CITY OF CHICAGO
May 1,2015
Ms. Susana A. Mendoza City Clerk
121 North LaSalle Street Chicago, Illinois 60602
Re: Amendment Number 2 to the Redevelopment Plan and Project for the Sanitary Drainage and Ship Canal Tax Increment Financing Redevelopment Project Area
Dear Ms. Mendoza:
I enclose a proposed Amendment Number 2 to the Sanitary Drainage and Ship Canal Tax Increment Financing Redevelopment Project Area Redevelopment Plan and Project (the "Amendment to the Plan") for the Sanitary Drainage and Ship Canal Tax Increment Financing Redevelopment Project Area.
Please make the Amendment to the Plan available in your office as of this date for public inspection in accordance with the requirements of Section 5/11-74.5-5(a) of the Illinois Tax Increment Allocation Redevelopment Act. 65 ILCS 5/11-74-4-1 et seq., as amended. If you have any questions with respect to this matter, please call me at 744-8973.
Sincerely,
Senior Counsel
Enclosure
cc: Tricia Ruffolo
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City of Chicago
Sanitary Drainage and Ship Canal Tax Increment Redevelopment Area Redevelopment Plan and Project
Plan Adopted: July 24,1991 Amendment No. 1: November 12, 2012
Amendment No. 2 April 30, 2015
City of Chicago Rahm Emanuel Mayor
H| SB Friedman
fjmm Development Advisors
Sanitary Drainage and Ship Canal
Tax Increment Redevelopment Area Redevelopment Plan and Project Amendment No. 2
TABLE OF CONTENTS
Executive Summary 1
Modifications to the Original Plan 2
Section I: Introduction 2
Section II: Redevelopment Project Area Legal Description 2
Section III: Redevelopment Project Area Goals and Objectives 2
Section IV: Blighted Area Conditions Existing in the Redevelopment Project Area 2
Section V: Redevelopment Project 2
Section VI: Scheduling of the Redevelopment Project 10
Section VII: Provisions for Amending the Tax Increment Redevelopment Plan and Project 11
Exhibits 12
Exhibit 1: Legal Description
Exhibit 2: RPA Context Map
Exhibit 3: RPA Boundary Map
Exhibit 4: Existing Land Use Map
Exhibit 5: Proposed Future Land Use Map
Exhibit 6: Certificate of Initial Equalized Assessed Valuation
Exhibit 7: Original Plan, including Amendment No. 1
i
SB FRIEDMAN | DEVELOPMENT ADVISORS
Sanitary Drainage and Ship Canal Tax Increment Financing Redevelopment Plan and Project
Amendment No. 2
Executive Summary
To induce redevelopment, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 etseq., as amended from time to time (the "Act"), the City Council ofthe City of Chicago adopted three ordinances on July 24, 1991, approving the Sanitary Drainage and Ship Canal Tax Increment Redevelopment Area Redevelopment Plan and Project (the "Original Plan"), designating the Sanitary Drainage and Ship Canal Redevelopment Project Area (the "Project Area" or "RPA") as a redevelopment project area under the Act, and adopting tax increment allocation financing for the Project Area. The Original Plan was amended pursuant to an ordinance adopted by the City Council on November 12, 2012, to reflect minor changes to the Original Plan's text ("Amendment No. 1"). The Original Plan with Amendment No. 1 is attached as Exhibit 7.
The Original Plan is being amended again through this document ("Amendment No. 2") to extend the estimated date of completion ofthe Redevelopment Project, pursuant to authorization ofthe extension in the Act; update the Proposed Future Land Use Map to allow mixed industrial, commercial and institutional uses in selected additional locations within the Project Area; accommodate minor language changes reflecting updates to the TIF Act since the date of Amendment No. 1; and update the RPA boundary legal description to correct a Scrivener's error in original legal description. In addition, the Vicinity Map, Boundary Map, and Existing Land Use Map are being replaced in Amendment No. 2 to increase the clarity of the original maps, though there are no material changes to those maps. The modifications included in Amendment No. 2 are outlined below and follow the format of the Original Plan. Throughout this document, the Original Plan with Amendment No. 1 and Amendment No. 2 will be referred to collectively as the "Plan."
Amendment No. 2 summarizes the analyses and findings of the consultant's work, which, unless otherwise noted, is the responsibility ofthe consultant, SB Friedman Development Advisors. The City of Chicago (the "City") is entitled to rely on the findings and conclusions of Amendment No. 2 in amending the Original Plan and Amendment No. 1 under the Act. The consultant has prepared Amendment No. 2 with the understanding that the City would rely: 1) on the previous eligibility findings and conclusions of the Original Plan and Amendment No. 1; and 2) on the fact that the Original Plan and Amendment No. 1 contain the necessary information to be compliant with the Act.
The Sanitary Drainage and Ship Canal RPA is generally bounded by W. 31st Street to the north, S. Campbell Avenue to the east, W. 35th Street to the south, and S. Central Park Avenue to the west. The RPA contains a total of 86 parcels and approximately 251.2 acres of land.
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
Modifications to the Original Plan Section I: Introduction
No changes.
Section II: Redevelopment Project Area Legal Description
No changes.
Section III: Redevelopment Project Area Goals and Objectives
No changes.
Section IV: Blighted Area Conditions Existing in the Redevelopment Project Area
No changes.
Section V: Redevelopment Project
Under Section V. B. "Redevelopment Activities," replace the first paragraph under the subheading "Acquisition and Clearance" with the following text:
To meet the goals and objectives of this Plan, the City may acquire and assemble property throughout the Project Area. Land assemblage by the City may be by purchase, exchange, donation, lease, eminent domain or through the Tax Reactivation Program and may be for the purpose of (a) sale, lease or conveyance to private developers, or (b) sale, lease, conveyance or dedication for the construction of public improvements or facilities. Furthermore, the City may require written redevelopment agreements with developers before acquiring any properties. As appropriate, the City may devote acquired property to temporary uses until such property is scheduled for disposition and development.
In connection with the City exercising its power to acquire real property, including the exercise of the power of eminent domain, under the Act in implementing the Plan, the City will follow its customary procedures of having each such acquisition recommended by the Community Development Commission (or any successor commission) and authorized by the City Council of the City. Acquisition of such real property as may be authorized by the City Council does not constitute a change in the nature of this Plan.
Under Section V. B. "Redevelopment Activities," replace the paragraph under the subheading "Relocation" with the following text:
Relocation assistance may be provided in order to facilitate redevelopment of portions of the Project Area, and to meet the other City objectives. Businesses or households legally occupying properties to be acquired by the City may be provided with relocation advisory and financial assistance as determined by the City.
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
Under Section V. B. "Redevelopment Activities," replace the subheading "Interest Cost Write-Down" with the following text:
Interest Costs
Under Section V. B. "Redevelopment Activities," in between the subsections "Job Training" and "Redevelopment Agreements," insert the following paragraph under a new subheading:
Affordable Housing
The City requires that developers who receive TIF assistance for market-rate housing set aside 20% of the units to meet affordability criteria established by the City's Department of Planning and Development or any successor agency. Generally, this means the affordable for-sale units should be priced at a level that is affordable to persons earning no more than 100% ofthe area median income, and affordable rental units should be affordable to persons earning no more than 60% ofthe area median income.
Under Section V. B. "Redevelopment Activities," insert the following text at the end of the section under a new heading:
Intergovernmental Agreements
The City may enter into redevelopment agreements or intergovernmental agreements with private entities or public entities to construct, rehabilitate, renovate or restore private or public improvements on one or several parcels (collectively referred to as "Redevelopment Projects").
Under Section V. C. "General Land Use Plan," replace the first paragraph with the following text:
Existing land uses in the RPA are primarily industrial, material/storage yards, vacant property, and railroad right-of-way, as shown in Exhibit 4. Some City (institutional) uses that are predominantly industrial in character are also present in the RPA.
Under Section V. C. "General Land Use Plan," after the first paragraph, add the following text in a new paragraph:
The future land use of the RPA reflects the objectives of Redevelopment Project, which are to promote economic development within the RPA to create an active industrial district and to support other improvements that serve the redevelopment and economic development interests of the local area, business owners, and the City. The proposed objectives are compatible with historic land use patterns and support current development trends in the area. The proposed industrial and mixed-use designation is shown in Exhibit 5. The future land use designation allows for the following uses:
- Industrial
- Mixed-Use: Industrial, Commercial, Institutional
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
Under Section V. D. "Estimated Redevelopment Project Costs," delete and replace the entire Section V. D., including Table 1, with the following text:
The various redevelopment expenditures that are eligible for payment or reimbursement under the Act are reviewed below. Following this review is a list of estimated redevelopment project costs (the "Redevelopment Project Costs") that are deemed to be necessary to implement the Plan.
In the event the Act is amended after the date of the approval of Amendment No. 2 by the City Council of Chicago to (a) include new eligible redevelopment project costs, or (b) expand the scope or increase the amount of existing eligible redevelopment project costs (such as, for example, by increasing the amount of incurred interest costs that may be paid under 65 ILCS 5/ll-74.4-3(q)(ll)), the Plan shall be deemed to incorporate such additional, expanded or increased eligible costs as Redevelopment Project Costs under the Plan, to the extent permitted by the Act. In the event of such amendment(s) to the Act, the City may add any new eligible redevelopment project costs as a line item in Table 1 or otherwise adjust the line items in Table 1 without amendment to the Plan, to the extent permitted by the Act. In no instance, however, shall such additions or adjustments result in any increase in the total Redevelopment Project Costs without a further amendment to Plan.
1. Eligible Redevelopment Costs
Redevelopment project costs include the sum total of all reasonable or necessary costs incurred, estimated to be incurred, or incidental to the Plan pursuant to the Act. Such costs may include, without limitation, the following:
- Costs of studies, surveys, development of plans and specifications, implementation and administration of the Plan including but not limited to, staff and professional service costs for architectural, engineering, legal, financial, planning or other services (excluding lobbying expenses), provided that no charges for professional services are based on a percentage of the tax increment collected;
- The costs of marketing sites within the RPA to prospective businesses, developers and investors;
- Property assembly costs, including but not limited to, acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, site preparation, site improvements that serve as an engineered barrier addressing ground level or below ground environmental contamination, including, but not limited to parking lots and other concrete or asphalt barriers, and the clearing and grading of land;
- Costs of rehabilitation, reconstruction or repair or remodeling of existing public or private buildings, fixtures, and leasehold improvements; and the costs of replacing an existing public building if pursuant to the implementation of a redevelopment project the existing public building is to be demolished to use the site for private investment or devoted to a different use requiring private investment; including any direct or indirect costs relating to Green Globes or LEED certified construction elements or construction elements with an equivalent certification;
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
- Costs of the construction of public works or improvements, including any direct or indirect costs relating to Green Globes or LEED certified construction elements or construction elements with an equivalent certification subject to the limitations in Section ll-74.4-3(q)(4) ofthe Act;
- Costs of job training and retraining projects including the cost of "welfare to work" programs implemented by businesses located within the Project Area;
- Financing costs including, but not limited to, all necessary and incidental expenses related to the issuance of obligations and which may include payment of interest on any obligations issued thereunder including interest accruing during the estimated period of construction of any redevelopment project for which such obligations are issued and for a period not exceeding 36 months following completion and including reasonable reserves related thereto;
h) To the extent the City by written agreement accepts and approves the same, all or a portion of a taxing district's capital costs resulting from the redevelopment project necessarily incurred or to be incurred within a taxing district in furtherance of the objectives of the Plan;
i) An elementary, secondary, or unit school district's increased costs attributable to assisted
housing units will be reimbursed as provided in the Act;
j) Relocation costs to the extent that the City determines that relocation costs shall be paid or is required to make payment of relocation costs by federal or state law or by Section 74.4-3(n)(7) ofthe Act (see "Relocation" section);
k) Payment in lieu of taxes, as defined in the Act;
I) Costs of job training, retraining, advanced vocational education or career education, including but not limited to, courses in occupational, semi-technical or technical fields leading directly to employment, incurred by one or more taxing districts, provided that such costs; (i) are related to the establishment and maintenance of additional job training, advanced vocational education or career education programs for persons employed or to be employed by employers located in the Project Area; and (ii) when incurred by a taxing district or taxing districts other than the City, are set forth in a written agreement by or among the City and the taxing district or taxing districts, which agreement describes the program to be undertaken including but not limited to, the number of employees to be trained, a description of the training and services to be provided, the number and type of positions available or to be available, itemized costs of the program and sources of funds to pay for the same, and the term of the agreement. Such costs include, specifically, the payment by community college districts of costs pursuant to Sections 3-37, 3-38, 3-40, and 3-40.1 of the Public Community College Act, 110 ILCS 805/3-37, 805/3-38, 805/3-40 and 805/3-40.1, and by school districts of costs pursuant to Sections 10-22.20a and 10-23.3a of the School Code, 105 ILCS 5/10-22.20a and 5/10-23.3a;
m) Interest costs incurred by a redeveloper related to the construction, renovation or rehabilitation of a redevelopment project provided that:
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
- such costs are to be paid directly from the special tax allocation fund established pursuant to the Act;
- such payments in any one year may not exceed 30 percent of the annual interest costs incurred by the redeveloper with regard to the redevelopment project during that year;
- if there are not sufficient funds available in the special tax allocation fund to make the payment pursuant to this provision, then the amounts so due shall accrue and be payable when sufficient funds are available in the special tax allocation fund;
- the total of such interest payments paid pursuant to the Act may not exceed 30 percent of the total: (i) cost paid or incurred by the redeveloper for such redevelopment project; (ii) redevelopment project costs excluding any property assembly costs and any relocation costs incurred by the City pursuant to the Act; and
5. up to 75 percent of the interest cost incurred by a redeveloper for the financing of rehabilitated or new housing for low-income households and very low-income households, as defined in Section 3 of the Illinois Affordable Housing Act.
n) Instead ofthe eligible costs provided for in (m) 2, 4 and 5 above, the City may pay up to 50 percent of the cost of construction, renovation and/or rehabilitation of all low- and very low-income housing units (for ownership or rental) as defined in Section 3 of the Illinois Affordable Housing Act. If the units are part of a residential redevelopment project that includes units not affordable to low- and very low-income households, only the low- and very low-income units shall be eligible for benefits under the Act;
o) The costs of daycare services for children of employees from low-income families working for businesses located within the Project Area and all or a portion ofthe cost of operation of day care centers established by Project Area businesses to serve employees from low-income families working in businesses located in the Project Area. For the purposes of this paragraph, "low-income families" means families whose annual income does not exceed 80 percent ofthe City, county or regional median income as determined from time to time by the United States Department of Housing and Urban Development;
p) Unless explicitly provided in the Act, the cost of construction of new privately-owned buildings shall not be an eligible redevelopment project cost; and
q) If a special service area has been established pursuant to the Special Service Area Tax Act, 35 ILCS 235/0.01 et seq., then any tax increment revenues derived from the tax imposed pursuant to the Special Service Area Tax Act may be used within the Project Area for the purposes permitted by the Special Service Area Tax Act as well as the purposes permitted by the Act.
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago Sanitary Drainage and Ship Canal RPA Amendment No. 2
2. Estimated Redevelopment Project Costs The estimated eligible costs of the RPA are shown in Table 1 below. TABLE 1: ESTIMATED REDEVELOPMENT PROJECT COSTS
Eligible Expense Estimated Cost
Professional and Administrative $ 1,000,000
Marketing 500,000
Property Assembly and Site Preparation 5,500,000
Rehabilitation of Existing Buildings 2,500,000
Construction of Public Facilities and Improvements'11 10,500,000
Job Training 500,000
Financing Costs 1,000,000
Relocation Costs 500,000
Interest Costs 2,000,000
Affordable Housing Construction 500,000
Day Care Services 500,000
TOTAL REDEVELOPMENT COSTS121131 $ 25,000,000[4]
'This category may also include paying for or reimbursing (i) an elementary, secondary or unit school district's increased costs attributed to assisted housing units, and (ii) capital costs of taxing districts impacted by the redevelopment of the Project Area. As permitted by the Act, to the extent the City by written agreement accepts and approves the same, the City may pay, or reimburse all, or a portion of a taxing district's capital costs resulting from a redevelopment project necessarily incurred or to be incurred within a taxing district in furtherance of the objectives of the Plan.
