10/14/2009 City Council Meeting

[Ted]

  I tried opening the agenda for the city council meeting from the city's website, but I get an error saying the file is damaged and cannot be repaired.

  Is anyone else getting that error?

Anyway, the full packet is available.  Here are the most interesting items:

1. City to issue $15 million dollar bond

2. City Bond Rating stays at A-

3. $150,000 workers compensation settlement (along with two other worker's comp settelements - one for $11K and another fo $40K

4. Renewal of agreement with BDC to manage the TIF districts

5. Opening a new position for a grant writer

6. Naming Home Avenue next to Morton High School to be "Ides of March" way

[n01_important]

How much does the BDC get for managing TIF districts?

[Thor]

I am not sure how much they get but from their website the have the following 11 salaried employees;
1)Tim Angell- Senior Project Manager
2)Sande Brennan- Office Manager
3)Amy Crowther- Director of Chamber Services
4)Marybeth Eurek- Special Events Coordinator
5)Sarah Giers- Receptionist
6)Bob Hodgetts, CPA- Accountant
7)Kurtis Pozsgay- Urban Planner
8)Judy Saraceno-Swenson- Administrative Assistant
9)Evan Summers- Project Assistant
10)Gerardo Zavala- Business Outreach Coordinator
11)Anthony Griffin- Executive Director

Thats not counting, not sure if they get paid or do this out of the kindness of their heart. 
President- Paul Zimmermann
Vice-President- Scott Lennon
Treasurer- Robert L. Anderson, Jr. of Anderson Ford
Secretary- Michelle Bednarz

And finally there are the board members. How many of these people have taken TIF funds, guess?
Dorothy Chiero - AWESOME Pest Service/ Cabin Fever
Esther Corpuz - MacNeal Hospital
Chester Hiller - Tiger O'stylies
Ron Hurst - Hurst's Berwyn Jewelers
Peggy Rose Kwiatek - Peggy Rose Academy of Dance
Alba Lovero - Berwyn Resident / Member/ mayor's mommy
Beverly Pastorek - Classic Touch Hair Designers / Berwyn Township member
Robert Powell - Citizens Community Bank
Anthony Turano - Turano Baking Company
Joseph Vallez - North Berwyn Park District11
Doug Walega - Douglas R. Walega Architect, P.C.

So what we have to ask ourselves, because the city council won't ask, is have we gotten the most bang for our buck?

[OakParkSpartan]

Thor,

Regarding your bang for the buck question.  Which thriving business district is the best example of the BDC's success?

[n01_important]

The board is probably volunteer but executive board most likely gets an expense budget.  So, lunch with each other gets expensed, trips, etc.. as long as they can claim BDC business was discussed.

Is it a non-profit entity?  If so, they must file taxes with the IRS that we can look up.

[Thor]

Thor,

Regarding your bang for the buck question.  Which thriving business district is the best example of the BDC's success?

Not sure there is one.
Ogden is dying, I can't see any major new business that has moved in within the last few years. At best what has happened on Ogden is TIF funds going to businesses already established. And of course there is the question on whether Anderson Ford will be paying back some of the major TIF funding it got over the years. Not sure if Robert Anderson Jr sat on the board while his business got funding.
Depot District, alittle more progress there. Toninis and Brandos both new businesses that got a crap load of TIF funds to open. Hopefully these business will pay off in the long run. LaNotte & Garvs both are established businesses that got some major TIF funds recently. New condos got some big time TIF funding and sit empty.
Cermak, I can honestly say I know little about other than what I read in the BDC promo material that gets mailed out to everyone. The Tapas and Wings restaurant both are new.
Roosevelt Rd is probably in the best shape, Bohdi and Wishbone are great additions.
I guess the problem I have is between businesses that already exist getting major TIF funding and TIF funding being spent for new business. Also TIF money being spent on festivals of which there was yet another one yesterday thrown by one of the latest members on the BDC board. 

