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The Lawndale Alliance Presents

The Time for TIF Reform is Now


TIF Town Hall Meeting and Training

Saturday, July 23, 2011

Dedications
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 Chicagos 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.

Acknowledgements
The Lawndale Alliance wishes to acknowledge the following for making this town hall meeting a success
Terrance Harrington Jimmy Lee Lard Valerie F. Leonard

North Lawndale TIF Town Hall Meeting


What We Will Cover

What is a TIF? State Legislation City Ordinance 7 TIFs Impacting North Lawndale Cook County Summaries Goals Objectives Budgets Remaining Funds Projects Whats Missing? Where to Find Further Information

What is a TIF?
TIF stands for Tax Increment Financing. In short, the TIF program is an investment in Chicagos future that has already made 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-private partnerships. (1) As of this publication there are 161 TIFs in the City of Chicago.

(1) Source: City of Chicago ABCs of TIF

TIF Eligibility Factors What is a TIF?


Under state law, areas proposed for TIF designation must possess numerous blighting factors to be eligible:
Age Obsolescence Code violations Excessive vacancies Overcrowding of facilities Lack of ventilation, light, sanitary facilities Excessive land coverage Inadequate utilities Deleterious land use or layout Lack of physical maintenance Lack of community planning Dilapidation or deterioration

TIF assistance for eligible projects usually exceeds $1 million.


1) Source: City of Chicago website

TIF Programs
Neighborhood Improvement Program TIFWorks Streamlined TIF Riverfront Improvement Fund Laboratory Facilities Fund

Source: City of Chicago website.

TIF Programs
Neighborhood Improvement Program (NIP) Neighborhood Improvement Program
Program Overview The Tax Increment FinanceNeighborhood Improvement Program (TIF-NIP) is a Department of Housing and Economic Development (HED) administered program that has been providing home repair grants in eligible TIF districts since 1999. The program provides home repair grants for both single and multi-family residences. Grants are primarily for exterior repairs however, up to 30 percent of the grant may be used for interior repairs that are health and safety related. Grant amounts are based on the number of units per residence. Single Family Program The single family program requires that homeowners have a household income at or below 100 percent of the area median income (AMI). ($74,800 for a family of 4 in 2011) If the household income is between 100% AMI -140% AMI, the homeowner must match, dollar for dollar, the grant amount. ($74,800$104,720 in 2011) Multi Family Program The multi family program requires that building owners structure their rents so they are affordable to households at or below 80 percent of AMI. (59,850 in 2011) Program Administration HED works in collaboration with delegate agencies for administration of the TIF-NIP program. The agencies are responsible for processing grant applications, providing assistance with determining scope of work, aiding in contractor selection, as well as overseeing the repair work and processing payments to the contractors. Source: City of Chicago website.

TIF Programs
Neighborhood 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
5 + unit buildings

Grant Amount
$5,000 per unit

Maximum Grant Amount $100,000 per building

Source: City of Chicago website.

TIF Programs
TIF Works

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 improve performance 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.

Source: City of Chicago website.

TIF Programs
TIFWorks (Continued)
Your business benefits with training Eligible applicants include: programs that can help you: Employer or a group of employer with Develop and expand product lines common needs Adapt to new technologies and equipment Business or industry association Comply with occupational or industry Labor organization regulations Educational institution Expand into new markets Non-profit organization that will train and Promote growth and increase profit place Chicagoans in businesses located in eligible TIF districts Your business may be eligible if: It is located in, expanding into, or Types of training can include: relocating to an eligible TIF district. Negotiation and sales Training will make you more competitive Technology skills Training fulfills a specific workforce need Leadership and management You are willing to se measurable goals and Safety can report on impact and performance Communications and language skills improvements after training Source: City of Chicago website.

TIF Programs
Streamlined Tax Increment Financing

Streamlined Tax Increment Financing


Grants are paid in annual installments to participants following project completion. The grants do not have to be repaid. Expenses eligible for TIF grants 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 Source: City of Chicago website.

TIF Programs
Riverfront Improvement Fund (RIF)

Riverfront Improvement Fund


The highest level of assistance is provided to industrial landowners for development of riverbank structures (short steel pilings that retain a sloped riverbank planted with native vegetation).

The Riverfront Improvement Program (RIF) facilitates the rehabilitation or replacement 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
Source: City of Chicago website.

TIF Programs
Laboratory Facilities Fund (LFF)

Laboratory Facilities Fund


The 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

Source: City of Chicago website.

State Legislation
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 the minimum wages and fringe benefits to be paid to various classes of laborers and mechanics 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 the general prevailing rate of wages for similar work in the county where the work is performed. Includes all publicly funded construction projects for schools, roads, transportation, sports facilities, airports, renewable fuels (any work done on state property or with state HB0063, SB0043 Amends the Prevailing Wage Act to include definition of public works as projects located in Empowerment Zones and TIFS Does not include projects at an owner-occupied single family residence or owneroccupied multi-family residence located in an enterprise zone or economic development project area. Status : Introduced January, 2009; Currently in Rules Committee

State Legislation
Continued
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 tax increment financing districts located within the City of Chicago. Effective immediately. 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 not specifically appropriated for defined costs for projects within a redevelopment project 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 be distributed annually within 60 (instead of 180) days after the close of the municipality's fiscal year. Effective immediately. Status: Session Sine Die 1/11/11

Source: ilga.gov

State Legislation
Continued
Proposed TIF Reform Bills
HB 6904 Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that the portion of taxes levied by a 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 prior to the effective date of the amendatory Act and extended by the General Assembly on or after the effective date of the amendatory Act shall be allocated and paid to the school district in the manner required by law in the absence of the adoption of tax increment allocation financing. Effective immediately.

