Tag: TIF

Alternatives for spending the LaSalle Central TIF money

April 5, 2023 / / 0 Comments

Currently, the Lightfoot administration has proposed spending about $188 million to support the construction of 318 affordable dwelling units in three office and hotel buildings that would accomplish a couple of goals. The housing would reduce the segregation of downtown living, and it would increase the population of downtown which could use more people to support all of the businesses and infrastructure that already exist.

The building at 111 W. Monroe St. From Block Club Chicago: “This proposal by Prime/Capri Interests, LLC, will create 349 apartments, 30 percent affordable, plus a hotel on the lower floors and 130 spots of underground parking. The hotel would be created without city funding, developers said.”

How should that money be spent

Let’s see how much money the LaSalle Central TIF district has.

  • $196 million (at the end of 2021) – read the annual report
  • it generated $151 million in 2021
  • the city projects it will generate $120 million in in 2022 (source)
  • the city spent $76 million in 2021 ($63 million was surplused and the rest was spent on plans, studies, and “Costs of construction of public works or improvements”)

That’s a lot of money that the mayor’s office gets to choose how to spend!

It’s unlikely that the Lightfoot administration can rally the necessary approvals to dedicate the money before Brandon Johnson and a new city council is sworn in on Wednesday, May 15.

If the Johnson administration wanted to review the alternatives to that proposal, what would those be?

The alternatives

  1. Spend $188 million to support the construction of 318 affordable units 
  2. Surplus the money; if the city did this, it would receive $44.81 million into the general budget. 
  3. Spend the same or less money on…something else. This could include beautifying the street or attracting residential development through another strategy that doesn’t spend the money on buildings construction (according to suggestions in a Crain’s article).
  4. Do nothing. The money would stay in the account, grow, and generate interest.

What are other ways to spend the money?

With the cash flow shown in the “how much money” list above, it seems that the city could accomplish alternatives 1 and 2.

Easily find TIF districts in your ward but good data on their current obligations is missing

February 9, 2016 / / 0 Comments

Ald. Ameya Pawar speaks to the Board of Education (WBEZ/Bill Healy)

Alder Ameya Pawar is willing to give back TIF money from projects in the 47th Ward to the Chicago Public Schools. Photo: Bill Healy for WBEZ

Alders Ameya Pawar (47th), Pat O’Connor (40th), Joe Moreno (1st) and Pat Dowell (3rd) are introducing a resolution at today’s budget committee to ask all alders to choose and stop certain TIF-funded projects in their wards (instructions on how to find TIF districts are below) so that the money can be declared as a surplus.

Part of the surplus would be given to the Chicago Public Schools, where it would have gone had property tax revenue never been diverted to the TIF.

What is TIF? Quick answer: All of the new property tax revenue generated after the date the “Tax Increment Financing” district took effect goes to a fund that can only be spent on certain kinds of projects within that district, while all of the property tax revenue generated at the amount that was collected just before the district took effect continues to go to the city, the school district, and other taxing districts.

Alder Pawar has already picked $16.5 million worth of projects that he’s stopping in order to give back the money to schools.

It’s still very difficult to know how much unallocated money is in a TIF district’s bank account (what is essentially surplus). It’s also still very difficult to figure out which projects have had money allocated to them (called an obligation) but not yet spent.

Patty Wetli reported in DNAinfo Chicago yesterday:

The resolution works as a companion to legislation [actually a resolution] previously introduced by Ald. Carlos Ramirez-Rosa (35th), which called for the city to funnel unallocated TIF dollars back to CPS. [read the resolution]

Rather than allowing Mayor Rahm Emanuel and his budget office to decide where to sweep for TIF surplus dollars, Pawar said aldermen should be leading the effort, stating which TIF projects they’re willing to give up.

Instructions to find TIF districts in your ward

You can use Chicago Cityscape’s Places maps to easily find which TIF districts overlap any of the 50 wards.

  1. Find your ward. Use the 3rd Ward, Alder Pat Dowell because Wetli already explored the 47th Ward TIF districts.
  2. Scroll down to the table called “3rd Ward, Ald. Pat Dowell’s Nearby Places”.
  3. Type “TIF district” in the table’s search form. Gasp at the fact that there are 17 districts that overlap the 3rd Ward.

TIF districts that overlap the 3rd Ward (Alder Dowell)

This screenshot shows 10 of the 17 TIF districts that overlap the 3rd Ward.

Let’s look deep at the TIF district called “24th/Michigan”, 76.7 percent of which is in the 3rd Ward, has several millions of dollars in obligations to vaguely-described projects, to continue paying for already-built projects, or future projects. This includes $6.4 million for the Cermak Green Line station and $4.5 million annually for an unspecified project at the National Teachers Academy pursuant to an intergovernmental agreement with the Chicago Public Schools.

