The Dirt Lawyer's Blog Archive

Is this what TIF money is meant for ? Moving Willis, a company that got a great deal at Sears Tower PLUS naming rights, from three downtown locations to one consolidated one? Does anyone seriously think they are moving to Oak Brook or Schaumburg? Or is this a condition to the lease? Are there better ways of spending money? Or is this proposed subsidy a good thing for Chicago and money well spent? I am a fan of good TIFs, but I'm not sure whether this is a good one. Perhaps others have opinions more informed than I.

Let's throw a little more money at a problem: namely, Block 37. Now we're looking at another $12 million to help pay for a Loews hotel there. The money will also apparently help pay for CTA cost overruns , which is apparently going to cost some $320 million. But let me say this: my gut reaction is that this is a good use of TIF money. Block 37, face it, is a showcase. We took this long to figure it out, and kudos to Freed for coming up with a good use. I like the idea of a hotel there.

(With apologies to the late, great Chicago alderman Paddy Bauler....) The Civic Federation feels we need more information and public input on tax increment financing. According to this story , the Federation feels that TIFs are an important tool but need more transparency in how they are done and what they accomplish. In Chicago, "$242.6 million in public subsidies generated $1.1 billion in private investment — a more than 4-to-1 ratio-in the Central Loop TIF district." Not bad, though the Federation questions how much of that development would have been done without TIFs. I have been part of several deals involving TIFs in Chicago, and I don't think any of them could have been done without some help. And they've been, by and large, very successful projects that have brought jobs and renovated blighted buildings. That does not mean I disagree 100% with the Federation. I have seen some deals, typically outside Chicago than in, that have a questionable benefit for...

....uhhh..... given the mayor's past love for wrought-iron, about 103%? Actually, if some money is needed to preserve the Louis Sullivan masterpiece, I say go for it. Oh. Here's the link . You will also find dirt on tenant negotiations and the financing.

Greg Hinz wrote an interesting op-ed questioning the need for TIF funds for the Old Post Office and Union Station projects when the CTA is doing so poorly. I know the benefits of TIFs, but I also see his point. It comes down to the cost-benefit analysis. And I also wonder how the CTA spends its money. In any event, I encourage you to read the article and form your own opinions.