A set of detailed
vetting meetings by the TIF and other organizations were announced July 12-
see above.
Vermilion Development
and the University of Chicago said in mid June 2010 they are very close to
signing an agreement on redevelopment of Harper Court. "We've
reached agreement on major deal points," the Herald quotes David Cocagne
of Vermillion. One element still being determined is hotel plan. Vermillion,
UC and city presented to the TIF council July 12
substantially revised and more detailed plan and financials that will go the
Planned Development process before or in the fall. Plans are already considerably
altered from independent study. A key element is response to application (necessary
by year's end) for a federal Recovery Zone designation, which would
help on loan interest.
As
the Herald reports June 23, [David]
Cocagne said Vermilion would be back before the community in the coming months
will finalized site plans, which show the layout of buildings on the property,
but not specific architectural elements. "I'm looking forward to feedback
from the community on the refinements" to the site plan, Cogagne said.
He anticipated beginning the legislative process for the development in August
or September.
Meanwhile, the TIF planning
subcommittee met June 14 (6:30 at Hyde Park Art Center) to consider funding
a traffic study on reopening Harper Avenue and of Harper between E. Hyde Park
Blvd. and 53rd Street. Since one of the highest concerns among residents and
nearby businesses is effect on traffic and congestion, people wonder at what
stage should a full traffic study be done that includes 53rd St. and Lake
Park Ave.? HPKCC supported the study and call attention to need for a more
complete study when appropriate. (
About incl. HPKCC letter) The
TIF Council approved this $87,000 July 12.
The Weekly News of May
27 2010 raised two questions or concerns about the development-- one is general:
the University and developers (David Cocagne) talk at once of the project
being "very transformative" and "celebrating all that is Hyde
Park"-- what do each of these these mean and can you have both and with
each being really evident. The more specific is affordability and housing.
Housing has been relegated to the second-phase of the development (likely
a condo high rise and lower-rise rental over retail). The housing component
may be creating a drag of uncertainty on funding even for phase I beyond the
general economic recession and financial volatility. The Weekly News quotes
Susan Campbell of UC Civic Engagement that it's "hard to find funding
to build housing, let alone mixed-income housing." Weekly News suggests
that even with an expected percentage "affordable" set aside, only
a subset of Hyde Parkers could afford the likely housing and beyond that suggests
that that if the market does not turn around the housing may not be built
at all because any affordable and mixed requirement would kill it.
The News and others also
wondered whether the retail redevelopment will endanger the viability of current
businesses. Campbell told them that the University will be working through
SECC and the Chamber to make sure there is room for local businesses (in Harper
Court as well as on 53rd?) to create an overall vibrant corridor with "retail
that appeals to everyone" and "is always trying to help [local]
businesses. (Their involvement in 4th on 53rd was asserted to be to "highlight
businesses that have stayed in Hyde Park.") Cited on the other hand was
Bart Schultz of UC Civic Knowledge who worried that local business would indeed
suffer if chains move in.
With regard to the degree
and kind of "transformative" effect of Harper Court redevelopment
might have, the News cited Schultz: Will redevelopment reinforce or work against
aspects that set aside Hyde Park, such as walkability, and a strong component
of amenities important to our distinctiveness such as bookstores and arts-artisan
serving shops. Inclusion of public art projects and suggested
return of chess were pluses, said Schultz. (Mentioned separately was keeping
Farmers' Market.) Schultz especially worried about whether such components
as a hotel would work against walkability and traffic manageability. In any
case, he said, it's critical that the conversations and inputs continue as
the project, "a constant process," inevitably changes. "When
a community gets into something like this, "the discussion is just barely
starting to get along."
Jay Ammerman, Hyde Park-Kenwood
Community Conference President, is cited in the Weekly News article as having
arrived over several years from worry over whether to change Harper Court,
especially from being a community-run commercial center, and then over the
University's taking it over into a compromise for redevelopment: "Over
the course of several years, we came to the conclusion that a change was necessary.
I don't think we have an argument about where this is headed." But, Ammerman
is paraphrased, HPKCC "as an organization working on behalf of the community,
would continue to critique University involvement so that community concerns
would be heard."
From TIF Planning
committee report on March 1, vetting of plan to the March 8 TIF general meeting:
Planning
and Development Committee Update, Chuck Thurow, Chair
The
committee met on 3/1. Topics discussed: TIF funding, pedestrian circulation,
Farmer's Market Survival, rentals, density, retail and traffic as it relates
to 52nd and 53rd street. The project timing will be in two phases - retail
will be included in the first phase, with residential in the second as market
conditions permit. The staging of interim parking while the old parking
lot is under construction is an open issue. Neighbors along 52nd Street
west of Harper have no alley, currently using the parking right-of-way to
access behind their homes. This is an open issue. The next steps Vermilion
is currently working on are architectural design and materials. Audience
comment and questions include (1). Donating Harper materials to Canter Middle
School, (2). The need to follow progress of the project and processes, (3).
A start date for construction, and, (4). The need for coordination of current
projects as to not disrupt current business activity on 53rd .
From
the May 10 2010 TIF meeting re funding traffic study on reopening Harper Ave.
Herald May 12, 2010,
by Sam Cholke:
... The Planning
and Development Committee of the advisory council has been tasked with considering
the first use of TIF funds on the redevelopment of the Village Shopping
Center and th Harper Court Shopping Center. The committee will discuss
commissioning an engineering study of opening Harper Avenue between East
Hyde Park Boulevard and East 53rd street. The Chicago Department of Transportation
would conduct the study for $86,594. "This is the beginning
of the process of getting developers to the table to say where they're going
to put things," Males said. The committee meeting will be at
6:30 p.m. June 14 at the Hyde Park Art Center, 5020 S. Cornell Ave. "This
will be our first use of TIF funds for this project, and it's pretty straightforward,"
said Chuck Thurow, chair of the committee.
Though there
are currently no immediate plans to start work or to open the street, Males
said the study would be a signal to developers that both the council and
the public is invested in the redevelopment of the Village Shopping center
and the Harper Court Shopping Center going through.
The
TIF planning subcommittee met in open session and recommended TIF funding
of $86,000 for an engineering study and drawings on opening Harper from
E. Hyde Park to 53rd. This was recommended for a TIF vote July 12 for its
own sake as well as to jump start Harper Court project. The study was said
to require considerable time, was independent of a likely later request
to fund the project at $1.3 million, and is independent of the full traffic
impact study the HCt. developer will have to do. Both studies will go beyond
Harper to questions of turns and lights on 53rd and on E. Hyde Park, and
the long-usurped alley between Harper and Blackstone.
At the July 12 meeting, the TIF approved $87,000.
HPKCC
Letter of June 14, 2010 to the subcommittee
The Hyde Park-Kenwood
Community Conference is continuing to follow the Harper Court Development
and E. Hyde Park Blvd. (Village Foods) projects with great interest.
The Conference supports
a traffic engineering study by the Chicago Department of Transportation
of Harper Avenue between E. Hyde Park Blvd. and 53rd Street and the impact
of developing Harper Avenue as a through street.
Although we would
not object to the study’s being funded in part or entirely by the
53rd Street TIF Advisory Council, we do question why the owners and developers
involved would not be asked to pay for the majority of the study costs.
It appears to us that the traffic engineering study costs would be part
of the customary development costs that the community would expect the
owners and developers to bear.
We also urge the
TIF Council and the TIF Planning and Development Subcommittee to recommend
that additional transportation and related impact studies are undertaken
promptly as the scope and configuration of these two projects, or of other
nearby redevelopments, become clear.
Sincerely,
Jay N. Ammerman
President
Herald June
13 2010. TIF council looks to reopen Harper Avenue. By Sam Cholke
An $86,000 study
on reopening Harper Avenue to through-traffic was approved June 14 by
the Planning and Development committee of the 53rd Street Tax Increment
Financing District Advisory Council. The study wil go to the full council
for approval in July.
"Everyone agrees
that Harper should be opened back up," said Chuck Thurow, chair of
the committee. Reopening South Harper Avenue between 52nd Street and 53rd
street has been suggested for the redevelopment of Harper Court Shopping
Center, and would also serve the redevelopment of the Village Shopping
Center on East Hyde Park Boulevard and Lake Park Avenue. "What we're
trying to do is kick-start the process," Thurow said.
The study, which
is expected to take several months, would provide the council with specific
plans for how to reopen the street whether the neighboring developments
happen or not. "You can actually take this and go out and bid it
out to contractors," Thurow said.
This is more than
a traffic study, which both developments will also be required to do,
according to James Wilson, a coordinating planner for the city's Department
of Community Development. "We haven't quite had the discussion about
[Harper Avenue} in the department," wilson said. "It gives the
city the go-ahead to start the planning of this."
