The City of Springfield has designated eight defined areas of the city as Tax Increment Financing Districts. The TIF districts were established in order to attract private developers to blighted areas that were in need of redevelopment. Tax Increment Financing works by using increased tax revenues of a redevelopment area to fund improvements and incentives for rehabilitation. TIF induces development where it would not otherwise take place, which in turn creates employment opportunities and generates additional local and state tax revenue. This additional tax revenue is used to pay for improvements and incentives in the TIF district.

The following local areas have been designated by the City Council to be TIF Districts and have benefited in varying degrees, from roadway access, demolition of old buildings, streetscape, site preparation, public utilities, lighting, infrastructure rebates, and building rehabilitation.

• Central Area (Downtown) TIF (December 1981) - The oldest most successful TIF in Springfield provides several rehabilitation and business attraction programs for property owners and local businesses.  All Central Area programs are contingent upon available funds and are only available to properties and businesses located within the TIF area.

• Fiat Allis Complex (Park South) TIF (November 1989) - Site preparation, infrastructure assistance, and demolition of obsolete industrial complex has paved the way for new commercial, professional and office/retail development.

• Near North Crossing TIF (August 1994) - Site Preparation and infrastructure improvements has assisted in the redevelopment of 3.08 acre commercial complex.

• Springfield Far East TIF (February 1995) - Infrastructure assistance was used to encourage redevelopment of housing, retail, and commercial properties.

• Enos Park- Neighborhood TIF (December 1997) - Rehabilitation assistance within this primarily residential TIF has focused on the redevelopment of single-family and and some light commercial properties.

• S. H. A. (Madison Park Place) TIF (February 1999) - Infrastructure assistance and site preparation has redeveloped this former public housing development into a viable mixed density residential neighborhood with some commercial development.

• Northeast TIF (December 2003) - Infrastructure assistance will develop this area into a viable commercial and retail complex.

• Jefferson Crossing TIF (September 2007) - Infrastructure assistance will develop this area into a viable commercial and retail complex.

Building Rehabilitation Loans

This program was designed to encourage property owners to restore and repair properties located within the Central Area TIF District.  The City will review three conditions to confirm the applicant's need for assistance.  These conditions include a financing gap (or lack of available funds), return on investment and locational gap (comparison of cost factors due to location).  The City will participate in the project up to a maximum of 50% of the total rehabilitation cost.  Depending on the need and location (high priority area - Phase II), the City's participation can be in the form of a loan, grant or a combination of both.  The City will usually subordinate its lien position to the primary lender.  Building rehabilitation loans can be amortized up to 15 years and can have an interest rate between 0% and 5% (at the discretion of OPED) but all loans must be paid in full by December 1, 2016.  Owners/contractors must adhere to strict prevailing wage requirements and must disclose this fact on all construction related contracts.

Lease Payment Assistance

The Lease Payment Assistance offers a reimbursement of one half of the first 12 months' lease payments to encourage new retail businesses and restaurants in the downtown area. The merchant must derive 51% or more of its income from retail sales and be in operation for a minimum of one year. This assistance can be applied for only once per new business and application must be made no later than three months from the date of opening.

Downtown Facade Improvements

Buildings located in the Downtown T.I.F. District are eligible to apply for financial assistance to repair and restore the visible exteriors of their buildings. The purchase of the front or side street exposures will generally be $2,000 per running foot, up to a maximum of $40,000 per facade, or 75% of the project, whichever is less. All plans are subject to review by the Historic Sites Commission to remain consistent with the historic nature of the area.

Downtown Residential Assistance Program

The Residential Assistance Program has been established to encourage the development of additional residential units to enhance the downtown area. Assistance can include architectural consultation, a loan for up to $35,000 at 3% fixed interest, or a one-time per unit rebate of six months' rent or $3,000, after the tenant has signed a one-year lease.

Architectural Assistance Program

This program was designed to assist property owners and developers in determining the feasibility of residential development of a project located within the Central Area TIF District. A $2,000 maximum reimbursement is allowed for architectural related expenses.

Downtown Accessibility Elevator Assistance Program

The elevator assistance program assists in making the upper floors of downtown buildings more accessible to persons with disabilities. Assistance will be available to equip or replace elevators in buildings that do not comply with the provisions of the Americans With Disabilities Act. A grant of up to $30,000 for 50% of elevator and associated construction and installation costs is available.

For more information on any of these programs, please contact Bissi DiCenso at 217-789-2377 or e-mail at bissi.dicenso@cwlp.com.