Annual reports and recent summations of the 53rd St. Redevelopment Tax Increment (TIF) district

Brought to you by Hyde Park-Kenwood Community Conference, its Development Committee, and its website, www.hydepark.org. Writer Gary Ossewaarde

Return to TIF News home. TIFormation publications. Recent TIF Advisory Council meetings. TIF Maps.

2009-2010, FY2006, FY2007. Annual Reports of any Chicago TIF can be picked up in room 703 City Hall, 121 N. LaSalle St. from the start of August each year and are now up sooner in the budget online in the city website- community planning dept.
2009-11 Projection Tables.

Cleanslate, SBIF victims of high leverage to Harper Court development and possible reduced increment revenue due to change in method of asssessment.

March 2012 Revision (Amendment 1) to the Redevelopment Plan and Project.

Anyone who wants to see or have the 2010 annual report of the 53rd St. TIF or any others of the TIFs in Chicago can visit
http://www.cityofchicago.org (look for Department of Housing and Economic Development). You can also go to City Hall, 121 N. LaSale, Room 1006.
Direct: bodyhttp://www.cityofchicago.org/content/dam/city/depts/dcd/tif/10reports/T_105_53rdAR10.pdf.

NOTICE TO INTERESTED PARTIES REGARDING THE AVAILABILITY OF THE 2009 TIF ANNUAL REPORT OF THE CITY OF CHICAGO

" NOTICE is hereby given, pursuant to Section 5/11-74,4-5(d)(9) of the Illinois Tax Increment Allocation Redevelopment Act, as amended (65 ILCS 5/11-74.4-1 et seq.) (the "Act"), that discs of the 2009 TIF Annual Reports of the City of Chicago will be available Monday through Friday between the hours of 9:00 a.m. and 4:00 p.m. beginning Wednesday, July 7, 2010 at City Hall, 121 North LaSalle Street, Chicago, Illinois in the Department of Community Development ("DCD"), Room 1006. Pdfs for individual districts will also be available. Annual reports are online at cityofchicago.org beginning Thursday July 1, 2001. "

[TIFs in the list in our area: 43rd Street/Cottage Grove Redevelopment Project Area
53rd Street Redevelopment Project Area]

Christine Raguso, Acting Commissioner, Department of Community Development, City of Chicago

 

Bits

Assessed valuation in 2001- $23.2M, 2005 $33.3 up 44%.

Cleanslate appears to have been swept aside for the duration of the 53rd TIF (unless an SSA is set up) due to the tightness of the TIF leverage for Harper Court. People say the notice the difference!! The program is part of CARA and provides job-ready training and motivation for those with obstacles to employment including personal, lack of experience, or former incarceration. Last funding was in 2010 ($217,000 - including extension into 2011 and an increase to cover 30 employees) for sidewalk pickup and snow up to six days a week along 53rd, Lake Park and sometimes Metra embankments and side streets. Service stopped in the middle of 2011. However, it wasn't noted officially until September's TIF meeting, when it came out that tax assessment had been shifted somewhat to residential, making it possible that there would not be enough input into the TIF funds to cover Cleanslate in addition to everything else committed. The same problem is faced by the Small Business Improvement Fund for businesses in TIFs.
According to the Herald, the October TIF report shows a funding at $91,600. 2009's "job training" was $157,000, the 2011 difference representing the 60,000 increase in payment and days approved at the start of 2011. Payments to Cara were stated by the city to be $74,917 in 2009 and $227,895 in 2010.

