Amendment No. 4 to proposed Pilsen Tax Increment Financing Redevelopment (TIF) Project and Plan regarding enlargement of project area and estimated redevelopment project costs
- Record number: F2023-112
- Type: Report; category: Tax Increment Financing Districts
- Status: Final
- Sponsor: Dept./Agency
- Committee: City Council
- Submitted Date: May 27, 2023
- Introduction Date: May 24, 2023
- Final Action Date: May 24, 2023
- Official record: Office of the City Clerk
Impact report
Written by AI from the official document. AI can make mistakes; the official document always wins.
Amendment No. 4 would expand the Pilsen Tax Increment Financing (TIF) district northward by about 6,120 tax parcels and raise its estimated total redevelopment budget to $980 million.
Who it affects
- Residents and property owners in the Added Area (16th Street to Coulter Street, Western Avenue to Clinton Street): Their mostly residential area, with about 5,125 buildings, would join the TIF, so future growth in property tax revenue there would go to TIF projects.
- Renters and longtime Pilsen residents concerned about displacement: The plan lists preserving housing affordability as a goal, and the City certifies that 10 or more lived-in homes will not be displaced, so no housing impact study is required.
- Developers seeking TIF help for housing: Those building market-rate housing with TIF help must set aside 20 percent of units as affordable, and the City may pay up to 50 percent of the cost of low- and very low-income units.
- Businesses on commercial corridors such as 18th Street, Halsted, Ashland, Blue Island, Cermak, and Western: These corridors are targeted for upgrades, with 18th Street to be promoted as a Mexican shopping district.
- Workers and job seekers living in or near the area: Funds may pay for job training, job readiness programs, and day care for children of low-income employees of local businesses.
- Property owners in the project area: The City may buy property, including through eminent domain, and owners or tenants who are moved may receive relocation help as the City decides.
What changes
- The Pilsen TIF boundaries would grow to cover 685.2 acres, from 16th Street south to the Stevenson Expressway and 33rd Street, and from Western Avenue east to Clinton Street and the Chicago River.
- Future increases in property tax revenue in the Added Area would be measured against a starting value of about $677.7 million and directed to TIF projects.
- Streets, sidewalks, water and sewer lines, transit stations, parks, and the Paseo trail could be repaired or improved.
- Developers who get TIF help must meet goals of 26 percent minority-owned and 6 percent woman-owned business participation, plus city resident hiring and prevailing wage rules.
- The City could buy and assemble property, including by eminent domain, with approval from the Community Development Commission and City Council.
Money
- Total estimated redevelopment project costs of $980,000,000, mainly paid from incremental property taxes, as an upper limit on TIF spending
- $443,000,000 for public works such as streets, utilities, transit, parks, and schools
- $204,000,000 for rehabilitating buildings and building or rehabbing affordable housing
- $200,000,000 for property assembly, demolition, and environmental cleanup
- $50,000,000 for job training, $10,000,000 for relocation, $8,000,000 for day care, $40,000,000 for developer interest subsidies, and $25,000,000 for studies and administration
Where: Pilsen; 16th Street; Western Avenue; Coulter Street; Clinton Street; 18th Street; Cermak Road; Blue Island Avenue
Lobbying and money
Computed links; money near a vote is not evidence that it influenced the vote.
Who lobbied on it
- The Resurrection Project: PILSEN TIF AMENDMENT (3 filings, Jan 1, 2024 to Sep 30, 2024; Raul Raymundo; matched by semantic embedding)