Kimberly Bares, Executive Director of DevCorp North, and architect of DevCorp North's off-the-books speculation in real estate development and shopping mall management, recently appeared before a community meeting in Roscoe Village, to present in favor of a new SSA, introducing herself as...
"Hello, I'm Kimberly Bares, from Community Solutions Group."
Ms. Bares' introduction and presentation should have gone more like this:
"Hello, I'm Kimberly Bares, the Executive Director of DevCorp North. As a salaried officer of DevCorp North, for the past several years, I have earned my living off of SSA property taxes, so I think I know a thing or two about this. Listen up, now!
"I personally spearheaded establishing TWO SSAs, the Howard SSA and the Clark-Morse-Glenwood SSA. I was instrumental in getting my organization, DevCorp North, designated as the sole service provider for both. (Although truth be told this was not too tough since our Alderman let us hand-pick the SSA Commissioners, so we stacked both Commissions with DevCorp North members). I'm particularly proud of the Howard SSA, which allows my organization DevCorp North to collect property taxes from the neighborhood to underwrite the street sweeping and snow plowing around Gateway Mall, which DevCorp North owns. By law in Chicago, all property owners are responsible for cleaning and shovelling around their properties on their own dime, but we have pioneered a better way.
"And all this while maintaining our tax-exempt, 501(c)3 public charity status, so handy when applying for grants! Yet at the same time I evolved DevCorp North from a membership-funded chamber of commerce model to a property tax-payer funded city agency model. We find the property taxpayers, via our Alderman and the City Department of Planning and Development, to be a much more compliant, reliable, lucrative, and hassle-free source of funding for ourselves than the sad-sack businesses in our neighborhood.
"Nauseous at the thought of another rubber chicken fund raising dinner, forced to spend the evening with a bunch of people you don't even like very much? Disappointed at the returns from your renewal notices? Tired of re-justifying yourselves to the same pathetic handful of business owners, year after year? Are language or cultural barriers preventing you from convincingly communicating just how crucial planters are to the future of your neighborhood?
"It's nothing to be embarrassed about. It's not easy drawing the kinds of salaries talented, capable people such ourselves require, based solely on dues and bake sales. Even we at DevCorp North found that we simply could not convince the businesses in our neighborhood to support us in the manner to which we had become accustomed. So we showed them who's boss: We called our Alderman and slapped a tax on 'em! Ha! Now the Cook County Treasurer collects our dues for us. The businesses in our neighborhood are compelled to support us, under penalty of law.
"While we are now on the government dole and totally beholden to our Alderman, we are just far enough into the private sector so as to be beyond the pale of the nasty Shakman decree and those annoying Chicago Ethics Ordinances. All the benefits of public funding and all of the freedom from accountability of the private sector. Really, it's the best of both worlds. We couldn't be happier.
"Of course, we are grateful to our Alderman, and, with a big old pot of property tax money to spread around the 'hood, we find that many of the vendors, service providers, and sub-contractors we work with share our gratitude, and are moved to express it. And so a goodly portion of every property tax dollar we collect goes to continuing the fine work of our sponsor. A judiciously-managed SSA all but guarantees the re-election of an incumbent Alderman. Pretty neat trick, huh? Political campaigns funded by very recently-public property tax money! But that's what DevCorp North is all about: we launder public money for private use, we transfer wealth from the unwashed many property tax payers to the chosen few elite, and we're quite good at it, if I do say so myself.
"All across the City, Aldermen are using SSAs to raise property taxes to purchase chambers of commerce and community development corporations, putting them on the payroll, and eliminating the last vestiges of independent voices in our neighborhoods. Why be the last?
"Well, these SSAs have been so successful, things are so well under control in Rogers Park, the beautification of Rogers Park is complete, and now my staff and I are branching out, focussing our demonstrated talents toward spreading the gospel of creative accounting and property-tax funded career paths to other neighborhoods. Oh, and while we're at it, picking up a little consulting income on the side. That's why we recently founded Community Solutions Group, Inc.
"Hard to believe that just a few short years ago, I was a recent college grad, cowering in a the back of a lonely store front on Howard Street, trying to figure out how to eke out a living from a chamber of commerce when the only commerce going on outside my door was crack cocaine, hand guns sales, and prostitution. I can barely believe it myself, but now I'm a property-tax funded, highly paid consultant who specializes in running around the City raising property taxes, and you can be, too! I'm a sort of Typhoid Mary of property tax increases, if you will, a regular Johnny Appleseed of sleaze. Wherever businessmen gather and ask themselves, "How can I get mine?," I am there in their midst, available to share my considerable experience, for a fee.
"AND we own our own Mall! But that's a topic for another day. Today's topic is "The Miracle of SSAs." For another small fee you can have me back for my presentation "The Miracle of TIFs." TIFs are an advanced topic in redirecting other people's property taxes to your personal benefit. We at CSG recommend that you start out with a SSA, and see if you can manage it for a while without getting indicted, before attempting a TIF.