(No explanation was given as to what this reflects except "CPI" (consumer price index), so it may or may not reflect any changes in what is coming IN vs the maximums that can be SPENT- if any lines are in the red, it doesn't say here. ) The following is merely supposition by this writer: Notice that the bottom line allowable is 26 million, but that assumes Cleanslate ("job training) continued, and also the TIF has used none of the line for"day care, " and if any was used for "Relocation" I we never heard about it. My understanding is that HARPER AVENUE is NOT in the amount due the developer but that the TIF is expected to pay for it. However, I suspect that lines cannot be carried one to the other without a sanctioned amendment-- except maybe interest costs, which are likely lower due both to the big commitment having been made 10 years into the TIF and the force-down of rates by the Fed since the crash. So the operable available is probably about $23.5M at most-- coincidence that that is whast is owed the developer and may not cover Harper Avenue. City Hyde Park subsidy would have to come from increment to that site- and who knows what that would be and how much it would cut the amount coming into the TIF.

An official notice was sent out on March 14, 2012 by Housing and Economic Development Commissioner Andrew J. Mooney announcing Amendment 1 to the 53rd Street Redevelopment Project Area Tax Increment Financing District Eligibility Study and Redevelopment Plan- Amendment No. 1, The budget is increased: Table 3 is replaced by the following

Table 3
Estimated T.I.F. Eligible Costs
Revised March,, 2012

Project Improvements Original 2001 Amended for CPI 2012 Estimated Project Costs.
Public Works or Improvements $11,900,000

$15,841,411

Rehabilitation Costs $ 3,000,000 $ 3,993, 634
Property Assembly:Including site preparation and environmental remediation $ 500,000 $ 665,605
Relocation (Commercial) $ 350,000 $ 465,024
Job Training $ 1,500,000 $ 1,996,816
Interest Costs $ 1,500,000 $ 1,996,816
Day Care $ 750,000 $ 998,406
TOTAL REDEVELPMENT COSTS $20,000,000 $26,624,220
     
     
     


2009-2010

In the till of the 53rd TIF at start of 2009: $2,498,522, projected for $3,126,560 at the end of 2011 (most tifs are losing due to property value declines and spending). No new appropriations are on the horizon for the 53rd TIF but is possible that funds wil be requested for infrastructure work for Harper Court. (Original purpose was for parking, Canter, and other infrastructure needs in schools, parks and street in the district.)

Appropriations for 2008 and 2008 covered Canter School, job training and work of Cleanslate, accessibility rehab work on 53rd Street.

You can see the TIF's 2010 budget online in the city website- community planning dept. This TIF currently earns about $750,000 a year and is projected to have $2.4 million after disbursements at the end of 2010. City Administrative cost is c$13.000.
THE ANNUAL REPORTS ARE ON LINE FOR 2009. Go to cityofchicago.org, find city departments- Dept. of Community Development- go to Tax Increment Financing, scroll to Supporting Information and click District Annual Reports. THAT FOR 53RD ST. IS 42 PAGES IN PDF. You are welcome to find relevant pages and print those. Suggested is scrolling at least a quarter of the way down, into Financial: report called Management's Discussion and Analysis (Unaudited) starting with table on page 5; assets and balance Dec. 31, 2009 on page 6; statement of activities for the year ended Dec. 31, 2009 on page 7; expenditures by statutory code on page 11.
About 3/5 of the way through, the formal Annual Report starts-- relevant discussion and tables are in the part called (on p. 6) 53rd St/ Redevelopment Project Area 2009 Annual Report- see or print pages 7 (combined statement)-11 (these are multi frames, some of which have no informational material).

(To see projections of the district 2009-2011 go to cityofchicago.org, find Dept. of Community Development, click Tax Increment Financing and go to Projections and scroll (gives what is below 2009-2010). In Information Support see also (brief) District Narratives, Maps, and Redevelopment Plans.)

