revenues resulting from redevelopment in the TIF district goes into a TIF fund which is used to subsidize redevelopment activities. TIF must be authorized by a state government before a municipality can utilizs For this reason, while the basic concept remains the same, the specific mechanisms by nich TIF operates vary from state to state. Unless otherwise cited, the specific infor- mation on TIF in this paper is for the State of Illinois as found in the Tax Increment location Redevelopment Act, as amended in 1986. This paper is primarily concerned Less attention will be given to the legislation’s provisions for capturing sales tax incre- ments. No attention at all will be given to the issues specific to industrial park TIF districts. A detailed explanation of how TIF works will be provided later in the text. The afticle first examines the TIF district in Geneva. Illinois as a case study. | GENEVA'S RIVERFRONT TIF DISTRICT neva is an older city, established in 1867, located on the fringe of the Chicago letropolitan region. The city has a healthy central business district with a regional teputation for its restaurants and specialty shops. However, the riverfront area near the mn the Pi Alpha Alpha award for the Best Student Manuscript in Public Administration 1986-1987. oe Davis is community development director, Antioch, Il. The article is a revision of a paper which The author was a masters of public administration student at Northern [linois University, DeKalb, Il. Davis / THF 63central business district fac were prevalent. The city made several attempts at alleviating the problem. Plans for a joint city- county administrative center fell through when the city purchased an abandoned semi- nary for their offices. Commercial and industrial revenue bonds failed to be an ade- quate incentive for private deyelopment. A community development block grant was applied for, but turned down due to Geneva’ relative affluence. The city turned to TIF. A planning consultant was hired to draw up the eligibility reports and master plan for the 37.5 acre riverfront redevelopment district. A local developer agreed to build a small mall, integrating an abandoned factory into the structure. In return, the city spent $300,000, financed through a TIF revenue bond, on a small public park and infrastructure improvements adjacent to the mall. The mall is now complete and the property tax increments have proved sufficient to make the bond payments. There has been some additional private development in the area, which has not required any TIF expenditures. The next phase of the redevelop- serious deterioration. Abandoned factories and stores ment includes many projects. antiquated public works facilit The revenue stream flowing ment to the original TIF legis! sales tax increments in additio its one percent sales tax aaa increment. In the case of Gene the first year. On the surface TIF is a simple! increments, resulting from an development. The TIF proper! increases in equalized assessed property in a TIF district.? The rate for that year and all of the fund. There are also provisions’ ments. Beyond this simplicity li most notably the parcel method Why Cities Love TIF TIF benefits the city by alloy mental aid, and, in some cases, voter approval. But the primar; allows the city to capture some during the allocation process it Property's Eav and the resulting| 64 ‘he largest project will be the adaptive renovation of the into a private development. into Geneva’s TIF fund has been increased. An amend- tion allows TIF districts created before 1987 to capture fl to property tax increments. The city must contribute ent in order to receive the state’s five percent sales tax /a, this means an additional $55,000 to the TIF fund for WHAT IS TIF? lidea. A municipality uses the increase in taxes, i.e. tax prea’s redevelopment to help subsidize the costs of re- ity tax increments are determined by calculating the alue (EAV) over the initial base Eav for every parcel of these increments are multiplied by the appropriate tax resulting increase in tax revenues is allocated to the TIF for municipalities to capture sales and utility tax incre- ies the complicated mechanics of TIE. These mechanics, |, must be understood to prevent disastrous results. ing it to avoid the red tape and delays of intergovern- y avoiding both municipal debt limits and the need for rene of TIE from the city’s viewpoint is that it f other taxing bodies’ income. This capturing of funds justified on the grounds that the increments in real increase in taxes would not have occurred without the Public Budgeting & Finance / Spring 1989expenditure of TIF funds. City officials often consider it unfair that the city undertakes all the costs of redevelopment only to receive a small share of the resulting increase in tax income. Supposedly, the other taxing bodies are not harmed by the TIF because they still receive the taxes derived from the Eav at the time the TIF district is estab- lished. Few understand that this base Ev can decline. Why Others Fear TIF TIF is a very popular tool when redevelopment is truly necessary and TIF is used in ‘an appropriate manner. However, the criteria for establishing a TIF district is often loose enough to include areas where problems are minor