TIF Dwellers:

Living and Doing Business in Tax Increment Financing Districts

Week 12: “A Call to Action”
August 27, 2007

Meeting Notes and Recommendations for Future Action

Purpose of the Meeting Series

The City of Chicago Department of Planning and Development, in cooperation with 24th Ward Alderman
Michael D. Chandler, and 22nd Ward Alderman Ricardo Munoz, scheduled a public meeting to discuss the
proposed Ogden Pulaski Tax Increment Financing (TIF) district, on April 23, 2007. The meeting was
cancelled due to a change in leadership in the 24th Ward.

A group of North Lawndale residents, including Joe Ann Bradley, Valerie F. Leonard, Eric Strickland and
Thomas Worthy, provided the initial framework within which to begin to educate other residents on the pros
and cons of TIF districts. The group thought it best to work with existing organizations initially, and to allow
meeting participants to decide the next steps after the 5-week education period was completed.

TIF Dwellers: Living and Doing Business in Tax Increment Financing Districts (TIF’s) was developed to
educate North Lawndale stakeholders on the process of creating TIF districts and to explore the potential
impact upon local homeowners and small businesses.

The Lawndale Business and Local Development Corporation (LBLDC), Community Action Group (CAG)
and Valerie F. Leonard, partnered to convene a broad cross section of North Lawndale residents and
stakeholders in discussions around the City of Chicago’s proposed plan to establish a tax increment
financing district with approximate boundaries of Grenshaw to the north; Albany to the east; 24th Street to
the South and Kenneth to the west. According to City Officials, this area is 876 acres, and includes 5,900
tax parcels, 3,900 buildings and 8,278 occupied units (households). This author believes that the 5,900
parcels do not include City owned properties, or parcels that are tax-exempt. Assuming an average of 4
persons per household, it is believed that over 30,000 persons could be impacted. Further clarification is
required.

The series drew upon expertise of North Lawndale residents, public officials and lessons learned from other
communities to begin to explore ways in which community stakeholders, community development
organizations, elected officials and Chicago Department of Planning representatives may work together to
create a shared vision for sustainable development in the community.

As a result of the 5-week series, meeting participants have requested that the group continues to meet at
least monthly, and begin to develop a shared community vision for holistic community development in North
Lawndale. As of August 28, there have been 12 general meetings, and 2 committee meetings to discuss
the reinstatement of the Lawndale Community Conservation Council. Meeting participants were surveyed
to get a sense for their respective knowledge of the TIF process and vision for community development in
North Lawndale. The 5-week series also served as a catalyst for the planning of the North Lawndale
Chamber of Commerce.

This work has also attracted the attention of John Hagedorn, PhD, a tenured professor at the University of
Illinois Great Cities Institute. Members of Dr. Hagedorn’s class on social responsibility are following the
socio-economic changes in North Lawndale, and getting a sense of how those changes are impacting local
residents. Members of the class have begun to attend TIF Dweller’s meetings and assist in gathering data
that will further assist local residents in making informed decisions concerning local development; and to
help frame public policy as it relates to local participation in community development decisions.

The City of Chicago Department of Planning and Development, in cooperation with Alderman Sharon D.
Dixon, and Alderman Ricardo Munoz held a public meeting on July 24, 2007 to present the proposed
Ogden-Pulaski TIF to local residents and other stakeholders. They provided an overview of the TIF
process, the next steps in the approval process and opened the floor to questions from community
residents. Detailed notes from this meeting are being prepared. It is estimated that over 300 people were
in attendance.

Local residents met again on July 30, 2007 to reflect on the outcome of the July 24th meeting. One of the
key outcomes of this meeting was the creation of the Lawndale Alliance, a group of Lawndale stakeholders
who have come together to improve the social and economic conditions in Lawndale by promoting
increased community participation, education, resident leadership, and holistic community and economic
development. To date, the group consists of approximately 100 members representing block clubs,
individual property owners, local business owners, churches, schools.

The sections that follow are based upon input from meeting participants, survey results and feedback from
the City’s public meeting on the Proposed Ogden-Pulaski TIF.

