SSA SSA SSA SSA DISTRICTDISTRICTDISTRICTDISTRICT PLAN PLAN PLAN PLAN EDGEWATEREDGEWATEREDGEWATEREDGEWATER SSA SSA SSA SSA

UPDATED: 6.13.12

[1] EXECUTIVE SUMMARY[1] EXECUTIVE SUMMARY[1] EXECUTIVE SUMMARY[1] EXECUTIVE SUMMARY

[1a] Why the SSA:[1a] Why the SSA:[1a] Why the SSA:[1a] Why the SSA: Although the area designated as SSA#26 is termed the Broadway Commercial District, the area consists of residential and rental/apts as well as non-profit, commercial and industrial business properties. The mission of SSA#26 is to sustain the competitiveness of the SSA#26 area and to maintain a safe, clean, aesthetically pleasing and culturally distinct environment for the benefit of its constituents.

[1b] History and track record:[1b] History and track record:[1b] History and track record:[1b] History and track record: SSA #26 has been providing effective landscaping, sidewalk cleaning, snow removal and security initiatives since its inception in 2003. Security issues have been addressed by installing surveillance systems at and around the CTA stations on Granville and Thorndale. SSA#26 also provides funding for culturally diverse events including Holidays Around the World, the Edgewater Arts Festival, Edgewater Artists in Motion and the Farmers Market program, as well as previous efforts such as Third Saturdays, the Edgewater Arts walk, the Gay Games athletic program of 2006 and Edgewater Fitness Week.

Agency service area:Agency service area:Agency service area:Agency service area: North: Devon Ave., South: Foster Ave., East: Lake Michigan, West: Magnolia between Foster & Victoria, Ravenswood between Victoria & Devon. This area does not overlap with any other Delegate Agency of the City of Chicago.

SSA general areaSSA general areaSSA general areaSSA general area:::: SSA#26, also known as Broadway Commercial District, has been in existence since 2003. The boundaries of SSA#26 are essentially tied to the area of Edgewater known as the primary commercial corridor; Broadway from Foster on the south to Devon on the north. To ensure that all businesses within the commercial corridor are included in this designated SSA area, the boundaries will extend to the alley just west of Broadway and to the CTA tracks just east of Broadway. In addition, the businesses located on Granville and Bryn Mawr as far east as Kenmore will also be included, as well as the properties included up to Winthrop on Thorndale and Berwyn. As SSA#26 reconstitutes for 15 years, the designated area will expand, thus the name will change to the Edgewater Commercial District. The expanded area will include Broadway on both sides of

the street up to Devon, Devon on both sides of the street from Broadway to the four corners of Glenwood Avenue.

Proposed Proposed Proposed Proposed year one budget summary: $year one budget summary: $year one budget summary: $year one budget summary: $515,962515,962515,962515,962 Year One Year One Year One Year One Tax Tax Tax Tax Rate:Rate:Rate:Rate: 0.4 0.4 0.4 0.4536536536536% % % % Lifetime Lifetime Lifetime Lifetime Tax Tax Tax Tax Cap:Cap:Cap:Cap: 0.5 0.5 0.5 0.550505050% Tax % Tax % Tax % Tax Rate Rate Rate Rate CapCapCapCap

[2] IMPROVEMENT AND ACTIVITY PLAN[2] IMPROVEMENT AND ACTIVITY PLAN[2] IMPROVEMENT AND ACTIVITY PLAN[2] IMPROVEMENT AND ACTIVITY PLAN

[2a] SSA Stakeholders[2a] SSA Stakeholders[2a] SSA Stakeholders[2a] SSA Stakeholders A broad array of stakeholders from the community has been involved in the planning of the SSA reconstitution efforts, specifically:

• The Edgewater Chamber of Commerce, which has led the reconstitution process • An Advisory Committee of fifteen local business and property owners and

residents: o Helen Cameron, Uncommon Ground o Rae Ann Cecrle, B&R Developers o Don Cortelyou, Bridgeview Bank o Dave Frederickson, State Farm Insurance o Joe Guzzo, Chicago Gold Gallery o Tim Harrington, Barr Funeral Home o Cary Kerbel, Bluewater Companies o Brian Koester, Bark Bark Club o Jim McHale, North Community Bank o Summur Roberts, Loyola University o John Vranas, Property Owner o Ken Walchak, Clark/Devon Hardware o Scott Weddle, The UPS Store, o Barclay Welch, Ansonia Properties o Almaz Yigizaw, Ethiopian Diamond

