TO: Mayor and City Council
FROM: Dustin Anderson, Director of Community Development
SUBJECT:
title
Award of Professional Services Agreement for a TIF Efficiency Study to Johnson Research Group (JRG) in the Amount of $72,615.00
end
BACKGROUND:
After internal staff discussion about the current balance and overall financial health of Joliet’s Tax Increment Financing (TIF) districts, Economic Development staff issued an RFP seeking a qualified consultant to conduct a study of Joliet’s TIF districts and help identify strategies to improve each TIF district's performance. This RFP was issued on January 24, 2025. The findings will help guide decisions on potential boundary amendments, extensions, or terminations in accordance with the Illinois TIF Act.
Our current TIFs are not performing as well as they otherwise might. This under performance has contributed to fewer projects than preferred in some TIF districts. Appendix “A” provides a summary of the balance in each TIF district, the age of the district, and the number of active projects today.
To attract developers with impactful projects to Joliet, the City must have a healthy and diverse portfolio of incentives, including TIF funding. This funding source is the most popular financing mechanism among developers and one where the municipality has direct control of the process. The current balances of Joliet’s TIF Districts, excluding TIF #7, are a challenge to attract projects that require multi-million-dollar investments.
Additionally, the City itself could implement incentive programs directly funded from TIF districts for smaller-scale projects. One example might be a storefront modernization program. A program of this kind could help commercial building owners and/or business owners update the façade of storefronts and upgrade plumbing and electrical equipment, making the building stock in Joliet more attractive and assessed at a higher value, which in turn would help boost the increment created in the district.
The selected consultant would be responsible for collecting and analyzing parcel-level data (property value, building size, use, etc.), running financial models that help us understand the current financial state of each TIF district, and making recommendations based on the findings. If approved, the price of the study would be funded with funds from each TIF district; studies are an eligible expense under the Illinois TIF Act.
The City solicited bids from four consulting firms, and received two proposals as described below:
This item was recommended for City Council approval by the Land Use and Economic Development Committee on May 28, 2025.
CONCLUSION:
If approved, the cost of the study would be funded with funds from each TIF district; studies are an eligible expense under the Illinois TIF Act.
This is an opportunity for the City of Joliet to identify policies and strategies to improve the performance of its TIF districts, attract impactful projects, and invest in the improvement and modernization of buildings in key commercial corridors which in turn will attract organic investment in the long-term.
The proposal submitted by Johnson Research Group (JRG) was relevant and action-oriented to the scope of services described in the RFP. The firm is experienced in the region and it is the most affordable submission received.
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council approve the award of Professional Services Agreement for a TIF Efficiency Study to Johnson Research Group in the Amount of $72,615.00
end