Developers for the
Harper Court redevelopment said it would be beneficial to their planning
process. "I think that's a positive development," said Dave
Cogagne, president of Vermilion Development, which has been contracted
by the University of Chicago and the city to redevelop Harper Court and
the adjoining city-owned parking lot. "It's an important piece of
the process and a good used of the dollars."
In related news,
Cocagne said Vermillion would be back before the community in the coming
months will finalized site plans, which show the layout of buildings on
the property, but not specific architectural elements. "I'm looking
forward to feedback from the community on the refinements" to the
site plan, Cogagne said. He anticipated beginning the legislative process
for the development in August or September.
Top
____________________________________
July
2010
Vermilion asks
July 12 TIF meeting for $23.4 M (one fifth of Phase I $114 M cost). This is
apart from the cost of putting Harper Ave. through. More financials were spelled
out at subcommittee hearing July 19, Council expected to vote on July 26,
other meetings scheduled.
See Developer's July 12 presentation in pdf at http://www.hpherald.com.
Paraphrased in our Vermilion
July 12 2010. (More on that TIF meeting in TIF
Advisory Council Meetings.
Here: Herald report July
14, Herald report July 21- project pays back
tax funds, Herald editorial July 21-making progress
at Harper Court, Chamber of Commerce letter of
support July 21, HPKCC President Jay Ammerman's letter
of questions July 21,
Herald
report July 14 by Sam Cholke
The developers of Harper
court asked for $23.4 million from the 53rd Street Tax Increment Financing
(TIF) District Advisory Council on July 12 to fund the $114 million first
phase of the redevelopment."When the TIF was created it was known that
public funds would be necessary for projects such as these," said Dave
Cocagne, president of Vermilion. "This falls within the city norms
- in fact a little lower."
TIFs can fund up to
25 percent of private development. "The private sector by itself cannot
do this alone," Cocagne said. "it's still very difficult to obtain
funding for these type of projects." The full $23.4 million would not
come out of the TIF coffer right away, which is currently expected to end
the yer holding $2.4 million, according to documents from the city's Department
of Community Development. The boost in property tax income the development
would create would pay for about $15 million of what the developer is asking
for, according to Courtney Pogue, a consultant from The Waterworks Group
hired by Vermillion.
Tax increment financing
districts work by capping the property taxes going into the city's general
fund for 23 years from a specific area. if that area's property tax base
grows and creates new revenue, that new money is diverted into the TIF fund
to be used for development specifically within the district.
Pogue will provide
exactly how much and when funds would come out of the TIF coffers at teh
council's Planning and Development committee, which will meet at 6;30 p.m.
July 19 at the Hyde Park Art Center, 5020 S. Cornell Ave.
Ald. Toni Preckwinkle
(4th) supports spending the money on the project and said all planning for
teh project needs to be completed before 2011 to take advantage of tax breaks
the developer was awarded from the federal stimulus package, which are off
the table at the end of the year. "The principle driving impulse is
the federal funding source," Preckwinkle said. She encouraged the community
to sign off on the project that is expected to generate close to $5 million
yearly for the TIF, which currently collects about $745,000 a year.
The developer will
be back before a special meeting of the TIF advisory council at 7. p.m.
July 26 at Kenwood Academy, 5015 S. Blackstone Ave. Preckwinkle said she
expected the council to vote on the expenditure of TIF money at that meeting.
Council members said they did not expect to vote on the money at that meeting.
...
Vermilion presented
some changes to the site plan at the council meeting. The project now calls
for a parking garage below ground that enters off of East 52nd Street. a
second parking garage wil still be available off of South Lake Park Avenue.
The developers are expecting 15-25 retailers in the first phase of the development,
thought they have now ruled out a movie theater.
Vermilion will also
be presenting its plans for the redevelopment of Harper Court at the meeting
of the Coalition for Equitable Community Development at 7 p.m. July 20 at
Augustana Lutheran Church, 5500 S. Woodlawn Ave. The developers will also
be at the next meeting of the North Kenwood Oakland Community Conservation
Council at 6;30 p.m. Aug,. 5 at the Kennicott Park field house, 4434 S.
Lake Park Ave. The developers were scheduled to meet with the Hyde Park
Chamber of Commerce July 13.
Top
Hyde
Park Herald July 21 2010. Harper Court developer: Project pays back
tax funds. By Sam Cholke
Developers spelled
out this week exactly how the 53rd Street Tax Increment Financing District
would fund $23.4 million of the $114 million Harper Court redevelopment
when the TIF coffers are projected to hold less than $3.5 million at the
end of the year.
The project "pays
back what it's getting in public spending," said Dave Cocagne, president
fo Vermillion, the land developer on the Harper Court redevelopment. Cocagne
presented a timeline July 19 to the TIF advisory council's Planning and
Development Committee that showed the project nipping roughly $2
million out of the districts' tax revenue every year until the project is
online. That initial $2 million infusion into the project will
reduce the TIF's coffers to $500,000 by the end of the year.
The district will
collect enough in taxes each year to continue funding its current projects,
like the Small Business Improvement Fund and the CleanSlate program. Most
of the tax revenue above and beyond those projects will go towards incrementally
funding Harper Court. About $500,000 will be kept in the TIF's reserves
each year, according to Cocagne's estimates.
Tax increment financing
districts work by capping the property taxes going into the city's general
fund for 23 years from a specific area. If that areas' tax base grow and
creates additional property tax revenue, that new money is diverted into
the TIF fund to be used for development specifically within the district.
When the first
phase of the new Harper Court opens in 2014, nearly all of the new property
tax revenue it generates will go directly into the TIF fund. The
developers are projecting Harper Court to pour $2.1 million into
the TIF the first year it opens.
"We've finally
gotten to the point where we have a huge project to provide funds to do
other things," said Ald. Toni Preckwinkle (4th). "I strongly support
this project -- I think it's what we've been waiting for for a decade."
Not all the new tax
revenue generated by Harper Court will be available right away. The tax
revenue the development puts into the TIF will largely come right back out
each year to continue funding the project. Roughly two-thirds of
the development's TIF funding would end up being paid for by the
increased tax revenue the property generates. The estimates provided this
week show the TIF funding all the projects it funds today and also
building up a nest egg of $2.8 million by 2025, when the TIF expires.
"It's a very conservative
estimate and it assumes nothing else happens on 53rd Street in the next
15 years," Preckwinkle said. Antheus Capital has proposed a redevelopment
of the Village Shopping Center at the corner of South Lake Park Avenue adn
East Hyde Park Boulevard that is also in the TIF district but wouldn't require
any of the TIF's money.
Asked if the large
commitment of future TIF revenue would hamper the district's ability to
fund other projects, like the reopening of Harper Avenue between 52nd and
53r streets, Preckwinkle said, "We'll have to see. "We'll have
to use public resources of one type or another to do it," Preckwinkle
said, adding that it would probably be paid for out of the alderman's discretionary
infrastructure fund.
The full body of the
53rd street TIF Advisory Council will met at 7 p.m. July 26 at Kenwood Academy,
5015 S. Blackstone Ave., for a final vote on committing funds to the project.
The developers said they anticipate beginning the legislative process with
the city in September and finishing in November.
Vermilion's site plan
presentation to the TIF advisory council from July 12 is available as a
PDF on the Hyde Park Herald's Web site at hpherald.com.
Reflections
on July 12 and after July 19
Herald
editorial July 21, 2010. Making Progress at Harper Court
David Cocagne, head
of Vermilion Development, is telling anyone who's interested about his plans
for Harper Court. In the past week, Cocagne has run a lightning round in
the neighborhood, presenting to everyone from the 53rd street TIF Advisory
Council to the Hyde Park Chamber of Commerce to teh Coalition for Equitable
Community Development. He has put together what he considers to be a viable
plan, and he wants to persuade the neighborhood as swiftly as he can.
We are often on this
page counseling in favor of careful public deliberation -- too often plans
that significantly impact Hyde Park are hatched behind closed doors and
presented as a done deal. Indeed, much of the planning process for Harper
Court has paid mere lip service to the principle of open, transparent decision
making. Is Cocagne continuing down that path?
We don't think so.
A key funding source for Harper Court redevelopment is set to expire at
the end of the year, and all of the planning for the project must be completed
in order to secure those dollars. We are at a point in the process where
we must take stock of what our broad goals for Harper Court are.
In our view, Cocagne's
pans are well though out and reflect a set of practical and appropriately
aspirational priorities. REtail development comes first, followed by residential
and other use, potentially including a hotel -- something many Hyde Parkers
have long said is badly needed in the neighborhood. We agree, but we also
think this is the right order of development at the location. Build up the
retail on and around 53rd street, then increase residential density -- which
can only gird the businesses -- then add whatever other amenities are feasible.
What we are not saying
is that the time for questioning the development is over. Indeed, Cocagne
is making himself available to just about any group who is curious about
his plans. (So far, no requests from teh Boy Scouts.) We should take advantage
of his generosity and get as thorough an understanding of his ideas as possible.