Source: ilga.gov

City Ordinance
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, including any attachments, any amendments thereto and accompanying Economic Disclosure Statements; Written staff reports presented to the Community Development Commission related to TIF-funded projects; TIF overviews prepared by the Department of Community Development and annual reports prepared pursuant to 65 ILCS 5/11-74.4-5(d); City-issued Certificates of Completion and any required annual employment certifications prepared pursuant to TIF redevelopment agreements.

Mayor Emanuels TIF Reform


Mayor Emanuel indicated during his campaign that he would overhaul Chicagos TIF system. To this end, he created a task force on TIF reform to bring transparency, accountability and efficiency to the TIF system. The primary outcomes include new 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 TIF success or need for reform; Recommending concrete steps for increasing TIF transparency by making TIF information easily accessible to taxpayers online and by incorporating TIF information into the Citys main budget; Evaluating the role that the TIF program plays in the overall City budget.
Source: City of Chicago website

Mayor Emanuels TIF Reform


The Mayor also announced that TIF data will be easily accessible to Chicagoans online at www.cityofchicago.org/TIF. Data on TIF budgets that has formerly been in PDFs has been put into machine-readable format and new data has been added so that every citizen can sift through it. I am calling on all Chicagoans to engage in this process, said the Mayor. Take a look at the website and submit your ideas for improving TIF data availability, or tell us how you think the TIF investment process could be improved.
Source: City of Chicago website

TIF Projection Report


The TIF Projection Report is a three-year planning document used to evaluate resources and project balances to determine how much funding has been committed and how much funding is available for potential projects in each of the Citys TIF districts. The TIF Projection Report provides estimates of TIF revenue and expenditures in each TIF district in the City of Chicago over a three-year period on a cumulative basis.

Source: City of Chicago website

7 TIFs Impact North Lawndale


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

Homan-Arthington TIF
Boundaries

Project Goals
Reduce or eliminate conditions that qualify the area as a blighted or conservation area

Particulars
Sponsors-City of Chicago; Shaw Companies Consultant-S.B. Friedman & Company Ward-24 Date Created-2/5/98 Termination-2/5/21 Commercial, Residential Interdependent with HomanRoosevelt TIF TIFWorks Eligible

Increase the value of taxable parcels within the Redevelopment Project Area
Provide opportunities for women and minority businesses to share in the redevelopment of the Project Area Replace or repair all infrastructure to facilitate the construction of new housing Rehabilitate and upgrade existing commercial structures Generate resources for the acquisition of vacant parcels, clearance of blighted improvements and environmental remediation

Homan-Arthington TIF
Budget
Project Type Professional Services/Administration Property Acquisition, Site Prep, Demolition, Environmental Rehabilitation of Existing Buildings Public Improvements Job Training Total: Amount $150,000 $200,000 $2,150,000 $7,000,000 $500,000 $10,000,000

Major Projects
Sterling Park -2007 Private Funding-$299,237,601 TIF Funding-$28,000,000 Job Training 2006- $199,628 2007-$120,000, Collectors Training Institute Homan Square Renovation of the Sears Catalog Building Renovation of the Sears Complex

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%

Projects in the District*


Power House Charter High School Homan Square Community Center Homan Square Park
*Reportedly not TIF-Funded

Homan-Arthington TIF
Construction on Sterling Park was expected to begin in, 2007. The project has been delayed. As of July 23, 2011 tenants are moving out of the building in preparation for major construction. When completed, the complex will offer, 1,200 units in one, two and three bedroom layouts as well as senior housing, town homes and a parking structure containing more than 600 parking spaces.
This project no longer appears in the HomanArthington TIF Annual Report. Further exploration is necessary to see if the funds are still committed.

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

Homan-Arthington TIF
List of Vendors Paid in Excess of $10,000 in 2010
Name
City Lights, Ltd./ZSL Electric Chicago Dept. of Transportation

Service
Public Improvement Public Improvement

Amount
$12,536 $67,321

Yas Architecture
Chicago Dept. of General Services

Public Improvement
Public Improvement

$72,996
$61,551

Collectors Training Institute

Job Training

$19,970

Homan-Arthington TIF
Projected Expenditures 2011-2013
Item
Incremental Property Tax Revenue (95% Collected) Incremental Property Tax Revenue (95% Collected) Incremental Property Tax Revenue (95% Collected) Unallocated Funds (Jan-11) Program Administration Program Administration Program Administration Disposition Services Police Forensics Lab Renovations

