Monday, February 13, 2006

Tax plan causes 'TIF'

Community members upset by university's plans
By: phoenix news
Media Credit: Ashley Henshaw

It's no secret that Loyola's campus is changing. With the plans the Rev. Michael J. Garanzini, S.J., Loyola's president, has announced, a current student could revisit the campus in 20 years and not recognize her surroundings. One could assume that rising tuition fees were funding all of these changes. But, the university is also planning to use the city's taxes to improve the campus at their private university.

Tax Increment Financing is, most simply, the reallocating of funds from a particular tax district directly back to the same district to make improvements. The idea behind increment financing is that the community should benefit from the development of properties within its district.

After a TIF is established in a district, any developer can work with the city to craft a redevelopment agreement.

According to Vice President of Capital Planning at Loyola, Wayne Magdziarz, Mundelein Center is the only building owned by Loyola eligible to receive TIF funding since it is a historic landmark. However, since it is a historic landmark, certain parts of the building must remain intact: the facade, the ornamental staircase leading to the second floor and the first floor and its corridor.

"The projection is $20 million on the west side of Sheridan," Magdziarz said. "All is contingent on what gets built and what gets approved."

When Loyola acquired the building in 1991, it still had its original water and filtration system. The TIF money will be used to fix plumbing, electrical and the unfinished elevators.

The first phase will be the renovation of the Fine Arts Annex, located at Sheridan Road and Arthur Avenue. Regardless of what is built on this spot, the taxes that are generated as real estate taxes will be set aside and then is reimbursable to Loyola over a period of 23 years.

Magdziarz agrees that the future plan for Mundelein fits the university's larger goals. "This has always been our mission; it is the right thing to do, given the historical nature [of Mundelein]," Magdziarz said. "[There is a] tentative program [to convert an] entire floor [of Mundelein] to non-profit community use."

The first time the community was officially presented with this idea for Mundelein was Jan. 17 at a community meeting. Representatives from parties involved including DevCorp North and Madgziarz addressed issues related to the Rogers Park TIF, including the future plans for Mundelein.

According to Loyola's Director of Community Relations, Jennifer Clark, there have not been any official announcements to the community, prior to this one, regarding the new plans for Mundelein due to the nature of the TIF's planning.

"There was never really an 'announcement' in the traditional sense because the new model of open and transparent planning which Loyola has adopted made the communitypart of the planning process all along," Clark said.

The Lake Shore Campus Advisory Council discusses the TIF at monthly meetings and representatives from LU met with several community organizations in both Rogers Park and Edgewater last June before the plan was taken to the city for approval.

Hugh Devlin, class of '79, has lived in Rogers Park since he began his academic career at Loyola in 1975, and attended the Jan. 17 meeting.

"I love my neighborhood and I'm interested in Rogers Park and part of how I express that is to stay involved in these projects," Devlin said.

Devlin also said that he was disappointed because he feels Loyola's plans to use TIF money is a self-serving venture from which the community will not benefit much.

"I believe that the benefits of the community [in this situation] are disproportional," Devlin said. "Give me the $45 million and I will set up offices for non-profits and I'll put some paint on the el stop. I pay property taxes on my home. But do you know what my alderman or mayor would say if I asked if I could have my property taxes back?"

Despite the less than enthusiatic remarks of the community members, Clark said that the neighbors in the area are optimistic about the plans to renovate Mundelein Center.

"Many of our neighbors are classic Mundelein alums and they are thrilled to see their beloved building finally getting the attention it deserves," Clark said.

Dan Butt, project coordinator at DevCorp North, said the organization became involved with the TIF as the city began researching the Rogers Park TIF. DevCorp was instrumental in setting up a TIF Task Force and organizing community meetings and a steering committee.

"The majority of people that were vocal [at the meeting on the 17th] were skeptical but that's kind of what you expect," Butt said. "People who are opposed are going to come [to the meeting, while] people in support are just going to be like oh, this is great.

"[I want to] emphasize that Loyola has been pretty open about their plans and willing to engage and discuss things in the community," Butt said. "Generally universities operate and do what they want."

