Annual reports and recent summations of the 53rd St. Redevelopment Tax Increment (TIF) district
Brought to you by Hyde Park-Kenwood Community Conference, its Development Committee, and its website, www.hydepark.org
|
Annual reports and recent summations of the 53rd St. Redevelopment Tax Increment (TIF) district Brought to you by Hyde Park-Kenwood Community Conference, its Development Committee, and its website, www.hydepark.org |
Return to TIF News home. TIFormation publications. Recent TIF Advisory Council meetings. TIF Maps.
FY2006, FY2007. Annual Reports of any Chicago TIF can be picked up in room 703 City Hall, 121 N. LaSalle St.By Gary Ossewaarde
"Property tax revenue for the Project was $812,183 for the year. This was an increase of 69 percent over the prior year. The change in net assets produced an increase in net assets of $825,175. The Project's net assets increased 48 percent from the prior year making available $2,545,013 of funding to be provided for purposes of future redevelopment in the Project's designated area. Revenues increased this year due to the Project's economic growth an accordingly increasing the total equalized assessed value of parcels and subsequent tax increment and related collections."
Expenditures in that year were $16,074 of which $12,352 went to city staff costs. (Significant outlays for Cleanslate, SBIF, Canter School, and Vision process will be shown in the following year.) Excess of Revenues $589,289, Fund balance change $1,283,962 to $1,873,251 (no service or encumbrances).
No property was purchased, sold or transferred. No redevelopment activities were undertaken. No agreements were entered into. No obligations were issued.
The Project did enter into an ongoing Small Business Improvement Fund (SBIF). Estimated to complete $1,500,000 (private investment, no public- but $750,000 would be required to compete at 2:1 ratio.
Hyde Park Herald, July 25, 2007. By Seth Ufheil
Last year, more than half a million dollars was generated by th 53rd Street tax Increment financing District (TIF), but none of that money went toward a significant development. Instead, funds were spent only on administrative costs to prepare an annual report on the district's financial activity.
The TIF district, which was established in 1999, is detailed in a 2006 annual report filed with the city's Department of Planning and Development and made available to the public last week.
The additional money collected last year--the majority of which came from property taxes--brings the total amount of funds generated by the TIF to more than $1.8 million. After it was established, Ald. Toni Preckwinkle (4th) told the community that money raised by the TIF district would be used to help pay for an addition to the Miriam G. Canter Middle School, 4959 S. Blackstone Ave. Another of Preckwinkle's funding priorities is a parking garage for 53rd Street.
To date, neither project has begun, although some TIF money--about $15,000--was approved earlier this year for Canter Middle School to spend on cleaning and landscaping improvements. Another $150,000 has been allocated for Cleanslate, a neighborhood beautification program. Preckwinkle, who had not yet seen the repot, said there was no timetable for the two projects to begin. "We're looking to develop the whole Harper Court city lot," she said. "We're hoping developments at 53rd [Street] and Harper [Avenue] and at the Mobil Mcdonalds site wil contribute to the fund."
The estimated mature value of the 53rd Street TIF is $22 million, but future development along the street could significantly increase the amount of available TIF money because taxes from all new developments would flow into the fund.
53rd Street Redevelopment Project Area, Pursuant to 65 ILCS 5/.11-74.4-5(d) June 30, 2008
[Simplified from accounting:}
Net change in fund balance $598,358; not yet available portionof acrued $52,993
Total change in net assets- $651.331.Property tax govt fund $755,226 + int. $28,546 + adj = $836,765
Expenditures /expenses/projects. $185,434
Net revenue $598,338
Change in net assets- beginning of year $651,331
Fund balance/net assets
Beginning of year $1,873,251 + 671,762 = 2,545-013
End of year $2,471,589 + 724,755 = $3,196,344
Total fund balance $2,471,589 - all designated for future redevelopment
Breakdown of costs
Studies, plans, etc. $18,800
Rehab etc. (SBIF) $86,759
Job training (Cleanslate) $70,759Total; $185,434
Vendor costs- city $12,919, SomerCor SBIF $86,875, CARA cleansl. $79,759
53rd TIF costs $5,881 (Program mgt $165)
______________________
2007 TIF coverage
Hyde Park Herald August 6 2008. By Kate Hawley: TIF funds go to Cleanslate, ...rehabs in 2007
[Note: appears to include expenditures from previous or following year.]
A tax district centered on the 53rd Street commercial strip swelled its coffers by 26 percent to $3.2 million in 2007 from a year earlier, even as it dramatically increased expenditures on job training and small-business programs.
A 2007 annual report released by the city in July gives a breakdown on the finances for the 53rd Street tax increment financing, or TIF, district,... one of about 160 districts citywide. TIFs, which are meant to stimulate neighborhood development, cap property taxes for a 23-year period within the district's boundaries and funnel the excess, or increment, into a fund that can be spent on a range of local projects.
The 53rd Street TIF district spent just $16,047 in 2006. That figure jumped to $185,434 in 2007. A portion of that was set aside for administrative costs. The rest went to two programs new in the financial district that year.
Cleanslate, which received $86,875, offers job training through its neighborhood beautification service. Hyde Parkers have likely seen Cleanslate's interns, as they are called under the program, wearing fluorescent yellow shirts and scouring neighborhood sidewalks for trash.
The Small Business Improvement Fund, or SBIF, a city program that helps small-business owners spruce up their properties, received $79,759. About $34,00 of th at went to Patti and Tom Kidwell, the owners of Chant, 1509 E. 53rd St., for overhaul of the restaurants' interior, according to Derek Walvoord, of SomerCor 504 Inc., the nonprofit that oversees the SBIF program. The remainder went to John Frangias of JGF Management for roof and brick work on a building he owns at 1312 E. 53rd St., Walvoord said. A cafe and suchi bar called The Sit Down is soon to occupy the space. SBIF money has also been allocated for Kimbark Laundry, 1218 E. 53rd St.; Cedars Mediterranean Kitchen, 1206 E. 53rd St.; and Three Pillars Wellness Center, 1516 E. 53rd St.; according to Walvoord.
And $350,000 in TIF money was approved last year, for improvements to canter Middle School, 4959 S. blackstone Ave. The funds will be matched by Chicago Public Schools, said Irene Sherr, a local consultant who works with the 13-person council that oversees the district.
The council, which holds open meetings and workshops and issues regular publications, provides a level of public participation that is rare among the city's TIF districts, Sherr said. The TIF program has been criticized for its lack of transparency.
The 53rd Street TIF district is also unique in that it wasn't created in order to fund a particular development project, a practice common in other district, she said.
The next major project on tap for the district, the planned redevelopment of the Village Center mall at 1525 E. Hyde Park Blvd., won't use TIF funds, according to its developer, Eli Ungar of Antheus Capital. However, the redevelopment of the Harper Court shopping center on Harper Avenue between 52nd and 53rd Streets, still in the early planning stages, is a likely candidate for TIF subsidy, Sherr said.
The 53rd Street TIF was created in 2001 with an eye toward the development of parking to support future building on 53rd Street, and for securing funds to improve Canter Middle School.
In 2007, the TIF took in $808,219 in property tax revenue, a decrease of less than 1 percent from the previous year.