2Total Redevelopment Project Costs represent an upper limit on expenditures that are to be funded using tax increment revenues and exclude any additional financing costs, including any interest expense, capitalized interest and costs associated with optional redemptions These costs are subject to prevailing market conditions and are in addition to Total Redevelopment Project Costs. Within this limit, adjustments may be made in line items without amendment to this Plan, to the extent permitted by the Act.
3The amount of the Total Redevelopment Project Costs that can be incurred in the Project Area will be reduced by the amount of redevelopment project costs incurred in contiguous redevelopment project areas, or those separated from the Project Area only by a public nght-or-way, that are permitted under the Act to be paid, and are paid, from incremental property taxes generated in the Project Area, but will not be reduced by the amount of redevelopment project costs incurred in the Project Area which are paid from incremental property taxes generated in contiguous redevelopment project areas or those separated from the Project Area only by a public right-of-way.
4
All costs are in 2015 dollars and may be increased by five percent (5%) after adjusting for inflation reflected in the Consumer Price Index (CPI) for All Urban Consumers for All Items for the Chicago-Gary-Kenosha, IL-IN-WI CMSA, published by the U.S. Department of Labor. Additional funding from other sources such as federal, state, county, or local grant funds may be utilized to supplement the City's ability to finance Redevelopment Project Costs identified above
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
Under Section V. E. "Sources of Funds to Pay Redevelopment Project Costs Eligible Under Illinois TIF Statute," delete and replace entire section V. E. with the following text:
Funds necessary to pay for Redevelopment Project Costs and secure municipal obligations issued for such costs are to be derived primarily from Incremental Property Taxes. Other sources of funds which may be used to pay for Redevelopment Project Costs or secure municipal obligations are land disposition proceeds, state and federal grants, investment income, private financing and other legally permissible funds the City may deem appropriate. The City may incur redevelopment project costs which are paid for from funds of the City other than incremental taxes, and the City may then be reimbursed from such costs from incremental taxes. Also, the City may permit the utilization of guarantees, deposits and other forms of security made available by private sector developers. Additionally, the City may utilize revenues, other than State sales tax increment revenues, received under the Act from one redevelopment project area for eligible costs in another redevelopment project area that is either contiguous to, or is separated only by a public right-of-way from, the redevelopment project area from which the revenues are received.
The Project Area may be contiguous to or separated by only a public right-of-way from other redevelopment project areas created under the Act. The City may utilize net incremental property taxes received from the Project Area to pay eligible redevelopment project costs, or obligations issued to pay such costs, in other contiguous redevelopment project areas or project areas separated only by a public right-of-way, and vice versa. The amount of revenue from the Project Area, made available to support such contiguous redevelopment project areas, or those separated only by a public right-of-way, when added to all amounts used to pay eligible Redevelopment Project Costs within the Project Area, shall not at any time exceed the total Redevelopment Project Costs described in the Plan.
The Project Area may become contiguous to, or be separated only by a public right-of-way from, redevelopment project areas created under the Industrial Jobs Recovery Law (65 ILCS 5/11-74.6-1, et seq.). If the City finds that the goals, objectives and financial success of such contiguous redevelopment project areas or those separated only by a public right-of-way are interdependent with those of the Project Area, the City may determine that it is in the best interests ofthe City and the furtherance ofthe purposes ofthe Plan that net revenues from the Project Area be made available to support any such redevelopment project areas, and vice versa. The City therefore proposes to utilize net incremental revenues received from the Project Area to pay eligible redevelopment project costs (which are eligible under the Industrial Jobs Recovery Law referred to above) in any such areas and vice versa. Such revenues may be transferred or loaned between the Project Area and such areas. The amount of revenue from the Project Area so made available, when added to all amounts used to pay eligible Redevelopment Project Costs within the Project Area or other areas as described in the preceding paragraph, shall not at any time exceed the total Redevelopment Project Costs described in Table 1 of this Plan.
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
Under Section V. F. "Nature and Term of Obligations to be Issued," delete and replace entire section, including the section heading for V. F., with the following text:
Issuance of Obligations
The City may issue obligations secured by Incremental Property Taxes pursuant to Section 11-74.4-7 of the Act. To enhance the security of a municipal obligation, the City may pledge its full faith and credit through the issuance of general obligations bonds. Additionally, the City may provide other legally permissible credit enhancements to any obligations issued pursuant to the Act.
The redevelopment project shall be completed, and all obligations issued to finance redevelopment costs shall be retired, no later than December 31 of the year in which the payment to the City treasurer as provided in the Act is to be made with respect to ad valorem taxes levied in the thirty-fifth calendar year following the year in which the ordinance approving the Project Area is adopted.
Also, the final maturity date of any such obligations which are issued may not be later than 20 years from their respective dates of issue. One or more series of obligations may be sold at one or more times in order to implement this Plan. Obligations may be issued on a parity or subordinated basis.
In addition to paying Redevelopment Project Costs, Incremental Property Taxes may be used for the scheduled retirement of obligations, mandatory or optional redemptions, establishment of debt service reserves and bond sinking funds. To the extent that Incremental Property Taxes are not needed for these purposes, and are not otherwise required, pledged, earmarked or otherwise designated for the payment of Redevelopment Project Costs, any excess Incremental Property Taxes shall then become available for distribution annually to taxing districts having jurisdiction over the Project Area in the manner provided by the Act.
Under Section V. G. "Most Recent Equalized Assessed Valuation (EAV) of Properties in the Redevelopment Project Area," delete and replace entire section text with the following text:
The purpose of identifying the most recent equalized assessed valuation ("EAV") of the Project Area is to provide an estimate of the initial EAV which the Cook County Clerk will certify for the purpose of annually calculating the incremental EAV and incremental property taxes of the Project Area. The 1990 Certified Initial EAV of all taxable parcels in the Project Area is $10,722,329. This total EAV amount, by parcel index number ("PIN"), is summarized in Exhibit 6.
Under Section V. H. "Anticipated Equalized Assessed Valuation," delete and replace entire section text with the following text:
The 2027 EAV for the Sanitary Drainage and Ship Canal RPA is projected to be approximately $21,000,000. This estimate is based on several key assumptions, including an inflation factor of 2.0 percent per year on the EAV of all properties within the Sanitary Drainage and Ship Canal RPA, with its cumulative impact occurring in each triennial reassessment year, and an equalization factor of 2.6621 (2013). This estimate does not assume that any additional new development will occur within the RPA.
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
Section VI: Scheduling ofthe Redevelopment Project
In Section VI. A. "Redevelopment Project": No changes.
In Section VI. B. "Commitment to Fair Employment Practices and Affirmative Action," replace the entire section with the following text:
The City is committed to and will affirmatively implement the following principles with respect to the Plan:
- The assurance of equal opportunity in all personnel and employment actions, with respect to the Redevelopment Project, including, but not limited to hiring, training, transfer, promotion, discipline, fringe benefits, salary, employment working conditions, termination, etc., without regard to race, color, sex, age, religion, disability, national origin, ancestry, sexual orientation, marital status, parental status, military discharge status, source of income, or housing status.
- Redevelopers must meet the City's standards for participation of 24% Minority Business Enterprises and 4% Woman Business Enterprises and the City Resident Construction Worker Employment Requirement as required in redevelopment agreements.
- This commitment to affirmative action and nondiscrimination will ensure that all members of the protected groups are sought out to compete for all job openings and promotional opportunities.
- Redevelopers will meet City standards for any applicable prevailing wage rate as ascertained by the Illinois Department of Labor to all project employees.
The City shall have the right in its sole discretion to exempt certain small businesses, residential property owners and developers from the above.
In Section VI. C. "Completion of Redevelopment Project and Retirement of Obligations to Finance Redevelopment Costs," the entire section is replaced with the following text:
This Redevelopment Project will be completed, and all obligations issued to finance redevelopment costs shall be retired, no later than December 31st of the year in which the payment to the City Treasurer as provided in the Act is to be made with respect to ad valorem taxes levied in the thirty-fifth calendar year following the year in which the ordinance approving the Plan was adopted (i.e., by December 31, 2027). The private redevelopment investment and anticipated growth that will result from redevelopment and rehab activity in this Project Area is expected to increase the equalized assessed valuation by approximately $10,400,000 over the 35-year period in which the Plan is in place.
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
Section VII: Provisions for Amending the Tax Increment Redevelopment Plan and Project
No changes.
Following Section VII, insert new sections as follows:
Section VIII: Financial Impact on Taxing Districts
The Act requires an assessment of any financial impact ofthe Project Area on, or any increased demand for services from, any taxing district affected by the Plan and a description of any program to address such financial impacts or increased demand. The City intends to monitor development in the Project Area and with the cooperation of the other affected taxing districts will attempt to ensure that any increased needs are addressed in connection with any particular development.
The following taxing districts presently levy taxes on properties located within the Project Area:
- Metropolitan Water Reclamation District of Greater Chicago
- County of Cook
- Forest Preserve District of Cook County
- City of Chicago
- City of Chicago Library Fund
- City of Chicago School Building and Improvement Fund
- Chicago Community College District 508
- Board of Education
- Chicago Park District
- Chicago Park District Aquarium and Museum Bonds
- Metropolitan Water Reclamation District of Greater Chicago
Development of vacant sites with active and more intensive uses may result in additional moderate demands on services and facilities provided by the districts. At this time, no special programs are proposed for these taxing districts. Should demand increase, the City will work with the affected taxing districts to determine what, if any, program is necessary to provide adequate services.
This Plan and Project is expected to have short- and long-term financial impacts on the affected taxing districts. During the period when tax increment financing is utilized, real estate tax increment revenues from the increases in EAV over and above the Certified Initial EAV (established at the time of adoption of the Plan) may be used to pay eligible redevelopment project costs for the RPA. At the time when the RPA is no longer in place as a TIF district under the Act, the real estate tax revenues resulting from the redevelopment of the RPA will be distributed to all taxing districts levying taxes against property located in the RPA. These revenues will then be available for use by the affected taxing districts. Successful implementation ofthe Plan is expected to result in new development and private investment on a scale sufficient to overcome blighted and conservation area conditions and substantially improve the long-term economic value of the Project Area.
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SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
It is expected that the increases in demand for the services and programs of the aforementioned taxing districts associated with the Project Area can be adequately handled by the existing services and programs maintained by these taxing districts.
Section IX: Housing Impact Study
As set forth in the Act, if the redevelopment plan for a redevelopment project area would result in the displacement of residents from 10 or more inhabited residential units, or if the redevelopment project area contains 75 or more inhabited residential units and a municipality is unable to certify that no displacement will occur, the municipality must prepare a housing impact study and incorporate the study in the redevelopment project plan.
The Plan will not result in displacement of residents from inhabited residential units, and the City certifies that no such displacement of residents from the Project Area will occur as a result of the Plan. Therefore, a Housing Impact Study is not required under the Act.
Exhibits
Exhibit 1: Legal Description
Replace Exhibit 1 with the following text:
ALL THAT PART OF THE SOUTHWEST 1/4 OF SECTION 25; THE NORTHEAST 1/4, THE NORTHWEST 1/4 AND THE WEST 1/2 OF THE SOUTHEAST 1/4 OF SECTION 35; THE NORTH 1/2, THE EAST 1/2 OF THE SOUTHWEST 1/4 AND THE SOUTHEAST 1/4 OF SECTION 36 ALL IN TOWNSHIP 39 NORTH, RANGE 13 EAST OF THE THIRD PRINCIPAL MERIDIAN TOGETHER WITH CERTAIN LOTS AND BLOCKS IN MANCHESTER, BEING STEELE AND BUCHANAN'S SUBDIVISION OF THAT PART OF THE EAST 1/2 OF THE NORTHEAST 1/4 OF SAID SECTION 36, LYING NORTH OF THE ILLINOIS AND MICHIGAN CANAL ACCORDING TO THE PLAT THEREOF RECORDED JUL 31, 1857; S. J. WALKER'S SUBDIVISION OF THAT PART SOUTH OF THE CANAL OF THE NORTHWEST 1/4 OF SECTION 31, TOWNSHIP 39 NORTH, RANGE 14 EAST OF THE THIRD PRINCIPAL MERIDIAN, ALSO THAT PART SOUTH OF THE CANAL OF THE EAST 1/2 OF THE NORTHEAST 1/4 OF SAID SECTION 36, ACCORDING TO THE PLAT THEREOF RECORDED FEBRUARY 6, 1863; THE CAMPBELL SOUP COMPANY (CENTRAL DIVISION) SUBDIVISION OF PART OF THE NORTHEAST 1/4 OF SAID SECTION 36, ACCORDING TO THE PLAT THEREOF RECORDED MAY 23, 1930 AS DOCUMENT NO. 10667452; THE CAMPBELL SOUP COMPANY'S SUBDIVISION OF PART OF THE NORTHEAST 1/4 OF SAID SECTION 36, ACCORDING TO THE PLAT THEREOF RECORDED JULY 24, 1957 AS DOCUMENT NO. 16966716; AND THE SANITARY DISTRICT TRUSTEES' SUBDIVISION OF THE RIGHT OF WAY FROM THE NORTH AND SOUTH CENTER LINE OF SECTION 30, TOWNSHIP 39 NORTH, RANGE 14 EAST OF THE THIRD PRINCIPAL MERIDIAN, TO THE WEST LINE OF SECTION 7, TOWNSHIP 38 NORTH, RANGE 13 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED MARCH 31, 1908 AS DOCUMENT NO. 4180216 MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE INTERSECTION OF THE SOUTHERLY LINE OF THE SANITARY DRAINAGE AND SHIP CANAL, BEING THE SOUTHERLY LINE OF WATER LOT 'B' IN THE SANITARY DISTRICT TRUSTEES' SUBDIVISION, AFORESAID, WITH THE WEST RIGHT OF WAY LINE OF THE PITTSBURGH, CINCINNATI, CHICAGO & ST. LOUIS RAILWAY IN THE EAST 1/2 OF THE NORTHEAST 1/4 OF SAID SECTION 36;
12
SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
THENCE SOUTHWESTERLY ALONG THE SOUTHERLY LINE OF SAID SANITARY DRAINAGE AND SHIP CANAL TO THE EAST LINE OF CALIFORNIA AVENUE; THENCE NORTH ALONG THE EAST LINE OF CALIFORNIA AVENUE TO THE NORTH LINE OF 31st STREET; THENCE WEST ALONG SAID NORTH LINE TO THE INTERSECTION OF THE NORTHERLY EXTENSION OF A LINE DRAWN 667.24 FEET EAST OF AND PARALLEL WITH THE WEST LINE OF THE NORTHWEST 1/4 OF SAID SECTION 36; THENCE SOUTH ALONG SAID PARALLEL LINE AND ITS NORTHERLY EXTENSION TO THE NORTHERLY LINE OF THE CHICAGO & ILLINOIS WESTERN RAILROAD RIGHT OF WAY; THENCE SOUTHWESTERLY ALONG SAID NORTHERLY RIGHT OF WAY LINE TO THE CENTER LINE OF KEDZIE AVENUE; THENCE SOUTH ALONG THE CENTER LINE OF KEDZIE AVENUE TO THE SOUTHERLY RIGHT OF WAY LINE OF SAID CHICAGO & ILLINOIS WESTERN RAILROAD; THENCE WEST ALONG SAID SOUTHERLY RIGHT OF WAY LINE TO THE WEST LINE OF THE EAST 1/2 OF THE NORTHEAST 1/4 OF SAID SECTION 35; THENCE SOUTH ALONG SAID WEST LINE TO THE SOUTHERLY RIGHT OF WAY LINE OF THE ILLINOIS CENTRAL RAILROAD; THENCE WESTERLY ALONG SAID SOUTHERLY RIGHT OF WAY LINE TO A POINT IN A LINE 20 FEET WEST OF AND PARALLEL WITH THE EAST LINE OF THE-NORTHWEST 1/4 OF SAID SECTION 35; THENCE SOUTH ALONG SAID PARALLEL LINE TO THE NORTH LINE OF THE SAID SANITARY DRAINAGE AND SHIP CANAL, BEING THE NORTH LINE OF WATER LOT 'E' IN THE SANITARY DISTRICT TRUSTEES' SUBDIVISION, AFORESAID; THENCE NORTHEASTERLY ALONG SAID NORTHERLY LINE TO THE WEST LINE OF KEDZIE AVENUE; THENCE SOUTH ALONG THE WEST LINE OF KEDZIE AVENUE, A DISTANCE OF 258 FEET TO THE SOUTH LINE OF SAID WATER LOT 'E'; THENCE NORTHEASTERLY ALONG THE SOUTHERLY LINE OF WATER LOTS 'E' AND 'D' IN SAID SANITARY DISTRICT TRUSTEES' SUBDIVISION TO ITS INTERSECTION WITH THE WEST LINE OF THE ILLINOIS CENTRAL RAILROAD RIGHT OF WAY; THENCE SOUTHEASTERLY ALONG SAID WESTERLY RIGHT OF WAY LINE TO THE EAST LINE OF THE WEST 1/2 OF THE NORTHWEST 1/4 OF SAID SECTION 36; THENCE SOUTH ALONG SAID EAST LINE TO THE SOUTHERLY RIGHT OF WAY LINE OF THE ATCHISON TOPEKA & SANTA FE RAILWAY; THENCE NORTHEASTERLY ALONG SAID SOUTHERLY RIGHT OF WAY LINE TO THE WEST LINE OF CALIFORNIA AVENUE; THENCE SOUTH ALONG THE WEST LINE OF CALIFORNIA AVENUE TO THE SOUTH LINE OF 35th STREET; THENCE EAST ALONG THE SOUTH LINE OF 35th STREET TO THE WEST LINE OF THE PITTSBURGH, CINCINNATI, CHICAGO & ST. LOUIS RAILWAY RIGHT OF WAY; THENCE NORTH ALONG SAID WESTERLY RIGHT OF WAY LINE TO THE POINT OF BEGINNING, IN COOK COUNTY, ILLINOIS.
