TIF Dwellers:

Living and Doing Business in Tax Increment Financing Districts

Week 13: “Back to the Drawing Board”
September 10, 2007

Meeting Notes and Recommendations for Future Action

Purpose of the Meeting Series

The City of Chicago Department of Planning and Development, in cooperation with 24th Ward Alderman
Michael D. Chandler, and 22nd Ward Alderman Ricardo Munoz, scheduled a public meeting to discuss the
proposed Ogden Pulaski Tax Increment Financing (TIF) district, on April 23, 2007. The meeting was
cancelled due to a change in leadership in the 24th Ward.

A group of North Lawndale residents, including Joe Ann Bradley, Valerie F. Leonard, Eric Strickland and
Thomas Worthy, provided the initial framework within which to begin to educate other residents on the pros
and cons of TIF districts. The group thought it best to work with existing organizations initially, and to allow
meeting participants to decide the next steps after the 5-week education period was completed.

TIF Dwellers: Living and Doing Business in Tax Increment Financing Districts (TIF’s) was developed to
educate North Lawndale stakeholders on the process of creating TIF districts and to explore the potential
impact upon local homeowners and small businesses.

The Lawndale Business and Local Development Corporation (LBLDC), Community Action Group (CAG)
and Valerie F. Leonard, partnered to convene a broad cross section of North Lawndale residents and
stakeholders in discussions around the City of Chicago’s proposed plan to establish a tax increment
financing district with approximate boundaries of Grenshaw to the north; Albany to the east; 24th Street to
the South and Kenneth to the west. According to City Officials, this area is 876 acres, and includes 5,900
tax parcels, 3,900 buildings and 8,278 occupied units (households). This author believes that the 5,900
parcels do not include City owned properties, or parcels that are tax-exempt. Assuming an average of 4
persons per household, it is believed that over 30,000 persons could be impacted. Further clarification is
required.

The series drew upon expertise of North Lawndale residents, public officials and lessons learned from other
communities to begin to explore ways in which community stakeholders, community development
organizations, elected officials and Chicago Department of Planning representatives may work together to
create a shared vision for sustainable development in the community.

As a result of the 5-week series, meeting participants have requested that the group continues to meet at
least monthly, and begin to develop a shared community vision for holistic community development in North
Lawndale. As of August 28, there have been 12 general meetings, and 2 committee meetings to discuss
the reinstatement of the Lawndale Community Conservation Council. Meeting participants were surveyed
to get a sense for their respective knowledge of the TIF process and vision for community development in
North Lawndale. The 5-week series also served as a catalyst for the planning of the North Lawndale
Chamber of Commerce.

This work has also attracted the attention of John Hagedorn, PhD, a tenured professor at the University of
Illinois Great Cities Institute. Members of Dr. Hagedorn’s class on social responsibility are following the
socio-economic changes in North Lawndale, and getting a sense of how those changes are impacting local
residents. Members of the class have begun to attend TIF Dweller’s meetings and assist in gathering data
that will further assist local residents in making informed decisions concerning local development; and to
help frame public policy as it relates to local participation in community development decisions.

The City of Chicago Department of Planning and Development, in cooperation with Alderman Sharon D.
Dixon, and Alderman Ricardo Munoz held a public meeting on July 24, 2007 to present the proposed
Ogden-Pulaski TIF to local residents and other stakeholders. They provided an overview of the TIF
process, the next steps in the approval process and opened the floor to questions from community
residents. Detailed notes from this meeting are being prepared. It is estimated that over 300 people were
in attendance.

Local residents met again on July 30, 2007 to reflect on the outcome of the July 24th meeting. One of the
key outcomes of this meeting was the creation of the Lawndale Alliance, a group of Lawndale stakeholders
who have come together to improve the social and economic conditions in Lawndale by promoting
increased community participation, education, resident leadership, and holistic community and economic
development. To date, the group consists of approximately 100 members representing block clubs,
individual property owners, local business owners, churches, schools.

The sections that follow are based upon input from meeting participants, survey results and feedback from
the City’s public meeting on the Proposed Ogden-Pulaski TIF.