Here are the most relevant PROJECTION tables (format lost)

 

2009-11 Projections

1. FY Beginning Cash Balance 2009 Appropriated
project- $2,498,522
balance after $2,498,522

2. Pre-acquisition account (add'l) 2009 Appropriated
($20,000)
$2,478,522

3. Job Training (add'l) 2009 Appropriated
($157,000)
$2,321,522

4. Arterial streets ADA ramps design & construction (min = $74,400 for design) 2009 Appropriated
($511,500)
$1,810,022

5. Cantor School 2009 Committed
($150,000)
$1,660,022

6. Estimated Incremental Property Tax Revenue 2010 Committed
$746,669
$2,406,691

7. Administrative Costs 2010 Committed
($13,400)
$2,393,291

8. Estimated Incremental Property Tax Revenue 2011 Committed
$746,669
$3,139,960

9. Administrative Costs 2011 Committed
($13,400)
$3,126,560

Here is some of the relevant material from the 2009 Annual Report: '

Total assets
2009 $4,517,519. 2008 $3,309,225. Change $ 708.294. 19%

Total liabilities
2009 $373,305. 2008 $60,465. Change $312,840. 517%

Total net results
2009 $4,144,214. 2008 $3,748,760. Change $395,454. 11%

Changes in net assets
2009 $395,454

Total revenues
2009 $844,519. 2008 $853,230. Change $ (8,711). -1%

Total expenses
2009 $449,965. 2008 $300,814. Change 148,251. 49%

Change in net assets
2009 $395,454. 2008 $552,416. Change $(156,962) -28%

Ending net assets
2009 $4,144,214. 2008 $3,748,760, Change $395,454. 11%

_____________
Government fund balance December 31, 2009. = Statement of net assets in except as indicated

Assets
Cash and investments 3,703,350)

Property taxes receivable $810,000

Accrued interest receivable $4,169

Total assets $4,517,519

Liabilities
Vouchers payable $358,242

Due to other city funds $15,063

Deferred revenue $785,504. Adjustment ($785,504). Net assets deferred revenue $0

Total liabilities $1,158,809. Adjustment ($785,504. Net assets $373,305


Fund Balance/Net assets
Designated for future redevelopment project costs $3,358,710. Adjusted () for 0 net assets
Total liabilities and fund balance $4,517,519

Net assets
Restricted fo future redevelopment project costs: Adjustment $4,144,214

Total net assets. Adjustment $4,144,214, equal to that in Statement of net assets

* Differences occur because property tax is recognized in the period for which levied rather than when available. Portion of deferred tax revenue is not available.
These are government fund balance net assets $3,358,710 plus unavailable $785,504 = $4,144,214.


Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance ended December 31, 2009

Revenues
Property Tax - Government Fund $834,373, Adjustments $5,894, Activities $840,267
Interest- Government Fund $4,252, Adjustments 0, Activities $4,2525
Total revenues- Government Fund $838,625, Adjustments $5,894, Activites $844,519

Expenditures/expenses. Economic development projects- $449,065, Adjustments 9, Activities $449,065

Excess of revenues over expenditures- Government Fund $389,560, Adjustments ($389,560), Activities 0

Change in net assets- Adjustment $395,454, Activities $395,454

Fund balance/net assets. Beginning of year- Government Fund $2,969,150, Adjustments $779,610, Activities $3,748,760
End of year- Government Fund $3,358,710, Adjustments $785,504, Activities $4,144,214

Amounts reported for government activities are different because:
Net change in fund balance: governmental $389,560
Property tax revenue recognized for period levied rather than "available"- part of deferred is not available $5,894
Change in net assets-governmental activities $395,454


Schedule of Expenditures by Statutory Code
Costs of studies, surveys, development of plans and specifications, implementation and administration of the redevelopment plan including but not limited to staff and professional service costs for architectural, engineering, legal, marketing. $19,623
Costs of the construction of public works or improvements $354,525
Costs of job training and retraining projects $74,917.
Total $449,065


Combined Statement of Revenues, Expenditures and Changes in Fund balance- Governmental Fund Year Ended December 31, 2009

Revenues- $834,373
Sales tax- 0
Interest- $4,252
Total revenues $838,624

Expenditures
Costs of studies, admin., professional services $19,623
Marketing, prop. assembly, rehabilitation, - 0
Costs of construction of public works and improvements $354,525
Costs of job training and retaining $74,917
All other categories 0
Total expenditures $449,065

