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OFFICE OF THE MAYOR
CITY OF CHICAGO
LORI E. LIGHTFOOT
MAYOR
January 15,2020
TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO
Ladies and Gentlemen:
At the request of the Commissioner of Planning and Development, I transmit herewith an ordinance authorizing an amendment to the spending authorization for the Neighborhood Opportunity Fund and associated program enhancements.
Your favorable consideration ofthis ordinance will be appreciated.
Very truly yours,
ORDINANCE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. The header of Chapter 16-14 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:
CHAPTER 16-14
NEIGHBORHOODS NEIGHBORHOOD OPPORTUNITY FUND ORDINANCE
SECTION 2. Section 16-14-010 of the Municipal Code ofChicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:
16-14-010 Title.
This chapter shall be known and cited as the ''Neighborhoods Neighborhood Opportunity Fund Ordinance."
SECTION 3. Section 16-14-020 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:
16-14-020 Definitions.
For purposes of this chapter, the following definitions shall apply:
"Commissioner" means the commissioner of planning and development Commissioner of Planning and Development.
"Department" means the department of planning and development Department of Planning and Development.
"Group I Award" means, with respect to an individual development project funded under this chapter, a grant in an aggregate amount of $250.000.00 or less.
"Group 1 Program Funding Limit" has the meaning ascribed to that term in subsection (d) of Section 16-14-080.
"Group II Award" means, with respect to an individual development project funded under this chapter, a grant in an aggregate amount in excess of $250.000.00.
"Qualified investment area" means any area in the City designated by the commissioner Commissioner as a low-moderate income area pursuant to published data on areas of concentrated disadvantage published by the United States Census Bureau.
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"Training costs" means the costs of business incubation, mentoring and training within the meaning of subsection (c) of Section 16-14-060.
SECTION 4. Section 16-14-030 of the Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:
16-14-030 Neighborhoods Neighborhood Opportunity Fund.
A separate fund is hereby established and designated the Neighborhoods Neighborhood Opportunity Fund into which 80% ofthe funds collected from any downtown floor area bonus under Sec. 17-4-1000 ofthis Code will be deposited. The revenues of the Neighborhoods Neighborhood Opportunity Fund, including without limitation any amounts repaid, returned or recaptured under a Group I Award or Group II Award, shall be reserved and utilized exclusively in accordance with this chapter.
SECTION 5. Section 16-14-040 of the Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:
16-14-040 Purpose.
The purpose of the Neighborhoods Neighborhood Opportunity Fund is: (Omitted text is unaffected by this ordinance)
SECTION 6. Section 16-14-050 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:
16-14-050 Qualified investment areas.
The Neighborhoods Neighborhood Opportunity Fund shall be used for projects located in or directly benefiting qualified investment areas. The commissioner Commissioner shall publish a map of qualified investment areas and update the map at least once every five years.
SECTION 7. Section 16-14-060 ofthe Municipal Code ofChicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:
16-14-060 Authorized uses.
s
The following uses are authorized uses ofthe Neighborhoods Neighborhood Opportunity
Fund:
(a) commercial establishments that provide, on a permanent or short-term (pop^up) basis, goods and services which complement and revitalize the areas in which they are located.
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and which may include, without limitation, grocery stores, retail establishments, and restaurants that sell food primarily for consumption on premises;
cultural establishments that provide, on a permanent or shorMerm (pop-up) basis, recreational and educational opportunities which complement and revitalize the areas in which they are located; and
incubation, mentoring, and training of small businesses that otherwise qualify as authorized uses under subsections (a) or (b) above of this section.
SECTION 8. Section 16-14-070 ofthe Municipal Code ofChicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:
16-14-070 Eligible costs.
The Neighborhoods Neighborhood Opportunity Fund may be used for the following costs when they such costs arc necessary or desirable for, or in support of, one or more authorized uses:
(Omitted text is unaffected by this ordinance)
(b) costs to plan, design, and construct new buildings, not to exceed 50% of total project costs for a Group 1 Award or 30% of total project costs for a Group II Award; >
(Omitted text is unaffected by this ordinance)
training costs of business incubation, mentoring, and training programs under Sec. 16-14-060(c), provided that such training costs shall not exceed 5% ofthe Neighborhood Opportunity Fund; and
administrative, reporting, and monitoring costs and expenses ofthe Neighborhoods Neighborhood Opportunity Fund, provided such costs and expenses may not exceed 5% ofthe Fund.
SECTION 9. Section 16-14-080 ofthe Municipal Code ofChicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:
16-14-080 Administration.
(a) The department Department shall administer the Neighborhoods Neighborhood Opportunity Fund and all projects funded under this chapter. Any grant of funds for a private project in un aggregate amount in excess of $250,000.00 Fach Group II Award shall require eriy council Citv Council approval. The department Department may disburse individual grants in the amount of $250.000.00 or less Group 1 Awards through procedures established by rule, subject lo periodic city council authorization of program funding limits the Group I Program Funding Limit: provided, that at the request ofthe depart+Bent Department, such grants may be disbursed
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by the Commissioner of Business Affairs and Consumer Protection. The selection of projects will be informed by community-based planning processes, such as Chicago Neighborhoods Now. Priority will be given to commercial projects that:
(Omitted text is unaffected by this ordinance)
The commissioner Commissioner is authorized to enter into grant agreements and all other agreements and ancillary documents necessary to implement this chapter, to prescribe application forms and other forms necessary to collect relevant information concerning participants and projects utilizing the Neighborhoods Neighborhood Opportunity Fund, and to adopt such rules as the commissioner Commissioner may deem necessary for the proper implementation, administration, and enforcement of this chapter, including without limitation, rules setting forth criteria and guidelines for the selection of projects and disbursement of funds in a fair and equitable manner.
The commissioner Commissioner shall post on the department's Department's website an annual report detailing the receipt and expenditure of funds from the Neighborhoods Neighborhood Opportunity Fund.
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Subject to the availability of duly appropriated funds, the Group I Program * Funding Limit shall be $35,500,000.00 as of the effective date ofthis amendatory ordinance of 2020, unless such amount is increased or decreased by appropriate action of the Citv Council.
SECTION 10. This ordinance shall take full force and effect upon its passage and publication.
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