Thursday, March 23, 2006

* Alderman Unleashes Eminent Domain on Developer Pal

Alderman Moore is seeking to use eminent domain against Tezakis.
By Forum 49 HUGH

The property is the two lots on the east side of Ashland, from Howard on the north to Rogers on the south, known informally locally as the "Lerner" property.

1. 7531-33 N Ashland, PIN 11-30-405-001, vacant lot
2. 7519 N Ashland, PIN 11-30-405-009, the old "Lerner News" building

The current owners are Burrel Restaurant Corporation, an Illinois corporation controlled by John Terzakis. The registered agent for Burrel is Roxanne Gardner.

Terzakis is no stranger to Rogers Park.

1. Terzakis and Gardner are partners with DevCorp North in Gateway Mall.

2. Terzakis is a partner with Jay Johnson and the Rogers Park Community Council in the Morse Senior Center.

3. Terzakis and Garder partnered with Rudy Mulder in Urban Investment Trust Inc.


Single Site Solutions Corporation

Terzakis aggressively acquired properties in the TIF as the TIF project gained momentum.

Terzakis acquired the vacant lot on the southeast corner of Ashland and Howard, AND the Wisdom Bridge Theater Building, 1561 W Howard, PIN 11-29-300-001, on 12/30/1994 for $450K (see Cook County Recorder of Deeds document number 95010746).

Terzakis acquired the Lerner building on the northeast corner of Ashland and Rogers from Lerner on 9/28/1998 for $325K. (see CCRD doc # 99095824).

The Howard TIF was drawn so that Terzakis' two properties on N Ashland (but NOT the Wisdom Bridge Theater Building around the corner on Howard) were included in the Howard TIF.

Moore held neighborhood meetings and supported a zoning change and a "planned development" (PD) for Terzakis' two Ashland properties. The PD was approved by the City Council on March 9, 2005. Here are links to the plans, spread out over two PDF files:

1. the last two pages of the first and
2. continued here.

Terzakis made the "Wisdom Bridge Arts Project" the trustee for the Wisdom Bridge Theater Building on 10/17/2005.

Just weeks later, in the midst of the controversy surrounding the tear-down of the Adelphi Theater on Clark, Moore quietly let it be known that the Wisdom Bridge Theater Building would also be torn down.

Jargowood Block Club Meeting
11.01.2005

Alderman's Report

– Continuing Issues: Kevin Cosgrove represented Alderman Joe Moore's office.

These updates were provided:

Wisdom Bridge Theatre – Control of the site has been transferred to the “Friends of Wisdom Bridge” group. [I’m not sure if I have that name right]. The group is now requesting bids for demolition as the building is too far gone for conversion into an accessible facility. The group is planning to look for redevelopment proposals; the proposals could include space for a theatre company in the development or sale of the property to enable a move to a new location.

Less than a year after Moore arranged a zoning change and a planned development for Terzakis, Moore was supporting eminent domain proceedings against Terzakis.

This will allow TIF money to be used to pay Terzakis for the property.

Here is a link to the Community Development Commission Agenda:

CDC February 2006 Tentative Agenda

Excerpt:

IV. NEW BUSINESS

J. HOWARD/PAULINA TIF REDEVELOPMENT PROJECT AREA (WARD 49)

Request authority to acquire the property located at 7519-33 N. Ashland Avenue in the Howard/Paulina Tax Increment Financing Redevelopment Project Area.

CDC Resolutiion 06-CDC-21: Authorization for the Acquisition of Property Located in the Howard/Paulina Tax Increment Financing Redevelopment Project Area

This matter was brought before the CDC by the Department of Planning and Development of the City of Chicago:

"The Department of Planning and Development recommends that the CDC approve the authority to acquire the property..."

Here is a list of the Exhibits attached to the proposal brought before the CDC by DPD;

Exhibits

Redevelopment Area Map
Neighborhood Map or Aerial
Tax Plat
Dept. of Environment Screening Report
Parcel Profile Table
Sample Acquisition Notice
Community Letters of Support
Alderman's Letter of Support

DevCorp North: Taxpayer-funded Unregistered Lobbyist


Here is an excerpt from the Sample Acquisition Notice:

"The Department of Planning and Development (DPD) is seeking the authority to acquire the above referenced properties..."

Here is an excerpt from Moore's letter of support:

"I am writing in support of the Department of Planning and Development's effort to receive acquisition authority for 7519 and 7531-33 N Ashland ..."