Revenues over expenditures $389,560

Fund balance year start $2,969,150
Fund balance year end $3,358,710 (all designated for future redevelopment project costs)

Analysis of Special Tax Allocation Fund 65 ILCS 5/11-74.4-5(d)(5)

City staff administration- $13,876
Stanley Consultants public improvement $20,227
Sumit Construction public improvement $333,821
CARA program job training $74,917

Table 7(A)- Projects implemented in the preceding fiscal year
Canter Middle School: Redevelopment Agreement, Construction of Institutional Property at 4959 S. Blackstone. No retained jobs.

7(D). The Project Area received $4,224,088 of property and sales tax increment since the creation of the Project Area. These amounts have been used to pay for project costs within the Project Area and for debt service. During 2009, no contracts were entered into by the city's tax increments advisors or consultants with entities or persons that have received payments financed by tax increment revenues produced by the Project Area.

7(G) Project by Project Review of Public and Private Investment an Ratio of Private to Public Investment

Project 1: Small Business Improvement Fund (SBIF). Ongoing. To complete: $1,500,000. Public (since 1999) $190,747. Est. ratio at end 2.0:1
Project 2: IGA-BOE Canter Middle School. Ongoing. To complete $150,000. Public $0. Est. ratio at end 1.0:1

___________________________

 

Hyde Park Herald, January 20 2010. By Kate Hawley

Schools, job training and at least one local development project are likely to get funding during the next two years from the 53rd Street TIF, or tax-increment financing, district, said Howard Males, chair of the council that oversees the district, at its jan. 11 meeting.

His remarks came after James Wilson of the city's Department of Community Development presented budget projections for the 53rd Street TIF, the only one in Hyde Park [proper]. The district started 2009 with about $2.5 million and appropriated $157,000 for community job training [CARA/CleanSlate], $150,000 for upgrades to Canter Middle School and $511,500 for the design and construction of accessible ramps on arterial streets. An additional $20,000 was appropriated for a pre-acquisition account. "The pre-acquisition account is money that is set aside for soft costs such a appraisals, surveys and titles," wrote Ted Dygus, on behalf of the Department of Community Development, in an 3-mail. The account is not for any specific project, he added.

The balance in the TIF coffers at the end of 2010 is projected at $2,393,291. That number jumps to $3,126,560 by the end of 2011. During both of those years, the district is projected to generate $746,669 per year in property tax revenue. No expenses are listed during 2010 or 20100 except for $13,400 per year committed to administrative costs [city].

But the TI is still likely to fund local school improvements and job training through Cleanslate, a neighborhood cleanup program that helps the hard-to-employ transition to permanent, stable jobs, according to to Howard males, council chair. "Our commitment to both the jobs program in the form of Cleanslate and local schools remains constant," he said in an interview, adding that funding requests for both items will come before the council.

Males said he expects the developer of the Harper Court project will request TIF funds, given the scope and complexity of the project.... Every effort would be made to ensure that money remained in the coffers for schools and other community projects, he added.

Projections for all of the roughly 160 TIF districts in the city... are now available at the Department of Community Development's Web site.... items [are] listed as either "appropriated," meaning that the city has already approved the use of TIF funds, "committed," meaning that the city has firm plans to move ahead with TIF funding, or "pending," meaning that the use of TIF funds has been proposed....


HPKCC notes possible development impact on 53rd St. TIF budget. January 2010 Conference Reporter

Since the Chicago Community Planning and Development department has announced that the 53rd St. TIF will contributing funds to the Harper Court/53rd-Lake Park redevelopment, here is what has been in the pot and what’s projected.

The TIF became fully operational in 2002, but did not start with funds since assignment of any increased tax revenues in the district (“increment”) has a lag of at least a year and there has to be an increase to be assigned, either from increased values or tax rates or from new development. (Borders, BP, and McDonalds were the chief development generators for this TIF.) In recent years, the combined increment has been about $700,000 to $800,000 a year. Most TIFs have seen at least a decline in annual revenues lately, but this TIF’s revenues appear stable.

