SSA Reconstitution

Transcription

SSA Reconstitution

West Town SSA #29
SSA Reconstitution
Community Meetings:
November 12, 2013, 11am – 1pm
November 18, 2013, 6pm – 8pm
Two additional meetings in
January, 2014
Dates, times and locations TBD
PLACE Consulting, Inc
People, Livability, Accessibility, Community & Economic Development
West Town Chamber of Commerce
Agenda
• Welcome
– Kara Salgado, Executive Director, West Town Chamber of Commerce
– Karen Forte, Dept. of Housing and Economic Development, City of
Chicago
• Overview of Special Service Areas
– Kimberly Bares, PLACE Consulting
• Introduction of Advisory Committee Members
– Chair, Stel Valavanis
• PLACE Consulting and Advisory Committee Members
– Proposed Boundaries
– Proposed Programs, Services and Budget
– Proposed Tax Rate and Tax Cap
• Questions and Adjournment
Proposed West Town SSA Boundaries





Chicago Ave: from Halsted to Western
Damen: from Chicago to Huron
Ashland: from Chicago to 1144 N Ashland
Milwaukee: from Haddon to Erie
Ogden: from Chicago to May
What is an SSA?
A Special Service Area (SSA) is a public/private partnership in
which property and business owners elect to make a collective
contribution to the maintenance, development, and promotion
of their commercial district.
Special real estate taxing district, not an agency
The City as the taxing body contracts with entities
to administer SSA programs
Funds additional services beyond the City’s
general services in a defined district
Tax % rate applied to EAV generates levy is
DIFFERENT than the tax % increase on a tax
bill from the SSA tax
Enabled through state statute and city ordinance
Called BIDs (Business Improvement Districts) in
other cities; BIDs used worldwide
Typical SSA
Services
• Public Way
Maintenance
• Public Way Aesthetics
• Public Safety and
Hospitality
• Marketing and
Promotions
• Beautification
• Parking and
Transportation
Enhancements
• District
Representation
• Business
Development
• Façade Improvements
• Area Planning
Current & New SSAs
• 47 active SSAs
• 40 Service Provider Agencies
• 350+ Commissioners
• Oldest SSA created in 1977
• 70% increase in last 10 years
• 2013 Budgets = $26 million
CITY OF
CHICAGO
City Council (legislative)
COOK
COUNTY
Assessor
Treasurer
SSA Commission (advisory)
Dept.
of Law
OBM
HED
Other City Depts.
Service Provider
Agreement
Service Provider Agency
(Management/Admin)
Subcontractors
City
Comptroller
SSA Bank
Acct
 IL State Statute
 Freedom of Information Act
 IL Open Meetings Act
2011 SSA Budgets by Category (43 SSAs)
Total Budgets: $23.4 million
Top 3 Programs
Maintenance (25%) • Aesthetics (20%) • Safety (13%)
$194k (1%)
Other
$2.1m (9%)
Admin
$960k (5%)
District
Planning
$1.5m (6%)
Loss Collection
$2.8m (12%)
Ads/Promos
$5.9m (25%)
Maintenance
$2.9m (13%)
Security
$4.6m (20%)
Aesthetics
$940k (4%)
Parking/Transit
$836k (4%)
Façade Programs
$548k (2%)
Business Attraction
Advisory Committee Members
• Stel Valavanis - onShore Networks, Chair, Advisory Committee
• Darci O'Connell - The Architrouve / BODT Fine Art
• Bob O'Connell - The Architrouve / BODT Fine Art
• Walter Tun - Selfreliance Ukrainian American Federal Credit Union
• Chris Ongkiko - Old Oak Tap
• Greg Mack - GMD Design Build
• Petar Tofovic - White Dental
• Cheryl Jones - Chicago Avenue Salon
Need for West Town SSA:
• No source of funding exists for cleaning, greening and promoting a
neighborhood, except the SSA
• Limited funds exist for promoting, marketing a neighborhood
• SSA allows for the creation and implementation of visioning efforts
• City and state funding sources are being cut or eliminated
• Need to maintain ongoing, consistent and reliable funding for
community initiatives, events and programs
• SSAs provide a locally controlled way for our community to
implement enhancements in the way we envision them
SSA Vision
To improve West Town SSA business
districts by providing services that
support businesses and bring visitors to
West Town so that it becomes a
destination for shopping, dining,
professional services, nightlife and
culture.
Current Initiatives
Funded by SSA #29
•
Sidewalk cleaning 5 days a week/trash pickup/pressure washing/snow plowing
