27-Feb-19 – Sterling Bay has moved a step closer toward getting up to $1.3 billion in tax money to build Lincoln Yards. The city’s Community Development Commission unanimously approved Tax Increment Funding that would include the 55-acre site running along both sides of the Chicago River between North and Webster Avenues.

The windfall won’t be a done deal until the entire City Council gives its approval, which is expected sometime in the next month. If fully approved, the 168-acre Cortland/Chicago River TIF district would reimburse Sterling Bay for $490 million of infrastructure improvements including new roadways, bridges over the Chicago River, an extension of The 606 trail, 21 acres of river walk, a new Metra train station, and realignment of the Armitage/Ashland/Elston intersection adjacent to the Lincoln Yards site.

Sterling Bay says it plans to spend $6 billion to transform the now-mostly-vacant industrial riverside site into about 15 million square feet of office, retail, and restaurant space, and some 6,000 residential units. The project is expected to generate about 10,000 temporary construction jobs and 24,000 permanent jobs.

Acknowledging rising concerns about the size of Lincoln Yards, 2nd Ward Alderman Brian Hopkins said he decided to support the project after Sterling Bay dropped plans to put a major entertainment venue on the site along with a 20,000-seat entertainment and soccer stadium.

But in an odd twist, the site that was proposed to hold that stadium – the city’s former fleet management site that Sterling Bay purchased for $105 million – is right now still assessed at zero value. If that valuation holds, under a future TIF scenario, all “incremental” growth in property taxes would be captured by the TIF district. In other words, 100 percent of property taxes generated by the site would go to the TIF but for the 23-year life of the TIF district, none of the other taxing bodies, like Chicago Public Schools and Chicago Park District, would receive a cent in property taxes.

After promising a slow, methodical path toward a decision, Hopkins expressed impatience at the February 19 public meeting of the Community Development Commission.

“We need traffic and transit improvements in the neighborhood I represent today,” said Hopkins (left). “We need three new bridges over the Chicago River to accommodate the existing traffic conditions today. We can’t afford another delay. We can’t wait any longer. The time to act is now.”

Many residents are against moving quickly and frustrated by the seemingly sudden rush to get zoning and TIF plans through City Hall. Local activist Allan Mellis implored the CDC to either defer a vote or change the redevelopment plan to insure the TIF funds will benefit the community as well as Sterling Bay.

Other aldermen have issues, too

Two neighboring aldermen in the 32nd and 43rd wards are demanding the re-examination of property tax assessment reductions on 300 properties located within Lincoln Yards that were negotiated by the law firm of 14th Ward Alderman Ed Burke.

And 46th Ward Alderman James Cappleman has called on Sterling Bay to provide more affordable housing on the site. According to the Department of Planning and Development, funds would be allocated for affordable housing and job training in the Lincoln Yards area but not within the development itself.