Uptown Coalition for Responsible Development

One of the big draws to the Montrose-Clarendon site is the availability of Tax Increment Financing funding, that is, a taxpayer subsidy to the developer. Theoretically, this subsidy should result in a major community benefit, however, that would not be the case under the current Montrose-Clarendon proposal from Sedgwick Properties. Of the $31 million Sedgwick is requesting, and that you would be paying, the community receives back only $6 million for partial Clarendon Park fieldhouse renovations. Here is a table outlining the rest of the impact of the Montrose-Clarendon TIF on your tax dollars, and on city services funding. The comparison is to the currently proposed non-TIF Halsted-Bradley development.

Tax Impact Comparison of Proposals Submitted by Sedgwick Properties for Montrose-Clarendon and JDL Development for Halsted-Bradley	Sedgwick: Montrose-Clarendon	JDL: Halsted-Bradley
$$ in T.I.F. Funds Paid to Developer to Construct Project	$31,000,000	$0
% of Total of Project’s Funding to be Supplied by Taxpayers	15%	0%
Taxpayer Supplied T.I.F. $$ Used to Pay Developer’s Required Contribution to Affordable Housing Trust Fund	$12,400,000	$0
Private Financing $$ Paid by Developer as Required Contribution To Affordable Housing Trust Fund	$0	$2,500,000-$3,500,000
% of TIF Funds Payable Prior to Project Completion	Approx. 90%, or $27,900,000, Before Work Even Begins on Sites 2 or 3	Not Applicable
Year When Developer/Landlord First Begins Paying for Schools, Libraries, Police and Fire Protection, and Other Essential City Services Used by Building’s Residents	2035	2012
Estimated Property Taxes Paid by Developer/Landlord to Support Building Residents’ Use of Essential City Services	$0 During TIF Period (2012-2035)	$1,000,000 Annually
Tax $$ Paid by Developer/Landlord to Support Building Residents, Use of Essential City Services (During Period 2012-2035)	$0	Their Fair Share, Like You and Me

Minutes for City Government Meetings Related to Montrose-Clarendon TIF

TIF Joint Review Board - April 2, 2010
Community Development Commission - November 5, 2010

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