City Broke? Not Even Close
- When aldermen rushed to approve a $1.3 billion tax subsidy for the Lincoln Yards megadevelopment in April, the conventional wisdom at City Hall was that then-Mayor Rahm Emanuel wanted the deal done before he left office to burnish his legacy as a leader who made Chicago boom again.
For developer Sterling Bay, there was uncertainty about reopening negotiations with incoming mayor Lori Lightfoot, who had expressed reservations about the deal for months.
But the clock also was ticking for another reason. If Emanuel and Sterling Bay had waited much longer, the development no longer would have qualified for its record-high taxpayer subsidy, a Tribune analysis has found.
To get the money, the area had to meet at least five state standards to be considered “blighted." The city could then designate it as a tax increment financing district. At the time of the vote, the area met the bare minimum.
$1.3 billion - with a B - given away. And Groot about to tell everyone Rahm stuck her with a $1 billion shortfall.
Makes perfect sense.
Makes perfect sense.
Labels: money questions
posted by SCC at 12:04 AM
65 Comments:
It's all bullshit.
The politicians are criminals who are lying to the people they steal from.
OT
Cluster In Dayton
Dateline: Monday night, ~7:15PM, 8-26-2019
2 kids killed by stolen police car near Dayton Metro Library,
just blocks away from the recent mass shooting site where
9 lives were claimed.
Stabbing suspect stole Riverside Police car and totaled car
in nearby Downtown Dayton. Celebrities in town previous
day (Sunday) for benefit concert for shooting victims.
How sick! This city blows money left and right. Broke my ass! How about put some of that money into the pension fund?
Thank god J.B. Pritzker is not personally invested in Lincoln Yards...
"Sterling Bay’s main investors for Lincoln Yards are New York-based J.P. Morgan Asset Management and Dallas-based Lone Star Funds. The involvement of those two financial behemoths illustrates how Sterling Bay’s track record has caught the eye of the deep-pocketed investors outside of Chicago.
Previous projects were backed by two of Chicago’s wealthiest families: the Crowns, who made their billions investing in companies such as aerospace and defense giant General Dynamics; and the Pritzkers, heirs to the Hyatt Hotel fortune. (Gov. J.B. Pritzker is not an investor.)"
ALL IS LEGIT
https://www.chicagotribune.com/columns/ryan-ori/ct-biz-cb-who-is-sterling-bay-lincoln-yards-ryan-ori-20190320-story.html
"What is $1.3 billion between friends?" ~ Chicago's connected having a chat on how best to carve up the taxpayers' contributions
TIF takes one-third of our property taxes into a secret account. There is no over site-over where the money goes, and the Mayor can spend it anyway they want. We have no idea how much money is in the account because we can not know. It was over a billion in 2017 (last time reported). Chicago pay your employees and take care of the city not the millionaires. Amazing how the deficient is about one billion and the TIF fund is about that or more.
A tourist asked me if procuring/pandering was illegal in Chicago. In light of how Tax Increment Financing operates for this city I think the only correct answer is NOPE!
WTF, this has got to be a joke. No politician could be that stupid as to let this go through and then raise taxes and freeze hiring! Oh wait, she and her alderidiots are Democrats in Chicago. Never mind.
When it comes to TIFs and shady real estate deals being approved at taxpayer expense... We are Though The Looking Glass, Chicago. This is Mad Hatter style now.
https://pbs.twimg.com/media/EBuD4GvUYAAy0MR.jpg
Down, down that rabbit hole... Thanks Rahm. Thanks Groot.
So cancel the deal and we now have a 300 million dollar surplus. There you go groot, budget problems solved and I won't even charge you for a consulting fee!
Interest in using taxpayer money to fund Lincoln Yards is here XxXxXx ($$$$$)
Funding of pensions is here:
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Pensions... Maybe... Probably not... Echo/Echo/Echo... Lonely at the bottom eh?
Of course she approved it. Lots of bad things can happen to someone that stands in front of someone else receiving a Billion Dollar windfall.
There is plenty of money around 30 to 40 percent of revenue goes into TIF Districts stop funding them a few years to balance the budget and pensions keep calling your Alderman!