Acknowledgements

We thank the following persons for making this series possible: Asma Ali of the University of Illinois-Great
Cities Institute; Frank Bass of the 4100 West 21st Place Block Club; Mary Bonome of the City of Chicago
Department of Planning and Development; Willie Mae Bowling of the Southwest United Block Club
Council;Joe Ann Bradley of the Community Action Group;Mark Carter of VOTE; Cook County Board of
Review; Margaret Davis of the Chicago Chapter-National Black Nurses’ Association; Sgt. Gabriel Flores of
the 10th District Police Station; Roena Gill of the 4000 West Cermak Block Club; Dorothy Goldsmith of the
Lawndale Neighborhood Organization; Drew Goldsmith of the 1900 South Avers Block Club;Jean Guyton
of the 4100 West 21st Place Block Club; John Hagedorn of the University of Illinois-Great Cities Institute
and his class on social responsibility; Derrick Harris of the Lawndale LSC Federation; Latrice Harris of the
4200 Block of Cermak Road; Joe Hoereth of the University of Illinois at Chicago-Great Cities Institute;
Members of In the Loop Listserv; John Paul Jones, Friends of the Parks; Bernita Johnson Gabriel of the
Quad Communities Development Corporation; Lawndale Community Residents/Stakeholders; Jacqueline
Leavy, formerly of Neighborhood Capital Budget Group; Theodis and Essie Leonard; Valerie F. Leonard,
Community Development Consultant; Isaac Lewis of the North Lawndale Community News; Otis Monroe of
the Monroe Foundation; Samuel Muhammad of the North Star Mission; Shirley Newsome of the Kenwood-
Oakland Community Conservation Council; North Lawndale Community News; North Lawndale Online;
Wanda Perry of Lawndale Business and Local Development Corporation; Pastor David Pope of Brotherly
Love MB Church; Nicole and Cedric Pope of Build Today Lead Tomorrow; Pastor Charlotte Rolling of the
Freedom International Outreach Ministry; Cook County Commissioner Mike Quigley; Tanya Sanders of the
University of Illinois-Great Cities Institute; Rev. Lincoln Scott of the House of Prayer; Zina Simmons of the
4000 West 21st Street Block Club; Mahaley Somerville of ACORN; Cook County Commissioner Robert
Steele; Eric Strickland of the Lawndale Business and Local Development Corporation;Tiffany Strong of the
1500 South Tripp Block Club; Gladys Woodson of the 4200 West 21st Place Block Club;WNLO
Radio;Thomas Worthy of Citizens for a Better 24th Ward
Attendance

There were about 150 North Lawndale stakeholders in attendance, including residents, representatives
from nonprofit organizations and potential investors.

Meeting Summary

The theme for the meeting was “A Call for Action”. Opening remarks were offered by Rev. Mitchell Scott in
the absence of Pastor Lincoln Scott. He also provided the opening prayer.

Valerie F. Leonard, Community Development Consultant, provided a status report. Ms. Leonard indicated
that the Lawndale Alliance is in the process of creating 2 legal entities: A civic organization with a mission
of improving the quality of life for North Lawndale residents through advocacy and capacity building; and a
political action committee to address community issues through political strategies.

Ms. Leonard summarized the meeting of August 20, 2007. Representatives from the City of Chicago
Department of Planning were on hand to answer questions regarding the community’s concerns regarding
the proposed Ogden-Pulaski TIF.

Ms. Leonard indicated that the Community Development Commission has pulled the original
redevelopment plan for the Proposed Ogden-Pulaski TIF to make changes. As a result, the plan will not go
to the Joint Review Board on September 7, 2007 as planned. Nor will it go to the CDC for a public hearing
on October 9th as planned. If the changes are made by August 31, 2007, the plan would be re-introduced
to the CDC at its September meeting; sent to the Joint Review Board for its October meeting; and sent to
the CDC for a public hearing during its November meeting. At this rate, the redevelopment plan could be
ratified by City Council in December, 2007 or January 2008. It is not clear what changes would be made to
the plan.

