An Assessment of Business Owners in the 87 th & Cottage Grove TIF Business District Chicago, Illinois

An Assessment of Business An Assessment of Business Owners in the 87Owners in the 87thth & Cottage & Cottage

Grove TIFGrove TIFBusiness DistrictBusiness DistrictChicago, IllinoisChicago, Illinois

A Comprehensive ReportA Comprehensive Report

In partnership withIn partnership with8787thth & Cottage Grove TIF Advisory Council & Cottage Grove TIF Advisory Council

SBDC Chicago State UniversitySBDC Chicago State UniversityBusiness & Economic Revitalization Assoc.Business & Economic Revitalization Assoc.

Chicago State University School of BusinessChicago State University School of Business

Extension-Cook County A Plan for the 21st Century

87th & Cottage GroveTIF Advisory Council•Planning & Development

University of Illinois Extension•Management & Implementation

Strategic Partners:BERAChesterfield Tom Thumb Day Care Center6th District Aldermanic WardChicago State University School of BusinessSBDC and the Entrepreneurial Center at Chicago State UniversityCBACitizen Newspaper• Resources• Expertise

SurveyDesign

Final Report:An assessment of Business Owners

in the 87th & Cottage Grove TIF Business District

2006

““The success of this survey depended on partnership involvement at every The success of this survey depended on partnership involvement at every phase of the project.”phase of the project.”

University of Illinois ExtensionUniversity of Illinois Extension


TIF Designation of The 87TIF Designation of The 87thth & & Cottage Grove Business DistrictCottage Grove Business District


In 2001 City of Chicago In 2001 City of Chicago eligibility study concluded:eligibility study concluded:

Business district was eligible for the tax Business district was eligible for the tax increment financing:increment financing: 50% or more of the structures are 35 years or older50% or more of the structures are 35 years or older Major extent of structures are below minimum code Major extent of structures are below minimum code

with inadequate utilitieswith inadequate utilities Sited a lack of investmentSited a lack of investment Not part of any coordinated development strategyNot part of any coordinated development strategy

Conclusion: TIF initiative could assist in Conclusion: TIF initiative could assist in redevelopment objectives for the arearedevelopment objectives for the area


What is a TIF?What is a TIF?Tax Increment Financing (TIF) is a tool created Tax Increment Financing (TIF) is a tool created

by state law to help local governments, such by state law to help local governments, such as the City of Chicago, generate money for as the City of Chicago, generate money for economic development. A TIF allows new economic development. A TIF allows new property tax dollars to be used to fund property tax dollars to be used to fund improvements and new development within improvements and new development within the TIF designated area. The TIF designation the TIF designated area. The TIF designation usually lasts for 23 yearsusually lasts for 23 years

For more information refer to the following sources:For more information refer to the following sources:www.cityofchicago.org and and www.NCBG.org


http://www.cityofchicago.org/

http://www.ncbg.org/

Purpose of the 87Purpose of the 87thth & Cottage & Cottage Grove – TIF Advisory CouncilGrove – TIF Advisory Council

To support consistent community To support consistent community participation by businesses, residents and key participation by businesses, residents and key

stakeholdersstakeholders

Mission Statement: Mission Statement: To improve the physical To improve the physical appearance and economic viability of Cottage appearance and economic viability of Cottage

Grove Avenue from 71Grove Avenue from 71stst Street to 95 Street to 95thth Street and Street and 7979thth Street from King Drive to South Chicago Street from King Drive to South Chicago

Avenue. Additionally, our charter is to create a Avenue. Additionally, our charter is to create a useable model for community-based useable model for community-based

administration of a TIF from conception to administration of a TIF from conception to completioncompletionExtension-Cook

County A Plan for the 21st Century

A Survey of this business A Survey of this business district could:district could:

1.1. Strengthen the effectiveness and outreach Strengthen the effectiveness and outreach of the Councilof the Council

2.2. Increase awareness of TIF-driven Increase awareness of TIF-driven opportunities for businessesopportunities for businesses

