TIF Redevelopment Agreements

A redevelopment agreement is the agreement a developer (housing, commercial, industrial or any combination) makes with the City of Chicago in return for a TIF subsidy. The agreement is passed by the Chicago City Council in an ordinance, and includes any borrowing the City will do in order to give the developer a subsidy.

Details of the development are spelled out in the Redevelopment Agreement ordinance, including the project budget, employment requirements (MBE, WBE, etc.), insurance requirements, failure to complete and other stipulations, affordable housing requirements, default provisions, etc.

The agreement (and the ordinance) include the developer’s financing resources, uses of City funds, and the sources of City subsidy – such as a bond, a note, or the amount of funds that will be taken from the TIF’s fund.

The ordinance is brought to the City Council by the Finance Committee, upon recommendation of the Community Development Commission which reviews the project and takes public comments.

All ordinances passed by City Council can be viewed on the City Clerk’s website: http://www.chicityclerk.com/citycouncil/journals/index.html