Saturday, January 8, 2005

Morsehellhole Reader Asks: Up-Dated with lot's of comments!

Grown-Ups In Kindergarden-Part 1 Story draws reviews!
"How DevCorp North is intentionally keeping "locally owned" commerce from growing on Howard?"

It's Kindergarden spelling and math, three letter's and one number Charlie.

SSA #19!

Actually folks, it's far more complex. I had to keep it simple for some readers. Here is a easy example to follow. Both of these SSA's were set up to do the same thing at the same time: Which is more effective, one or two?

1) In 1997, SSA #18 North Halsted was established, this is run NHMA. Proud accomplishments include North Halsted Market Days, the largest neighborhood street festival in the country. Vendors are turned away, it's so popular. This draws 750,000 people for it's two day event. Hosts the Gay Pride Parade, another 3/4 of a million people show up, host's PrideFest, a new event started in 2003 and draws 10,000 plus people each year. In it's first two years, no less. This brings in millions and millions and millions and millions of dollars to "locally owned- very active" business owners. Each and every year.

2) In 1997, SSA #19 Howard Street was established, this is run by DevCorp North. Proud accomplishments include a Farmer-less Market and Vacant Windows Projects.


By the way, Number One takes less administration fees, uses less comminssioners and finished a "World Class" Streetscape project. I'm proud to say, Gernhardt Publications sponsor's of all the "North Halsted Street Merchants Association" events, from the beginning.

31 comments:

Anonymous said...

Howard has another empty dollar bill store after the owner was injured by local thugs. Until some real serious house cleaning is done what company is going to invest big bucks there?

Anonymous said...

"In 1997, SSA #18 North Halsted was established, this is run NHMA, using less of a property tax increase. "
So Craig, does this mean North Halsted Market Assoc.? is not paying people $48k-$52k from taxpayers dollars? Morse and Howard streets have a festival every day...you can buy the drug of your choice.

Craig Gernhardt said...

I took out the ammounts, here are the budget's for 2003-#18 and #19. These are the most recent ones I got. Every year these SSA's go up in taxes,sometimes decrease, but not often.

My main focus is the wasted money on SSA #24, somehow I got "Out of Bounds" with this post.

SSA #18- $83,340

SSA#19-$127,215

Anonymous said...

It's like pulling teeth to get SSA information.

Anonymous said...

I pick 1

Anonymous said...

Please inform us just how DevCorp is intentionally keeping "locally owned" commerce from growing on Howard.

1. DevCorp North, working under contract from the City of Chicago's Department of Planning and Development, acts as a paid consultant to multi-millionaires real estate moguls James DiMatteo and Rudy Mulder in applying and lobbying for Gateway Mall. The project includes using the threat of eminent domain to acquire properties and give them to the developers for free or at ridiculously below-market prices, as well as a massive package of property tax subsidies.

2. In addition to their compensation from the City of Chicago's Department of Planning and Development as a "technical consultant to business" DevCorp North compensates themselves by charging consulting fees to the developers. And although DevCorp North is nominally a tax-exempt, not-for-profit corporation at grant-writing time, they further compensate themselves by writing themselves into the deal with an equity position in the for-profit shopping mall.

3. In their partnership agreement, DevCorp North and their partners agree that the new mall be specifically reserved for national, brand-name stores, and that locally-owned small businesses are disallowed. DevCorp North razes acres of Rogers Park to create a theme park for name-brand stores, a massive anti-small business incubator, a locally-owned business free zone adjacent to our regional transportation hub.

4. The new mall is anchored by a Dominick's, backed by the buying power of owner multi-national Safeway, and includes departments such as:

Floral
Bakery
Liquor
Hardware
Automotive
Fruits
Vegetables
House wares
Groceries
Cheese
Deli
Fast food
Prepared food
Cards
Magazines

5. Years pass, and leaves DevCorp North scratching their head, wondering, gosh, why aren't more locally-owned businesses thriving on Howard Street around the corner from our shopping mall? DevCorp North applies for a grant to hire scientists to study the problem. On their financial disclosures in support of their grant application, DevCorp North carefully conceals their ownership of the shopping mall, as they do on all their financial disclosures and grant applications.

