TIF districts are a tool often used by municipalities to support economic development goals in a community, such as the desire for development or redevelopment. By establishing TIF districts, municipalities seek to attract new businesses or retain current businesses, increase property values, redevelop blighted areas, create jobs, and/or expand the local tax base. In order to accomplish these economic development goals, TIF districts set aside specific property taxes from TIF district properties for a period of 23 years.
The St. Charles Rd. Corridor Tax Increment Finance (TIF) District was created in 2000. Since then, the effects of the poor economy have resulted in a significant reduction of the Equalized Assessed Value (EAV) in the district. The EAV is not likely to recover before the 2023 term of the district expires. The Village was able to fund improvements within the district through the increment that was generated annually. With the reduction of the EAV, the increment to fund future projects was greatly reduced.
In order to fund future property projects with the TIF district, the Village of Berkeley has opted to re-establish the TIF district with boundaries expanded to include manufacturing properties along McDermott Drive and Morris Avenue. The McDermott/St. Charles TIF 2 district will now support the TIF Assistance Program for the same area. The program provides financial support to eligible property owners and businesses within the TIF district for improvements to the interior and/or exterior of their buildings. The goal is to ensure that all eligible property owners and businesses have an equal opportunity to access such support, while allowing for public funds to be invested for the public good and expenditures to be documented for accountability.
Through the TIF Assistance Program, the Village is please to report that they have provided funding for the following property improvements:
|Berkeley Plaza Laundromat
||5555 St. Charles Road
||5746 St. Charles Road
||5525 St. Charles Road
The TIF Assistance Program seeks to fulfill the following purposes of the TIF Area Redevelopment Plan and Program:
- Eradicating blighting conditions and instituting conservation measures.
- Removing and alleviating adverse conditions by encouraging private investment of underutilized and vacant properties which will strengthen the economy, tax base, business environment, and living environment.
- Improving existing public utilities within the area.
- Enhancing the overall quality of the business environment in the Village of Berkeley.
The Village of Berkeley will allocate funds from the TIF Fund per tax cycle; a one-time per cycle reimbursement is available to owners of commercial properties and businesses. The grant reimburses up to 50% of the project costs to a limit set by the Village Board of Trustees. Please note that all proposed property improvements are subject to strict review by the Village Board of Trustees.
TIF Assistance Program applications will be reviewed in the order they are received and must meet the criteria requested for consideration. Reimbursement will be subject to available funding and to the applicant’s successful completion of the program’s requirements.
Program Goals (Must meet two of these goals to qualify)
The TIF Assistance Program seeks to ensure that all eligible owners and businesses have an equal opportunity to access support while also allowing for public funds to be invested for the public good. The program goals are as follows:
- Attract, retain, or expand businesses.
- Attract and retain family-supporting jobs.
- Enhance the physical environment along the St. Charles Corridor.
- Increase the Village’s tax base by facilitating development of underutilized properties.
- Support Village planning initiatives by advancing catalytic projects identified in Village plans.
- Provide for the development of public amenities or infrastructure.
- Encourage development projects that enhance the streetscape and pedestrian experience and improve the vitality of commercial districts by adding interest and activity on the first floor of mixed-use buildings and parking facilities.
For a copy of the Village of Berkeley's Tax Increment Financing policy and application, please click on the links below, visit Village Hall, or call 708-449-8840.