"Is this a great country, or what? Special Service Areas have been very, very good to me. I'm here tonight to explain what SSAs can do for YOU!
"Questions?"
4 comments:
Matlak to defer Roscoe Village SSA, investigate accusations
By Mary Corrado, Editor, Inside
Over 150 people filled the Community Room of the 19th District Police Station, 2452 W. Belmont Ave., to learn about the proposed Roscoe Village Special Service Area (SSA) at a meeting hosted by Ald. Ted Matlak (32nd) Monday night. Though a few voices spoke in favor of the new local tax to pay for local beautification, maintenance, marketing and promotion, Ald. Matlak said, "There's a definite trend here" against the proposal. The matter is scheduled to come before the Finance Committee of City Council at 10 a.m. Monday, Nov. 29, but Ald. Matlak said, "I'm deferring it on Monday. This failed on the first round. If it does get support in the future, fine with me. If it does not get support in the future, fine with me. I WILL follow through on accusations [against the Chamber and against the Roscoe Village Neighbors (RVN)], to silence the critics and restore good names." The deferral lasts a year, and Matlak said he won't bring it up then unless there is support. "Everyone better shovel their sidewalks," he added.
HOW THE MEETING PLAYED OUT: After a presentation by the City Department of Planning and Development about SSAs in Chicago, consultants from URS Corporation and Community Solutions Group (CSG) walked the crowd through the SSA process in Roscoe Village specifically. Then the property owners began to ask questions, many challenging the benefits of an SSA and many others inquiring why they had received so little information about the SSA and no requests for input or opinion. Others said that an SSA should be deferred until questions of legitimacy of the Roscoe Village Chamber of Commerce are resolved, because the Chamber was slated to be the Sole Service Provider for the SSA, overseeing as much as $3,000,000 over 10 years. Still others wondered why residential properties were being included since the benefits are generally considered to be to the commercial properties.
WE'VE HAD NO SAY: During the presentation, Gina Caruso said that SSAs are "locally driven" while Kimberly Bares of CSG described SSAs as "taxation with representation." "We've had no say!" responded one property owner. Jenny Osworth of the 2000 block of W. Belmont addressed Ald. Matlak: "Most of us are not in agreement. Hear us! Quit trying to back this information. Listen to us!"
The Chamber, which sponsored the SSA proposal, defended its efforts to inform the property owners and mentioned a postcard mailed in May 2004—however, the postcard announced a meeting to discuss beautifying the area and did not disclose that a tax was part of the proposal. Not aware of a possible additional tax, some recipients may have disregarded the postcard. Many property owners said they never got any notice at all, apparently because the list was based on outdated information.
SHRINKING POOL OF SSA PROPERTIES: Since Sept. 22, when Inside first reported on this SSA proposal, a number of properties have been removed from the list so the map presented at the meeting highlighted fewer affected buildings. The properties on Roscoe St. from Damen to Ravenswood avenues were pulled out by Ald. Matlak when residents of the Pencil Factory Lofts complained that the stretch was primarily residential. The properties on the east side of Western Ave. between Cornelia Ave. and Addison St. were taken out by Ald. Gene Schulter (47th) and so were all the properties on the west side of Western Ave. from Addison St. to Belmont Ave.—which includes the new Jewel food store and all the stores of Riverview Plaza.
On Monday, a representative of property owners on W. Roscoe St. west of Leavitt St. stood up said that her area was also mostly residential and presented a petition to Ald. Matlak—with 81 PIN numbers and 54 signatures—asking him to pull this block out as well. As the meeting progressed, Matlak explained that the decision to let properties out depended on whether it was an entire block wanting out or, for example, a single house with lots of businesses around it, in which case the request would be denied. At this point the question arose, what if the base of SSA-taxable properties disintegrated even more? Was there a minimum threshold? The response was that boundaries for an SSA do need to be continuous and contiguous; in drawing it, you can't "lift the pencil."
BUDGET CREATIVITY: The proposed SSA budget for 2005 was reviewed, showing an estimated $217,730 in income, based on 2002 property tax rates because those were the most recent available when the study began. The presenters pointed to the administration costs as being only nine percent of the total budget, whereas some SSAs spend 25 or 30 percent on administration. "Twenty-five percent is a red flag," a signal for the city to look into it more closely, said one consultant. This issue was questioned after the numbers were presented.
Joan Carver, of the 1900 block of W. Newport Ave., asked why the program management costs were not listed under administration and instead were distributed 35 percent under maintenance, 35 percent under marketing and 30 percent under administration. "It is an administrative cost—and so the total administrative costs would rise to 18 or 20 percent!" she said. Presenters then said that "lots of creative and innovative" ways to set out a budget could be employed—which elicited hoots from the audience.
According to the budget, maintenance and beautification costs included planters and kiosk maintenance ($10,000), 25 trash receptacles ($24,500), three-days-a-week trash pickup from sidewalks, curbs and receptacles ($13,500), snow removal from sidewalks for each two-inch snowfall, assuming five occurrences a year ($10,000), landscaping of existing trees, 30 planters, watering ($17,500), overpass painting ($9,000), holiday decorations of artificial greenery and wreaths for light poles ($25,000), lightpole banners ($2,500), insurance for planters and kiosks ($1,000), 35 percent program manager staff time ($10,500), and tax anticipation loan and financing costs ($2,250).
