TIF Districts

Evanston TIF Districts

The City of Evanston uses Tax Increment Financing (TIF) to stimulate private investment and fund critical infrastructure improvements, workforce development, and property revitalization within designated redevelopment areas. Evanston currently operates five active TIF districts: TIF #5 (Howard and Ridge), TIF #6 (West Evanston), TIF #7 (Dempster Dodge), TIF #8 (Chicago Main), and TIF #9 (Five-Fifths).

Jump to City of Evanston Active TIFs Map, Plans, and Ordinances
Jump to City of Evanston TIF Annual Reports


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What is Tax Increment Financing (TIF)?

Tax Increment Financing (TIF) is a value-capture economic development tool authorized by the State of Illinois to assist municipalities in stimulating private investment and revitalizing blighted, conservation, or industrial areas that would not otherwise experience development.

When the City Council adopts a TIF district:

1. The Base is Frozen: The county assessor determines the current total Equalized Assessed Value (EAV) of all properties in the district. Property tax revenues generated by this initial "base EAV" continue to be distributed to all overlapping taxing bodies (school districts, park districts, Cook County, etc.) as usual.

2. The Increment is Captured: As public and private improvements take place over time, property values increase above the base EAV. The new property tax revenue generated by this increase—the "tax increment"—is captured and placed into a specialized TIF fund.

3. Reinvestment: The captured incremental funds are reinvested directly back into the same district to pay for qualifying public infrastructure and redevelopment costs.

Under Illinois law, TIF districts have a standard lifespan of up to 23 years from their adoption date, though they may be extended up to 35 years through state legislative approval. Once a TIF district expires, the full property value is restored to the regular tax rolls, providing increased ongoing revenue to all overlapping taxing bodies.

Eligible Projects and Requesting TIF Funding

Tax Increment Financing (TIF) is a specialized public financing tool rather than a standard municipal grant program. Funding is evaluated on a project-by-project basis.Under Illinois statutory guidelines, captured TIF funds cannot be used for general municipal operating expenses. Funds are strictly limited to redevelopment project costs within or directly benefiting the TIF district.

Eligible expenses include:

• Property Acquisition & Site Preparation: Land assembly, demolition of existing structures, site clearing, grading, and environmental remediation.

• Public Infrastructure & Works: Construction, reconstruction, or rehabilitation of public streets, utilities, water and sewer systems, public parks, pedestrian walkways, and municipal parking facilities.

• Building Rehabilitation & Retrofitting: Facade improvements, accessibility upgrades, and structural rehabilitation of existing public or private buildings.

• Professional & Technical Services: Fees for architectural, engineering, environmental, legal, financial, and urban planning services related to the redevelopment project.

• Workforce Development & Training: Vocational education, job training, and retraining programs for local residents and businesses located within the redevelopment area.

• Financing & Interest Costs: Reimbursing a private developer for a portion of interest costs incurred during the construction or rehabilitation of a project (statutorily capped at up to 30% of annual interest costs).

• Taxing District Impact Fees: Reimbursing local school and library districts for increased operational costs directly resulting from new residential developments within the TIF district.

• Administrative Costs: Reasonable charges incurred by the municipality for the day-to-day administration, professional management, and mandatory statutory reporting of the TIF district.

To inquire about funding for a proposed project: 

• Contact Staff: Reach out to the Economic Development Division with details about your proposal at economicdevelopment@cityofevanston.org or 847.448.4311 and ask to speak with the Economic Development Manager

• Preliminary Review: City staff will review your request to ensure the project falls within an active district and meets Illinois statutory eligibility requirements

• Submit an Application: If your project qualifies for consideration, staff will provide you with a link to complete the formal TIF Application.

Annual TIF Reports*

State of Illinois Tax Increment Allocation Redevelopment Act

All Tax Increment Financing districts in Evanston are established and governed in strict accordance with Illinois state law.

The primary statutory framework is the Illinois Tax Increment Allocation Redevelopment Act, codified in the Illinois Compiled Statutes at 65 ILCS 5/Art. 11 Div. 74.4. This legislation defines qualifying blighted and conservation criteria, establishes public notice and hearing procedures, mandates annual financial reporting, and outlines the composition and duties of local Joint Review Boards.

For full text and statutory requirements, refer to the Illinois Compiled Statutes: Tax Increment Allocation Redevelopment Act.

Joint Review Board

A Joint Review Board (JRB) is initially established when a new Tax Increment Financing District (TIF) is under consideration and makes a recommendation to the City Council. The JRB is composed of members representing certain taxing districts which are affected by the TIF. The Joint Review Board meets annually to discuss the annual report filed with the State of Illinois on each of the TIF Districts within the city.

In order to learn more about the JRB and view previous meeting agendas and minutes please click on Joint Review Board.

Interested Parties Registry

Additional TIF Resources

For additional information on Tax Increment Financing, please visit:

• Cook County Clerk
• Illinois Department of Commerce & Economic Opportunity
• State of Illinois Comptroller
• The Illinois Tax Increment Association
• City of Evanston TIF Page on the Open Data Portal
• Northwestern University Kellogg  School of Management TIF Analysis Report PDF December 11, 2012
  • Kellogg TIF Analysis City Council Presentation Video 
  • Kellogg TIF Analysis  PowerPoint 

• Expired TIF Districts: 

  1. 1. Downtown TIF  (Map TIF 1)  
     2. Southwest  (Map TIF 2)  (Ordinances)  (Redevelopment  Plan) 
     3. Howard and Hartrey  (Map TIF 3)  (Ordinances)  (Redevelopment Plan) 
     4. Washington National  (Map TIF 4)  (Ordinances)  (Redevelopment Plan)

Stay Connected

• Visit: City of Evanston’s Economic Development website

• Subscribe: Economic Development e-newsletter

• Contact Staff: Paul Zalmezak, Economic Development Manager | Phone: 847.448.8013 | Email: pzalmezak@cityofevanston.org