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1414 South Hamlin Contacts: Valerie F.

Leonard, 773-521-3137
c/o North Star Mission Joe Ann Bradley, 773-450-2400
Chicago, IL 60623
773-522-7610

December 11, 2007

Ms. Mary Richardson-Lowry, Chairman


Community Development Commission
121 North LaSalle Street
Chicago, IL 60602

Dear Ms. Richardson-Lowry:

We writing on behalf of the Lawndale Alliance, a newly-formed group of Lawndale stakeholders who have
come together to improve the social and economic conditions in Lawndale by promoting increased
community participation, education, resident leadership, and holistic community and economic
development. To date, the group consists of approximately 100 stakeholders representing block clubs,
individual property owners, local business owners, churches, schools, and engaged residents. We have
been meeting on a consistent basis to educate ourselves on the pros and cons of the Proposed Ogden-
Pulaski Tax Increment Financing Redevelopment Plan.

We respectfully request that this letter, and accompanying documentation be included as part of the public
record for the December 11, 2007 meeting of the Community Development Commission. We ask that you
table the scheduling of the public hearing until after the outstanding issues outlined in August, in addition to
issues that have since been raised, have been resolved. While we agree in principle that the creation of a
new Tax Increment Financing District (TIF) in Lawndale could provide a wonderful opportunity, we remain
terribly concerned with the lack of transparency in communication surrounding the redevelopment plan; the
City’s decision to proceed with the plan without community support; disenfranchisement of a TIF Advisory
Council before it is even formed; and total disregard for the community input. This is particularly
disheartening in the wake of the highest property tax increase in the City’s history, and the fact that we will
ultimately have to foot the $300,000,000+ tax bills (base and increment) generated in the area.

We have outlined our concerns below.

Redevelopment Plan

In August, we raised strong concerns regarding the consultants’ recommendation to re-zone the vicinity of
Cermak and Kedzie, from residential/mixed use to commercial/light industrial. Alderman Dixon has publicly
indicated that she would not support any zoning change. However, there is still language in the plan to the
effect that this re-zoning should occur “along Ogden Avenue and north of Cermak Avenue frontage near
Kedzie”. There are also 7 housing units that could potentially be displaced as a result of change in land
use. The City should provide further clarification as to what plans are driving the recommendation for the
zoning change.
The consultants recommend that “Future residential should be developed at a higher density than the low-
density neighborhoods located on the interior of the Project Area. Consideration should be given to
planned developments for this use”. Again, the City should provide further clarification as to what specific
plans are driving the recommendation for the planned development, and whether this could have
implications for eminent domain.

One of the goals of the Redevelopment Plan is to achieve racial and economic diversity. However, the plan
did not go into details as to how this may be achieved. Please provide detailed information as to how this
will be achieved.

There is significant language concerning job training for welfare to work programs, ex-offenders,
construction of day care facilities, but no specific mention of job training for students and others who may
want to upgrade their skills to remain competitive in this increasingly global society.

There is no language regarding the elimination of the Digital Divide, creation of a Wi-Fi network or mention
of a community center that would be devoted exclusively to building technological capacity of local
entrepreneurs, senior citizens, etc.

Acquisition Plan

We are pleased to see that the acquisition list has been reduced from 1,614 parcels to 652. The plan calls
for 20,000 SF of commercial real estate development, and construction of 300 new housing units. Given
the fact that the consultant suggests greater density in development on the outskirts of the Project Area, it
is not clear that the City would need to acquire 652 lots. We recommend that the City only acquire sufficient
land to implement the proposal.

Housing Impact Study

We are pleased that the number of housing units potentially displaced by the implementation of the TIF has
been reduced from 317 to 41. However, we are very concerned with the manner in which the parcels have
been disclosed to the public. The original plan (dated August 2, 2007) depicted the parcels to be displaced
on a map (Figure 2: Housing Subject to Displacement), and included Exhibit I: Housing Potentially Subject
to Displacement Ogden/Pulaski Housing Impact Study, which provided a detailed listing of every impacted
PIN number. The detailed listing of PIN numbers was not included in the (revised) plan dated November
30, 2007. It is impossible to identify which properties could be potentially impacted, as the map only
provides information down to the block level, and does not include the series of numbers associated with
specific parcels. The Lawndale Alliance has requested a copy of this list, and the request has not yet been
fulfilled. This is particularly troubling, given that the original list contained a number of errors.

Table 7. Location, Type, Cost and Availability of Representative Replacement Housing Units indicates that
representative properties for sale in Lawndale, West Garfield and Humboldt Park range from $42,000 for a
3-bedroom single family home to $195,000 for a two-unit residential building. Our casual observation of
realtor’s list prices in Lawndale for 2-flat residential buildings 50 years and older indicates prices in the
$300,000 range. (8/11/07). If properties must be acquired to implement this Redevelopment Plan, it is
imperative that the owners be fairly compensated.