•
Banners
•
Artist designed trash cans
•
Streetscape maintenance
•
Façade Rebate programs
•
Holiday decorations
•
Event marketing
•
Graffiti removal/Acid etching removal
•
Tree survey, maintenance, replacement
•
Studies and planning
•
Business attraction
•
Special events
Façade Rebates
Before
After
West Fest
West Town
Art Walk
New
Banners
Surrounding or
nearby existing
SSAs:
• Wicker Park/
Bucktown
• Old Town
• Lakeview (3)
• Northalsted
• Lincoln Park (2)
• Northcenter
• State Street
(the Loop)
SSA Reconstitution (progress to date)
Feasibility analysis
submitted; WTCC
approved by DHED
SPRING , 2013
Advisory Committee
meetings held to
review boundaries,
workplan, budget
and recommend tax
rate and tax rate cap
Needs Assessment
conducted, including visits
and surveys
SUMMER AND FALL, 2013
PLACE
Consulting hired
Needs Assessment Summary
1. Door to Door outreach over several months
2. Survey
-178 respondents
63.4% were in the existing SSA
34.2% were property owners
51.1% were business owners
 Overall, respondents were satisfied in regards to all services provided
 Most satisfied with trash cans, sidewalk cleaning, & holiday decorations
Needs Assessment Summary
SSA Service Satisfaction
Proposed 2015 Budget
How SSA Budgets and Tax Rates Relate
Needs
SSA
Budget
Local
Tolerance
EAV
Tax
Rate
SSA
Budget
Property Class Summary
West Town SSA
Property Class Code Analysis
Property Class
PINs
% of Total
EAV*
% of Total
Tax Exempt
60
4.5%
$0
0.0%
Vacant
18
1.3%
$321,101
0.2%
Residential
911
67.6%
$70,135,764
51.5%
Mixed Use
34
2.5%
$7,036,871
5.2%
Non-Profit
3
0.2%
$1,153,938
0.8%
Commercial
318
23.6%
$57,096,792
41.9%
Industrial
3
0.2%
$435,367
0.3%
Grand Total
1347
$136,179,833
Source: Cook County 2013; PLACE Consulting
*EAV accounts for TIF
• Commercial + Mixed-Use + Industrial = 47.4% of the total EAV
• Residential includes 2-12 (small mixed-use buildings), which accounts for
22.4% of the total EAV
West Town SSA
Detailed Property Class Code Analysis
Property Class
Code
PINs
% of Total
EAV*
% of Total
Tax Exempt
Vacant Land
Vacant/Minor Improvement
Residential Garage
One story residence, any age, up to 999 sq ft
One story residence, any age, 1000 to 1800 sq ft
Two or more story residence 2200 sq ft
Two or more story residence, over 62 years of age 2201 to 4999 sq ft
Apartment building with 2 to 6 units, any age
Mixed use commercial/residential building with aprtment and commercial area totaling 6
units or less with a square foot area less than 20k
Cooperative
Vacant land under common ownership with adjacent residence
Minor improvement
Special residential improvements
Residential Condominium
Two ro three story non-fireproof building with corridor apartment or California type
apartments, no corridors evterior entrance
Mixed Use commercial/residential building with apartments and commercial area
totaling seven units or more with an area of over 20k sq ft
Other minor improvement related to rental use
Special rental structure
Not for profit two or three story building containing part or all retail and/or commercial
space
Not for profit condominium
Garage used in conjunction with commercial improvements
One story commercial building
One story non-fireproof public garage
Theatre
Bank building
Supermarket
Industrial minor improvement
Commercial minor improvement
Commercial building over three stories
Two or three story building containg part or all retail and/or commercial space
Industrial building
Special commercial structure
Commercial Condominium unit
Industrial building
0-00
1-00
1-90
2-01
2-02
2-03
2-05
2-06
2-11
60
15
3
1
2
2
1
3
30
4.5%
1.1%
0.2%
0.1%
0.1%
0.1%
0.1%
0.2%
2.2%
$0
$233,945
$87,156
$19,723
$162,739
$193,446
$86,024
$235,872
$3,201,832
0.0%
0.2%
0.1%
0.0%
0.1%
0.1%
0.1%
0.2%
2.4%
2-12
2-13
2-41
2-90
2-97
2-99
236
5
6
7
1
619
17.5%
0.4%
0.4%
0.5%
0.1%
45.9%
$30,508,987
$2,505,552
$133,019
$145,728
$185,745
$32,819,542
22.4%
1.8%
0.1%
0.1%
0.1%
24.1%
3-14
1
0.1%
$432,062
0.3%
3-18
3-90
3-97
28
4
1
2.1%
0.3%
0.1%
$6,507,084
$63,572
$34,153
4.8%
0.0%
0.0%
4-92
4-99
5-01
5-17
5-22
5-27
5-28
5-30
5-80
5-90
5-91
5-92
5-93
5-97
5-99
6-63
