Each state has its own laws about the requirements for establishing a Tax Increment Finance District. In practice the interpretation of "economic development" and "blighted" can vary considerably.
This article discusses a case where citizens challenge the "blighted" condition in Chicago. https://chicago.curbed.com/2019/4/19/18507728/lincoln-yards-lawsuit-tif-district
In Madison, Wisconsin a group of taxpayers argue that $1.5 million in cash payments to a developer in a TIF district "violates the state constitution's uniformity clause, which requires all property within a taxing jurisdiction to be treated the same."
https://madison.com/wsj/news/local/govt-and-politics/supreme-court-hears-oral-arguments-on-lawsuit-challenging-tif-districts/article_a0589408-4f50-503f-b81f-65164cf1650b.html
Legal challenges of TIFs in Illinois - legal standing of citizens regarding TIF challenges. http://www.franczek.com/frontcenter-Legal_Challenges_TIF_Business_Districts.html
Case law examples of Illinois schools successfully challenging TIF implementation. http://www.franczek.com/frontcenter-Legal_Challenges_TIF_Business_Districts.html
