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Proposed West Humboldt Park SSA Public Meeting Nia Center May 1, 2013.

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Presentation on theme: "Proposed West Humboldt Park SSA Public Meeting Nia Center May 1, 2013."— Presentation transcript:

1 Proposed West Humboldt Park SSA Public Meeting Nia Center May 1, 2013

2 Outline Karen J. Forté, City of Chicago SSA Overview Chet Jackson, WHPDC Planned 2014 services and budget Jewell Walton & Geoff Dickinson, SB Friedman Financial Analyses 2

3 Special Service Areas (SSAs) SSA #49 South Shore & Andrew J. Mooney Commissioner

4 What is an SSA? Special real estate taxing district, not an agency The City as the taxing body contracts with entities to administer SSA programs Funds additional services beyond the Citys general services in a defined district Tax % rate applied to EAV generates levy is DIFFERENT than the tax % increase on a tax bill from the SSA tax Enabled through state statute and city ordinance Called BIDs (Business Improvement Districts) in other cities; BIDs used worldwide

5 A good ROI Be smarter about sanitation services Help police reduce crime Help ex-offender re-entry Lease vacancies Support manufacturers Offer free wifi in SSAs Bring new visitors to Chicago Focus community advocacy & leadership Master planning Create accountability with taxing privilege Create more desirable neighborhoods Leverage City resources, both financial and human Achievements

6 Current & New SSAs 47 active SSAs 40 Service Provider Agencies 350+ Commissioners Oldest SSA created in 1977 70% increase in last 10 years 2013 Budgets = $27 million

7 CITY OF CHICAGO City Council (legislative) SSA Commission (advisory) Service Provider Agreement Service Provider Agency (Management/Admin) Subcontractors Assessor Treasurer COOK COUNTY HED Dept. of Law SSA Bank Acct City Comptroller OBM Other City Depts.

8 Typical Authorized Services maintenance and beautification activities new construction (e.g. minor streetscape improvements) coordinated marketing and promotional activities parking and transit programs area strategic planning business retention/recruitment initiatives building rehab activities (façade) security services other technical assistance activities to promote community and economic development. Work plans assembled annually from this list.

9 SSA Services Gallery


11 AESTHETICS Streetscape Maintenance & Landscaping

12 Advertising & Promotion

13 Façade Improvements & Pre-Development Costs

14 Parking /Transit/Accessibility SSA #10 Back of the Yards SSA #2 Belmont-Central SSA #5 Commercial Ave.

15 Safety & Security Types of security: –Foot Patrol –Surveillance Cameras –Store Security Rebates –Cell Phones for CPD –Coordination w/CAPS

16 Tenant Retention & Attraction

17 SSA Outreach & Communications

18 1)Tax Rate Cap (citywide average: 0.50%) 2)Annual Tax Rate (% may vary annually) 3)EAV (Equalized Assessed Value set by County) 4)Levy (citywide range: $60k - $1.3 million; ave. $250k) 5)Carry Over (unspent and/or previous years taxes) SSA Fund Mechanism: Common Terms Budget = Levy + Carry Over Example: $300,000 = $270,000 = $30,000 Levy = Tax Rate x EAV Example: $270,000 = 0.45% x $60 million (tax cap is 0.50%)

19 Legislation

20 Key Legislation for SSAs Illinois State Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act Governmental Ethics Ordinance

21 Legislation – City Ordinances Establishment Ordinance –Boundaries –Term –Tax Rate Cap –Commission: Qualifications, Appointment, Powers –Authorizes HED to enter into Mgmt. Agreement Levy Ordinance –Annual levy and associated tax rate –Budget (levy + carry-over) Management Agreement Ordinance Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act

22 Legislation – Service Provider Agreement Empowers agency to deliver services/spend funds Annual services and budget Commission approves expenditures and subcontracts Performance standards Conflicts of Interest Contract Default –HED Commissioner issues notice to improve –If no improvement, Provider subject to sanctions & termination Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act

23 Legislation – Open Meetings Act Public Notice –Beginning each year, prepare and give notice of meeting schedule –Agenda posted at Agency office and mtg. location 48 hours before mtg. –10-day notice in newspaper required for meeting changes Meeting Minutes –Meeting defined as gathering of majority of quorum of Commissioners –Include meeting date, time and place –Record Commissioners as present or absent –Summary of discussion on all matters proposed, deliberated, or decided, and record of any votes taken –Approved minutes open to public within 7 days –No SSA business can be done via email Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act

24 Legislation – Freedom of Information Act Public Records –reports, maps, letters, etc. received by the Commission –info in SSA related accounts, contracts, etc. –Exempt: invasions of personal privacy, personnel records, RFP prep, and actual bids/proposals until awarded –Service Provider records requested/archived by City FOIA Requests –Submitted to HED or Commission, NOT the Agency –7 days to reply –If info is readily available, provider should cooperate w/o a FOIA request Illinois Statute: SSA Tax Law City Ordinances Open Meetings Act Freedom of Information Act From the Chicago Tribune

25 Governance

26 47 SSA Commissions Seats range from 6 to 16; ave. 9 Typically meet quarterly Executive seats typically Chair, Secretary, Treasurer No more than 1/3 of Commissioners should also serve as Agency Board Members due to need for recusal – no overlap is recommended Governance - SSA Commissions

27 Establishment Ordinance creates Commissions –Extension of, not separate from, the City –Name of Commissions –Number of seats and term lengths for each commission –Appointment process –Chairperson term lengths Establishment Ordinance lists Commission powers –To Recommend Annually: Services Budget Service Provider

