Litchfield Secures Marshalls Department Store with New TIF Agreement

Litchfield City Council Meeting | Nov. 6, 2025

Article Summary: The City Council approved a new development agreement that paves the way for a Marshalls department store to open in Litchfield. The deal utilizes Tax Increment Financing (TIF) incentives to support the redevelopment of a commercial property on West Ferdon Street.

Marshalls Development Key Points:

• New Agreement: The council repealed an old agreement and authorized a new one with Litchfield IL/TX, LLC for 1403 W. Ferdon Street.

• Anchor Tenant: The project is specifically designed to bring a Marshalls retail store to the city.

• Incentives: The agreement utilizes funds from the city’s TIF District #1 to make the project financially feasible for the developer.

• Timeline: Construction is estimated to take approximately 18 months once started.

A major national retailer is coming to Litchfield following action taken by the City Council on Thursday, Nov. 6, 2025. The board approved an ordinance authorizing a development agreement with Litchfield IL/TX, LLC to redevelop property at 1403 W. Ferdon Street for a new Marshalls store.

The council first voted to repeal an existing development agreement for the site before approving the new deal.

“This has concerned a large tenant, but now it concerns another large tenant, Marshalls,” Mayor Jacob Fleming said.

The project has been in the works for approximately two years. Fleming noted that the Economic Development Committee (EDC) had reviewed and approved the terms of the agreement.

According to the ordinance, the developer informed the city that without financial support from the TIF District #1 fund, the project would not be financially feasible. The agreement outlines that the city will reimburse the developer for certain eligible redevelopment project costs.

The total estimated project cost is listed at over $3.3 million. The city’s financial assistance is broken down into a reimbursement of up to $1,482,500 or 50% of eligible costs, whichever is less.

“We’re estimating that construction will begin in the Spring of 2026,” the agenda documentation noted. “The project will take approximately 18 months until completion.”