In fact, this week's paper includes a letter from the Hyde Park-Kenwood
Community Conference with a number of questions about the development. we
look forward to hearing Cocagne's responses.
Among the most important
is how funding for Vermilion affects other priorities in the district. Simply
put, without some sort of development that increases the value of
teh TIF, we will not see any substantial priorities realized. That will
not happen in this case without using every revenue source that has been
identified. Our TIF will remain a glorified street cleaning program otherwise....
We also want the addition for CAnter that was promised and other big benefits
to accrue for the district.
We have heard a lot
of big plans for the 53rt Street TIF District, and we've seen little in
the way of development. This could be the domino that gets the significant
change we have been promised underway. Meanwhile, its chances for being
realized diminish significantly in just a few months' time.
Ultimately,
we believe now is the time to get this redevelopment going. The closure
of Harper Court was a tremendous sacrifice, and even this accelerated timetable
does not return retail to the location for years. Let's get whatever questions
we have out in the open - and answered - and proceed.
Chamber
of Commerce letter of support in July 21 2010 Herald. "Why we're backing
Vermilion"
The Hyde Park Chamber
of Commerce Board of Directors met July 13 with Vermilion Development, the
corporation the won the Harper Court redevelopment bid, to review their
plans. What we saw was a cogent, yet ambitious plan that we are convinced
will be the start to a revitalization of the core of our neighborhood's
main retail artery. We were impressed both by the thoughtfulness of the
presenters an their passion for developing this project which is so important
to the future of Hyde Park.
Here are some of the
details of the project, expected to break ground in late 2011. First, the
initial phase of the project wil add 15 to 25 retail businesses to Hyde
Park. Those businesses will include restaurants and could include everything
from retail clothing to a comedy club. Altogether, that component of th
project amounts to more than 100,000 square feet of new retail in Hyde Park.
Just imagine what that type of increased shopping opportunity will do in
terms of drawing customers to Hyde Park as a shopping destination and how
that will impact existing businesses sales opportunities.
The project ffects
Hyde Park's economy in many other ways as well. The construction of the
project will create roughly 500 temporary jobs and between 425 and 525 permanent
jobs. Additionally, after phase one, the project will include residential
units as well, adding another positive economic outcome that will certainly
boost the bottom line of businesses up and down 53rd Street adn throughout
Hyde Park.
This is a banner moment
for Hyde Park's business community, but it is also a critical juncture.
Part of the funding mix for this project , with an estimated total cost
of $114 million, is stimulus dollars, which require all planning for the
project to be completed by this year. As we all know, community support
-- or lack thereof -- can make or break a project winding its way through
City Hall. Hyde Park needs to speak loudly and with one voice in support
of this project, and the neighborhood's business community should lead the
way.
When it all comes together,
Harper Court will offer much more. These features will support and fuel
one another. This can be a place hat brings together neighbors, visitors
from other parts of the city, and people from around the world; a place
that is part business, part pleasure and always active. The mix of uses
has the potential to take what we love about Hyde Park and add to it what
we wish for, solidifying the future of our community.
Vermilion Development
has put together an exceptional project that will bring jobs, businesses
and a much-needed increase in residential density to 53rd Street and to
Hyde Park. The Chamber is committed to driving a vocal and united show of
support among Hyde Park businesses for this outstanding development. We
hope the rest of our neighbors wil se the importance of this proposal and
get behind Vermilion's vision for a revitalized Hyde Park.
Susan J. Walker, President,
Hyde Park Chamber of Commerce Board
HPKCC President Jay Ammerman asks "Harper
Court - boon or boondoggle? Herald, July 21, 2010, and for next Conference
Reporter
After months of confidential
negotiations among Ald. Toni Preckwinkle's (4th) office, the city of Chicago,
the University of Chicago and the chosen developer, Vermilion, the Harper
Court Redevelopment project appears to be on the fast-track.
From the Feb. 8 53rd
street Tax Increment Finance (TIF) Advisory Council meeting (when Vermilion
was announced as teh chosen developer) to the July 12 TIF Advisory Council
meeting, limited information was disclosed to the community (due to the
fact that the principals had apparently not concluded an actual deal). But
on July 12, that dynamic changed.
TIF Advisory Council
Chair Howard Males presided over the July 12 meeting. The first order of
business was to approve an allocation of $87,000 for an engineering study
to pen up Harper Avenue, between 51st and 53rd Streets. Then Vermilion representatives
reported on a revised site plan for a phase one development, estimated to
cost $114 million. The audience was advised that Vermilion planned to submit
a TIF funding request for $23.4 million, which amounts to 20.5 percent of
the phase one cost. Everyone was informed that this was well below the TIF
funding requests for comparable development projects.
Several TIF Advisory
Council members (and audience attendees) began to ask some probing questions:
- How would this TIF
funding request impact other TIF funding priorities, such as schools an
CleanSlate?
- How does this funding
request square with the fact that the 53rd TIF fund account only has about
$2 million available?
- How does the redevelopment
plan redevelopment plan accomplish turning over the city of Chicago's public
parking land to a private developer?
- How does Vermilion
plan to meet a commitment to award 28 percent of contracts to minority and
female owned businesses?
We were assured that
it would all work out just fine. Besides, Preckwinkle announced that it
was now time to move ahead and move ahead very quickly:
- The TIF Planning
Committee, chaired by Chuck Thurow, planned to meet in one week's time,
on July 10.
- The TIF Advisory
Committee, chaired by Howard Males, planned to have a follow-up special
meeting in two week's time.
- Community residents
are urged to attend a number of meetings with Vermilion during this
two week interval.
It appears that the
TIF Advisory Council is prepared to sign-off on all of these issues as
a farewell present to Preckwinkle as she prepares for her new political
opportunity. The alderman's decisions will have a long-term impact on
53rd Street and Hyde Park. As a resident who lives one block west of Harper,
I am hoping that the aldermen is correct in her assurance that it will
all work out just fine. Only time will tell us whether the alderman's
Harper Court redevelopment will be a "boon or boondoggle" for
the community.
Top
From
the July 19 and 20 2010 presentations and Q and As.
Complete
report July 19
Hyde Park Herald July
21 2010 report on the July 19 meeting of the TIF Planning Committee. Harper
Court developer: Project pays back tax funds. By
Sam Cholke
Developers spelled
out this week exactly how the 53rd Street Tax Increment Financing District
would fund $23.4 million of the $114 million Harper Court redevelopment
when the TIF coffers are projected to hold less than $3.5 million at the
end of the year.
The project "pays
back what it's getting in public spending," said Dave Cocagne, president
fo Vermillion, the land developer on the Harper Court redevelopment. Cocagne
presented a timeline July 19 to the TIF advisory council's Planning and
Development Committee that showed the project nipping roughly $2
million out of the districts' tax revenue every year until the project is
online. That initial $2 million infusion into the project will
reduce the TIF's coffers to $500,000 by the end of the year.
The district will
collect enough in taxes each year to continue funding its current projects,
like the Small Business Improvement Fund and the CleanSlate program. Most
of the tax revenue above and beyond those projects will go towards incrementally
funding Harper Court. About $500,000 will be kept in the TIF's reserves
each year, according to Cocagne's estimates.
Tax increment financing
districts work by capping the property taxes going into the city's general
fund for 23 years from a specific area. If that areas' tax base grow and
creates additional property tax revenue, that new money is diverted into
the TIF fund to be used for development specifically within the district.
When the first
phase of the new Harper Court opens in 2014, nearly all of the new property
tax revenue it generates will go directly into the TIF fund. The
developers are projecting Harper Court to pour $2.1 million into
the TIF the first year it opens.
"We've finally
gotten to the point where we have a huge project to provide funds to do
other things," said Ald. Toni Preckwinkle (4th). "I strongly support
this project -- I think it's what we've been waiting for for a decade."
Not all the new tax
revenue generated by Harper Court will be available right away. The tax
revenue the development puts into the TIF will largely come right back out
each year to continue funding the project. Roughly two-thirds of
the development's TIF funding would end up being paid for by the
increased tax revenue the property generates. The estimates provided this
week show the TIF funding all the projects it funds today and also
building up a nest egg of $2.8 million by 2025, when the TIF expires.
"It's a very conservative
estimate and it assumes nothing else happens on 53rd Street in the next
15 years," Preckwinkle said. Antheus Capital has proposed a redevelopment
of the Village Shopping Center at the corner of South Lake Park Avenue adn
East Hyde Park Boulevard that is also in the TIF district but wouldn't require
any of the TIF's money.
Asked if the large
commitment of future TIF revenue would hamper the district's ability to
fund other projects, like the reopening of Harper Avenue between 52nd and
53r streets, Preckwinkle said, "We'll have to see. "We'll have
to use public resources of one type or another to do it," Preckwinkle
said, adding that it would probably be paid for out of the alderman's discretionary
infrastructure fund.