or non-existent. Affected taxing bodies often object to TIF on the grounds that the TIF district will capture taxes which would otherwise go to them or that the TIF will increase demand for services while their tax base remains the same for the life of the TIF Some feel that city, state, land federal governments alone are financially responsible for redevelopment. Affected taxing bodies do lose all the taxes derived from normal inflationary pres- ‘sures and reinvestment. They lose taxes from investments which would have occurred elsewhere in the taxing body’s district but were channeled into the TIF district. They lalso lose taxes if the base ev decreases, unless an agreement is reached with the municipality. The base Eav can decrease as a result of dropping property values or when ‘old buildings are demolished. Some fear that a specific TIF district plan is simply infeasible and will not pay its own way. This fear is especially acute when revenue bonds lare used to finance the project. The fear of increased demand on services without compensation is especially true in ithe case of residential redevelopment, due to the high cost of education and other human services. Some city departments may oppose TIF for this reason, although such iissreements usually occur in-house. The city can recover most of the money spent irectly on the TIF district from the TIF fund. Others consider government intervention in the marketplace improper. They feel hat TIF financially helps certain property owners at the expense of other property wners and businessmen. In fact there is a perception, correct or incorrect, that TIF rewards property owners and businessmen who created their own problems in a myriad f ways, including excessive rents, lack of maintenance, and inability to compete. While some fear that TIF will unfairly help TIF property owners and businessmen, thers fear that it hurts existing owners, businessmen, and residents for the benefit of utside developers and their patrons. TIF property owners fear they will be forced either fix up their building with money they don’t have, or to sell their property without fae compensation. Businessmen and residents fear forced relocation and the lestruction of their neighborhood. If insufficient consideration is given to their needs, they could be out of business or living in the streets. America’s shrinking supply of ffordable housing is a serious problem, and poorly conceived redevelopment activities xacerbate the problem. | One major issue is that TIF tends to stress bricks-and-mortar projects. The alter- ative is a holistic approach, advocated by the National Main Street Network and 65neighborhood organizations. TI historic rehabiliation and disco) high quality redevelopment pi more taxes. The effectiveness a approaches are worthy of a sep: ha ESTA! TIF districts begin with a mas blighted or conservation area a: than one and one half acres.? accomplish the objectives of ¢ holistic approach stresses economic restructuring and rages demolition. TIF encourages high density and/or jects over basic rehabilitation because they generate d desirability of the bricks-and-mortar and the holistic rate and major study. BLISHING A TIF DISTRICT (er plan, which must show that the district is either a defined by state statutes, and that the district is larger lhe plan must lay out a “program to be undertaken to redevelopment project. The municipal authorities, e eg. city council, must sree redevelopment plan, certifying that this plan con- forms to the municipality's cor develop unless there were publi Once the area is legally incorp} property in the district is frozen, property tax income derived fr among the taxing districts acco the district rise, all the income| income is allocated to a special activities. Sales and utility tax applicable. The TIF fund is oper} are paid, or twenty-three years H the TIF district is dissolved, the| Property tax income. CALCULATI There are two methods of calcul gate method.” While the legisiati the basis of individual parcels, q| on the basis of aggregate totals fc important. The parcel method gi icity. If the planner does not tal prehensive plan and that the area likely would not intervention. rated into a TIF district, the Eav for each parcel of real ‘at what is referred to as the base EAv or initial Eav. The m the lower of the base EAV or current EAV is divided ding to their millage rates. As the Eav of the parcels in derived from the resulting increases in property tax TIF fund, which is used to subsidize redevelopment increments will provide additional TIF revenue when ational until either the project is complete and the bills las passed from the date of municipal approval.) After {taxing districts receive their allotted share of the total iG PROPERTY TAX INCREMENTS lating increments, the “parcel method” and the “aggre- ni specifically states that increments are calculated on ite often TIF is understood as calculating increments r the entire TIF district. The distinction is subtle, but reatly complicates the use of TIF because of its specif- je the specific mechanisms of the parcel method into account, a plan which is otherwise excellent can be terrible. Correspondingly, a planner, knowledgeable in the specific m edge to benefit the TIF fund at t Unexplainably, every source ambiguous or explains TIF with! partment of Commerce and Co publications.