Elk Grove Village refunding $600,000 in TIF funds

Elk Grove Village is refunding $600,000 from a pair of Tax Increment Financing districts to local taxing bodies, officials announced this week.

Over the past 10 years, the village has refunded $3.6 million in TIF funds back to other local governments, officials said.

"Elk Grove Village has always treated Tax Increment Financing as a true investment partnership with our local taxing districts. As part of this partnership, the village endeavors to share early returns with our fellow taxing districts, when possible." Mayor Craig Johnson said.

In a TIF district, increased tax revenues generated by new development within the district's boundaries are diverted to a fund used to pay for improvements within the area. Throughout the 23-year life of the TIF district, other taxing bodies such as schools and park districts continue receiving tax revenues equal only to what they received when the TIF was created, unless the municipality overseeing the district provides refunds.

Officials say funds from the Busse-Elmhurst TIF are being used to reinvest in critical infrastructure, attract competitive businesses and spur development in underutilized property. Proceeds from the Grove Mall TIF fund were most recently committed to a redevelopment agreement that will bring new tenants to occupy the former Dominick's space in the Elk Grove Town Center shopping center.