===== PDF PAGE 3 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO FINANCE COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: 4 A. Termination of Downtown TIF FILE NUMBER: Ord. No. 21-0-0023 COMMITTEE AGENDA DATE: Sept. 23, 2021 COUNCIL AGENDA DATE: October 20, 2021 STAFF REVIEW: Tom Dabareiner AICP sionaTure_(A APPROVED BY CITY ADMINISTRATOR: Michael Guttman SIGNATURE, ITEM SUMMARY: On May 21, 1990, the City of West Chicago established a certain Redevelopment Plan and Project Ar- ea commonly known as the “Downtown Redevelopment Project Area and Tax Increment Financing”. For reference, this was accomplished through Ordinance Nos. 90-O-2273, 90-O-2274 and 90-O-2275, in conformance with the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq., with a life ending May 21, 2013. The Illinois legislature subsequently amended the TIF Act to author- ize the City to extend the life of the Downtown TIF to 2025. Through Ordinance Nos. 13-O-0013 and 13-0-0034, the TIF was ultimately extended to December 31, 2025. To further the progress in the downtown, a new TIF is proposed. It will help the City take advantage of the increment gained through the apartments and townhouses planned for the Downtown. The incre- ment will be used to cover certain infrastructure costs and provide incentives to cover financial gaps to the developers who are planning to start work in the near future. Before the new TIF can start, the ex- isting TIF must be terminated—known colloquially as the De-TIF. The attached Ordinance will terminate the existing Redevelopment Plan, Project Area and TIF, effec- tive December 31, 2021. It allows for the immediate subsequent start of the new TIF, known as the Re- TIF. Such action must be taken prior to November 1* to allow the other taxing bodies to consider the surplus funds available for their own tax levies. The De-TIF / Re-TIF process is a commonly used tool when major projects are about to start and add new increment. Again, the first step is to De-TIF and terminate the existing Downtown TIF. ACTIONS PROPOSED: Consideration of the referenced Ordinance to terminate the current Downtown TIF in preparation for a new Downtown TIF. COMMITTEE ACTION: Finance Committee members voted unanimously in favor of termination of the Downtown TIF. ===== PDF PAGE 4 ===== [Extraction: embedded PDF text] ORDINANCE NO. 21-O-0023 AN ORDINANCE TERMINATING THE DESIGNATION OF THE WEST CHICAGO DOWNTOWN TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA AND DISSOLVING THE WEST CHICAGO DOWNTOWN SPECIAL TAX INCREMENT ALLOCATION FUND WHEREAS, the City of West Chicago (“City”) is a home rule unit under Section 6(a) of Article VII of the Illinois Constitution of 1970 and subject to said Section, a home rule unit may exercise any power and perform and function pertaining to its government and affairs for the protection of the public health, safety, morals and welfare; and WHEREAS, the Mayor and City Council of the City did, on May 21, 1990, adopt Ordinances 2273, 2274 and 2275, designating a redevelopment project area, approving a redevelopment plan and project, and adopting tax increment financing, respectively, for the West Chicago Downtown TIF District redevelopment project (“TIF District”), which Ordinances were subsequently amended by Ordinance 13-O-0031, adopted May 21, 2013, and by Ordinance 13-O-0034, adopted October 7, 2013; and WHEREAS, notwithstanding the proposed thirty-five (35) year life of the TIF District, pursuant to 65 ILCS 5/11-74.4-8, the City intends to dissolve the special tax allocation fund for the TIF District (“TIF District Special Tax Allocation Fund”), terminate the designation of the TIF District redevelopment project area, and terminate the use of tax increment financing for the TIF District redevelopment project area effective December 31, 2021; NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the City of West Chicago, DuPage County, Illinois, as follows: 21-O-0023 1 ===== PDF PAGE 5 ===== [Extraction: embedded PDF text] Section 1: Recitals. Each Whereas statement set forth in the preambles of this Ordinance is incorporated into this Ordinance as material provisions hereof. SECTION 2: Termination. That effective December 31, 2021, the City hereby terminates the TIF District redevelopment project area. SECTION 3: Dissolution of Fund. That the City hereby dissolves the TIF District Special Tax Allocation Fund, into which the incremental real estate taxes for the TIF District redevelopment project area have been paid, after receipt of the 2020 real estate tax increment paid in 2021, effective December 31, 2021, subject to the transfer of sufficient TIF incremental revenues from the TIF District Special Tax Allocation Fund to other funds of the City, prior to said dissolution, as needed to pay for tax increment financing eligible costs incurred for work performed, and obligations otherwise incurred, during 2021, but not billed as of December 31, 2021. Any monies remaining in the TIF District Special Tax Allocation Fund at its dissolution are hereby designated surplus, and shall be paid to the DuPage County Collector / Treasurer for payment to the taxing districts impacted by the TIF District redevelopment project area, in the same manner and proportion as the most recent distribution by the DuPage County Collector / Treasurer to those taxing districts of real property taxes from real property in the TIF District redevelopment project area, all in accordance with 65 ILCS 5/11-74.4-8. SECTION 4: Surplus. That in the event that additional incremental real estate taxes attributable to the TIF District redevelopment project area shall be received by the City from late payment of real estate taxes or any other reason, after the dissolution of the TIF District Special Tax Allocation Fund, such monies shall be segregated by the City, 21-O-0023 2 ===== PDF PAGE 6 ===== [Extraction: embedded PDF text] declared surplus funds, and sent to the DuPage County Collector / Treasurer for distribution in the same manner as provided for in Section 3, above. SECTION 5: Rates of Taxing Districts. That after the termination of the TIF District redevelopment project area, the rates of the taxing districts shall be extended and taxes levied, collected and distributed in the manner applicable in the absence of the adoption of tax increment financing. SECTION 6: Notice. That, pursuant to 65 ILCS 5/11-74.4-8, a certified copy of this Ordinance shall be forwarded, by the City Clerk, to each taxing district impacted by the TIF District, and certified copies of this Ordinance shall also be forwarded, by the City Clerk, to the DuPage County Clerk, and to the DuPage County Collector / Treasurer, all prior to November 1, 2021. SECTION 7: Severability. That if any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity thereof shall not affect the other provisions of this Ordinance. SECTION 8: Conflicts. That all ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 9: Effectiveness. That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form as provided by law. [THIS SPACE INTENTIONALLY LEFT BLANK] 21-O-0023 3 ===== PDF PAGE 7 ===== [Extraction: embedded PDF text] ADOPTED this ___ day of _________, 2021, pursuant to a roll call vote as follows: Alderman J. Beifuss ______ Alderman L. Chassee ______ Alderman J. Sheahan ______ Alderman H. Brown ______ Alderman A. Hallett ______ Alderman C. Dettmann ______ Alderman M. Ferguson ______ Alderman S. Dimas ______ Alderman C. Swiatek ______ Alderman M. Garling ______ Alderman R. Stout ______ Alderman J. Short ______ Alderman J. Morano ______ Alderman J. Jakabcsin ______ APPROVED by me this ___ day of _________, 2021. ____________________________________ Ruben Pineda, City Mayor (SEAL) ATTEST: ________________________________ Nancy Smith, City Clerk 21-O-0023 4