[OakParkSpartan]

The board is probably volunteer but executive board most likely gets an expense budget.  So, lunch with each other gets expensed, trips, etc.. as long as they can claim BDC business was discussed.

Is it a non-profit entity?  If so, they must file taxes with the IRS that we can look up.

I don't think they get an expense account.  But you probably gave someone an idea down the road.

It is a 501(c)3.

I wonder if they have a long term plan for Berwyn on their website?  You know, for economic development.

[Ted]

...  And of course there is the question on whether Anderson Ford will be paying back some of the major TIF funding it got over the years. Not sure if Robert Anderson Jr sat on the board while his business got funding. ...

  Didn't Castle Buick also receive TIF monies in the 1990s to spruce up their place on Oak Park and Ogden?  If so, did Castle Buick ever re-pay any of the TIF funds it took before it ran away to Forest Park?

[n01_important]

The board is probably volunteer but executive board most likely gets an expense budget.  So, lunch with each other gets expensed, trips, etc.. as long as they can claim BDC business was discussed.

Is it a non-profit entity?  If so, they must file taxes with the IRS that we can look up.

I don't think they get an expense account.  But you probably gave someone an idea down the road.

It is a 501(c)3.

I wonder if they have a long term plan for Berwyn on their website?  You know, for economic development.

501(c)(3)?  I would've guessed 501(c)(6) but oh well.

Tax returns (Form 990) for non-profits are available in the IRS.  There is also a national website that let's you download non-profit info/returns to get previous years.  Due to fiscal years time periods, the returns tend to lag.  So the earliest you will find is 2006.

http://tfcny.fdncenter.org/990s/990search/esearch.php

Looking at their website, they have a 5 year plan... but someone needs to ask them how much 2003-2008 strategic plan helps Berwyn in 3Q 2009.  Annual report is from 2003 on their main page.  If you click around, you can find the 2006, 07, 08 annual reports.

Most non-profits use the annual reports as a marketing tool versus something with meaningful numbers.  This org. is no different.

[OakParkSpartan]

There is a link to the plan, but it is a dead link.

I wonder what was in the plan and whether they met those goals?

[Classof67]

Here's an April article from Reuter's that might say something to you about 2009 now that it's six months later:

City of Berwyn and Berwyn Development Corporation Complete 12 Development Projects...
Thu Apr 23, 2009 10:09am EDT 
City of Berwyn and Berwyn Development Corporation Complete 12 Development
Projects in 2008, Continue Innovation in 2009

BERWYN, Ill., April 23 /PRNewswire-USNewswire/ -- In partnership with the City
of Berwyn, the Berwyn Development Corporation utilized various economic
development tools to assist 12 different small businesses with expanding or
starting new businesses in Berwyn during 2008 alone. As the joint venture
continues its proven history of economic development in 2009, plans are being
drawn up to use an innovative new tool in the field of economic development.

As the not-for-profit economic development agent for the City of Berwyn, the
Berwyn Development Corporation (BDC) has driven economic development in the
City for over 25 years. To accomplish this mission, the BDC offers technical
assistance and financial incentives to stimulate investment from the private
arena. The primary incentives include Tax Increment Financing (TIF) and a
commercial loan program. Berwyn has four commercial corridors, and properties
located within these areas are eligible to apply for TIF funds for activities
including  but not limited to land acquisition and the hard and soft costs
associated with facade improvements renovations, and rehabilitation.

Despite the economic conditions in 2008, the BDC used TIF to recruit five
start-up companies and assisted with the improvement of five additional sites
for existing businesses. In total, TIF funds leveraged over $1.3 million in
total public and private development costs for business retention and
expansion efforts in 2008.

