Hotel / Motel Tax Grant Funding Applicant Packet

Tax Increment Financing in Fairview Heights

Tax Increment Financing, or TIF, is a public financing method which has been used for redevelopment and community improvement projects in the United States for more than 50 years.

TIF is a tool to use future gains in taxes to finance current improvements which theoretically will create the conditions for those future gains. When a public project is carried out, there is often an increase in the value of surrounding real estate, new investments, and new or rehabilitated buildings.There are currently 6 TIFs and 1 Enterprise Zone located within the City of Fairview Heights. Below you will find information about each TIF.

Lincoln Trail TIF

Established in 2007, the Lincoln Trail TIF was created primarily to assist in revitalizing Lincoln Trail, which is an old Highway corridor, preceding Interstate 64.

Businesses who have utilized the benefits of the Lincoln Trail TIF include:

Bunkum Road TIF

Established in 2003, the Bunkum Road TIF was created to promote a large residential development.

The Summit Springs subdivision is currently located within this TIF.

Shoppes at St. Clair Square TIF

Established in 2005, this TIF was created in conjunction with the development of the Shoppes at St. Clair Square. In addition to the TIF, a Business District was created with the same boundary as the Shoppes at St. Clair Square TIF.

Some of the businesses currently located in this TIF are:

Fairview Heights TIF #4

Established in 2015, TIF #4 is on the west edge of town and contains 144 acres. It is centered on the Fairview  Heights MetroLink station. Two (2) projects are envisioned: mixed-use commercial/residential development adjacent to the MetroLink platform and on the southeast quadrant of St. Clair Avenue and Illinois Route 161, and a 38-acre business/industrial park on the east side of 161. This TIF creation allows the City to offer incentives to developers via a rebate of property taxes and/or financial assistance on infrastructure developments.

Ludwig Trail TIF

Established in 2016, the Ludwig Drive TIF is a 27.5-acre area entirely for commercial use. There are two (2) parcels in the boundary for development potential. The TIF funds will assist with deteriorated buildings, vacant properties, and site improvements.

Three projects are envisioned for the Ludwig Trail TIF:

  • Redevelopment of St. Clair Cinema 10
  • Filling of the former Sports Authority space at Fairview Heights Plaza
  • Development of the Outparcel

State Route 159 North TIF

Established in 2016, State Route 159 North TIF is on the north edge of town. The west side of Illinois Route 159 contains 128 acres and includes the Fairview Heights Plaza Shopping Center.

Development of a shopping complex and/or a destination center on the 72 acres north of the CSX railroad tracks is envisioned.

Enterprise Zone

The Enterprise Zone, established in 2015, was created to stimulate commercial and industrial growth and retention within specific areas of the community. The Enterprise Zone includes all property in the existing Lincoln Trail TIF, Fairview Heights TIF #4, Ludwig Drive TIF, and State Route  159 TIF. A 5-foot strip along St. Clair Avenue is used to connect these areas in the Enterprise Zone. In addition, the City has also placed commercial properties on the south side of Ludwig Drive at Fairview Heights Plaza within the boundary of the  Enterprise Zone.

You can find supporting documentation regarding the Fairview Heights Enterprise Zone here:

Businesses that have utilized the Enterprise Zone are The Perfect Finish Collision Center located at 10610 Lincoln Trail, and NAPA Auto Parts at their new location at 10408 Lincoln Trail.