Exhibit 2: Vicinity Map
Replace Exhibit 2 with the enclosed RPA Context Map. Exhibit 3: Boundary Map
Replace Exhibit 3 with the enclosed RPA Boundary Map. Exhibit 4: Existing Land Use Map
Replace Exhibit 4 with the enclosed Existing Land Use Map. Exhibit 5: Intended Land Use Map
Replace Exhibit 5 with the enclosed new Proposed Future Land Use Map.
13
SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
Immediately following Exhibit 5, insert new exhibits as follows:
Exhibit 6: Certificate of Initial Equalized Assessed Valuation Exhibit 7: Original Plan, including Amendment No. 1
Appendix A
No changes.
14
SB FRIEDMAN | DEVELOPMENT ADVISORS
City of Chicago
Sanitary Drainage and Ship Canal RPA Amendment No. 2
Exhibit 2: RPA Context Map Sanitary Drainage and Ship Canal Tax Increment Redevelopment Area
Redevelopment Plan and Project Amendment No. 2
April 2015
15
SB FRIEDMAN | DEVELOPMENT ADVISORS
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City of Chicago Sanitary Drainage and Ship Canal RPA Amendment No. 2
Exhibit 6: Certificate of Initial Equalized Assessed Valuation
19
SB FRIEDMAN | DEVELOPMENT ADVISORS
STATE OF ILLINOIS )
) SS
COUNTY OF COOK )
CERTIFICATE OF INITIAL EQUALIZED ASSESSED VALUATION
I, DAVID D. ORR, do hereby certify that I am the duly qualified and acting Clerk of the County of Cook in the State of Illinois. As such Clerk and pursuant to Section 11 -74.4-9 of the Real Property Tax Increment Allocation Redevelopment Act (Illinois Revised Statutes, Chap. 24) I do further:
CERTIFY THAT on March 12, 1992, I received certified copies of the following Ordinances adopted by the City of Chicago, Cook County, Illinois on July 24, 1991:
- "An Ordinance Approving a Tax Increment Redevelopment Plan and Redevelopment Project for the Sanitary Drainage and Ship Canal Redevelopment Project Area";
- "An Ordinance Designating the Sanitary Drainage and Ship Canal Redevelopment Project Area and Redevelopment Project Area pursuant to the Tax Increment Allocation Redevelopment Project Act"; and
- "An Ordinance Adopting Tax Increment Allocation Financing for the Sanitary Drainage and Ship Canal Redevelopment Project Area".
CERTIFY THAT the area constituting the Tax Increment Redevelopment Project Area subject to Tax Increment Financing in the City of Chicago, Cook County, Illinois, is legally described in said Ordinances.
CERTIFY THAT the initial equalized assessed value of each lot, block, and parcel of real property within the said City of Chicago Project Area, as of July 24, 1991 is as set forth in the document attached hereto and made a part hereof as Exhibit "A";
CERTIFY THAT the total initial equalized assessed value of all taxable real property situated within the said City of Chicago Tax Increment Redevelopment Project Area is:
TAX CODE AREA 76017 $ 2,412,211
TAX CODE AREA 76066 1,359,340
TAX CODE AREA 76067 1,386,764
TAX CODE AREA 77006 4,222,534
TAX CODE AREA 77010 935,469
TAX CODE AREA 77084 406,011
for a total of
TEN MILLION, SEVEN HUNDRED TWENTY-TWO THOUSAND, THREE HUNDRED TWENTY-NINE DOLLARS AND NO CENTS
($10,722,329.)
such total initial equalized assessed value as of July 24, 1991, having been computed and ascertained from the official records on file in my office and as set forth in Exhibit "A".
IN WITNESS WHEREOF, I have hereunto affixed my signature arid the corporate seal COOK
COUNTY this 4,h day of February 2015. X/ * i /) /fO
fvctiAjJL U- cUm,
(SEAL) County Clerk
CLRTM369 PAGE NO. 1
DATE 02/04/2015 AGENCY: 03-0210-595 TIF CITY OF CHICAGO-SANITARY DRAIN&SHIP CANL
PERMANENT REAL ESTATE INDEX NUMBER 1990 EQUALIZED ASSESSED VALUATION
OK EACH LOT, BLOCK, TRACT OR PARCEL OF EACH LOT, BLOCK, TRACT OR PARCEL
REAL ESTATE PROPERTY WITHIN SUCH WITHIN SUCH PROJECT AREA:
PROJECT AREA:
16-36-200-029-0000 0
16-36-200-030-0000 351
16-36-200-031-0000 213,237
16-36-200-032-0000 8,128
16-36-200-033-0000 906
16-36-200-034-0000 3,846
16-36-200-038-0000 0
16-36-200-041-0000 197,216
16-36-200-042-0000 281,414
16-36-200-043-0000 54,750
16-36-200-048-0000 344,642
16-36-201-012-0000 272,941
16-36-201-020-0000 852
16-36-201-034-0000 344,642
16-36-201-035-0000 344,643
; 16-36-201-036-0000 344,643
16-36-501-002-0000 0
i
16-36-501-004-0000 0
2,412,211
TOTAL INITIAL EAV FOR TAXCODE: 76017 TOTAL PRINTED: 18
CLRTM369
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DATE 02/04/2015 AGENCY: 03-0210-595 TIF CITY OF CHICAGO-SANITARY DRAIN&SHIP CANL
PERMANENT REAL ESTATE INDEX NUMBER OF EACH LOT, BLOCK, TRACT OR PARCEL REAL ESTATE PROPERTY WITHIN SUCH PROJECT AREA:
1990 EQUALIZED ASSESSED VALUATION OF EACH LOT, BLOCK, TRACT OR PARCEL WITHIN SUCH PROJECT AREA:
16-36-200-022-0000 16-36-201-032-0000 16-36-201-033-0000
670,056 344,642 344,642
1,359,340
TOTAL INITIAL EAV FOR TAXCODE: 76066 TOTAL PRINTED: 3
CLRTM3 69
PAGE NO. 1
DATE 02/04/2015 AGENCY: 03-0210-594 TIF CITY OF CHICAGO-SANITARY DRAIN&SHIP CANL
PERMANENT REAL ESTATE INDEX NUMBER 1990 EQUALIZED ASSESSED VALUATION
OF EACH LOT, BLOCK, TRACT OR PARCEL OF EACH LOT, BLOCK, TRACT OR PARCEL
REAL ESTATE PROPERTY WITHIN SUCH WITHIN SUCH PROJECT AREA:
PROJECT AREA:
16-36-200-039-0000 1,386,764
1,386,764
TOTAL INITIAL EAV FOR TAXCODE: 76067 TOTAL PRINTED: 1
CLRTM369
PAGE NO. 1
DATE 02/04/2015 AGENCY: 03-0210-595 TIF CITY OF CHICAGO-SANITARY DRAIN&SHIP CANL
PERMANENT REAL ESTATE INDEX NUMBER 1990 EQUALIZED ASSESSED VALUATION
OF EACH LOT, BLOCK, TRACT OR PARCEL OF EACH LOT, BLOCK, TRACT OR PARCEL
REAL ESTATE PROPERTY WITHIN SUCH WITHIN SUCH PROJECT AREA:
PROJECT AREA:
16-35-204-001-0000 362,183
16-35-204-002-0000 36,198
16-35-204-003-0000 0
16-35-204-007-0000 0
16-35-205-001-0000 0
16-35-205-012-0000 0
16-35-205-013-0000 0
16-35-205-014-0000 0
16-35-205-016-8001 0
16-35-500-003-0000 0
16-35-500-004-0000 0
16-36-100-027-0000 62,024
16-36-100-028-0000 929,364
16-36-100-033-0000 0
16-36-100-035-0000 5,130
16-36-100-039-0000 6,187
16-36-100-047-0000 949
16-36-100-048-0000 2,687
16-36-100-051-8001 0
16-36-100-051-8003 0
16-36-100-051-8004 42,031
16-36-100-053-0000 90,826
16-36-100-054-0000 0
16-36-100-055-0000 0
16-36-100-056-0000 0
16-36-100-057 0000 0
16-36-100-058-8001 0
CLRTM369 PAGE NO. 2
DATE 02/04/2015 AGENCY: 03-0210-595 TIF CITY OF CHICAGO-SANITARY DRAIN&SHIP CANL
PERMANENT REAL ESTATE INDEX NUMBER 1990 EQUALIZED ASSESSED VALUATION
OF EACH LOT, BLOCK, TRACT OR PARCEL OF EACH LOT, BLOCK, TRACT OR PARCEL
REAL ESTATE PROPERTY WITHIN SUCH WITHIN SUCH PROJECT AREA:
PROJECT AREA:
16-36-100-058-8002 0
16-36-100-058-8003 0
16-36-100-059-8001 0
16-36-100-059-8002 42,031
16-36-101-002-0000 275,572
16-36-101-005-0000 953,714
16-36-101-011-0000 804,217
16-36-200-017-0000 0
16-36-200-018-0000 185,530
16-36-200-026-0000 20,963
16-36-200-037-0000 0
16-36-200-044-0000 315,157
16-36-201-013-0000 76,553
16-36-201-017-0000 0
16-36-201-019-0000 0
16-36-201-021-6001 0
. .16-36-201 -021-6002 0
16-36-201-024-0000 0
16-36-20:1-027-0000 11,218
16-36-500-001-0000 0
16-36-500-004-0000 0
16-36-500-005-0000 0
16-36-500-006-0000 0
16-36-500-007-0000 0
16-36-500-010-0000 0
16-36-501-001-0000 0
16-36-502-004-0000 0
CLRTM369
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AGENCY: 03-0210-595 TIF CITY OF CHICAGO-SANITARY DRAIN&SHIP CANL
PERMANENT REAL ESTATE INDEX NUMBER OF EACH LOT, BLOCK, TRACT OR PARCEL REAL ESTATE PROPERTY WTTHIN SUCH PROJECT AREA:
16-36-503-002-0000
16-36-503-003-0000
16-36-503-004-0000
16-36-503-005-0000
16-36-503-006-0000
1990 EQUALIZED ASSESSED VALUATION OF EACH LOT, BLOCK, TRACT OR PARCEL WITHIN SUCH PROJECT AREA:
0 0 0 0 0
4,222,534
TOTAL INITIAL EAV FOR TAXCODE: 77006 TOTAL PRINTED: 59
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PAGE NO. 1
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PERMANENT REAL ESTATE INDEX NUMBER OF EACH LOT, BLOCK, TRACT OR PARCEL REAL ESTATE PROPERTY WITHIN SUCH PROJECT AREA:
16-36-101-010-0000
16-36-101-014-0000
1990 EQUALIZED ASSESSED VALUATION OF EACH LOT, BLOCK, TRACT OR PARCEL WITHIN SUCH PROJECT AREA:
272,861 662,608
935,469
TOTAL INITIAL EAV FOR TAXCODE: 77010 TOTAL PRINTED: 2
CLRTM369
PAGE NO. 1
DATE 02/04/2015 AGENCY: 03-0210-595 TIF CITY OF CHICAGO-SANITARY DRAIN&SHIP CANL
PERMANENT REAL ESTATE INDEX NUMBER 1990 EQUALIZED ASSESSED VALUATION
OF EACH LOT, BLOCK, TRACT OR PARCEL OF EACH LOT, BLOCK, TRACT OR PARCEL
REAL ESTATE PROPERTY WITHIN SUCH WITHIN SUCH PROJECT AREA:
PROJECT AREA:
16-35-205-016-8002 245,398
16-36-100-060-0000 160,613
TOTAL INITIAL EAV FOR TAXCODE: 77084 406,011
2
TOTAL PRINTED:
City of Chicago Sanitary Drainage and Ship Canal RPA Amendment No. 2
Exhibit 7: Original Plan, including Amendment No. 1
20
SB FRIEDMAN | DEVELOPMENT ADVISORS
11/15/2012
40491
REPORTS OF COMMITTEES
WHEREAS, The Corporate Authorities desire to amend the Plan to conform the Plan to Section 11-74.4-3(n)(3) of the Act, as amended by the Amendatory Act, in accordance with the procedures set forth in amended Section 11-74.4-3(n)(3); now, therefore, .
Be It Ordained by Ihe City Council ofthe City of Chicago:
SECTION 1. Recitals. The above recitals are incorporated herein and made a part hereof.
SECTION 2. Approval Of Amendment To Plan. The "Amendment Number 1 to the Sanitary Drainage and Ship Canal Tax Increment Redevelopment Area Redevelopment Plan and Project", a copy of which is attached hereto as Exhibit A (the "Plan Amendment"), is hereby approved.
SECTION 3. Finding. The Corporate Authorities hereby find that the estimated dates of completion of the redevelopment project described in ihe Plan and of the retirement of obligations issued to finance redevelopment project costs set forth in the Plan, as amended by the Plan Amendment, conform to the provisions of Section 11-74.4-3(n)(3) of the Act, as amended by the Amendatory Act.
SECTION 4. Invalidity Of Any Section. If any provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this ordinance.
SECTION 5. Supersedes All ordinances (including, without limitation, the TIF Ordinances), resolutions, motions or orders in conflict with this ordinance are hereby repealed to the extent of such conflicts.
SECTION 6. Effective Date. This ordinance shall be in full force and effect immediately upon its passage.
Exhibit "A" referred to this ordinance reads as follows:
Exhibit "A".
Amendment No. 1 To Sanitary Drainage And Ship Canal Tax Increment Redevelopment Area Redevelopment Plan And Project.
1. The first sentence of the second paragraph under Section V.F., "Nature and term of Obligations to be Issued", is amended to read as follows:
40492
JOURNAL-CITY COUNCIL-CHICAGO 11/15/2012
All obligations issued by the City pursuant to this Plan and the Act shall be retired, no later than December 31 of the year in which the payment to the City treasurer as provided in the Act is to be made with respect to ad valorem taxes levied in the 23* calendar year following the year in which the ordinance approving the Area was adopted, such ultimate retirement date occurring on December 31, 2015.