Year
2011 $ 2012 $ 2013 $ 2011 $ 2011 $ 2012 $ 2013 $ 2011 $

Amount
532,500.00 532,500.00 572,200.00 2,399,663.00 (12,200.00) (12,400.00) (12,700.00) (200,000.00)

2011 $ (2,000,000.00)

Projected Balance 2013

$ 1,799,563.00

Source: Homan-Arthington TIF Projection Report 2011-2013

Roosevelt-Homan TIF
Boundaries

Project Goals
Foster redevelopment of the area with commercial and mixed income uses. Funds from the district are intended to assist with redevelopment costs associated with infrastructure land acquisition site improvements certain interest costs. Primary goal: develop commercial complex on Roosevelt Road Predominantly on vacant land, but also involving structures that are suitable for rehabilitation

Particulars
Sponsors-City of Chicago; Consultant- Louik/Schneider & Associates Wards-24, 28 Date Created-12/5/90 Termination-12/5/2013 Commercial, Residential Interdependent with HomanArthington TIF TIFWorks Eligible

Roosevelt-Homan TIF
Budget
Project Type Prof. Services/Administration Property Acquisition, Site Prep, Demolition, Environmental Public Improvements Financing/Interest Subsidy Contingencies Total: Amount $300,000 $900,000 $800,000 $200,000 $200,000 $2,400,000

Major Projects
Roosevelt Tower 1, LLC-2006 Private Investment-$17,021,867 TIF Assistance $1,540,033 Neighborhood Improvement Program-2006 Private Investment-$2,000,000 TIF Assistance-$1,000,000 2008 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

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%

Projects in the District*


*Whether these projects received TIF assistance or not needs to
be verified.

Starbucks (closed) Dominicks (closed) Hollywood Video(closed)

Roosevelt-Homan TIF
Neighborhood Improvement Program (NIP)
The City of Chicago has authorized up to $1 million for Roosevelt/Homan single- and multifamily TIF-NIP programs. Neighborhood Housing Services of Chicago, Inc. (NHS) and Community Investment 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 $17,500 to qualified owner/occupants of one-to-four unit properties for exterior repairs and limited interior improvements to help rehabilitate 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 a building maximum of $100,000. The homes must be located within the TIF boundaries.

Roosevelt-Homan TIF
Vendors Paid in Excess of $10,000 in 2010
Name
City Staff Costs

Service
Administration

Amount
$16,537

HNTB Corporation
Seven D Construction Touch N Go Landscaping Roosevelt Towers I, LLC

Public Improvement $48,047


Public Improvement $115,478 Job Training Development $23,536 $67,885

Source: Roosevelt-Homan TIF Projection Report 2011-2013

Roosevelt-Homan TIF
Projected Expenditures 2011-2013
Item
Incremental Property Tax Revenue (92% Collected) Incremental Property Tax Revenue (92% Collected) Incremental Property Tax Revenue (92% Collected) Unallocated Funds (Jan-11) Program Administration Program Administration Program Administration Roosevelt Towers RDA Payments Roosevelt Towers RDA Payments Roosevelt Towers RDA Payments Neighborhood Improvement Program Small Business Improvement Fund

Year
2011 $ 2012 $ 2013 $ 2011 $ 2011 $ 2012 $ 2013 $ 2011 $ 2012 $ 2013 $ 2011 $ 2011 $

Amount
1,175,500.00 1,175,500.00 1,256,600.00 3,144,634.00 (20,100.00) (20,500.00) (20,900.00) (69,240.00) (70,630.00) (72,040.00) (500,000.00) (500,000.00)

Projected Balance 2013

5,478,824.00

Source: Roosevelt-Homan TIF Projection Report 2011-2013

Midwest TIF
Boundaries

Major Project Goals


Retain and enhance sound and viable existing residences, businesses and industries within the Project Area Attract new residential, business, commercial, retail and institutional development and the create new job opportunities within the Project Area. Employ residents from within the Project Area and adjacent communities and project areas. When appropriate, developers and businesses should make themselves available to the City and/or local community groups and training institutions to identify, pre-screen and provide pre-employment training to local residents

Particulars
Sponsors-City of Chicago; Consultant- Trkla, Pettigrew, Allen & Payne, Inc. Wards-2,12,24,27,28 Date Created-5/17/00 Termination-5/17/23 Commercial, Residential TIFWorks Eligible

Midwest TIF
Budget
Project Type Professional Services/Administration Property Acquisition, Site Prep, etc. Rehabilitation of Existing Buildings Public Improvements Relocation Expenses Job Training Financing/Interest Subsidy Day Care Total:

Amount $3,500,000 $20,500,000 $22,000,000 $43,000,000 $2,500,000 $5,000,000 $2,000,000 $2,000,000 $100,500,000

Major Projects
Midwest SBIF-1999-Present Private Investment-$3,000,000 TIF Funding-$1,500,000 SBIF 2011 Allocation-$275,448 Midwest NIF-1999-Present Private Investment-$11,500,000 TIF Funding-$5,750,000 NIF 2011 Allocation-$1,306,812 Liberty Square Apartments-2006 Private Investment-$12,438,917 TIF Funding-$1,900,000 2011 Allocation-$106,222 New 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

