$62 Million in TIF Subsidies for Big Box Retailers

Theoretically, subsidies to developers from property tax revenues collected in Tax Increment Financing (TIF) districts are supposed to be based on enhancing the economic development of specific communities and creating business and job opportunities for residents of these communities.

So far, however, the City of Chicago has given out nearly $62 million in TIF subsidies to national "big box" retailers as incentives to develop stores in Chicago.  Among these deals:

• $6.3 million to Home Depot to develop stores in the Chatham Ridge and Northwest Industrial Corridor TIF districts.
• Nearly $5 million for the redevelopment of the Lincoln Village Shopping Center, some of which went toward development costs for a Borders book store.
• $4.5 million for a retail center at Roosevelt and Canal anchored by a Dominicks food store.
• $3.7 million for a development at Irving Park and Cicero to develop a Jewel food store and a Marshalls department store.
• Another $7 million for a retail center at 95^th and Stony Island Avenue anchored b by a Jewel Osco
• $7 million to redevelop an old Goldblatts store near Broadway and Lawrence, for a new development anchored by a Borders book store. 
• $26.5 million for redevelopment of the Brickyard Mall, to include a Target, Lowe's and Jewel.
• TIF assistance of $1.8 million to a developer to purchase land at 2200 W. 95^th St for a shopping center, anchored by a Border's book store.
• $225,000 TIF subsidy to Starbucks to construct a drive-through Starbucks at 71^st and Stony Island Ave.
   

These big box retailers are usually national chains, with little or no ownership interest in Chicago.  In addition:

• Although developers receiving TIF subsidies sign agreements obligating them to certain promises, such as hiring from the community and honoring MBE/WBE requirements, these agreements are often not closely monitored by the City.
• More importantly, such redevelopment agreements are made with the City; they are not Community Benefit Agreements made with the local community that will be most affected by the redevelopment.
• Wages and benefits for these retail jobs are generally far less than the family-supporting industrial wage jobs of the manufacturers that were formerly on these sites.  Moreover, developers and companies receiving subsidies do not have to report details on wages and benefits they provide.
• Long time local business stakeholders and community residents often object to big box retailers since their presence can kill off smaller, independent businesses