* DeCCA’ descrip “the amount of taxes collected 66 ichanisms of the parcel method can abuse this knowl- e expense of the overlapping taxing bodies. ‘onsulted other than the actual legislation is either the aggregate method. Even the State of Illinois’ De- munity Affairs (DeCCA) does so in several official ion of TIF is clearly inaccurate with statements like jefore the project started continue to go to the other | Public Budgeting & Finance / Spring 1989xing bodies."” DeCCA’ publications on TIF contribute to the myth that TIF is an innocuous redevelopment tool which cannot negatively impact affected taxing bodies. In defense of these sources, the legislation is somewhat vague on the administration TIE The City of Geneva and the County Clerk had to request a legal opinion on this ject. The opinion confirmed the County Clerk's belief that the TIF fund is entitled to e increment arising from each property showing an increase with no offset for any feclines in other properties Eavs (emphasis added). In other words, property tax incre- ents are calculated on the basis of individual parcels rather than on the aggregate total r the TIF district. he “New Parcel” Problem The most significant difference in these methods is actually fairly simple to under- and. Every time a parcel is subdivided or combined with another parcel, a new parcel is created. Keep in mind that creating new parcels is very common in redevelopment istricts. Assuming only property within the TIF is concerned, the creation of a new arcel matters little using the aggregate method. Under the parcel method, a new parcel creates a new base Eav. A subdivided parcel joes not have its initial base rav divided among the new parcels. Nor does the com- ined parcel determine its base by adding together its components’ base Eavs. A new Eav is created. Suppose a new five million dollar appartment complex is built in a TIF district. In der to obtain the complex, the city has paid for significant public improvements in the area with a million dollar bond issue. The city and bond holders expect that the roperty tax increments will easily pay the debt. Unfortunately the apartment complex, ‘hich had been one parcel, gives a small segment of land to the park district. Two new arcels are created. Two new base Eavs are created. And the TIF fund receives no roperty tax increment from the apartment complex. The same result would occur if a arcel was added to the apartment complex’s parcel and one new parcel was created. On the other hand the city may be fully cognizant of the parcel method and abuse it. he city can plan its redevelopment activities to lower the base Eav of parcels, thus pturing larger increments. For instance, the city can go into an area where there are two abandoned factories, each having a base Eav of $250,000. The city has the de- jeloper tear down the factories, combine the two parcels into one, and then leave the el vacant until the tax assessor determines the new base Eav. The vacant parcel has new base Eav of $50,000, versus the old base Eav of $500,000. The end result is that ‘the other taxing bodies have lost $450,000 from their tax bases. he “Off-Setting Loss” Problem Another major difference in methods is that the parcel method does not permit the ns in Eav for one parcel to offset the losses in Eav for another parcel. A hypothetical xample will help explain the differences in methods. However, this example is con- ‘ned only with the issue of calculating increments, ignoring other issues for the sake | Iie / TIF 67 | |Year One EAV Year Two EAV Current EAV Base EAV TIF EAV increment [ TABLE A reel A Parcel B Total EAV 19,000 $1,000 $50,000 1,000 $99,000 $100,000 \GGREGATE METHOD PARCEL METHOD $100,000 $100,000 $50,000 $2,000 $50,000 98,000 of simplicity. Table A is a TI contains a small building with $1,000. The initial eav for this The next year, Parcel A’s buil parcel’s new Eav is $1,000. Next cial shopping center with a net Eav is $50,000 and the current from the $50,000 increment has been offset by an increase ii Using the aggregate method, altered. Affected taxing districts the property in the TIF district for the TIF district drops below property tax income derived fi t district consisting of two parcels of land. Parcel A in Eav of $49,000. Parcel B is a vacant lot with an Eav of istrict is $50,000 ($49,000 + $1,000). ing is torn down and replaced with a parking lot. This (door, the vacant field has been replaced with a commer- av of $99,000. Using the aggregate method, the base ‘av is $100,000. Thus, the property tax revenue derived s into the TIF fund. The decrease in one parcel’s EAV another parcel’s Eav. the base Eav changes only when the TIF boundaries are will not receive the same property tax revenues from is they did before the TIF’s creation only if the total Eav {the total initial base eav. Whenever this occurs, all the jom the TIF district's Eav will be allocated to taxing bodies proportional to their current tax rate. Therefore, the TIF fund receives no income, Using the parcel method, the individual parcels. There is no creases. Every year the base EAV current EAV or the initial Eav, fo is no longer $50,000 