BDC Asking for Support of Cermak TIF Extension

The Berwyn Development Corporation is asking all Berwyn school districts for support regarding a possible 12 year extension of the Cermak Road TIF. At a recent District 100 school board meeting, Tony Griffin, executive director of the Berwyn Development Corp., fielded questions from board members along with Phil McKenna, a financial consultant. Basically, the city and the schools will need to enter into an Intergovernmental Agreement that may allow for the TIF to "pay back" some of the incremental surplus to the districts over the 12 year extension. A conservative estimate for District 100 was $91,000 per year. The letters of support will be brought to Springfield and then the terms of the IGA will be negotiated this spring/summer. This is the first time in the life of the TIF that other taxing entities have been involved in decisions and the first time that the schools have been offered any kind of relief. Joanne Zendol clarified, "So, we used to get nothing, and now we'll get something?"


This article in The Berwyn Life hints that the Morton College Board may not offer the letter of support. District 201 Board of Education has not yet acted on the request from the BDC.

There are many residents and Berwyn officials who believe that the Cermak TIF is crucial in the economic development of Berwyn going forward. There are others who are concerned about the amount of funds that schools and other taxing entities "lose" during the life of the TIF, especially given the lack of economic development that has occurred under the TIF in the past 15 years.

At the District 100 meeting, Michelle Skryd of the Berwyn City Council accompanied by the new Main Street administrator pointed out that in the past year or 2, the TIFs have been audited for the first time and there is progress in the "Superblock" development. The Main Street designation for Cermak Road is just beginning to take shape in the form of marketing efforts and assistance to existing and new businesses. The extension of the TIF along with the success of the Main Street initiatives could have a great positive impact on the economic development of the area. If the TIF extension does bring about considerable economic development, the payoff for the school districts (and city) could be significant in the form of increased tax revenues and property values. Still, in a community with so many financial challenges, it is a difficult decision for these other taxing entities to make.

The BDC currently has 6 of the 8 letters requested, with Morton High School Board 201 and Morton College set to make a decision within the next few weeks. It is not clear whether the TIF extension will be possible without all 8 letters. The BDC will present information to the Morton College Board regarding the TIF extension at the April Board meeting on April 23rd.