TIF Town Hall Presentation-2011

8/6/2019 TIF Town Hall Presentation-2011

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The Lawndale Alliance

Presents

The Time forTIF Reform is Now

TIF Town Hall Meeting and Training

Saturday, July 23, 2011



• This presentation is dedicated to the following persons: – Ms. Jacqueline Leavy, a local community activist, and former executive

director of the Neighborhood Capital Budget Group, for her leadership in

providing education, training and advocacy for grassroots organizations

seeking greater transparency in the City of Chicago’s capital budget,

transportation and TIF funding.

– Mr. Ben Joravsky, Columnist with the Chicago Reader. For years, Ben has

served as one of the few voices in the wilderness, raising questions on

matters concerning the TIF program, school finances and transparency in

our local government. Ben has played a prominent role in educating

leadership of the Lawndale Alliance on the impacts of the TIFs and has played a major role in making TIFs a household name in Chicago.

– Joe Ann Bradley, former North Lawndale resident and co-founder of the

Lawndale Alliance. Joe Ann has served on the board of the Neighborhood

Capital Group and was the first to discover an unhealthy pattern of potential

abuse of eminent domain with the Ogden Pulaski TIF.

Dedications



– Terrance Harrington – Jimmy Lee Lard

– Valerie F. Leonard

The Lawndale Alliance wishes to acknowledge the

following for making this town hall meeting a success

Acknowledgements



•What is a TIF?

• State Legislation

• City Ordinance

• 7 TIFs Impacting North Lawndale

–Cook County Summaries

– Goals

– Objectives

– Budgets

–Remaining Funds

– Projects

– What’s Missing?

• Where to Find Further Information

North Lawndale TIF Town Hall MeetingWhat We Will Cover



• TIF stands for Tax Increment Financing. In short, the TIFprogram is an investment in Chicago’s future that has alreadymade the city a better place to live and work.

• It works by promoting development of commercial, industrial,and residential sites across the city through public-privatepartnerships. (1)

• As of this publication there are 161 TIFs in the City of Chicago.

(1) Source: City of Chicago ABC’s of TIF

What is a TIF?



What is a TIF?

• Under state law, areas proposed for TIF designation mustpossess numerous blighting factors to be eligible:

– Age

– Obsolescence

– Code violations – Excessive vacancies

– Overcrowding of

facilities

– Lack of ventilation,

light, sanitary facilities – Excessive land

coverage

TIF Eligibility Factors

1) Source: City of Chicago website

– Inadequate utilities

– Deleterious land use or

layout – Lack of physical

maintenance

– Lack of community

planning

–

Dilapidation ordeterioration

TIF assistance for eligible projects usually exceeds $1 million.



– Neighborhood Improvement Program – TIFWorks

– Streamlined TIF

– Riverfront Improvement Fund

– Laboratory Facilities Fund

TIF Programs

Source: City of Chicago website.



NeighborhoodImprovement Program

• Program Overview The Tax Increment Finance-Neighborhood Improvement Program(TIF-NIP) is a Department of Housing andEconomic Development (HED) -administered program that has beenproviding home repair grants in eligibleTIF districts since 1999. The programprovides home repair grants for bothsingle and multi-family residences.Grants are primarily for exterior repairshowever, up to 30 percent of the grantmay be used for interior repairs that are

health and safety related. Grant amountsare based on the number of units perresidence.

• Single Family Program The single family program requires thathomeowners have a household incomeat or below 100 percent of the areamedian income (AMI). ($74,800 for a

family of 4 in 2011) If the householdincome is between 100% AMI -140%AMI, the homeowner must match, dollarfor dollar, the grant amount. ($74,800-$104,720 in 2011)

• Multi Family Program The multi family program requires that

building owners structure their rents sothey are affordable to households at orbelow 80 percent of AMI. (59,850 in2011)

• Program Administration HED works in collaboration with delegateagencies for administration of the TIF-NIP

program. The agencies are responsiblefor processing grant applications,providing assistance with determiningscope of work, aiding in contractorselection, as well as overseeing the repairwork and processing payments to thecontractors.

TIF ProgramsNeighborhood Improvement Program (NIP)




TIF ProgramsNeighborhood Improvement Program (NIP)


Single-Family Program

Units per Building Maximum Grant Amount

1 $12,500

2 $17,500

3 $20,000

4 $22,500

Multi-Family Program

Building Size Grant Amount Maximum GrantAmount

5 + unit buildings $5,000 per unit $100,000 per building



TIFWorks Program

• Stimulates business success by funding workforce-training costs for

companies located in tax increment financing (TIF) districts.

•With TIFWorks support, businesses can become better equipped to improveperformance and productivity, expand product lines and gain new customers.

• Since 2008 TIFWorks has provided $4.3 million in TIF funds to 84 business for

the training of 3295 employees and the hiring of 174 new employees.

If your company is located in an eligible TIF district in Chicago, you can receive

funding for workforce-training programs.

TIF ProgramsTIF Works




TIF ProgramsTIFWorks (Continued)


Your business benefits with trainingprograms that can help you:

•Develop and expand product lines

•Adapt to new technologies and equipment

•Comply with occupational or industry

regulations

•Expand into new markets

•Promote growth and increase profit

Your business may be eligible if:

•It is located in, expanding into, or

relocating to an eligible TIF district.•Training will make you more competitive

•Training fulfills a specific workforce need

•You are willing to se measurable goals and

can report on impact and performance

improvements after training

Eligible applicants include:

•Employer or a group of employer with

common needs

•Business or industry association

•Labor organization

•Educational institution

•Non-profit organization that will train and

place Chicagoans in businesses located in

eligible TIF districts

Types of training can include:

•

Negotiation and sales•Technology skills

•Leadership and management

•Safety

•Communications and language skills



TIF ProgramsStreamlined Tax Increment Financing


Streamlined Tax Increment FinancingGrants are paid in annual installments to participants following projectcompletion. The grants do not have to be repaid. Expenses eligible for TIFgrants include:

•Land acquisition, clearance and site preparation•Certain environmental remediation measures•Building rehabilitation and repair•Signs or awnings that are permanently affixed to the building•

Rehabilitation and remodeling of existing tenant improvements•Streets, streetscaping and other public infrastructure improvements•Professional fees related to the redevelopment project•Up to 30 percent of an applicant's construction period interest costs•Job training and Welfare-to-Work programs



TIF ProgramsRiverfront Improvement Fund (RIF)


Riverfront Improvement FundThe highest level of assistance is provided to industrial landowners fordevelopment of riverbank structures (short steel pilings that retain a slopedriverbank planted with native vegetation).

The Riverfront Improvement Program (RIF) facilitates the rehabilitation orreplacement of deteriorated riverwall structures by providing assistance to

riverfront property owners. Riverwall structures are privately owned and

maintained but border the public waterway.

Only landowners can submit applications. Projects must be located along the

Chicago River or Sanitary and Ship Canal and must be located in a TIF district.