At the January 11, 2010 TIF meeting, Chair Howard Males said it has been the policy of the TIF council to appropriate half of the revenue each year and squirrel away the rest. Over the past three years, the Council has appropriated largest amounts for CARA/CleanSlate job training and street cleaning, Canter Middle School refurbishments, Small Business Improvement matches, and sidewalk work. The TIF cannot have administrative costs; those of the city are about $13,000 each year.

At the start of 2009, $2,498,522 was in the till and without expenditures would have a projected $3,126,560 at the end of 2011. Assuming half of the $746,660 deposited at the start of the year at the end of 2009 is spent, that would leave a balance of about $2,400,000 at the end of 2010. Males told the January meeting that the Council will be spending an undecided amount on the 53rd-Lake Park project, but certainly not the $2.4 balance. Whether the total spent this year might exceed half of $750,000 was not apparently yet decided.


Top

Summary of the 2006 Annual Report

By Gary Ossewaarde

"Property tax revenue for the Project was $812,183 for the year. This was an increase of 69 percent over the prior year. The change in net assets produced an increase in net assets of $825,175. The Project's net assets increased 48 percent from the prior year making available $2,545,013 of funding to be provided for purposes of future redevelopment in the Project's designated area. Revenues increased this year due to the Project's economic growth an accordingly increasing the total equalized assessed value of parcels and subsequent tax increment and related collections."

Expenditures in that year were $16,074 of which $12,352 went to city staff costs. (Significant outlays for Cleanslate, SBIF, Canter School, and Vision process will be shown in the following year.) Excess of Revenues $589,289, Fund balance change $1,283,962 to $1,873,251 (no service or encumbrances).

No property was purchased, sold or transferred. No redevelopment activities were undertaken. No agreements were entered into. No obligations were issued.

The Project did enter into an ongoing Small Business Improvement Fund (SBIF). Estimated to complete $1,500,000 (private investment, no public- but $750,000 would be required to compete at 2:1 ratio.

Reports On the 2006 TIF Annual Reports

Hyde Park Herald, July 25, 2007. By Seth Ufheil

Last year, more than half a million dollars was generated by th 53rd Street tax Increment financing District (TIF), but none of that money went toward a significant development. Instead, funds were spent only on administrative costs to prepare an annual report on the district's financial activity.

The TIF district, which was established in 1999, is detailed in a 2006 annual report filed with the city's Department of Planning and Development and made available to the public last week.

The additional money collected last year--the majority of which came from property taxes--brings the total amount of funds generated by the TIF to more than $1.8 million. After it was established, Ald. Toni Preckwinkle (4th) told the community that money raised by the TIF district would be used to help pay for an addition to the Miriam G. Canter Middle School, 4959 S. Blackstone Ave. Another of Preckwinkle's funding priorities is a parking garage for 53rd Street.

To date, neither project has begun, although some TIF money--about $15,000--was approved earlier this year for Canter Middle School to spend on cleaning and landscaping improvements. Another $150,000 has been allocated for Cleanslate, a neighborhood beautification program. Preckwinkle, who had not yet seen the repot, said there was no timetable for the two projects to begin. "We're looking to develop the whole Harper Court city lot," she said. "We're hoping developments at 53rd [Street] and Harper [Avenue] and at the Mobil Mcdonalds site wil contribute to the fund."

The estimated mature value of the 53rd Street TIF is $22 million, but future development along the street could significantly increase the amount of available TIF money because taxes from all new developments would flow into the fund.

 

The 2007 TIF Annual Report and About

53rd Street Redevelopment Project Area, Pursuant to 65 ILCS 5/.11-74.4-5(d) June 30, 2008

[Simplified from accounting:}

Net change in fund balance $598,358; not yet available portion of accrued $52,993
Total change in net assets- $651.331.

