2003 Report for the 53rd Street TIF District; Citywide TIF issues, initiatives. For later visit TIF annual reports and TIFormation
Annual reports are available each year from the start of August in City Hall room 1006.

A service of the Hyde Park-Kenwood Community Conference, its Development Zoning and Preservation task force, and its website, www.hydepark.org. Help support our work as watchdog, forum and clearing house: Join the Conference.

Return to TIF News. Tracking Community Trends. Community News. Zoning Reform.

Annual TIF reports are now available at City Hall room 1101 9 am-4 pm M-F. More recent information on 53rd TIF is in the Annual Reports page.

Hyde Park TIF Report (December, 2003)

TIF Project Priorities

The Hyde Park TIF was established with the specific purpose of using TIF revenues for public works or improvements. Public improvement priorities identified to date include:

  1. A public parking garage to serve the 53rd Street shopping district
  2. The addition/expansion of Canter Middle School

Approved TIF Eligible Costs:

The following categories of expenditures were identified in the initial budget associated with the creation of the TIF.

TIF Increment Collected:

The Office of the Cook County Clerk compiles this information annually. It is usually available in October of the subsequent tax year. To date the following has been collected (source Office of the County Clerk):

Year 1 is Tax Year 2001 = $162,460
Year 2 is Tax Year 2002 = $233,339

TOTAL $395,799

TIF Expenditures:

Professional Services/Administration: The City of Chicago's Department of Planning and Development receives small annual contributions from every TIF district in Chicago to cover the administrative costs associated with the TIF program. Information regarding administrative costs for 2003 is not available yet. The Department of Planning and Development received $2942 in 2002 to cover its expenses associated with administration of the Hyde Park TIF.

TIF Projections

The Frozen Valuation of the TIF District is $23,168,822 (Source - County Clerk Office)

Currently, there are no formal or official projections of TIF revenues on a project by project basis.

Projects within the TIF District:

The Council has reviewed the following projects to date:

Borders - Construction began late 2002. 24,000 SF store at 53rd and Lake Park opened in July 2003. No request for TIF funds.

BP Connect (former Amoco at 52nd and Lake Park) - BP has demolished the Amoco station. BP will build a state-of-the-art BP Connect facility which will include a 4000 SF Wild Bean Cafe. There will be a car wash. Construction is underway. No requests for TIF funds.

CVS - CVS proposed to build a new building in Kimbark Plaza. The new building will occupy the space formerly currently occupied by Tony's Sports and the current Video Connection. No request for TIF funds. Details of project still under review.

Hyde Park Art Center presented plans for its new facility that will be located on the 5000 block of Cornell. This project is not located within the TIF boundaries, but was presented because of its general interest to the community. There was no request fort TIF funds.

Lake Park Corridor - Janet Atarian from the Chicago Department of Transportation (CCOT) has made several presentations to the Council regarding the Lake Park Corridor (46th to 57th) project which includes plans for the renovation of the viaducts and embankments. There is no request for TIF funds.

McDonald's - McDonald's plans to build a new restaurant with a drive-thru at 52nd and Lake Park. Construction is scheduled for 2004. The 53rd street facility will remain operational until new facility is open. McDonald's will tear down its 53rd Street location and sell the property once new facility is operational. No request for TIF funds.

53rd/Harper - Hank Webber, Vice President of the University of Chicago, has made two presentations to the community regarding plans for the building that houses the Hyde Park Theatre and the retail stores along 53rd Street. The University reported on the options it is considering for the site. At the time of the second presentation (11/03) the University was having conversations with an arts oriented movie theatre operator.

The University also reported that it had a signed Letter of Intent with the owners of the Checkerboard Lounge to occupy a portion of 5201 S. Harper, and was negotiating with a restaurateur to occupy the remainder of the space. There is no request for TIF funds.

Approved Use of TIF Funds

In January of 2003, the TIF Council approved the use of TIF Funds, approximately $20,000 to support a job-training program that would provide sanitation services for 53rd Street. The Department of Planning subsequently determined that in their view this was not a appropriate use of TIF funds and these funds have not been spent.

Anticipated projects for 2004"

Other projects to impact TIF revenues:

Collected TIF revenues do not yet include any of the TIF increment anticipated from the new Borders store and Hyde Park Bank renovations.

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Note that the Estimated Redevelopment Budget here is only a filler artifact from establishment of the TIF. Even the Department of Planning provides no breakdown budget for TIFs in early years. For information on actual budgeting, contact Alderman Preckwinkle's office or South East Chicago Commission.

From Neighborhood Capital Budget Group. NCBG's TIF Almanac 2003. Available from NCBG at membership cost.

Hyde Park TIF summary for 2003. Neighborhood Capital Budget Group

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Citywide TIF issues and initiatives

Neighborhood Capital Budget Group has done more TIF monitoring and training of those involved in TIFs than any other organization. Unfortunately, the organizationa and site are gone.

NCGB reports that the proportion of assessed valuation encumbered in TIFs has risen from 15.5 % to 17% between the end of 2001 and late 2003, while the acreage in TIF districts increased as a percent of city total from 24.5 to 27 over the same time. The number of TIFs has risen to 130.

Link to Chicago Reader study of TIFs up to 2010:

http://www.chicagoreader.com/chicago/shadow-budget-tif/Content?oid=1251320

http://www.chicagoreader.com/chicago/the-chicago-shadow-tif-budget/Content?oid=1218391

Workforce development. Alderman Allen is seeking legislation mandating quarterly reports on this part of the TIF mandate and requiring aldermanic approval for expenditures above $50,000. NCBG holds Workforce development/TIFWorks seminars, which will become bi-monthly. Call 312 746-7329.