The full body of the
53rd street TIF Advisory Council will met at 7 p.m. July 26 at Kenwood Academy,
5015 S. Blackstone Ave., for a final vote on committing funds to the project.
The developers said they anticipate beginning the legislative process with
the city in September and finishing in November.
Vermilion's site plan
presentation to the TIF advisory council from July 12 is available as a
PDF on the Hyde Park Herald's Web site at hpherald.com.
Report
on the July 19, 2010 presentation by the developer and Q and A. By
Gary Ossewaarde, HPKCC Dev. Committee Chair
Chuck Thurow's 53rd
TIF planning and development subcommittee met Monday, July 19, 7 pm at the
Hyde Park Art Center. About 30 attended including about 6 from the full
TIF advisory council. There was a presentation by Vermilion that was in
parts abbreviated and in others expanded from that of July 12. Extensive
questions were asked at the end of the part on the site and development
plans themselves and again at the end of the report on financing. It is
this reporter's view that both appeared more cohesive and feasible from
the presentation and discussion. Several persons including Alderman Preckwinkle
said strongly that this proposal is absolutely essential and transformative,
entails few dangers, and has to have backing now. No vote or recommendation
was taken, presumably Thurow will tell the closed council meeting and the
July 26 public meeting where the council will vote that the subcommittee
recommended.
Dave Cocagne and Chris
___ of Vermilion went into more full detail of the plan, component by component.
(See description in the July
12 presentation page.) Most but not all agreed with placing the mass
and height and large retail loading on Lake Park (one person said the hotel
is livelier and a better fit with Lake Park and adjacent transit.) Lessening
of parking access from Lake Park was considered favorably, although with
some concern about parking traffic that will now be on 52nd Street.
Concern was expressed
about making provision for Park 52 and Checkerboard. Vermilion would defer
to their wishes for incorporation, relocation, or to stay where they are.
Asks were made to include more non-shopping options and venues including
indoor places for meetings and events, and to make the gateway corner a
public meeting place to get inter alia newspapers.
Questions were asked
about the office building and the UC's relationship to it. The University
spokespersons said they are not committed to leasing all the building and
will look at subleasing. They will not own the building, which will pay
taxes (since it's not an academic use). (Vermilion said that while it has
an obligation to challenge assessments that were way out of line should
that occur, its real interest is in taxes enabling the TIF to pay its obligated
share. Any component not paying would threaten that and throw the development
out of balance.
The developer is committed
to making each phase look complete. Phase II could be done in separate parts.
Likely the condo building would be last.
Condo building would
share the parking access of the office building off Lake Park at the north
end of the site. The office pedestrian access is planned for its west side
at the new Harper Court street.
All of phase I will
open about the same time, which means the hotel will start later.
The finances.
Alderman
Preckwinkle had mandated the developer to bring specifics on finances to
this meeting, and they did.
First, they stressed
that their ability to ask 20.5% rather than a full allowable 25% from the
TIF brings big advantages to both the TIF and the project. The TIF's share
will leverage 4 private dollars to every 1 public dollar rather 3 private
to 1 public.
Two-thirds of the $23.4
million commitment ($15.67 million) is generated from the project itself
in the form of tax increment- [$5 million a year from 2014 through 2025
is the total in new taxes or 50 million, from which after $12.5 million
(2 = 750,000 x 14 years) is subtracted from the total asked leaves $12.4
to be paid from the increment and about $37.5 total in unencumbered increment
spread over 11 years or $3.4 million averaged. It does end up that the $23.4
is "paid back" into the TIF by about three years after the project
opens.]
The rest comes from
the initial $2 million this year and $750,000 each year through the rest
of the TIF.
The numbers as given
assuming no further development in the whole TIF:
$2 million this year
from existing TIF balance (goal is to keep not less than a half million
in the TIF till for spending plus cushion in any one year)
$6.6 total coming
into the TIF (about $800,000 + 2%) over its life if no development [note-
not sure why not $12+ since .8 x 15= 12]
$14.8 -amount the
annual payout from the TIF becomes for 2014 through the life of the TIF
$2.64 + $830,000
= $3.47 would be in the TIF in early 2011
$2 comes out at end of 2010
$960,000 left in TIF (including for other spending, city) leaving about
a half million.
2011
$500,000 balance + $975,000 (increased due to reassessment) in taxes-
$1.5 million
$750,000 goes out for Harper Court development leaving $900,000 or an
increase of over $200,000
2012-13 similar modest
increases in surplus
2014 Harper Court
comes on line and is reassessed
$2.1 million its increment taxes + $962,000 in the regular tax increment
= $3.68 million
$750,000 comes out for Harper Court = $2.93 in increment left before what
goes to Harper, expenditures, and leaving about $600,000 balance in the
TIF and about $2.5 going to the note if about $300,00 goes to other things.
2020 the balance
after all comes out is $1.2 million
2025 (year of expiration)
$2.5 million is the fund balance.
$3.5 million goes
to the project
If $322,000 is going to other things,
$2.8 million is the fund balance
Some questions: (Ald.
Preckwinkle explained that large things like an addition to Canter would
be paid off gradually - there would be a bond). And we would have the retail
plus, parking, and jobs. And much increased tax revenue for the government
bodies as well as the city general revenues. And this assumes no other development.
On the other hand, Harper Avenue is not factored in- it isn't in the assembled
property. Cost may well come from ward funds.
Land cost. The university
will buy the parking lot from the city for $1. The land's value will be
repaid much more in taxes later.
What if not enough
taxes come back? The developer would have to cover. There are required ratios
in the Redevelopment Agreement (RDA).
Canter addition? The
TIF would help pay for city bonds, contributing an amount each year. The
Alderman said CPS currently does not have a construction program.
Would assessments be
contested by the developer-owner? While they would have an obligation to
contest any out of line, it is their interest to have taxes coming into
the TIF to pay off the bond.
What if there is construction
lag? It would only push back the money into the TIF, not create a negative
balance.
Interim parking has
not yet been addressed. West of Harper Avenue is being considered.
Alderman Preckwinkle
thanked the TIF and the team. She said the team will need to inform us of
and when the various benchmarks come up and are met.
The team reiterated
its commitment to meet as things come up, design is readied, and on workforce
development, and to go through it all again when Phase II comes up.
Report on the July 20 community meeting called by
Coalition for Equitable Community Development to hear from Vermilion
By Gary Ossewaarde,
CECD Secretary
This meeting was held
at Augustana Lutheran Church. About 30 attended, several of whom had heard
little of the project.
A number of questions
were taken down on poster board and run through later by the developer team.
Next was the presentation (see July
12 Vermilion Presentation, also July 19 immediately above), interspersed
with questions. More questions and comments were taken after.
The pre written questions,
a good summary of community residents would like to know, or in some cases
feared about, the project, included:
What's to enforce
performance metrics?
Alternative transportation, green?
How is the ownership and conveyance handled?
Is the project really addressing 53rd Street and how will it improve 53rd
St.? Can there be a place for the newsstand?
How will minority
hiring and firms be addressed?
What will the
price be per square foot?
Will Vermilion own the development?
Will the office building pay property tax?
What is the University being paid for Harper Court land?
The track record of bringing in good businesses and having them stay is
poor-- who will this project's chances be made better? What's the merchandising
plan?
Who decides which tenants get in? Who will recruit? Who determines the
design of the businesses?
How will congestion be prevented/not worsened on 53rd Street? How will
truck delivery be handled and kept off 53rd?
Will the buildings including the hotel cast shadows on surrounding houses
and buildings?
The office looks like its design fits ill with the bank; won't it all
be too flashy?
What will be the income TIF from the project over its life? What are the
fallbacks if it's not enough?
What is the zoning category, what will be the assessment?
In the presentation,
the team of 12 firms stressed deep experience in Chicago, including in workforce
development, and in this kind of project and community--transformative university
related projects that define a space and reinvigorate communities.
They also touted their cash position/EMB rating and ability to execute.
The project is to be
community-focused, historically sensitive, actionable, destination-driven,
and sustainable. (They are pursuing LEED certification and have firms expert
at that.)
They will work for return types of firms the area once had or were even
known for (in some cases firms that left)- apparel, hotel, entertainment,
and to leverage the heft and cohesiveness into getting many tenants (lots
are interested).
The interior space
will serve both pedestrian and vehicular traffic, and needs both-- restaurants
especially like that. At the same time it can serve public events like jazz,
farmers market. And on the south end it bulls eyes onto the bank's arch.
They believe they have
a good parking solution (100% increase for the public)- spread out, partially
underground, and with two major access points and the parking is significantly
increased. Elevator access from parking will help make the site accessible.
Rates will be set to encourage use of it.
In answer to some skepticism,
they said there is lots of interest in the fitness center. It will double
as eyes on the street and interest those on the Metra. They believe this
and the other tenants will bring people who will come and stay to do other
things.
