Thursday, July 31, 2008

"Move!" But Give Us Your TIF Money First...

Ald. Shiller's staff is mighty quick to tell residents and taxpayers to move if they don't like the crime here.

But they want to bleed the homeowners dry at the same time.

Sneaked into the end of a Sun-Times article today:

"Daley proposed using $10 million in TIF funds to help develop a 75,000-sq.ft. student center and parking facility at Truman College."

Why don't Truman students pay for their own parking and student center in the form of increased registration fees? Why put the burden on residents who live near Truman? The same people who are mocked by Denise Davis at a public meeting and told "leave and don't come back!" by George Atkins.

20 comments:

  1. The worst part is that this public use of funds isn't enough. The Truman College kids will be able to park for free while the homeowners who paid for the parking garage will still have to pay full price, as will any of their guests.

    What's the old quote? "Taxation without representation is tyranny."

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  2. TIFs have simply gotten out of hand. It's ironic TIF money is being proposed for a (quasi) educational purpose given that the most detrimental aspect of TIFs is that they divert funds from eduction.

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  3. The key part of that sentence is "DALEY proposed using $10 million..."
    Residents should be rightly outraged at their Mayor first and at their Alderman for being his fluffer. Helen "will-do-anything-for-Wilson-Yard" Shiller dutifully did his bidding at the Truman parking garage meeting. She tried every angle to make it look like giving the money was the common sense reaction of any non-bigoted person but it was plainly apparent to everyone in the room that Truman wasn't getting any more money for this project from City Colleges and that a backroom deal had already been brokered. The only problem is that that residents in the TIF never got any say in how Daley wanted to spend the TIF money because Shiller is bought and paid for with the WY deal. TIF reform is needed now, and needed badly.

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  4. The Wilson Yard/Truman College area is becoming one big boondoggle. Well at least someone is getting rich in this down market.

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  5. The black box of TIF fund allocation is clearly a big problem in Chicago, but how is supporting education a bad thing for Uptown. Bradley, you rightly point out that one of the biggest problem with TIFs is that they divert money from education so isn't it a good thing when TIF money gets allocated specifically for local education programs. Just because the Alderman supports this program doesn't mean that we should be knee-jerk critics. For those of you who aren't paying attention to the crisis in higher education, the massive defunding that has occurred over the last 15 years is increasingly putting the cost of education out of reach for those who need it most. City college systems are an important link allowing those folks who weren't lucky enough to attend elite private institutions or who attend school on a different time table from the "norm" to actually get an education. So raising registration fees just makes it that much less affordable and increases the chances that someone who might just need that little extra education to eek out a decent living gets marginalized. Just because the TIF system is broken doesn't mean that we should just criticize every use of TIF funds. This is exactly the sort of allocation that we should encourage from the TIF system.

    It is one thing to be frustrated with the leadership of our Alderwoman, but maybe if we can acknowledge the productive we can actually exert some influence. I did notice at last night's meeting that there was very distinct political camps that had formed. Now I'm fairly new to Uptown, but blanket dismissal of the "other side" is not good politics. This us versus them mentality is a huge problem in this community. The young black woman who finally addressed the 800 pound gorilla of race was spot on. Being diverse doesn't mean anything if it just results in lots of little separated communities that don't know how to talk to each other. Maybe a new parking structure at Truman would have kept the young man who was killed back in April safe. Yes we should be frustrated that it takes a back door negotiation to actually get money to the city colleges. Yes we should demand more transparency and accountability with TIF fund allocation. But when TIF funds go to support more accessible education instead of ending up in the pockets of developers we should be sort of happy, no?

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  6. Cesar, your points in general are good. However, the TIF was initiated to address a number of specific problems in the area. The TIF consultants identified them and then everything has been promptly forgotten so that a number of pet projects could be pursued. The underlying issues will remain and it is unclear how or when they will ever be addressed. The issue has a long history and is complex so I really can't rehash it here but look at UNC, the reader's TIF series and some of the past topics here to get a picture as to why people are upset.

    For me anyway, I attended the meetings and it is not knee-jerk. I think that a new student center is needed and that Truman should have one. I only disagree that local TIF money should pay for it. It should come from the City College budget or from a state allocation.

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  7. There is more to the Truman Garage than meets the immediate "eye".