13 comments:

gf said...

paradise-

NCBG.org is currently working on an initiative titled "organizing for accountable development". they are addressing the concerns you just mentioned and we at rogersparkreview agree with you.

if others agree, please take the time to post your name on the "tifs. do you have as many questions as we do" post at RPR. once we know how many people are really interested, we can decide the size of the space for the meeting.

they are very busy as we speak lobbying the state to amend the laws in order for communities to have more control and transparency. we can find out how to help that cause.

Hugh said...

>According to Loyola's Director of Community Relations, Jennifer Clark, there have not been any official announcements to the community, prior to this one, regarding the new plans for Mundelein due to the nature of the TIF's planning.

>"There was never really an 'announcement' in the traditional sense because the new model of open and transparent planning which Loyola has adopted made the communitypart of the planning process all along," Clark said.

To learn mroe about Loyola's innovative "new model of open and transparent planning," here's a link to an article from the Chicago Defender:

Rogers Park Housing Advocates Charge TIF Task Force with Racism
by Joe Ruklick, Chicago Defender, August 21, 2003

Hugh said...

To learn more about Loyola's "new model of open and transparent planning," here's a link to a letter to the Lerner News-Star

TIF Process Compromised by All-White Task Force
Letters to the Editor, Lerner News-Star, 8/27/03:

gf said...
This comment has been removed by a blog administrator.
gf said...

i'm amused at the propoganda logic mr. butt uses in his quote. i guess only the pesky whiners showed up at the meeting while the rest of our neighbors lived happily ever after.

i wonder what data he used to come to that conclusion?

Hugh said...

> "The majority of people that were vocal [at the meeting on the 17th] were skeptical but that's kind of what you expect," [Dan] Butt [project coordinator at DevCorp North] said. "People who are opposed are going to come [to the meeting, while] people in support are just going to be like oh, this is great."

Loyola and their lobbyist & grassroots lobbyist DevCorp North dust off Nixon era rhetoric:

If a vocal minority, however fervent its cause, prevails over reason and the will of the majority, this nation has no future as a free society. ... So tonight, to you, the great silent majority of my fellow Americans, I ask for your support.

-President Richard Nixon, televised address to the Nation, November 3rd, 1969

Hugh said...

> Reading back on the past history really sheds light to the magnitude Loyola, DevCorp, O'Conner and Moore lied to us.

For some more light reading on the history of Loyola's TIF, here's a link:

Loyola's role raises doubts about tax plan
Angela Rozas, Chicago Tribune, Sept 10, 2003

Excerpt lies:

Loyola spokeswoman Jennifer Clark said the university is not pushing the TIF district proposal. However, she said the university paid for a study ... to determine if the area qualifies to be a TIF district.

Loyola has no immediate plans for the proposed tax dollars, Clark said.

"They think we have a big, deep dark plan in the back of our desk, but that's not true," said [Wayne] Magdziarz, [vice president for capital planning at Loyola]

Moore said he would not let the university compromise the needs of the rest of the community.

Blogger said...

Gary wrote:
"NCBG.org is currently working on an initiative titled "organizing for accountable development". they are addressing the concerns you just mentioned and we at rogersparkreview agree with you.

if others agree, please take the time to post your name on the "tifs. do you have as many questions as we do" post at RPR. once we know how many people are really interested, we can decide the size of the space for the meeting.

they are very busy as we speak lobbying the state to amend the laws in order for communities to have more control and transparency. we can find out how to help that cause."

Rebecca says - I just added the links. Please RSVP your interest as a comment on the site, or email us at rogersparkreview@hotmail.com. Once we have a good size group together we'll set the date, time and place. Thanks!

Blogger said...

I should have put this one in too:
ncbg.org

Knightridge Overlook said...
This comment has been removed by a blog administrator.
Blogger said...

Sorry you found that annoying Morse Man - that wasn't my intention. Naturally, you don't have to read "my shit" or anything else you don't want to. It was a sincere invitation to learn more about an issue that seems to matter to a lot of people.

Hugh said...

> Tax Increment Financing is, most simply, the reallocating of funds from a particular tax district directly back to the same district to make improvements.

Tax Increment Financing is, most simply, a property tax kick-back scheme.

Pamela said...

And some wonder why I'm libertarian. Government wealth redistribution plans almost always suck regardless of who the politicos are or what party they belong to.

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