Unleashing the Power of Community Storytelling

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Dieterich, Illinois, faced a challenge familiar to many small towns – in the early '90s, a declining population threatening their school district. But instead of giving up, the community rallied to create a thriving future through the creative use of Tax Increment Financing, or T.I.F. Districts, for residential use.  This approach has paid big dividends over several decades.

Spearheaded by the Dieterich Community Development Corporation (DCDC) and the Illinois Institute of Rural Affairs, a program called MAPPING was utilized to guide their strategic planning efforts. This initiative focused on attracting new residents through affordable housing options and strategic zoning that encouraged a healthy mix of residential and commercial development.

Tax Increment Financing (TIF) districts were strategically used to reinvest funds into residential developments.  They created a “Residential TIF District” and became their own real estate developer in order to grow the town.   The TIF incentives allowed the village to reduce the cost of purchasing a fully developed lot to $5,000, if the owners built within the first year.  This approach proved successful, attracting residents and businesses alike.

In 2020, at the height of the pandemic, the village built and raffled off a new home in order to promote their latest residential subdivision.  Tickets for the new home were sold at $100 each or six for $500.  They more than recovered the cost of building the home and successfully gained a lot of attention, as well.   Since that time, the subdivision has filled in, bringing new families and vibrancy to the town.  

Because of these efforts, in just the past ten years Dieterich has nearly doubled in population.  They have saved their school district and added a large community center to the school campus that provides health and wellness, as well as a daycare facility and other essential services and amenities.   They have installed new fiber optic internet access throughout the town to attract remote workers.  Plus, because of the success they had, they continue to conduct the MAPPING program every few years to make sure they are on the right track and to seek out ways to improve.

Dieterich's story serves as an inspiration for small towns facing similar challenges. Dieterich has transformed its residential areas through collaboration, strategic planning, and a commitment to its citizens and secured a bright future.