Local Organizations To Sue City Over Lincoln Yards Funding Deal

CHICAGO — Several local organizations plan to sue the City of Chicago after a funding deal was approved to finance infrastructure improvements around the proposed Lincoln Yards development. Earlier this month, the city council approved up to $1.3 billion in tax increment financing for Lincoln Yards 32 - 13.

Raise Your Hand and Grassroots Collaborative plan to file the lawsuit in Cook County Circuit Court.

Amisha Patel, Grassroots Collaborative's executive director, announced the suit in a press conference Wednesday. Patel said the city is misusing the TIF program, and keeping funding in an area that's "sandwiched between some of the wealthiest, whitest, most economically-vibrant neighborhoods in the City of Chicago."

"This plan includes the creation of the Cortland/Chicago River TIF district, a TIF district that will take $1.3 billion and keep that in that development, instead of having those resources available for schools, parks and libraries," Patel said.

She said the funding is needed in communities on Chicago's South and West Sides.

Under the current TIF plan for the proposed development, Sterling Bay would pay for the infrastructure projects, and then they would be reimbursed by new property taxes generated by the development.

In a letter sent to residents earlier this month, Ald. Brian Hopkins said the Lincoln Yards TIF will go to "neglected" infrastructure on both sides of the river.

"The TIF will be used exclusively to finance public works and infrastructure costs – including desperately needed roads, bridges and other infrastructure projects that currently do not exist – without diverting funding from current government sources," Hopkins said. "It is important to note the Cortland/Chicago River TIF district does not include any current residents."

"No funds will be used for private costs or to reimburse any expenditures not associated with public infrastructure or public benefits," the alderman said.

The Lincoln Yards proposal includes about 14.5 million square feet of residential, retail, hotel and office towers.

Sterling Bay has added more affordable housing to its $6 billion Lincoln Yards plan. The developer has agreed to pay a fee of $39 million, half of which would fund construction of about 1,000 affordable units across the city. The other half would fund 15 years of rental subsidies for low-income families through the Chicago Low Income Housing Trust Fund.

Other updates outlined by Sterling Bay have included increasing publicly-accessible open space and removing more than 100 floors of building height. The developer has also dropped its plan for entertainment venues and a 20,000-seat soccer stadium.

Mayor-elect Lori Lightfoot secured an agreement earlier this month with the developers to increase the amount of construction work that will go to women- and minority- owned businesses.

Read also:

• City Council Approves Funding Deal For Lincoln Yards, The 78
• Lincoln Yards Vote Postponed After Lightfoot's Request
• Sterling Bay Reveals Latest Lincoln Yards Plans To Community