Property tax gov't fund $755,226 + int. $28,546 + adj = $836,765

Expenditures /expenses/projects. $185,434

Net revenue $598,338

Change in net assets- beginning of year $651,331

Fund balance/net assets

Beginning of year $1,873,251 + 671,762 = 2,545-013

End of year $2,471,589 + 724,755 = $3,196,344

Total fund balance $2,471,589 - all designated for future redevelopment

Breakdown of costs

Studies, plans, etc. $18,800
Rehab etc. (SBIF) $86,759
Job training (Cleanslate) $70,759

Total; $185,434

Vendor costs- city $12,919, SomerCor SBIF $86,875, CARA cleansl. $79,759
53rd TIF costs $5,881 (Program mgt $165)

______________________

2007 TIF coverage

Hyde Park Herald August 6 2008. By Kate Hawley: TIF funds go to Cleanslate, ...rehabs in 2007

[Note: appears to include expenditures from previous or following year.]

A tax district centered on the 53rd Street commercial strip swelled its coffers by 26 percent to $3.2 million in 2007 from a year earlier, even as it dramatically increased expenditures on job training and small-business programs.

A 2007 annual report released by the city in July gives a breakdown on the finances for the 53rd Street tax increment financing, or TIF, district,... one of about 160 districts citywide. TIFs, which are meant to stimulate neighborhood development, cap property taxes for a 23-year period within the district's boundaries and funnel the excess, or increment, into a fund that can be spent on a range of local projects.

The 53rd Street TIF district spent just $16,047 in 2006. That figure jumped to $185,434 in 2007. A portion of that was set aside for administrative costs. The rest went to two programs new in the financial district that year.

Cleanslate, which received $86,875, offers job training through its neighborhood beautification service. Hyde Parkers have likely seen Cleanslate's interns, as they are called under the program, wearing fluorescent yellow shirts and scouring neighborhood sidewalks for trash.

The Small Business Improvement Fund, or SBIF, a city program that helps small-business owners spruce up their properties, received $79,759. About $34,00 of th at went to Patti and Tom Kidwell, the owners of Chant, 1509 E. 53rd St., for overhaul of the restaurants' interior, according to Derek Walvoord, of SomerCor 504 Inc., the nonprofit that oversees the SBIF program. The remainder went to John Frangias of JGF Management for roof and brick work on a building he owns at 1312 E. 53rd St., Walvoord said. A cafe and sushi bar called The Sit Down is soon to occupy the space. SBIF money has also been allocated for Kimbark Laundry, 1218 E. 53rd St.; Cedars Mediterranean Kitchen, 1206 E. 53rd St.; and Three Pillars Wellness Center, 1516 E. 53rd St.; according to Walvoord.

And $350,000 in TIF money was approved last year, for improvements to canter Middle School, 4959 S. blackstone Ave. The funds will be matched by Chicago Public Schools, said Irene Sherr, a local consultant who works with the 13-person council that oversees the district.

The council, which holds open meetings and workshops and issues regular publications, provides a level of public participation that is rare among the city's TIF districts, Sherr said. The TIF program has been criticized for its lack of transparency.

The 53rd Street TIF district is also unique in that it wasn't created in order to fund a particular development project, a practice common in other district, she said.

The next major project on tap for the district, the planned redevelopment of the Village Center mall at 1525 E. Hyde Park Blvd., won't use TIF funds, according to its developer, Eli Ungar of Antheus Capital. However, the redevelopment of the Harper Court shopping center on Harper Avenue between 52nd and 53rd Streets, still in the early planning stages, is a likely candidate for TIF subsidy, Sherr said.

The 53rd Street TIF was created in 2001 with an eye toward the development of parking to support future building on 53rd Street, and for securing funds to improve Canter Middle School.

In 2007, the TIF took in $808,219 in property tax revenue, a decrease of less than 1 percent from the previous year.