The hotel will have
a separate developer-manager. There will be design guidelines. It will have
ground floor retail oriented to Harper, which will eventually run as retail
from 51st to 53rd. They haven't decided where the main entry to the hotel
will be- likely interior as for the office building. It will be serviced
from below.
On traffic- CDOT has
the say. Major changes to Old Lake Park are one thing being looked at.
Access for trucks will not be on 53rd-- for most of the project it will
be off 52nd or Lake Park at the north end.
They will do a traffic study including pedestrian [confirmed by this writer
to have already started].
Phase II will add to
the retail mix and bring in more residents to shop. The three structures
could be done independently, likely retail then rental then condo. The west
building would have 41 rental, the north 116 for a total of 157 and the
condos 204. The west building will be 5 story, the north 6, the hotel 8-10
stories, the bank 12, and the condo tower 24 for a stepped effect.
Comments were made
that there is not enough green space (street level?), even the 80 foot spaces
in the interior are all in use even if, as said, permeable, and the green
gardens above aren't for everyone.
Skepticism was expressed
that the stores would rent or that the tendency of shoppers to go out of
the neighborhood or not to come here will persist. The team insisted this
project will be a game changer.
The retail environment
will consist of 50,000 sp in the first phase plus 8,000 in the hotel; 12,000
in the apartment buildings for a total of 70,000. There will be common service
corridors. Their thought goes beyond retail and create a unique place, especially
for the interior. It could include a comedy club, bars, restaurant. Chicago
based concepts are sought. Casual and fine. Asked about part of the interior
sector being enclosed or arcaded, they said retailers don't like that.
Community space was
also asked, and serious consideration for subleasing office space. And some
asked whether any of it would be affordable for small/local businesses.
Vermilion reiterated that the purpose is to bring in new businesses, and
they know that rents can't be too high. The heft will help businesses on
the outside of the project. Of course, they would talk to other businesses
in Hyde Park who want to be in Harper Court. An object is to keep dollars
in Hyde Park.
They expanded on concern
to have a positive broader impact on and integration with 53rd Street. That
includes making the theater complementary. University ideas for McMobil
fits in with this also- retail below and grad. housing above. And they are
considering ways to improve Hyde Park internal circulation and transit.
Discussed was hiring
and firms issues.
The schedule will be
18 to 24 months of construction. Leasing is underway. Work starts in late
2011, some retail comes on line as soon as late 2012, the offices by spring-summer
2013.
They touted the higher
public dollar leverage of the TIF investment (4:1) vs. other projects. 2/3
($15.67 million) of the $23.4 million public investment comes from the project
itself not current tax flow. And this means the $23.4 is paid back in TIF
increment in the three years after the project opens. How it works is through
an initial payment to the project of $2 million, then $750,000 base through
the life of the TIF. $450,000* yearly additional in the post opening years
(the project paying $2.1 in new taxes starting in 2014) goes back into the
project leaving $200,000 plus as an annually increasing surplus from increment
year by year. In the last year the surplus is $2.8 million if not spent.
The surplus could be much more if other development is bringing in money.
[This number may have been heard wrong, or is what comes out of normal non-project
increment annually) since there is about $11 million paid out to the project
in the last 10 years to make up the difference between $2m + ($750,000 x
14) = $12.5m and the total of $23.4m the TIF pays into the project.]
Answers to some of the questions written down at the start.
How is the ownership
handled? City lot is conveyed to the University for $1. At benchmarks, all
is conveyed to Vermilion. The university remains a property tax paying tenant
of the office building [and a partner in the controlling LLC].
City performance metrics.
They will be in the public document passed by City Council. The metrics
range from hiring, debt, and performance to accessibility and more.
Desire to have the
newsstand and related amenities inside. They are also thinking in that direction.
Alternatives- they
will almost certainly have I-Go and or Zipcars and are talking with them
about partnering. This would help their quest for LEEDS, which in turn gives
tax credits. Anything that enhances connectivity and accessibility counts.
The alley to the south
during construction and after. They will improve it as well as maintain
access to existing businesses. McHugh has lots of experience with tight
spaces.
Avoiding tunnel effect.
The office building will have features that break it up and there is a significant
offset at the fitness center (with a sun deck terrace). The pedestrian access
will be on the west facade, the new Harper Court.
How will retail choice
be made? The Vision documents will have a large say. They will have to strike
balances and it's not a science. They are determined it be a mix, create
options within categories, and some be unique.
Landscaping. It will
be ecological and sustainable.
What will the market
be like for housing? Study shows a number have left Hyde Park or did not
locate it here because there are certain kinds of housing in short supply
or are missing or outpriced here. This is especially true of young professionals,
empty nesters, grad students. Still, they want housing for a good cross
section. And 20% has to be affordable.
How will you make the
53rd corner exciting? They are working on it.
Said - we want the
materials and look contextual.
This writer later asked Vermilion principal David
Cocagne some additional questions the writer thought had not been asked or
sufficiently clarified.
By Gary Ossewaarde,
HPKCC Development Chair. We thank Vermilion principal Dave Cocagne for graciously
answering these questions.
When will agreements
be signed? The main and governing agreement/documents will be signed with
the city after the city approvals including City Council's. These will include
the ordinance and a Redevelopment Agreement (RDA) and a Planned Unit Development
agreement. Vermilion anticipates a separate agreement with the University
of Chicago around fall 2010.
How will the ownership
then devolve? The city sells the lot to UC for $1 which later conveys it
to the partnership led by Vermilion. Phase I land will controlled by the
latter under the the RDA. All the land will be governed by the Planned Development.
All will be spun off to a LLC, which will be a partnership of Vermilion
and U of C [proportions were not addressed but it will be related to Vermilion.]
Development of some components such as the hotel will go to other firms.
An overall management firm or firms will be hired under the LLC.
How will the TIF money
and the financing work? They will back instruments. (In effect the developer
lends upfront from financing.) TIF fund component use will have to be "reconciled"
with the permitted uses of TIF funds.
How close to the margin
is the TIF's budget? The cushion is quite large and unlikely to come close
even in the early years. Should there be a problem, the responsibility would
be the developer's.
What if TIF's are changed?
The developer will have to conform, but it would be a rare situation if
anything locked in by signing (the end of this year) would be impacted --the
TIF and its income will be designated.
What about loss of
a public asset, the parking lot? Its revenue-collecting capacity was already
gone with the city's sale of parking revenues to LAZ. The city will get
much more in taxes, in perpetuity, than it would have from selling or leasing
the land at market value (currently very low because of its minimal land
coverage and use and the lack of the planned surrounding development.)
How does the PUD work
and affect zoning? The PUD (which exists and will be amended) will be a
micro zone. What mainly changes is footage to area ratio (FAR). There will
still be a lot of use limits in effect.
When will traffic and
related studies start? They are underway now and will be finished in a couple
weeks.
This
space is reserved for additional questions not even asked publicly July 12,
19, 20. For some it may be early to be addressed, but they should be thought
about. Submit yours at hpkcc@aol.com attn
Gary.
The hotel. One of the
contributors (of great concern to some if not to most) to the failure of
the hotel proposal for Doctors Hospital on Stony Island was whether it would
be nonunion and about other working conditions. In addition, do hotels or
do they not create a special suite of congestion and other issues?
What exactly is it
that determines what is paid from the project-contributed tax increment
once the project has opened? 15 million (two-thirds is said to be generated
from the project. Is this a steady amount from 2014 through 2025 or is it
a rising scale? The number $450,000 above the annual $750,000 2011-2025
was given, but that would only be $5 million. If the non-project contribution
is $2 m in 2010 plus ($750,000 x 14 years) that is $12.5 million, leaving
c. $11 million (rather than $15 m) to be paid over 11 years. In either case
that averages to between $1 million and $1.36 million a year. (See July
26 below for some clarification.)
What controls over
retail selection and other matters will U of C retain vis a vis the spin
off LLC that will own and oversee management of the development?
Traffic management
and improvement and use of traffic study findings remain vexing.
Details, details, details:
Minority inclusion, architecture, noise from special events in the internal
streets, shadow effects....
July 26 2010 special TIF meeting. Re-presentation, Q
& A, Council vote
Introduction from Chairman
Males stresses that this request and project are way and beyond what the Council
has ever considered before. The infrastructure and new streets alone call
for enormous amounts of money.
Vermilion and team presenters
went mainly over the relationship of the project to TIF objectives and the
financials/economics including the challenges to doing such a project
What's asked is less
than what could be. The limit to TIF eligibility would be 27 million; the
city top threshold would be $28.5 million.
Two-thirds of total TIF contribution, $15 million of $23.4, comes from the
project- actually in the form of tax rebate to the owner-- money the TIF
doesn't see-- but that is not all that is generated ($15 million a year),
with part of that being surplus going annually into the TIF after the project
opens. The project cost is paid off in 3 years after opening based on increase
in wages and other kinds of taxes generated.
