TIF Districts Still Important to Effingham

Tax Increment Financing districts have been used as an economic development tool in Effingham since 1986.

The districts are in place to capture the increase in tax revenue and use the funds to undertake development projects.

Meetings are held annually to review what's happening in the districts. The review boards are made up of representatives of the taxing bodies affected by the TIF districts, since the districts use tax revenues that would otherwise go to those bodies.

The South-Central Industrial TIF District includes the city business park and some adjoining properties. Projects in the district include new construction or expansion of DJ's Party Supply, Effingham Railroad Company, Effingham Storage Solutions, Brandt Investments, and Village Square Mall. Infrastructure projects involving watermain extensions and sidewalk construction were also undertaken during the previous year.

Unit 40 Superintendent Andrew Johnson and Lake Land College Trustee Doris Reynolds were elected Chairman and Vice-Chairman of the District Review Board. Michael Janis is the public member of the Board.

The original TIF district in Effingham...the TIF #1 District...has completed its last year on the books. Effingham Park Board Chairman Russ Sehy and Effingham Mayor Mike Schutzbach were elected as Chairman and Vice-Chairman of that Review Board, with Alex Steppe serving as the public member.

Improvement projects undertaken in the district in the past year were seen at Roy Schmidt Motors Holdings, a shed for the Water Treatment Plant, a transfer to Heartland Towing, and a transfer of $500,000 to the South Central Industrial TIF District. Infrastructure improvements included $224,000 in work at the Water Treatment Plant, close to $20,000 in work on the Maple Street sanitary sewer, and work on the bike lane and trail head project valued at $849,000.

The Central Area TIF District covers the downtown Effingham area. Reynolds was chosen chairman, while Douglas Township trustee Joann Jansen was chosen vice-chairman. Steppe is the public member.

Economic development projects in the district over the previous year included Bike and Hike, WBMT Partners, and the Chandra Niemerg property, while another half-million dollars in infrastructure projects were undertaken.

The other TIF District is the Outer Belt West district, and was established to finance construction of that street. Schutzbach and Reynolds were elected chairman and vice-chairman, respectively. Janis was chosen as the public member.

The projects included just under $300,000 in pavement replacement and close to $300,000 more in water main construction.

This district might also be nearing its end since the street construction has been completed.