NCGB holds other planning for community change training seminars.

How do schools fit into the TIF picture and vice versa? Joyce Foundation has funded development of a master plan. NCGB has hosted seminars on getting the most for school improvements from CPS and TIF districts. Their Schools Task Force meets Dec. 10. Visit www.ncbg.org for site and time.

NCGB encourages participation in city budget hearings and telling your alderman needs- the Aldermanic menu is likely to be due c. October each year rather than December.

20 percent annual of citywide total TIF money proposed for affordable housing- City Council hearing July 7 2010. Raid or corrective?

July 7, 10 am City Hall 2nd fl Council chambers, hearing on requiring 20% of TIF funds to be spent on affordable housing annually. Here are some details and one set of suggested alterations. Local groups such as Coalition for Equitable Community Development are examining the proposal.

The July 6 Sun-Times carries an editorial on the use of 20% of TIF funds for affordable housing. The editorial strongly endorses and gives reasons to recommend, but suggests a number of changes.

Note that the proposed ordinance is for 20% of total TIF money, NOT 20% in every TIF. Not said here is whether this is retroactive to all money in TIFs when it goes into effect but it appears the transfers and requirement would be annual. Not said here is whether such units would have to be inside a TIF district. It would not be just for building new housing, but could also be for preserving or rehabbing existing housing for affordable or converting foreclosed properties into affordable housing.

Recommended changes by Sun-Times:

Reporting requirements said to be weak, esp. that the developers alone would verify family eligibility.

For rental half of apartments in each development would be for families earning 50 percent or less of area median (+$38,000 for family of 54) with 40% for families earning under 23% Sun-Times fears this would derail development or lead to projects that don't enhance property values (which is a main source of increment in the first place). ST would change the percentages to 30% and a bit under 40%.

Homeownership rules: Proposed is that 50 percent of for-sale units be for families making under $60,000. But this is the group that most heavily took the now mortgages in the bubble and then lost them. It might also raise costs to the point that financing could not be obtained. S-T does not suggest an alternative.

The proposal lacks a means to prevent the city form concentrating affordable developments in certain (challenged?) neighborhoods. At least some affordable development should go into TIFs in neighborhoods that are not "challenged" (read Hyde Park 53rd and Cottage Grove TIFs?)

 

Sun-Times on what happened July 7

Sun-times online July 7, 2010
Plan to set aside TIF money for affordable housing stalls
Comments
July 7, 2010

BY FRAN SPIELMAN Staff Reporter
A plan to set aside 20 percent of Chicago’s tax-increment-financing (TIF) funds for affordable housing stalled in a joint City Council committee on Wednesday, despite a grass roots campaign that has pressured at least 27 aldermen to sign on.

The City Council’s Finance and Housing committees took two hours of testimony but no vote on the set-aside plan championed by Ald. Walter Burnett (27th) amid a barrage of questions from supporters and opponents alike.

Aldermen demanded to know how the mandate would impact their control over TIF spending, whether there are enough interested developers to support a 20 percent edict and whether neighborhoods without TIFs would be denied sorely-needed affordable housing. They also questioned how the ordinance would be enforced.

"If procedures they’re proposing are the same as what we’ve got now, what do we need another ordinance for?” said Housing Committee Chairman Ray Suarez (31st).

Burnett countered that TIFs are now being used to subsidize clout-heavy developers and consultants and to pay the salaries of 72 city employees. "Why can’t we give the TIF back to the people who pay the taxes in our community so they can get some affordable housing?” he said. "TIF is the only resource we have that can make things happen. We have to do something about foreclosures and the lack of affordable housing. This money is sitting in a pot while people in our communities are suffering.”

Chicago has 159 TIFs that siphon tens of millions of dollars away from local taxing districts -- by freezing property taxes for 23 years and using the increment for business subsidies and infrastructure improvements within those boundaries.

Burnett’s ordinance would rein in Mayor Daley’s unbridled control over the TIF piggy bank. Twenty percent of funds generated by TIFs in the previous year—$100 million--would be used to either build or preserve affordable housing. The 20 percent would come from the citywide total—not from each TIF, as some aldermen feared.

In 1993, Daley unveiled a five-year plan for affordable housing under pressure from the City Council. Last year, he committed $2.1 billion to create 50,022 units of rental and for-sale housing by 2013.

The City Council also mandated a 20 percent affordable housing set-aside on city-subsidized projects and 10 percent on projects that involve city land, planned developments and zoning changes that increase density.

Daley has taken no public stand on the new ordinance but Burnett knows he’s fighting an uphill battle.
"It’s not that the mayor is against affordable housing. It’s just that he needs to be massaged a little bit and I think he’ll reconsider,” Burnett said.

It’s not the first time Burnett has gone toe-to-toe with Daley on the issue of affordable housing,
During the 2003 City Council debate on the first affordable housing set-aside ordinance, Burnett told Daley that people on the mayor’s own staff “have challenges with affordable housing—whether you know it or not, whether they tell you or not.”

Daley snapped, "Alderman, I know about affordable housing. You don’t have to lecture me.”

Burnett stood his ground, arguing that affordable housing was the decisive issue in the 2003 aldermanic elections.
"We all have to live with that, Mr. Mayor. We cannot be afraid to fight to give people affordable housing. We need more,” he said.
Daley countered, "No one’s afraid to to say what’s right. . . .You’ve always spoken your mind. I’ve allowed that. Never infer that I did not allow that. . . .Don’t infer that I do not listen to you."

 

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