She is just another cog in the Chicago Democrat Machine.
Ironically , nobody seems to notice who owns live nation (concert venue at sterling bay). J.B. Pritzker and Ari Emmanuel. Ah yes, everything’s fine.
Nah, the city is really broke. They're just playing with others People's money so they don't give a shit how they spend it and this just shows how blatant they are about it too
don't forget about the the 9 billion for the new terminal at Ohara. do the tax payers need a new terminal.
And with Lincoln Yards a mile or so away, the city builds a basketball arena a few blocks from McCormick Place for the DePaul Blue Demons basketball team. Makes perfect sense, right?
Groot seeks to remind you: Her's is bigger then yours.
(that $220k redecorated office that is)
Cause and effect and order of operations: The city is $1 billion extra in the hole. However it is in debt only after Groot turns over the taxpayer's dosh to the land developers who are tied to the IL Governor's family.
No worries... A casino is coming soon to wash away all sins and budget shortfalls.
Ah yes, just another example of the Chicago Way in action. Actually this also brought into play Chicago Values, or lack of value until reappraisal. Great work to fast track the give away.
She needs to be put into the poorhouse to work
off her debt. That's how Charles Dickens learned
to be a bootblack. And baby, Dickens could have a
field day with her character. Who could ever top Scrooge?
Only Dickens himself.
3:38 AM COG
Yeah, you're right, but somebody needs to throw
a sabot (that's French for shoe) into that machine.
Lori was all in with Rahm on the sterling bay rip off intended to pad the alderscum campaign funds like ex con Burnett and fake hair Hopkins and especially Rahm when he runs again. Lori is a lying racist hypocrite.
Blighted area? Time to chuckle.
Now, kees me you fool!!!!
Things that make you go hmmmm.
I’ve said it many, many times: the city doesn’t have a revenue problem it has a fucked up priority/spending problem.
Hey SCC, just a respectful but slightly different point of view:
No, there is not $1.3 billion of available money NOW being spent by the City that could go into the annual budget. The $1.3 billion is what the City expects to INVEST in real, tangible, things like bridges, roads, streetlights, sewers, parks, and sidewalks in the Lincoln Yards TIF area, over the course of the next decade.
In return, the City expects to eventually collect more than $2 billion in taxes as property values increase in that part of the city.
Yes, the TIF set-aside for Lincoln Yards is too large and makes for higher profits and juicy skim for everyone connected to Rahm. Definitely business as usual in Soviet Democratic Chicago, just like for Obama's Pyramid to Himself.
But, here is what the SJWs hate about TIFs: they are also a way to keep ALL the taxpayer money from going to Jamal and Jesse and all the people who build nothing.
Without some kind of deal to keep tax money invested in the neighborhoods that actually do pay taxes, where would it go? It would all go down the baby-momma dude inc welfare sinkholes that make this city notorious worldwide, and make being a cop so dangerous and discouraging here in certain districts.
Y’all don’t seem to understand, the City NEEDS higher taxes of maintain those TIF Gifs.
Just because all y’all zipcodes ain’t getting no TIF funding for yo office space renewal y’all got no right to pick on our historical mayorette.
Expiring TIFs and surpluses are just being rolled into pet projects...residential mainly and that leads to colonization of Dem voter blocks.
The TIF accounts are well funded and regular with its contributions unlike pension funds.
Shortshanks and Rahm and appx 48 entrenched Alderthieves just kept on parlaying the TIFs all the generous of donor developers.
Did the city really need a 606 Trail? Or a LSD pedestrian flyover? Where’s all the revenue from Northerly Island, Millennials Grant Park?
And what about that $50 mil Grootie expansion to the $95 mil RahmAcademy?
21st Century necessity or developer scam?
Can’t pull out of that Contract, the land was sold already.
We won’t ever see any return on $1 Bil Sterling’s Bay Lincoln’s Yards just like we haven’t seen any return on the economic engine called Ohare Modernization that’s been going on spending (Dem gubmint grants) well before 1999. Just the brokers, who already made their upfront commissions and land owners didn’t fair as well with threats of take over eminent domain.
