TIF Audit Report

ofOFFICE OF THE INSPECTOR GENERALCity Chicago180 N. Michigan Avenue, Suite 2000Chicago, Illinois 60601Joseph M. Ferguson Telephone: (773) 478-7799Inspector General Fax: (773) 478-3949To: Mayor Richard M. DaleyMembers of the City CouncilFrom: Inspector General Joseph Ferguson \Re: Central Loop and Central West TIF AuditDate: June 29,2010The Inspector General’s Office has completed an audit of processes and procedures related toTax Increment Financing (TIF) expenditures between January 1, 2003 and December 31, 2007for the Central Loop and Central West TIF districts. Additionally, we reviewed TIF districtporting and transfers for the years 1997 through 2007. As you know, the City of Chicago usesTIF as an economic development tool to promote private redevelopment of commercial,industrial, and residential sites throughout the City. A core purpose of TIF is to support publicprojects and incentivize private development in economically depressed areas which havedifficulty attracting development investment. It does 23-yearso through a set aside of propertytax revenues above a specified base. Portions of the resulting specified future tax revenue streammay then be collateralized for major development project financing and also used for directgovernmental support to broaden and deepen the area’s economic and infrastructure base criticalto robust and sustainable redevelopment in a community. Among other things, TIF is commonlyused to finance public and ...