Recently the City of Chicago announced its intention to create a new Tax Increment Finance ("TIF") District based primarily in the Central Loop Area with the project's principal focus being on LaSalle Street and the City's financial district.  While irregularly shaped, the outside boundaries of this redevelopment project generally stretch from Dearborn to Canal and from Van Buren to Fulton (on its western border) and Randolph Street (on its eastern edge).  Of course, a substantial portion of the financing for this TIF Project would be used to improve public services and public spaces.  In addition however, approximately $200 million is earmarked for the rehabilitation of existing property which is privately owned.

The eligibility of any particular private building owner to participate in any potential grant is yet to be determined but the City has identified a list of relevant criteria to be considered in selecting grant recipients. 

While the application process can be complex, Gould & Ratner has the business and legal experience necessary to successfully navigate this process.  It is also important to understand the potential income tax ramifications to the building owner associated with financing privately owned capital improvements with public money.  For instance, the income tax consequences may vary substantially for different types of private businesses.

Our Tax and Financial Group has previously analyzed the  income tax effects of these types of public works projects and can assist in advising building owners on the likely income tax consequences and potential for structures that are favorable from an income tax point of view.  Our Real Estate Tax attorneys are very knowledgable about the real estate tax implications of such projects.

For further information, please contact Steve Gustafson of our Tax and Financial Group (312.899.1647 or via email at sgustafson@gouldratner.com) or John Mays of our Real Estate Group (312.899.1618 or via email at jmays@gouldratner.com).