    "Da Mare" wants the Uptown Theater up and running. That means parking in a reasonable distance needs to be built. Git it?

    This is more than just about the needs of Truman students or the CTA.

    The city has also been trying to get a developer to build parking on Lawrence just east of the theater.

    Building parking at Truman which can also serve the Uptown Theater makes sense if you look at it from that point of view.

    As for Shiller I'd guess she would prefer to use the money to build some more subsidized housing, but she only has an influence on how the TIF money is spent. Ultimately "da mare" decides.

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  8. Saskia,

    I'm well aware of the long and sordid history of TIFs. They are by their statutory definition intended to address certain issues of blight. There are certain findings that must be presented in order to establish a TIF and they mostly deal with urban infrastructure and building issues. Every TIF in Chicago has been established under those pretenses (and no Chicago TIF has every been dismantled...Chicago Loop TIF, wtf?). When I say that the TIF system is broke this is what I mean. There is no transparency and the process of establishing TIFs is absolutely political. The consulting reports are a complete joke and they mostly read like a check list of "blighted" findings. I've spent time in the city of Chicago planning department offices looking at all of the Chicago TIF files and I can assure you that the mismatch between findings and funding allocation is not at all specific to the Wilson Yard TIF. The consultants recommendations by law need to indicate certain issues in order to establish the TIF, no more no less.

    So TIFs are clearly a problem. They divert money from public schools, from city budgets, and all of the other ridiculous number of legal jurisdictions that suck off of the tax teats. That's why Stroger has raised taxes in Chicago. All of the "gains" in property value have been locked up in TIFs and have been unavailable for capital budgeting, etc. Well, there are probably a few other reasons why there supposedly isn't enough money to go around, but TIFs are clearly a big problem.

    My point is that when TIF money actually goes to something productive for the community (improving an important city college) we should recognize that it might be the best outcome in a bad situation. Clearly the state is not going to be able pump more money into the city college system. It's doubtful that the city has the funds either. Were TIFs not in place perhaps it would be easer to make either of these budget decisions happen, but we've got them and we sort of have to live with them for now.

    BTW, if property values in Uptown crumble because everyone moves away, guess what, the TIF money dries up as well so it is a bit of a specious argument to suggest that Shiller wants to initiate a new wave of white flight as the title of this thread implies. Maybe her clearly twisted and mean spirited staff feels differently, but the corrupt black box of the TIF system works best when "blighted" neighborhoods go on a nice speculative, gentrification driven development and real estate binge and jack up property value.

    TIF reform is a very good idea and perhaps our two interested state senators could get involved in this much needed project. As much as placing the blame on city officials is tempting, this is a state legislative issue and thus caught up in a whole other world of corruption and incompetence.

    -Sasha

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  9. IP,

    That does make sense that there would be a scheme to use funding for Truman to provide parking for the Uptown Theater development. But good grief, that seems really sensible to me. Of course it would be a lot more sensible if Jam Productions ponied up a chunk of the money, but lord knows we don't need more single purpose parking in the town. Doubling up on parking structure uses is really sensible land use planning. The financial aspects are sketchy and perhaps it makes sense to push back in this area.

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  10. "My point is that when TIF money actually goes to something productive for the community (improving an important city college) we should recognize that it might be the best outcome in a bad situation."

    Cesar: Why are you trying to fill one hole with dirt from a new one you'd have to dig?

    Your point is a terrible one. It fails to address the underlying issues. If there is a lack of funds for the county because the mayor has sucked up his own personal portion of those funds, the solution isn't to craft your own tax increase and continue to endorse the capital grab of the mayor's office.

    Your point encourages this behavior. It encourages TIF misappropriation. It encourages the process to deny funding for higher education so they too have to play ball with the mayor to access the TIF fund for improvements.

    If you want a system that works you don't shake hands with it with your right hand and take their funds in your left hand.

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  11. Just got back from my annual Chicago visit. A buddy and I drove down Leland thru to Sheridan from Clark. Also drove from Lawrence and Ashland down to LSD. The restoration of some of the buildings impressed me as we drove. I told my wife that sooner or later the area will clean it's act up. I am glad the Uptown theatre is finally moving ahead. My friend is an architect and told me that building is in terrible shape. Tha balcony is literally falling down and is structurally unstable. I still consider Uptown my home, but I would never live in that area again. It is really a shame....