Step by step. 2010
TIF as $2.64 million, Gets additional $831,000 in normal districtwide increment
> $3.47 million. Of that, $2 million goes to Harper Court, $964,000 is
left. Non-recurring TIF costs 750,000 to Harper, recurring $213,000; left
in the till half a million (low point).
2011. .5 m + 925,000
(reassessed districtwide increment) > 1.4 million. - $750,000 out for
Harper Court, $273,000 for all else > .5 balance. About the same 2012,
2013.
2014. Out to Harper
so far $5m
Project comes on line. .5 balance + $2.1 from new property taxes > $2.6
m + about $1 m in normal increment > $3.68m. $750,000 goes to Harper,
$233,000 to other > $1.733. $.6 is said to be balance, [so an additional
$1.1 annually rising goes to Harper to end up at $23.4 by 2025? Since yearly
average 2014-25 to reach $23.4 is $1.67, the amount must go up annually
but so will balance].
2020 snapshot. $1.77
balance + $3.777 normal increment plus from the project. $3.25 going to
Harper ($750,000 plus $2.5), est. $270,000 toward others and still rising
balance.
2025. Surplus is now
$2.55 with $4m coming in or $6.50. $3.5 million goes to last payment for
Harper, leaving $2.5 million at end of TIF.
The total increment
increase is 4,100 percent.
Committee recommendation-
Chuck Thurow
Informational questions
asked at the July 19 meeting.
Can we see the redevelopment
agreement? It will be online and locked in by end of the year.
University's role. No ownership role.
Will future phases be staged? Can be.
Changes made that strengthen
the project.
Parking
Pushing retail to Harper
Harper Avenue
Minority and women firms, training, hiring will move quickly
Enough money left for Canter, other projects
Concerns
No architecture shown
Community input including on architectural contextuality
Gateway strategy
Traffic strategy including pedestrian, transit, linkages
Retail strategy specifics including Lake Park visibility
Net gain to businesses
Interim parking, business impacts and staging
Recommendation was
in favor with the proviso of continuing consultation. Males stressed the
unprecedented size of the ask and that it is less visible than small projects.
FAQs from the developer.
Who owns? A private
entity composed of Vermilion and other equity partners- not the city or
university. University will only be a tenant in the office bldg.
Performance requirements.
Will be strong-- the city can take pack a portion.
U of C will pay property
taxes? The office building will pay taxes. The University cannot go after
an exception, and the developer will need the taxes to pay off the note.
Does this request
cover only phases I? Yes.
Are there other public
incentives besides the TIF taxes? Yes, city contributes land and more.
Will money be left
in the TIF? Yes, in every year and growing rapidly after on line.
Questions from the
audience
What are the milestones
to the end of this year. They are driven by the need to secure the tax-free
recovery bonds by the end of the year.
If approved tonight, first city papers (PD request) are filed tomorrow.
The city process is for the Redevelopment Agreement, which goes before
the Community Development Commission then City Council committees and
the full City Council. This takes 60 to 120 days.
The Planned Development Ordinance process takes about 120 days.
How does retail leasing
fit into the project's going, where are you? Needs to bed at 60% to close
on the bond. It's underway. Also required is design to a certain level.
They hope the bond can be done late November or early December.
Residents on Blackstone
had many questions about how close the west building will come to their
line and whether there will be room for vehicular/service vehicle access.
Males said the council will pay attention to this, plus it will be in
the Harper Avenue study. Vermilion said there will be a setback above
ground level. More discussion was held and contacts asked.
How much of the developer's
money will be invested? $15 to $20 million. The University will lease
its building at market rate and be paid substantially less for the land
it bought than it paid.
A question was asked
on triennial reassessment- it will be for all properties in the district.
Space inside for
community groups as well? Suggested was to look to the major tenant of
the office building (UC) or to certain lessees of the retail spaces.
The hotel will have a conference center.
One said the project
over all looks consistent with the original TIF objectives, except there
seems to be no subsidized or free public parking. The developer said it's
a balancing. The structure and underground parking are very expensive,
but tenants will want prices to be low enough that people will park there.
They will look with tenants at validated parking options. The performance
requirements do not include free public parking. One pointed out extensive
areas of nearby free parking, including Hyde Park Shopping Center.
Who provides and
pays for the infrastructure. The developer.
Is it possible to
accurately forecast employment? There are industry benchmarks.
What is the breakeven
occupancy? Not answered.
Could you break down
the $114 million cost? Hotel $23 million, leaving $87 million for all
the rest of phase I (office, retail and parking). Private capital is $75
million, leaving a gap because the city measures the TIF dollars at $23.4
million but when that is monetarized it's not that much (lot lower.) Clarified:
the federal contribution is not money but right to have the note at tax
exempt rate, resulting in a 6% savings.
Height, sf. Hotel
8-10 stories, east retail/apartment 6 stories, west apartment/retail 5
stories, office [12], condo [up to 24]. Retail is 100,00 sf, office 150,000
sf.
Can anything else
major be undertaken with TIF funds? Requires additional development.
What if TIFs are
raided or redeveloped? Unlikely a law would change what is in place for
a particular TIF.
Retail interest and
what kind? Much, and many that are not or are no longer in Hyde Park.
Will you present
on UC campus. Willing to.
Is the MWE a floor
or a ceiling? Floor. A plan is being developed with the city, schools,
agencies. 28% minimum is built into the RDA.
Why is Vermilion
so interested in doing this in Hyde Park? Fits with university community
experience, fits with this community's extensive visioning-- there is
commitment from many sides.
Mae Wilson spoke
for Alderman Preckwinkle's enthusiasm and support.
Motion was
made to proceed to a vote. Chuck Thurow moved his committee's recommendation
to the council that the request by Vermilion be accepted with proviso they
continue to consult with the council. The motion was seconded. Vote by hand
and orally of proxies was taken. The motion was unanimously approved.
Adjournment.
Herald report.
TIF council backs $23.4M subsidy. By Sam Cholke
The 53rd Street Tax
Increment Financing District Advisory Council on July 26 unanimously approved
the largest expenditure in the council's history, a $23.4 million subsidy
for the $114 million redevelopment of the Harper Court Shopping Center.
"This project
does all the things that were set forth when this TIF wa created,"
said Dave Cocagne, president of the lead developer on the project, Vermilion
Development. The TIF was created in 2000 to finance a parking structure
within the district. During the last decade, the district has added retail
development, job creation and support for education and the public parks
to its priorities.
The $23.4 million will
go towards the project's 278 underground parking spaces and 55 on-street
spaces, a significant increase in parking compared to the current city-owned
parking lot the project will be built on. The new spaces will be metered,
and discussions are ongoing about a validated parking system with potential
retailers, according to the developers.
The audience was approving
of the project, but was concerned that parking would be set at an affordable
rate -- possibly free, since it is a publicly subsidized project. "Structured
parking is a very expensive amenity to offer," Cocagne said. Parking
fees will be set near market rate -- retailers will demand that parking
fees be low enough that people will want to come there, Cocagne said.
The TIF district will
not put up the whole $23.4 million right away. The redevelopment agreement
will be structured such that tax subsidies are paid out over the life of
the TIF. The deal is arranged so that the TIF district only puts up about
$750,000 a year through 2025 and the rest of the money comes from the developers
getting what amounts to a property tax refund.
"When we created
the TIF in 2000, we envisioned a transformative project much like this one,"
said Ald. Toni Preckwinkle (4th) [outside the meeting], who will shepherd
the project through the legislative process over the coming months. Preckwinkle
said she expects the project to be in front of the Plan Commission and the
Community Development Commission by October for the next phase of city signoffs.
Before going to the
commissions, the developers said they would be back in the community to
talk about the design process of the project, which includes a hotel, office
space and 10,000 square feet of retail space.
The developers are
working to get teh project fully funded by the end of the year to take advantage
of Recovery Zone Facility Bonds, which exempt the developers from some taxes
on the money they borrow to finance the project. The bonds must be used
by the end od the year.
Letter from
Irene Sherr in the Herald of July 28
My vote is to use TIF
funds for Harper project
I am writing to express
my support for the use of TIF funds in 53rd and Lake Park project. As long
as I have lived in Hyde Park, residents have lamented the limited commercial
and retail services. Even when the economy was stronger and healthier, Hyde
Park did not experience the boom in new retail and residential constructing
that concurred in many pars of the city over the past several years.
As one of the lead
organizers of the 53rd Street Vision Workshops, it is important to remember
th at NONE of the hypothetical development scenarios utilized were viable
without the use of TIF funds. and even with the use of TIF funds, participating
developers indicated that the projects still faced many, many challenges.
TIF is a development finance tool. Let's use! We need it!