Assistance will be provided in a lump sum at project completion, except for a

reserve to assure the successful establishment of required landscaping



TIF ProgramsLaboratory Facilities Fund (LFF)


Laboratory Facilities FundThe Laboratory Facilities Fund program is intended to promote the growth of

“second-stage” or “graduate” technology firms by funding up to 25 percent of

eligible base lab construction costs.

Assistance up to $1.4 million is provided as a conditional grant at project

completion.

The LFF is specifically targeted at Chicago companies involved in:

•Nanotechnology

•Biotechnology•Medical devices and services

•Environmental technology

•Food technology

•Pharmaceuticals

•

and other related technologies



• Enabling Legislation – Economic Development Project Area Tax Increment Allocation Act of 1995

• Pending Legislation – Illinois Prevailing Wage Act-Based on the Davis-Bacon Act (covering public works construction

contracts)

–

Federal construction contracts over $2,000 must have a clause setting forth theminimum wages and fringe benefits to be paid to various classes of laborers andmechanics employed under the contract.

• Illinois Prevailing Wage Act requires contractors and subcontractors to pay laborers,workers and mechanics employed on “ public works” projects in Illinois no less than thegeneral prevailing rate of wages for similar work in the county where the work isperformed.

– Includes all publicly funded construction projects for schools, roads, transportation,

sports facilities, airports, renewable fuels (any work done on state property or withstate

• HB0063, SB0043

– Amends the Prevailing Wage Act to include definition of “public works” as projectslocated in Empowerment Zones and TIFS

– Does not include projects at an owner-occupied single family residence or owner-occupied multi-family residence located in an enterprise zone or economicdevelopment project area.

–

Status : Introduced January, 2009; Currently in Rules Committee

State Legislation



• Proposed TIF Reform Bills – SB1625

• Amends the Illinois State Auditing Act. Provides that no later than June 30, 2012,the Auditor General shall conduct financial and compliance audits of all taxincrement financing districts located within the City of Chicago. Effectiveimmediately.

•

Status: Referred to Assignments Committee 3/18/11

– HB6903• Amends the Tax Increment Allocation Redevelopment Act in the Illinois

Municipal Code. Provides that all accumulated tax incremental revenues notspecifically appropriated for defined costs for projects within a redevelopmentproject area by the end of a municipality's fiscal year shall be deemed "surplus"

funds. Provides that all surplus funds in the special tax allocation fund shall bedistributed annually within 60 (instead of 180) days after the close of themunicipality's fiscal year. Effective immediately.

• Status: Session Sine Die 1/11/11

Source: ilga.gov

State LegislationContinued



• Proposed TIF Reform Bills – HB 6904

• Amends the Tax Increment Allocation Redevelopment Act in theIllinois Municipal Code. Provides that the portion of taxes levied bya school district located in a redevelopment project area that is (i)

established by the City of Chicago on or after the effective date of the amendatory Act or (ii) established by the City of Chicago priorto the effective date of the amendatory Act and extended by theGeneral Assembly on or after the effective date of the amendatoryAct shall be allocated and paid to the school district in the mannerrequired by law in the absence of the adoption of tax increment

allocation financing. Effective immediately.

Source: ilga.gov

State LegislationContinued



• TIF Sunshine Ordinance (April 22, 2009) – Effective July 30, 2009, the following TIF-related documents for each active TIF

district shall be made publicly available on the City of Chicago, Department of Community Development website (for TIFs created on or after July 30, 2004):

• The ordinances establishing each TIF district, including all attachments, and

any amendments thereto;

• The ordinances authorizing each TIF redevelopment agreement, includingany attachments, any amendments thereto and accompanying EconomicDisclosure Statements;

• Written staff reports presented to the Community Development

Commission related to TIF-funded projects;

• TIF overviews prepared by the Department of Community Developmentand annual reports prepared pursuant to 65 ILCS 5/11-74.4-5(d);

• City-issued Certificates of Completion and any required annual employmentcertifications prepared pursuant to TIF redevelopment agreements.

City Ordinance



•

Mayor Emanuel indicated during his campaign that he wouldoverhaul Chicago’s TIF system. To this end, he created a taskforce on TIF reform to bring transparency, accountability andefficiency to the TIF system. The primary outcomes includenew jobs and new economic development.

• The task force is charged with: – Crafting an overarching TIF policy with formal guiding principles.

Accountability starts with a clear statement of goals; – Developing Return on Investment criteria that can be used to

measure TIF performance and establish criteria to judge TIFsuccess or need for reform;

– Recommending concrete steps for increasing TIF transparency –

by making TIF information easily accessible to taxpayers onlineand by incorporating TIF information into the City’s main budget; – Evaluating the role that the TIF program plays in the overall City

budget.

Source: City of Chicago website

Mayor Emanuel’s TIF Reform



• The Mayor also announced that TIF data will beeasily accessible to Chicagoans onlineat www.cityofchicago.org/TIF. Data on TIFbudgets that has formerly been in PDFs has

been put into machine-readable format andnew data has been added so that every citizencan sift through it. “I am calling on allChicagoans to engage in this process,” said the

Mayor. “Take a look at the website and submityour ideas for improving TIF data availability, ortell us how you think the TIF investmentprocess could be improved.”


Mayor Emanuel’s TIF Reform

http://www.cityofchicago.org/city/en/depts/dcd/provdrs/tif.html





•The TIF Projection Report is a three-year planning documentused to evaluate resources and project balances to determinehow much funding has been committed and how much fundingis available for potential projects in each of the City’s TIFdistricts.

• The TIF Projection Report provides estimates of TIF revenueand expenditures in each TIF district in the City of Chicago overa three-year period on a cumulative basis.


TIF Projection Report



• Homan-Arthington• Roosevelt-Homan

• Midwest

• Western-Ogden Industrial

• Roosevelt-Cicero Industrial

• Ogden-Pulaski

• 26th-Kostner (retired) (immediately south of the

north Lawndale community) – Replaced by Kostner Avenue TIF

7 TIFs Impact North Lawndale



• Boundaries

ParticularsSponsors-City of Chicago; ShawCompanies

Consultant-S.B. Friedman &Company

Ward-24

Date Created-2/5/98

Termination-2/5/21

Commercial, Residential

Interdependent with Homan-Roosevelt TIF

TIFWorks Eligible

Project GoalsReduce or eliminate conditions thatqualify the area as a blighted orconservation area

Increase the value of taxable parcelswithin the Redevelopment Project Area

Provide opportunities for women andminority businesses to share in theredevelopment of the Project Area

Replace or repair all infrastructure tofacilitate the construction of new housing

Rehabilitate and upgrade existingcommercial structures

Generate resources for the acquisition of vacant parcels, clearance of blightedimprovements and environmentalremediation

Homan-Arthington TIF



• Funds Expended to Date – Revenue for Tax Year 2010- $550,696

–

Expenditures for Tax Year 2010-$248,466 – Revenue Since Inception-$5,276,914

– Fund Balance 12/31/10- $4,469,430

– % to TIF in 2009-82%

– % in General Fund 18%

– Beginning EAV $2,658,362

– 2009 EAV-$14,771,531

– 2008 EAV-13,638,080

– % Growth in EAV-$551%

• BudgetProject Type Amount

Professional

Services/Administration $150,000

Property Acquisition, Site Prep,

Demolition, Environmental $200,000

Rehabilitation of Existing

Buildings $2,150,000

Public Improvements $7,000,000

Job Training $500,000

Total: $10,000,000

Major ProjectsSterling Park -2007

Private Funding-$299,237,601

TIF Funding-$28,000,000

Job Training

2006- $199,6282007-$120,000, Collectors TrainingInstitute

Homan Square

Renovation of the Sears CatalogBuilding

Renovation of the Sears Complex

Projects in the District*Power House Charter High School

Homan Square Community Center

Homan Square Park

*Reportedly not TIF-Funded




• Construction on Sterling Park was

expected to begin in, 2007. Theproject has been delayed.