No jobs but plenty of cheaply constructed housing.
CPD will see poor mouth cuts and budget adjustments.
But it a good bet only CPS to get the green light nod on TIF dipping and tapping.
PricklyToad GrootFoot is just now getting to dip her webbed toes into the swamp of high finance and political action campaign funding, real estate always pays lasting dividends.
"Stick 'em up."
"How much do you want?"
"How much do you have?"
Don't forget the 93 million for the 606 Bloomingdale Trial. What a waste of money spent on old railroad tracks made into a fuck'n jogging path. UNBELIEVEABLE
That would have solved the pension problem but then no kickbacks to the crooked Chicago and terminallinois crooks.
I do not want to hear another word from the Mayor or her 50 minions about how poor the city is. Not when she is handing out raises to teachers again, remodeling her office and basically promising the world to certain parts of the city. We pay enough to live here and the quality of life has deteriorated extremely. Crime is out of control and all she does is blame the police. Start budgeting like a business. Suspend all capital projects until things improve. USE THE TIF MONEY TO HELP PAY THE BILLS! Don’t be coming to the taxpayers and citizens with more of your bullshit. We’ve had enough and our politicians cannot seem to read the writing on the wall. Fed up taxpayer and citizen here.
Let’s not forget the city’s Emergency Fund where half of the Skyway’s billion dollar sales price was deposited for an ‘Emergency’. That money should still be there earning interest, as no mayor has, since the sale of the Skyway, declared an Emergency. Also Gov. JB could make a portion of the 3 billion dollar Illinois Tollway Surplus funds available to municipalities in low interest loans as the Tollway never fully spends the infrastructure budget, which is replenished by tolls collected daily. Three Card Monty Lives!
Of course she approved it. Lots of bad things can happen to someone that stands in front of someone else receiving a Billion Dollar windfall.
8/27/2019 03:15:00 AM
Exactly. It may not look good but growth in the city helps us in the long run.
Live Nation Entertainment Inc. is a publicly traded company. It trades under the symbol LYV. You possibly own some of it too, through mutual funds you hold.
This story did make me smile. Not because of the horrendous mismanagement( and lets face it, theft )of our tax money, but because it got me thinking of that slimy little ballerina. When he seized the reins of power over Chicago, there was talk of this placing him in the position of actually running for president. That would be a bigger disaster than his shithead master, obama, being in power.
So anyway, it makes me smile that Rahm's venality and hubris was exposed as being the failure we all knew it would, and took the wind out of the sails of that particular pipedream. A grateful America thanks you! a retired 31 year policeman.
It’s unfortunately a bit more complicated. The city isn’t giving the developer 1.3 B.
The developer is funding its own development, including doing work on behalf of the city (building parks, reconstructing roads, moving sewer lines, etc). When the developer makes 10s of billions, and that activity generates a one time bill of 2B in tax revenue, the city is giving them a credit of 1.3 B against that tax bill - for the services they’ve rendered to the city - and yes, to help encourage development which here- will result in sustainable YOY tax revenues exceeding the 1.3B - from property taxes and increased retail sales.
Historically, this is one of the best plays a budget strapped city has to get itself back in the black without taking on more municipalities debt. That 1.3B is only applied against what the developer would owe, and it only happens if the developer completes a project, improves infrastructure which will give the city more revenues in the long run.
The concern here isn’t about how broke a city is - it’s whether the developer would have still built it for 1B in credits vs 1.3, or what else the city could have gotten. Sterling Bay has actually been a good partner in this case, and has even built more for the city than it was budgeted to take on - namely park space for the public
Need money , $20 city vehicle medallion for all cyclists that use traffic lanes , bike paths provided by city of Chicago .
Another way to save lives , prevent injuries to cyclists 🚴♀️ , ticket them for disobeying traffic laws , not having front and rear lights at nights.
It will generate millions 💰💰💰
No vehicles allowed parked overnight on any city street that does not display a current city vehicle license , maybe 0100-0600hrs.
Have meters in every park , lake front parking lot for non residents , vehicles not displaying a city vehicle license .