24th/Michigan TIF district

A map of the 24th/Michigan TIF district.

The National Teachers Academy project isn’t even on the city’s mildly useful TIF projects map.

Alder Dowell has her work cut out for her to find projects that are in both the 3rd Ward and in one of the 17 intersecting TIF districts that she would be willing to cut so that the Chicago Public Schools are less broke. The same arduous but noble task belongs to all of the other alders as well.

How to use Chicago Cityscape’s upgraded names search tool

December 7, 2015 / / 0 Comments

Search for names of people who do business in Chicago.

I created a combined dataset of over 2 million names, including contractors, architects, business names, and business owners and their shareholders, from Chicago’s open data portal, and property owners/managers from the property tax database. It’s one of three new features published in the last couple of weeks.

Type a person or company name in the search bar and press “search”. In less than 1 second you’ll get results and a hint as to what kind of records we have.

What should you search?

Take any news article about a Chicago kinda situation, like this recent Chicago Sun-Times article about the city using $8 million in taxpayer-provided TIF district money to move the Harriet Rees house one block. The move made way for a taxpayer-funded property acquisition on which the DePaul/McCormick Place stadium will be built.

The CST is making the point that something about the house’s sale and movement is sketchy (although I don’t know if they showed that anything illegal happened).

There’re a lot of names in the article, but here are some of the ones we can find info about in Chicago Cityscape.

Salvatore Martorina – an architect & building permit expeditor, although this name is connected to a lot of other names on the business licenses section of Cityscape

Oscar Tatosian – rug company owner, who owned the vacant lot to which the Rees house was moved

Bulley & Andrews – construction company which moved the house

There were no records for the one attorney and two law firms mentioned.

Two things I don’t like about TIF expenditures in Chicago

May 11, 2015 / / 0 Comments

Chicago Cityscape's TIF Projects map

I built a map of most Chicago TIF projects that you can filter on the fly. Type in any keyword, alderman’s name, or neighborhood and the map will re-center and zoom to the results.

1. Millions of dollars ($14.4 to be exact) has been or will be given to rich corporations, like Home Depot, to build massive stores with huge roofs and parking lots far away from where people live so everyone has to drive there. It’s highly unlikely they don’t mitigate stormwater runoff (except through temporary storage in a retention pond) or treat any of the water on site, contributing to local flooding and clogged pipes.

According to the project descriptions, property tax payers in these four TIF districts have partially subsidized the construction of over 1,903 car parking spaces and the associated ills of expansive asphalt areas and motorized traffic.

2. A massive subsidy was approved – $96 million – for McCaffery Interests’s Lakeside development on the former U.S. Steel South Works plant to build a mixed-use tower of 250 apartments in an area that has weak transit access and will take decades to fully fill out. We should instead be spending this kind of money building housing in already developed parts of the city (where there’s already amenities, or infrastructure for amenities – the Rezko land comes to mind).

What’s interesting about the Lakeside TIF project approval is that the containing TIF district, “Chicago Lakeside Development Phase 1”, has collected zero property tax revenue because there is no property in it!

Trolley on the future Lake Shore Drive

A tour bus drivers on the Lakeside development. Photo by Ann Fisher.

There are some projects I like, though. TIF has been used frequently to build affordable housing, housing for seniors, and housing for people who need assistance. 78 out of 380 projects mention the word “affordable”.

The City Hyde Park building, designed by Studio Gang Architects, will have 20% of its residential units designated as “affordable”, for families (of varying sizes) earning up to 60 percent of the area median income. The city standard is 10 percent but developers are also able to pay an “in lieu” fee so they don’t have to build the affordable units and instead can offer those units at market rates.

Other projects have a majority of affordable units.

More data goodness for Chicago: TIFs, vacant and abandoned buildings

March 8, 2011 / / 0 Comments

Derek Eder emailed me to tell me about two web applications he created based on Google Fusion Tables and its API (application programming interface, basically a question and answer program for designers and programmers to interact with).

He created searchable/filterable maps for TIF districts (tax increment financing, the Chicago mayor’s pet project bank account) and vacant and abandoned buildings. Both use data straight from the City of Chicago.

Screenshot of the Derek Eder’s TIF district web application.

Essentially, the web applications work like this (in case you want to build one yourself):

  • Load the data into Google Fusion Tables (this is very easy)
  • Build a custom interface on your own website (not so easy)
  • Hook into the Fusion Tables API to load the data into your custom interface

As for me, I might look into building a custom interface on my website, but right now I’m going to create a pedestrian crash map for Chicago using Polymaps, a Javascript library. I specifically want to use the k-Means Clustering to show crash hotspots. We already know where they are based on a 2007 report from the University of North Carolina – see that map here.

These markings are intended to reduce the number of pedestrian crashes by increasing the walking person’s visibility.