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City of Chicago
Quick Hit
by Adam Doster
1:53pm
Fri Jul 16, 2010

Fed Up With TIFs ... Statewide

Tax increment financing (TIF) geeks across the city read with interest the Chicago Inspector General's recent audit of the Central West TIF district. The watchdog was able to find noticeable waste by focusing on one tiny sliver of one district, a fact that led the Reader's Ben Joravksy to wonder just how much taxpayer money has been misused at the expense of the Daley administration's vast TIF empire. The Chicago Journal's editorial board, meanwhile, expressed frustration over the opaque manner in which the IG says the city "ports" TIF revenue from one district to another.

Chicagoans aren't the only Illinois residents fed up with the way municipal officials have exploited the development tool. In suburban Bartlett, city council members -- including the Village President -- are questioning the success of their TIF system. And the Belleville News-Democrat penned an incensed editorial Thursday correcting elected officials who continue to insist that tax increment financing is not a hidden property tax. These pieces should serve as a valuable reminder to TIF reformers in the Windy City: If some Democrats could be pushed to buck the mayor, the General Assembly could reform the state's TIF statutes, and thereby protect taxing bodies in neighborhoods statewide.

PI Original
by Adam Doster
3:32pm
Thu Jul 15, 2010
3 comments

National Groups Rally Behind Chicago Coal Ordinance

Energy

Tired of waiting around while Congress dithers and the earth warms, progressive members of the Chicago City Council, regulators in the Obama administration, and environmental advocates are taking their own steps to clamp down on dirty coal plants.

Quick Hit
by Aricka Flowers
1:17pm
Tue Jul 13, 2010

Chicago's Lost Parking Meter "Dough"

If you swung by Chicago's Daley Center this morning, you might have seen Illinois PIRG holding a bake sale. The cause? To raise awareness about the large amount of "dough" the city is losing as a result of its parking privatization deal.

It is estimated that Chicago will lose close to $1 billion in future revenue as a result of the decision in late 2008 to lease our 36,000 parking meters for 75 years. Illinois PIRG campaign coordinator Tim Robinson says that lawmakers should no longer turn to short-term budget fixes -- such as proposals to privatize Midway Airport or Chicago's water system -- without considering the long-term effect on taxpayers. "This is urgent and we are making sure there is an appropriate amount of public input," he told us. "There should be something in place to let the public have input and have a third-party organization analyze these deals."  Several aldermen proposed an ordinance to that effect last year, but it's yet to advance.

Quick Hit
by Adam Doster
9:05am
Mon Jul 12, 2010
1 comment

The First Step Towards Rapid Bus Transit

While Chicago failed to acquire $153 million in federal funds to build a small network of dedicated rapid bus lanes, the city fared a little better this year.  Specifically, the city netted $35 million in competitive grants last week to establish quicker service in two corridors: a "circulator project" that will connect Union Station and Navy Pier (and eventually other downtown locales) and a South Side line along Jeffery Boulevard from 103rd Street to the Loop.

The latter project is the first of four bus rapid transit routes the Chicago Transit Authority is hoping to build. As those projects advance, transit officials should pay close attention to similar efforts in New York City, which is now working to "revolutionize the bus." Robert Sullivan's New York magazine piece on those plans is well worth a read, particularly his description of the features cities abroad have used to improve their bus systems.

Quick Hit
by Adam Doster
10:05am
Fri Jul 9, 2010

Daley's TIF Dodge

Facing increasing scrutiny from affordable housing advocates and parents, Mayor Daley is getting defensive about Chicago's tax increment financing (TIF) network. Earlier this week, an administration official incorrectly stated that the city spends "a good amount of TIF for affordable housing." And in a new WBEZ report, the mayor responded this way: "Most of our schools are built with money from the TIF districts."

It's true that a substantial TIF dollars go towards school construction.  But as the Reader's Ben Joravsky recently noted: "TIF isn't really intended to pay for projects like schools. In fact, while legal, using TIF to build schools is antithetical to the program."  At the same time, Daley's TIF network has historically absorbed $250-$300 million in annual property tax revenue that would otherwise flow to the Chicago Board of Education's beleaguered budget.

The Raise Your Hand coalition is scheduled to meet with CPS chief Ron Huberman next week to discuss their reform ideas, including a proposal to exempt the Board of Education's tax dollars from the TIF system.  Stay tuned ...

Quick Hit
by Adam Doster
10:14am
Thu Jul 8, 2010

Reining In Daley's TIF Piggy Bank

The Sun-Times' Fran Spielman makes a solid point about the Sweet Home Chicago ordinance this morning that we didn't emphasize in our post yesterday on the issue: By mandating that 20 percent of the revenue Chicago generates in a given year from the tax increment financing (TIF) network be spent on affordable housing projects, the measure would partially "rein in Mayor Daley’s unbridled control over the TIF piggy bank." This is significant considering that a lack of transparency and oversight has turned what should be a useful development tool into a $500 million annual slush fund for the Daley administration.

Expect the mayor to put up a fight. In an interview with Chicago Public Radio's Chip Mitchell yesterday, spokesperson Molly Sullivan said the city already spends "a good amount of TIF for affordable housing." In fact, between 1995 and 2007, the city spent just four percent of TIF funds on affordable housing developments. That doesn't seem like "a good amount" to us.