Thread by @BillGDocumenter

Hi, I'll be live-tweeting this morning's Chicago City Council Committee on Finance meeting for @CHIdocumenters #CHIdocumenters

This morning's 10am meeting is a public hearing regarding the boundary amendment of Chicago's Enterprise Zone I.

No vote will be taken in this public hearing. You can find the meeting notice here (PDF): chicago.legistar.com/View.ashx?M=E1…

Toward the bottom of the notice are virtual meeting details. This public hearing may also be live-streamed here: livestream.com/accounts/28669…

Some background: Chicago has six Enterprise Zones. The primary purpose of an Enterprise Zone program is to stimulate economic growth and neighborhood revitalization by offering state and local tax incentives to companies expanding or relocating within depressed areas.

More info on the Enterprise Zone Program: chicago.gov/city/en/depts/…

Here is a map of Enterprise Zone 1 (PDF): chicago.gov/content/dam/ci…

The Zoom meeting and stream are active: livestream.com/accounts/28669…

Alderman Scott Waguespack kicks off the meeting at 10:02am.

Roll is called, establishing a quorum (24 members present). There are about 16 people connected to the livestream.

Waguespack notes that a notice regarding this public hearing was published in the Chicago Sun-Times.

Waguespack asks attendees if they would like to participate in public comment.

1. The petitioner for the boundary change notes he will defer his comments to @ChicagoDPD.

This concludes the public comment period.

Beth McGuire from @ChicagoDPD presents on the boundary expansion. This would add an area of approximately 3 acres, upon which two towers would be constructed.

DPD slides continued.

Slides continued (couldn't grab allow them). The last time Enterprise Zone 1 was amended was 2014 to accommodate two new developments around Roosevelt Road.

McGuire says Enterprise Zone 1 was established in the early 1980s.

Ald Tunney has been asking why DPD wants to expand the Enterprise Zone now and why it has been done in the past. Tunney says that the Ogden Ave area has already been seeing increased development recently.

Waguespack says Enterprise Zone 1 was previously expanded The Maxwell at Canal/Taylor/Clinton and a UPS property.

The developer, Warren Sloniger, says the Illinois Medical District has a need for housing. They purchased the building on the site and did a complete gut rehab. He says the cost of construction is high, but they cannot charge same rent as in areas such as the West Loop.

Sloniger says that Enterprise Zone tax incentives will help offset construction costs.

Asked by Ald Smith, Sloniger says existing building has affordable housing, but two new buildings will only have market rate.

Ald Austin asks if any other EZs are being expanded. DPD says no.

Ald Moore says the expansion area already appears to be booming and asked McGuire from DPD to discuss the process for choosing sites and projects for zone expansion. McGuire says the state has to review and approve boundary expansions.

McGuire says that the developer suggested this project could not move forward without the tax incentives provided by the Enterprise Zone.

Waguespack notes that aldermen do not have a final say in this matter. The zone expansion must be reviewed and approved by the Illinois Department of Commerce & Economic Opportunity (DECO).

DPD says existing building has 252 units (53 affordable housing). Two new buildings will have 283 and 117 units (no affordable housing).

Sloniger says market rate rent is about $3.20 per square foot. Tax savings would be about $2 million across both projects, and just under 500 jobs would be created.

Echoing comments from Sloniger, Ald Ervin says IMD is in need of additional housing. The proposed project is in Ervin's ward.

DPD says that to amend an Enterprise Zone, the new property must be contiguous to the existing zone.

McGuire says that the process of amending an EZ can take 5-12 months.

Quick note: There are 38 folks connected to the livestream now.

Waguespack says the EZ boundary amendment will by voted on in City Council.

Ald Tunney asks if there is a required duration for the developer to hold on to the properties added to an EZ. It's not clear if there is. Sloniger points to a number of their developments and says their reputation is that they hold on to their properties.

Waguespack adjourns the public hearing at 10:42am.

This concludes my coverage for @CHIdocumenters. #CHIDocumenters

Please see the Chicago City Council's website for more information. Reply to this thread or DM me with any questions.

P.S.: As pointed out by @ChiBuildings, Darren Sloniger is the representative for the developer mentioned above. I had mistakenly typed Warren instead of Darren.