• Alderman O’Connor, Alderman Osterman, and Alderman Moore and their economic development staff

• The current SSA commission

• The board of the Edgewater Chamber of Commerce

[2b] Project Timeline[2b] Project Timeline[2b] Project Timeline[2b] Project Timeline The following activities have been accomplished as part of the Edgewater SSA reconstitution process:

December, 2011: o The Edgewater Chamber of Commerce (ECC) submitted a Feasibility Analysis

to the City of Chicago Department of Housing and Economic Development (HED). The Chamber was approved to continue serving as a sponsor agency.

o PLACE Consulting was hired to assist with the reconstitution efforts. January, 2012:

o ECC assembled an Advisory Committee of local business and property owners within the proposed boundaries.

o A database of all of the PINs within the proposed boundaries was generated, including the 2010 board certified assessed values, property address, county

classification, exemptions, TIF base EAV, taxpayer of record and other data as required by the City of Chicago.

o PLACE met with ECC to review a preliminary PIN analysis of the possible expansion scenarios and the analysis of a separate SSA on Clark and Devon.

February, 2012:

o The Advisory Committee had their first meeting to learn about SSAs and discuss boundaries. They discussed several expansion scenarios and had conversations about community need balanced with the impact on local taxpayers.

o ECC conducted a needs assessment survey of local businesses using Survey Monkey.

March, 2012: o Members of the Advisory Committee participated in a boundary tour. The

group drove the proposed boundaries and discussed reasons to include or exclude parts of the district.

o The Advisory Committee had their second meeting to review the findings of the needs assessment survey, discuss the findings from the boundary tour and begin to determine an appropriate scope of services, budget, and effective tax rate. The committee continued to evaluate different boundary scenarios.

o In late March, the Advisory Committee had their third meeting. Boundaries were approved to be presented to the community, and a budget from the last meeting was refined and finalized. The Advisory Committee examined how the tax rate compared to surrounding SSAs and the relationship between the total EAV and tax rate compared to other north side SSAs. The committee also agreed upon a tax cap rate that would allow for the continual provision of a typical budget, accounting for 3% annual increase in the cost to provide services and the limited EAV growth due to the presence of overlapping TIF districts.

April, 2012: o Surveyor sent maps to begin legal description process. Ridge residential

properties double-checked for inclusion in SSA boundaries. A Powerpoint presentation for community meetings drafted and reviewed.

May, 2012: o Two community meetings were held to educate local taxpayers about the

SSA. Notices were mailed to each unique taxpayer about the meetings. A notice of the meeting was also posted on the ACC website.

o The Advisory Committee had a fourth meeting to discuss the desire of property owners on Clark Street and a few on the west part of Devon to not be included in the SSA expansion. It was decided to proceed with a more limited expansion area, accounting for the desires expressed by the community.

o An updated legal description was completed for the new Edgewater SSA.

[2c] Needs Assessment Survey Summary[2c] Needs Assessment Survey Summary[2c] Needs Assessment Survey Summary[2c] Needs Assessment Survey Summary The property owners within SSA#26 have expressed a need to attract new businesses to the area and to secure the standing of the businesses currently located in Edgewater. In order to promote Edgewater as a vibrant community, there are several initiatives that can be implemented. Vacant storefronts are a continual reminder of the economic downturn and the SSA has addressed this issue with the support of Edgewater Artists in Motion (EAiM) by providing local artists the opportunity to display their artwork in these locations. This offers an attractive alternative to boarded up windows and also presents an opportunity for these artists to promote their work. Business attraction and retention is also addressed by providing services that enhance the beautification and cleanliness of the area. The SSA has provided sidewalk maintenance, landscape design and implementation, snow removal and graffiti removal to the area within the previous boundaries and will provide these services to the expanded area as well. In addition to these services, the SSA will attract and retain businesses to the area by promoting the Edgewater neighborhood. Banners that feature the new branding strategy of the Edgewater Chamber of Commerce, the Sole Service Provider of the SSA, will be placed throughout the area. The SSA will continue to support the festivals held throughout the year. These festivals include, but may not be limited to Edge Fest, a summer music, entertaimnet and art festival and Holidays throughout the World, a festival held in conjunction with Alderman Harrty Osterman’s office to celebrate the diversity of Edgewater during the winter holiday season.