but $2,000 in Eav is not $50,000 but $98, the parcel method. the TIF fun bodies’ base Eav decreases. The “Intensified Use” Problem The situation just described al aggregate method. Maximum be ase Eav and increments are determined on the basis of loffset if one parcel’s eav increases while another de- is calculated by adding together whichever is lower, the each parcel. In the example, the base Eav for year two (e.g. $1,000 + $1,000). Correspondingly, the increase 10. In other words, the base eav can be changed. Using can receive tax increments while overlapping taxing Taises an issue equally important for TIFs using the efits can be derived for the TIF fund if the TIF area is so managed that changes which raise the Eav occur within the TIF district, while changes which lower the EAV occ land neighboring TIF districts t land within the TIF district can be 68 T Outside the TIF district. Thus it encourages using the support developments whithin the TIF district. The used more intensely, with more increments resulting. Public Budgeting & Finance / Spring 1989faving a shopping center within a TIF. while the parking lot is outside of the TIF strict, is a good example of this. | | | i | rte “Tax | The TIF legislation is vague on how to address the problem of property changing ‘om tax-exempt to taxable status. The administration of this situation is an important ue because municipalities often own property, at least temporarily, in redevelopment reas and thus there are substantial sums of property tax income at stake. Additionally. ities could purposely make property tax-exempt in order to create a base EAV of zero jollars. The only possible provision for dealing with this situation is references to calculating : funds based upon “the current equalized assessed value as adjusted.”* The legisla- i cempt” Problem ion does not define either of these terms. It is also clear from the context of these terms at they are not referring to adjusting for homestead exemptions, It is simply not clear ‘hat is being adjusted. The references to the “current Eav as adjusted” clearly state that should be used in calculating the increments only if it is lower than the current Eav.” The “Homestead Exemption” Problem In Illinois the Eav of property is determined by the township assessor at a rate of one- ird of market value. The county and state use multipliers to equalize the assessed Jues between different townships. Before the Eav is multiplied by the tax rates and a Xx bill issued, homestead exemptions are subtracted from the Eav. The exemptions ry each year in amount, but serve the same purpose. The exemptions are designed to ipwer the tax bill for the homeowner's primary residence, and lower it even more if the jomeowner is a senior citizen. In 1986 the exemptions per home were $3,500 and 2,000 respectively. In administering TIFs, the homestead exemptions are deducted om both the base eav and the current Ev. Therefore, they have no impact on incre- ents but do reduce the base Eav of other taxing bodies. Taxing bodies will be negatively impacted if the TIF redevelopment plan results in ew homestead exemptions. Again, let us use a hypothetical example to explore this issue. The example ignores other issues for the sake of simplicity. Parcels C and D are parcels of land which contain two abandoned buildings. They have an Eav of 20,000 and $10,000 respectively. Since neither is an owner-occupied home, neither ualifies for a homestead exemption. In the TIF's first year, the buildings are torn down and two small homes are built on these parcels. Each now has an eav of $25,000. Both jomnes are owned by senior citizens, who ask for and receive the full $5,500 homestead xemptions. | The year before TIF, these two parcels paid $1,800 in property taxes to taxing bodies. he next year, these parcels paid a total of $2,400 (i.e., $1,140 + $1,260), an increase of 600. However, the TIF income is not $600. The TIF fund receives all increases in roperty taxes (i.e., $1,260) and is not penalized by the homestead exemptions. Rather, the exemptions are deducted from the base av. Thus, in the first year of TIF the taxing | Davis / TIF 69TABLE B YEAR BEFORE TIF Parcel C Parcel D Total EAV (initial) $20,000 $10,000 $30,000 Homestead exemptions $0 $0 $0 Tax millage rate 6.0 6.0 6.0 Taxes paid $1,200 $600 $1,800 YEAR AFTER TIF Parcel C Parcel D Total EAV (initial) $20,000 $10,000 $30,000 EAV (current) $25,500 $25,500 $51,000 Homestead exemptions $5,500 $5,500 $11,000 Adjusted EAV (current EAV—exemptions) $20,000 $20,000 $40,000 ‘Tax millage rate 6.0 6.0 6.0 Taxes paid by home owner $1,200 $1,200 $2,400 Base EAV (initial EAV—exemptions) $14,500 $4,500 $19,000 ‘Taxes to taxing bodies $870 $270 $1,140 Decline from year before $330 $330 $660 Increment EAV (current—initial EAV) $5,500 $15,500 $21,000 Taxes to TIF fund $330 $930 $1,260 bodies see their income decline from $1,800 to $1,140, a decline of $660. The manner in which the homestead exemption jis handled results in the TIF fund capturing the taxes derived from the homestead exemptions at the expense of the other taxing bodies. The “Accountability” Problem One major problem with TIF js the absence of any system of checks and balances. The Illinois municipality does not need the approval of