8/13/2019 From the Ward Office: Maryville Questions December 23 2013

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Commonly Asked Questions about the Maryville Site

How was the TIF amount determined for this project?In recent years, the Citys goal has been to provide the least amount of TIF dollars aspossible to make a project work. The Dept. of Planning relies on a complex set of

mathematical variables to determine this amount and then negotiates this amount withthe developer. The goal is to have the lowest possible TIF subsidy that ensures a feasibledevelopment.

The Maryville site is lakefront property. Why should it be considered blighted?The City of Chicago considered it blighted based on a set number of variables, one of them being that this property has been vacant for several years and no developer hasstepped forward to put a development on this site.

TIFs have received so much negative press. Why should any TIF be trusted?TIF (Tax Increment Financing) projects have rightfully received negative press becausethere has not been enough oversight of them and some officials treated them as freemoney for various pet projects. However, TIF projects also serve a great purpose for generating more tax revenue for an area that generally isnt doing well. Case in point, theWilson Yard TIF project has encouraged an incredible amount of economic developmentwithin the ward.

It should also be noted that the number of TIF projects increased while federal and statedollars were decreasing for the same types of projects. TIFs do especially well in areasthat already have some evidence that a community has other resources available to helpthe area thrive. The task is making sure TIF projects are done in an ethical andtransparent manner.

Dont TIF projects take money away from schools?TIF projects do not take money away from schools, but TIF projects do shift the taxburden onto the surrounding community and those that pay taxes inside the TIF districtwill pay more taxes to support the schools. However, the boundaries of this TIF districtare strictly on tax-exempt property and therefore, this property has never contributedrevenue to the tax rolls. You cant take away money that was never there.

Why cant this project build more affordable housing?The Affordable Requirements Ordinance specifies when developers must set asideapartment units or money to build more affordable housing. The developer is meetingthose requirements.

There are 3 options:1. A percentage of apartments are set aside for residents with an area medianincome (AMI) of 60% or less. The advantage here is that more affordableapartments are built for those at this income level.

2. Money that would have gone to affordable apartments is given to the Chicago LowIncome Trust Fund, which provides rental subsidies to people with an AMI of 30%or less. The advantage here is that people in the lowest income bracket benefit more.

8/13/2019 From the Ward Office: Maryville Questions December 23 2013

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3. A combination of the two options above occurs.

It could be argued that Option 2 is a better option because this TIF project iswithin a census tract where 45% of the household income is $15,000 or less, andHUD discourages building more affordable housing in census tracts with

exceptionally high rates of poverty. Also, the Uptown neighborhood has thehighest rate of government subsidized units within the City of Chicago; 15 timeshigher than the median average found in Chicagos other 76 community areas.See the Ward Master Plan for more information about affordable housing in the 46 th Ward.

Why isnt Cuneo Hospital restored in this project? A for-profit developer expressed a desire to rehab this building. However, he wanted thebuilding to be given to him for $1 and TIF guidelines dont allow giving property over tomarket-rate developers for less than what a property is worth. The Commission onChicago Landmarks also stated there was not sufficient criteria to landmark the property.Lastly, the Zoning & Development Committee made the recommendation that thisbuilding be torn down and have the property given to the Park District. Ald. Capplemanagreed to support this recommendation.

Why cant TIF surplus dollars be returned to the City? TIF surpluses already are. Since 2009, $441.2 million have been returned. Under

State law, 6% of this amount is given to the Park District, 20% is given to the City,and 52% is given to CPS.

The City has a process of calculating this amount so that it does not endanger aplanned expenditure for a TIF. For TIF projects that have lost money, money istaken from neighboring successful TIF districts to make up for the loss of funds.

Why cant we only spend TIF funds on rehabbing the Clarendon Park Community

Center and not spend any money on the market-rate development?Tax-exempt properties add some value to a neighborhood, but they dont provide moretax revenue. More successful TIFs will keep their primary focus on projects that generateincreased tax revenue. This increased tax revenue helps to pay for the TIF project and itwill also help pay for rehabbing the Clarendon Park Community Center.