TIF (Tax Increment Financing)-supported development gives the appearance of economic progress by causing businesses from outside the TIF district to relocate inside the TIF district. Although some progress may occur inside the TIF district, the immediate surrounding area declines more than the inside progresses. For more information, see

TIF districts hinder growth
Study finds that cities without TIFs grow faster

Professor Richard Dye of Lake Forest College and Professor David Merriman of Loyola wrote of how TIFs suppress growth in surrounding areas.

http://www.igpa.uillinois.edu/publications/PolicyForum/PF13-4_tiff.pdf

Anonymous said...

http://www.igpa.uillinois.edu/publications/PolicyForum/PF13-4_tiff.pdf

Anonymous said...

Butcher
Fish
Pet supplies
Office supplies
School supplies
Seasonal items

Anonymous said...

Pizzaria
Sushi bar

Craig Gernhardt said...
This comment has been removed by a blog administrator.
Anonymous said...

Coffee shop

Anonymous said...

Bank
Restrooms
Photo supplies
Seasonal and Holiday supplies

Anonymous said...

Free Parking.

Charlie Didrickson said...

Thanks Hugh.....Sorry no Time right now. I have to go to Dominicks to get my Car fixed.

You are very good at spelling things out.....and you do your homework. So what.

You teach at DePaul Univ. Catholic Priests abuse little boys.
Are you guilty?

Charlie Didrickson said...

So Dominicks is to blame?

PS My apologies to Hugh if he in fact did not write that post. Just making a point.

Anonymous said...

Charlie, At least Hugh does his homework, keeps to the subject matter and doesn't threaten. What is the point of apologizing after one of your unsubstantiated guesses? You seem to always offer friendly advice with underlying tones.

Toni

Charlie Didrickson said...

Hi Toni.....just pushing the conversation. Glad your in it.

What threat? Really....

Anonymous said...

What threat?
"You teach at DePaul Univ. Catholic Priests abuse little boys.
Are you guilty?
# posted by Charlie Didrickson : 7:52 AM"

a. What does the above remark have to do with the
subject?
b. Not ALL Catholic priests abuse little boys.
c. Maybe 'toss him in a trunk or cornfield' because
he disagrees w/your viewpoint...
d. That's the underlying tone....
e. Menacing and threatening...call it sarcasm or satire
as justification.

Anonymous said...

I very seriously doubt that Hugh or whoever it is writing that nonsense has his facts right. Particularly this:

"DevCorp North and their partners agree that the new mall be specifically reserved for national, brand-name stores, and that locally-owned small businesses are disallowed."

There's evidence right in the mall of two locally owned businesses: the Gateway bar and grill, and the North Shore Optical or whatever it's called.

What's nonsense. Stick with the facts. Show me where it says they only want national businesses.

-Michael C.

Anonymous said...

>Show me where it says they only want national businesses.

DevCorp North negotiated with their business partners in Gateway Mall on a list of "Prohibited Uses." Their partnership, Combined Development - Howard, L. L. C., agreed on a list, and incorporated the list into their company's charter document, which was signed by Kevin O'Neil, then President of DevCorp North and Rudy Mulder (see excerpt below). The operating agreement for Gateway Mall specifically prohibits grocery stores, retailers, and restaurants unless they are owned by large national corporations. DevCorp North's operating agreement with their partners in Gateway Mall was obtained from the City of Chicago under the Freedom of Information Act.

Excerpt from Limited Liability Company Operating Agreement of Combined-Development - Howard, L. L. C.

December 19, 1996

2.11. LEASES

The Company shall not lease space at the Project to any tenant for the uses set forth on the list attached hereto as Exhibit 5.2. ...

Exhibit 5.2

Prohibited Uses

Liquor Store

Warehouse or Discount Grocery Stores, unless specifically approved
(not to include name brand users - i.e. Marshalls, T.J. Maxx, etc.)