Needs Assessment SurveyNeeds Assessment SurveyNeeds Assessment SurveyNeeds Assessment Survey The Edgewater Chamber of Commerce administered a survey to its members in Winter, 2012. The goal of the survey was to better understand the priorities and preferences of the local community, along with the other outreach activities that were being conducted. Twenty-five people responded to the survey, 21 of whom were property owners, business or residents within the proposed SSA boundaries. Overall, respondents indicated that they were satisfied with cleanliness, landscaping, foot traffic, available business assistance and safety. Respondents were least satisfied with façade and branding initiatives. These findings reinforced what the Chamber and SSA Commissioners had heard previously, which is why the SSA initiated a branding and marketing analysis in 2011. The SSA plans to begin implementing their branding and marketing campaign in 2012 and roll out other elements in subsequent years.

Respondents were also asked to prioritize SSA programs from 1 to 9 (9 being the highest). The results are shown in the table below.

. Respondents were also asked: Given that City of Chicago does not provide any of the following services, what is the one service that is important for all businesses in your area to receive and that you would be willing to pay for if the businesses around you were paying as well? The results are shown in the table below. Its important to note that six program categories received the same or more votes as doing paying nothing, demonstrating the willingness to pay for certain programs and the acknowledgement that these programs and services are important. Its also important to not that the top three categories are all things that typically happen at a district level, not at the individual business level. This reflects property and business owners’ acknowledgements that their business or property is more likely to be successful if the area around them is improved.

[2d] Plan Approval[2d] Plan Approval[2d] Plan Approval[2d] Plan Approval SSA#26 has been in existence since 2003 and has been greatly supported by Block Clubs and residents, alike. Letters of support from local businesses and the 48th Ward Alderman have regularly been included in each year's budget submissions. As the reconstitution process began, an Advisory Board consisting of local business owners was engaged to provide input into the reconstitution process. This group has shown overwhelming support for the initiative and has reached out to other community members to gain support. As a result, letters of support from approximately 5 % of the property owners within the expanded area are expected. Letters of support are also being provide from property owners with the boundaries of the previous ordinance. The 48th Ward Alderman, currently Ald. Harry Osterman and previously Ald. Mary Ann Smith have shown unconditional support for the efforts of SSA#26. As the previous boundaries of SSA#26 resided entirely within the 48th Ward, this support has been crucial. As the reconstitution process progresses and the boundary expansion is being proposed, support from Alderman Patrick O’Connor of the 50th Ward and Alderman Joe Moore of the 49th Ward, has been secured. Meetings with all three Aldermanic offices have provided important feedback about the program and its initiatives as well as the financial impact to the constituents. With the support of Ald. O’Connor and Ald. Moore we feel confident that the expansion into their areas will progress with enthusiastic support. Having the support

of all 3 Aldermen whose constituence will be impacted by the new boundaries of SSA#26, the Edgewater Commercial District will be well supported. The SSA also has the support of all of the Block Clubs within the area as well as Edgewater Beautiful who has continually praised our efforts toward the beautification of Edgewater and our clean and green initiatives.

[2e] SSA Boundaries [2e] SSA Boundaries [2e] SSA Boundaries [2e] SSA Boundaries The Chamber and Advisory Committee (local business and property owners in the existing boundaries and proposed expansion area) reached out to the local businesses, evaluated different scenarios and had numerous discussions to determine the appropriate boundaries that balanced the need of the community with local support. After discussing tax impact scenarios and hearing from business and property owners over several meetings, it was decided to expand the existing SSA boundaries to include Broadway from Rosemont to Devon on the West side of the street and from Granville to Devon on the East side of the street. The SSA will also expand to include the North and South sides of Devon from Broadway to Glenwood, to include the buildings on all four corners of the intersection of Glenwood and Devon. The Advisory Committee examined multiple scenarios as part of their evaluation including: the existing SSA as it stands, the existing SSA with Devon to Clark Street, the existing SSA with Devon to Clark Street and Clark Street to Victoria added and a separate SSA on Devon and Clark Street. The boundary decision was heavily influenced by the goal of having the SSA cover the core commercial district while limiting impact on residential properties. An analysis of a separate SSA on Clark and Devon showed that to provide the same level of services as the existing Edgewater SSA in the new area, scaling the budget on a per mile basis where possible, would require an SSA tax rate that would be 50-100% higher than the proposed 2013 SSA tax rate. The main cause for this is that all of the PINs that touch Clark or Devon in the proposed area are within a TIF district, which limits the amount of EAV an SSA can levy against. The general boundary description is as follows: All of the properties between the north side of Foster and the south side of Devon on