any affected taxing bodies in order to create a TIE The affected taxing bodies have only two recourses if they object to a TIE One is to use their political|pull to redesign or stop the TIF district. The power of some taxing bodies, especially school districts, can be significant. The other option is legal action. The author is unaware of any lawsuits settled by the courts in favor of affected taxing bodies. The enabling legislation is broad and subjective enough that it would be difficult for a TIF distri¢t to lose in a court of law, The State of Illinois does monitor TIFs. However, the state’s role is woefully inade- quate. Incredibly, no state agency|was given the power to enforce the state’s TIF legisla- tion. The Department of Commerce and Community Affairs maintains records on TIF districts for reference purposes. [These records will be used as a tool for attracting businesses to Illinois and for lobbying Congress on redevelopment issues. The Department of Revenue (bow) administers the sales tax increment program. DOR has stringent requirements which the city must meet and document in order to receive sales tax increments. But |while DOR can withhold sales tax increments if its 70 Public Budgeting & Finance / Spring 1989reporting and bookkeeping requirements are not met, it can do nothing about a TIF conceived or administered contrary to the TIF legislation. Maximizing the tax increments paid to the TIF fund by either using neighboring properties to support TIF activity or by planning changes in the Eav to take advantage of the parcel method is easy to accomplish for three reasons. First, the redevelopment plan of action can lawfully be extremely vague. Thus, affected parties don’t even know how they will be affected or if they will be affected. Second, TIF funds can be spent outside of the TIF district as long as they benefit the TIE Almost anyone, especially those in or abutting a TIF district, can be directly harmed without foreknowledge, as long as the action is deemed beneficial for the TIF. Third, as discussed earlier, there are only limited ways a TIF can be stopped or altered. Examples of the lack of checks and balances and the state’s impotence are the many questionable” TIF districts created in late 1986 in order to meet the | January 1987 qualifying deadline for state sales tax increments. The abuse of TIF was so flagrant that ithe Taxpayers Federation of Illinois issued a highly critical report on TIF” One TIF district the report criticizes is Highland Park’s Skokie Highway TIF district. ‘a corridor 1,000 feet wide and five miles long. Skokie Highway is a major highway in ‘one of the nation’s most affluent and fastest growing areas. There is little doubt that this ‘area would have developed without TIF. Yet, the state did not have the ability to object ‘to or alter the plan. The author is unaware if the school districts objected, but it is \interesting to note that one of the planned improvements is a school administration (building."" | _ CONCLUSIONS ‘The use of TIF was a wise choice from Geneva’ perspective, for the city was able to capture other taxing districts’ income and was able to have a blighted area favorably developed. However, there are serious problems that need to be addressed by state policymakers. These mainly center around ways to prevent abuses of TIF by cities. First, there are definite problems with the state using the parcel method of calculating ‘TIF increments and it is recommended that the state change to the aggregate method. ‘Taxing bodies can be harmed much more easily by the parcel method than by the aggregate method, whether the harm is intentional or not. Additionally, using the aggregate method would eliminate the problem of determining the base Eav, when lexisting parcels are combined or subdivided. | While the county normally calculates the allocation of funds to taxing bodies on the lbasis of individual parcels, they would be able to find some way of allocating funds using the aggregate method. Thus, the ability to simplify the administration of the TIF ‘is a tradeoff: administering the parcel method is easier for the county, while administer- ling the aggregate method is easier for all other parties. The tradeoff is worthwhile (because it would lessen the amount taxing bodies can be harmed. The manner in which homestead exemptions are handled can be changed. Currently, lan increase in the number of exemptions hurts overlapping taxing bodies but does not [Davis / TIE neffect the tax increments. The ducted from the increment rath The issue of a parcel ara The law should be revised to pr Al the same time, it should attem exempt when it is bought by the There should be provisions it bearing large additional costs di jituation should be reversed with the exemptions de- ir than the base Eav. its tax status needs to be comprehensively examined. vent the TIF from receiving a windfall in increments. !pt to lessen the impact of taxable land becoming tax- ity for a worthy redevelopment project. the state law to prevent other taxing bodies from fe to redevelopment, without due compensasion. For instance, school districts should be compensated when new residential developments in the TIF add students to the syste} The state needs to establish 5 added to or