We respectfully request that extra care be given to ensure the accuracy of all property lists included in the
Redevelopment Plan and Housing Impact Study.
The Budget

The community has voiced a number of concerns regarding the budget for the Proposed Ogden-Pulaski
TIF. One concern is the fact that there are no funds allocated towards small business development, even
though the plan states that development of minority and women-owned businesses is one of the objectives.
While the City has promised to provide a Small Business Improvement Fund (SBIF) once the TIF is
approved, we believe these funds should come from a dedicated line item in the 23-year budget. There is
no guarantee that the SBIF program will be around for the next 23 years. There were also concerns voiced
concerning the fact that more money was in the budget for social services than job development.

On October 9, 2007, the Department of Planning and Development, in cooperation with Alderman Sharon
Dixon and Alderman Ricardo Munoz, held a public meeting surrounding the Proposed Ogden-Pulaski TIF.
They provided worksheets for the 300 or so residents to provide their suggestions as to how the budget
should be re-distributed. We are very disappointed to see that none of the feedback provided by the
residents have been included in the budget. The budget for the November 30/December 7 plan is the
same exact budget as presented in the August 7, 2007 plan. This is very troubling for 2 reasons:

1) The City and our elected officials have shown blatant disregard for the opinions of the low-
moderate income taxpayers who will have to foot the bill

2) The budget is not grounded in reality, as it does not capture the changes in the plan. For example,
the line item for acquisition was set at $10,000,000 in the August submittal, and remains set at
$10,000,000 for the November submittal. However, the acquisition list has been reduced from
1,614 parcels to 652 parcels. Clearly, the surplus in this line item should be re-directed.

Furthermore, the redevelopment plan is based upon a number of plans, including the Steans
Family Foundation’s Deep Dive Application to Fannie Mae. Within the past 4-6 weeks I got a call
from a high ranking member of the Steans Family Foundation indicating that he would not share
the plan with the public because it was no longer relevant. If the plan is no longer relevant, it
should not be included in the Proposed Ogden Redevelopment Plan. Furthermore, the
$35,000,000 line item dedicated to the construction and rehabilitation of housing units should be
reduced to reflect the fact that this plan is no longer in effect.

One representative from the Department of Planning and Development indicated during the October 9,2007
meeting that TIF funds could not be used for the day to day operations of day care facilities. However,
there is a $6,000,000 line item for day care in the budget, and verbiage in the body of the report that
indicates that some of this money would be used to cover “all or a portion of the cost of operation of day
care centers established by redevelopment project area businesses…” We respectfully request clarification
on this point.

The $100,000,000 Proposed Ogden-Pulaski Redevelopment was not developed with input from a broad
base of community stakeholders. We believe the budget should be expanded by at least $23,000,000
($1,000,000 per annum) to create a new community-based economic development entity and fund
qualifying community improvement projects selected by TIF District residents and stakeholders.
Disparity in Capital Spending for School Facilities

The redevelopment plan indicates that there are 7 public elementary schools in the Proposed Ogden-
Pulaski TIF District, and no public high schools. According to the plan, the nearest public high school is
Farragut. The plan mentions that Cardenas and Kanoon, which are in Little Village, are nearing capacity.
The remaining North Lawndale schools, including Mason, Paderewski, Crown, Pope and Hughes, are
operating “well under their physical capacity, and could handle additional students.” The plan indicates that
new high school age children resulting from the development of the area “could be accommodated by
Farragut High School and the regional school system but may require over time, new or expanded school
facilities.”

This is very troubling. The boundary maps indicate that approximately 77% of the land area of the
Proposed Ogden-Pulaski TIF is in North Lawndale, which is 93% African American. However, there is no
indication that any of the incremental taxes generated from this TIF will go to North Lawndale schools. The
City seems poised to use property taxes generated from North Lawndale to subsidize building and
expansion of facilities in Little Village, including Farragut High School, which is outside of the TIF
boundaries.

While North Lawndale schools do not face issues of overcrowding, there is a need to improve facilities and
curriculum. We recommend that some of the TIF dollars be utilized to make capital improvements at
traditional public schools in North Lawndale. We also recommend that education be viewed as workforce
development. The job training budget should be expanded to include curriculum enhancements to prepare
North Lawndale students to compete in a global economy.

There is also mention of the fact that funding for education could be used for school campuses (translation:
charter schools). The Proposed Ogden-Pulaski TIF Redevelopment Plan is being funded in part by the
Steans Family Foundation, who will be making significant investments in housing, and have been a driving
force in the development of the Renaissance 2010 policies that have resulted in the closure of Collins High
School and takeover of the Howland School. Furthermore, there is a proliferation of charter schools in
Lawndale such that there are no longer any traditional high schools in the community, as defined by
Community Area 29. There is a concern that funding that could go to ailing North Lawndale schools will be
redirected to charter schools. We have repeatedly raised the question as to how the education funds would
be allocated, and whether charter schools would get any of the funding, etc. We have not gotten any direct
answers.