Acknowledgements

We thank the following persons for making this series possible: Asma Ali of the University of Illinois-Great
Cities Institute; Frank Bass of the 4100 West 21st Place Block Club; Mary Bonome of the City of Chicago
Department of Planning and Development; Willie Mae Bowling of the Southwest United Block Club
Council;Joe Ann Bradley of the Community Action Group;Mark Carter of VOTE; Cook County Board of
Review; Margaret Davis of the Chicago Chapter-National Black Nurses’ Association; Sgt. Gabriel Flores of
the 10th District Police Station; Roena Gill of the 4000 West Cermak Block Club; Dorothy Goldsmith of the
Lawndale Neighborhood Organization; Drew Goldsmith of the 1900 South Avers Block Club;Jean Guyton
of the 4100 West 21st Place Block Club; John Hagedorn of the University of Illinois-Great Cities Institute
and his class on social responsibility; Derrick Harris of the Lawndale LSC Federation; Latrice Harris of the
4200 Block of Cermak Road; Joe Hoereth of the University of Illinois at Chicago-Great Cities Institute;
Members of In the Loop Listserv; John Paul Jones, Friends of the Parks; Bernita Johnson Gabriel of the
Quad Communities Development Corporation; Lawndale Community Residents/Stakeholders; Jacqueline
Leavy, formerly of Neighborhood Capital Budget Group; Theodis and Essie Leonard; Valerie F. Leonard,
Community Development Consultant; Isaac Lewis of the North Lawndale Community News; Otis Monroe of
the Monroe Foundation; Samuel Muhammad of the North Star Mission; Shirley Newsome of the Kenwood-
Oakland Community Conservation Council; North Lawndale Community News; North Lawndale Online;
Wanda Perry of Lawndale Business and Local Development Corporation; Pastor David Pope of Brotherly
Love MB Church; Nicole and Cedric Pope of Build Today Lead Tomorrow; Pastor Charlotte Rolling of the
Freedom International Outreach Ministry; Cook County Commissioner Mike Quigley; Tanya Sanders of the
University of Illinois-Great Cities Institute; Rev. Lincoln Scott of the House of Prayer; Zina Simmons of the
4000 West 21st Street Block Club; Mahaley Somerville of ACORN; Cook County Commissioner Robert
Steele; Eric Strickland of the Lawndale Business and Local Development Corporation;Tiffany Strong of the
1500 South Tripp Block Club; Gladys Woodson of the 4200 West 21st Place Block Club;WNLO
Radio;Thomas Worthy of Citizens for a Better 24th Ward
Attendance

There were about 60 North Lawndale stakeholders in attendance, including residents, representatives from
nonprofit organizations and potential investors.

Meeting Summary

The theme for the meeting was “Back to the Drawing Board”. Ms. Joe Ann Bradley provided a status
report. Ms. Bradley indicated that a number of people from the Lawndale Alliance attended the Mayor’s
Budget hearing, and made requests to reinstate the Community Conservation Council and to create TIF
Advisory Councils.

Ms. Bradley also indicated that Congressman Danny K. Davis, Ms. Valerie F. Leonard Brother Samuel and
she were guests on the Garfield Majors Radio Talk Show, on AM 1450. Topics discussed include eminent
domain, the Proposed Ogden-Pulaski TIF police brutality and the War in Iraq.

Ms. Bradley reminded the group that the City has delayed the Proposed Ogden-Pulaski Redevelopment
Plan because they need time to revise the property surveys. Of major concern is the fact that a number of
properties have erroneously appeared in the list of properties to be potentially displaced. Ms. Bradley
distributed a list of the properties that appeared on the list, and the contact of a representative from the
Department of Planning in the event that any meeting attendees’ property appeared on the list.

Ms. Valerie F. Leonard gave a financial report indicating in-kind and cash donations for the organization
totaling $2,635.47 between April 23, 2007 and August 31,2007. The largest expenditures included copies,
the annual picnic and a deposit for organization t-shirts.

Ms. Leonard also provided copies of a TIF summary outlining the financial performance of TIFs impacting
the Lawndale community. If the Proposed Ogden Pulaski TIF is approved as planned, there will be 7 TIFs
impacting Lawndale, with redevelopment budgets totaling $375,401,517. Of this amount, $20,800,00 is set
aside for job training. Only 1 TIF, the Midwest TIF, has funds for neighborhood improvements (including
façade improvements for homes) and a small business improvement fund. To date, the TIFs have
generated a total of $69,451,493.00.

Ms. Roslyn Brown provided a recap of her discussion with Alderman Sharon Dixon concerning the
possibility of having a TIF Advisory Council for the Proposed Ogden-Pulaski TIF. She indicated that Ms.
Dixon will be appointing a committee comprised of her “own people”. Ms. Brown expressed her desire to
have at least 2 people who attend the Lawndale Alliance meetings to be selected for the TIF Advisory
Committee.

Ms. Joyce Moore provided a report on the Annual picnic. About 65 people were in attendance, including
members of the Lawndale Alliance, the Lawndale Community and members of the House of Prayer
COGIC. The event was supported financially by collections from the Lawndale Alliance, donations from
North Star Mission and State Representative Arthur Turner.

Brother Samuel provided a report on the Jobs Now Program. He indicated that he was with a group of
young men who conducted a march for jobs within the boundaries of the Roosevelt and Cicero Industrial
TIF. He indicated that North Lawndale has over 300 manufacturing firms. Of the 6 companies the men
visited, none appeared to have any African American employees, with the exception of one receptionist.
Brother Samuel indicated that 3 of the 6 employers mentioned that LBLDC was their contact to provide
qualified applicants for employment from North Lawndale. He indicated that the Lawndale Alliance has
already collected resumes and/or job applications from about 67 North Lawndale residents. The Lawndale
Alliance will be hosting a job fair in November to provide networking opportunities between prospective
employees and employers. He also mentioned that the Jobs Now Program would be working with general
contractors to provide apprentice opportunities for prospective employees.