Hyde Park finally has
a project that offers a significant amount of new retail and office space,
a hotel, housing and parking. This project includes things the community
has wanted for years. There have been countless meetings, discussions and
proposals. I urge the TIF council to approve the use of TIF funds and support
development and progress on 53rd Street.
Vermilion selected. The plan had public presentations to TIF starting February
8 2010. The next extensive refinement presentation was the July 12 appearance
with the plans they hope bring to Plan Commission, Community Development Commission,
Zoning Committee, and City Hall in the fall.
A large proportion of questions were answered in recent meetings, considering
we were barely into the planning process-- the large and thoughtful array
of partners have done a great deal of sophisticated thinking taking community
needs and input into account.
On
Vermilion: Their site: http://www.vermiliondevelopment.com.
One article about: http://www.chicagorealestatedaily.com/gci-bin/news.pl?id=36747.
Reach- dave@vermiliondevelopment.com.
By Alby
Gallun, Jan. 14, 2010
(Crain’s) — A downstate developer plans to knock down the
Harper Court shopping center in Hyde Park and build a $200-million mixed-use
project in its place.
The City of Chicago and the University of Chicago have picked Danville-based
Vermilion Development to
redevelop the site of the 40-year-old shopping center at 5211 S. Harper
Ave., according to a news release from the city’s Department of
Community Development (DCD). The university, which owns the retail center,
and the city, which owns a parking lot next to it, are partners in the
project.
Vermilion was selected from 12 firms that had responded to request for
qualifications to develop the site.
“The proposed development will complement and enhance other nearby
revitalization efforts, helping to ensure Hyde Park’s future economic
viability,” Acting DCD Commissioner Chris Raguso said in the release.
The Daley administration will give the project a tax-increment financing
subsidy and other financial incentives, and the University of Chicago
will sign a long-term lease for office space that will house several hundred
workers, Vermilion said in its own news release.
The project would also include a Hotel Indigo, a trendy chain that’s
part of Buckinghamshire, England-based InterContinental Hotels Group PLC.
Chicago-based Hartshorne Plunkard Architecture Ltd. is designing the project.
Vermilion did not say how large the public subsidy would be, or the size
of the lease with the university.
The developer and the administration must still hammer out a redevelopment
agreement, and construction is not scheduled to start until 2011. Once
Harper Court is razed, Vermilion plans to redevelop the 128,000-square-foot
site in three phases that may include restaurants, entertainment, retail
and office space, the release said.
From the
University of Chicago News site:
City of
Chicago and University announce developer for Harper Court
January 14, 2010
The City
of Chicago and the University of Chicago on Thursday announced that Vermilion
Development has been selected to redevelop the Harper Court retail complex
in Hyde Park.
Vermilion,
which has extensive experience in mixed–use developments, was recommended
by a joint committee comprised of Department of Community Development
planning staff and staff at the University of Chicago.
Vermilion
was selected from among 12 development firms who responded to a Request
for Qualifications that described the development opportunity and requirements
for submitting a proposal for the 128,000–square–foot site.
“This
creates an exciting opportunity to redevelop this portion of 53rd Street
by creating commercial and retail space that complements the surrounding
community,” acting DCD Commissioner Chris Raguso said. “The
proposed development will complement and enhance other nearby revitalization
efforts, helping to ensure Hyde Park’s future economic viability.”
“As
a result of thoughtful and creative input from Hyde Park residents and
business owners, we have an excellent development proposal that will serve
both the neighborhood and the many visitors to Hyde Park from throughout
the city and beyond,” said Ann Marie Lipinski, Vice President for
Civic Engagement at the University. “The commitment to Hyde Park’s
vitality by both the city and the university is very strong, and this
project is a powerful demonstration of that commitment.”
“I
am grateful to my staff, DCD personnel and University of Chicago staff
for their hard work over the last year on this project,” said 4th
Ward Alderman Toni Preckwinkle. “The development team which was
chosen will transform commercial development in Hyde Park.”
The project
is a partnership between the City, which owns an adjacent parking lot
on South Lake Park Avenue just east of Harper, and the University, which
owns the current retail properties.
Vermilion’s
proposal calls for redeveloping the 40–year–old shopping center
located at 5211 S. Harper Ave. by demolishing the existing center and
replacing it with a mixed–use development.
The proposed
$200 million development will be built in three phases that may include
a mix of unique dining, entertainment, retail and office uses.
The City
and the University will enter into negotiations with Vermilion and prepare
a redevelopment agreement for approval by the City Council at a later
date.
Sun-Times Take:
....Vermilion
was selected over better-known Chicago firms with deep connections to
City Hall, including the developer of downtown's Block 37, Joseph Freed
and Associates LLC, McCaffery Interests Inc. and Walsh Investors LLC.
Twelve bidders initially expressed interest in Harper Court, and last
March the field was winnowed to five.
A city-university
review panel recommended Vermilion because of its experience with mixed-use
deals, officials said. Vermilion has proposed replacing the 40-year-old
shopping center with dining, entertainment, retail and office uses.
A hotel,
branded as Hotel Indigo, also is part of the project, said Vermilion President
David Cocagne. He promised "an important, transformative project"
for Hyde Park.
The university
owns Harper Court, and the city owns an adjacent parking lot on Lake Park
Avenue. Both will open negotiations with Vermilion over a final redevelopment
agreement that would require City Council approval.
A lease
commitment from the U. of C. allows the office space to be constructed,
Cocagne said.
He said
Vermilion has formed a partnership with firms that have long experience
in Chicago, including James McHugh Construction Co. and the investment
bank William Blair & Co. LLC.
From the
Chicago Maroon. January 15, 2009. by Burke Frank
.... "Vermilion
offered the best combination of skills, ideas, expertise, and resources
to see through the kind of project the city and the University would like
to see at Harper Court," University spokesman steve Kloehn said.
Kloehn also cited Vermilion's financial stability in the decision, explaining
that a long-tem project taking place in a recession necessitates a developer
"with the means to see it through."
As part
of Vermilion's proposal, CEO and President Dave Cocagne described a two
phased project: the first, to begin in early 2011, would consist of constructing
retail and office space, a hotel, and a parking structure, to end by 2013.
Phase two would consist of mixed residential properties, including apartments
and a condominium tower, and would be paced according to demand,
ending as early as 2015.
"There
are likely to be office spaces, restaurants, and amenities, but beyond
that I think the detail still need to be worked out as to what else is
right for that mix," Kloehn said. He added that the hotel
and residential aspects of the proposal are especially tentative.
Both Kloehn
and Cocagne said more definite plans would be presented at the next 53rd
street Tax-Increment Financing (TIF) meeting, which is scheduled in March
but could be held sometime next month, Kloehn said....
Cocagne
said his company hopes "to put together a very compelling
program that both celebrates Hyde Park and provides new amenities and
services for the community. We're very excited to be undertaking this
project" Cocagne said. "We think it will be very transformative
for teh commercial core of Hyde Park and will really celebrate all that
Hyde Park is."
Herald report, January 20, 2010. By Kate Hawley
Vermilion
Development is th city and the University of Chicago's choice to redevelop
the Harper Court and the two adjoining properties. The Danville, Ill.-based
Vermilion, which has a portfolio of projects in university towns, is planning
a $200-million mixed-use complex to be built in three phases, according
to a news release from the city.
The firm
edged out 10 other developers in a competitive bidding process overseen
by the university and the city, joint owners of the development site at
the northwest corner of 53rd Street and Lake Park Avenue. The university
owns Harper Court at 5211 S. Harper Ave. and a vacant Hollywood Video
store at 1530 E. 53rd St., and the city owns an adjacent parking lot.
The development
plan calls for tearing down existing buildings, including three of the
four buildings in the 40-year-old Harper Court, to make way for a new
complex that will likely include retail, office, restaurant and hotel
uses.
"We're
very excited about the opportunity, because we obviously want to create
a destination for Hyde Park and the surrounding area, one that celebrates
the rich heritage of the area and brings something new to the community,"
said David Cocagne, Vermilion's president and CEO.
The company
is in talks with major hotel operators, including the trendy Hotel Indigo,
and may work out a lease agreement with the university, which would occupy
a portion of the development's office space, he said.
Vermilion
will seek public subsidies for the project, he added. "Our plan contemplates
the use of public incentives, including TIF," or tax-increment financing,
he wrote in a email message. "The amount of those benefits will be
negotiated with the city of Chicago."
the 53rd
Street TIF advisory council, the local board appointed by Ald. Toni Preckwinkle
(4th), will vote on the TIF funding. Howard Males, the council chair,
said he is likely to consider it favorable since the new development would
generate additional property tax revenue. "If it results in a long-term
increase in increment, the benefits down the road will be will be large
for our schools, our community," he said.
Vermilion
wil give a presentation on its plans at a specail meeting of the 53rd
Street TIF Advisory Council, to be held at 7 p.m. on Monday, Feb. 8, at
Canter Middle School, 4959 S. Blackstone ave. The council's Planning and
Development Committee will hold additional public meetings on the plans
in the following weeks.