Broadway, from the alley on the west up to and including the train viaduct on the east; the

south side of Berwyn between the CTA viaduct and Winthrop; Bryn Mawr, both the north

and south sides of the street from Broadway to the west side of Kenmore; Ridge, from

Broadway west to Magnolia on the north side of the street and 5630 N Ridge on the south

side of the street; Thorndale from Broadway to the west side of Winthrop; Granville from

Broadway to the west side of Kenmore; Devon, including the buildings on the four corners of

Glenwood east to Magnolia on the north side of the street and to Broadway on the south

side of the street.

Five Tax Increment Financing (TIF) districts overlap the SSA boundary area. The Clark Street/Ridge Avenue TIF, first established in 1999 and scheduled to expire in 2022; the Bryn Mawr/Broadway TIF established in 1996 and scheduled to expire in 2019; the Lawrence/Broadway TIF established in 2001 and scheduled to expire in 2024; the Devon/Sheridan TIF established in 2004 and scheduled to expire in 2027; and the Hollywood/Sheridan TIF established in 2007 and scheduled to expire in 2030. A detailed map of the boundaries can be seen in the appendix.

[2f] Services Needed[2f] Services Needed[2f] Services Needed[2f] Services Needed

All of the services that have been provided to the areas within the previous boundaries will be provided to the properties within the expanded area. All of these initiatives improve the look and feel of the area and thus attract and retain businesses. Clean and beautiful surroundings provide a pleasant environment for the local business community and our residents as well as those residents of other communities who enter the Edgewater area to partake of our shopping, dining and entertainment venues. In order to provide a beautiful environment, the landscaping initiative will continue. This includes the purchase and placement of planters and the landscaping, maintenance and watering of the plantings. The vendor provides daily attention to each planter and waters and weeds according to the specific needs. Plantings are changed seasonally so that new foliage is provided 4 times per year to provide an attractive environment and promote a vibrant community continuously addressing the aesthetically pleasing look of Edgewater. During the past 10 years, SSA#26 has worked to present the Edgewater area, in general, and specifically the Broadway Commercial District, in a most positive light. As a result, SSA#26 has been honored to receive numerous awards for its work . The City of Chicago Department of Planning and Development awarded SSA#26 their 2007 Pride Award for Best Beautification and Maintenance Project. This was the 1st award of its kind presented to an SSA. SSA#26 has also received multiple awards from Mayor Daley’s Landscape Awards for its continual efforts to beautify Edgewater. In particular, the planters that line the Broadway Armory received recognition in the Specialized Garden CityWide category. In order to keep Edgewater clean and free of litter, sidewalk cleaning will continue. This service is currently provided 3 times per week throughout the year and is expanded to 5 times per week during the summer months along the routes to the lakefront which include Thorndale, Granville, Bryn Mawr and Berwyn. A crew walks the entire length and width of the area and removes debris from the sidewalks and curbs area. As they move through the area, they also make note of any damage that may have occurred to the planters, plants trash containers etc., and report this information to the SSA office. Pressure washing of all of the sidewalks is completed during the spring of each year as needed and an additional washing is done in high traffic areas around the CTA stations. This effort has received extremely high praise and recognition from the community and will continue to be provided by the SSA.

Additional trash containers have been installed in the previous boundaries of the SSA including solar powered trash receptacles. These containers are emptied 3 to 5 times per week depending upon location; this effort is monitored and changed according to the needs of the area. This service will continue in the expanded area. The Department of Streets and Sanitation works with SSA#26 to identify locations that need additional trash receptacles and supports our efforts to provide for additional services beyond what is currently provided by the City of Chicago. During the winter months, these initiatives are supplemented with a snow removal service so that access to the businesses is maintained. Snow is removed when snowfall in excess of 2” occurs. De-icer is also applied to slippery sidewalks and intersections. During particularly heavy snowfalls, we especially focus on helping to clear the bus shelters and make sure that the City snow plows have not made pedestrian access to intersections impossible. As the snow melts, the snow removal vendor makes sure that drains are accessible in order to lessen the occurrence of large puddles of slush and water. Winter seasonal decorations are added to the landscaping design and banners are placed along the thoroughfares to bring color to the area. In the past, a design firm has been contracted to provide a unique look for the Edgewater area. The banners were then purchased and displayed during the holiday season. They are then cleaned and stored for the following year’s use. These services will also be provided in the expanded areas of the SSA.