Few more million .
Reduce Alderman to under 20 , put it on ballot , it will pass 95% to 5%
Blogger Was that a SPEEDBUMP?! said...
Ironically , nobody seems to notice who owns live nation (concert venue at sterling bay). J.B. Pritzker and Ari Emmanuel. Ah yes, everything’s fine.
Interesting point here: it actually was a huge issue and the city told sterling bay to f-off on the original requirement that would have restricted any of the spaces in the new development from hosting music events. SB wanted a monopoly on concerts in the area, and this is one of the issues that was raised at a community review and rejected and removed from the plan. Sterling bay still gets to keep their exiting venue, but it will have to compete with the city owned space they are now building
23% raise for teachers over 5 yrs, I expect nothing less. sgt.'s union wake up. that's 4.6% a yr. and there gonna strike.
Anonymous said...
Thank god J.B. Pritzker is not personally invested in Lincoln Yards...
"Sterling Bay’s main investors for Lincoln Yards are New York-based J.P. Morgan Asset Management and Dallas-based Lone Star Funds. The involvement of those two financial behemoths illustrates how Sterling Bay’s track record has caught the eye of the deep-pocketed investors outside of Chicago.
Previous projects were backed by two of Chicago’s wealthiest families: the Crowns, who made their billions investing in companies such as aerospace and defense giant General Dynamics; and the Pritzkers, heirs to the Hyatt Hotel fortune. (Gov. J.B. Pritzker is not an investor.)"
ALL IS LEGIT
https://www.chicagotribune.com/columns/ryan-ori/ct-biz-cb-who-is-sterling-bay-lincoln-yards-ryan-ori-20190320-story.html
8/27/2019 01:10:00 AM
Every time you drink a can of Royal Crown Cola you make the Crown family richer!
Anonymous said...
Of course she approved it. Lots of bad things can happen to someone that stands in front of someone else receiving a Billion Dollar windfall.
8/27/2019 03:15:00 AM
Remember what happened to Michael Scott they couldn't even wait until his family was eligible to collect his life insurance before they suicided him!
Anonymous said...
There is plenty of money around 30 to 40 percent of revenue goes into TIF Districts stop funding them a few years to balance the budget and pensions keep calling your Alderman!
8/27/2019 03:20:00 AM
My Alderman O'Shea only cares about diversity
@8/27/2019 03:57:00 AM
The public is noticing more and more. The whole matter almost glows in the dark.
Always seems to be the same chosen few getting all the plumb (ans suspect) sweetheart deals. Same small tribe of jokers taking the win while the public and their tax bills take the loss. Every single time!
The verdict? Pure coincidence! What else could it be? Nothing to see here. No need to look under the hood. Now we can all stop noticing.
Money for me... not for thee. The Chicago dem motto.
This surprises who or Whom? Wake the fuck up it is the Chicago Way all over again. Just business as usual. Politicians all paid off to vote right and pass it.
Why stop at 20 dollar licence fee why not 50 or 100. Plus no parking bikes chained to poles must use city bike racks for 5 A DAY PARKING FEE.
Anonymous said...
Let’s not forget the city’s Emergency Fund where half of the Skyway’s billion dollar sales price was deposited for an ‘Emergency’. That money should still be there earning interest, as no mayor has, since the sale of the Skyway, declared an Emergency. Also Gov. JB could make a portion of the 3 billion dollar Illinois Tollway Surplus funds available to municipalities in low interest loans as the Tollway never fully spends the infrastructure budget, which is replenished by tolls collected daily. Three Card Monty Lives!
8/27/2019 10:41:00 AM
Lol they were supposed to get rid of Tolls once the road was paid off now you are telling me there is now a 3 Billion surplus unreal?
Our Savior is out there. He’s coming soon. The one who can help us. Getting stronger every day. Breathing that fresh, clean mountain air as he does his roadwork......in anticipation of the long grueling fight ahead. Tan, strong, rested.......and he will be ready. I don’t have to tell ya, but I will. BLAGO!
We should start an ANOV blitz against bikes.