At the most
recent DTIF meeting on Jan. 11, three days before announcing their choice
of developer, city and university officials said they were carefully vetting
the financial capabilities of the three development teams still in the
running -- McCaffery Interests/The Taxman Corp., Mesa Development/Walsh
Construction and Vermilion. "We've made a lot of progress in the
last three weeks," said Susan Campbell, associate vice president
for civic engagement at the university. "We're doing a lot more due
diligence than we anticipated."
Several
people in the crowd of about 60 who attended the meeting, held at Kenwood
Academy, 5015 S. Blackstone ave., asked if the public will get to see
detailed proposals from each of the three finalists -- a promise held
out by Ald. Toni Preckwinkle (4th). "We're still working that out,"
Campbell said. "We don't have an answer." Most likely, only
the preferred developer wil present, said James Wilson of the city's Department
of Community Development.
Top
From
the March 1 vetting meeting of the 53rd St. TIF Planning and Development
subcommittee
Gary Ossewaarde writes
on March 2, 2010
I think the developer learned more from the questions and suggestions from
the audience (which was not very large) than we did from them. There was
a short PowerPoint overview that included a bit more on structure size possibilities,
parking etc. The retail and restaurant-entertainment component and massing
were, in my opinion, shown to be stronger/larger, more mixed, and more first-priority
than under the first impression. Everything except the residential would
be done in Phase I, which would be simultaneous. They did not have much
of an answer on construction impacts, what happens to parking before the
garage is done, traffic flow esp. on Lake Park. (The guy from the Dept.
of Transportation said the developer has been asked to come in and talk
to them next week, and full traffic studies will have to be done.)
Chuck organized the topics for discussion according to RFP-type categories:
uses, density, massing, circulation, timing, staging, and next steps. Naturally,
circulation (in and especially outside) the site had the most concerns.
Chuck noted our letter of concern on that matter and that we ought to think
of changes that may be needed outside the site.
Next followed by the kinds of housing structures including their timing,
types, units, affordability, interface with surrounding buildings--especially
the properties west of the building west of Harper. Intriguing suggestions
that may not have sunk in included a north-south pedestrian throughway between
Harper and Lake Park (north from 52nd Place) that could create an interface
rather than a wall into the new Village Center.
There were also requests for internal activity and meeting space, use of
every means possible to prevent a wind tunnel effect across from the Bank.
And they were pushed a bit on the office building not being all UC, and
queried why the office has to be at the corner--the developer had good answers
and were firm on it, whether all would be convinced is another matter.
Committee meetings will continue.
The next TIF meeting is March 8, Monday, Kenwood Little Theater at 7. Topics
are: ANTHEUS UPDATE ON VILLAGE CENTER AT LK PK AND E.HPB- preparatory to
filing papers to start the process; report from this March 1 meeting, and
CleanSlate's 2010 program.
Top
Gary Ossewaarde submitted
at this meeting these points on what needs to be looked at.
Dear Mr. Thurow:
General reception of the Vermilion concepts is very positive, recognizing
that planning is in its very early stages. Hence the concerns I have gathered
from various parties since the February 8, 2010 presentation are really
things that need special attention and working out. There is general desire
and assumption that good communication and public input will continue throughout.
I call your attention to the letter of the Hyde Park-Kenwood Community Conference
and its Development Committee published in the Hyde Park Herald last month
stating the public interest or importance of good planning on three matters:
public (including TIF) expenditures, circulation within and to the site,
and managing impact of construction on the community and businesses.
I believe the earlier we develop thoughts and are prepared with parameters
for dealing with such requests or challenges, the fewer delays or quandaries
there will be.
Other items that must be carefully worked out include:
• Interface with 53rd Street and Lake Park Avenue.
o How will the interface improve instead of increase traffic conflicts and
congestion; how will it provide pedestrian friendliness and business district
orientation to and use of transportation? As one example, especially tricky
will be the handling of parking garage entry and access patterns and volume.
o The corner building must be a dramatic, signature draw creating a strong
gateway while at the same time enticing people simultaneously along 53rd
Street and into the new Harper Court. (One idea might be to brand the arch-
including use an actual one in pedestrian walkway(s) into the Court.
o If it turns out to that it is the office building that must go at that
corner, then its retail and entertainment/restaurants (which should be ample
and major and perhaps rise more than two floors at one point) must be certain
to open in conjunction with the office uses so as to create eyes-and-people
on the street well into the evening, rather than going empty at 5 o’clock.
• Every effort should be made that what-goes-where and construction
scheduling is determined by development logic rather than by accidents of
tenant commitment or site vacation. (By the way, there is widespread preference
that the developer own the land and development and make use decisions,
rather than the University.)
• The parking—amount, configuration, access during rush times,
and pricing have to be right.
• Plans and tenanting need to be looked at also in terms of improving
53rd Street and Lake Park Corridor business and not cherry pick from, separate
the new from the old or leave behind the existing business district.
• Public space—while impressive, its usefulness is limited by
its being outdoors. Is there a way to include a space that could be a culture
and arts center (including perhaps outreach spaces from present art centers)
and or space for winter markets? I note that there is little affordable
meeting space presently in Hyde Park—could some of that need be accommodated
here?
• Finally, people will have to be convinced that the financing truly
is sound and that the product will be worth it, not only in terms of aesthetics
and non-residential heft, but also by providing a broad range of what different
markets want at prices they can afford.
From committee
report on March 1 vetting of plan to the March 8 TIF general meeting:
Planning
and Development Committee Update, Chuck Thurow, Chair
The
committee met on 3/1. Topics discussed: TIF funding, pedestrian circulation,
Farmer's Market Survival, rentals, density, retail and traffic as it relates
to 52nd and 53rd street. The project timing will be in two phases - retail
will be included in the first phase, with residential in the second as
market conditions permit. The staging of interim parking while the old
parking lot is under construction is an open issue. Neighbors along 52nd
Street west of harper have no alley, currently using the parking right-of-way
to access behind their homes. This is an open issue. The next steps Vermilion
is currently working on are architectural design and materials. Audience
comment and questions include (1). Donating Harper materials to Canter
Middle School, (2). The need to follow progress of the project and processes,
(3). A start date for construction, and, (4). The need for coordination
of current projects as to not disrupt current business activity on 53rd
.
____________________________________________
From
the UC's fiftythird blogsite: What
is the University’s stake in developing that property? We are committed
to fostering a retail environment that will match the excellence of other
signature neighborhood features such as good housing, high-achieving schools,
and historic cultural institutions. The neighborhood improvements we seek
are in line with many of the goals identified in community meetings, surveys,
and visioning workshops conducted over the last two years, including increased
retail, restaurant, and entertainment options. When the Hyde Park flourishes,
the University and all its neighbors benefit.
WHAT
WAS IN THE FINALISTS' PLANS?
The
Herald during 2009 reported that one proposal talks about the Harper Theater
as for future adaptive reuse, another makes what seems to be a new street
that may or may not be for traffic, a third shows a large building spanning
a large part of the block.
Key
elements as reported by the Herald:
#1
- Six
new buildings
- Future
adaptive reuse of the Theater
- Green
space- maybe ground, maybe part of a green roof abutting Lake Park
- Harper
opened and two new streets, 52nd Place turning south as Harper court south
to 53rd
#2
- Five
parcels for five to seven new buildings
- A
building at 5210 S. Harper with rear parking
- Harper
through and two new- differing in that 52rd Place goes all the way to
Lake Park
#3
- Three
main buildings
- One
large building spans width of the block from S. Lake Park to S. Harper.
Uses to include retail, fitness, hotel and parking
- A
building at the northwest corner Lake Park and 53rd with a curving/scalloped
facade
- building
at 5210 Harper with parking in the rear
- Harper
opened but no other new streets
For more details
as they emerged, go to the Archive
#6 Harper Court Sale and Archive
#7 Harper Court Sale pages.
At the September
14 2009 TIF meeting, an overview was given by the city, saying the finalist
would be selected and only that one would present, November 9-- which caused
strong objection as Ald. Preckwinkle had promised the final 3 would present.
She said she "heard" the objection. (Concerns were at a later
time later expressed by reps of two organizations to the Alderman, who said
she would convey this to the team.)
Plans are to build a structure comp. to Hyde Park Bank at nw. corner of
53rd and Lake Park, with a up to 25 stories building at the north end along
Lake Park. These buildings are committed to retail, hotel and the rest office
including heavy UC commitment and later residential (which not yet clear
to this site). No details about what would be in Harper Court side or on
parking, although Harper Avenue will be pushed through fairly soon.
There
seems to be some confusion about when development would start after selection
of a developer (now in early 2010)-- 24 months to start or to see something
done? For Susan Campbell suggesting the former, see http://news.uchicago.edu/features/faq.53rd.street.tif.php.
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