Advertising and PromotionAdvertising and PromotionAdvertising and PromotionAdvertising and Promotion ServiceServiceServiceService Details (2013)Details (2013)Details (2013)Details (2013) NeedNeedNeedNeed Future Year Future Year Future Year Future Year

RecommendationsRecommendationsRecommendationsRecommendations Website Website updated

with pertinent info on SSA activities and initiatives

Keeps residents and property owners informed

Provide additional access for suggestions and surveys

Print Materials Provides info for those who do not access website

Keeps residents and property owners informed

Provide additional access for suggestions and surveys

Special Events Edge Fest, EAiM, Holidays Around the World

Promote Edgewater as a vibrant community

Increase awareness of events and add events to expanded areas

Public Way MaintenancePublic Way MaintenancePublic Way MaintenancePublic Way Maintenance ServiceServiceServiceService Details (2013)Details (2013)Details (2013)Details (2013) NeedNeedNeedNeed Future Year Future Year Future Year Future Year

RecommendationsRecommendationsRecommendationsRecommendations Sidewalk Cleaning

3 to 5 times per week depending upon area and time of year

Provides for a cleaner sidewalks

Extend service to expanded area

Snow removal Each occurrence in excess of 2”

Provides access to local business during winter months

Extend to expanded area and include bus shelters on a regular basis

Pressure Washing Spring for entire area and fall for high traffic area

Provides a clean environment

Extend to expanded area

Trash Removal, Graffiti removal

Remove trash from SSA provided containers 3 to 5 times per week as needed. Remove acid etching as needed

Show a commitment to community

Continue efforts as needed

Public Way AestheticsPublic Way AestheticsPublic Way AestheticsPublic Way Aesthetics ServiceServiceServiceService Details (2013)Details (2013)Details (2013)Details (2013) NeedNeedNeedNeed Future Year Future Year Future Year Future Year

RecommendationsRecommendationsRecommendationsRecommendations Landscaping Provide planting

4 times per year Present a beautiful environment

Provide plantings for expanded areas and examine unique ways to improve landscaped areas

Streetscape elements

Purchase planters, bicycle

Provide a needed service in order to

Purchase new receptacles for

racks, newspaper stands

have a pedestrian friendly area

expanded area

Business Retention/AttractionBusiness Retention/AttractionBusiness Retention/AttractionBusiness Retention/Attraction ServiceServiceServiceService Details (2013)Details (2013)Details (2013)Details (2013) NeedNeedNeedNeed Future Year Future Year Future Year Future Year

RecommendationsRecommendationsRecommendationsRecommendations TBD New program to

be determined by commissioners

Address expressed need of property owners

Examine effectiveness of effort and creatively look for new programs

FaçadeFaçadeFaçadeFaçade Improvements Improvements Improvements Improvements ServiceServiceServiceService Details (2013)Details (2013)Details (2013)Details (2013) NeedNeedNeedNeed Future Year Future Year Future Year Future Year

RecommendationsRecommendationsRecommendationsRecommendations TBD New program to

be determined by commissioners

Address expressed need of property owners

Examine effectiveness of effort and creatively look for new programs

Parking/Transit/AccessibilityParking/Transit/AccessibilityParking/Transit/AccessibilityParking/Transit/Accessibility ServiceServiceServiceService Details (2013)Details (2013)Details (2013)Details (2013) NeedNeedNeedNeed Future Year Future Year Future Year Future Year

RecommendationsRecommendationsRecommendationsRecommendations Bicycle traffic enhancements

Purchase bicycle racks

Provide accessibility for bicycle users

Continue program in expanded areas

Safety ProgramsSafety ProgramsSafety ProgramsSafety Programs ServiceServiceServiceService Details (2013)Details (2013)Details (2013)Details (2013) NeedNeedNeedNeed Future Year Future Year Future Year Future Year