• As of July 23, 2011 tenants are

moving out of the building inpreparation for major construction.When completed, the complex willoffer, 1,200 units in one, two andthree bedroom layouts as well assenior housing, town homes and a

parking structure containing morethan 600 parking spaces.

Source: Royal Imperial Group websitehttp://www.royalimperial.com/featured.asp#


This project no longer appears in the Homan-

Arthington TIF Annual Report. Further exploration is

necessary to see if the funds are still committed.

http://www.royalimperial.com/featured.asp






Name Service Amount

City Lights, Ltd./ZSL

Electric

Public Improvement $12,536

Chicago Dept. of

Transportation


Yas Architecture Public Improvement $72,996

Chicago Dept. of

General Services


Collectors Training

Institute


List of Vendors Paid in Excess of $10,000 in 2010




Projected Expenditures 2011-2013

Item Year Amount

Incremental Property Tax Revenue (95% Collected) 2011 532,500.00$



Unallocated Funds (Jan-11) 2011 2,399,663.00$

Program Administration 2011 (12,200.00)$



Disposition Services 2011 (200,000.00)$

Police Forensics Lab Renovations 2011 (2,000,000.00)$

Projected Balance 2013 1,799,563.00$

Source: Homan-Arthington TIF Projection Report 2011-2013



• Boundaries

ParticularsSponsors-City of Chicago;

Consultant- Louik/Schneider &Associates

Wards-24, 28

Date Created-12/5/90Termination-12/5/2013


Interdependent with Homan-Arthington TIF

TIFWorks Eligible

Project GoalsFoster redevelopment of the areawith commercial and mixed incomeuses.

Funds from the district are intendedto assist with

redevelopment costs associatedwith infrastructure

land acquisition

site improvements

certain interest costs.

Primary goal: develop commercialcomplex on Roosevelt Road

Predominantly on vacant land,but also involving structuresthat are suitable for

rehabilitation

Roosevelt-Homan TIF



• Funds Expended to Date – Fund Balance 12/31/10- $7,389,750

– % to TIF in 2010-88% – % to General Fund in 2010-12%

– Revenue Since Inception-$9,390,363

– Total Revenues for 2010-$1,293,844

– Total Expenditures for 2010-$300,819

– Beginning EAV- $3,536,018

– 2009 EAV-$31,153,034

– 2008 EAV-$24,883,022

– % Growth in EAV-709%

•

Budget Major ProjectsRoosevelt Tower 1, LLC-2006

Private Investment-$17,021,867

TIF Assistance $1,540,033

Neighborhood Improvement Program-2006


TIF Assistance-$1,000,0002008 Rehabilitation Program-$614,375

Cineplex-Odeon/ICE Theater-1997

Private Investment- $7,018,000

TIF Assistance Committed-$3,335,000

TIF Funds Expended to Date-$1,116,003

50 Jobs Promised

Projects in the District*Starbucks (closed)

Dominick’s (closed)

Hollywood Video(closed)

Project Type Amount

Prof. Services/Administration $300,000


Demolition, Environmental $900,000

Public Improvements $800,000

Financing/Interest Subsidy $200,000

Contingencies $200,000

Total: $2,400,000

*Whether these projects received TIF assistance or not needs to

be verified.

Roosevelt-Homan TIF

R l H TIF



•

The City of Chicago has authorized up to $1 million for Roosevelt/Homansingle- and multifamily TIF-NIP programs.

• Neighborhood Housing Services of Chicago, Inc. (NHS) and CommunityInvestment Corporation (CIC) administer the Roosevelt/Homan NIP.

– NHS administers the program for single family programs

•The single-family programs offers matching grants of up to $17,500to qualified owner/occupants of one-to-four unit properties forexterior repairs and limited interior improvements to helprehabilitate their properties.

– CIC administers the program for multi-family programs

• The multifamily program provides matching grants to propertyowners with five or more units, up to $10,000 per unit and abuilding maximum of $100,000. The homes must be located withinthe TIF boundaries.

Roosevelt-Homan TIFNeighborhood Improvement Program (NIP)



Vendors Paid in Excess of $10,000 in 2010

Roosevelt-Homan TIF

Source: Roosevelt-Homan TIF Projection Report 2011-2013

Name Service Amount

City Staff Costs Administration $16,537

HNTB Corporation Public Improvement $48,047Seven D

Construction


Touch N Go

Landscaping


Roosevelt Towers I,

LLC

Development $67,885



Projected Expenditures 2011-2013

Roosevelt-Homan TIF

Item Year Amount

Incremental Property Tax Revenue (92% Collected) 2011 $ 1,175,500.00



Unallocated Funds (Jan-11) 2011 $ 3,144,634.00Program Administration 2011 $ (20,100.00)

Program Administration 2012 $ (20,500.00)


Roosevelt Towers RDA Payments 2011 $ (69,240.00)



Neighborhood Improvement Program 2011 $ (500,000.00)

Small Business Improvement Fund 2011 $ (500,000.00)

Projected Balance 2013 $ 5,478,824.00

Source: Roosevelt-Homan TIF Projection Report 2011-2013



•

Boundaries•

Major Project Goals – Retain and enhance sound andviable existing residences,businesses and industries within theProject Area

– Attract new residential, business,commercial, retail and institutional

development and the create new job opportunities within the ProjectArea.

– Employ residents from within theProject Area and adjacentcommunities and project areas.

