By Shannon Holmes
July 15, 2002

Chicago Mayor Richard M. Daley has urged the city council to approve a new program called TIFWorks that will invest Tax Increment Finance (TIF) dollars in a variety of job training and workforce development initiatives.

"TIFs are not just about bricks and mortar, they are about jobs and economic development," Mayor Daley stated. "TIFWorks will invest in current and future employees within TIF districts by helping them acquire and upgrade their skills. This will make the companies more profitable. It will strengthen the city's economy. And, most important, it will result in better wages for employees and better lives for themselves and their families."

Under the program, businesses located within Chicago's 120 TIF districts could use TIF funds for workforce development activities such as customized training, English-as-a'second-language instruction, and industry'specific instruction related to regulatory compliance.

"TIFWorks is good for businesses and their employees," said Workforce Development Commissioner Jackie Edens, whose office will administer the program. "It increases access to jobs and economic advancement opportunities for Chicagoans while providing a way for businesses to adequately train their workforce to stay on top of changes in the industry."

"TIFWorks allows small and medium'sized businesses the chance to train their workers at little expense to them," explained Alicia Berg, Commissioner of the Department of Planning and Development. "It helps companies become more competitive in their industry, thus ensuring they stay in business in Chicago."

Applicants can be individual employers located within or expanding into a TIF, multiple companies with common training needs, and non-profit organizations, including industrial councils, community development corporations, and business or trade groups that agree to place trainees into a business located within a TIF.

TIFWorks was developed through an interdepartmental effort of the Mayor's Office of Workforce Development (MOWD), Department of Planning and Development, Department of Finance, and the Chicago Workforce Board, and with a private sector partnership that allows the City to finance the initiative without spending City funds. TIFs will allow the City to invest public money to improve a particular area for commercial or industrial development. The investment is later repaid through the future property tax revenue, or increment, generated by companies that locate in the area.

Through the end of 2001, TIFs have helped create and retain over 53,000 permanent jobs in Chicago, according to the Department of Planning and Development. An investment of nearly $788 million by the City has generated well over $5 billion in private investment, meaning that for every dollar the City invested in a TIF district, the private sector invested approximately $6.50.