Isn't That Rich Podcast

Harrisburg, Illinois, has long been a cornerstone of Southeastern Illinois, serving as a hub for surrounding counties and communities. Recently, the city has been buzzing with renewed energy and potential, thanks to strategic use of Tax Increment Financing (TIF). On this episode of the Isn't That Rich podcast, we sat down with Mayor John McPeek and Alex Jackson, a financial expert on the city’s administration team, to discuss the impact and future of TIFs in Harrisburg.

What is a TIF?

TIF, or Tax Increment Financing, is a powerful tool for cities to encourage redevelopment in designated areas. As Alex Jackson explained, TIF districts are established in areas identified for redevelopment. When new developments increase property values, the additional property tax revenue (the "increment") is funneled back into the district to further incentivize improvements.

The result? A cycle of growth, investment, and revitalization, all aimed at creating thriving communities.

Harrisburg's TIF History

Harrisburg's TIF journey began with the Veterans Drive TIF, which eventually expired. The city has since reestablished two TIF districts: Uptown TIF and a new Veterans Drive TIF. These districts are tailored to support commercial redevelopment, as Harrisburg has yet to establish a residential TIF.

“TIF districts last 25 to 30 years,” Mayor McPeek noted, “and the goal is to revitalize one area before moving on to the next.”

Current TIF Projects

One of the most exciting developments is the revitalization of two long-abandoned shopping centers. A new investor has purchased the properties and plans to use TIF funds to attract new businesses by 2025. Mayor McPeek believes these projects will bring Harrisburg closer to its potential as a hidden gem of Southeastern Illinois.

“People often overlook Harrisburg, but we draw visitors from multiple counties and even neighboring states,” McPeek said.

Additionally, Harrisburg has leveraged TIF funds for infrastructure improvements, such as constructing a new water tower, as well as supporting local businesses like restaurants and retail stores.

The Process Behind TIFs

Creating a TIF district is no small feat. It requires collaboration with the Illinois Department of Revenue, local school districts, and counties. Harrisburg partnered with Moran Economic Development, a firm specializing in economic growth, to navigate the process and ensure every detail met state requirements.

TIF agreements are tailored to developers’ needs, offering flexibility in funding structures. For instance, some developers opt for upfront payments, while others prefer annual distributions to offset ongoing costs.

Addressing Misunderstandings About TIFs

One common misconception is that TIF funds are free money for anyone in the district. However, TIFs are available only to property owners investing in redevelopment. Renters or those making no improvements don’t qualify.

“You have to own property and be actively improving it,” Alex clarified. “TIFs are designed to generate more property taxes through redevelopment.”

Another area of confusion is the perception that TIFs only benefit developers. Mayor McPeek emphasized that while developers are direct recipients, the entire community benefits from increased jobs, sales tax revenue, and improved infrastructure.

What’s Next for Harrisburg?

Harrisburg’s future is bright, with several projects in the pipeline:

• New Businesses: The revitalized shopping centers are expected to house several businesses by 2025, including new dining options and retail stores.
• Residential TIF: Plans are underway to establish a residential TIF by 2025, aiming to help homeowners make improvements and encourage new housing developments.
• Roundabout Construction: Harrisburg will see its first roundabout soon, fully funded by a state grant, improving traffic flow and safety near key shopping areas.

“We’re working hard to make Harrisburg a destination,” McPeek said. “From beautification efforts like seasonal flower pots to long-term infrastructure projects, we’re creating a community people are proud to call home.”

A Hidden Gem in Southeastern Illinois

Harrisburg’s commitment to growth is evident not just in its economic efforts but also in its community spirit. Events like the Sasquatch Festival, which drew nearly 7,000 attendees this year, showcase the city’s ability to bring people together. The festival, free for attendees thanks to community donations, is a prime example of Harrisburg’s collaborative approach to progress.

Final Thoughts

Harrisburg’s leaders encourage developers and potential investors to reach out and explore opportunities in the city. Whether it’s through business incentives, façade grants, or residential redevelopment, there’s a place for everyone in Harrisburg’s bright future.

“TIFs aren’t just about money,” Alex said. “They’re about creating a community where people want to live, work, and grow.”

If you’re considering starting a business or making an investment in Harrisburg, stop by City Hall. Mayor McPeek and Alex Jackson are eager to help you turn your vision into reality