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Friday, September 18, 2015

Challenge to TIF Rejected by Court


Rarely do the courts issue opinions relating to the Illinois TIF law - maybe because the law itself is so complicated or rarely challenged.  This week, however, an appellate court addressed a challenge that the City of Bloomington failed to comply with provisions of Tax Increment Allocation Redevelopment Act. Specifically, the Devyn Corporation (an owner of property located within the TIF district) filed a lawsuit claiming that the City failed to comply with certain accounting and recordkeeping functions of the TIF law, and that the TIF should be terminated because the redevelopment plan had not been implemented by the estimated date of completion.  Finally, the plaintiff argued that the City violated both the Act and the redevelopment plan by levying and collecting taxes after the estimated date of completion.

The court rejected the plaintiff's argument, ruling in favor of the city on all counts.  First, the court said that plaintiff had other available remedies for his requests for documents, including FOIA. The court also held that the estimated date for completion was just that - an estimate - and did not operate to terminate the TIF or render the City's levy of taxes unlawful.  Devyn Corp. v. City of Bloomington, 2015 IL App (4th) 140819.

Post Authored by Julie Tappendorf

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