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%

Midwest TIF
Major Projects, Continued
Rockwell West End-2010 (690 Units) Private Investment-$37,998,910 TIF Funding-$1,250,000 Lawndale Restoration Apartments-2006 Private Investment-$19,846,475 (increase of $2M over 2007) TIF Funding-$8,950,000 Renaissance Place-2006 Private Investment-$8,725,920 TIF Funding-$2,000,000 Collins High School-2006 Private Investment-1,488,744 TIF Funding-$30,300,000 Two Multi-Family Buildings on Douglas Boulevard, (Per note from Kim Jackson, June 4, 2009) Private Investment-N/A TIF Funding-$2,000,000

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 public subsidies)

Inter-governmental Agreement with Chicago Public Schools-$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 Relocation Expenses line items

Lawndale Christian Development Corporation


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%

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

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 Account Report 2/8/08

Midwest TIF
Neighborhood Improvement Program (NIP)
The City of Chicago has authorized up to $3.5 million in the Midwest TIF for the Neighborhood Improvement Program (NIP) Neighborhood Housing Services of Chicago, Inc. (NHS) and Community Investment 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 for exterior repairs and limited interior improvements to help rehabilitate 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 a building maximum of $100,000. The homes must be located within the TIF boundaries.

Midwest TIF
Greystone Initiative As of June, 2006, the City of Chicago Department of Housing and Department of Planning and Development committed $1 million in TIF funding through its TIF Neighborhood Improvement Program to help fund grants for homeowners in the Greystone Initiative. Questions regarding this program and progress to date should be directed to Mr. Charles Leeks at 773-522-4637 or cleeks@nhschicago.org
Source: NHS website, http://www.nhschicago.org/content/news.php?news_id=14

Midwest TIF
Modern Schools Across Chicago Initiative

$1 Billion Plan to build 24 new schools and renovate 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 TIF
Vendors Paid in Excess of $10,000 in 2010 Name
City Staff Costs Johnson Research Group New West Kedzie, LLC
*In addition to $4,000,000 in 2007

Service
Administration Professional Services Development Remediation Development
*** Job Training

Amount
$235,338 17,780 163,717 6,943 1,000,000 284,181 54,288

My BAPS Construction Co. Lawndale H&A Bond, LLP Summit Construction Co. Seven D Construction

** To be applied towards the Collins HS Capital Improvement Plan

Public Improvement Public Improvement

Oosterbann & Sons

Public Improvement

12,953

Midwest TIF
Vendors Paid in Excess of $10,000 in 2010 Name
City Lights/ZSL Electric Chicago Dept. of Transportation

Service
Public Improvement Public Improvement

Amount
$94,121 63,789

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

Public Improvement
Public Improvement
*** Job Training

14,462
69,193 49,214

Electrical Resource Mngt. URS Group

** To be applied towards the Collins HS Capital Improvement Plan

Public Improvement

Dept. of Streets/Sanitation

Public Improvement

19,758 986,486
50,000

Chicago Board of Education Public Improvement


CARA Program Job Training

Midwest TIF
Vendors Paid in Excess of $10,000 in 2010

Name
The Roscoe Co. CCA Academy

Service
Job Training Job Training

Amount
$56,560 16,779

St. Anthony Hospital


Touch N Go Landscaping
*In addition to $4,000,000 in 2007 ** To be applied towards the Collins HS Capital Improvement Plan

Job Training
Job Training
*** Financing Job Training

12,763
135,550 967,723

Harris Trust and Savings

Wells Fargo Bank

Financing

2,118,431

Midwest TIF
TIF Projection Report
Item Incremental Property Tax Revenue (80% Collected) Incremental Property Tax Revenue (80% Collected) Incremental Property Tax Revenue (80% Collected) Unallocated Note Proceeds (Jan-11) Unallocated Funds (Jan-11) To Chicago/Central Park (Modern Schools - Westinghouse) To Chicago/Central Park (Modern Schools - Al Raby) To Madison/Austin (Modern Schools - Austin HS) To Madison/Austin (Modern Schools - DePriest Elem.) To Chicago/Central Park (Modern Schools - Westinghouse) To Madison/Austin (Modern Schools - DePriest Elem.) To Chicago/Central Park (Modern Schools - Westinghouse) *In addition to $4,000,000 in 2007 To Chicago/Central Park (Modern Schools - Al Raby) *** Job Training ** To be applied towards the Collins HS Capital HS) To Madison/Austin (Modern Schools - Austin Improvement Plan To Chicago/Central Park (Modern Schools - Westinghouse) To Madison/Austin (Modern Schools - DePriest Elem.) To Chicago/Central Park (Modern Schools - Al Raby) Modern Schools DS - Collins Debt Service - Taxable Note Series 2002 Modern Schools DS - Collins Modern Schools DS - Collins CPS ADA Renovations Ph.1 - Dodge CPS ADA Renovations Ph.2 - Lawndale Program Administration Program Administration Program Administration Year 2011 2012 2013 2011 2011 2011 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2011 2011 2012 2013 2011 2012 2011 2012 2013 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Amount 13,230,000.00 13,230,000.00 14,261,900.00 77,299.00 16,382,517.00 (87,272.00) (227,115.00) (1,392,500.00) (984,105.00) (1,330,052.00) (1,365,902.00) (1,144,610.00) (227,477.00) (1,392,500.00) (1,601,294.00) (1,363,352.00) (196,452.00) (2,323,700.00) (1,300,000.00) (2,004,300.00) (2,797,550.00) (750,000.00) (2,500,000.00) (259,300.00) (264,500.00) (269,800.00)

