Tax Increment Financing (TIF) is a development tool local governments can utilize to make public improvements and attract new development to an area. TIF Districts offer the opportunity for municipalities to attract private development and new businesses to areas that have not experienced the level of growth or development expected by the municipality while utilizing local resources that do not depend upon an increase in taxes or the reduction of other services. This investment, both public and private, means more revenue to help a community meet its other needs.
The Village of Cary has established two TIF Districts: The Cary Route 14 TIF (TIF #1), established in May 1997 and dissolved in 2022, and The Cary Station TIF (TIF #2), established in September 2006. The Village of Cary currently is reviewing the potential implementation of a new third TIF District: The Central Cary TIF (TIF #3).
What is Tax Increment Financing (TIF)?
When a TIF redevelopment project area is created, the value of the property in the area is established as the “base” amount. The property taxes paid on this base amount continue to go to the various taxing bodies as they always had as if the TIF District did not exist. The amount of revenue to the existing taxing bodies would only decline if the base declines or the tax rate goes down. It is the growth of the value of the property over the base that generates the tax increment. This increment is collected into a Special Tax Increment Allocation Fund for the use by the municipality to make additional investments in the TIF project area. This reinvestment generates additional growth in property value, which results in even more revenue growth for reinvestment.
A tax increment is the difference between the amount of property taxes generated by property before a TIF designation and the amount of property tax revenue generated after designation. Establishment of a TIF does not reduce property tax revenues available to overlapping taxing bodies, as the property taxes collected on properties included in the TIF at the time of designation continue to be distributed to them in the same manner as they would if the TIF did not exist. Only the new property taxes generated by the incremental increase in the value of these properties after the TIF is established are available for investment in the TIF.
TIF is the most effective economic development tool available to communities to stimulate private investment in areas that would otherwise not experience new investment. TIF boundaries allow for targeted reinvestment within an area proven to need assistance. Additional information can be found by visiting the Illinois Tax Increment Association website.
Where are Cary's TIF Districts?
- TIF 1 - Route 14 / Jandus Cutoff Road (PDF) (Dissolved in 2021)
- TIF 2 - Downtown (PDF)
- TIF 3 - Central Cary (Proposed) (PDF)
Joint Review Board
Under state law, the municipality must organize and convene a Joint Review Board (JRB) for each Tax Increment Financing District. The JRB consists of representatives of the affected taxing districts, including school districts, county, township, and the Village. A JRB is initially established when a new TIF is under consideration and the JRB makes a recommendation to the Village Board. After the establishment of a TIF District, the JRB meets annually to discuss the annual report filed with the State of Illinois.
Central Cary TIF District (TIF #3)
The Village of Cary is in the process of reviewing the potential implementation of a new third TIF District referred to as the Central Cary TIF District (TIF #3). The Central Cary TIF District consists of an area generally located along the US Route 14 corridor within the original 1893 corporate limits of the Village of Cary, and generally bounded by Cary-Algonquin Road on the West, Silver Lake Road, Park Avenue, Pearl Street, E Main Street, and Spring Beach Way on the North, the Fox River on the East, and Cary Road, Charlotte Place, Krenz Avenue, and Norman Drive on the South. The Central Cary TIF currently contains a mix of commercial, retail, industrial, institutional, and residential buildings across 253 tax parcels. Forty-three (43) percent of the structures within the proposed TIF area are over 100 years old.
The proposed Central Cary TIF District is intended to assist the Village of Cary with the implementation of directives from the Village’s 2015 Comprehensive Plan (PDF) and the 2021 Downtown Cary Strategic Plan (PDF). The Central Cary TIF District will incorporate parcels which were originally part of the expired Route 14 TIF (TIF #1) and existing Cary Station TIF (TIF #2). The Village is anticipating terminating TIF #2 prior to the creation of the new Central Cary TIF District.
Central Cary TIF Related Historical Documents
The following documents have been considered by the Village of Cary related to the implementation of The Central Cary TIF.
- February 15, 2022 – Committee of the Whole
1. Discussion Regarding TIF Districts (PDF)
- March 1, 2022 – Committee of the Whole
- June 7, 2022 – Committee of the Whole
- June 21, 2022 – Village Board
- November 15, 2022 – Village Board
- December 6, 2022 – Committee of the Whole
- December 20, 2022 – Village Board
- March 21, 2023 – Village Board
- April 12, 2023 – Central Cary TIF #3 Public Meeting Documents
- May 2, 2023 - Village Board
- May 16, 2023 - Village Board
- Ordinance Calling for Public Hearing and Joint Review Board Meeting to Consider Designation of a Redevelopment Project Area for the Central Cary Tax Increment Financing District (TIF District #3): 05.16.2023 Ordinance Public Hearing and JRB Meeting (PDF)
- Ordinance Amending Agreement with KMA/Ryan for Completion of a TIF Redevelopment Plan and Preparation of a Housing Impact Study: 05.16.2023 Ordinance KMA Agreement Amendment (PDF)
- June 7, 2023 - Central Cary TIF District (TIF District #3) Joint Review Board Meeting
1. Meeting Notice and Agenda (PDF)
2. Joint Review Board Packet 6.07.2023 (PDF)
3. Joint Review Board Minutes (June 7, 2023) (PDF)
4. YouTube Meeting Video https://youtu.be/jP4vRtEw_wo
- June 27, 2023 - Central Cary TIF District (TIF District #3) Joint Review Board Meeting Continuation
1. Meeting Notice (PDF) and Agenda (PDF)
2. Joint Review Board Minutes (June 27, 2023) (PDF)
3. YouTube Meting Video https://youtu.be/tQNWzC6QG0w
- July 18, 2023 - Central Cary TIF District (TIF District #3) Public Hearing
1. Notice of Public Hearing (PDF)
2. Village Board Agenda Packet (PDF)
3. YouTube Meeting Video https://youtube.com/live/qZfdqv6wp6o?feature=share
4. 07.18.2023 Meeting Presentation
- August 1, 2023 - Cary Station TIF District (TIF District #2) Termination
1. Ordinance Terminating the Designation of the Cary Station Tax Increment Financing District (TIF District #2) (PDF)
- August 15, 2023 - Central Cary TIF District (TIF District #3) Adoption
1. Ordinance Approving the TIF District #3 Redevelopment Project Area Redevelopment Plan and Project (PDF)
2. Ordinance Approving Designating the TIF District #3 Redevelopment Project Area (PDF)
3. Ordinance Adopting Tax Increment Financing for TIF District #3 (PDF)
4. YouTube Meeting Video https://www.youtube.com/watch?v=dmMy6x24Vzo
Frequently Asked Questions
The Village of Cary has compiled a list of questions (PDF) that have been frequently asked regarding the proposed Central Cary TIF District, including how TIF works and the impact the proposed TIF could have on other taxing districts and property owners. This list includes comments that were received during various public meetings concerning the TIF or were fielded directly by Village staff.
TIF Interested Parties Registry
The Village of Cary has established a TIF District Interested Parties Registry. Residents of the Village and organizations active in the Village may register with the Village of Cary to receive information on any proposed designation of a TIF redevelopment project area, or the current designation of the redevelopment project area District, or the approval of a TIF redevelopment plan for the proposed Central Cary TIF (TIF District #3), as well as information regarding certain changes proposed for this TIF District or existing TIF redevelopment plans. Registration forms are available from the Deputy Village Clerk at the Cary Municipal Center.