Ms. Leonard provided the report for the Lawndale Community Conservation Council in Drewone
Goldsmith’s absence. Ms. Leonard provided a general overview of the Conservation Council, including its
history, boundaries, and the fact that it was disbanded several years ago. Ms. Leonard indicated that
Alderman Sharon Dixon has not responded to the Alliance’s request to re-instate the Lawndale
Conservation Council. The enabling legislation that created the Council is due to sunset in April, 2008. The
Alliance is currently preparing petitions to put advisory referenda on the ballot for the February primary
election concerning the Conservation Council, TIF Advisory Council and Community Benefits Agreements.
The petitions will be ready for the next TIF meeting, which is scheduled for September 10, 2007.

Ms. Leonard provided the report for the University of Illinois in the absence of Asma Ali, a doctoral
candidate. Ms. Leonard indicated that the University of Illinois is assisting the North Lawndale Alliance in
the mapping of the North Lawndale community. The purpose of the mapping project would be to engage
North Lawndale residents in identifying planned commercial and residential developments throughout the
community; to identify gaps in services; and to begin to develop plans to fill the unmet needs. The Alliance
needs 75-150 volunteers to complete the project over three Saturdays, from September 8, 2007 and
September 22, 2007. September 29th would be set aside in the event the project takes longer than three
Saturdays.

Joe Ann Bradley invited meeting participants to attend Mayor Daley’s Budget hearing on August 28, 2007,
at the Department on Aging. She encouraged the group to prepare comments on things that they may find
of particular concern, such as sidewalks that need repairing, trees that need trimming, etc. She also
encouraged the group to use the Budget hearings as an opportunity to highlight the fact that we need a
Conservation Community Council and TIF Advisory Councils.

Brother Samuel invited members of the Alliance to sign up to become deputy registrars. He indicated that if
we could get 35 residents to sign up, the class could be held in the community, as opposed to going
downtown. We have 32 residents to sign up to date.

In the interest of time, the discussion on membership was tabled until the next meeting.

Ms. Willie Mae Bowling, President of the South West United Block Club Council, provided an overview of
the organization, which is an association of block clubs throughout the North Lawndale community. She
provided examples of how the group has been effective at addressing issues that may otherwise go
unnoticed by people in power. (Two notable examples that were not mentioned in the meeting include
attacking the Silver Shovel issue, and addressing the need to repair the Blue Line). Ms. Bowling offered
Southwest United Block Club Council’s assistance to develop block clubs, write letters on behalf of
residents, and to be of assistance any way possible. Ms. Bowling and the Southwest United Block Club
Council will head the Block Club/Beautification Committee for the Alliance.

Brother Samuel provided an overview of the Work Now program, in which local residents will be screened
for employment and matched with prospective employers. Their information will be kept in a data base,
and an employment fair will be held this fall. Brother Samuel may be reached at 773-522-7610 for further
questions.

A collection was raised to offset general operating expenses (which have exceeded $1,500 over the past
12 weeks). Ms. Leonard indicated that an initial collection of $305.00 was raised at the August 13th
meeting. She said that she would give a full financial report at the September 10th meeting.

After the old and new business were finished, Joe Ann Bradley indicated that she would be running for 24th
Ward Committeeman. A number of meeting participants expressed interest in volunteering for her
campaign.

Issues

The open discussion among the audience and panel members revealed a number of issues of concern that
should be addressed through ongoing discussions among community stakeholders and elected officials.
These issues should be looked at on a cumulative basis, and include issues raised during the past 12
weeks.

1) The proposed redevelopment plan (housing impact study) indicates the potential displacement of
1,200 people.

2) Lack of opportunity for African Americans from North Lawndale to work as developers or laborers
on construction sites in their own community

3) The fact that TIF dollars generated in one community may be used to fund projects in other
communities in other areas of the city, even downtown.
 4) Except for some homeowners who qualified for façade improvements under the Greystone
Initiative, most local residents do not benefit directly from TIFs. At the same time, their tax dollars
are being used to subsidize large developments.