Midwest TIF
TIF Projection Report
Item Street Resurfacing - Roosevelt, St. Louis to Central Park Pedestrian Countdown Signal - California & Madison Streetscape - Western Av. Ph.1, VanBuren to Monroe Street Resurfacing - Madison, Kedzie to Central Alley Resurfacing - Warren, Washington, Francisco, Sacramento Street Resurfacing - Adams, California to Washtenaw Liberty Square Apts. RDA Payments Heritage Homes RDA Note Payments Heritage Homes RDA Note Payments Heritage Homes RDA Note Payments Liberty Square Apts. RDA Payments *In addition to RDA Note Payments Heritage Homes $4,000,000 in 2007 *** Job Training Liberty Square Apts. RDA the Collins HS Capital ** To be applied towards Payments Small BusinessPlan Improvement Improvement Fund Small Business Improvement Fund Job Training - Clean Slate Neighborhood Improvement Program Vaulted Sidewalk Fill-In - 2 locations Sinai RDA Closing & COC Payments Rockwell West End - Phase II A Rental Rockwell West End - Phase II A Rental Rockwell West End - Phase II A Rental Projected Balance 2013 Year 2011 2011 2011 2011 2011 2011 2011 2011 2011 2012 2012 2013 2013 2011 2012 2011 2011 2011 2012 2011 2012 2013 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Amount (180,460.00) (24,000.00) (2,000,000.00) (75,000.00) (73,320.00) (53,890.00) (106,220.00) (163,720.00) (214,200.00) (218,480.00) (43,950.00) (222,850.00) (44,830.00) (500,000.00) (500,000.00) (149,913.00) (1,000,000.00) (60,000.00) (6,000,000.00) (201,000.00) (201,000.00) (201,000.00) 21,166,102.00

Western-Ogden TIF
Boundaries Project Goals
The TIF was created to foster a wide range of job-generating business developments and investment projects. The TIF is targeted for building rehabilitation costs, environmental remediation activities, property assembly efforts, public works upgrades involving streets and utilities, and job training programs. The TIF has or will utilize a minimum of $7 million in public dollars to attract a minimum of $14.4 million in private investment.

Particulars
Sponsors-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
Budget
Project Type Professional Services/Administration Amount $1,000,000

Major Projects
Orozco Middle School -2009 Ordinance authorizes DCD to enter into an Intergovernmental Agreement (IGA) with the Board of Education. Construction of a health clinic inside 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/Building Solutions-2006 Private Investment-$14,400,000 TIF Funding-$7,022,900

Property Acquisition, Site Prep, etc.


Rehabilitation of Existing Buildings Public Improvements Relocation Expenses Job Training Financing/Interest Subsidy Total:

$25,447,356
$10,000,000 $19,748,161 $16,356,000 $7,300,000 $1,000,000 $80,851,517

Funds 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%

Employment Data (2001)


Presently, the Western/Ogden Industrial Corridor houses 86 firms, employs 5,887 individuals and generates $1.1 billion in annual sales

Western-Ogden TIF
Vendors Paid in Excess of $10,000 in 2010
Vendor City Staff Costs Leopardo Construction Chicago Industrial League National Power Rodding Corporation The Hauser Group Service Administration Public Improvement Development Job Training Public Improvement Amount $79,709 662,725 $1,511,268 $63,396 150,191

Chicago Dept. of General Services Production Distribution Cos. Electrical Resource Mgt
Uhlich Childrens Advantage Corp. Midwest Folding Products Pilsen Little Village Touch N Go Landscaping

Public Improvement Public Improvement Public Improvement


Job Training Job Training Job Training Job Training

122,075 20,666 10,560


28,921 11,820 17,203 53,536

Western-Ogden TIF
Projected Revenues and Expenditures 2010 -2013
Item Incremental Property Tax Revenue (90% Collected) Incremental Property Tax Revenue (90% Collected) Incremental Property Tax Revenue (90% Collected) Unallocated Funds (Jan-11) Livingston Field Improvements CPS ADA Renovations Ph.2 - Plamondon Program Administration Program Administration Program Administration GO Reimbursement - Police District 12
Alley Resurfacing - Harrison, Flournoy, Maplewood, Campbell Street Resurfacing - 15th, Paulina to Wood City Facility Renovations - 2350 W. Ogden Lighting - Wood, Roosevelt to 12th; 13th, Wood to Paulina CCIL RDA Note #1 Payments CCIL RDA Note #2 Payments CCIL RDA Note #1 Payments CCIL RDA Note #2 Payments CCIL RDA Note #1 Payments CCIL RDA Note #2 Payments Small Business Improvement Fund Small Business Improvement Fund ADA Ramps (2) Vaulted Sidewalk Fill-In - 4 locations Cinespace RDA Payments Projected Balance 2013