2. The first sentence of the paragraph under Section VI. C, "Completion of Redevelopment Project and Retirement of Obligations to Finance Redevelopment Costs", is amended to read as follows:
The estimated date for completion of Redevelopment Projects is no later than December 31, 2015.
JMENT NO. 2 TO LINCOLN/BELMONT/ASHLAND REDEVELOPMENT PROJEO^AREA TAX INCREMENT ALLOCATION FINANCE PJS^GRAM REDEVELOPMENT PLAN AND PROJECT.
"[02012-7197]
(ICAGO, November 15, 2012.
The Committee on FinanS&^bmitted the following report:
To the President and Members of the Citvd@ounct!!
Your Committee on Finance^having had under ck»$K>ideration a communication recommending a proposed ordinance concerning the autnoHfe to approve Amendment Number 2 to the Lincoln/ptffmont/Ashland Redevelopment Pro^jtArea Tax Increment Allocation Finance Prooj^m Redevelopment Plan and Project, having^^the same under advisement, begs Je^ro to report and recommend that Your Honorable^§pdy Pass the proposed ordinance
This Comr
recommendation was concurred in by a viva voce vote of the members^Lthe
7/24/91
3295
REPORTS OF COMMITTEES
Exhibit nB".
The Sanitary Drainage and Ship Canal Redevelopment Project Area is generally bounded by the Sanitary Drainage and Ship Canal on the south and the Chicago & Illinois Western Railroad right-of-way on the north from Central Park Avenue extended on the west to the Collateral Channel on the east; and Illinois Central Railroad right-of-way on the south and 31st Street on the north from the Collateral Channel on the west to California Avenue on the east; and 35th Street on the south and the Sanitary Drainage and Ship Canal on the north from California Avenue on the west to the Pittsburgh, Cincinnati, Chicago & St. Louis Railway right-of-way on the east.
Exhibit "D".
City Of Chicago
Sanitary Drainage And Ship Canal Tax Increment Redevelopment Area
Redevelopment Plan And Project.
April, 1991.
I.
Introduction.
The Sanitary Drainage and Ship Canal Redevelopment Project Area (the "R.P.A.") is located in the south and west areas of the City of Chicago (the "City"). The R.P.A. roughly parallels the Stevenson Expressway from Central Park Avenue to California Avenue and the P.C.C. and St. Louis Railroad right-of-way. Existing land uses are largely categorized by
3296
JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
industrial buildings, storage/materials yards, railroad right of ways, and vacant land. Campbell's Soup has discontinued operations at the facility located within the R.P.A. Other large tracts of land between Central Park Avenue and Kedzie Avenue are underutilized. The City is proposing the R.P.A. designation in order to address certain blighting conditions that have served to inhibit or preclude area redevelopment.
The R.P.A. as a whole is approximately bounded by the following:
Beginning at the northwest corner of the Sanitary Drainage and Ship Canal ("Canal") and the southerly extension of Central Park Avenue, then northerly to the southern right-of-way of the Illinois Central Railway, then generally easterly to the Collateral Channel (a slip of the canal), then northerly to 31st Street, then easterly to California Avenue, then southerly to the southwest corner of the Canal and California Avenue, then northeasterly to the western right-of-way of the Baltimore & Ohio Railroad, then generally southerly to 35th Street, then westerly to California Avenue, then northerly to the southern right-of-way of the Atchison, Topeka, and Santa Fe Railroad right-of-way, then northwesterly along the southern right-of-way of the Illinois Central Railroad right-of-way, then westerly along the right-of-way to the southern side of the Canal to Kedzie Avenue, then northerly to the northern side of the Canal, then southwesterly to the point of beginning.
A legal description is included in (Sub)Exhibit 1.
Area Background.
The initial growth of the study area can be traced back to the opening of the Illinois and Michigan Canal in April, 1848. A major stimulus for trade with the entire Mississippi River Basin, the banks of the canal were used almost exclusively for bulk storage of such commodities as grain and coal.
The traffic on the I. & M. Canal, however, peaked in 1882. The Sanitary District of Chicago was formed in 1890, and planned for a new, larger and deeper canal which would provide for removal ofthe City's sewerage as well as permit for greater shipping traffic. As a result of its planning efforts, the Sanitary and Ship Canal opened to the north of the original canal in 1990. The new canal connected the south branch of the Chicago River with Lockport, Illinois, approximately 34 miles away.
The Sanitary District marketed its land holdings, including area within the R.P.A., along both sides of the canal for industrial uses, as it pursued connection of the canal to the Mississippi River. Manufacturing firms, particularly medium and heavy industrial users, were initial users of the
3297
7/24/91
REPORTS OF COMMITTEES
canal. These firms also took advantage of the excellent rail access afforded by such trunk lines as the Illinois Central and Chicago, Burlington & Quincy Railroads, and switching lines such as the Chicago and Western Indiana Railroad Company. This era, between 1895 - 1920, was Chicago's "Golden Age" of industrial development. Many of the remaining structures in the study area were constructed around this period, including the Campbell's Soup tomato soup plant. The Sanitary District did encounter some image problems for their landholdings. Many business owners eschewed the properties, perceiving the canal as an "open sewer". Indeed, dumping had been reported along its banks. The vacant tracts in the study area are among the remaining Sanitary District properties that were never developed or are under used.
Other pre-existing structures, however, were becoming deteriorated and obsolete due to age and technological advances. As shipping with motor trucks proliferated, thus freeing industrial firms from locations with rail access, many manufacturing plants relocated to new facilities in the suburbs as early as the 1930's.
In order to address the needs for truck access, the Stevenson Expressway was constructed in the vicinity. The siting of the expressway, however, affected circulation and ingress/egress to the sites within the Study Area. As with the construction ofthe other expressways, firm relocation out of the area may have been hastened by the highway construction.
The decline of manufacturing in the area continued into the 1980's with the relocation of Campbell's Soup, but other businesses continue to thrive in the area. The City's undertaking of redevelopment efforts will allow for certain activities such as clearing older, obsolete structures; improving access and traffic circulation, and making land available at competitive prices, and will allow for the rejuvenation and the strengthening of the industrial uses or other compatible uses remaining in the area.
The Redevelopment Plan.
The R.P.A. designation is being reviewed in order to assist the City and the community to actively pursue an economic development strategy that is able to comprehensively address area-wide blighted conditions. The designation would allow the parties to coordinate industrial redevelopment that is responsive to modern market trends and users, and revitalize the area. The redevelopment would also provide new jobs, expansion opportunities for existing Chicago manufacturing and/or industrial firms, the creation of marketable land to attract new industry to the area, and an increased tax base to the City and the community. Removal of obsolete buildings and improvements, site preparation, and property assembly are some of the redevelopment efforts that may be undertaken to assist projects within the R.P.A.
3298
JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
The needed public investment will be possible only if tax increment financing is adopted pursuant to the terms of the Tax Increment Allocation Redevelopment Act (the "Act"). Property tax incremental revenue generated by the development will play a decisive role in encouraging private development. Blighting conditions that have precluded intensive private investment in the past will be addressed. Through this Redevelopment Plan and Project, the City will serve as the central force for marshalling the assets and energies of the private sector for a unified cooperative public-private redevelopment effort. Ultimately, the implementation of the Redevelopment Plan and Project will benefit the City and all the taxing districts which encompass the R.P.A. in the form of a significantly expanded tax base, retain existing businesses in need of expanding their operations and create new employment opportunities as a result of new private development in the R.P.A.
Summary.
It is found and declared by the City that in order to promote and protect the health, safety, morals, and welfare of the public, that: blighted area conditions need to be eradicated, and that redevelopment of such areas must be undertaken; and, to alleviate the existing adverse conditions it is necessary to encourage private investment and enhance the tax base of the taxing districts in sucn areas by the development or redevelopment of project areas. The eradication of blighted areas by redevelopment projects is hereby declared to be essential to the public interest. Public/private partnerships are determined to be necessary in order to achieve development goals. Without the development focus and resources provided under the Tax Increment Allocation Redevelopment Act (Illinois Revised Statutes, Chapter 24, Section 11-74.4-3, as amended), the development goals of the municipality would not be achieved.
It was found and declared by the City that the use of incremental tax revenues derived from the tax rates of various taxing districts in the redevelopment project area for the payment of redevelopment project costs is of benefit to said taxing districts. This is because these taxing districts located in the redevelopment project area would not derive the benefits of an increased assessment base without the removal of the blighted conditions that now hinder its redevelopment.
The redevelopment activities that will take place within the R.P.A. will produce benefits that are reasonably distributed throughout the R.P.A.
The adoption of this Redevelopment Plan and Project makes possible the implementation of a comprehensive program for the economic redevelopment of the proposed area. By means of public investment, the R.P.A. will become an improved, more viable environment that will attract private investment and diversify the City tax base.
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Pursuant to the Act, the R.P.A. includes only those contiguous parcels of real property and improvements thereon substantially benefited by the redevelopment project. Also pursuant to the Act, the R.P.A. is not less in the aggregate than 1£ acres.
Redevelopment Project Area Legal Description.
The Redevelopment Project Area legal description is attached as (Sub)Exhibit 1.
Redevelopment Project Area Goals And Objectives.
The following goals and objectives are presented for the R.P.A. in accordance with the City's zoning ordinance and comprehensive plan as amended. Such goals and objectives may.be supplemented by future planning studies, traffic studies or site reports that are undertaken by the City or by development entities on behalf of the City as part of any Planned Unit Development (P.U.D.) process or other redevelopment activity.
General Goals.
- To provide for implementation of economic development strategies that benefit the City and its residents.
- To provide basic infrastructure improvements where necessary within the R.P.A.
- To encourage a positive and feasible redevelopment of any vacant sites and/or underutilized sites, including business retention efforts, if applicable.
- To preserve and improve the property tax base of the City.
- To create new jobs and retain existingjobs for City residents.
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6) Coordinate all redevelopment within the R.P.A. in a comprehensive manner, avoiding land use conflicts and potential negative community impacts with the surrounding area and existing users.
Specific Objectives.
- Remove obsolescent and/or underutilized facilities in order to redevelop properties for market uses.
- To address factors of inadequate utilities and deleterious land use throughout the R.P.A.
- To provide infrastructure improvements necessary to the redevelopment or retention of businesses located within the R.P.A.
- Provide competitive advantages for the redevelopment of properties within the R.P.A. (in comparison to out-of-City locations).
- Assemble and/or dispose of public land in order to facilitate business retention, expansion, and attraction.
Redevelopment Objectives. The purpose of the R.P.A. designation will allow the City to:
- Coordinate redevelopment activities within the R.P.A. in order to provide a positive marketplace signal;
- Reduce or eliminate blighted area factors present within the area;
- Accomplish redevelopment over a reasonable time period;
- Provide for high quality development within the R.P.A.; and
- Provide for an attractive overall appearance of the area.
Note: The objectives may be supplemented by findings of prospective reports or studies undertaken by the City or by development entities selected by the City.
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The Redevelopment Project's implementation will serve to improve the physical appearance of the entire area and contribute to the economic development of the area. Job creation associated with the project will provide new, improved employment opportunities for community and City residents.
TV.
Blighted Area Conditions Existing In The Redevelopment Project Area.
Findings.
The Redevelopment Project Area was studied to determine its qualifications as a "blighted area" as such term is defined in the Tax Increment Allocation Redevelopment Act (the "Act"), Illinois Revised Statutes, Section 11-74.4-3, as amended. It was determined that the area as a whole qualifies as a "blighted area". Refer to Appendix A for a summary of findings and a list of existing qualification factors for the area.
Eligibility Survey.
The entire designated Redevelopment Project Area was evaluated in March and April, 1991 by representatives from the City, Kane, McKenna and Associates, Inc., and Chicago Associates Planners & Architects. In such evaluation, only information was recorded which would directly aid in the determination of eligibility for a tax increment finance district.
V.
Redevelopment Project.
A. Redevelopment Plan And Project Objectives.
The City purposes to realize its goals and objectives of encouraging the development of the R.P.A. and encouraging private investment in industrial, and mixed use redevelopment projects through public finance techniques including, but not limited to, Tax Increment Financing. The City proposes to undertake a two phased redevelopment project consisting of
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Phase 1 — Industrial Redevelopment/East and North Sections; Phase 2 -Industrial and Mixed Use Redevelopment/Western Section. City objectives would be served through the following:
(1) By improving facilities that may include:
- Street improvements;
- Utility improvements (including water, storm water management and sewer improvements, water storage facilities, if necessary);
- Landscaping or streetscaping;
- Parking improvements/related parking improvements;
- Signalization, traffic control and lighting;
- Appropriate signage.
-
- By entering into redevelopment agreements with developers for qualified redevelopment projects.
- By rehabilitating existing structures or site improvements; including necessary site preparation, demolition, clearance and grading of redevelopment sites and relocation.
- By disposing and/or relocating public buildings that serve existing or ongoing institutional operations including site preparation and demolition.
- By utilizing interest cost write-down pursuant to provisions of the Act.
- By implementing a plan that addresses the redevelopment costs of land acquisition and assembly, site preparation, demolition/removals, and provision of infrastructure improvements or upgrading that may be necessary for adaption to a market oriented tax base, and diversifying the local economy.
- Provide job training for City residents.
- By exercising other powers set forth in the Act as the City deems necessary.
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B. Redevelopment Activities.
' Pursuant to the foregoing objectives, the City will implement a coordinated program of redevelopment actions, including, but not limited to, site preparation, assembly/disposal of property, demolition/removals, infrastructure improvements and upgrading, relocation and provision of public improvements, where required. Interest cost rebate pursuant to the Act may also be undertaken.
Proposed Public Improvements.
In accordance with its estimates of tax increment and other available resources, the City may provide public improvements in the R.P.A. to enhance the immediate area as a whole, to support the Redevelopment Project and Plan, and to serve the needs of City residents. Appropriate public improvements may include, but are not limited to:
vacation, removal, resurfacing, paving, widening, construction, turn islands, construction or reconstruction of curbs and gutters, traffic signals, and other improvements to streets, alleys, pedestrian ways and pathways;
reconfiguration of existing right-of-ways;
construction of new right-of-ways including streets, sidewalks, turning lanes, curbs and gutters;
demolition of any obsolete structure or structures;
improvements of public utilities including construction or reconstruction of water mains, as well as sanitary sewer and storm sewer, water storage facilities, detention ponds, signalization improvements, and streetlighting;
job training for area residents eligible for employment in the development of the projects.
The City may determine at a later date that certain improvements are no longer needed or appropriate, or may add new improvements to the list. The type of public improvement and cost for each item is subject to City approval and to the execution of a redevelopment agreement for the proposed project, in the form acceptable to the City.
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Certain public facilities may be relocated in order to consolidate ongoing institutional operations. Utility improvements necessary to facilitate such relocation could also be undertaken by the City.
Acquisition And Clearance.
The City may determine that to meet redevelopment objectives it may be necessary to participate in property acquisition in the Redevelopment Project Area or use other means to induce transfer of such property to the private developer.
Clearance and grading of existing properties to be acquired will, to the greatest extent possible, be scheduled to coincide with redevelopment activities so that parcels do not remain vacant for extended periods of time and so that the adverse effects of clearance activities may be minimized.
Individual structures may be exempted from acquisition if they are located so as not to interfere with the implementation of the objectives of this Redevelopment Plan or the projects implemented pursuant to this Redevelopment Plan and the owner(s) agree(s) to rehabilitate or redevelop the property, if necessary, in accordance with the objectives of the Plan as determined by the City.
Property which has been acquired may be made available for temporary public or private revenue producing uses which will not have adverse impacts on the redevelopment area, until such time as they are needed for planned development. Such revenues, if any, would accrue to the Redevelopment Project Area.
Relocation.
Any businesses or residents occupying properties to be acquired may be considered for relocation, advisory and financial assistance in accordance with provisions set forth and adopted by the City and other governmental regulations, if any.