3.3. Identify specific actins and training needs Identify specific actins and training needs for businessesfor businesses

4.4. Gather information for key stakeholdersGather information for key stakeholders


The Survey ProcessThe Survey Process

Business population targeted for the survey Business population targeted for the survey (approximately 235)(approximately 235)

Businesses who could qualify to use SBIF and Businesses who could qualify to use SBIF and TIF Works ProgramsTIF Works Programs

A 12% response rate for the surveyA 12% response rate for the survey 29 businesses surveyed29 businesses surveyed 83 question survey through personal 83 question survey through personal

interviewsinterviewsExtension-Cook County A Plan for the 21st Century

About the Businesses About the Businesses SurveyedSurveyed

Primary locally owned (90%)Primary locally owned (90%) Family businesses (52%)Family businesses (52%) In the retail (28%) or service sectors (55%)In the retail (28%) or service sectors (55%) 66% own their building66% own their building Have been in business an average 28 yearsHave been in business an average 28 years A source of employment for the community A source of employment for the community

Average business has 8 full or part time employeesAverage business has 8 full or part time employees 11 out of 29 are members of local chamber11 out of 29 are members of local chamber


Business Owners View of theBusiness Owners View of theLocal Business ClimateLocal Business Climate

Fairly optimistic view for the future of their Fairly optimistic view for the future of their businessbusiness

83% expect an increase in sales over the next 83% expect an increase in sales over the next 3 years3 years

79% plan to expand the range of goods and 79% plan to expand the range of goods and servicesservices

45% will be hiring new employees in the next 45% will be hiring new employees in the next yearyear

One business may close in 3 yrs because One business may close in 3 yrs because retiringretiring Extension-Cook

County A Plan for the 21st Century

Rating for other businessesRating for other businesses

84% indicating a decline in retail businesses84% indicating a decline in retail businesses 68% expecting a decline in service 68% expecting a decline in service

businessesbusinesses


Business Owners are Business Owners are Concerned about the Concerned about the

Appearance of the Business Appearance of the Business DistrictDistrict

When asked to rate fourteen characteristics:When asked to rate fourteen characteristics: Lowest ratings: attractiveness rated poor Lowest ratings: attractiveness rated poor

(40%) or fair (30%);(40%) or fair (30%); Second lowest ratings: cleanliness rated poor Second lowest ratings: cleanliness rated poor

(39%) or fair at (60%)(39%) or fair at (60%)


Strong interest in building renovation and Strong interest in building renovation and façade improvementfaçade improvement

76% believe building improvements are 76% believe building improvements are needed to attract more customersneeded to attract more customers

69% are interested in restoring their façade in 69% are interested in restoring their façade in the next three yearsthe next three years

90% agreed: “The storefronts in the business 90% agreed: “The storefronts in the business district need improvement.”district need improvement.”


96% agreed “It is important for merchants to 96% agreed “It is important for merchants to work together on our business district work together on our business district improvements projects”improvements projects”

76% are willing to coordinate design efforts 76% are willing to coordinate design efforts with other businesseswith other businesses


Business Owners Recognize Business Owners Recognize the Need to Improve Business the Need to Improve Business

MarketingMarketing

The top ranked training priority:The top ranked training priority: Advertising promotion (48%)Advertising promotion (48%) Customer relations (38%)Customer relations (38%)

Marketing services were most difficult Marketing services were most difficult supportive business service to findsupportive business service to find


Methods of marketingMethods of marketing

Brochures, newspapers and the yellow pagesBrochures, newspapers and the yellow pages Group marketing events; less than 30%Group marketing events; less than 30%


Business Owners Want Business Owners Want Information on Business Information on Business Financing and FundingFinancing and Funding

84% want information and training on 84% want information and training on business financing; business financing;

55% would like additional information about 55% would like additional information about grants and subsidiesgrants and subsidies

76% need financial assistance for building 76% need financial assistance for building improvementsimprovements