28 Establishment Ordinance authorizes creating bylaws for procedural operation SSA Ordinances supercede SSA bylaws Separate/distinct from Agency bylaws Negotiable items for each SSA: –Executive seats –Mtg frequency beyond Open Mtgs Act (semi-annually) –Attendance requirements –Voting –Committees –Amending bylaws Governance - SSA Commission Bylaws

29 Management

30 42 Service Providers (Agencies) –30 Chambers or Business Associations - 3 Development Corporations –3 Industrial Organizations –5 Human or Civic Service Organizations All are non-profits Staffing scenarios to manage the SSA: –Executive Director only or part of their time –Shared Agency/SSA staff person –FT SSA Program Manager –Multiple staff support –Outsourced administration Management – Service Providers

31 Commissioner –Dept. of Finance (DOF) Debt checks –Dept. of Consumer Services (DOCS) Child Support Indebtedness Checks –City & County Boards of Ethics Stmts of Financial Interest (mailed to commissioner after appointment) –Aldermanic & Mayors Office Application Review Service Provider –DOF & DOCS checks on President, Treasurer, Ex. Dir. –EDS for Agency Organization – list SSA subcontractors –Proof of Agency Organization in Good Standing with State Vetting Overview

32 2014 SSA Creation Timeline Winter 2012 June 2013 Oct-Dec 2013 By Dec 2013 Jan 2014 Fall 2014 Research & Consensus Building SSA Application Submittal Ordinances & Commission Appts. County Filing & Recording Tax Levy Collected/ Distributed SSA Begins

33 Making the SSA a reality Local champions Vision & Mission for the corridors Coordinated SSA Development Plan Financial support (reimbursable SSA cost)

34 Mission & Vision Statements* MISSION: The West Humboldt Park Development Council, Alderman Walter Burnett, Jr, and vested business and property owners, have combined their resources, in order to foster commercial revitalization, economic development and create a bold vision for the Chicago Avenue corridor and West Humboldt Park. The goal of West Humboldt Park Special Service Area (SSA) is to position the Chicago Avenue commercial corridor as a desirable, safe, pedestrian-friendly destination, which will attract residents and visitors more frequently, attract new businesses and commercial development, strengthen existing businesses, and improve the overall quality of life. VISION: The West Humboldt Park Special Service Area is being created to promote and encourage investment and revitalization along the Chicago Avenue commercial corridor. It is funded through a special property tax levy to provide supplemental programs and services to the area that are above and beyond the services provided by the City of Chicago. The general boundary of the SSA includes both sides of Chicago Avenue between Albany on the east to Karlov on the west. Planned SSA services include maintenance programs, marketing campaigns, security, and other improvements that would benefit the commercial district. These services support efforts to promote investment and revitalization along the Chicago Avenue commercial corridor and to improve the overall quality of life in West Humboldt Park. SSA funding is controlled and directed locally by an SSA Commission comprised of local business and/or property owners. All funding stays within the SSA for local direct benefit. * Draft 34

35 Chicago Avenue Existing Conditions Currently Chicago Avenue exhibits a need for increased clean-up, security, and investment. 35 Chicago & St Louis Chicago & Sawyer

36 Chicago Avenue Existing Conditions Currently Chicago Avenue exhibits a need for increased clean-up, security, and investment. 36 Chicago & Homan Chicago & Hamlin

37 Sample 3-Year SSA Budget $115,000 with 3% annual increase 37 Program Category Chicago Avenue SSA Estimated Budget Year 1Year 2Year 3 Advertising & Promotion 3,900 4,017 Public Way Maintenance 18,000 35,540 36,606 Public Way Aesthetics 5,000 5,150 5,305 Tenant Attraction/Retention 5,300 Façade Improvements 5,000 Parking / Transit / Accessibility Safety Programs 45,219 46,576 47,973 District Planning 30,000 10,000 Other Technical Assistance Personnel 12,781 13,164 13,559 Admin. Non-Personnel 2,000 2,060 2,122 Loss Collection (unpaid taxes) 2,000 2,060 2,122 115,000 118,450 122,004 SSA Budget 115,000 118,450 122,004 Tax Rate1.16%1.19%1.23% Tax Rate Cap1.50%

38 Proposed SSA Geography 38

39 Proposed SSA Parcels and EAV 262 total parcels Parcel Distribution EAV Distribution 39

40 Total tax base and TIF impacts 2011 Total EAV $15.3 million 2011 TIF Base EAV $9.9 million Because the SSA is 100% in TIF districts, SSA revenues can only collected from the TIF Base EAV 40

41 SSA Tax and Rate Cap Proposed Estimated 2014 SSA Rate This rate is for a $115,000 first year SSA budget. 2011 Tax Rate5.455% Est. Proposed SSA Rate1.159% New Est. Tax Rate6.614% Proposed SSA Rate Cap This rate is the maximum rate that could be levied during the SSAs 10 years. 1.500% 41

42 Effects of 1.159% SSA Tax Rate % Increase in Tax Bill21% Max. Tax Increase$6,700 Average Increase for nonexempt (annual)$860 Median Increase for nonexempt (annual)$440 42

43 SSA Effects on Tax Bill Total Taxes due will increase by approx. 20% next year. In this example, Total Taxes Due would be $5,742 An additional line will be added for the SSA with a rate of 1.159% and a maximum rate of 1.500%. In this example, taxes for the SSA would be $1,007. Total tax rate would increase to 6.614%. Each installment would be approx. 20% higher. 43

44 Summary Major areas of 2014 spending at $115,000 budget Safety programs Cleaning/public way maintenance Leverage source for grants etc. Future budgets Refine future budgets based on stakeholder feedback Plan to hold line of vendors as possible Some start up costs go away Potential future SSA services Marketing/Advertising Façade rebate program (coupled with SBIF) 44

45 Discussion 45

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