Proposed West Humboldt Park SSA Public Meeting Nia Center
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Transcript of Proposed West Humboldt Park SSA Public Meeting Nia Center
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Proposed West Humboldt Park SSAPublic Meeting
Nia Center
May 1, 2013
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Outline
Karen J. Forté, City of Chicago SSA Overview
Chet Jackson, WHPDC Planned 2014 services and budget
Jewell Walton & Geoff Dickinson, SB Friedman Financial Analyses
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Special Service Areas (SSAs)
SSA #49 South Shore &
Andrew J. MooneyCommissioner
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What is an SSA?
Special real estate taxing district, not an agency
The City as the taxing body contracts with entities to administer SSA programs
Funds additional services beyond the City’s general services in a defined district
Tax % rate applied to EAV generates levy is DIFFERENT than the tax % increase on a tax bill from the SSA tax
Enabled through state statute and city ordinance
Called BIDs (Business Improvement Districts) in other cities; BIDs used worldwide
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• A good ROI• Be smarter about
sanitation services• Help police reduce
crime• Help ex-offender re-
entry• Lease vacancies• Support
manufacturers• Offer free wifi in SSAs• Bring new visitors to
Chicago• Focus community
advocacy & leadership• Master planning• Create accountability
with taxing privilege• Create more desirable
neighborhoods• Leverage City
resources, both financial and human
Achievements
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Current & New SSAs
• 47 active SSAs
• 40 Service Provider Agencies
• 350+ Commissioners
• Oldest SSA created in 1977
• 70% increase in last 10 years
• 2013 Budgets = $27 million
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CITY OF CHICAGO
City Council (legislative)
SSA Commission (advisory)
Service Provider Agreement
Service Provider Agency (Management/Admin)
Subcontractors
Assessor Treasurer
COOK COUNTY
HEDDept.
of Law
SSA Bank Acct
City Comptroller
OBM Other City Depts.
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Typical Authorized Servicesmaintenance and beautification activitiesnew construction (e.g. minor streetscape improvements) coordinated marketing and promotional activities parking and transit programsarea strategic planningbusiness retention/recruitment initiativesbuilding rehab activities (façade)security servicesother technical assistance activities to promote community and economic development.
Work plans assembled annually from this list.
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SSA Services Gallery
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PUBLIC WAY MAINTENANCE
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AESTHETICS Streetscape Maintenance & Landscaping
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Advertising & Promotion
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Façade Improvements & Pre-Development Costs
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Parking /Transit/Accessibility
SSA #10 Back of the Yards
SSA #2 Belmont-Central
SSA #5 Commercial Ave.
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Safety & Security
Types of security:– Foot Patrol– Surveillance Cameras– Store Security Rebates– Cell Phones for CPD– Coordination w/CAPS
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Tenant Retention & Attraction
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SSA Outreach & Communications
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1) Tax Rate Cap (citywide average: 0.50%)2) Annual Tax Rate (% may vary annually)3) EAV (Equalized Assessed Value set by County)4) Levy (citywide range: $60k - $1.3 million; ave.