Land Assembly And Disposition.
Certain properties that may be acquired by the City, and certain properties presently owned by the City (e.g., street rights-of-way and public facilities) may be assembled into appropriate redevelopment sites. Property assembly activities may include use of the City's eminent domain power. These properties may be sold or leased by the City to a private developer in
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whole or in part, for redevelopment subject to invitation for proposal requirements of the State of Illinois tax increment law. The City may amend this disposition plan in the future.
Terms of conveyance shall be incorporated into appropriate disposition agreements, and may include more specific restrictions than contained in this Redevelopment Plan or in other municipal codes and ordinances governing the use of land.
Demolition And Site Preparation. ^
Some of the buildings located within the R.P.A. may have to be reconfigured or relocated to accommodate new users or uses. Partial or complete demolition may be necessary as well as removal of debris. Additionally, the Redevelopment Plan contemplates site preparation or other requirements necessary to prepare the site for new uses, including the removal of environmentally hazardous materials, tanks, or soils. All of the above will serve to enhance site preparation for the City's desired redevelopment.
Interest Cost Write-Down.
Pursuant to the Act, the City may allocate a portion of incremental tax revenues to reduce the interest cost incurred in connection with redevelopment activities, enhancing the redevelopment potential of the R.P.A.
Job Training.
Pursuant to the Act, the City, its Mayor's Office of Employment and Training and other training providers, may develop training programs in conjunction with the redevelopment efforts.
Redevelopment Agreements.
Land assemblage may be conducted for (a) sale, lease or conveyance to private developers, or (b) sale, lease, conveyance or dedication for the construction of public improvements or facilities. Terms of conveyance shall be incorporated in appropriate disposition agreements which may contain more specific controls than those stated in this Redevelopment Plan.
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In the event the City determines that construction of certain improvements is not financially feasible, the City may reduce the scope of the proposed improvements.
C. General Land Use Plan.
Existing land uses in the R.P.A. are primarily industrial, material/storage yards, vacant property, and railroad right-of-way, as shown in (Sub)Exhibit 3. Some City (institutional) uses that are predominantly industrial in character are also present in the R.P.A. (Sub)Exhibit 4 designates the intended general land uses identified for the R.P.A.
The Redevelopment Project shall be subject to the provisions of the City Zoning Ordinance as such may be amended from time to time including any Planned Unit Development (P.U.D.) undertaken within the R.P.A. The proposed general land uses would conform to City planning efforts (ongoing) or objectives.
D. Estimated Redevelopment Project Costs.
Redevelopment project costs mean and include the sum total of all reasonable or necessary costs incurred or estimated to be incurred, as provided in the T.I.F. statute, and any such costs incidental to this Redevelopment Plan and Project. Eligible costs permitted under the Act which may be pertinent to this Redevelopment Plan and Project are:
-
- Costs of studies and surveys, development of plans and specifications, implementation and administration of the redevelopment plan including, but not limited to, staff and professional service costs for architectural, engineering, legal, marketing, financial, planning, and other special services, provided, however, that no charges for professional services may be based on a percentage of the tax increment collected;
- Property assembly costs, including but not limited to acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, and the clearing and grading of land;
- Costs of rehabilitation, reconstruction or repair or remodeling of existing buildings and fixtures;
- Costs of the construction of public works or improvements;
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- Costs of job training and retraining projects;
- Financing costs, including but not limited to all necessary and incidental expenses related to the issuance of obligations and which may include payment of interest on any obligations issued pursuant to the Act accruing during the estimated period of construction of any redevelopment project for which such obligations are issued and tor not exceeding 36 months thereafter and including reasonable reserves related thereto;
- All or a portion of a taxing district's capital costs resulting from the redevelopment project necessarily incurred or to be in furtherance of the objectives of the redevelopment plan and project, to the extent the City by written agreement accepts and approves such costs;
- Relocation costs to the extent that the City determines that relocation costs shall be paid or is required to make payment or relocation costs by federal or state law;
- Costs of job training, advanced vocational education or career education, including but not limited to courses in occupational, semi-technical or technical fields leading directly to employment, incurred by one or more taxing districts, provided that such costs (i) are related to the establishment and maintenance of additional job training, advance vocational education or career education programs for persons employed or to be employed by employers located in the Redevelopment Project Area; and (ii) when incurred by a taxing district or taxing districts other than the City, are set forth in a written agreement by or among the City and the taxing district or taxing districts, which agreement describes the program to be undertaken, including but not limited to the number of employees to be trained, a description of the training and services to be provided, the number and type of positions available or to be available, itemized costs of the program and sources of funds to pay for the same, and the term of agreement. Such costs include, specifically, the payment by community college districts of costs pursuant to Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public Community College Act and by school districts of costs pursuant to Sections 10-22.20a and 10-23.3a of The School Code;
10. If deemed prudent by the City for the redevelopment project, interest costs incurred by the redeveloper related to the construction, renovation or rehabilitation ot the redevelopment project provided that:
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- such costs are to be paid directly from the special tax allocation fund establishment pursuant to the Act;
- such payments in any one year may not exceed 30% of the annual interest costs incurred by the redeveloper with regard to the redevelopment project during that year;
- if there are not sufficient funds available in the special tax allocation fund to make the payment pursuant to this paragraph (10) then the amounts so due shall accrue and be payable when sufficient funds are available in the special tax allocation fund; and
(d) the total of such interest payments incurred pursuant to the Act may not exceed 30% of the total redevelopment project costs excluding any property assembly costs and any relocation costs incurred pursuant to the Act.
Estimated costs are shown in the next section. Adjustments to these cost items may be made without amendment to the Redevelopment Plan. The costs represent estimated amounts and do not represent actual City commitments or expenditures. Rather, they are a ceiling on possible expenditures of T.I.F. funds in the project area.
T.I.F. Redevelopment Project. Sanitary Drainage And Ship Canal Tax Increment Redevelopment Area Estimated Project Costs.
Phase 1 and Phase 2
Program Actions/Improvements Estimated Costs (A)
- Land Acquisition and Assembly
Costs including Demolition
and Clearance/Site Preparation $ 5,500,000
- Rehabilitation; Construction/
Renovation of Public Facilities 2,500,000
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3. Utility Improvements including,
but not limited to, Water, Storm, Sanitary Sewer and the Service
of Public Facilities $ 5,500,000
- Construction and Reconfiguration
of Parking, Rights-of-Way and Street Improvements/Construction, Signalization, Traffic Control, and Lighting, Landscaping Buffering
and Streetscaping 6,000,000
- Interest Costs pursuant to the Act 3,000,000
- Planning, Legal, Engineering,
Administrative and other
Professional Service Costs 1,500,000
- Relocation 500,000
- Job Training 500,000
Total Estimated Costs: $25,000,000
(A) All project cost estimates are in 1991 dollars. In addition to the above stated costs, any issue of bonds issued to finance a phase ofthe project may include an amount of proceeds sufficient to pay customary and reasonable charges associated with the issuance of such obligations as well as to provide for capitalized interest and reasonably required reserves. Adjustments to the estimated line item costs above are expected. Each individual project cost will be re-evaluated in light of the projected private development and resulting tax revenues as it is considered for public financing under the provisions of the Act.
E. Sources Of Funds To Pay Redevelopment Project Costs Eligible Under Illinois T.I.F. Statute.
Funds necessary to pay for public improvements and other project costs eligible under the T.I.F. statute are to be derived principally from property tax increment revenues, proceeds from municipal obligations to be retired primarily with tax increment revenues and interest earned on resources available but not immediately needed for the Redevelopment Plan and Project.
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"Redevelopment Project Costs" specifically contemplate those eligible public costs set forth in the Illinois statute and do not contemplate the preponderance of the costs to redevelop the area.
The tax increment revenues which will be used to pay debt service on the tax increment obligations, if any, and to directly pay redevelopment project costs shall be the incremental increase in property taxes attributable to the increase in the equalized assessed value of each taxable lot, block, tract or parcel of real property in the R.P.A. over and above the initial equalized assessed value of each such lot, block, tract or parcel in the R.P.A. in the 1989 tax year.
Among the other sources of funds which may be used to pay for redevelopment project costs and debt service on municipal obligations issued to finance project costs are the following: special service area taxes, the proceeds of property sales, property taxes, certain land lease payments, certain Motor Fuel Tax revenues, certain state and federal grants or loans, certain investment income, and such other sources of funds and revenues as the City may from time to time deem appropriate.
The Redevelopment Project Area would not reasonably be expected to be developed without the use ofthe incremental revenues provided by the Act.
F. Nature And Term Of Obligations To Be Issued.
The City may issue obligations secured by the tax increment special tax allocation fund established for the Redevelopment Project Area pursuant to the Act or such other funds as are available to the City by virtue of its power pursuant to the Illinois State Constitution.
Any and/or all obligations issued by the City pursuant to this Redevelopment Plan and Project and the Act shall be retired not more than twenty-three (23) years from the date of adoption ofthe ordinance approving the Redevelopment Project Area. However, the final maturity date of any obligations issued pursuant to the Act may not be later than twenty (20) years from their respective date of issuance. One or more series of obligations may be issued from time to time in order to implement this Redevelopment Plan and Project. The total principal and interest payable in any year, or projected to be available in that year, from tax increment revenues and from bond sinking funds, capitalized interest, debt service reserve funds and all other sources of funds as may be provided by ordinance.
Those revenues not required for principal and interest payments, for required reserves, for bond sinking funds, for redevelopment project costs, for early retirement of outstanding securities, and to facilitate the economical issuance of additional bonds necessary to accomplish the Redevelopment Plan, may be declared surplus and shall then become
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available for distribution annually to taxing districts overlapping the R.P.A. in the manner provided by the Act.
Such securities may be issued on either a taxable or tax-exempt basis, with either fixed rate or floating interest rates; with or without capitalized interest; with or without deferred principal retirement; with or without interest rate limits except as limited by law; and with or without redemption provisions.
G. Most Recent Equalized Assessed Valuation (E.A.V.) Of Properties In The Redevelopment Project Area.
The most recent estimate of Equalized Assessed Valuation (E.A.V.) of the property within the R.P.A. is approximately $11,915,759 which is the 1989 Equalized Assessed Valuation. The Boundary Map, (Sub)Exhibit 3, shows the location of the R.P.A. It is anticipated that the E.A.V. may be reduced by approximately $2,224,125 and the estimate of E.A.V. would then be $9,691,634. The reduction is estimated based upon certain real estate tax protest(s) that could result in the Cook County Assessor reducing the 1989 E.A.V.
H. Anticipated Equalized Assessed Valuation.
Upon completion of the anticipated private development of the Redevelopment Project Area over a ten year period, it is estimated that the Equalized Assessed Valuation of the property within the Redevelopment Project Area will be approximately $40,000,000. The estimate assumes a constant Cook County equalization factor (multiplier) of 1.836 (an average of the multiplier over the last 10 year period) and 1991 dollars.
VI.
Scheduling Of Redevelopment Project.
A. Redevelopment Project.
An implementation strategy will be employed with full consideration given to the availability of both public and private funding. It is anticipated that two phases of redevelopment will be undertaken: Phase 1 — Industrial Redevelopment/East and North Sections; Phase 2 -- Industrial and Mixed Uses Redevelopment/Western Section.
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The Redevelopment Project will begin as soon as a development entity has identified market uses for the sites and such uses are conformant with City zoning and planning requirements. Depending upon the scope of the development as well as the actual uses, the following activities may be included in each phase:
Land Assembly and Disposition. Certain properties in the R.P.A. may be acquired by the City and may be assembled into an appropriate redevelopment site. These properties may be acquired by the City, and subsequently sold or leased by the City to a developer for redevelopment of the site.
Demolition and Site Preparation. The existing structures located within the R.P.A. may have to be reconfigured or prepared to accommodate new uses. Partial demolition may be necessary as well as removal of debris. Additionally, the redevelopment plan contemplates site preparation, or other requirements necessary to prepare the site for the desired redevelopment.
Landscaping/Buffering/Streetscaping. The City may fund certain landscaping projects which serve to beautify public properties or rights-of-way and provide buffering between land uses.
Water, Sanitary Sewer, Storm Sewer and Other Utility Improvements. The City may extend or re-route certain utilities to serve or accommodate the new development. Upgrading of existing utilities may be undertaken. The provision of necessary detention or retention facilities may also be undertaken by the City.
Roadway/Street/Parking Improvements. Widening of existing road improvements and/or vacation of roads may be undertaken by the City. Certain secondary streets/roads may be extended or constructed by the City. Related curb, gutter, and paving improvements could also be constructed as needed. Parking facilities may be constructed that would be available to the general public.
Public Facilities and Improvements. The City may provide for the construction and/or renovation of public buildings and facilities in order to relocate institutional operations, needed services and to provide for efficient utilization of property within the R.P.A.
Utility services may also be provided or relocated in order to accommodate the consolidation of buildings.
Traffic Control/Signalization. The City may construct necessary traffic control or signalization improvements that improve access to the R.P.A. and enhance its redevelopment.
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Public Safety Related Infrastructure. The City may construct certain public safety improvements including, but not limited to, public signage, public facilities, and streetlights.
Relocation. The City may pay for certain relocation costs, conformant with City policies and regulations.
Interest Cost Coverage. The City may pay for certain interest costs incurred by a redeveloper for construction, renovation or rehabilitation of the redevelopment project. Such funding would be paid for out of annual tax increment revenue generated from the R.P.A. as allowed under the Act.
Professional Services. The City may use tax increment financing to pay necessary planning, legal, engineering, administrative and financing costs during project implementation.
B. Commitment To Fair Employment Practices And Affirmative Action.
As part of any Redevelopment Agreement entered into by the City and any private developers, both will agree to establish and implement a honorable, progressive, and goal-oriented affirmative action program that serves appropriate sectors ofthe City. The program will conform to the most recent City policies and plans.
With respect to the public/private development's internal operations, both entities will pursue employment practices which provide equal opportunity to all people regardless of sex, color, race or creed. Neither party will countenance discrimination against any employee or applicant because of sex, marital status, national origin, age, or the presence of physical handicaps. These nondiscriminatory practices will apply to all areas of employment, including: hiring, upgrading and promotions, terminations, compensation, benefit programs and education opportunities.
All those involved with employment activities will be responsible for conformance to this policy and the compliance requirements of applicable state and federal regulations.
The City and private developers will adopt a policy of equal employment opportunity and will include or require the inclusion of this statement in all contracts and subcontracts at any level. Additionally, any public/private entities will seek to ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites, and in all facilities at which all employees are assigned to work. It shall be specifically ensured that all on-site supervisory personnel are aware of and carry out the
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obligation to maintain such a working environment, with specific attention to minority and/or female individuals.
Finally, the entities will utilize affirmative action to ensure that business opportunities are provided and that job applicants are employed and treated in a nondiscriminatory manner. Underlying this policy is the recognition by the entities that successful affirmative action programs are important to the continued growth and vitality of the community.
C. Completion Of Redevelopment Project And Retirement Of Obligations To Finance Redevelopment Costs.
This Redevelopment Project will be completed on or before a date 23 years from the adoption of an ordinance designating the Redevelopment Project Area. The City expects that the Redevelopment Project will be completed sooner than the maximum time limit set by the Act, depending on the incremental property tax yield. Actual construction activities for both phases are anticipated to be completed within approximately 7 to 10 years.
VII.
Provisions For Amending The Tax Increment Redevelopment Plan And Project.
This Redevelopment Plan and Project may be amended pursuant to the provisions of the Act. The City anticipates that a wider planning area, including additional properties located along and adjacent to the Sanitary Drainage and Ship Canal, may be reviewed in future years. The planning effort would concentrate on identifying potential redevelopment uses and the means to address any blighted conditions inhibiting such uses.
[(Sub)Exhibits 2, 3, 4 and 5 attached to this Redevelopment Plan and Project printed on pages 3347 through 3352 of this Journal.]
(Sub) Exhibit 1 and Appendix "A" attached to this Redevelopment Plan and Project read as follows:
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(Sub)Exhibit 1.