– When appropriate, developers andbusinesses should make themselvesavailable to the City and/or localcommunity groups and traininginstitutions to identify, pre-screenand provide pre-employmenttraining to local residents

ParticularsSponsors-City of Chicago;

Consultant- Trkla, Pettigrew, Allen

& Payne, Inc.Wards-2,12,24,27,28

Date Created-5/17/00

Termination-5/17/23


TIFWorks Eligible

Midwest TIF



Midwest TIF

• Funds Expended to Date – Fund Balance as of 12/31/10-$41,898,970

– % to TIF in 2008-78%

– % in General Fund-22%

– Total Revenues Since Inception-$116,779,423

– Total Revenues 2010-$14,966,779

– Total Expenditures 2010-$6,460,307

– Total Porting to Other TIFs-$5,514,401

– Beginning EAV-$98,090,835

– 2007 EAV-$386,995,198

– 2008 EAV- $419,158,279 – % Growth in EAV-327%

• Budget

Major ProjectsMidwest SBIF-1999-Present



SBIF 2011 Allocation-$275,448

Midwest NIF-1999-Present

Private Investment-$11,500,000TIF Funding-$5,750,000

NIF 2011 Allocation-$1,306,812

Liberty Square Apartments-2006



2011 Allocation-$106,222New West Kedzie, LLC-2006

Private Investment-17,744,426

TIF Funding-$$3,500,000

2011 Allocation-$214,200

New Homes-Resurrection-2010

TIF Funding-$350,000

Project Type Amount

Professional Services/Administration $3,500,000

Property Acquisition, Site Prep, etc. $20,500,000

Rehabilitation of Existing Buildings $22,000,000


Relocation Expenses $2,500,000 Job Training $5,000,000

Financing/Interest Subsidy $2,000,000

Day Care $2,000,000

Total: $100,500,000



Major Projects, ContinuedRockwell West End-2010 (690 Units)



Lawndale Restoration Apartments-2006


(increase of $2M over 2007)TIF Funding-$8,950,000

Renaissance Place-2006



Collins High School-2006

Private Investment-1,488,744TIF Funding-$30,300,000

Two Multi-Family Buildings on DouglasBoulevard, (Per note from Kim Jackson, June4, 2009)

Private Investment-N/A


Midwest TIF



• Major Projects, Continued – Martin Luther King Jr., Legacy Apartments-2008

• $17,457,651 total costs – $2,000,000 TIF funds

– $15,457,651 private funds (which could include other publicsubsidies)

– Inter-governmental Agreement with Chicago PublicSchools-$750,000 to make schools accessible to

people with disabilities.

Midwest TIF



• Budget increased by $32 million April 14, 2010

– Greatest increases occurred in the Day Care, Financing/Interest Subsidy and RelocationExpenses line items

Midwest TIF

Lawndale Christian



• Minority Business Enterprise (Certified)

– 44%

• Women Business Enterprise (Certified)

– 5%

• City Hires – 72%

• Non Certified African American

• Contractors by Trade

– Plumbing 50%

– Roofing 100%

– Demolition 100%

– Carpentry 75%

– Landscaping 100%

– Painting 100%

–

Low voltage wiring100%

Lawndale Christian

Development Corporation

Mid t TIF



•

Midwest I-$750,000 – Total Granted: $698,559

– 24 Grants , from $5,000-$129,250

– Average Award -$29,106

– Total Project Costs-$1,325,709

– Project Range $10,000-$235,000

• Average Project Size-$55,238• Leverage-1.9:1

(Total Project Costs/Total Granted)

– 4 Multi-Phase Projects

– 11 Businesses Assisted (funds in-hand)

– 9 Minority-Owned Businesses

•7 African American

• 2 Asian American

– 2 Women-Owned Businesses (incl.above)

– Industries Represented

• Health Care-Clinic, Social Service

•

Restaurant• Dry Cleaning

•Midwest II-$750,000 – Total Granted-$699,225

– 8 Grants, from $5,000-$150,000

– Average Award-$87,403

– Aggregate Project Costs-1,403,000

– Project Range-$21,300-$342,200

• Average Project Size-$175,438• Leverage-2:1

– No Multi-Phase Projects

– 8 Businesses Potentially Assisted

– 8 Minority-Owned Businesses

• 8 African American

– Industries Represented• Health Care-Retail Pharmacy

• Insurance

• Service-Car Wash/Detail

Source: City of Chicago SBIF Monthly AccountReport 2/8/08

Midwest TIFSmall Business Improvement Fund (SBIF) As of 2/2/08

Mid t TIF



•

The City of Chicago has authorized up to $3.5 million in the Midwest TIF forthe Neighborhood Improvement Program (NIP)

• Neighborhood Housing Services of Chicago, Inc. (NHS) and CommunityInvestment Corporation (CIC) administer the Midwest NIP.

– NHS administers the program for single family programs• The single-family programs offers matching grants of up to $17,500

to qualified owner/occupants of one-to-four unit properties forexterior repairs and limited interior improvements to helprehabilitate their properties.

– CIC administers the program for multi-family programs• The multifamily program provides matching grants to property

owners with five or more units, up to $10,000 per unit and abuilding maximum of $100,000. The homes must be located withinthe TIF boundaries.

Midwest TIFNeighborhood Improvement Program (NIP)

Mid t TIF



•

As of June, 2006, the City of Chicago Department of Housingand Department of Planning and Development committed $1million in TIF funding through its TIF NeighborhoodImprovement Program to help fund grants for homeowners inthe Greystone Initiative.

• Questions regarding this program and progress to date shouldbe directed to Mr. Charles Leeks at 773-522-4637 [email protected]

Source: NHS website, http://www.nhschicago.org/content/news.php?news_id=14

Midwest TIFGreystone Initiative

Mid t TIF

http://www.nhschicago.org/content/news.php?news_id=14

http://www.nhschicago.org/content/news.php?news_id=14



• $1 Billion Plan to build 24 new schools andrenovate three others (2006)

– West Side Schools

• New Westinghouse High School

• Collins High School Renovations (Midwest TIF-$30.3MM) – Approximately half of the funds were expended in 2008

• Austin High School Renovations

Midwest TIFModern Schools Across Chicago Initiative

Mid t TIF



*In addition to $4,000,000 in 2007

** To be applied towards the Collins HS Capital

Improvement Plan

*** Job Training

Midwest TIFVendors Paid in Excess of $10,000 in 2010

Name Service Amount


Johnson Research Group Professional Services 17,780

New West Kedzie, LLC Development 163,717

My BAPS Construction Co. Remediation 6,943

Lawndale H&A Bond, LLP Development 1,000,000

Summit Construction Co. Public Improvement 284,181

Seven D Construction Public Improvement 54,288

Oosterbann & Sons Public Improvement 12,953

Mid t TIF





Improvement Plan

*** Job Training


Name Service Amount

City Lights/ZSL Electric Public Improvement $94,121

Chicago Dept. of

Transportation

Public Improvement 63,789

Globetrotters Engineering Public Improvement 14,462

Electrical Resource Mngt. Public Improvement 69,193

URS Group Public Improvement 49,214

Dept. of Streets/Sanitation Public Improvement 19,758

Chicago Board of Education Public Improvement 986,486

CARA Program Job Training 50,000

Mid t TIF





Improvement Plan

*** Job Training


Name Service Amount

The Roscoe Co. Job Training $56,560

CCA Academy Job Training 16,779

St. Anthony Hospital Job Training 12,763

Touch N Go Landscaping Job Training 135,550

Harris Trust and Savings Financing 967,723

Wells Fargo Bank Financing 2,118,431

Midwest TIF





Improvement Plan

*** Job Training

Midwest TIFTIF Projection Report

Item Year Amount




Unallocated Note Proceeds (Jan-11) 2011 $ 77,299.00

Unallocated Funds (Jan-11) 2011 $ 16,382,517.00

To Chicago/Central Park (Modern Schools - Westinghouse) 2011 $ (87,272.00)