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  12. " ... isn't it a good thing when TIF money gets allocated specifically for local education programs."

    no

    all the money from all the TIFs ever used for primary, secondary, and higher education is a pittance compared to what they LOST to TIF, which difference was make up by increased levies on homeowners

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  13. To me, the whole point of the post was that Shiller's goons will throw taxpayers out of her office with curses and literally tell them not to come back, but need the money of those citizens to build Shiller's pet projects.

    Reminds me of a real book about raising a bratty teenager: "Get Out of My Life, but First Could You Drive Me & Cheryl to the Mall?"

    Shiller's staff is showing that much logic. "Get Out of My Ward, but First Could You Pay for Low-Income Towers and Parking for Truman Students?"

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  14. "This is exactly the sort of allocation that we should encourage from the TIF system."

    no

    TIF is supposed to use a small amount of the public property taxes of the future to incentivize PRIVATE TAXABLE development such that that development will contribute to future property tax revenue

    any use of TIF for development on tax-exempt property is less than best

    the garage a Truman has no chance of contributing to our tax base

    TIF is abused when it is used as a generic capital improvement fund for public works

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  15. I have to respectfully disagree. TIF districts are a long way from disappearing. They are state law and the very way in which they have been implemented makes them very entrenched. My point was that TIF money is locked up within the TIF system. If it it is spent on something the we might consider a public good we should recognize that it is the best outcome in a bad situation. If IrishPirate is right that part of the rational behind the garage it the renovation of the Uptown Theatre, well right their you have your incentivizing private development benefit.

    TIFs aren't in themselves tax increases. They reserve new revenue raised from taxes due to property value increases for spending within a specific geographic area. They are a problem, because as Bradley pointed out they suck money out of education and capital budgeting, etc. So in the end their proliferation leads to a need to raise over all tax rates to make up for what is reserved for local areas.

    The main issue with TIFs as I see it is that once they are set up they NEVER go away. Or at least not in Chicago. No Chicago TIF has ever been canceled. Why not? Well obviously because they generate funds that are essentially tied to ward politics they create powerful bargaining chips that get used to dole out favors, etc. I'm not defending TIFs by any stretch. I think they are terrible public policy and I think they lead to corruption and decreased transparency. But I do think that finding a way to get city colleges money when every other part of the higher education system is breaking down is good. Is it making a deal with the devil? Maybe. Or maybe it is just pragmatic.

    As I mentioned I think we should certainly encourage our state senators to get involved in TIF reform. It is a state issue and not a city issue. But this isn't a situation where we can just click our heels and magically make everything we don't like go away. TIFs are broken, but given that reality we should do our best to encourage the best possible outcome from a broken system while at the same time working to reform it. These sorts of pragmatic politics happen all the time. Does it make it ideal? Nope, but it is pretty much the way reform happens in this country. Get while you can while you work to change what you don't like.

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  16. By the way, I'm the boyfriend of the woman who was cursed out of Shiller's office the other day so I'm not particularly fond of that woman or her staff. But I also don't think that we should damn everything that happens in this ward just because she's the alderwoman. I agree that the TIFs have sucked the money out of the education system and that this doesn't come anywhere close to making up that deficit, but we can't undo the past. We can be angry and frustrated but we should also be positive and hopeful.

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  17. I will save my positivity (a favorite word of Marc Kaplan's) and hope in February 2011 when there is an election to dump Helen.

    Using TIF money for something that didn't surface as a need for the TIF while still ignoring the real problems that qualified Uptown for the TIF seems a little strange to me. But I guess I always leaned in favor of a little common sense.

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  18. I, personally, don't think Uptown needs ANY TIF money. We are right along the lake with LSD running through and plenty of exits into our neighborhood. We have a wonderful mix of architecture, income, and sanity to consider the area charming and quirky. We also have an abundance of empty storefronts that could stand to be rented (increasing tax revenue) to either chain stores or independant store owners. The benefits of opening a store in Uptown are enormous. Why can't we work with the Uptown Chamber of Commerce to sell the beauty of our neihborhood and revitalize in this manner? There are a lot of really creative and smart people in this neihborhood with resources or connections that could really make a difference.

    Just a thought.

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  19. I don't think I know how to spell "neighborhood" correctly. Please pardon the error.

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