The Illinois Legislature is currently considering SB3151, an Amendment to the TIF Act, which proposes an annual increase to the initial equalized assessed value (EAV) of a Redevelopment Project Area by the annual rate of increase of the Consumer Price Index (CPI).

If the proposed Amendment is adopted, it will result in a higher TIF base and a lower property tax rate, all other factors remaining constant, and may reduce the available tax increment for redevelopment projects.  The following example provides a detailed illustration of this impact:

Example of Proposed SB3151′s Impact on TIF Funds

Alderman Freddrenna Lyle (6^th Ward) introduced a living wage ordinance on April 14^th, 2010 that would require large retailers (those that employ at least 50 employees) benefiting directly or indirectly from City subsidies, including tax increment financing, to pay a “living wage” of at least $11.03 per hour.  The proposed ordinance was introduced the day before the Chicago Plan Commission is scheduled to vote on the Pullman Park project, a 180-acre mixed-use development anchored by the City’s first Wal-Mart supercenter that would also include 850 homes, a hotel, a community recreation center, a park and senior apartments.

A similar ordinance introduced earlier this year was not adopted by the City Council.  Mayor Daley vetoed a big-box minimum-wage ordinance in 2006.