Marketing and promotion costs included advertising, directory, and transit advertising ($20,000), 35 percent program manager staff time ($10,500), more tax anticipation loan and financing costs ($2,250), and one-time SSA start-up costs for consultants, data collection, legal description, etc. ($30,000).
Administration costs broke down as follows: 30 percent program manager staff time ($9,000), audit by CPA ($2,500), general insurance ($500), office expenses ($2,500), shared office space ($1,980), and staff support from Chamber ($4,000). In addition there was a loss collection expense of $11,000.
HOW MUCH WOULD MY TAX BILL GO UP?: Andre Williams described the increase in property taxes due to an SSA as about eight percent. Examples of a $308 annual increase for a particular small commercial property and a $484 annual increase for a certain single family house were displayed, which translates to $3,000 to $5,000 over the 10-year life of the SSA.
I TAKE CARE OF BEAUTIFICATION MYSELF: The owner of La Mora restaurant, Priti Chowdhury, said, "I don't see the SSA as a benefit. We shovel and plant ourselves." Don Ash of the 1800 block of W. Belmont Ave. said, "We shovel, we clean. Why should I have to pay for a business to pick up and shovel and clean up? The City already requires trees and planters from developers. Graffiti cleaners already paint the viaducts." There is nowhere to add trees in certain parts of the Village, anyway, according to one speaker. Another property owner said, "We had a bench. We took it out because too many drunks slept there!" Another objection said that primarily residential areas are not interested in the increase in traffic to the area which is one goal of an SSA.
"What would the business owners on [the east side of] Western Ave. get out of it? It's mostly garages and car lots, with no room for trees, and we don't need sidewalk cleaning," inquired one.
"Our condo association takes care of our property. Is the Chamber of Commerce a nanny and maid service? Do we ask for no personal responsibility? Entrepreneurs can improve their own property if they want to," said a representative of the 2338-2340 W. Belmont Ave. condo association.
LEGITIMACY ISSUES: Brian Spies of Union Insurance raised a question about whether it was appropriate to entrust the position of Sole Service Provider of an SSA to the Chamber in light of the admission by Al Johnson, Chamber president, and Terri Brak, Chamber executive director, that they have failed to hold meetings or elect officers or have a treasurer or keep records. "If there are legitimacy problems with the organization, why can't the SSA be tabled for a while?" he asked to applause.
"I'd like all the groups involved to have legitimacy," responded Ald. Matlak. "I'd like an independent audit of Roscoe Village Chamber of Commerce and of one of the local community groups [Roscoe Village Neighbors (RVN)]."
When a journalist—not a property owner—rose to ask a question, Matlak hesitated to let him participate, but relented because he did live in Roscoe Village. "What, journalists can't ask questions at this meeting?" said Tracy Siska of WLUW radio. "Hey, in Fallujah they're killing journalists," said Ald. Matlak. "Are you threatening me?" responded Siska. He then asked who "vetts" the organization that acts as Sole Service Provider—the alderman or the Department of Planning and Development, and was told it's the DPD. "There is a credibility question. How do you handle that?" Siska then asked Caruso of the DPD. "The Chamber has a track record with the City since 1999, so there is a confidence level with them," she responded. She did not add that she was the original consultant on the SSA hired by the Chamber, the person who made the presentations at the stakeholder workshop May 6 as well as the RVN meeting May 12, before she was hired by the City . "There have been numerous false allegations," interjected Brak.
"Before it goes to a vote, are you planning on hearing those audits?" asked Joe Crute of the 3300 block of N. Hamilton Ave. to Ald. Matlak, who responded: "I'm deferring it on Monday."
WHAT'S NEXT: "Everyone found out late and we were shocked, so if it does come up again, better communication is imperative," commented one person. Another grumbled that the Chamber had spent $30,000 on trying to get this SSA started without following the bylaws of representing the membership, and therefore that money should rightfully be restored.
According to the 2001 and 2002 IRS returns from DevCorp to the government, they did NOT participate in lobbying. We all know this isn't quite the truth.
It also states that Ms. Bares received $16,667 in 2001 and was somehow awarded a 300+percent raise bumping her salary to $52,000 in 2002. That's a magnificent feat in a depressed national economy as well as the 49th Ward isn't it?
Lobbying
Ms. Bares and other DevCorp North officers are fixtures at public hearings, testifying and introducing themselves as representing a "community group" from Rogers Park, speaking for us.
The legal definition of lobbying is attempting to influence legislation on behalf of someone else.
When DevCorp North testifies in favor of a property tax increase to fund themselves, as they did with both of the SSAs in our neighborhood, it could be argued that they are attempting to influence legislation to benefit themselves.
Hugh
Does this mean kimberly is going to have to give back the money she got?
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