Lack of Accountability for Job Creation and Retention

The Proposed Ogden-Pulaski TIF will be adjacent to the Roosevelt/Cicero Industrial TIF. If the
Cicero/Roosevelt Industrial TIF was created under the Industrial Jobs Recovery Law, then the City may use
incremental property taxes generated from the Ogden Pulaski TIF to cover redevelopment costs in the
Roosevelt/Cicero Industrial TIF. This is of great concern, given the fact that companies doing business in
the Roosevelt/Cicero Industrial TIF reportedly have a poor track record of hiring African Americans, let
alone North Lawndale residents. If companies doing business in the Cicero/Roosevelt Industrial Corridor
get TIF funds, then they should be obligated to hire, train and retain African American residents from North
Lawndale.
The Olympics

The City of Chicago is competing to host the 2016 Olympic Games. If we are successful, some swimming
events will be held at Collins High School. We ask that any development plans surrounding nearby
Douglas Park and Collins High School as they relate to the Olympics be shared with the Lawndale
community. A recent study prepared by CB-Richard Ellis found that the average housing price increased
300% within 7 years of the Olympic Games being held in Atlanta. While we cannot possibly control market
factors, Lawndale residents need to be sufficiently informed of the potential impact and opportunities so we
may plan accordingly.

Need for Community Oversight

We believe there is a need for community oversight in the development process to ensure accountability
and to make sure the interests of the local community are being met. Unfortunately, this plan is being
advanced before a community advisory council has been put into place. Our elected officials promised
publicly that a Council would be put in place by the end of November. This has not happened yet (see
attached article, “… For Such a Time as This).

We recommend the following:

1) Create a TIF Advisory Board comprised of local stakeholders. The stakeholders should represent a broad
range of interests, including local business owners, large businesses, institutions, churches, nonprofit
organizations. The membership should also be representative of the geographic composition of the TIF.
For example, if 77% of the land mass is in the 24th Ward, then 77% of the membership should be from the
24th Ward. The application process should be open and draw from all areas within the TIF boundaries. The
applications should be reviewed by an impartial panel.

2) Revive the Lawndale Community Conservation Council to coordinate all development activities in North
Lawndale. The stakeholders should represent a broad range of interests, including local business owners,
large businesses, institutions, churches, nonprofit organizations. The membership should also be
representative of the geographic composition of the TIF. Each ward’s representation on the Council should
be based upon its respective land mass. For example, if 70% of the land mass of the Conservation Area is
in the 24th Ward, then 70% of the membership should be from the 24th Ward.

The Lawndale Community Conservation Council was a federally mandated entity, created to provide citizen
control in determining zoning approvals. The Lawndale Alliance should work with Congressman Danny K.
Davis to establish a council overseeing and directing federally funded projects undertaken by the City, CHA,
and any other entity receiving federal monies. The Council should pay particular attention to monitoring
affordable housing and displacement factors within the new Tax district.

3) There should be no conflicts of interest on the TIF Advisory Council or the Lawndale Community
Conservation Council. There should be a clear definition and separation of the planning and advisory roles.

4) The TIF process should be transparent. There should be regular communication of progress towards
financial and planning goals for the TIF and Conservation Area. Meeting minutes should be a matter of
public record, and published in publications that are readily accessible to the public. There should be
periodic mailings and newsletters to update the public. Updates should also be posted on a website.

5) There should be community benefits agreements between large developers and community residents and
other stakeholders to make sure community residents benefit from the new developments.
In closing, we have included for your convenience

1) A copy of an Article, …For Such a Time as This

2) Postcards signed by people who attended the December 10, 2007 meeting of the Lawndale
Alliance meeting. The cards outline general concerns around the implementation of the Proposed
Ogden-Pulaski TIF.

We request that a written response sent to

Ms. Valerie F. Leonard


4111 West 21st Place
Chicago, IL 60623.

Your consideration is most appreciated.

Sincerely,

THE LAWNDALE ALLIANCE

Distribution List

cc: Congressman Danny K. Davis


State Senator Rickey Hendon
State Representative Arthur L. Turner
Cook County Commissioner Michael Quigley
Cook County Commissioner Robert Steele
Cook County Clerk David Orr
Mayor Richard M. Daley
24th Ward Alderman Sharon D. Dixon
22nd Ward Alderman Ricardo Munoz
14th Ward Alderman Edward Burke, Finance Committee Chairman
24th Ward Committeeman Larry Nelson
Mr. Arnold Randall, Commissioner, Chicago Department of Planning and Development
Mr. Eric Reese, Chairman, Joint Review Board
Ms. Julia M. Stasch, Vice President, Human and Community Development, MacArthur Foundation
Mr. Reginald Jones, Executive Director, Steans Family Foundation
Mr. Andrew Mooney, Senior Program Director, Chicago LISC
Ms. Susana Vasquez, Director, New Communities Program, Chicago LISC
Lawndale Alliance Participants

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