Chicago City Wire

The Pilsen Industrial Corridor Tax Increment Financing (TIF) district is set for expansion to provide increased financial support for property owners and small businesses in the Lower West Side. The proposal, introduced to City Council by Mayor Brandon Johnson, aims to extend the TIF district by adding 685 acres to the existing 907-acre area.

The expanded boundaries will include approximately 6,140 properties, covering more than 100 city blocks generally bounded by 16th Street, Western Avenue, Desplaines Street, and portions of Blue Island Avenue and 21st Street. This marks the first time that TIF support will be available for the community’s main commercial and residential areas.

Established in 1998, the Pilsen TIF primarily supports business and public infrastructure within the Pilsen Industrial Corridor and adjacent blocks. The proposed amendment seeks to address affordability and displacement concerns among the neighborhood’s primarily Mexican-American residents and businesses. The redevelopment plan budget would increase from $115 million to $980 million. Funds would be allocated through programs such as the Department of Planning and Development’s Small Business Improvement Fund and the Department of Housing’s Neighborhood Improvement Program. Additional funding would also be available for job training, day care services, public works improvements, and other eligible costs.

In 2022, the district's term was extended for an additional 12 years. The City's TIF program leverages incremental property growth within a district's boundaries to support private and public improvements.