Lightfoot reveals plan to help fund $3.6 billion Red Line extension
CHICAGO (CBS) -- A long-awaited southern extension of the CTA Red Line gets a boost from Mayor Lori Lightfoot.
The mayor wants to create a new transit tax increment financing or TIF district to provide $950 million for the $3.6 billion extension.
The City Council would have to approve the taxing district.
The plan already has $30 million in federal funding, and approval of the proposed TIF district would bring in another $2.1 billion in federal funding.
TIF districts capture the revenue generated by property tax growth within a specific part of the city for 23 years to help fund redevelopment projects. Unlike typical TIF districts, transit TIF districts like this one do not divert funding to the Chicago Public Schools.
The Red Line extension TIF district plan has met with some resistance from members of the City Council, because while funds generated by a TIF usually are set aside to be used in the same area where the property tax growth is collected, this one would collect growth from a mile-wide stretch along the Red Line from Madison Street to Pershing Road in order to pay for extending the Red Line from 95th Street to 130th Street, and adding four new train stations.