Year
2011 2012 2013 2011 2011 2012 2011 2012 2013 2011 2011 2011 2011 2011 2011 2011 2012 2012 2013 2013 2011 2012 2011 2011 2013 $ $ $ $ $ $ $ $ $ $

Amount 7,067,400.00 7,067,400.00 7,605,800.00 14,345,597.00 (3,000,000.00) (1,748,000.00) (135,100.00) (137,800.00) (140,500.00) (1,875,639.00)

$ (48,814.00) $ (261,260.00) $ (50,000.00) $ (13,650.00) $ (273,830.00) $ (481,800.00) $ (273,830.00) $ (481,800.00) $ (273,830.00) $ (481,800.00) $ (500,000.00) $ (500,000.00) $ (14,600.00) $ (120,000.00) $ (5,000,000.00) $ 20,273,944.00

Roosevelt-Cicero TIF
Boundaries Project Goals
Support existing employers and spur industrial employment through the redevelopment of abandoned and underutilized properties within the North Lawndale community.

Particulars
Sponsors-City of Chicago Consultant- Louik/Schneider & Associates Wards-24,29 Date Created-2/5/98 Termination-2/5/21 Uses-Industrial, Commercial TIFWorks Eligible

Facilitate the assembly and preparation of vacant land and provide rehabilitation assistance and infrastructure investment to aid business viability.
Provide assorted roadway improvements that facilitate the movement of trucks and other vehicles access improvements that enable local businesses to operate effectively utility upgrades

Roosevelt-Cicero TIF
Budget
Project Type Amount Professional Services/Administration $1,000,000

Major Projects
$29,500,000
$2,000,000 $15,000,000

Property Acquisition, Site Prep, etc.


Rehabilitation of Existing Buildings Public Improvements

Relocation Expenses
Job Training Financing/Interest Subsidy Total:

$2,000,000
$5,000,000 $500,000 $55,000,000

SBIF 2010 Private Funding2,000,000 TIF Funding-1,000 2011 Allocation$333,333

Funds Expended to Date


Fund 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 Beginning EAV-$45,179,428 2010 EAV-$101,937,135 % Growth in EAV-214%

Employment Data (2001)


The Roosevelt/Cicero Industrial Corridor houses 88 firms, employs 4,663 individuals and generates $1.2 billion in annual sales. # Jobs Created by TIF Projects-N/A

Roosevelt-Cicero TIF
Vendors Paid in Excess of $10,000 in 2010

Name City Staff Costs Dept. of Transportation Meade Electric Co.

Service Administration Public Improvement Public Improvement

Amount $36,910 17,010 36,860

The Cara Program


New Age Services Corp.

Job Training
Job Training

35,365
106,210 52,682

Gatto Industrial Platers Job Training

Roosevelt-Cicero TIF
Projected Revenues and Expenditures 2011-2013
Item Year Amount

Incremental Property Tax Revenue (91% Collected) Incremental Property Tax Revenue (91% Collected) Incremental Property Tax Revenue (91% Collected) Unallocated Funds (Jan-11) To Harrison/Central (Loretto Hospital) To Harrison/Central (Loretto Hospital) Program Administration Program Administration Program Administration Street Restoration - Polk, Leamington to Lavergne Small Business Improvement Fund Small Business Improvement Fund Land Disposition Services Job Training - Clean Slate

2011 2012 2013 2011 2012 2013 2011 2012 2013 2011 2011 2012 2011 2011

$ $ $ $ $ $ $ $ $ $ $ $ $ $

2,389,800.00 2,389,800.00 2,652,500.00 9,130,169.00 (375,000.00) (375,000.00) (50,400.00) (51,400.00) (52,500.00) (750,000.00) (500,000.00) (500,000.00) (50,000.00) (149,913.00)

Projected Balance 2013

$ 13,708,056.00

Ogden-Pulaski TIF
Boundaries
There are approximately 173 blocks
133 blocks (77%) are in the 24th Ward 40 blocks (23%) are in the 22nd Ward

Project Goals

Community that is stable, economically and racially divers, secure and beautiful
Comprehensive housing program that serves homeowners and renters of all income groups Revitalized commercial base highlighted by Ogden Avenue as the main corridor Preservation and enhancement of historic or architecturally significant buildings in the Project Area New investment and development opportunities

Particulars
Sponsors/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

Ogden-Pulaski TIF
Budget
Project Type
Analysis, Administration, Studies, et

Major Projects
Amount
$7,500,000

Actual
SBIF 2010
Private Funding$2,000,000 TIF Funding-$1,000,000 2011 Allocation-$333,333

Property Acquisition, Site Prep, etc.


