How is a TIF District Created?
The TIF authority takes the first step in creating a TIF district by adopting a TIF plan for the district. The TIF plan provides information about the project to be funded with tax increment from the TIF district and authorizes the use of tax increment from the district to pay TIF-eligible project costs. To create a new TIF district, the TIF authority must obtain approval of the TIF plan for the district from the governing body of the municipality in which the TIF district is located after the municipality has published a notice and held a public hearing. For example, if a city’s port authority proposes to create a TIF district in the city, the city council must approve the TIF plan for the district. If a county’s housing and redevelopment authority proposes to create a TIF district in a township in the county, the county board must approve the TIF plan. In many cases, the commissioners of the TIF authority include some or all of the council members. Before a TIF district is created, t