To assist with funding gaps, the BDC also offers a commercial loan program.
While in practice it is similar to conventional financing, the commercial loan
program accepts a higher risk tolerance than a traditional bank loan and is
ideal for start-ups and existing small businesses. The eligible uses for the
loan are flexible and can finance acquisition, working capital, equipment and
site improvements.  As the credit market has tightened its lending standards,
the program has been a popular alternative for Berwyn's small businesses that
want to continue to improve and expand their companies. During 2008, the BDC
used the program to retain one business and finance the start-up of another.

With a history of success and a clear vision for Berwyn's future, the BDC has
boldly launched a new program to incite interest in Berwyn despite the current
economic conditions. The "Direct Incentive for New Enterprise Recruitment"
(D.I.N.E.R) Program is designed to recruit retail to Berwyn by compensating
commercial brokers with a $3,000 cash payout for every lease or sale of vacant
parcels in Berwyn. When the value of the financial incentives are considered
along with the City's current capital improvements and planning efforts, the
direction is clear:  Berwyn is staged for growth.

"Berwyn provides great infill opportunities for new businesses along with a
great trade area for our existing businesses," Anthony Griffin, BDC Executive
Director, stated.  "We have several projects in the pipeline for 2009 valued
in excess of $44,000,000 and are seeking additional retailers, entrepreneurs
and developers to complement our current work," Griffin added.

For more information on Berwyn, please contact the Berwyn Development
Corporation at 708-788-8100 or visit www.berwyn.net.

The BERWYN DEVELOPMENT CORPORATION (BDC) is a public-private partnership with
the City of Berwyn that provides economic development and Chamber of Commerce
services to all segments of the Berwyn community.  The BDC focuses its efforts
on those activities that will improve the overall climate for local businesses
and residents, in addition to encouraging the development of new commercial
venues and employment opportunities. The BDC continually strives to develop
new programs, services and events that promote Berwyn businesses and the
community.


SOURCE  Berwyn Development Corporation

Anthony Griffin, Executive Director of the Berwyn Development Corporation,
+1-708-788-8100, agriffin@berwyn.net
© Thomson Reuters 2009 All rights reserved

[Thor]

Thor,

Regarding your bang for the buck question.  Which thriving business district is the best example of the BDC's success?

Not sure there is one.
Ogden is dying, I can't see any major new business that has moved in within the last few years. At best what has happened on Ogden is TIF funds going to businesses already established. And of course there is the question on whether Anderson Ford will be paying back some of the major TIF funding it got over the years. Not sure if Robert Anderson Jr sat on the board while his business got funding.
Depot District, alittle more progress there. Toninis and Brandos both new businesses that got a crap load of TIF funds to open. Hopefully these business will pay off in the long run. LaNotte & Garvs both are established businesses that got some major TIF funds recently. New condos got some big time TIF funding and sit empty.
Cermak, I can honestly say I know little about other than what I read in the BDC promo material that gets mailed out to everyone. The Tapas and Wings restaurant both are new.
Roosevelt Rd is probably in the best shape, Bohdi and Wishbone are great additions.
I guess the problem I have is between businesses that already exist getting major TIF funding and TIF funding being spent for new business. Also TIF money being spent on festivals of which there was yet another one yesterday thrown by one of the latest members on the BDC board. 

In defense of the BDC, could the issue be that there is just too many TIF districts for the BDC and the City of Berwyn to manage? Chicago aside are there other area munis that have more then 1 TIF district? If you put all the TIFs into 1 bucket and count all the new businesses and development projects do the numbers add up to success? Keeping in mind that they get more money based on the different TIF districts. 

[OakParkSpartan]

Thor,

Regarding your bang for the buck question.  Which thriving business district is the best example of the BDC's success?