Fast Food, unless specifically approved
(not to include name fast brand fast food restaurants - i.e. McDonalds, Burger King, etc.)

Anonymous said...

>There's evidence right in the mall of ... locally owned businesses: the Gateway bar and grill

Legally, the Gateway Bar & Grill is not in Gateway Mall. Through savvy negotiation, the Dorizas managed to hold on to their property while DevCorp North's project swirled around them. They own their land. It is not owned by DevCorp North and their partners.

Anonymous said...

Despite the prohibition on liquor stores in their own company charter they drew up for themselves (see excerpt above), DevCorp North and their partners in Gateway Mall used TIF property tax funds to raze a liquor store on the southwest corner of Howard and Clark, and opened a liquor department in Gateway Mall, inside the Dominick's.

Anonymous said...

A locally-owned donut and coffee shop in the Howard EL station is replaced by a multi-national corporate chain, Dunkin Donuts. Dunkin Donuts is owned by Allied Domecq Quick Service Restaurants (ADQSR), headquartered in Randolph, Massachusetts. ADQSR is a subsidiary of U.K.-based Allied Domecq PLC. Other Allied Domecq brands include Baskin-Robbins, Togo's, Ballantine’s scotch whisky, Beefeater gin, Kahlua, Sauza, Tia Maria, Maker’s Mark bourbon, Malibu, Canadian Club, Courvoisier cognac, Harveys Bristol Cream, and Mumm champagne.

Craig Gernhardt said...

And Steve is one of the SSA #19 commisioners and testified for the SSA #24. He was "Out of Bounds" in doing so.

Anonymous said...

A relatively recently constructed Dominick's at Chicago Ave and South Blvd, about 1/2 mile north of Gateway Mall, closes and a new property-tax subsidized Dominick's opens in Gateway Mall.

Gold's Gym on Rogers Ave. closes and a Bailly's opens in Gateway Mall.

Anonymous said...

Does anyone know why so many storefronts have been empty for so long in the Gateway Mall?

Anonymous said...

I've 'heard' the rents are equivalent to Lincoln Park. Also heard that several locals were not granted space by developer, et al.

Anonymous said...

Anon wrote earlier:
>partners agree that the new mall be specifically reserved for national, brand-name stores, and that locally-owned small businesses are disallowed.

I called him on it and asked for proof. He pointed to this from the agreement:

"Prohibited Uses: Liquor Store, Warehouse or Discount Grocery Stores, unless specifically approved
(not to include name brand users - i.e. Marshalls, T.J. Maxx, etc.); Fast Food, unless specifically approved
(not to include name fast brand fast food restaurants - i.e. McDonalds, Burger King, etc.)"

My point was that the agreement did not explicitly forbid locally owned businesses, and this proves that it does not.

What it also proves, in my opinion, is that DevCorp showed good judgment in prohibiting liquor stores (and don't tell me that a grocery store selling liquor is the same as a "liquor store"); showed good judgment in prohibiting warehouse or discount grocery stores, such as Aldi's and dollar stores; and wanting to get some quality fast food stores in there.

I don't know the details about Gateway, but I do know they are a local business, and they are in the development, as is North Shore Optical. Nuff said.

-Michael C.

Anonymous said...

Michael C.

Would you please also follow up on the years of fraudulent financial disclosures to the IRS and the public and grant-making institutions, the deliberate concealment from the public of their ownership stake in a for-profit shopping mall, while masquerading as a not-for-profit "chamber of commerce" and/or a "community group", and get back to us? Thanks.

Anonymous said...

So your two examples of DevCorp North's commitment to fostering local businesses in their shopping mall are a restaurant that was there a hundred years before the Mall, is not and has never been a part of the Mall, and an optometrist from Winnetka. OK.

Anonymous said...

Either way, the Mall is still mostly empty, so call me a pessimist. There are how many vacant stores on Howard? How many on Morse? Why don't they work with Magic Johnson, maybe Donald Trump? Cause they're in the little leagues, that's why. They take the easy out called SSA and TIF.

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