RecommendationsRecommendationsRecommendationsRecommendations N/A TBD

District PlanningDistrict PlanningDistrict PlanningDistrict Planning ServiceServiceServiceService Details (2013)Details (2013)Details (2013)Details (2013) NeedNeedNeedNeed Future Year Future Year Future Year Future Year

RecommendationsRecommendationsRecommendationsRecommendations Strategic Produce and Provides an Continue effort

Planning implement branding initiative

identity for Edgewater

into expanded area and branch out from banners to street level signage

Service Provider Direct Services and AdministrationService Provider Direct Services and AdministrationService Provider Direct Services and AdministrationService Provider Direct Services and Administration Service provider direct servicesService provider direct servicesService provider direct servicesService provider direct services SSA#26 maintains office spacewithin the Edgewater Chamber of Commerce office, and therefore has access to economies of scale, allowing it to save greatly on expenses for administration. Office services provided by the Edgewater Chamber of Commerce include:

• office space • alarm system • utilities • office supplies • office equipment lease/maintenance

Service Provider administrative activities include:

• submission of all applications, contracts, and reports as required by the city; • tracking of commissioner tenures and city applications; • commissioner recruitment; • administration of all tasks around commission meetings and announcements; • newsletters and other promotions; • interface with city staff and local elected officials; • response to supplemental city requirements including FOIA requests • preparing for and managing annual audit

Service Provider management activities include:

• Select and contract outside service providers, including preparing, disseminating and reviewing RFPs, interviewing candidates, preparing reports for the SSA commission

• Oversee outside service providers for programs including sidewalk sweeping, snow plowing, landscaping, sidewalk power washing, holiday decorations, , streetscape maintenance, graffiti removal

• Manage web and social media projects as needed • Oversee sidewalk cleaning, including weekly check—ins from the crew, fielding

complaints and needs from the businesses, and collaborating with our local streets and sanitation offices

• Oversee snow plowing, including tracking instances of snowfall, fielding complaints and needs from the businesses

• Oversee sidewalk power washing, including scheduling around events, weather, and sidewalk cafes, and addressing specific business concerns and needs

• Conduct annual inventory of Streetscape repair needs. Work with commission to determine priorities, interview and contract with outside services to complete work, collaborate with appropriate city departments, and oversee the work.

• Order holiday decoration supplies. Procure needed permits. Oversee installation and removal.

• Oversee landscaping, including 4 annual plantings and watering as needed. • Oversee trash removal initiative, including fielding complaints and needs from the

businesses • Oversee graffiti removal initiative, as needed • Wayfinding signage as needed. • Manage Façade Incentive program, including providing administrative support to

Façade Incentive committee, promoting and distributing program materials, managing application process, managing distribution of funds and work completion, and providing updates to program materials as needed.

• Commission development. Manage as needed. • Outreach activities associated with Chamber sponsored events such as Edge Fest,

Holiday Around the World.

[2g] First[2g] First[2g] First[2g] First----Year and FiveYear and FiveYear and FiveYear and Five----Year BudgetsYear BudgetsYear BudgetsYear Budgets The SSA#26 budget for 2013 will be $513,204.00. This is will provide all of the services previously provided as well as additional service to the expanded areas.

2013 Budget Summary2013 Budget Summary2013 Budget Summary2013 Budget Summary Program CategoryProgram CategoryProgram CategoryProgram Category Budget LevyBudget LevyBudget LevyBudget Levy ++++ CarryoverCarryoverCarryoverCarryover Total Total Total Total Advertising and Promotion 33,350 33,350 Public Way Maintenance 114,650 22,500 137,150 Public Way Aesthetics 181,500 25,000 206,500 Tenant Retention/Attraction 10,000 10,000 Façade Improvements 15,000 15,000 Parking/Transit/Accessibility 2,000 2,000 Safety Programs District Planning Other Technical Assistance Personnel 63,810 13,770 77,580 Admin Non-Personnel 14,390 14,390 Loss Collection (unpaid taxes) 20,000 20,000 TOTAL 454,700 61,270 515,970