Seems like the TIF money is GROOT'S personal bank account to do as she pleases. Why not deposit some money into the police pension fund?
“Anonymous said...
Don't forget the 93 million for the 606 Bloomingdale Trial. What a waste of money spent on old railroad tracks made into a fuck'n jogging path. UNBELIEVABLE”
Because it’s not true. Bulk of the money was raised privately, and it took well over 10 years. I’m sure somebody told you that figure and then you ran like the wind with it. Do some research.
Chicago will thank you, and you will thank yourself for not being such a mope.
"improves infrastructure which will give the city more revenues in the long run."
Like the parking meter deal or Skyway?
This is why the city will NEVER declare bankruptcy. Then they would have to open the books and we would see how much the city has after all
@8/27/2019 11:20:00 AM
Get out of here you shill! That is BS, what you wrote. If TIFs were not big deal, why the rush to get them before the deadline to apply them lapsed? Either way Lincoln Yards was golden so why even care about TIFs? Ha! TIFs were/are the prize, not the actual development.
Lincoln Yards with taxpayer dollars to buttress it = win
Lincoln Yards with taxpayer dollars to buttress it = break even at best
If this is such a grand venture, why not private finance it all and not even seek TIF involvement? Keep all the spoils, even with a development loan taken, and enjoy the grand ROI. You;d have to turn away some investors maybe! Such a sweet plumb?
Hell, a simple mezzanine loan would bail out the golden project if really needed down the road. Why would that even be an issue, if the project is so solid?
Pull out the TIF and Lincoln Yards is a dog. Enough public funds make crappy deals into sweet enough deals, for a select few. Noticed all the cuts and revisions (Soccer pitch gone, promise for more parks - only promises-, concert hall downsize etc) thus far to the proposal?
Notice no one in Silicon Beach is seeking government gibs (in TIF style format) for the next actual big project which might turn into something huge? Keep the funding private and the windfalls private but the actual killer ideas. In Chicago, the public money goes toward the windfall of a few connected sons of bitches.
Something will be built and it might even be nice. So what? $1.3 billion taxpayer dollars nice? I'd rather not blow the $1.3 billion in that manner. Total screw around.
The $95 million projected 606 waste of money, $50 million came from The Federal Congestion Mitigation Air Quality or CMAQ Grant (FEDERAL TAX MONEY),$20 million private funding, the rest was paid by State,County,and local governments.
A resident should challenge the validity of the TIF District in court. To have a blighted TIF district, you need at least 5 of the 13 TIF eligibility factors. My guess is that someone can challenge one or two factors and win. $1.3 B is ridiculous - sounds like one of the tiny dancer’s friends was rewarded big time!
Anonymous said...
"improves infrastructure which will give the city more revenues in the long run."
Like the parking meter deal or Skyway?
8/27/2019 09:08:00 PM
Not much traffic on the skyway just bill the people who don't pay like the tollway instead of everyone just going through breaking the gates.
Paying existing bills isn't sexy or fun. There isn't the same opportunity for graft depositing Public money into pension accounts.
Programs. That is where the money is. It has to be a New Program that they initiate for maximum gibs. Save the Parks, Recycle, Bike Lanes...all things that sound 'progressive' and good for the Community in the surface, but carry heavy price tags in the future.
So can the city just let the pensions go bankrupt since the city itself can’t go bankrupt?
Another example of why the 'Homeless' are allowed to exist. All it takes is a few tents and poo piles and 'Blighted' credits are forthcoming. Someone is always making money at the expense of others and the professional drug addicts are just another tool for the rich to get richer
So they give away 1.3 BILLION that money would go far toward pensions and maybe even pay retiree health care. But this is Chicago that won't happen
I want to see open books. What is Chicago's total income per month, and what is Chicago's total expenses per month? GROOT won't show this. What is she hiding????
GROOT will give her Chicago Address Speech today, Thursday, 29 August 2019. GROOT wont say what is Chicago's income per month and what is Chicago's expenses per month. This speech will sound more like a campaign speech rather then solutions to the budget!
Don’t worry gov fat ass will get an envelope from someone
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