Children's Memorial will be relocating its hospital to downtown Chicago in 2012. This is creating an exciting opportunity to transform the Triangle and surrounding areas into a dynamic cornerstone of the Lincoln Park neighborhood.

In an effort to maximize the community benefits of the redevelopment, Children's Memorial is exploring whether its six-acre property could qualify as a Tax Increment Financing (TIF) District. The Eligibility Study would allow the City – with community support – to shape goals and objectives for the site before a developer is selected.

TIF also would support funding for significant community improvements. These improvements could include upgrades to Lincoln Elementary public school, workforce housing, open space and green amenities, rehabilitation assistance for existing buildings and funding to promote retail and arts development.

The catalyst for exploring TIF eligibility was the "Children's Memorial Hospital Site Re-Use Feasibility Study" commissioned by Alderman Vi Daley and the City of Chicago Department of Community Development. Based on comprehensive input from Lincoln Park residents, the Re-Use Study identified key community goals that would be difficult to achieve without TIF funding.

[Click to download the Study as a .PDF file - 155 pages]

The 43rd Ward Alderman will continue to be closely involved in planning for the redevelopment and in soliciting residents' input. Lincoln Park community members will have an opportunity to review and consider key findings before the TIF Eligibility Study is completed in the summer. If a TIF District were approved, a public review would be required before City authorization to spend TIF funds.

Below are answers to questions most frequently asked by residents about TIF designation and its potential benefits to the Lincoln Park community.

Frequently Asked Questions

How would a TIF work?

A TIF would not directly increase taxes.

The TIF study area under consideration would use part of the taxes generated by new development on the Children's Memorial site to fund improvements in a designated area. No property taxes are currently generated by the site since Children's Memorial is a not-for-profit institution.

Why is TIF being considered for the area surrounding the hospital site?

TIF is the most powerful financial tool available to support the community's goals for re-use of the site. TIF helps the City work with the community to ensure that private redevelopment of the site will include benefits that are in the best interests of the neighborhood as a whole.

TIF Districts also have the potential to generate revenues for public capital projects that otherwise may not be covered by the taxing bodies' individual budgets.

What areas does the TIF Eligibility Study include?

The area being studied for TIF designation includes: the hospital properties that will be closed, Lincoln Elementary public school to the east of the hospital, the Belden Apartments for the Disabled at Belden Avenue, Halsted Street, and commercial property on Lincoln Avenue north of Fullerton Street.

What kinds of benefits to the community can be built into the TIF Plan?

The TIF Plan would be designed to promote development that responds to the community requirements detailed in the Site Re-Use Study. Key objectives identified by residents include: mixed use development that is affordable to a variety of income levels, design that respects the existing character of the neighborhood, provision of open space and other public amenities, and promotion of sustainability, pedestrian friendly streetscapes and a multi-modal transportation network.

The following are examples of specific improvements that might be funded in the TIF district under consideration.

• Improvements to Lincoln Elementary public school;
• Workforce and/or senior housing;
• Open space and public amenities;
• Funding to promote retail and arts improvement, including the Biograph Theater;
• Rehabilitation assistance for existing buildings;
• Resources to improve Belden Apartments of the Disabled; and,
• Incorporation of environmentally friendly design.

How will eligibility for TIF designation be determined?

The TIF designation process involves four primary components: (1) a TIF Eligibility Study; (2) a Redevelopment Plan; (3) public comment opportunities; and, (4) City approval.

The TIF Eligibility Study will investigate factors including the extent to which infrastructure in the study area is deteriorating or obsolete. The study will be completed in the summer and will include opportunities for community input.

How does TIF affect schools and other taxing bodies?

Taxing bodies – Chicago Public Schools, Chicago Park District and Cook County – are able to collect taxes to meet their budgets. The amount they collect is based on the Equalized Assessed Valuation (EAV) at the time of the TIF district's creation. Taxes generated above a base EAV amount are put into the TIF fund and a portion of these funds are made available for eligible redevelopment activities.

Will the public have an opportunity to provide input on the TIF Plan?

Comprehensive public review is required by the TIF designation process. If an area is found to qualify for TIF designation, a Redevelopment Plan is drafted. The Plan functions as a formal "constitution" for the TIF District and includes goals and objectives for redevelopment, TIF-eligible redevelopment activities, a maximum TIF budget and a future land use map.

Official approval of the Redevelopment Plan and subsequent designation of the TIF District is dependent on community support and review by the 43rd Ward alderman and full City Council.

Will the community have an opportunity to provide input once a TIF District is established?

After a TIF District is established, developers still must apply to the City to have access to TIF funds. These developer requests are subject to requirements for public comment on their specific proposals.