Legal Description.
All that part of the southwest quarter of Section 25; the northeast quarter, the northwest quarter and the west half of the southeast quarter of Section 35; the north half, the east half of the southwest quarter and the southeast quarter of Section 36, all in Township 39 North, Range 13 East of the Third Principal Meridian, together with certain lots and blocks in Manchester, being Steele and Buchanan's Subdivision of that part of the east half of the northeast quarter of said Section 36, lying north of the Illinois and Michigan Canal according to the plat thereof recorded July 31, 1857; S. J. Walker's Subdivision of that part south of the canal of the northwest quarter of Section 31, Township 39 North, Range 14 East of the Third Principal Meridian, also that part south of the canal of the east half of the northeast quarter of said Section 36, according to the plat thereof recorded February 6, 1863; the Campbell Soup Company (Central Division) Subdivision of part of the northeast quarter of said Section 36, according to the plat thereof recorded May 23, 1930 as Document No. 10667452; the Campbell Soup Company's Subdivision of part of the northeast quarter of said Section 36, according to the plat thereof recorded July 24, 1957 as Document No. 16966716; and the Sanitary District Trustees' Subdivision of the right-of-way from the north and south center line of Section 30, Township 39 North, Range 14 East ofthe Third Principal Meridian, to the west line of Section 7, Township 38 North, Range 13 East of the Third Principal Meridian, according to the plat thereof recorded March 31, 1908 as Document No. 4180216, more particularly described as follows:
beginning at the intersection of the southerly line of the Sanitary Drainage and Ship Canal, being the southerly line of Water Lot "B" in the Sanitary District Trustees' Subdivision, aforesaid, with the west right-of-way line of the Pittsburgh, Cincinnati, Chicago & St. Louis Railway in the east half of the northeast quarter of said Section 36; thence southwesterly along the southerly line of said Sanitary Drainage and Ship Canal to the east line of California Avenue; thence north along the east line of California Avenue to the north line of 31st Street to the intersection of the northerly extension of a line drawn 667.24 feet east of and parallel with the west line of the northwest quarter of said Section 36; thence south along said parallel line and its northerly extension to the northerly line of the Chicago & Indiana Western Railroad right-of-way; thence southwesterly along said northerly right-of-way line to the west line of Kedzie Avenue; thence south along the west line of Kedzie Avenue to the southerly right-of-way line of said Chicago & Illinois Western Railroad; thence west along said southerly right-of-way line to
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the west line of the east half ofthe northeast quarter of said Section 35; thence south along said west line to the southerly right-of-way line of the Illinois Central Railroad; thence westerly along said southerly right-of-way line to a point in a line 20 feet west of and parallel with the east line of the northwest quarter of said Section 35; thence south along said parallel line to the north line of the said Sanitary Drainage and Ship Canal, being the north line of Water Lot "E" in the Sanitary District Trustees' Subdivision, aforesaid; thence northeasterly along said northerly line to the west line of Kedzie Avenue; thence south along the west line of Kedzie Avenue, a distance of 258 feet to the south line of said Water Lot "E"; thence northeasterly along the southerly line of Water Lots 'TE" and "D" in said Sanitary District Trustees' Subdivision to its intersection with the west line of the Illinois Central Railroad right-of-way; thence southeasterly along said westerly right-of-way line to the east line of the west half or the northwest quarter of said Section 36; thence south along said east line to the southerly right-of-way line of the Atchison, Topeka & Santa Fe Railway; thence northeasterly along said southerly right-of-way line to the west line of California Avenue; thence south along the west line of California Avenue to the south line of 35th Street; thence east along the south line of 35th Street to the west line of the Pittsburgh, Cincinnati, Chicago & St. Louis Railway right-of-way; thence north along said westerly right-of-way line to the point of beginning, in Cook County, Illinois.
Appendix "A".
City Of Chicago
T.I.F. Designation Report
Sanitary Drainage And Ship Canal Redevelopment Area.
I.
Executive Summary.
Illinois municipalities are enabled to utilize tax increment revenues to aid redevelopment activities in blighted areas pursuant to the Tax Increment Allocation Redevelopment Act, as amended. This report documents the
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presence of blighted conditions defined by the Act in the Sanitary Drainage and Ship Canal Redevelopment Area.
This Area first developed during the initial construction of the Illinois and Michigan Canal, and grew during the subsequent opening of the Sanitary Canal in 1900. Development has been historically oriented to the dominant modes of transportation in the area, initially the Canal and, then rail. As a result, the Area generally contains older structures that are characterized by blight, and improvements that are inadequate given the present reliance of industrial users on trucking.
Specifically, after thorough review of the Area, the following blighting characteristics conformant with the T.I.F. Act were found to be present:
For Improved Areas:
Obsolescence
Deleterious Land Use and Layout
Depreciation of Physical Maintenance
Inadequate Utilities
Structures Below Minimum Code
Excessive Vacancies
Age
Lack of Community Planning
For Unimproved Vacant Areas:
Unused Disposal Site
Unused Railyard/Railroad Right-of-Ways
In addition, other state requirements for designation of an area for T.I.F. were found to be satisfied. Therefore, the contemplated T.I.F. designation for the Area is consistent with the intent ofthe T.I.F. legislation.
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77.
Introduction And Background.
Introduction.
The purpose of this report is to document in a comprehensive manner the extent to which the factors of a "blighted improved area" and a "blighted vacant area" may be found in the area generally located along the Sanitary Drainage and Ship Canal and the Stevenson Expressway, east of Central Park Avenue and west of the Baltimore and Ohio (B. and 0.) Railroad in Chicago, Illinois and to determine the eligibility of this area for such status pursuant to the Tax Increment Allocation Redevelopment Act, Illinois Revised Statute, Section 11-74.4-3 (the "Act").
The Act addresses the elimination or reduction of blighted area factors within Illinois communities through the implementation of redevelopment measures. The Act authorizes the use of tax increment revenues derived from the tax rates of various taxing districts in a Redevelopment Project Area (the "R.P.A.") for the payment of costs related to the undertaking of redevelopment projects. In order to qualify for redevelopment eligibility under this legislation, an R.P.A. must contain conditions which warrant its designation as a "blighted area". The following sections of this report will describe conditions of blight which exist in the Study Area conformant to the provisions ofthe Act.
The Study Area as a whole is approximately bounded by the following:
beginning at the northeast corner of the Sanitary Drainage and Ship Canal ("Canal") and the southerly extension of Central Park Avenue; then northerly to the southern right-of-way of the Illinois Central Railway; then generally easterly to the Collateral Channel (a slip of the Canal); then northerly to 31st Street; then easterly to California Avenue; then southerly to the southwest corner of the Canal and California Avenue; then northeasterly to the western right-of-way of the B. and 0. Railroad; then southerly to 35th Street; then westerly to California Avenue; then northerly to the southern right-of-way of the Atchison, Topeka and Santa Fe Railroad right-of-way; then northwesterly along the southern right-of-way of the Illinois Central Railroad; then westerly along the right-of-way to the southern side of the Canal to Kedzie Avenue; then northerly to the northern side ofthe Canal; then southwesterly to the point of beginning.
The survey was undertaken in March and April, 1991 and also includes the findings of previous surveys and inventories conducted by various firms
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and City agencies which were available and are pertinent to the evaluation of this Area. Additionally, other City plans and studies concerning the Area were reviewed.
Area Background.
The initial growth of the Study Area can be traced back to the opening of the Illinois and Michigan Canal in April, 1848. A major stimulus for trade with the entire Mississippi River Basin, the banks of the Canal were used almost exclusively for bulk storage of such commodities as grain and coal.
The traffic on the I. and M. Canal, however, peaked in 1882. The Sanitary District of Chicago was formed in 1890, and planned for a new, larger and deeper Canal which would better provide for removal of the City's sewage as well as permit greater shipping traffic. As a result of its planning efforts, the Sanitary and Ship Canal opened to the north of the original Canal in 1900. The new Canal connected the south branch ofthe Chicago River with Lockport, Illinois, approximately 34 miles away.
The Sanitary District marketed its land holdings (including areas within the Study Area) along both sides of the Canal for industrial uses as it pursued the connection of the Canal to the Mississippi River. Manufacturing firms, particularly medium and heavy industrial users, were early users of the Canal. These firms also took advantage of the excellent rail access afforded by such trunk lines as the Illinois Central and Chicago, Burlington and Quincy Railroads and switching lines such as the Chicago and Western Indiana Railroad Company. This era, between 1895 - 1920, was Chicago's "Golden Age" of industrial development, and many of the remaining structures in the Study Area were constructed around this period, including the Campbell's Soup tomato soup plant.
The Sanitary District did encounter some image problems for its landholdings, however. Many business owners eschewed the properties, perceiving the Canal as an "open sewer". Indeed, dumping was going on along its banks and has continued. The vacant tracts in the Study Area are among the remaining Sanitary District properties that were never developed or are under used.
Other structures which were constructed prior to this period were becoming deteriorated and obsolete due to age and technological advances. As shipping with motor trucks proliferated, industrial firms were freed from locations with rail access. Many manufacturing plants relocated to new facilities in the suburbs as early as the 1930's.
In order to address the needs for truck access, the Stevenson Expressway was constructed to the south of the Canal and opened in October, 1965. The siting of the expressway, however, affected circulation and ingress/egress to
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the sites within the Study Area. As with the construction of the other superhighways, firm relocation out of the area may have been hastened by the highway.
The decline of manufacturing in the area continued into the 1980's with the relocation of Campbell's Soup to a location outside of Illinois, but other businesses continue to thrive in the area. By undertaking redevelopment efforts which will allow for certain activities such as clearing older, obsolete structures, improving access and traffic circulation, and making land available at competitive prices, the City will allow for rejuvenation and strengthening of the industrial uses (or other compatible uses remaining in the area).
The R.P.A. designation is being reviewed in order to assist the City and the community to actively pursue an economic development strategy that is able to comprehensively address area-wide blighted conditions. The designation would allow the parties to coordinate industrial redevelopment that is responsive to modern market trends and users and revitalize the area. The redevelopment would also provide new jobs, expansion opportunities for existing Chicago manufacturing and/or industrial firms and the creation of marketable land to attract new industry to the area and increased tax base to the City.
///.
Qualification Criteria Used.
With the assistance of City of Chicago staff, and an independent planning consultant, Chicago Associates Planners and Architects (C.A.P.A.), Kane, McKenna and Associates, Inc. (K.M.A.) examined the proposed redevelopment project area (R.P.A.) to determine the presence or absence of appropriate qualifying factors listed in the Illinois "Real Property Tax Increment Allocation Act" (hereinafter referred to as "the Act"), as amended. The relevant sections of the Act are found below.
The Act sets out specific procedures which must be adhered to in designating a redevelopment project area. By definition, a "redevelopment project area" is:
"an area designated by the municipality, which is not less in the aggregate than one and one-half acres and in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area or a conservation area, or a combination of both blighted area and conservation areas".
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The Act defines a "blighted" area as follows:
"any improved or vacant area within the boundaries of a redevelopment project area located within the territorial limits of the municipality where, if improved, industrial, commercial and residential buildings or improvements, because of a combination of 5 or more of the following factors: age; dilapidation; obsolescence; deterioration; illegal use of individual structures; presence of structures below minimum code standards; excessive vacancies; overcrowding of structures and community facilities; lack of ventilation, light or sanitary facilities; inadequate utilities; excessive land coverage; deleterious land use or layout; depreciation of physical maintenance; lack of community planning; is detrimental to the public safety, health, morals or welfare or if vacant, the sound growth of the taxing districts is impaired by: 1) a combination of two or more of the following factors: obsolete platting ofthe vacant land; diversity of ownership of such land; tax and special assessment delinquencies on such land; deterioration of structures or site improvements in neighboring area adjacent to the vacant land; or 2) the area immediately prior to becoming vacant qualified as a blighted improved area; or 3) the area consists of an unused quarry or unused quarries; or 4) the area consists of unused railyards, rail tracks or railroad rights-of-way; or 5) the area, prior to its designation, is subject to chronic flooding which adversely impacts on real property in the area and such flooding is substantially caused by one or more improvements in or in proximity to the area which improvements have been in existence for at least five years; or 6) the area consists of an unused disposal site, containing earth, stone, building debris or similar material, which were removed from construction, demolition, excavation or dredge sites; or 7) the area is not less than 50 nor more than 100 acres and 75% of which is vacant, notwithstanding the fact that such area has been used for commercial agricultural purposes within five years prior to the designation ofthe redevelopment project area, and which area meets at least one of the factors itemized in provision 1) of this subsection (a) and the area has been designated as a town or village center by ordinance or comprehensive plan adopted prior to January 1, 1982, and the area has not been developed for that designated purpose".
The criteria listed in the Act have been defined for purposes of the analysis of an improved area as follows:
1. Age. Simply the time which has passed since building construction was completed.
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4.
5.
6. 7.
8. 9.
10. 11. 12.
13. 14.
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Illegal Use of Structure. The presence on the property of unlawful uses or activities.
Structures Below Minimum Code Standards. Structures below local code standards for building, fire, housing, zoning, subdivision or lack of conformance with other applicable governmental codes.
Excessive Vacancies. When the occupancy or use level of the building is low for frequent or lengthy periods so as to represent an adverse area influence.
Lack of Ventilation, Light or Sanitary Facilities. Conditions which could negatively influence the health and welfare of building users.
Inadequate Utilities. Deficiencies in sewer, water supply, storm drainage, electricity, streets or other necessary site services.
Dilapidation. The condition where the safe use ofthe building is seriously impaired, as evidenced by substandard structural conditions; this is an advanced stage of deterioration.
Obsolescence. When the structure has become or will soon become ill-suited for the originally designed use.
Deterioration. A condition where the quality of the building has declined in terms of structural integrity and/or building systems due to lack of investment, misuse or age.
Overcrowding of Structures and Community Facilities. A level of use beyond a designed or legally permitted level.
Excessive Land Coverage. Site coverage of an unacceptably high level.
Deleterious Land Use or Layout. Inappropriate property use or platting, or other negative influences not otherwise covered, which discourages investment in a property.
Depreciation of Physical Maintenance. Decline in property maintenance which leads to building degeneration, health and safety hazards, unattractive nuisances, unsightliness, property value decline and area distress.
Lack of Community Planning. Deficiency in local direction of growth, development or redevelopment in order to maintain or enhance the viability of the area or community.
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The criteria listed in the Act were defined for purposes of analysis of vacant land as follows:
- Obsolete Platting. Recorded easement, rights-of-way, points of egress or lot or property lines are so recorded in a manner which is inimical to the redevelopment of properties.
- Diversity of Ownership. Ownership of adjacent parcels by different parties serving to impede any assembly of land for development or redevelopment purposes.
- Tax and Special Assessment Delinquencies. Any unpaid tax or special assessment bill currently attached to any parcel in the R.P.A.
- Deterioration of Structures or Site Improvements in Neighboring Areas. The presence of deterioration as defined in nearby structures.
- Flooding on All or Part of Such Vacant Land. The presence of flood plains or any recent history of flooding on any part of such land.
The final criteria listed in the Act is defined for purposes of analysis of vacant land as follows:
-
- Chronic Flooding. A history of serious flooding problems which has been in existence for at least five (5) years. Such chronic flooding must adversely impact real property. There may be nearby improvements including structures, parking lots and roads substantially contributing to flooding.
- Unused Disposal Site. The area consists of an unused disposal site containing earth, stone, building debris or similar material, which were removed from construction, demolition, excavation or dredge sites.
- Blighted Prior to Vacancy. The area immediately prior to becoming vacant qualified as a blighted area defined earlier by the Act.
- Unused Quarries. The presence of unused quarry or quarries.
- Unused Railways. The presence of unused railyards, rail tracks or railroad rights-of-way.