Next five Next five Next five Next five year priorities:year priorities:year priorities:year priorities: Over the past year and continuing into 2013, a Branding Strategy and initiative has begun and is continually being implemented. The costs for this initiative will therefore be reduced in the coming years. As marketing and branding expenditures decrease, increase spending on: • Exploring bike lanes/ bike planning/ bike parking • District events • Parklets • Implementing the Edgewater Sustainability Plan • Explore police bike patrols These priorities will be pursued while continuing basic clean, green and promotional services at similar levels. Program CategoryProgram CategoryProgram CategoryProgram Category 2013201320132013 2014201420142014 2015201520152015 2016201620162016 2017201720172017 Advertising and Promotion 33,350 35,381 36,442 37,535 38,661 Public Way Maintenance 137,150 141,264 145,502 149,867 154,363 Public Way Aesthetics 206,500 212,696 219,075 225,648 232,417 Tenant Retention/Attraction 10,000 10,300 10,609 10,927 11,255 Façade Improvements 15,000 15,450 15,913 16,390 16,882 Parking/Transit/Accessibility 2,000 2,060 2,121 2,185 2,251 Safety Programs District Planning Other Technical Assistance Personnel 77,580 79,907 82,304 84,477 87,316 Admin Non-Personnel 14,390 14,887 15,334 15,794 16,268 Loss Collection (unpaid taxes) 20,000 21,792 22,446 23,119 23,813 TOTAL $515,970 $533,737 $549,746 $565,942 $583,226

EAV (@ 3% growth on non-Frozen EAV)

$113,748,26

7

$115,418,01

1

$117,137,84

8

$118,909,28

0

$120,733,855

SSA Tax Rate (@ 3% EAV Growth) 0.4536% 0.4624% 0.4693% 0.4759% 0.4831%

Note about the Five-Year Budget calculations: To estimate a five-year budget a typical 3% annual rate of inflation was applied to the typical program budget from 2014 onwards. The annual EAV estimates are a function of an estimated 3% annual rate of growth applied to the non-frozen EAV added to the frozen EAV. Because of the effect of the overlapping TIF districts, the EAV of properties within the TIFs are frozen at their initial value when the TIFs were established. This has the effect of keeping the total rate of EAV growth less than the estimated 3% amount. The SSA tax rate is a function of the annual total budget divided by the total EAV.

[2h[2h[2h[2h] Year One Tax Rate, Lifetime Tax Cap and Impact ] Year One Tax Rate, Lifetime Tax Cap and Impact ] Year One Tax Rate, Lifetime Tax Cap and Impact ] Year One Tax Rate, Lifetime Tax Cap and Impact on Property Taxeson Property Taxeson Property Taxeson Property Taxes The SSA levy will be listed on a property tax bill like any other taxing district, such as the Board of Education or Park District. The SSA levy is determined by three factors: the property’s assessed value (determined by the Cook County Assessor’s office), the current year state equalization factor (set by the State) and the current year SSA tax levy rate (determined by a commission of property and business owners from the SSA district). Each year, the SSA Commissioners must approve a budget for the following year. This budget determines what tax rate is needed, based on the sum total of the Equalized Assessed Value of all properties within the district.

HOW EQUALIZED ASSESSED VALUES (EAV) ARE CALCULATED:HOW EQUALIZED ASSESSED VALUES (EAV) ARE CALCULATED:HOW EQUALIZED ASSESSED VALUES (EAV) ARE CALCULATED:HOW EQUALIZED ASSESSED VALUES (EAV) ARE CALCULATED: The Cook County Assessor’s Office determines the assessment value for each property in Cook County. One third of Cook County properties are assessed each year, so that all properties are reassessed every three years. Properties in the City of Chicago are being reassessed in 2012. An explanation of how the Assessor’s Office assesses the value of a property and a search tool to look up the assessed value of a specific property can be found on the Cook County Assessor’s website: http://www.cookcountyassessor.com/ Property taxes are calculated based on a property’s Equalized Assessed Value, which is the Assessor’s Assessed Value multiplied by the Cook County State Equalization Factor. The Illinois Department of Revenue calculates a new equalization factor each year. The equalization factor is meant to equally distribute the tax burden among taxpayers. A detailed explanation can be found from the Illinois Department of Revenue’s website: http://tax.illinois.gov/ Example: Assessed Value (determined by Cook County Assessor) X State Equalizer for Cook County

Ex. EAV = $10,000 in Assessed Value X 3.3 (Cook County Equalizer for 2010) = $33,000 Any property tax exemptions are subtracted from the EAV before taxes are calculated.