One and only one letter is included in the "Community Letters (sic) of Support" section of DPD's proposal to the CDC: from DevCorp North. Here is an excerpt from DevCorp North's letter of support:

"DevCorp North, the business, community and economic development corporation in Rogers Park, is writing to indicate our support of the city's decision to place the Howard/Ashland property on the city's acquistion list ... "

DevCorp North speaks for us. DevCorp North fails to disclose to the Commissioners that they are a delegate agency of the Department of Planning and Development. DevCorp North is almost entirely funded from contracts let through DPD. DevCorp North is a paid agent of DPD, testifying in favor of a DPD proposal, in front of a city Commission, while pretending to be a community group.

Molly Ivins calls this phenomenon "astroturf:" fake grassroots organizations.

12 comments:

Hugh said...

> As to Wisdom Bridge, the "Friends" group has been trying to save it for years

Thanks for your post. May I ask, what do you know about this "Friends" group? I do not find any corporation or not-for-profit registered as "Friends of the Wisdom Bridge" or similar. (SOS)
What is their official name? Who is in it? Specifically what have they done to save the Wisdom Bridge Theater Building?

Hugh said...

Moore unleashes eminent domain on Terzakis

Hugh said...

> I have never been able to locate this group. However, that's moot.

I'm not convinced it's moot. I think we could stand to learn a little bit more about this group, who was in it, what it did or didn't do. Land speculators often develop a plausible story to fend off charges from the community that they are land-banking and have no sincere interests in redeveloping a property. I would like to ask again if any readers have any information on this group and efforts to save or redevelop for reuse the Wisdom Bridge Theater Building. Anyone? Thanks.

Hugh said...

> Is this a step to finally get something built on those properties? Isn't that a good thing, since Terzakis has apparently dropped the ball?

Terzakis has not dropped the ball. Chicago's planned developments include standard language to encourage a developer to get on with it:

Planned Development Sunset Clause

"Unless substantial construction of the improvements contemplated by this Planned Development has commenced within six (6) years of the effective date hereof and unless the completion of those improvements is thereafter diligently pursued, then this Planned Development shall expire and the zoning of the Property shall automatically revert to those of a B3-3 Community Shopping District and C 1-2 Neighborhood Commercial District. This six (6) year period may be extended for up to one (1) additional year if, before expiration of the six (6) year period, the Commissioner of Planning and Development determines that good cause for extension is shown."

Terzakis was given 6 years, and coud ask for extensions. The clock started 3/9/05 wen the PD was approved.

> Are you implying that the alderman is somehow at fault here

Now as a neighbor you may well think 6+ years is WAY to generous to the developer (Evanston uses 1 year), but Moore voted for this PD. (Of course, all the Aldermen did). If Moore was anxious that Terzakis fast track this, he could have asked for a shorter time period.

> ... is something underhanded going on here?

Something unusual is going on.

Hugh said...

Yeas -- Aldermen Flores, Haithcock, Preckwinkle, Hairston, Lyle, Beavers, Stroger, Beale, Pope, Balcer, Cardenas, Olivo, Burke, T. Thomas, Coleman, L. Thomas, Murphy, Rugai, Troutman, Brookins, Munoz, Zalewski, Chandler, Solis, Ocasio, Burnett, E. Smith, Carothers, Reboyras, Suarez, Matlak, Mell, Austin, Colon, Mitts, Allen, Laurino, O'Connor, Doherty, Natarus, Daley, Tunney, Levar, Shiller, Schulter, M. Smith, Moore, Stone -- 48.

Nays -- None.

Hugh said...

Wisdom Bridge Theater Building coverage in PerformInk

Saving Wisdom Bridge
article (circa late 2000?)

Theatre Real Estate a Hot Commodity
one paragraph update (circa late 2001?)

Hugh said...

DevCorp North gets almost ALL of its funding from three contracts with the Department of Planning and Development:

1. a contract for "technical support for business groups"
2. two contracts as "sole service provider" for Rogers Park's two special service areas (SSAs)

The Daley administration and the Alderman literally don't need us. They bulk purchased all the grassroots support they will ever need when they raised property taxes to fund DevCorp North. Why hold community meetings, why even talk to the neighbors? DevCorp North is always ready to dash off a quick letter, and is shameless about presenting themselves as a "community group." Building concensus is hard, raising properpty taxes to fund astroturf is easy. The City's "delegate agency" programs disenfranchise citizens.