To Chicago/Central Park (Modern Schools - Al Raby) 2011 $ (227,115.00)

To Madison/Austin (Modern Schools - Austin HS) 2011 $ (1,392,500.00)

To Madison/Austin (Modern Schools - DePriest Elem.) 2011 $ (984,105.00)

To Chicago/Central Park (Modern Schools - Westinghouse) 2011 $ (1,330,052.00)

To Madison/Austin (Modern Schools - DePriest Elem.) 2012 $ (1,365,902.00)


To Chicago/Central Park (Modern Schools - Al Raby) 2012 $ (227,477.00)

To Madison/Austin (Modern Schools - Austin HS) 2012 $ (1,392,500.00)


To Madison/Austin (Modern Schools - DePriest Elem.) 2013 $ (1,363,352.00)

To Chicago/Central Park (Modern Schools - Al Raby) 2013 $ (196,452.00)Modern Schools DS - Collins 2011 $ (2,323,700.00)

Debt Service - Taxable Note Series 2002 2011 $ (1,300,000.00)

Modern Schools DS - Collins 2012 $ (2,004,300.00)

Modern Schools DS - Collins 2013 $ (2,797,550.00)

CPS ADA Renovations Ph.1 - Dodge 2011 $ (750,000.00)

CPS ADA Renovations Ph.2 - Lawndale 2012 $ (2,500,000.00)


Program Administration 2012 $ (264,500.00)Program Administration 2013 $ (269,800.00)

Midwest TIF





Improvement Plan

*** Job Training

Midwest TIFTIF Projection Report

Item Year Amount

Street Resurfacing - Roosevelt, St. Louis to Central Park 2011 $ (180,460.00)Pedestrian Countdown Signal - California & Madison 2011 $ (24,000.00)Streetscape - Western Av. Ph.1, VanBuren to Monroe 2011 $ (2,000,000.00)Street Resurfacing - Madison, Kedzie to Central 2011 $ (75,000.00)Alley Resurfacing - Warren, Washington, Francisco, Sacramento 2011 $ (73,320.00)Street Resurfacing - Adams, California to Washtenaw 2011 $ (53,890.00)Liberty Square Apts. RDA Payments 2011 $ (106,220.00)

Heritage Homes RDA Note Payments 2011 $ (163,720.00)Heritage Homes RDA Note Payments 2011 $ (214,200.00)Heritage Homes RDA Note Payments 2012 $ (218,480.00)Liberty Square Apts. RDA Payments 2012 $ (43,950.00)Heritage Homes RDA Note Payments 2013 $ (222,850.00)Liberty Square Apts. RDA Payments 2013 $ (44,830.00)Small Business Improvement Fund 2011 $ (500,000.00)Small Business Improvement Fund 2012 $ (500,000.00)

Job Training - Clean Slate 2011 $ (149,913.00)Neighborhood Improvement Program 2011 $ (1,000,000.00)Vaulted Sidewalk Fill-In - 2 locations 2011 $ (60,000.00)Sinai RDA Closing & COC Payments 2012 $ (6,000,000.00)Rockwell West End - Phase II A Rental 2011 $ (201,000.00)Rockwell West End - Phase II A Rental 2012 $ (201,000.00)Rockwell West End - Phase II A Rental 2013 $ (201,000.00)Projected Balance 2013 $ 21,166,102.00

Western Ogden TIF



•

Boundaries•

Project Goals – The TIF was created to foster a wide

range of job-generating businessdevelopments and investmentprojects.

–

The TIF is targeted for buildingrehabilitation costs, environmentalremediation activities, propertyassembly efforts, public worksupgrades involving streets andutilities, and job training programs.

– The TIF has or will utilize a minimumof $7 million in public dollars toattract a minimum of $14.4 millionin private investment.

ParticularsSponsors-City of Chicago

Consultant- Trkla, Pettigrew, Allen& Payne, Inc.

Wards-2,12,24,25,28

Date Created-2/5/98

Termination-2/5/21

Use-Industrial

TIFWorks Eligible

Western-Ogden TIF

Western Ogden TIF



• Budget• Major Projects

– Orozco Middle School -2009

• Ordinance authorizes DCD to enterinto an Intergovernmental Agreement(IGA) with the Board of Education.

– Construction of a health clinicinside Orozco Middle School,located at 1940 W. 18th St. in

the 25th Ward – Private Investment-$231,148

– TIF Funding-$250,000

– Chicago Christian Industrial League/BuildingSolutions-2006

• Private Investment-$14,400,000

• TIF Funding-$7,022,900Funds Expended to Date

Fund Balance -12/31/10-$12,316,463% to TIF in 2010-80%

% to General Fund in 2010-20%

Total Revenues to Date-$39,014,986

2010 Revenues-$7,480,950

2010 Expenditures-$3,009,780

Beginning EAV-$41,536,306

2010 EAV-$211,250,443% Growth in EAV-498%

Project Type Amount





Relocation Expenses $16,356,000 Job Training $7,300,000

Financing/Interest Subsidy $1,000,000

Total: $80,851,517

Employment Data (2001)Presently, the Western/Ogden IndustrialCorridor houses 86 firms, employs 5,887individuals and generates $1.1 billion inannual sales

Western-Ogden TIF

Western-Ogden TIF



Vendor Service AmountCity Staff Costs Administration $79,709

Leopardo Construction Public Improvement 662,725

Chicago Industrial League Development $1,511,268

National Power Rodding

Corporation


The Hauser Group Public Improvement 150,191

Chicago Dept. of General Services Public Improvement 122,075

Production Distribution Cos. Public Improvement 20,666

Electrical Resource Mgt Public Improvement 10,560Uhlich Childrens Advantage Corp. Job Training 28,921

Midwest Folding Products Job Training 11,820

Pilsen Little Village Job Training 17,203

Touch N Go Landscaping Job Training 53,536

Western Ogden TIFVendors Paid in Excess of $10,000 in 2010

Western-Ogden TIF



Western Ogden TIFProjected Revenues and Expenditures 2010 -2013

Item Year Amount

Incremental Property Tax Revenue (90% Collected) 2011 $ 7,067,400.00Incremental Property Tax Revenue (90% Collected) 2012 $ 7,067,400.00Incremental Property Tax Revenue (90% Collected) 2013 $ 7,605,800.00


Livingston Field Improvements 2011 $ (3,000,000.00)

CPS ADA Renovations Ph.2 - Plamondon 2012 $ (1,748,000.00)Program Administration 2011 $ (135,100.00)



