Thursday, November 20, 2008

Land Records... Hmmm....

EveryBlock recently noted some "interesting" property transfers on the west side of Broadway between Montrose and Sunnyside (Wilson Yard):
Can anyone make heads or tails of why property is just now being transferred? And in excess of $7,500,000?


  1. I am sure you could call the local City rep at the 46th ward office and someone would be happy to look into it and get back to you.

  2. OK, just because I am bored I will look into this.

  3. Could this be the "Target" deal that was announced recently?

  4. This is all wilson yards maneuvering.

    the county assessor shows that whole side of the block is divided into various "tax parcels."

    Wilson Yards Development I, LLC transferred title to Wilson Yards Partners LP.

    Wilson Yards Development I, LLC transferred title to Aldi, Inc

    Wilson Yards Development I, LLC transferred title to Wilson Yard Retail I, LLC

    Wilson Yards Development I, LLC transferred title to Wilson Yard Senior Housing, LP

    Wilson Yards Development I, LLC transferred title to Target Wilson Yard QALICB, LLC

    its not all that unusual to see a developer carve up the property in this manner. partly for purposes of financing, partly for manage risks/liability by compartmentalizing different aspects of the project. probably to raise a little cash as well.

  5. Early 1990's: Dayton-Hudson (now Target) seed funds Minneapolis non-profit Community Reinvestment Fund, USA to seek federal dough

    2000: CRF begins lobbying the federal government to create the New Markets Tax Credit program

    2003: CRF begins cashing in

    2008: Chicago subsidiary Community Reinvestment Fund New Markets I, LP gets $6,250,000

  6. by the way, the City counts these federal dollars as part of the "private" (which to the City means "not TIF") portion of the financing

  7. someone else will have to explain how Target qualifies for this federal help

  8. Ummmmm....cuz they can use their brand to look like the salvation of urban renewal projects??? The subsidies are compensation for bastardizing their brand???

  9. Target or any large corporation will qualify for Federal tax credits because by law the places they bank with are required to make loans to areas labeled for "economic development" via the Community Reinvestment Act of 1979 and it's subsequent amendment in 1995. As the banks are required to issue loans they have to have borrowers to take the loans. Enter Target. Enter Aldi.

    If it all fails, the tax payers step in an assume the deeds and the debt. If the local tax payers can pick up the tab they do so. Right now, the only people picking up these tabs are the Feds.

  10. Target Corp. (TGT)

    All numbers in thousands

    PERIOD ENDING 2-Feb-08 3-Feb-07 28-Jan-06

    Gross Profit 21,472,000 20,091,000 17,693,000

    Net Income 2,849,000 2,787,000 2,408,000

  11. why is our govt giving $6M to a stockholder-owned corporation that last qtr reported $45B in assets ($1.5B cash), and $5.4B in gross profit and $645M in net income?

  12. "why is our govt giving $6M to a stockholder-owned corporation that last qtr reported $45B in assets ($1.5B cash), and $5.4B in gross profit and $645M in net income?"

    Hugh: The banks have to lend this money. If they do not lend this money people in the "under served" community can sue them. This is precisely what ACORN has done throughout the United States.
    Natioanl Review Story trying to tie Obama to these activies

    Federal Reserve System explains the Community Reinvestment Act

    The reason why tax payers are footing the bill for Target is because if they build they might not make any profit at all. It's likely they could lose money. Considering the current plan for Wilson yard and the downturn in the economy, they could lose a whole heck of a lot of money.

  13. I know it is trendy to blame the CRA for the world's problems these days, but the NMTC is not he CRA.

    Apparently our federal govt is extending a multi-million dollar tax credit to a $45B stockholder-held for-profit company.

    No prob, we're rolling in it.

    This is them that gots getting more, a transfer of wealth upwards.

    We think of corporate welfare as something that happens on Wall St, well, it's alive & well in our backyard.

  14. The Audacity of Avarice

    wow, after all these years WY continues to amaze me

    Just when you think WY is the most blatant cash-grab ever, a crass rip-off of cash-strapped Cook County taxpayers and CTA riders, a new layer of greed is revealed:

    An American corporation so awash in cash that they determine the best investment of their profits is to form a NFP to lobby Congress to line up tax credits in support of their corporate strategy.

    Reading the papers these days it's almost hard to recall the context of a few years ago, which included Chicago's Wal-Mart debacle: America's big box retailers had passed our manufacturers as our most lucrative businesses. Big box retailers had so saturated our landscape, decimating small-town downtowns in their wake, that their Final Frontier was urban inner cities.

    Of course the spin is that the tax credits are an incentive, but if you understand the chicken-egg time line, Dayton-Hudson-Target's role in creating the incentive, you see they are getting tax credits to do what they were planning to do anyway, and this is Yet Another Example of our Government For Sale to the highest corporate bidders.

    What a country!

  15. pardon me while I vent

    The Untold Story of Wilson Yard

    hey guys, ya remember that expo in Las Vegas the shopping-mall developers & big box retailers throw to invite municipal officers to come and pitch their packages of tax incentives at each other, the one that Shiller goes to every year?

    I'm gonna make a WAG here:

    CRF gave a keynote, Shiller hit her pipe in her room & went

    CRF had a fancy booth on the show floor and Shiller wandered in and got invited to the lavish Dayton-Hudson-Target hospitality suite, Shiller went (stopping by her room 1st), and she downed a few too many white wines and this whole thing came to her in a vision

    Shiller's LV junket was a vision quest a la Tony Soprano's in the cliff-hanger of the penultimate season.

  16. ok, follow me here, it might help to get out a piece of graph paper

    Target funds a NFP to lobby Congress for tax credits for building stores in cities

    Lobbying effort succeeds, NMTC is passed and Target/NFP starts cashing in

    Now the program has all sorts of qualification requirements, so Target's NFP forms a limited partnership for the sole purpose of applying for a tax credit for WY

    The app is approved to the tune of a $6.25M tax credit (this was the big hold-up, this is the event that precipitated all the 10/08 activity)

    Target purchases property in WY from Holsten for $6.675M

    Target gets new store for $450K!!!!!

    follow the money

    US Treasury Dept. -> NFP -> LP -> Target -> Holsten

  17. For years, ever since I first plowed thru the original WY redevelopment agreement, I've been explaining to my neighbors that the Target store is Phase 1, and the the proceeds of the sale of the big box store to Target was designed to help finance the senior and low-income housing in Phases II and III.

    With these latest recordings, I've come to understand that that is only half true - it's not so much one of our most profitable corporations that's pitching in, it's taxpayers, once again.

    Holsten glommed unto all the low income housing tax credits he could, but they didn't stop there.

    In effect, the Target store is being used to launder a tax credit nominally design to foster urban commercial development into further subsidizing already heavily subsidized housing.