onsidered the “heart” of that district. As a result more than $60 million in bonds previously issued to Kellogg would be assumed by the city. “Market participants said they expect the city to cover shortfalls on any of the TIF issues, regardless of their revenue package (Ward 1999).” The city offered up to $56 million in incentives to keep the plant open but was ultimately rejected. Long term affects result from businesses closing within these districts. As stated by one of the board analysts, “Even the city will have a hard time figuring out how its tax base will be affected for some time (Ward 1999).” A fluctuating tax base is more serious than just to the city.As noted earlier Carl Anderson, a resident of Chicago, enjoyed the increase in his communities aesthetics. His problem, as a result of the increase in property taxes, is that he now wants to make some repairs and is not sure if he can cover the expenditure. “If they really wanted to use it as a stimulus, they’d let you be taxed at the same rate for a few years (Podmolik 2000).” Earlier in the article it reads, “TIFs were designed to benefit real estate developers, not small business operators and business property owners. . . (Podmolik 2000).” Mr. Anderson surely agrees with that statement. A major concern of everyone is the revenue being generated by the TIF.While cities continue to create more TIF districts and raise expectations for community development the “anxiety of neighborhood businesses and residents (has them) wondering what changes the TIF will bring to their community – it behooves small businesses owners to involve themselves early in the TIF planning process (Podmolik 2000).” When doubt fills the heads of prospective customers it strains the development process and puts the city at risk of covering infrastructure costs. ‘Tax increment financing projects could ne...