GO Reimbursement - Police District 12 2011 $ (1,875,639.00)

Alley Resurfacing - Harrison, Flournoy, Maplewood, Campbell 2011 $ (48,814.00)

Street Resurfacing - 15th, Paulina to Wood 2011 $ (261,260.00)

City Facility Renovations - 2350 W. Ogden 2011 $ (50,000.00)

Lighting - Wood, Roosevelt to 12th; 13th, Wood to Paulina 2011 $ (13,650.00)CCIL RDA Note #1 Payments 2011 $ (273,830.00)

CCIL RDA Note #2 Payments 2011 $ (481,800.00)


CCIL RDA Note #2 Payments 2012 $ (481,800.00)CCIL RDA Note #1 Payments 2013 $ (273,830.00)


Small Business Improvement Fund 2011 $ (500,000.00)Small Business Improvement Fund 2012 $ (500,000.00)

ADA Ramps (2) 2011 $ (14,600.00)

Vaulted Sidewalk Fill-In - 4 locations 2011 $ (120,000.00)

Cinespace RDA Payments 2013 $ (5,000,000.00)


Roosevelt Cicero TIF



•

Boundaries•

Project Goals – Support existing employers and spur

industrial employment through theredevelopment of abandoned andunderutilized properties within theNorth Lawndale community.

– Facilitate the assembly and preparation

of vacant land and provide rehabilitationassistance and infrastructure investmentto aid business viability.

– Provide

• assorted roadway improvementsthat facilitate the movement of trucks and other vehicles

• access improvements that enablelocal businesses to operateeffectively

• utility upgrades


Consultant- Louik/Schneider &

AssociatesWards-24,29

Date Created-2/5/98

Termination-2/5/21

Uses-Industrial, Commercial

TIFWorks Eligible

Roosevelt-Cicero TIF

Roosevelt Cicero TIF



• Budget•

Major Projects – SBIF 2010

• Private Funding-2,000,000

• TIF Funding-1,000

•

2011 Allocation-$333,333

Funds Expended to DateFund Balance 2010-$11,969,384

% to TIF in 2010-56%

% to General Fund-44%

Total Revenue Since Inception-$15,745,312

2010 Revenues-$2,549,068

2010 Expenditures-$293,854


2010 EAV-$101,937,135

% Growth in EAV-214%

Employment Data (2001)The Roosevelt/Cicero Industrial Corridorhouses 88 firms, employs 4,663 individualsand generates $1.2 billion in annual sales. #Jobs Created by TIF Projects-N/A

Project Type Amount





Relocation Expenses $2,000,000

Job Training $5,000,000

Financing/Interest Subsidy $500,000

Total: $55,000,000





Roosevelt Cicero TIFVendors Paid in Excess of $10,000 in 2010

Name Service Amount


Dept. of Transportation

Public Improvement 17,010

Meade Electric Co. Public Improvement 36,860

The Cara Program Job Training 35,365

New Age ServicesCorp.

Job Training 106,210

Gatto Industrial Platers Job Training 52,682




Roosevelt Cicero TIFProjected Revenues and Expenditures 2011-2013

Item Year Amount





To Harrison/Central (Loretto Hospital) 2012 $ (375,000.00)

To Harrison/Central (Loretto Hospital) 2013 $ (375,000.00)




Street Restoration - Polk, Leamington to Lavergne 2011 $ (750,000.00)

Small Business Improvement Fund 2011 $ (500,000.00)

Small Business Improvement Fund 2012 $ (500,000.00)Land Disposition Services 2011 $ (50,000.00)

Job Training - Clean Slate 2011 $ (149,913.00)


Ogden Pulaski TIF



• Boundaries• Project Goals

– Community that is stable, economically and raciallydivers, secure and beautiful

– Comprehensive housing program that serveshomeowners and renters of all income groups

– Revitalized commercial base highlighted by OgdenAvenue as the main corridor

– Preservation and enhancement of historic orarchitecturally significant buildings in the ProjectArea

– New investment and development opportunities

ParticularsSponsors/Developers-City of Chicago,LISC, Steans Family Foundation, LCDC

Consultant- Johnson Research Group

Wards-24,22

Date Created-4/9/08

Termination-4/9/33

Uses-Residential,Commercial

TIFWorks Eligible

There are approximately 173 blocks133 blocks (77%) are in the 24th Ward

40 blocks (23%) are in the 22nd Ward

Ogden-Pulaski TIF

Ogden Pulaski TIF



• Budget• Major Projects

– Actual• SBIF 2010

– Private Funding-$2,000,000

– TIF Funding-$1,000,000

–

2011 Allocation-$333,333 – Speculative

• Lawndale Corridor InitiativeConcept, July, 2008

• Projects outlined in February,2008, Gaper’s Block Interviewwith Alderman Munoz

– CTA Bus Barn

– Open Space

– Senior Housing

– Industrial Corridor

Funds Expended to Date

2010 Fund Balance-$3,860,030% to TIF in 2010-21%

% to General Fund in 2010-79%

Revenues Since Inception-$3,923,452

2010 Revenues-$2,354,679

2010 Expenditures-4$1,934

Beginning EAV- $216,455,015

2010 EAV- $289,789,402% Growth in EAV- 33%

Project Type Amount

Analysis, Administration, Studies, et $7,500,000




Relocation Expenses $5,000,000

Job Training/Welfare to Work $2,500,000

Day Care Services $6,000,000

Interest Subsidy $4,000,000

Total $100,000,000

Ogden-Pulaski TIF

Ogden-Pulaski TIF



Ogden Pulaski TIFProjected Revenues and Expenditures 2011-2013

Item Year Amount

Incremental Property Tax Revenue (100% Collected) 2011 2,736,900.00

Incremental Property Tax Revenue (100% Collected) 2012 2,736,900.00Incremental Property Tax Revenue (100% Collected) 2013 3,531,500.00

Unallocated Funds (Jan-11) 2011 3,755,053.00

Neighborhood Improvement Program 2011 (500,000.00)

Neighborhood Improvement Program 2012 (500,000.00)

Program Administration 2011 (24,700.00)

Program Administration 2012 (25,200.00)

Program Administration 2013 (25,700.00)Street Resurfacing - Lawndale, Cermak to Ogden 2011 (49,040.00)

Green Alley - Grenshaw/ Roosevelt/ Keeler/ Kildare 2011 (287,000.00)

Reimbursement for TIF Eligibility Study 2011 (100,000.00)

Lighting - Cullerton, Pulaski to Keeler 2011 (130,000.00)

Street Resurfacing - Kevdale, 16th to 18th 2011 (48,904.00)

Lighting - Ridgeway Av., 16th to Ogden 2011 (195,000.00)

Lighting - Komensky, Roosevelt to 19th 2011 (390,000.00)

Small Business Improvement Fund 2011 (500,000.00)Small Business Improvement Fund 2012 (250,000.00)