dropped from a TIF) council’s approval to make such from adding and dropping parce| possible. The state needs to appoint an guidance from the state on the pI ranging from administering railr property could be addressed by prove very useful, but would savel m. me criteria concerning reasons that a parcel can be istrict. Currently, it is necessary to receive just the city ‘hanges. Provisions should be made to prevent a city Is in order to obtain the highest amount of TIF funds inbiased agency to enforce the TIF legislation. Better ‘oper administrations of TIFs is needed. Many issues ad property to handling changes in the taxability of the state. A guidebook of some sort would not only considerable legal costs. One difficult-to-resolve problem with TIFs is the dependency on large developers. It is difficult for a TIF to have an it order to have a good flow of reven| development is necessary. Several| be on-line before an area is desig) and public view, encouraging bac! ate bricks-and-mortar projects wl nor resolve the fundamental prob] The second aspect of this depen on one development for the vast itself in very serious financial p hot uncommon among developer: late with their tax payment. If tht Payment could force the city to d TIFs as administered in Illinois profit, at the expense of affect pact unless it has at least one large development. In i¢ throughout the life of the TIF district, a large initial sources even recommended that a large development jated a TIF? This takes TIF out of the marketplace room deals. This dependency can lead to inappropri- ich do not respect the integrity of the neighborhood lems which created the blighted condition. idency is that the TIF district can become dependent jajority of its tax income. A TIF district could find lems if the developer goes bankrupt. Bankruptcy is . It would also not be surprising for a developer to be re is no float in time or money, a large delinquent fault on a bond payment. present major problems in accountability, Their cost taxing bodies, simply due to normal growth and effectiveness can be difficult to rain In many cases it is possible for TIF districts to inflation. A TIF can be an extre1 development; it can also provide warning or recourse. In conclusiar| ment if it is to reach its full potent In the summer of 1988, Illinois re} tion focused on two issues. The n iely just and equitable way of financing optimum benefits to some at the expense of others with little , TIF is a valuable financing tool which needs refine- ial. POSTSCRIPT ‘ised the Tax Increment Financing Act. The legisla- ie of unqualified areas being established as TIF | Public Budgeting & Finance / Spring 1989 |istricts was addressed by mandatory review of TIF districts which are too large or grew 10 fast according to newly created standards. Local residents, local taxing bodies and fate agencies can also request review. If the review finds that an established TIF district Joes not qualify as a TIF district, deficiencies must be corrected or the district will be ineligible for future sales tax increments. The district is still eligible for local real roperty tax increments unless local legal action is taken. | The second issue concerned the state's funding of the sales tax increment program. bine standards were set which limit the amount of state sales tax increments a junicipality could receive. One standard was that during initial allocations, a munici- lity could capture no more than eighty percent of the first $100,000 in sales tax increments, sixty percent of the increments in excess of $100,000 but not exceeding 500,000, and forty percent of increments in excess of $500,000. Additional standards ere concerned with guaranteeing bond payments. The state does warn that all alloca- thons of state sales tax increments are subject to legislative appropriation. | NOTES |I. William Fulton. “HUD at 20 Faces a Midlife Crisis,” Planning, American Planning Association (Nov. 1985): 56. 2. Equalized assessed valuation for real property is determined by the township assessor. It is to be | one-third of market value with the exception of Cook County. Cook County also does not assess | property at its full market value, but the percentages vary according to use. The state and county use multipliers in order to equalize assessments in different jurisdictions. . “Real Property Tax Increment Allocation Redevelopment Act.” Illinois Revised Statutes, 1977, Ch. 24, Sec. 11-74, 4-1 through 4-11 |. Ibid. Ibid. Mlinois Department of Commerce and Community Affairs, Office of Urban Assistance, Tax Incre- ‘ment Financing: Illinois Case Studies (Feb. 1986). Mlinois Department of Commerce and Community Affairs, Office of Urban Assistance, Tax Incre- ‘ment Financing (Sept. 1986). 10. “Real Property Tax Increment Allocation Redevelopment Act.” Illinois Revised Statutes, 1977. Ch. 24, Sec. 11-74, 4-1 through 4-11 Ibid. 1). Kent Redfield. Tax Increment Financing: Legislative Issue (Taxpayer Federation of Ilinois, 1988). IjL. Illinois Department of Commerce and Community Affairs, Office of Urban Assistance, Illinois Sales & Property Tax Increment Districts (Oct. 1987), 40. P. linois Department of Commerce and Community Affairs, Office of Urban Assistance, Tax Increment Financing (Sept. 1986), 9. 13