The Chicago Transit Authority’s (CTA) planned expansion of the Red Line to the far south side of the city received a funding boost from the Chicago City Council with the approved establishment of a Transit Tax Increment Financing (TIF) district.
The Transit TIF will fund a portion of the CTA Red Line Extension (RLE), the $3.6 billion extension from the Red Line’s current terminus at 95th Street to 130th Street. The 5.6-mile project is described as a critical and transformative investment in the far south side of Chicago, an area that is underserved by transit. The project will open far south communities to more job and economic development opportunities and save up to 30 minutes of travel time between those communities and downtown Chicago.
According to the city, the Transit TIF legislation will generate up to $959 million for eligible costs involving RLE construction and administration. The three measures included in the legislation are:
- The designation of a RLE Transit Facility Improvement Area (TFIA) where TIF revenues can be spent on the project. The TFIA includes property located within one-half mile of existing and proposed Red Line right-of-way between Madison (in downtown Chicago) and 130th Street.
- The designation of a RLE Redevelopment Project Area (RPA), where new property tax growth will provide TIF assistance for the project. The RPA includes 7,726 parcels on approximately 1,445 acres of land located within one-half mile of Red Line right-of-way between Madison and Pershing Road.
- The adoption of a RLE TIF Redevelopment Plan, which outlines the project scope, budget and use of TIF funds.
"The Red Line Extension project represents one of the most critical investments in CTA's history and will undoubtedly be a transformative development for our far south side community," said Chicago Mayor Lori E. Lightfoot.
An extension to 130th Street has been under consideration since 1958 and the far south side, which consists of predominately Black and Brown neighborhoods, is the only major portion of the city lacking a CTA rail line.
“The Red Line Extension will be one of the single biggest investments on the far south side in decades,” CTA President Dorval R. Carter Jr. said. “At CTA, we are dedicated to community involvement when it comes to our projects and always want to hear the voices of Chicago residents. RLE has been a community-input-driven project from the start, and members of the surrounding communities will remain vital in helping shape this project and its path forward.”
The RLE Transit TIF is the second Transit TIF district in Chicago. In 2016, the city established the Red Purple Modernization Phase I Transit TIF, which is being used to generate $622 million in local funding toward $2.1 billion in improvements to North Side portions of the CTA’s Red and Purple Lines.