$250k)5) Carry Over (unspent and/or previous years
taxes)
SSA Fund Mechanism: Common Terms
Budget = Levy + Carry Over Example: $300,000 = $270,000 = $30,000
Levy = Tax Rate x EAVExample: $270,000 = 0.45% x $60 million (tax cap is 0.50%)
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Legislation
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Key Legislation for SSAs
• Illinois State Statute: SSA Tax Law• City Ordinances • Open Meetings Act• Freedom of Information Act• Governmental Ethics Ordinance
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Legislation – City Ordinances • Establishment Ordinance
– Boundaries– Term– Tax Rate Cap– Commission: Qualifications, Appointment, Powers– Authorizes HED to enter into Mgmt. Agreement
• Levy Ordinance – Annual levy and associated tax rate– Budget (levy + carry-over)
• Management Agreement Ordinance
Illinois Statute: SSA Tax Law
City Ordinances Open Meetings Act Freedom of Information Act
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Legislation – Service Provider Agreement
• Empowers agency to deliver services/spend funds
• Annual services and budget• Commission approves expenditures and
subcontracts• Performance standards• Conflicts of Interest• Contract Default
– HED Commissioner issues notice to improve– If no improvement, Provider subject to sanctions & termination
Illinois Statute: SSA Tax Law
City Ordinances Open Meetings Act Freedom of Information Act
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Legislation – Open Meetings Act
• Public Notice– Beginning each year, prepare and give notice of meeting
schedule– Agenda posted at Agency office and mtg. location 48 hours
before mtg.– 10-day notice in newspaper required for meeting changes
• Meeting Minutes– Meeting defined as gathering of majority of quorum of
Commissioners– Include meeting date, time and place– Record Commissioners as present or absent– Summary of discussion on all matters proposed, deliberated,
or decided, and record of any votes taken – Approved minutes open to public within 7 days– No SSA business can be done via email Illinois Statute: SSA Tax Law
City Ordinances
Open Meetings Act Freedom of Information Act
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Legislation – Freedom of Information Act
• Public Records– reports, maps, letters, etc. received by the
Commission– info in SSA related accounts, contracts, etc. – Exempt: invasions of personal privacy, personnel
records, RFP prep, and actual bids/proposals until awarded
– Service Provider records requested/archived by City
• FOIA Requests– Submitted to HED or Commission, NOT the
Agency– 7 days to reply– If info is readily available, provider should
cooperate w/o a FOIA request Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act
Freedom of Information Act
From the Chicago Tribune
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Governance
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• 47 SSA Commissions
• Seats range from 6 to 16; ave. 9
• Typically meet quarterly
• Executive seats typically Chair, Secretary, Treasurer
• No more than 1/3 of Commissioners should also serve as Agency Board Members due to need for recusal – no overlap is recommended
Governance - SSA Commissions
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Governance - SSA Commissions
• Establishment Ordinance creates Commissions– Extension of, not separate from, the City– Name of Commissions – Number of seats and term lengths for each commission– Appointment process– Chairperson term lengths
• Establishment Ordinance lists Commission powers– To Recommend Annually:
• Services• Budget • Service Provider
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• Establishment Ordinance authorizes creating bylaws for procedural operation
• SSA Ordinances supercede SSA bylaws
• Separate/distinct from Agency bylaws
• Negotiable items for each SSA:– Executive seats– Mtg frequency beyond Open Mtgs Act (semi-annually)– Attendance requirements– Voting– Committees– Amending bylaws
Governance - SSA Commission Bylaws
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Management
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• 42 Service Providers (Agencies)– 30 Chambers or Business Associations- 3 Development Corporations– 3 Industrial Organizations– 5 Human or Civic Service Organizations
• All are non-profits• Staffing scenarios to manage the
SSA:– Executive Director only or part of their time– Shared Agency/SSA staff person– FT SSA Program Manager– Multiple staff support– Outsourced administration
Management – Service Providers
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• Commissioner– Dept. of Finance (DOF) Debt checks– Dept. of Consumer Services (DOCS) Child Support
Indebtedness Checks– City & County Boards of Ethics Stmts of Financial Interest
(mailed to commissioner after appointment)– Aldermanic & Mayor’s Office Application Review
• Service Provider– DOF & DOCS checks on President, Treasurer, Ex. Dir.– EDS for Agency Organization – list SSA subcontractors– Proof of Agency Organization in Good Standing with State
Vetting Overview
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2014 SSA Creation Timeline
Winter 2012
June 2013
Oct-Dec 2013
By Dec 2013
Jan 2014
Fall 2014
Resea
rch &
Consensu
s Build
ing
SSA Applicatio
n Submittal
Ordinance
s &
Commission Appts.
County Filin
g & Recording
Tax L
evy C
ollecte
d/
Distrib
uted
SSA Begins
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Making the SSA a realityLocal championsVision & Mission for the corridorsCoordinated SSA Development Plan
Financial support (reimbursable SSA cost)
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Mission & Vision Statements*MISSION: The West Humboldt Park Development Council, Alderman Walter Burnett, Jr,
and vested business and property owners, have combined their resources, in order to foster commercial revitalization, economic development and create a bold vision for the Chicago Avenue corridor and West Humboldt Park. The goal of West Humboldt Park Special Service Area (SSA) is to position the Chicago Avenue commercial corridor as a desirable, safe, pedestrian-friendly destination, which will attract residents and visitors more frequently, attract new businesses and commercial development, strengthen existing businesses, and improve the overall quality of life.
