The Village Board of St. Joseph will review minutes of the April 29 Special Board meeting about the development of a TIF District on May 13. The board minutes are on the consent agenda.
A TIF district is a tool used by municipalities to redevelop areas that are considered blighted or in need of conservation. Under the TIF mechanism, property tax revenues generated by increases in assessed property values within the district, known as the “increment,” are set aside in a special fund. These funds are then used to finance redevelopment projects, infrastructure improvements, and other eligible costs within the district, rather than being distributed to all taxing bodies as usual.
To address concerns from other taxing bodies, the Village Board approved agreements with St. Joseph Community Consolidated School District No. 169, Prairieview-Ogden Community Consolidated School District No. 305, the St. Joseph-Stanton Fire Protection District, and St. Joseph Township (including the library). These agreements outline how the TIF will interact with each entity and provide a framework for cooperation. School districts have 60 days to approve the agreements, and the Village indicated that the terms offered are final.
Those agreements include:
Property tax returns: The Village of St. Joseph will annually declare 100% of the property tax increment from “natural growth” on 489 pre-existing single-family homes and 6 agricultural parcels within the TIF District as surplus, returning these funds to all taxing bodies, including the school districts.
For all other properties in the TIF District, the Village will pay the school districts 22% of the gross property tax increment each year to reimburse capital costs and support job training, vocational, and career education programs.
Certain parcels-such as those listed as “Targeted Parcels,” redeveloped agricultural parcels, and non-single-family parcels under redevelopment agreements-will only generate a 12% reimbursement of the increment for the school districts during the term of such agreements.
The Village will reimburse the Fire District and Township up to 1% of the TIF increment from other properties each year for capital costs and job training/education programs, plus an additional 1% specifically for library-related capital and job training costs. The Township must certify annually that these funds are used for eligible purposes and provide audits; the Village may withhold or delay payments if there are legal challenges or appeals affecting TIF funds.
In exchange for these payments, the taxing bodies waive any right to challenge or object to the creation or administration of the TIF district and agree to support the Village’s TIF efforts.
The TIF agreement remains in effect for the full 23-year life of the TIF district (or until earlier dissolution), is binding on successors, and includes standard provisions for amendment, reporting, and enforcement under Illinois law.
Details of the St. Joseph TIF District
- Size and Location: The new TIF district covers approximately 562 acres within the village, encompassing parts of Sections 11, 12, 13, 14, and 15 in Township 19 North, Range 10 East of the Third Principal Meridian, Champaign County. The legal description and a boundary map are included in the ordinances.
- Redevelopment Plan: The plan identifies the area as a combination of “Blighted” and “Conservation” areas under Illinois law. The Village Board determined that the area has not attracted sufficient private investment and would not be reasonably expected to develop without TIF assistance.
- Project Goals: The redevelopment plan aims to increase population, employment opportunities, and overall quality of life in St. Joseph. It also seeks to enhance the local tax base over time, benefiting all taxing districts in the long term.
- Duration: The TIF district is set to operate for up to 23 years, with all obligations to be retired no later than 20 years after they are incurred or by the end of the district, whichever comes first.
