Abstract
This study uses survey and interview methodologies to gain an understanding of the scope of payments in lieu of taxes (PILOTs) in Illinois municipalities. While the number of PILOTs in this setting is consistent with previous studies, less revenue is generated. We find that while PILOTs can generate revenue, greater potential lies in their ability to broaden the economic development discussion, expanding stakeholder involvement and increasing the potential for collaboration. Drawing upon a proposed economic development model, we present recommendations to encourage participation in economic development efforts by nonprofit organizations, which may otherwise have inherent incentives to resist PILOTs.
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