Small Business Improvement Fund 2013 (250,000.00)

Residential Lighting - Drake, Ogden to Cermak 2011 (100,000.00)

Alley Reconstruction - 13th St, Karlov, Kedvale, 14th St. 2011 (219,000.00)

Residential Lighting - Harding, 16th to Ogden 2011 (260,000.00)

Residential Lighting - Lawndale, 16th to Ogden 2011 (195,000.00)Alley Construction - Cullerton, Kildare, 21st St, Kostner 2011 (295,000.00)

Projected Remaining Balance 2013 8,415,809.00

Ogden Pulaski TIF



Example Site:

West Ogden Avenue and S. Millard Street

6-Story, Mixed Use Development

Residential Space

80,720 SF

30% Affordable

Commercial Space

4,828 SF

5 Small Retail Stores

Total Cost:

$18.4 Million

Loss:

$100,000

Residential Space

68,000 SF

20% Affordable

Commercial Space

13,600 SF


Total Cost:

$16.6 Million

Loss:

$340,000

Example Site:

West Ogden Avenue and N. Millard Street

5-Story, Mixed Use Development

Ogden-Pulaski TIFLawndale Corridor Development Initiative Project Concepts

Ogden Pulaski TIF



Example Site:

19th Street and Pulaski

3-5-Story, Mixed Use Development

Residential Space

95,000 SF

20% Affordable

Commercial Space

8,160 SF


Total Cost:

$22.2 Million

Loss:

$645,000

Ogden-Pulaski TIFLawndale Corridor Development Initiative Project Concepts

26th & Kostner TIF



•

The 26th

& Kostner TIF was retired in 2008 due tolack of investment

• The Kostner Avenue TIF replaces the original 26th & Kostner TIF

– Northern border moved from approximately 2400south to 25th Street, which is beyond the NorthLawndale Community Area

26 & Kostner TIF

26th & Kostner TIF



•

Boundaries•

Project Goals – Strengthen the economic well-being of theRedevelopment Project Area and the Cityby increasing home ownership, real estatevalues and the local tax base.

– Create a suitable location for residentialand commercial development that maybring new dollars into the community from

surrounding locations. – Encourage the prticipation of minorities

and women in the redevelopment of theRedevelopment Project Area.

– Create and preserve job opportunities inthe Redevelopment Project Area

– Employ residents within and surroundingthe Redevelopment Project Area in jobs inthe Redevelopment Project Area and inadjacent redevelopment project areas.

– Create an environment for new educationaland other institutional facilities to serve thesurrounding community

– Provide open space for parks

ParticularsSponsors-City of Chicago, LittleVillage CDC

Consultant- Louik/Schneider &Associates

Ward-22

Date Created-4/29/98

Termination-2008

Uses-Commercial, Residential

26 & Kostner TIF

26th & Kostner TIF



•

Budget•

Major Projects – There were no projects

undertaken in 2007. There

were administrative fees of

$6,004.

Funds Expended to DateFund Balance-$31,591% to TIF in 2007-0%

% to General Fund-0%


Current EAV-$2,794,764

% Growth in EAV-4.4% decrease

Project Type Amount

Professional

Services/Administration $650,000

Property Acquisition, Site

Prep, Demolition,

Environmental

$11,000,000


Job Training $5,000,000

Total: $26,650,000

26 & Kostner TIF

Kostner Avenue TIF



•

Boundaries•

Project Goals• Foster rehabilitation of the district’s few existingbuildings for either industrial or commercial use.

• Alleviate residential overcrowding within theLittle Village community by promoting mixed-income and mixed-density housing alternatives,including rental units for market-rate, affordable

and low- and very-low income families, and for-sale units at market rate and affordable prices.

• New residential projects are intended toincorporate designs that reflect the surroundingneighborhood with consistent front yard setbacksand building heights, street orientation, rearparking and limited curb cuts.

• Other priorities include improvements to streetsurface conditions, street lighting and trafficsignalization, and the installation and upgradingof public utilities where appropriate.

• Relocation assistance, day care and job trainingare also supported by the TIF.


Consultant- N/AWard-22

Date Created-2008

Termination-2031

Uses-Residential, Commercial,Industrial

Kostner Avenue TIFReplaces the 26th & Kostner TIF

Kostner Avenue TIF



•

Budget

• Major Projects –

There were no major projectscompleted in 2010.

Funds Expended to Date2010 Fund Balance-$2,398

% to TIF in 2010-0%

% to General Fund- 100%

Revenues Since Inception-$4,337

2010 Revenues-$0

2010 Expenditures-$354Beginning EAV-$2,794,764

2010 EAV-$1,829,397

% Growth (reduction) in EAV- -33%

Kostner Avenue TIF

Project Type Amount

Analysis/Administration $1,800,000


Demolition, Environmental $10,000,000

Rehab $25,000,000

Public Works/Improvements 7,600,000

Relocation $50,000

Job Training 500,000

Day Care Services $50,000

Interest Subsidy 10,000,000

Total $55,000,000

Remaining Questions



– How will North Lawndale residents be kept informed of the status of local TIF funds?

– Will there be a TIF Advisory Council?

– Will the Lawndale Community Council be Reactivated?

– How can the TIFs benefit a broad base of community residents?

– What mechanisms can be put into place to ensure that the City of Chicago, elected officials

and delegate agencies are held accountable to the communities impacted by TIFs?

–

How many African American and Women-Owned Businesses were hired on theconstruction projects?

– How many jobs were created?

• How many local community residents were hired?

– Did any local businesses receive contracts?

• If so, how many?

– Did any nearby homes receive NIF assistance?

• If so, how many?

Remaining Questions

Findings



•

The City does an excellent job of outlining 23-year projected redevelopment costs in the TIFRedevelopment Plans for each of the TIFs. Therecords that are available for public inspectiondo not show budget versus actual expenditures.Nor do they provide financial data for more thanone year, which makes it difficult to analyzeperformance over time.

– It is understood that there is no way to

accurately predict the number of projects,revenues or expenditures in a given TIFdistrict. A number of the TIF districts havefunded projects with expenditures that aregreater than the 23-year TIFredevelopment project budget for theproject area. For example,

• the Sterling Park development has or

will receive $23,000,000 in TIFfunding from the Homan-ArthingtonTIF, which has a $10,000,000redevelopment budget.

• The most recent TIF Projection Reportfor the area indicates annualexpenditures ranging from $532,500-$572,200 per year. At this rate, theTIF will generate less than $6,000,000during the remaining 10 years of itslife. Of this amount, $2,000,000 hasalready been committed to therenovation of a Police Station

Forensics Lab.• Cineplex Odeon/ICE Theaters was

awarded $3,300,000 in TIF assistancefrom the Roosevelt-Homan TIF, whichhas a redevelopment budget of $2,400,000. (Subsequent reportsindicate that they have only received$1,116,003

–While there are allowances to transferfunds between TIFs (porting), there doesnot appear to be any provision to amendthe TIF redevelopment budgets to reflectthe current reality.