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6. Vacancy as Percentage of Acreage. The area is not less than 50 nor more than 100 acres and 75% of which is vacant, notwithstanding the fact that such area has been used for commercial agricultural (farming) purposes within five (5) years prior to the designation of the redevelopment project area and meets at least one (1) "blighted" factor (described above) and the area has been designated as a town or village center by ordinance or comprehensive plan adopted prior to January 1, 1982 and the area has not been developed for that designated purpose.
The presence of factors must be reasonably distributed throughout the respective primary tracts and be present to a meaningful extent. The analysis herein indicates that the factors are present to a meaningful extent for each primary tract.
IV.
Study Area.
The Study Area is divided into three (3) primary tracts. These primary tracts comprise the western, the central, and the eastern portions of the proposed R.P.A. and represent study/review sections within the proposed R.P.A.
Primary Tract 1.
Primary Tract 1 is bounded by California Avenue to the west, 35th Street to the south, the southern side of the Canal to the north, and the B. and O. Railroad right-of-way to the east.
The area primarily is dominated by two complexes: the vacated Campbell's Soup facilities and the Dickinson building, which account for half of the approximately fourteen (14) buildings in the area. There are also approximately twenty-two (22) fuel storage tanks and about two (2) ancillary buildings located in the primary tract. The Stevenson Expressway runs roughly through the center of the area from the southwest to the northeast.
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Primary Tract 2.
This primary tract is irregularly shaped and is generally bounded by the western easement along the Collateral Channel, Kedzie Avenue, and the Metropolitan Water Reclamation District (M.W.R.D.) property line to the west, a C. and I. W. right-of-way and 31st Street to the north, California Avenue to the east, and an Illinois Central Railroad and an Atchison, Topeka and Santa Fe Railroad rights-of-way, and the southern and northern edges ofthe Canal to the south. The area is divided width-wise by the C. and I. W. Railroad right-of-way; this separates property fronting 31st Street from property fronting the Canal. The Canal also divides the primary tract, with property on both sides of the Canal.
The area contains approximately twenty-two (22) buildings, nine (9) ancillary buildings, and six (6) storage tanks. North of the rail line are numerous industrial and warehousing buildings and ancillary structures such as sheds. The land north ofthe Canal but south of the railroad right-of-way has a number of structures, along with some fuel storage tanks. The land south of the Canal has some small structures, but is primarily used for outdoor storage.
To the west of Kedzie, there is a W.V.O.N. radio station building and a transmitting tower. Kedzie Avenue is transversed by two (2) viaducts.
Primary Tract 3.
This primary tract is bounded by the Canal and Illinois Central Railroad right-of-way to the south, the I.N. Railway right-of-way to the west (which occupies what would be the southerly extension of Central Park Avenue), the Illinois Central and the C. and I. W. Railroad rights-of-way to the north. The tract extends as far east as Kedize Avenue and is also bounded by the M.W.R.D. property line. This area consists of land owned primarily by the Metropolitan Water Reclamation District (M.W.R.D.) and some railroads. The property is vacant, and is wooded. It contains fill materials and formerly had some railroad tracks.
V.
Methodology Of Evaluation.
In evaluating the proposed R.P.A.'s qualification, the following methodology was utilized:
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- Site surveys of the Study Area were undertaken by representatives from the City of Chicago, Kane, McKenna and Associates, Inc. and Chicago Associates Planners and Architects in February through April of 1991. In some cases, site access was restricted. In these cases, aerial photographs, long-view reconnaissance, and Sanborn maps were relied upon. Site surveys were completed for each parcel and structure to which access could be gained within the proposed R.P.A.
- Primary Tracts 1 and 2 were examined to determine the applicability of the fourteen (14) different criteria for qualification as improved land for T.I.F. under the Act. Primary Tract 3 was examined to determine the applicability of the seven (7) different criteria for qualification as vacant land for T.I.F. under the Act. A survey was then undertaken to independently review the factors for each primary tract. The following preliminary findings are presented to the best of our current knowledge according to the above information and techniques.
- An evaluation of structures, noting depreciation, deterioration, or dilapidation as well as apparent vacancies or possible code violations was conducted by K.M.A. Exterior conditions were examined for structures, while internal examinations were conducted for some structures.
- Individual structures were initially surveyed only in the content of checking, to the best of our knowledge, the existence of qualification factors of specific structures on particular parcels.
- The entire area was studied in relation to review of available planning reports pertaining to the City, water and sewer atlases, City ordinances, 1989 tax levy year information from the Cook County Clerk's Office, Sidwell tax plat maps, local history, City records regarding age of structures and building code violations, and an evaluation of area-wide factors that affected the area's decline (e.g., deleterious land use or layout, obsolescence, et cetera). K.M.A. reviewed the area in its entirety. City redevelopment goals and objectives for the entire area were also reviewed.
6) Evaluation was made by reviewing the information collected and determining how each parcel and structure measured as to the prevalence of each factor.
Summary Of Area Findings.
The following is a summary of relevant qualification findings:
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- The entire R.P.A. comprises approximately 250 acres. The area is contiguous and is greater than 1£ acres in size, as required by the Act.
- The Study Area can be categorized as a "blighted improved area" for Primary Tracts 1 and 2 and a "blighted vacant area" for Primary Tract 3 (a discussion of the basis for qualification of the R.P.A. follows in the next section). Factors necessary to make these findings are present to a meaningful extent and are reasonably distributed throughout the respective primary tracts as described in Exhibit 1.
- Through the combination of proposed infrastructure improvements and reuse of obsolete properties, it is hoped that the marketability of the Area will be improved. Therefore, all property in the R.P.A. would substantially benefit by the proposed redevelopment project improvements.
- The sound growth of these taxing districts that are applicable to the area, including the City, had been impaired by the factors found present in the area. For background on the decline of the Area, refer to pages 4 — 6.
5) The area has not been subject to private redevelopment efforts due to area obsolescence and inadequate infrastructure. It is thus concluded that the area would not be subject to redevelopment without the investment of public funds, including property tax increments.
VI.
Qualification Of Area/Findings Of Eligibility.
Obsolescence.
The evolutionary use and importance of the major transportation systems (Canal to rail to expressway), which serves and defines the R.P.A., creates a context within which obsolete conditions exist.
Platting Characteristics That Are Obsolete.
The land was platted to conform to the linear pattern first established by
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the Canal, followed by the rail, and reinforced by the Stevenson Expressway construction.
The large parcels are predominantly long, thin and rectangular in shape. In many instances this configuration allows for severely limited or no possible access by the secondary road system. For example, each of three properties within the R.P.A. that are adjacent to the Canal and front on California Avenue have approximately a 4,000 foot perimeter. Yet, the accessible street frontage on California Avenue (taking into account the gradient from the bridge) is less than 150 feet, or less than one-half of one percent of each properties' perimeter.
Other large single-user plats, such as the former Campbell's Soup plant, are usually bracketed by rail and expressway without adequate two-sided road access. But the eastern edge of this property (in Block 501), along with parcels to the north (in Blocks 201 and 503), also offer examples of obsolete platting of parcels originally laid out for residential use. The platting, which consists of residential-sized lots and vacated alleys and streets is neither representative of existing physical conditions nor suited for future industrial users.
There are also situations where the plat was defined by a subdivision network that consisted of branch canals interspersed with rail spurs without road access. These areas have been filled-in or abandoned; creating parcels large in size, varied in composition, and usually lacking in secondary road access. Hence, the plats conform to right-of-ways and improvements that are of a "ghost" nature; they have been filled-in, revised, abandoned or overlooked, with only the plat lines remaining.
Functional Characteristics That Are Obsolete.
Many of the buildings, improvements or equipment constructed on the plats were for functions that were specific to the adjacent modes of transport at particular historical points in time. Therefore, the size, shape and construction method was very much determined by this particular type of user. Examples include warehouse structures, truck or barge terminals, tank farms and building material yards.
Specific Parcels That Are Obsolete.
The Campbell's Soup property represents a single-use building/complex designed to provide for a fully integrated process of making canned soup. The original structures were added onto through the years to create a large, highly specific complex of structures and improvements. These uses are now discontinued, and the very specific nature, size and integrated form makes
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them obsolete for new users (even a new soup company) given the inefficient characteristics of their outdated manufacturing process and facility's design.
Street, Alley Or Off-Street Parking Characteristics That Are Obsolete.
Secondary road access is non-existent throughout the R.P.A. The only existing public roads within the district are the quarter section streets: 31st Street, 35th Street, California Avenue and Kedzie Avenue. Alleys are nonexistent in the R.P.A., and off-street parking is generally inadequate, either improvised in and around loading areas or assigned to vacant unpaved areas of each property. The near total lack of paved, drained or lighted streets, alleys or parking areas (on the whole) does not conform to current standards for improvements within industrial or manufacturing districts.
Utility Easements That Are Obsolete.
The lack of a sub-network of utilities is evidenced by the limited pattern of easements to directly serve different users. Because of the lack of interior public rights-of-way, the patterns for utility easements are not well defined or coordinated.
Deleterious Land Use And Layout.
The past modes of transport importance (canal and rail) have shaped the patterns of land use and layout. Therefore, a conflict exists between these past patterns and the requirements of future developments based on the importance of the location of the R.P.A.
Land Use Characteristics That Are Deleterious.
When current zoning ordinance performance standards are considered, there are some inconsistencies within the R.P.A. One example is the candy company which has an oil tank farm and building material yard for neighbors. With proper guidelines, these types of uses can be organized within any R.P.A But, the oil tanks came as a result of the importance of the Canal and the candy company came (and wants to expand) because ofthe expressway access. The potential of the expressway will continue to attract users similar to the candy company, and thereby add to the existing conditions of deleterious land use relationships.
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The inactivity of the Collateral Channel also involves concerns that were mentioned as early as 1966 in the Mid-Chicago Economic Development Study. The report specifically mentions the limited use of the Collateral Channel and concerns of stagnant water, dumping, water level, circulation and insufficient dredging. Today, the channel is still largely inactive and the concerns mentioned 25 years ago remain valid.
Another facet of the deleterious land use focuses on the environmental assessments for various properties in the area. One area of particular concern is the evidence of oil leaching into soil on City-owned land adjacent to the candy company. Many of the users from the Canal or railroad era tended to store raw bulk materials in either yards or tanks. Many of these materials have a tendency to have environmental hazards, which vary in intensity, degree and regulatory clean-up required. This creates a deleterious setting for any potential future land uses.
Layout Characteristics That Are Deleterious.
The layout of improvements developed over a long period of time and paralleled specific periods of transportation modes. From Canal to rail to expressway, the improvements reflect the specific nature of the dominant mode. The linear pattern of the canal and railroads were duplicated by the construction of the expressway. However, as this evolution took place, the mode of transport became more interactive. Access for barges was limited to the banks of the Canal or Collateral Channels, while rail car access was slightly greater with the positioning of rail spurs. Truck accessibility on the other hand extends beyond the fixed rights-of-way of the expressway to primary roads, secondary streets and alleys and individual sites. Preferential streets for truck traffic exists on one-mile streets without connection to other streets. However, since the area has no secondary streets or alleys, the layout within the R.P.A. is deleterious with respect to the interaction at the various places of access.
Many of the area's larger parcels not only have limited road frontage, but it is often located near bridges, overpasses or viaducts. This is especially apparent at properties along Kedzie and California Avenues, which are adjacent to the Canal, the railroads and/or the expressway. This layout creates access points that are prone to accidents. As the City of Chicago's Railroad Viaducts Vertical Clearance Improvements report points out, between 1986 and 1988, the Kedzie Avenue project area had an accident rate that was nearly 70 percent greater than the City average and was "considered an accident cluster site".
The improvements have not kept pace with the evolution and development of the expressway. Today, the sub-set of primary, secondary and tertiary improvements do not reflect the fact that the expressway is the dominant mode of transport, and ignore the interactive relationships transportation.
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Not only is this true for public improvements, but it is particularly evident with respect to truck access, loading dock and employee parking layouts on individual parcels of land. Additionally, the R.P.A. is laced with several similar or paralleled rail lines that hinder the layout of land for today's industrial users. Rail consolidation might serve to modify this blight characteristic.
Existing parking lots are afterthoughts of each user and occur only in those instances when a tract of land becomes vacant. Segregated loading dock areas of adequate size are sparse within the R.P.A The inadequacy or lack of a sub-roadway system makes it next to impossible to serve parking or truck areas. This fragmented condition of layout with respect to truck or auto access creates a condition of deleterious layout.
Parcel Specific Evidence.
The Campbell Soup Company has characteristics of deleterious layout particularly with respect to the fragmented evolution of the construction of the complex's structures and improvements. This is evidenced by the several different structural characteristics of the distinct generations of buildings. The early buildings are multi-story with large floor plates, tight column spacing, and low ceiling heights. Multi-storied buildings were added, continuity was maintained by allowing the same column spacing and ceiling heights. The floor plates were specifically shaped to a particular manufacturing process. The more recent additions have been single story structures with large column spaces and high bay ceiling heights.
Depreciation Of Physical Maintenance.
Depreciation of physical maintenance was present throughout Primary Tracts 1 and 2. Site improvements, including streets, curbs, sidewalks, driveways, and parking lots, suffered from a deferment of upkeep. This was variously evidenced by cracks and potholes in streets, sidewalks, driveways, and parking lots; by rusting, bent over fences; by partially paved parking lots and driveways with standing water; by chipped curbs (also missing sections at times) and by overgrown vegetation. Primary Tract 3 is vacant; as such there are no significant site improvements.
Depreciation of physical maintenance was also found to be present in structures. In Primary Tract 1, approximately 7 out of 14 buildings (50%) and in Primary Tract 2, approximately 17 buildings out of 22 (77%) were found to have depreciation of physical maintenance. (In addition, there were a number of sheds, ancillary buildings and fuel storage tanks which also exhibited depreciation.) This was variously evidenced by peeling paint; need for tuckpointing; cracked and broken windows; window frames in disrepair
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or missing; graffiti; missing, ripped out wiring; rusting exterior pipes; cracks in bricks and cracks in mortar between bricks at times resulting in the shifting of sections of brick walls; chipped and/or buckling lintels; buckling brick facade, especially above windows where support is weaker; broken, bent doors; collapsing overhangs and interconnecting walkways.
Inadequate Utilities.
The existing water, sanitary, and storm sewer network that services that area is inadequate.
Utility characteristics that are obsolete and/or lacking:
The quality of the utility service in the R.P.A. is inadequate, specifically as it relates to the following issues:
Distribution Of Water And Sewer Mains.
Because of the absence of secondary streets and alleys, the distribution of sewer and water mains is limited to the primary quarter section streets previously mentioned in this report.
Water Service And Sewer Drains.
Instead of the branch services being part of an organized and flexible utility network, these branches are on private property and arranged to serve a specific user. Since the distribution of these branches are limited to the specific needs of the users, many of the larger parcels have limited services.
Mixed Storm And Sanitary Sewers.
Primarily due to the age of the sewer system, most of the storm and sanitary sewers are mixed. The capacity to meet current standards for separate storm and sanitary sewers is largely non-existent in the R.P.A.
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Utility Easements.
Partly because of the absence of secondary streets and alleys the area lacks clearly defined and coordinated utility easements. The utility services have patterns which address the specific requirements of each user, but have little planned potential or value for future needs.
Utility characteristics that have deteriorated.
Given the age of the infrastructure in the area, deterioration is a valid concern. In the context of historical use, this infrastructure served industries which had an intensity and by-products of use which could adversely affect the integrity of the systems.
The lack or deterioration of retaining walls and proper drainage at many points along the Canal edge, create excessive run-off, erosion, silt build-up and potential contamination ofthe waterway.
Excessive Land Coverage.
Properties in both Primary Tracts 1 and 2 exhibit an excessive amount of land coverage in relation to parking availability (off and on street) and loading provisions. Many of the buildings are situated near lot lines or occupy a significant portion ofthe lot.
The pragmatic issue of expansion space is an immediate concern which relates to excessive coverage. In the case of the Farley Candy plant on 31st Street, the building footprint covers nearly all of the site while the remainder of the property has been used for loading areas and has struggled to accommodate parking. Their need for space is increasing but their ability to do so is limited by their property line.