2
1
1
86
3
1
4
8
6
55
5
35
19
39
55
3
0.1%
0.1%
0.1%
6.4%
0.2%
0.1%
0.3%
0.6%
0.4%
4.1%
0.4%
2.6%
1.4%
2.9%
4.1%
0.2%
$1,120,756
$33,182
$29,810
$17,211,329
$1,072,909
$382,232
$1,713,195
$2,563,566
$270,718
$2,105,621
$4,859,727
$11,835,837
$2,157,186
$6,320,722
$6,511,492
$435,367
0.8%
0.0%
0.0%
12.6%
0.8%
0.3%
1.3%
1.9%
0.2%
1.5%
3.6%
8.7%
1.6%
4.6%
4.8%
0.3%
Grand Total
1347
*EAV accounts for TIF
$136,179,833
Resulting Tax Rate and Avg Payments
West Town SSA
Payment Analysis
Property Class
Tax Exempt
Vacant
Residential
Mixed Use
Non-Profit
Commercial
Industrial
PINs
60
18
911
34
3
318
3
EAV (Pre-TIF)
$0
$321,101
$75,524,089
$7,036,871
$1,153,938
$61,421,834
$435,367
EAV*
$0
$321,101
$70,135,764
$7,036,871
$1,153,938
$57,096,792
$435,367
Avg Payment 0.442%
$0
$79
$366
$915
$1,700
$854
$641
Proposed Levy
$0
$1,419
$310,000
$31,103
$5,100
$252,368
$1,924
Grand Total
1347
$145,893,200
$129,370,841
$479
$571,819
Who Pays the Proposed Levy?
*EAV accounts for TIF & expected 5% loss in value
Average Payments
•
•
Residential Condo:
$366 per year or $30 per month
Commercial
42%
Mixed Use building:
$915 per year or $76 per month
Residential
Residential
52%
Mixed Use
Non-Profit
Commercial
Non-Profit
1%
Mixed Use
5%
Tax Rate Comparisons (2013)
West Town SSA #29
Tax rate cap: 0.47%
Tax rate for 2014 Budget: 0.442%
2015 Budget Levy: $571,819
EAV: $129.370.841
SSA #33 (Wicker Park/Bucktown)
Tax rate cap: 0.304%
2013 Budget Levy: $1,274,400
EAV: $379,914,071
SSA #27 (Lakeview West)
Tax rate cap: 0.25%
2013 Budget Levy: $862,023
EAV: $354,366,662
SSA #35 (Lincoln Square)
Tax rate for 2013 Budget: 0.0.266%
2013 Budget Levy: $210,137
EAV: $76,047,780
SSA #38 (North Center)
2013 Budget Levy: $246,111
EAV: $103,163,383
SSA #26 (Edgewater)
Tax rate cap: 0.55%
2013 Budget Levy: $541,387
EAV: $113,756,309
Comparable SSA Tax Rates & Caps (2013)
0.6
0.5
0.4
0.3
Tax Rate
Tax Cap
0.2
0.1
0
•Avg Tax Cap: 0.334%
• City Average Tax Rate
(2012): 0.689%
• Proposed Tax Rate Cap
for WT SSA is 0.47%
Tax Cap Scenarios
Assumes 2.5% growth in property values and 2.5% inflation.
Tax Rate
0.442%
Year 1 Levy Year 1 Budget
$571,819
$571,819
Year 10 Levy
Year 10 Budget
Shortfall Minimum Cap Needed
$764,905
$731,977
$32,929
0.423%
Year 10 Levy
Year 10 Budget
Shortfall
Minimum Cap Needed
$662,798
$768,477
-$105,679
0.512%
Year 10 Levy
Year 10 Budget
Shortfall
Minimum Cap Needed
$729,355
$768,477
-$39,122
0.466%
Assumes 1% growth in property values and 3% inflation.
Tax Rate
0.442%
$571,819
$571,819
Assumes 2% growth in property values and 3% inflation.
Tax Rate
0.442%
$571,819
$571,819
Considerations:
• Allow for growth over time
• Identify need for initiatives
• Balance against burden local
taxpayers can bear
•
•
Proposed 2015 budget of
$571,819 would be
$764,905 at 2.5% growth in
expenses after 10 years
0.47% was chosen by the
committee
Impact of SSA Levy
on Property Taxes
Other Taxing Bodies (5.455%)
5.855%
West Town SSA Levy 0.442%
Increase in property taxes with SSA is 12.3%
Impact of TIF Districts
Taxpayer pays
taxes based on
Source: Huffington Post
SSA levies
taxes
based on
Original
EAV
TOTAL
EAV
(VALUE)
$145.9million
Increased
EAV
• 6.7% of the
current total
EAV is captured
by TIF districts
Tax levy
goes to TIF
Priorities for the Next Five Years
• Continue to provide basic services:
Maintenance, Beautification and Promotion
• Adjust programs over time based on community needs
as determined regular surveys and planning activities
• Programs and services will continue to make West
Town a better place to open a business, more
comfortable to live here and more attractive to visit
SSA Reconstitution (going forward)
Community
meetings
FALL/WINTER 2013-14
Incorporate
feedback from
the community
City will schedule
a public hearing
in the fall
SPRING,
2014
Property and
business owners can
submit applications
to be commissioners
If approved, the
SSA will
reconstitute in
2015
NOV, 2014
JAN, 2015
Final city
application due
33
First
funding
received
FALL,
2015
West Town SSA Reconstitution
Community Meeting
Questions and Answers Session

SSA Reconstitution

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