Ronald writes:

I'm so glad I live in a community that takes my hard earned dollars in the
form of taxes and help the rich to get housing in the city.  Now if MCDA
could manage to help build housing for those of us not in the market for
high end condos like Grant Park.
Many of us make less than the median income in this city and would like to
remain living in the city, but are being priced out. Since were not below
50% of median were not low enough income to qualify for any programs to
build housing for us.  The middle people get squeezed out again.

Nick Responds:

I completely appreciate your concern.  The city definitely need to make sure
the investments are the right ones.  Interestingly though, Grant Park for
example received NRP money also.  The Elliott Park neighborhood has been
very poor for a long time and the neighborhood association wants market-rate
housing and felt it was a good investment to put NRP money into.  So a poor
neighborhood is voluntarily putting money toward mid to high end condos
(160k-400K if I am not mistaken)

It probably is a good investment but only time will tell - For example Grant
Park should generate some $640K in property taxes per year ($2,000 per 320
units as an estimate) and obviously that number will increase just like the
rest of our property tax bills.  That is more than enough to cover the $7.3
million in TIF directly.  Having an additional 500-600 people in the
neighborhood should also spur private business development and other housing
that will also increase the tax base near the site.  So the net impact of
the TIF will hopefully increase the overall tax receipts to the city in
excess of debt service costs.  This excess can then be used to offset
increases in real estate taxes on more moderate valued properties or
increase services.  

Assuming the increase in property tax revenues in the TIF district exceeds
the TIF debt service, AND the project would not occur without the TIF
funding do to pollution mitigation, site assembly being preventatively high,
risk of building a project of that scope in a neighborhood that is poor,
etc., then the city should invest.  I don't know enough about the other
projects to say if this is definitively the case but for Grant Park it
appears that it is.

I'd be interested in your thoughts on this.

Sincerely,
Nick Frank
North Loop
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