Excessive Vacancies.
The vacancies within the R.P.A exist primarily in Primary Tract 1, but are also present in Primary Tract 2. The 1,663,522 square foot Campbell Soup Complex, within Primary Tract 1, is substantially vacant. The four older buildings were vacated in 1988 and the power station has not been used since 1982. The fifth building, the new warehouse, is only partially occupied. Primary Tract 2 has scattered vacancies. Some of the structures owned by the City stand empty. It also appears that the building formerly occupied by American Roofers (Primary Tract 2) is substantially vacant. As
3334 JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
noted above, many of these vacant buildings have not been properly maintained and are in a state of disrepair, at times severe disrepair.
Structures Below Minimum Code.
The City of Chicago Inspectional Services report of April 4,1991 identified building code violations according to addresses from the Harris Data for the R.P.A. area. The concentration of major code violations are on the properties along 35th Street in Primary Tract 1. The violations include notices for boiler room, electrical and elevator inspections and cite pending court cases for these violations.
Age.
A majority of buildings within the R.P.A. are older, having been built prior to the construction of the Stevenson Expressway. It is estimated that at least 80% of the total buildings in the R.P.A. were constructed more than 35 years ago, and greater than 40% were constructed over 50 years ago. One structure reportedly dates back to the early 1800's, according to the current users.
Lack Of Community Planning.
The City's 1966 Comprehensive Plan and its 1967 Plan Summary and Development Area supplements generally identify the R.P.A. as suitable for industrial. Subsequently other plans have been prepared for the land within the R.P.A. or adjacent to it, but there is no clear direction to guide or coordinate the necessary infrastructure improvements with the requirements of existing and potential industrial users.
. These specific plans dealt with the area in a wide range of scenarios, varying from the Central Communities Area (Chicago 21 Plan) to the Mid-Chicago Economic Development Study (1966), but often resulted in conflicting and confusing policy which contributes to the blight. The primary weakness of these plans is that while they address characteristics of issues such as obsolescence and deleterious land use and layout, the means and methods of implementation that should be used to redevelop the area are not presented. The problems have therefore stayed and further manifest themselves over the years.
The lack of community planning exists in the failure to address how this land in the R.P.A., originally shaped by the Canal, can realize its potential in its relationship to today's dominant modes of transport. Additionally,
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community planning is lacking in its failure to recognize how the unique layering of all three dominant modes of transport, that not only serve but define the R.P.A., can be exploited to provide for flexible, economically beneficial development.
The community planning also lacks in the absence of coordination and communication between financial resources and plans, the planning documentation, comprehensive plans, economic development plans, or the zoning ordinance and the City agencies responsible for implementation, such as the Sewer and Water departments.
Unused Disposal Site.
A portion of the area in Primary Tract 3 consists of property bordering the Sanitary Drainage and Ship Canal. This property contains earth, stone, and building debris. Many of the visible piles/mounds appear to be present from "fly" dumping, or dumping near the existing rail rights-of-way. In addition, there are a number of abandoned automobiles, used tires, and other debris strewn throughout the site. The slope and gradient varies on the site -overall, the elevation is estimated to vary 20 to 30 feet above Kedzie Avenue (at grade) to the east, and slopes in relation to the western railroad property and the Canal.
Unused Railyard/Railroad Rights-Of-Way.
A portion of the area in Primary Tract 3 consists of property that once served as a rail right-of-way. An abandoned rail line exists from Hamlin Avenue to the western part of the primary tract. Further, older maps indicate that a number of spurs and/or switching lines once existed in this northwest corner of the tract. Cook County Assessor's data indicates that the railroad classification was removed in 1986. The property has been vacant since that time, based upon current inspections and review of aerial photos.
VII.
Overall Assessment Of Area Qualifications.
The primary cause of the R.P.A.'s stagnation relates to the interplay of a number of factors relating to its historical development. Its qualification for T.I.F. thus primarily and appropriately relies on area-wide factors.
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JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
The initial development was oriented toward shipping and railroad transportation, predating automobiles. The area, therefore, declined and stagnated as industry became heavily reliant on trucking.
As a result, the R.P.A. is characterized by obsolescence and deleterious land use and layout. Utilities systems are inadequate and require updating to modern standards. Furthermore, there is a shortage of parking for area workers due to excessive coverage ofthe land.
The overall decline has led to depreciation of improvements and buildings throughout the R.P.A Planning efforts to date have been generally ineffective because they were not implemented.
Individual buildings are older, many having been constructed prior to the 1950's, and are often obsolete; these two factors combine to produce excessive vacancies.
The vacant tracts of land generally have been subject to dumping, and contain abandoned railroad right-of-ways.
The R.P.A. as it exists today exhibits blighted characteristics which prohibit its redevelopment. The presence of the factors herein impairs the value of existing and new private investments thereby threatening the sound growth of the tax base of taxing districts in the area. The City's contemplated T.I.F. designation for the area is consistent with the intent of the T.I.F. legislation.
[Exhibit 1, Boundary Maps and Vicinity Map attached to this Appendix "A" constitute (Sub)Exhibits 2, 3, 4 and 5 attached to the Redevelopment Plan and Project and printed on pages 3347 through 3352 of this Journal.]
Exhibits 2, 3 and 4 attached to this Appendix "A" read as follows.
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REPORTS OF COMMITTEES
Exhibit 2.
(To Appendix "A" Beginning On Page 3316 Of This Journal)
Legal Description.
All that part of the southwest quarter of Section 25; the northeast quarter, the northwest quarter and the west half of the southeast quarter of Section 35; the north half, the east half of the southwest quarter and the southeast quarter of Section 36, all in Township 39 North, Range 13, East of the Third Principal Meridian, together with certain lots and blocks in Manchester, being Steele and Buchanan's Subdivision of that part of the east half of the northeast quarter of said Section 36, lying north of the Illinois and Michigan Canal according to the plat thereof recorded July 31, 1857; S. J. Walker's Subdivision of that part south of the canal of the northwest quarter of Section 31, Township 39 North, Range 14, East of the Third Principal Meridian, also that part south of the canal of the east half of the northeast quarter of said Section 36, according to the plat thereof recorded February 6, 1863; the Campbell Soup Company (Central Division) Subdivision of part of the northeast quarter of said Section 36, according to the plat thereof recorded May 23, 1930 as Document No. 10667452; the Campbell Soup Company's Subdivision of part of the northeast quarter of said Section 36, according to the plat thereof recorded July 24, 1957 as Document No. 16966716; and the Sanitary District Trustees' Subdivision of the right-of-way from the north and south center line of Section 30, Township 39 North, Range 14, East of the Third Principal Meridian, to the west line of Section 7, Township 38 North, Range 13, East of the Third Principal Meridian, according to the plat thereof recorded March 31, 1908 as Document No. 4180216, more particularly described as follows:
beginning at the intersection of the southerly line of the Sanitary Drainage and Ship Canal, being the southerly line of Water Lot "B" in the Sanitary District Trustees' Subdivision, aforesaid, with the west right-of-way line of the Pittsburgh, Cincinnati, Chicago & St. Louis Railway in the east half of the northeast quarter of said Section 36; thence southwesterly along the southerly line of said Sanitary Drainage and Ship Canal to the east line of California Avenue; thence north along the east line of California Avenue to the north line of 31st Street to the intersection ofthe northerly extension of a line drawn 667.24 feet east of and parallel with the west line of the northwest quarter of said Section 36; thence south along said parallel line and its northerly extension to the northerly line of the Chicago & Indiana Western Railroad right-of-
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JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
way; thence southwesterly along said northerly right-of-way line to the west line of Kedzie Avenue; thence south along the west line of Kedzie Avenue to the southerly right-of-way line of said Chicago & Illinois Western Railroad; thence west along said southerly right-of-way line to the west line of the east half of the northeast quarter of said Section 35; thence south along said west line to the southerly right-of-way line of the Illinois Central Railroad; thence westerly along said southerly right-of-way line to a point in a line 20 feet west of and parallel with the east line of the northwest quarter of said Section 35; thence south along said parallel line to the north line of the said Sanitary Drainage and Ship Canal, being the north line of Water Lot "E" in the Sanitary District Trustees' Subdivision, aforesaid; thence northeasterly along said northerly line to the west line of Kedzie Avenue; thence south along the west line of Kedzie Avenue, a distance of 258 feet to the south line of said Water Lot "E"; thence northeasterly along the southerly line of Water Lots "E" and "D" in said Sanitary District Trustees' Subdivision to its intersection with the west line of the Illinois Central Railroad right-of-way; thence southeasterly along said westerly right-of-way line to the east line of the west half of the northwest quarter of said Section 36; thence south along said east line to the southerly right-of-way line of the Atchison, Topeka & Santa Fe Railway; thence northeasterly along said southerly right-of-way line to the west line of California Avenue; thence south along the west line of California Avenue to the south line of 35th Street; thence east along the south line of 35th Street to the west line ofthe Pittsburgh, Cincinnati, Chicago & St. Louis Railway right-of-way; thence north along said westerly right-of-way line to the point of beginning, in Cook County, Illinois.
Exhibit 3.
(To Appendix "A" Beginning On Page 3316 Of This Journal)
Illinois Tax Increment Financing Blight And Conservation Factors Improved Areas.
Block/Primary Tract Number Number of Buildings Number of Parcels
1 14 37
2 22 28
Summary 36 65
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REPORTS OF COMMITTEES
21
29/36
Age.
Number of Buildings 35 years or Older
17
24/36
Area Wide
100%
Decline of Physical Maintenance.
- Number of Buildings
Evidencing
- Number of Parcels with
Site Improvements Evidencing
Deterioration.
- Number of Buildings
Evidencing
- Number of Parcels with
Site Improvements Evidencing
Dilapidation.
- Number of Buildings
- Number of Parcels with
Site Improvements Evidencing
Area Wide
100%
Obsolescence.
- Number of Buildings
- Number of Parcels with
Site Improvements Evidencing
6.
5 8/36
3
Number of Buildings Below Minimum Code.
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JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
Number of Buildings Lacking Ventilation, Light, or Sanitation Facilities.
0
- 7/36
Area Wide
- 100%
100%
- Area Wide
Area Wide
- 100%
8. Number of Buildings with Illegal
Uses.
- Number of Buildings with
Excessive Vacancies.
- Number of Buildings that
are Abandoned.
- Percentage of Block/Tract with
Excessive Land Coverage.
- Percentage of Block/Tract with
Overcrowding of Structures.
- Percentage of Block/Tract with
Inadequate Utilities.
- Percentage of Block/Tract with
Deleterious Land Use or Layout.
- Percentage of Block/Tract
Suffering from Inadequate Community Planning.
Vacant Area
- Yes
A. Block/Primary Tract Number
- No Buildings and Has Not Been in Agricultural Production in the Last 5 Years and is Not in an Industrial Park Conservation Area and Has Not Been Subdivided.
- Suffers from Obsolete Platting.
- Diversity of Ownership.
- Tax/Special Assessment Delinquencies.
- All or Part Subject to Flooding.
7/24/91
REPORTS OF COMMITTEES
- Adjacent Areas Have Deteriorating Structures or Site Improvements.
- Immediately Prior to Becoming Vacant, Qualified as a Blighted Improved Area.
- Wholly or Partly an Unused Quarry or Quarries.
- Wholly or Partly Unused Railyards, Railtracks or Railroad Rights-of-Way.
9. Suffers from Chronic Flooding which Affects Real Property in the Area and Such Flooding is Substantially Caused by Improvements in the Proximity in Existence for at Least 5 Years.
-
- Unused Disposal Site Containing Earth, Stone, Building Debris or Similar Material from Construction, Demolition, Excavation or Dredge Sites.
- Qualifies as Blighted Because it has at Least
Two of Factors 1 ~ 5 and Response on Line B is Yes.
- Has at Least One of Factors 6 - 10 and the Response on Line B is Yes.
Exhibit 4.
(To Appendix "A" Beginning On Page 3316 Of This Journal)
Building Survey Methodology.
Building Condition Review, (provided by Chicago Associates Planners and Architects)
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JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
Depreciation of Physical Maintenance, Deterioration, and Dilapidation Factors were reviewed in a sequential manner.
Sequential in that depreciation leads to deterioration leads to dilapidation. Depending on the component of the structure involved the structure can show evidence of all three factors.
Example:
Depreciation: Wood trim at windows, doors and eaves shows evidence of peeling paint.
Deterioration: Gutters are hanging loose and connection between gutter and downspout are rusted away.
Dilapidation: Foundation wall and masonry wall above are cracked and pushed out of alignment causing the roof structure to sag and be displaced.
1. Depreciation Of Physical Maintenance.
Focus on deferred maintenance and the lack of maintenance of buildings, improvements and grounds consists of the following:
A. Building.
1.
Unpainted or unfinished surfaces.
2.
Paint peeling.
3.
4.
Loose or missing materials.
Sagging or bowing walls, floors, roofs, and porches.
5.
Cracked or broken windows.
6.
Loose gutters or downspouts.
7.
Loose or missing shingles.
8.
Damaged building areas in disrepair.
B.
Front Yards, Side-Yards, Back Yards And Vacant Parcels.
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- Accumulation of trash and debris.
- Broken sidewalks.
- Lack of vegetation.
- Lack of paving and dust control.
- Potholes.
- Standing water.
- Fences in disrepair.
8. Lack of mowing and pruning of vegetation.
- Streets, Alleys And Parking Areas.
-
- Potholes.
- Broken-up or crumbling surfaces.
- Broken curbs and/or gutters.
- Areas of loose or missing materials.
- Standing water.
- Is it unsightly?
- Is it a health and safety problem?
2. Deterioration.
Focus on physical deficiencies or disrepair in buildings or site improvements requiring treatment or repair.
A. Deterioration of Buildings.
Buildings with Major Defects in the:
JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
- Secondary Building Components.
-
- Doors
- Windows •
- Porches
- Gutters
- Downspouts
- Fascia materials
- Major Defects In Primary Building Components.
- Foundations
- Frames
- Roofs
All buildings and site improvements classified as dilapidated would also be deteriorated.
Deterioration Of Surface Improvements.
The conditions of roadways, alleys, curbs, gutters, sidewalks, off-street parking and surface storage areas may also evidence deterioration.
- Surface cracking.
- Crumbling.
- Potholes and depressions.
- Loose paving materials.
- Weeds protruding through the surface.
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REPORTS OF COMMITTEES
C. General Economic Considerations.
- Decline in quality of structure due to misuse, lack of maintenance, lack of investment, or age;
- Low property values compared with other similar property in the municipality; and
- Current land value with building is close to or below land value without building.
3. Dilapidation.
Focus on an "advanced" state of disrepair of buildings or improvements or the neglect of necessary repairs, showing evidence that the building or improvements are falling into a state of decay.
- Primary structural components (roof, bearing walls, floor structure, and foundation).
- Building systems (heating, ventilation, lighting, and plumbing).
- Secondary structural components in such combination and extent that:
- Major repair is required.
- The defects are so serious and so extensive that the buildings must be removed.
-
- Removal of the building is an option that is economically superior to almost any type of rehabilitation.
- Cost of repairs would be high especially when compared to return on investments.
- Safe use ofthe building is seriously impaired.
Building Age was determined through the review of City of Chicago data provided by the Department of Housing (Harris data).
7/24/91
3346
JOURNAL-CITY COUNCIL-CHICAGO Exhibit "C".
7/24/91 REPORTS OF COMMITTEES 3347
(Sub)Exhibit 2 to Redevelopment Plan and Project.
3348 JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
(Sub)Exhibit 3 to Redevelopment Plan and Project.
7/24/91 REPORTS OF COMMITTEES 3349
(Sub)Exhibit 4 to Redevelopment Plan and Project.
3350 JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
(Sub)Exhibit 5 to Redevelopment Plan and Project.
7/24/91 REPORTS OF COMMITTEES 3351
Exhibit 1 to Appendix A.
3352 JOURNAL-CITY COUNCIL-CHICAGO 7/24/91
Vicinity Map to Appendix A,
. . = . PUasH