Brother Samuel then provided a report on deputy registrar training. He indicated that he has provided the
names of persons interested in going through the training to the Chicago Board of Elections. He needs to
contact them and confirm a date for training in the community. The Lawndale Alliance would enlist names
of persons interested in training for another week, and then finalize a date for training.

Representative Arthur Turner provided brief remarks. He indicated that all TIFs within the State of Illinois
must go through the Rules Committee. He also said that he would not allow any TIF to emerge from the
Committee unless there was community support. Representative Turner also indicated that he would be
willing to come back to another meeting in the near future to address issues of concern to the Alliance.

Issues

The open discussion among the audience and panel members revealed a number of issues of concern that
should be addressed through ongoing discussions among community stakeholders and elected officials.
These issues should be looked at on a cumulative basis, and include issues raised during the past 13
weeks.

1) The proposed redevelopment plan (housing impact study) indicates the potential displacement of
1,200 people.

2) Lack of opportunity for African Americans from North Lawndale to work as developers or laborers
on construction sites in their own community

3) The fact that TIF dollars generated in one community may be used to fund projects in other
communities in other areas of the city, even downtown.

4) Except for some homeowners who qualified for façade improvements under the Greystone
Initiative, most local residents do not benefit directly from TIFs. At the same time, their tax dollars
are being used to subsidize large developments.

5) Need to advocate for policies that create an environment in which local residents and small
business owners may take advantage of the opportunities that the TIF would bring

6) When tax assessments go up, incremental taxes generated within the TIF stay in the local district.
Money that could be used to fund public schools, neighborhood parks, and Cook County Hospital
is being used to promote development.

7) Need to increase skill level of North Lawndale residents and businesses so they may take
advantage of opportunities in the TIF

8) Need to expand the base of community stakeholders who participate on panels and attend TIF
Dwellers meetings.
 9) Need to engage Alderman, City departments and sister agencies in the conversations.

10) Need to develop a more formalized mechanism within which to focus discussions.

11) We are still in a enterprise community- The federal designation for enterprise/empowerment
community has expired. It ran from 1994-2004. There is an enterprise community designated by
the State of Illinois. We need a better map of all TIF districts. Commissioner Quigley said we can
get copies from his office.

Recommendations

1) Research redevelopment plans, budgets and historical trends in hiring for North Lawndale-based
TIF districts. Identify barriers and opportunities for hiring and training of current North Lawndale
residents. Work with local employers to increase number of North Lawndale employees.

2) Research state code and city ordinances governing TIF spending. Advocate for dollars generated
by local TIF areas to stay in the TIF district that generates the dollars. Advocate for bond financing
and other up front capital to fund newly-created TIFs until they generate sufficient tax revenues to
be self-sustaining.

3) Manage expectations regarding direct benefits to local residents. Of an estimated 5,900 property
owners that are located within the proposed boundaries of the Ogden-Pulaski TIF, it is likely that
fewer than 100 would be able to receive direct benefits through home improvements. TIF dollars
for home improvements should be leveraged with other City programs and contributions from
developers wishing to receive TIF funds or other incentives.

4) The community and City officials should work together to explore creative ways to provide benefits
that would impact a greater number of residents. For example, if education at our traditional public
schools could be considered workforce development under the laws that govern TIF districts,
provision for school improvements and curriculum enhancements should be made in the budget for
the proposed Ogden-Pulaski TIF. Similar treatment should be given for issues surrounding
technology training to eliminate the Digital Divide.

5) Special emphasis should be placed on programs that build residents’ capacity to take advantage of
the TIF, including job training, education and small business development.

6) Allocate a portion of dollars generated by the proposed Ogden-Pulaski TIF for maintenance and
capital improvements of the local parks within the district. This should not be limited to
improvements to Douglas Park related to Chicago’s bid for the Olympics.

7) Research current trends in community development in North Lawndale. This includes reviewing
progress made in existing TIFs within the community; evaluating the proposed Ogden-Pulaski TIF
and knowing who is sponsoring its creation; learning more about the proposal to host Olympic
swimming events at Douglas Park; looking at trends in student academic performance, school
closings and plans for new schools; reviewing historical trends in City land sales; and researching
proposed developments in the area. Community residents and City officials should work together
to identify opportunities for community-driven development that fits within or builds upon existing
plans, such as the New Communities Plan.
 8) In the interim, develop a taskforce and committees to carry out the work, regardless of whether or
not any formal TIF oversight committees are developed.

9) We need to establish a conservation council to look at the developers coming into the ward. We
will learn from the Kenwood- Oakland people at the next meeting

Next Steps

1) Conduct Town Hall Meeting on TIFs

2) Organize community-based council to work with Alderman and Chicago Department of Planning to
bring about sustainable development that creates win-win situations between current community
residents and developers. The council should represent a broad cross section of the community
stakeholders and should include the homeowners, renters, business owners, design professionals,
representatives from schools, community-based organizations, the Chicago Park District and
Police Department. This council should be empowered to make recommendations to the Alderman
and Department of Planning and Development.

Respectfully Submitted,

Valerie F. Leonard
Community Development Consultant