City Council Approves Funding Deal For Lincoln Yards, The 78

CHICAGO — Funding deals for financing infrastructure improvements around the Lincoln Yards and The 78 projects were approved by Chicago City Council Wednesday. The council approved the tax increment financing for Lincoln Yards 32 - 13, and The 78 development 31 - 14.

Earlier in the day, the Finance Committee approved up to $2.4 billion in tax increment financing to boost infrastructure around the developments, and the measure then headed to the full City Council.

The votes were delayed Monday at the request of Mayor-elect Lori Lightfoot. Since then, Lightfoot has secured an agreement with the developers to increase the amount of construction work that will go to women- and minority- owned businesses.

“There remains much more work to do in this regard, and I am hopeful we’ll be able to get there," Lightfoot said in a statement issued Tuesday. "Under the terms of both redevelopment agreements, we have confirmed that the City has additional controls over these projects, which I am confident will allow for us to further improve these deals and to bring community voices into the process going forward."

Lincoln Yards developer Sterling Bay and The 78 developer Related Midwest have agreed to increase participation by women- and minority- owned businesses to $80 million, to $400 million overall.

Lightfoot said she "will engage with the community and committed activists who have advocated forcefully for affordable housing, park space and the responsible use of tax increment financing dollars for many months.”

Protesters filled City Hall Wednesday to protest the City Council vote. Many say the TIF funds should go to schools, not developments.

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

The city said the projects would create about 10,000 construction jobs and 24,000 permanent jobs.

In a letter to residents, 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."

Hopkins said the TIF would fund the following improvements:

• realignment of the intersection of Armitage / Ashland / Elston Avenues
• extending the Bloomingdale Trail (606)
• three additional vehicular bridges across the Chicago River
• new roadways and utilities

"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.

The 78 development would include 13 million square feet of residential and commercial space.

Read also:

• Sterling Bay Reveals Latest Lincoln Yards Plans To Community
• Lincoln Yards Development Raises Concerns About Traffic, Density
• Latest Lincoln Yards Survey Reveals Drop In Community Support