The Type of Technology Usage The Type of Technology Usage Varied for Business OwnersVaried for Business Owners

75% indicated that they use email, internet 75% indicated that they use email, internet and computers in their businessand computers in their business

Less than 45% use technology-based services Less than 45% use technology-based services (electronic banking, sales reporting)(electronic banking, sales reporting)


Participation in Business Participation in Business Training and Recommended Training and Recommended

Training FormatTraining Format 38% participated in employee training 38% participated in employee training

programsprograms 48% would like to explore job training 48% would like to explore job training

program opportunitiesprogram opportunities 10% have participated in training programs 10% have participated in training programs

administered by Illinois or federal government administered by Illinois or federal government agenciesagencies


Best time for training and Best time for training and workshopsworkshops

Early morning and evening (after 7 p.m.)Early morning and evening (after 7 p.m.) On weekdaysOn weekdays Training methods is “one speaker, a specialist Training methods is “one speaker, a specialist

in the field” (55%)in the field” (55%)


Concluding Statement:Concluding Statement:

““Stability is the foundational Stability is the foundational asset of this business district; asset of this business district;

the overall apathy in the overall apathy in appearance is a symptom of its appearance is a symptom of its

challenges”challenges”Extension-Cook County A Plan for the 21st Century

CONCLUDING POINTSCONCLUDING POINTS1.1. Businesses are leaders in their own rightBusinesses are leaders in their own right

Businesses should be commended for their Businesses should be commended for their business longevitybusiness longevity

These businesses have business leadership These businesses have business leadership skillsskills

Should utilize the leadership assets that have Should utilize the leadership assets that have supported them throughsupported them through

Use these skill to connect with those businesses Use these skill to connect with those businesses who could benefit from their expertisewho could benefit from their expertise

2. Need to Reconnect with the Business 2. Need to Reconnect with the Business CommunityCommunity

Survey responses indicates that there is a Survey responses indicates that there is a disconnectdisconnect

Do not have a positive feel about the Do not have a positive feel about the businesses communitybusinesses community

Do want to and understand the value of Do want to and understand the value of becoming “more involved”becoming “more involved”


3. Take Steps to Improve the Appearance 3. Take Steps to Improve the Appearance of their Buildingsof their Buildings

Committed to improve the outer environment Committed to improve the outer environment of their businessof their business

Take advantage of TIF funding dollarsTake advantage of TIF funding dollars Address any challenges they may have in Address any challenges they may have in

accessing these resourcesaccessing these resources


4. The 874. The 87thth & Cottage Grove TIF Council & Cottage Grove TIF Council Must CommitMust Commit

Council must aggressively seek ways to fulfill Council must aggressively seek ways to fulfill their missiontheir mission

They could hold the key to creating a They could hold the key to creating a successful environment for these businessessuccessful environment for these businesses

They should identify key strategiesThey should identify key strategies


5. Education and Training Could be the 5. Education and Training Could be the Key for ChangeKey for Change

Crucial business skills in marketing, Crucial business skills in marketing, technology, succession planningtechnology, succession planning

Identification of non-traditional business Identification of non-traditional business opportunitiesopportunities

Understand the impact of local, regional and Understand the impact of local, regional and global plansglobal plans


6. Businesses, Council and Stakeholders 6. Businesses, Council and Stakeholders Must Work TogetherMust Work Together

Find creative ways to address the needs of Find creative ways to address the needs of these local businessesthese local businesses

Be more in-tuned with what, how, when and Be more in-tuned with what, how, when and where they need assistancewhere they need assistance

Work on creating a supportive environmentWork on creating a supportive environment


Thank YouThank You

University of Illinois ExtensionUniversity of Illinois Extensionandand

8787thth & Cottage Grove TIF Advisory Council & Cottage Grove TIF Advisory Council

For a complete report contact:For a complete report contact:Rhonda Hardy Rhonda Hardy [email protected]

mailto:[email protected]

Documents

An Assessment of Business Owners in the 87 th & Cottage Grove TIF Business District Chicago, Illinois