Rehabilitation of Existing Buildings Public Improvements Relocation Expenses Job Training/Welfare to Work Day Care Services Interest Subsidy Total

$10,000,000
$35,000,000 $30,000,000 $5,000,000 $2,500,000 $6,000,000 $4,000,000 $100,000,000

Speculative
Lawndale Corridor Initiative Concept, July, 2008 Projects outlined in February, 2008, Gapers Block Interview with 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%

Ogden-Pulaski TIF
Projected Revenues and Expenditures 2011-2013
Item Incremental Property Tax Revenue (100% Collected) Incremental Property Tax Revenue (100% Collected) Incremental Property Tax Revenue (100% Collected) Unallocated Funds (Jan-11) Neighborhood Improvement Program Neighborhood Improvement Program Program Administration Program Administration Program Administration Street Resurfacing - Lawndale, Cermak to Ogden Green Alley - Grenshaw/ Roosevelt/ Keeler/ Kildare Reimbursement for TIF Eligibility Study Lighting - Cullerton, Pulaski to Keeler Street Resurfacing - Kevdale, 16th to 18th Lighting - Ridgeway Av., 16th to Ogden Lighting - Komensky, Roosevelt to 19th Small Business Improvement Fund Small Business Improvement Fund Small Business Improvement Fund Residential Lighting - Drake, Ogden to Cermak Alley Reconstruction - 13th St, Karlov, Kedvale, 14th St. Residential Lighting - Harding, 16th to Ogden Residential Lighting - Lawndale, 16th to Ogden Alley Construction - Cullerton, Kildare, 21st St, Kostner Projected Remaining Balance 2013 Year 2011 2012 2013 2011 2011 2012 2011 2012 2013 2011 2011 2011 2011 2011 2011 2011 2011 2012 2013 2011 2011 2011 2011 2011 Amount 2,736,900.00 2,736,900.00 3,531,500.00 3,755,053.00 (500,000.00) (500,000.00) (24,700.00) (25,200.00) (25,700.00) (49,040.00) (287,000.00) (100,000.00) (130,000.00) (48,904.00) (195,000.00) (390,000.00) (500,000.00) (250,000.00) (250,000.00) (100,000.00) (219,000.00) (260,000.00) (195,000.00) (295,000.00) 8,415,809.00

Ogden-Pulaski TIF
Lawndale Corridor Development Initiative Project Concepts
Example Site: West Ogden Avenue and S. Millard Street 6-Story, Mixed Use Development Example Site: West Ogden Avenue and N. Millard Street 5-Story, Mixed Use Development

Residential Space 80,720 SF 30% Affordable Total Cost: $18.4 Million Loss: $100,000

Commercial Space 4,828 SF 5 Small Retail Stores

Residential Space 68,000 SF 20% Affordable Total Cost: $16.6 Million Loss: $340,000

Commercial Space 13,600 SF 10 Small Retail Stores

Ogden-Pulaski TIF
Lawndale Corridor Development Initiative Project Concepts
Example Site: 19th Street and Pulaski 3-5-Story, Mixed Use Development

Residential Space 95,000 SF 20% Affordable

Commercial Space 8,160 SF 6 Small Retail Stores

Total Cost: $22.2 Million Loss: $645,000

th 26

& Kostner TIF

The 26th & Kostner TIF was retired in 2008 due to lack of investment The Kostner Avenue TIF replaces the original 26th & Kostner TIF
Northern border moved from approximately 2400 south to 25th Street, which is beyond the North Lawndale Community Area

th 26

& Kostner TIF


Project Goals
Strengthen the economic well-being of the Redevelopment Project Area and the City by increasing home ownership, real estate values and the local tax base. Create a suitable location for residential and commercial development that may bring new dollars into the community from surrounding locations. Encourage the prticipation of minorities and women in the redevelopment of the Redevelopment Project Area. Create and preserve job opportunities in the Redevelopment Project Area Employ residents within and surrounding the Redevelopment Project Area in jobs in the Redevelopment Project Area and in adjacent redevelopment project areas. Create an environment for new educational and other institutional facilities to serve the surrounding community Provide open space for parks

Boundaries

Particulars
Sponsors-City of Chicago, Little Village CDC Consultant- Louik/Schneider & Associates Ward-22 Date Created-4/29/98 Termination-2008 Uses-Commercial, Residential

th 26

& Kostner TIF


Amount $650,000

Budget
Project Type

Major Projects
There were no projects undertaken in 2007. There were administrative fees of $6,004.

Professional Services/Administration
Property Acquisition, Site Prep, Demolition, Environmental

$11,000,000 $10,000,000
$5,000,000 $26,650,000

Public Improvements
Job Training Total:

Funds Expended to Date


Fund Balance-$31,591 % to TIF in 2007-0% % to General Fund-0% Beginning EAV-$2,834,583 Current EAV-$2,794,764 % Growth in EAV-4.4% decrease

Kostner Avenue TIF


Replaces the 26th & Kostner TIF

Boundaries

Project Goals
Foster rehabilitation of the districts few existing buildings for either industrial or commercial use. Alleviate residential overcrowding within the Little Village community by promoting mixedincome and mixed-density housing alternatives, including rental units for market-rate, affordable and low- and very-low income families, and forsale units at market rate and affordable prices. New residential projects are intended to incorporate designs that reflect the surrounding neighborhood with consistent front yard setbacks and building heights, street orientation, rear parking and limited curb cuts. Other priorities include improvements to street surface conditions, street lighting and traffic signalization, and the installation and upgrading of public utilities where appropriate. Relocation assistance, day care and job training are also supported by the TIF.

