We've been closely tracking the building momentum among some of the Chicago's aldermen in favor of reforming Mayor Daley's opaque tax increment financing (TIF) system. During her appearance on Fox's Good Day Chicago last week, Ald. Helen Shiller (46th Ward) explained why untangling TIF details is so complicated. She further noted that, until a citywide transparency ordinance is passed, she plans to "experiment with ... trying to get all of the information, all of the legislation, from the TIFs in my ward, for instance, on our website." Watch it (the TIF discussion starts at the 2:20 mark):
While she may not be a fan of a separate proposal to expand the reach of the city inspector general, it's worth noting that Shiller is now the third alderman (of the 10 interviewed so far as part of FOX's ongoing series) to address TIF transparency. Of course, Shiller's taken some heat from some of her own constituents who are suing to put the breaks on the Wilson Yard TIF project, which they contend has been shrouded by insider deals and secrecy. (Incidentially, Wilson Yard has also been lauded by TIF critics as offering some of the most generous community benefits.) Shiller's experience in Uptown provides a perfect example for why making the information accessible from the start is good public policy.
Comments
Chris "Big City" Caputo (not verified) on Mon, 03/23/2009 - 18:11
Angela nice article. It makes a lot of sense. The information is good to know even from the East coast
WindyCityEagle (not verified) on Tue, 03/24/2009 - 06:04
You mention that the Wilson Yard TIF has been lauded as "providing community benefits", but that is completely irrelevant. The purpose, and funding argument, behind a TIF is the idea that an area would not begin development "but for" the use of TIF funds. Since the TIF money kicks off growth in an area, its reasonable to divert future tax revenues to pay for the original TIF investment.
Since I live in Uptown(three blocks from Wilson Yard), I can tell you that the area in question is already growing just fine and does not need an infusion in capital. Alderman Shiller's use of TIF dollars is simply pulling money that would have gone to local schools and social services and diverting them to a project for her own good. The "community benefit" that she's providing is public housing at a cost of 449K per unit. I'm many readers of this blog would love to have someone build them a 449K house.
So in the end, this is a trade off, 449K condos for the poor, but less money for the local schools.
Chuck (not verified) on Tue, 03/24/2009 - 08:34
Windy City Eagle, just to clarify for folks, this 449K "cost" per unit is the price tag just to build each condo unit, that is NOT the price it would sell for should it be sold at market value, which is the price any home buyer would pay. These units would need to be sold for close to one million dollars each to make this project profitable. So we are really building 750K condos for people that, not only won't be paying a dime for them, but willl also be on the public dole in some form of welfare. They will be living in units with price tags rivaling the most expensive in the gold coast with no responsibility to pay for it. All because Helen thinks there's not enough poverty in Uptown.
Anonymous (not verified) on Tue, 03/24/2009 - 15:17
Once again, reporting by Angela Caputo just isn't supported by the facts.
Ms. Caputo writes this...
(Incidentially, Wilson Yard has also been lauded by TIF critics as offering some of the most generous community benefits.)
She links to Ben Joravsky's 12/11/2008 Chicago Reader article about the Fix Wilson Yard lawsuit. But this is how Ben decribes the Wilson Yard TIF.
I have to say the fight is against one of the few TIFs that might actually benefitsomeone other than the mayor and well-connected developers.
Ms. Caputo translates the word 'might' into the notion 'it will'.
Ben continues and the closest he comes to "lauding" the Wilson Yard TIF is when he compares it to something awful.
Measured against these inside deals and boondoggles, the $62 million in TIF money earmarked for Wilson Yard—even if it is way up from the original allotment of $26.5 million—looks like a noble expense.
This isn't reporting. This is opinion.
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