Village of New Berlin - General Information



  Stephen R. Frank, Mayor

Phone: 217-488-6312
E-mail: village@newberlin.il.us

Tax Increment Finance (TIF) District

In 1998, a 23 year Tax Increment Finance (TIF) District was created to assist in attracting new investment and redevelopment in the community.

Tax Increment Financing (TIF) is the one of the few tools Illinois communities can use to encourage development, prevent blight and at the same time increase employment, population and assessed valuation in their community. With an increased tax base, the Village will be able to improve and extend of public utilities, streets, and other public infrastructure as well as offer developers incentives to develop in the Village of New Berlin. The Village of New Berlin will grow and development will occur due to economic incentives offered through TIF. The result will be an increased tax base not only for the Village, but eventually for every other taxing district which levies within the Redevelopment Area.

HOW CAN TIF HELP NEW BERLIN?

· Attract new investment into the Community (Industrial, Commercial and Residential)

· Assist Both Existing and New Businesses

· Encourage Downtown Redevelopment

· Reuse and Occupy Empty Buildings

· Increase Retail Sales

· Increase Population Gradually

· Increase Equalized Assessed Valuation of Targeted Areas

· Expand and Diversify Local Employment

· Rehabilitate Existing Storm, Sanitary and Water Lines

· Improve Streets, Sidewalks and Curbs

· Quality of Life of New Berlin

COMMON QUESTIONS

What is Tax Increment Financing (TIF)?

TIF is a local economic development program available to Cities, Villages and Towns. TIF was created by the Illinois Legislature and approved by the Illinois Supreme Court as a tool to assist municipalities to prevent deterioration of public and private property and to make public improvements, as well as to encourage development of private property. Today, more than 40 states have adopted similar statutes to promote and assist economic development.

Will TIF raise my property taxes?

NO. TIF itself will not raise your property taxes. Only an increased assessment or an overall increase in tax rates can raise your taxes. TIF is used to help fund new development in the Village by dedicating a portion of the increased real estate taxes generated from the TIF District. In this District funds may be used to reimburse Developers for certain investments they make. The Village may also use funds for public improvements in the Village such as a sewage treatment plan, sewer and water lines, street lights, sidewalks, parks and streets.

Is TIF a new tax or taxing district?

NO. TIF is not a new tax or a new taxing district.

ELIGIBLE REDEVELOPMENT PROJECT COSTS

· Property Assembly Costs
(Land Acquisition, Demolition, Site Preparation)

· Rehabilitation, Reconstruction or Remodeling of Existing Buildings; Fixtures, and leasehold improvements.

· Public Works Improvements
(Water, Storm Sewer, Sanitary Sewer, Sidewalks and others)

· Job Training and Retaining; and Welfare to Work Programs
· Financing Costs; Construction Interest (100% up to 36 months)
· Long Term Interest Rate Buy-down

· Professional Fees
(Planning, Legal, Architectural, Engineering and Financial)

· Marketing

· Taxing District's Capital Costs (by written agreement)

· Relocation Costs

· Affordable Housing Costs of New Construction
(50% of Costs of Construction)

For more information about our TIF District, please contact us at the Village Hall during regular business hours. Or, please contact our TIF Administrator:

Thomas N. Jacob & Associates
The Economic Development Group, LTD.
1701 Clearwater Avenue
Bloomington, IL 61704
Telephone: (309) 664-7777
Facsimile: (309) 664-7878
www.tomjacob.com

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