Not sure there is one.
Ogden is dying, I can't see any major new business that has moved in within the last few years. At best what has happened on Ogden is TIF funds going to businesses already established. And of course there is the question on whether Anderson Ford will be paying back some of the major TIF funding it got over the years. Not sure if Robert Anderson Jr sat on the board while his business got funding.
Depot District, alittle more progress there. Toninis and Brandos both new businesses that got a crap load of TIF funds to open. Hopefully these business will pay off in the long run. LaNotte & Garvs both are established businesses that got some major TIF funds recently. New condos got some big time TIF funding and sit empty.
Cermak, I can honestly say I know little about other than what I read in the BDC promo material that gets mailed out to everyone. The Tapas and Wings restaurant both are new.
Roosevelt Rd is probably in the best shape, Bohdi and Wishbone are great additions.
I guess the problem I have is between businesses that already exist getting major TIF funding and TIF funding being spent for new business. Also TIF money being spent on festivals of which there was yet another one yesterday thrown by one of the latest members on the BDC board. 

In defense of the BDC, could the issue be that there is just too many TIF districts for the BDC and the City of Berwyn to manage? Chicago aside are there other area munis that have more then 1 TIF district? If you put all the TIFs into 1 bucket and count all the new businesses and development projects do the numbers add up to success? Keeping in mind that they get more money based on the different TIF districts. 

Interesting theory.  However, they've had 20+ years to produce results.  Only in the last 2-3 years have I seen any meaningful progress, and that is along Roosevelt Road. 

The Cermak TIF expires in 2010 I believe.

[Thor]

The Cermak TIF expires in 2010 I believe.

Yikes, can that get renewed? and if so does our rubber stamp council have to approve it or do we (voters) have to approve it? Considering the progress I see and the shape of our schools I say let it die.

[Ted]

The Cermak TIF expires in 2010 I believe.

Yikes, can that get renewed? and if so does our rubber stamp council have to approve it or do we (voters) have to approve it? Considering the progress I see and the shape of our schools I say let it die.

  My understanding is that all of the government entities have to approve the renewal of the TIF district. The Morton College Board and District 201 have not taken any action to renew the TIF district and the President of the Morton College Board has made pubilc statements in the past that she is opposed to renewing the TIF districts.

  Ted

[OakParkSpartan]

That is correct Ted.

So they'll probably let it expire and then create a new one, which doesn't require Larry Dominick's approval.

[n01_important]

But isn't the point of a TIF district to use the time period & funds to develop the area... so after X years, it's time to let it expire and let the taxing municipalities reap the benefits.

The question is what have been the benefits and could those benefits have been obtain by not doing TIF to begin with?

Just another opinion from no one important.

[OakParkSpartan]

But isn't the point of a TIF district to use the time period & funds to develop the area... so after X years, it's time to let it expire and let the taxing municipalities reap the benefits.

The question is what have been the benefits and could those benefits have been obtain by not doing TIF to begin with?

Just another opinion from no one important.

Yes, you are correct.

Which TIF has been successful in redeveloping the area?

[MRS. NORTHSIDER]

But isn't the point of a TIF district to use the time period & funds to develop the area... so after X years, it's time to let it expire and let the taxing municipalities reap the benefits.

The question is what have been the benefits and could those benefits have been obtain by not doing TIF to begin with?

Just another opinion from no one important.

In concept a great idea but how has this worked for Berwyn?  Considering the tax base the school districts are working with I can't blame them if they don't want to extend the TIF districts.  I've heard of tons of money being given out but how much of that has been repaid?  And, as Ted mentioned, how many businesses have reaped the benefits of TIF money and skipped town?  Are they on the line for the money (like car dealerships) and can they just walk away if it doesn't work for them?

[Ted]

That is correct Ted.

So they'll probably let it expire and then create a new one, which doesn't require Larry Dominick's approval.

  This might not be that bad.  First, if the Cermak Road TIF district still has the $10 million dollars it had last year, ending the TIF district would bring the money back to the original taxing bodies. That may give the city a windfall in the millions of dollars, which could help the budget situation.

Second, the TIF could be re-formed WITHOUT having the school districts or park district be part of the TIF. I've often thought that the TIF districts should be just the city and township taxes and not take the school taxes.

So, maybe having a re-formed TIF district would work out well next year.

  Ted