VISION: The West Humboldt Park Special Service Area is being created to promote and encourage investment and revitalization along the Chicago Avenue commercial corridor. It is funded through a special property tax levy to provide supplemental programs and services to the area that are above and beyond the services provided by the City of Chicago. The general boundary of the SSA includes both sides of Chicago Avenue between Albany on the east to Karlov on the west. Planned SSA services include maintenance programs, marketing campaigns, security, and other improvements that would benefit the commercial district. These services support efforts to promote investment and revitalization along the Chicago Avenue commercial corridor and to improve the overall quality of life in West Humboldt Park. SSA funding is controlled and directed locally by an SSA Commission comprised of local business and/or property owners. All funding stays within the SSA for local direct benefit. *Draft
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Chicago Avenue Existing Conditions Currently Chicago Avenue exhibits a need for
increased clean-up, security, and investment.
Chicago & St Louis
Chicago & Sawyer
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Chicago Avenue Existing Conditions Currently Chicago Avenue exhibits a need for
increased clean-up, security, and investment.
Chicago & Homan
Chicago & Hamlin
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Sample 3-Year SSA Budget$115,000 with 3% annual increase
Program Category Chicago Avenue SSA Estimated Budget Year 1 Year 2 Year 3
Advertising & Promotion 3,900 4,017 Public Way Maintenance 18,000 35,540 36,606 Public Way Aesthetics 5,000 5,150 5,305
Tenant Attraction/Retention 5,300 Façade Improvements 5,000
Parking / Transit / Accessibility Safety Programs 45,219 46,576 47,973 District Planning 30,000 10,000
Other Technical Assistance Personnel 12,781 13,164 13,559 Admin. Non-Personnel 2,000 2,060 2,122
Loss Collection (unpaid taxes) 2,000 2,060 2,122 115,000 118,450 122,004 SSA Budget 115,000 118,450 122,004 Tax Rate 1.16% 1.19% 1.23%Tax Rate Cap 1.50% 1.50% 1.50%
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Proposed SSA Geography
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Proposed SSA Parcels and EAV262 total parcels
21%
3%
8%
12%
22%
34%
2%8%
4%
24%61%
21%3%
8%12%
22%
34%
Exempt Single Family ResidentialMulti unit (Residential only) Vacant or Minimally Improved landMixed Use (Commercial and Residential) Commercial/Industrial
Parcel Distribution
EAV Distribution
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Total tax base and TIF impacts 2011 Total EAV
$15.3 million 2011 TIF Base EAV
$9.9 million
Because the SSA is 100% in TIF districts, SSA revenues can only collected from the TIF Base EAV
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SSA Tax and Rate Cap
Proposed Estimated 2014 SSA RateThis rate is for a $115,000 first year SSA budget.
2011 Tax Rate 5.455%
Est. Proposed SSA Rate 1.159%
New Est. Tax Rate 6.614%
Proposed SSA Rate CapThis rate is the maximum rate that
could be levied during the SSA’s 10 years.
1.500%
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Effects of 1.159% SSA Tax Rate% Increase in Tax Bill 21%Max. Tax Increase $6,700Average Increase for nonexempt (annual) $860Median Increase for nonexempt (annual) $440
Exempt <$250 $250 to 500 $500 to 750 $750 to 1250 $1250 to 2500 >$2500 -
10
20
30
40
50
60
70
56
40 46
42 39
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Distribution of Annual Property Tax Increases: $115,000 SSA Budget
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SSA Effects on Tax BillTotal Taxes due will increase by approx. 20% next year.
In this example, Total Taxes Due would be $5,742
An additional line will be added for the SSA with a rate of 1.159% and a maximum rate of 1.500%.
In this example, taxes for the SSA would be $1,007.
Total tax rate would increase to 6.614%.
Each installment would be approx. 20% higher.
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Summary Major areas of 2014 spending at $115,000 budget
Safety programs Cleaning/public way maintenance
Leverage source for grants etc. Future budgets
Refine future budgets based on stakeholder feedback
Plan to hold line of vendors as possible Some start up costs go away Potential future SSA services
• Marketing/Advertising• Façade rebate program (coupled with SBIF)
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Discussion