Letter: TIF proposal not realistic

I read with great interest the March 27 article "Lawmakers debate TIF changes" about a bill being considered in the state legislature to alter TIF rules. As a developer in the Chicago area for over 30 years, my company has established TIF districts in several suburban municipalities for development projects. Those projects and others involve the development of blighted property that would not otherwise be turned into a productive use. This requires a significant amount of money to be invested by the developer in site remediation and infrastructure necessary to create a business park or multi-use development. The investment is substantial and the return is not guaranteed unless the project is successfully developed and tax increment is generated to reimburse those costs paid by the developer.

The notion that the duration of a TIF should be shortened from 23 years to 10 years is preposterous. It shows a complete lack of basic financial understanding by the representatives promoting the bill. Ten years is not nearly long enough to recoup such a large investment in long-term assets, whether it is part of a TIF district or any other scenario. Had that rule been in place for the TIF districts that we established, none of the projects would have happened.

Dean Kelley

St. Charles