Findings

Findings



• The annual reports and TIF overviews

provide significant details regarding thefinancial transactions and performance of theTIFs. However

– Not all annual reports are audited. Oneaccountant indicated that the reportsare prepared at the City’s direction.

They also note that they have notaudited, verified, or applied agreedupon accounting and testing proceduresto the data contained in the reports.

– Financial reports record City land andproperty sales within the TIF, but do notindicate the transaction amounts.

–The City typically does not includeprograms such as the NIF, RIF, LFF andSBIF in the redevelopment budgets, butroutinely charges the TIF fund for theseexpenses.

– The City indicates that “PrivateInvestment” could include other public

funds that are not from the TIF fund.

However, no disclosure is made as towhat other public funds have beenmade available.

• There is evidence that job training programshave been funded through TIFs. However,neither the audited statements or TIFoverviews provide data as to what the

training programs are, how many jobs werecreated, or whether any local residents werehired (although there is evidence that jobtraining programs have been funded)

• The City and delegate agencies seem to onlymake appearances at meetings hosted byelected officials or its delegate agencies. This

can be problematic in communities wherethe flow of information is inefficient.Moreover, this tends to politicize the processof providing information and access toservices to which tax payers are entitled.

FindingsContinued

Findings



• While a number of local residents and

business owners have apparently

received assistance from the creation of

the NIF and SBIF, there is very little

evidence that a broad range of

community residents have access to the

programs, or have benefitted from the

creation of TIFs.

• Local TIF redevelopment budgets total

$403.2 million and funding for NIFs, SBIF

and local schools total $13.25 million in

2006. Data for 2006 suggest that for

every dollar that goes towards financing and real estate development,

only 3 cents benefit the local (North

Lawndale) residents and business

owners.

• Some African American (North

Lawndale) residents in the 22nd Ward

who live north of 24th Street have

expressed sentiments of being left out

of economic development planning and

activities in the Ward. In some

instances, they have reportedly been

refused certain services from the 24th

Ward (which is primarily African

American) because they don’t live in the

24th Ward.

FindingsContinued

Findings



• There seems to be a conflict between

TIF program goals and objectives

regarding employment of local residents

and legislation regarding compensation

for construction workers

– The stated goals of a number of TIF

redevelopment plans is to increaseemployment opportunities for the

people who live in the impacted

communities. However, current

and pending legislation favors

unionized labor on public works

projects. Moreover, there is a pushto expand the definition of public

works projects to include TIF

districts and Empowerment Zones.

• African American construction

workers and laborers are less

likely to be union members, but

more likely to live in an

Empowerment Zone or a TIF.

• Unless there is serious

intervention, African Americanswho live in TIF districts or

Empowerment Zones will have

even more limited access to

construction jobs

• The remaining employment

opportunities will be in thelower paying service sector.

FindingsContinued

Recommendations



• All TIF funds should be subject to

annual audits. Financial reports

should be structured to provide

information that would give an

indication of the manner in which

the funds have been managed, as

well as give an indication of performance over time

– Provide reports based on

budget vs. actual revenues and

expenditures, including

variances and explanations

– Provide 2 year performance

– Provide mechanisms to amend

redevelopment budgets to

reflect current reality

• The City of Chicago should use the

TIF financial reporting as a

marketing tool. They should

provide more information on land

sales, the number of jobs created

employment and training programs,

number of contract awards to

minority and women owned

businesses

Recommendations

Recommendations



• There should be more transparency in

the financial reporting process. The

following details should be disclosed

– The dollar amounts for the sales of

City-owned properties

– Names of businesses, individualsand nonprofit organizations that

have formed partnerships to enter

into TIF-funded transactions

– Detailed breakout of the “Private

Investments” that leverage TIF-funded projects.

• Put mechanisms in place to mitigate

politics from public informational

meetings regarding City programs and

services

– Schedule meetings with Chicago

Departments through Chicago 311 – Require City delegate agencies to

share information in venues other

than those provided by elected

officials and other delegate

agencies

RecommendationsContinued

Recommendations



• Create a local website focusing on

results of local TIFs, including NIF, RIF,

LFF and SBIF Programs

• Develop a comprehensive economic

development plan designed to

increase the capacity of local

residents to directly benefit from theTIF programs.

• Re-establish the Lawndale Community

Conservation Council and staff from a

broad base of individuals, business

leaders, nonprofit organizations,churches foundations and City

representatives

• Establish TIF advisory councils for

every TIF in North Lawndale drawing

from a diverse base of community

stakeholders, including businesses,

churches, nonprofit organizations,

foundations and City representatives.

• Conduct more intentional outreach to

African Americans living in the 22nd

Ward to participate in economicdevelopment opportunities provided

by the Kostner Avenue TIF.

• Questions regarding this presentation

may be directed to Valerie F. Leonard

at 773-521-3137, [email protected]

RecommendationsContinued

mailto:[email protected]




Follow Up

•Copies of this presentation may bedownloaded from the Lawndale Alliance’s blog,

http://lawndalealliance.blogspot.com

•

Questions regarding this presentation may beaddressed to Valerie F. Leonard at

773-521-3137 or [email protected]

Data Sources

http://lawndalealliance.blogspot.com/



http://lawndalealliance.blogspot.com/



•

This presentation was prepared using data from the followingsources:

– 2010Annual Report, Homan-Arthington Redevelopment Project Area

– 2010Annual Report, Roosevelt-Homan Redevelopment Project Area

– 2010Annual Report, Midwest Redevelopment Project Area

– 2010Annual Report, Western-Ogden Redevelopment Project Area

– 2010Annual Report, Roosevelt-Cicero Redevelopment Project Area

– Ogden-Pulaski TIF Redevelopment Plan, November 30, 2007

– Homan-Arthington Redevelopment Project Area Tax Incremental Financing Eligibility Study, RedevelopmentPlan and Project, May 17

– Roosevelt-Homan TIF Redevelopment Overview, Chicago Department of Planning and Development, 2007

– Midwest Tax Increment Financing Redevelopment Project and Plan, October 12,1999-March 15, 2000

– 26th and Kostner TIF Redevelopment Plan and Project, November 1997

– 2007 Annual Report, 26th-Kostner (retired) Redevelopment Project Area

– Kostner Avenue TIF Overview, Chicago Department of Planning and Development, 2008 – Official Statement, $355,805,000 Board of Education of the City of Chicago Unlimited Tax General Obligation

(Dedicated Revenue Bonds), Series 2006B

– Neighborhood Capital Budget Group TIF Profiles, www.ncbg.org

– Press releases from the City of Chicago website

– Vision Driving Development, Lawndale Corridor Development Initiative, Lawndale Christian DevelopmentCorporation and the Metropolitan Planning Council, 2008

Data Sources

http://www.ncbg.org/

http://www.ncbg.org/

TIF Town Hall Presentation-2011

Documents

Transcript of TIF Town Hall Presentation-2011