Tax Increment Financing (TIF) is a financing technique that allows municipalities to carry out redevelopment activities on a local basis. TIF allows a community to capture the increase in various local property taxes that result from a redevelopment project to pay for public and some private costs involved in the project. Available financing costs for public activities include but are not limited to planning, architectural engineering, and other professional services; land acquisition and site clearance; public improvements; and rehabilitation of existing buildings and fixtures. Tax increment proceeds can also be used directly for private business incentives such as interest costs incurred by redevelopers in a redevelopment project, provided that they do not exceed 30% of annual interest cost incurred by TIF project redeveloper. The City of Pinckneyville has prepared a Tax Increment Redevelopment Plan establishing a tax increment financing area. This area consists of approximately 650 acres of property and includes generally the downtown, commercial and residential areas on South Main Street, commercial and residential areas west of downtown and acreage for industrial uses east of downtown.
ENTERPRISE ZONE PROGRAM
The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization at the local level in economically depressed areas of the state through various business incentives such as streamlined permit services, selective tax abatements and tax exemptions, and other incentives. Commercial or industrial firms, which locate or expand in enterprise zones can benefit from a combination of state and local tax incentives, regulatory relief, and improved government services. Enterprise zone benefits are as follows:
- Local property tax abatement of up to 100 percent on property improvements, depending on local ordinances
- Local waivers of portions of fees and regulations concerning zoning, licensing, etc.
- An exemption from the state and local sales tax on building materials incorporated into a structure within the zone (if materials are purchased from retailers in the zone).
- A 0.5 percent investment tax credit on investments made in the zone (which may be carried forward up to 5 years).
- A $500 tax credit for every economically disadvantaged or dislocated worker hired, if more than 5 employees are hired (which may be carried forward up to 5 years).
- An exemption from state income tax on dividends paid by businesses operating in the zone for interest received on loans made to zone businesses.
The City of Pinckneyville in conjunction with the Perry County and other surrounding areas was designated an enterprise zone on July 1, 1991, comprising 11.5 square miles. The zone offers property tax abatement, waiver of fees, and homesteading and shopsteading.
LOCAL REVOLVING LOAN FUNDS
The City of Pinckneyville operates a local revolving loan program to provide financing to local businesses. These funds are locally administered pools of money used to make loans or equity investments. Funds can be used for working capital, land acquisition, building acquisition, rehabilitation or construction, and the purchase of machinery and equipment. As the money is repaid by the borrowers, it is used to make other loans or investments. In this manner, the fund becomes an ongoing or "revolving" financial tool.
STATE ASSISTANCE AVAILABLE THROUGH COMMUNITY DEVELOPMENT ASSISTANCE PROGRAM
The Community Development Assistance Program (CDAP) helps communities meet their economic development, housing, and public infrastructure needs. Direct grants are provided on a competitive statewide basis to eligible applicants for a broad range of projects in the primary categories of public infrastructure, housing, and economic development. To help promote economic development, the CDAP program provides low-interest, subordinated loans to projects that create or retain jobs for low and moderate-income workers. The funds are granted to local governments, which then make loans to businesses, which are repaid to the local government. The maximum loan under the economic development component is $500,000. One job must be created or retained for each $10,000 of program funds utilized. Funds can be used for land and buildings, infrastructure improvements, construction or renovation of facilities, machinery and equipment, and working capital.
FACADE IMPROVEMENT GRANT PROGRAM
The City of Pinckneyville's Façade Improvement Grant Program was created as part of an overall redevelopment program to improve the quality of life for our downtown businesses and visitors. The program is designed to assist property and business owners located in the Pinckneyville Business District in rehabilitating the commercial façades of their properties for the purpose of creating a positive visual impact, stimulating private investment, and complementing other community revitalization efforts.
Participants are eligible to receive a 50/50 matching grant, up to $10,000, for design improvements to commercial properties within the Business District (see attached map) upon the completion of their project. Click here for an Application or they are available from the Economic Development Office at City Hall located at 203 N. Walnut St., Suite C, Pinckneyville, IL 62274.
“In accordance with Federal Law and U.S. Department of Agriculture (USDA) policy, the City of Pinckneyville is prohibited from discriminating on the basis of race, color, national origin, age, disability, religion, sex, and familial status. (Not all prohibited bases apply to all programs.) To file a complaint of discrimination, write to: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call 800-795-3272 (voice) or (202) 720-6382 (TDD).”
The City of Pinckneyville does not discriminate in admission, access to, treatment or employment in programs or activities on the basis of a handicap in violation of section 504 of the Rehabilitation Act.