Particulars
Sponsors-City of Chicago Consultant- N/A Ward-22 Date Created-2008 Termination-2031 Uses-Residential, Commercial, Industrial

Kostner Avenue TIF


Budget
Project Type Analysis/Administration Property Acquisition, Site Prep, Demolition, Environmental Rehab Public Works/Improvements Relocation Job Training Day Care Services Interest Subsidy Total Amount $1,800,000

Funds Expended to Date


2010 Fund Balance-$2,398 % to TIF in 2010-0% % to General Fund- 100% Revenues Since Inception-$4,337 2010 Revenues-$0 2010 Expenditures-$354 Beginning EAV-$2,794,764 2010 EAV-$1,829,397 % Growth (reduction) in EAV- -33%

$10,000,000
$25,000,000 7,600,000 $50,000 500,000 $50,000 10,000,000 $55,000,000

Major Projects
There were no major projects completed in 2010.

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 the construction 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?

Findings
The City does an excellent job of outlining 23year projected redevelopment costs in the TIF Redevelopment Plans for each of the TIFs. The records that are available for public inspection do not show budget versus actual expenditures. Nor do they provide financial data for more than one year, which makes it difficult to analyze performance over time. It is understood that there is no way to accurately predict the number of projects, revenues or expenditures in a given TIF district. A number of the TIF districts have funded projects with expenditures that are greater than the 23-year TIF redevelopment project budget for the project area. For example, the Sterling Park development has or will receive $23,000,000 in TIF funding from the Homan-Arthington TIF, which has a $10,000,000 redevelopment budget. The most recent TIF Projection Report for the area indicates annual expenditures ranging from $532,500$572,200 per year. At this rate, the TIF will generate less than $6,000,000 during the remaining 10 years of its life. Of this amount, $2,000,000 has already been committed to the renovation of a Police Station Forensics Lab. Cineplex Odeon/ICE Theaters was awarded $3,300,000 in TIF assistance from the Roosevelt-Homan TIF, which has a redevelopment budget of $2,400,000. (Subsequent reports indicate that they have only received $1,116,003 While there are allowances to transfer funds between TIFs (porting), there does not appear to be any provision to amend the TIF redevelopment budgets to reflect the current reality.

Findings
Continued
The annual reports and TIF overviews provide significant details regarding the financial transactions and performance of the TIFs. However Not all annual reports are audited. One accountant indicated that the reports are prepared at the Citys direction. They also note that they have not audited, verified, or applied agreed upon accounting and testing procedures to the data contained in the reports. Financial reports record City land and property sales within the TIF, but do not indicate the transaction amounts. The City typically does not include programs such as the NIF, RIF, LFF and SBIF in the redevelopment budgets, but routinely charges the TIF fund for these expenses. The City indicates that Private Investment could include other public funds that are not from the TIF fund. However, no disclosure is made as to what other public funds have been made available. There is evidence that job training programs have been funded through TIFs. However, neither the audited statements or TIF overviews provide data as to what the training programs are, how many jobs were created, or whether any local residents were hired (although there is evidence that job training programs have been funded) The City and delegate agencies seem to only make appearances at meetings hosted by elected officials or its delegate agencies. This can be problematic in communities where the flow of information is inefficient. Moreover, this tends to politicize the process of providing information and access to services to which tax payers are entitled.

Findings
Continued
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 dont live in the 24th Ward.

Findings
Continued
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 increase employment 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 push to 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 Americans who live in TIF districts or Empowerment Zones will have even more limited access to construction jobs The remaining employment opportunities will be in the lower paying service sector.

Recommendations
All TIF funds should be subject to Provide mechanisms to amend annual audits. Financial reports redevelopment budgets to should be structured to provide reflect current reality information that would give an The City of Chicago should use the indication of the manner in which TIF financial reporting as a the funds have been managed, as marketing tool. They should well as give an indication of provide more information on land performance over time sales, the number of jobs created Provide reports based on employment and training programs, budget vs. actual revenues and number of contract awards to expenditures, including minority and women owned variances and explanations businesses Provide 2 year performance

Recommendations
Continued
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, individuals and nonprofit organizations that have formed partnerships to enter into TIF-funded transactions Detailed breakout of the Private Investments that leverage TIFfunded 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

Recommendations
Continued
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 the TIF 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 economic development opportunities provided by the Kostner Avenue TIF. Questions regarding this presentation may be directed to Valerie F. Leonard at 773-521-3137, or valeriefleonard@msn.com

Follow Up
Copies of this presentation may be downloaded from the Lawndale Alliances blog, http://lawndalealliance.blogspot.com Questions regarding this presentation may be addressed to Valerie F. Leonard at 773-521-3137 or valeriefleonard@msn.com

Data Sources
This presentation was prepared using data from the following sources:
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, Redevelopment Plan 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 Development Corporation and the Metropolitan Planning Council, 2008 Royal Imperial Group Website