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

Part of our community's problem is that folks in Washington don't know the truth about our Aldersnook. I just got an E-mail from that nutcase DNC Chairman Howard Dean, talking about the plans for a national door-to-door canvass for the Democratic Party (and would I please make a donation to the DNC; with what, Dr. Dean... Monopoly money?). Checking out the website which sent me that nonsense a bit further produced this link: https://www.democrats.org/a/2005/12/chicago_alderma.php

That link gives you the following message from Joe Moore, from last December:

I am Chairman of the National Democratic Municipal Officials Conference (DMO). DMO is a organization of Democratic Mayors and City Council members from across the nation who are committed to rebuilding the Democratic Party from the grassroots up. Together with my fellow DMO officers, Councilmember Susan Burgess from Charlotte, NC, and Councilmember Myron Lowrey from Memphis, TN, I will be hosting a caucus meeting of local elected officials here at the DNC meeting (which was held in December). As the elected officials closest to the people, Mayors and City Council members are playing an integral role in rebuiding the party. We know first hand the devastating effect that the Bush Administration policies have had on America's cities and towns, and how urgent it is to return Democratic control to Congress and the White House.

I want NOTHING to do with any party that chooses to put a lying scumbag like Moore in a position of authority. You might want to write to the DNC and let them know what you think about honoring our sorry excuse of an alderman with a position of importance.

RANDALL SHERMAN

Secretary/Treasurer, Illinois Committee for Honest Government

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

> Might renovating this building be considered a legitimate use of TIF money?

> Could some of the 'increment' generated for the Howard/Paulina TIF be directed toward the Wisdom Bridge building and arts group?

I looked into this a little bit while looking into the possibility of TIF funds being used for the Gale Park field house. Technically, the Wisdom Bridge Building is JUST outside the TIF, and in general, TIF money can only be used inside the TIF area. There is one exception: TIF money can be used for PUBLIC projects adjacent to a TIF, and can even cross the street:

" ... redevelopment project costs involve public property that is either contiguous to, or separated only by a public right of way from, a redevelopment project area ... "

This is the legal basis Daley used to spend Central Loop TIF money in Millennium Park, TIF money crossed Michigan Ave. So every TIF district is a bit wider at the edges than we think, at least with respect to PUBLIC projects.

Gale Park is public land, the Wisdom Bridge property is not currently. So TIF money could be used for the Gale Park Field house, but I don't think so for the Wisdom Bridge building based on what I know.

But there's a more serious problem with ANY new idea for the Howard TIF money. The Howard TIF was established 10/14/88. It is in its waning years. It is set to expire in 2011. The Howard TIF is behind in generating money. See Angela Caputo's excellent article in the News-Star "Measuring Up" link above. This is a problem because based on overly optimistic projections our home town agreed to make payments to the Gateway Mall team and sold bonds and made loans. So we are behind in our debt. At this point it is pretty clear that even with NO new projects, the Howard TIF will finish up in the hole.

Recall the Howard TIF beneficiaries include DevCorp North, James DiMatteo, Rudy Mulder, John Terzakis, Roxanne Gardner, Jay Johnson, and Paul Roldan, and it looks like membership in that exclusive club is effectively closed.

So I'm afraid any new idea for the Howard TIF money is deficit spending. This sad situation makes it all the more strange that Moore in an election year starts talking about TIF initiatives like job training in a TIF that for two decades didn't worry about job training. At the Powder Puff meeting at the Gale Academy, Moore said both that there was no TIF money available for building affordable housing, but moments later announced a new TIF-funded job training initiative.

Hugh said...

Sorry, I could not tell the story of Terzakis' Ashland properties without bringing in the Wisdom Bridge building. Terzakis strung the Wisdom Bridge Arts Project folks along, it served his purposes: hang on to the proeprty as long as possible, do nothing, wait for the eminent domain ship to come in.

I'd like to get back to a better understanding of what is going on with the "Lerner" properties:

If Moore was so hot to trot, why did he give Terzakis a 6 year leash?

Why break out the eminent domain whooping after only a year?

Is it because it's an election year, and we need a story for every vacant lot in the neighborhood?

Was the planned development process mismanaged?

Did Moore and Terzakis have a falling out of some kind, or is a big old wad of Howard TIF money just what Terzakis has been waiting for?

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