5) Need to advocate for policies that create an environment in which local residents and small
business owners may take advantage of the opportunities that the TIF would bring

6) When tax assessments go up, incremental taxes generated within the TIF stay in the local district.
Money that could be used to fund public schools, neighborhood parks, and Cook County Hospital
is being used to promote development.

7) Need to increase skill level of North Lawndale residents and businesses so they may take
advantage of opportunities in the TIF

8) Need to expand the base of community stakeholders who participate on panels and attend TIF
Dwellers meetings.

9) Need to engage Alderman, City departments and sister agencies in the conversations.

10) Need to develop a more formalized mechanism within which to focus discussions.

11) We are still in a enterprise community- The federal designation for enterprise/empowerment
community has expired. It ran from 1994-2004. There is an enterprise community designated by
the State of Illinois. We need a better map of all TIF districts. Commissioner Quigley said we can
get copies from his office.

Recommendations

1) Research redevelopment plans, budgets and historical trends in hiring for North Lawndale-based
TIF districts. Identify barriers and opportunities for hiring and training of current North Lawndale
residents. Work with local employers to increase number of North Lawndale employees.

2) Research state code and city ordinances governing TIF spending. Advocate for dollars generated
by local TIF areas to stay in the TIF district that generates the dollars. Advocate for bond financing
and other up front capital to fund newly-created TIFs until they generate sufficient tax revenues to
be self-sustaining.

3) Manage expectations regarding direct benefits to local residents. Of an estimated 5,900 property
owners that are located within the proposed boundaries of the Ogden-Pulaski TIF, it is likely that
fewer than 100 would be able to receive direct benefits through home improvements. TIF dollars
for home improvements should be leveraged with other City programs and contributions from
developers wishing to receive TIF funds or other incentives.

4) The community and City officials should work together to explore creative ways to provide benefits
that would impact a greater number of residents. For example, if education at our traditional public
schools could be considered workforce development under the laws that govern TIF districts,
provision for school improvements and curriculum enhancements should be made in the budget for
the proposed Ogden-Pulaski TIF. Similar treatment should be given for issues surrounding
technology training to eliminate the Digital Divide.
 5) Special emphasis should be placed on programs that build residents’ capacity to take advantage of
the TIF, including job training, education and small business development.

6) Allocate a portion of dollars generated by the proposed Ogden-Pulaski TIF for maintenance and
capital improvements of the local parks within the district. This should not be limited to
improvements to Douglas Park related to Chicago’s bid for the Olympics.

7) Research current trends in community development in North Lawndale. This includes reviewing
progress made in existing TIFs within the community; evaluating the proposed Ogden-Pulaski TIF
and knowing who is sponsoring its creation; learning more about the proposal to host Olympic
swimming events at Douglas Park; looking at trends in student academic performance, school
closings and plans for new schools; reviewing historical trends in City land sales; and researching
proposed developments in the area. Community residents and City officials should work together
to identify opportunities for community-driven development that fits within or builds upon existing
plans, such as the New Communities Plan.

8) In the interim, develop a taskforce and committees to carry out the work, regardless of whether or
not any formal TIF oversight committees are developed.

9) We need to establish a conservation council to look at the developers coming into the ward. We
will learn from the Kenwood- Oakland people at the next meeting

Next Steps

1) Provide residents with more information on TIF-funded programs provided by NHS

2) Broaden the discussion to include renters, business owners, public officials and churches.

3) Continue meeting and organizing beyond 5-week series.

4) Conduct Town Hall Meeting on TIFs

5) Organize community-based council to work with Alderman and Chicago Department of Planning to
bring about sustainable development that creates win-win situations between current community
residents and developers. The council should represent a broad cross section of the community
stakeholders and should include the homeowners, renters, business owners, design professionals,
representatives from schools, community-based organizations, the Chicago Park District and
Police Department. This council should be empowered to make recommendations to the Alderman
and Department of Planning and Development.

Respectfully Submitted,

Valerie F. Leonard
Community Development Consultant