Sycamore Assistant City Manager Maggie Peck gave an upbeat overview of the city’s successful implementation of a Tax Increment Finance District (TIF) and their hopes for a second example with a recently approved new TIF. A TIF establishes a base tax value for a defined area targeted for upgrades with any value-added revenue coming from those improvements going into a special fund. This fund is then used to pay for things like infrastructure enhancements, environmental cleanups, and building renovations. TIF’s are highly regulated and require an agreement from all taxing bodies such as the school district, community college district, library district, township, and county.
Peck explained that the city’s first TIF was for the near downtown area dominated by the former factory that now includes Blumen Gardens where Rotary meets. Established in 2000, the TIF allowed for extensive environmental cleanup of the factory site, a unique parking lot expansion and improvement for the AutoMeter Company and the city, and restoration of the former downtown train depot to become the home of the DeKalb County Community Foundation. The city invested almost $463,000 in money from the TIF in these improvements along with other community development funds. Although a TIF is certified for 23 years and can even be renewed, Sycamore elected to close their TIF almost three years early and turn their attention to another area for improvement.
The city’s new TIF encompasses the Sycamore Industrial Park complex (former Anaconda wire factory) and extends east to North Main Street and was created at the end of last year. A study placed taxable value of the area at $2.7 million with a potential value of $9 million after investments during the life of the TIF. Peck praised the cooperation in creating the new TIF by all local taxing bodies. She said the city’s approach to a TIF district recognizes the city’s past, enhances its existing conditions, and looks forward to a bright future. Peck called this the city’s commitment to good governance.