The Tax Increment Financing (TIF) fund activity for the Village of Homewood was outlined in a memo to village trustees for the March 24 meeting by Homewood Director of Finance Amy Zukowski. The memo details revenue, expenditures and ongoing obligations across multiple TIF districts as part of the proposed fiscal year 2026-27 budget.

According to Zukowski, the village uses TIF districts as a tool to encourage economic development, particularly in areas considered underdeveloped. Under the system, property tax revenue generated is reinvested for redevelopment projects within each district for up to 23 years.

According to Zukowski, Homewood currently has seven active TIF districts: 

• Northeast.
• Downtown Transit-Oriented Development (TOD).
• Dixie Highway/Miller Court.
• Kedzie Gateway. 
• East Central Business District. 
• 183rd West.
• North Halsted. 

The Northeast TIF remains the largest district, with revenue projected to increase significantly. Property tax revenue alone is expected to rise from $500,000 to $1.7 million in 2027. The total TIF revenue is expected to increase from about $551,500 in 2026 to $1.76 million in 2027, approximately a 219% increase. Expenditures are also set to increase from $478,793 to about $1.78 million, due to incentive payments tied to projects such as Apparel Redefined and the Wind Creek Casino parking garage, Zukowski said. 

The Downtown TOD TIF is also expected to see growth. Revenues are projected to increase from about $251,500 to $401,600, while expenditures rise from $520,367 to just over $1 million. Several projects are in progress in the district, including pedestrian infrastructure upgrades, improvements to the St. John Neumann parking lot to support TOD and new lighting at Metra parking lots along Harwood and Park avenues to improve safety, she said. 

The Dixie/Miller Court TIF shows some growth, with revenues increasing from $75,050 to $85,095 and expenditures rising slightly to about $80,500. The district includes incentives tied to the Homewood Brewing Company, she said. 

The Kedzie Gateway TIF is projected to decline in revenue, dropping from $200,300 to $150,170, a 25% decrease. However, expenditures are expected to increase slightly to about $233,000, including transfers to the general fund and obligations related to the Homewood Ford redevelopment agreement, which includes sales tax sharing of up to $1 million over 15 years, Zukowski said. 

The 183rd West TIF is expected to decrease in spending, with expenditures dropping from about $303,033 to $228,000, while revenues remain relatively the same at about $350,000. The district includes redevelopment obligations tied to the Brunswick Zone property and Park West Plaza, she said. 

According to Zukowski, the North Halsted TIF, created in 2025, remains relatively small but is expected to grow, with expenditures increasing from about $23,000 to $33,000. The East Central Business District TIF has begun generating new tax increments, with no current obligations listed.

Two TIF districts, Southgate and the Southwest Central Business District, have expired. The final property tax collections occurred in 2024 and 2023, and both were formally terminated by the board, she said. 

A new district, the Harwood TOD TIF, is under consideration and is expected to go before the board for approval during the public hearing at the April 14 meeting, Zukowski said.