HOW THE SSA ANNUAL TAX LEVY RATE IS CALCULATED:HOW THE SSA ANNUAL TAX LEVY RATE IS CALCULATED:HOW THE SSA ANNUAL TAX LEVY RATE IS CALCULATED:HOW THE SSA ANNUAL TAX LEVY RATE IS CALCULATED: The SSA tax rate is calculated each year based on a budget recommended by the SSA Commissioners. The budget is determined by the cost of needed programs and services, which are outlined in the annual workplan. Example: Annual SSA Budget / Total EAV for All Properties in the District = SSA Tax Levy Rate Ex. Annual SSA Budget = $515,962/ $113,748,267 (EAV) = 0.4536% If there are TIF districts that overlap an SSA, then the SSA, like any other taxing body, can only levy against the value of the property when the TIF district was created (also known as the frozen or base value). This is explained in greater detail below.

HOW AN INDIVIDUAL SSA TAX LEVY IS CALCULATED:HOW AN INDIVIDUAL SSA TAX LEVY IS CALCULATED:HOW AN INDIVIDUAL SSA TAX LEVY IS CALCULATED:HOW AN INDIVIDUAL SSA TAX LEVY IS CALCULATED: In the State of Illinois, SSA levies are determined based on the specific Equalized Assessed Value of a property multiplied by the same tax rate for all properties within the district. Once the Equalized Assessed Value of a property is known and the SSA tax levy rate is known, one can calculate the impact on a specific property. As a taxing district, an SSA tax levy will be listed on one’s tax bill as a line item, similar to the School District or Park District. Example: Equalized Assessed Value x Annual SSA Tax Levy Rate Ex. Equalized Assessed Value = $33,000 X 0.4536% = $149.69 EDGEWATER SSA YEAR ONE AND TYPICAL TAX RAEDGEWATER SSA YEAR ONE AND TYPICAL TAX RAEDGEWATER SSA YEAR ONE AND TYPICAL TAX RAEDGEWATER SSA YEAR ONE AND TYPICAL TAX RATETETETE The Edgewater SSA estimates the SSA tax rate in 2013 to be 0.4536%. This would be listed on a property tax bill as a taxing district (a new item for properties in the expansion area and would continue to appear to properties already in the SSA district). A summary analysis of all of the Property Index Numbers (PINs) within the SSA boundaries is shown in the table below. The analysis shows the breakdown of PINs by property class and the average payment given the 0.4536% tax rate.

It is estimated that the average SSA tax levy will be $571. The advisory committee indicated that the commissioners should review the community needs and adjust the budget accordingly every year. It is estimated that the 2013 SSA tax rate would be fairly typical for the future years. HOW TIFS IMPACT THE SSA LEVYHOW TIFS IMPACT THE SSA LEVYHOW TIFS IMPACT THE SSA LEVYHOW TIFS IMPACT THE SSA LEVY Seven hundred and two of the 1351 total PINs within the Edgewater SSA district are also within a TIF district. The presence of both a TIF district and an SSA district on a property does not impact how a taxpayer would calculate their property taxes; the approach outlined above applies to all properties. The presence of a TIF district does impact how much of an SSA tax levy the SSA can collect, which is explained in greater detail below. On average for the entire SSA district, for every $1 that is paid as an SSA tax, $0.33 is paid into overlapping TIFs and $0.67 is retained by the SSA. Tax Increment Finance Districts are governed by separate state statutes and function differently than Special Service Areas. An SSA is a new taxing district, where the amount collected is only spent within the district on programs that are determined by local taxpayers. A TIF district is not a new taxing district. Where TIFs are established, property owners continue to pay their taxes as they normally would, but the taxing bodies (including the School District and SSAs) can only levy against the frozen or base equalized assessed value of the properties within the district. If the assessed value of a property has increased over time then any taxes levied against that increased value are kept in the TIF fund. Taxpayers continue to pay their taxes based upon their Equalized Assessed Value and the total tax levy rate of all of the different tax paying bodies that overlay their property. If an SSA is created, then the SSA tax rate is added to the total property tax rate. The SSA can only levy against the value of a property when it was first added to the TIF district (also know as the frozen or base value).

Example:

A TIF district is created in 2000. A property named “My Business” is located in the TIF district and had an Equalized Assessed Value of $50,000 in the year 2000. In 2012, a new Special Service Area is created and includes My Business within its boundaries. The Equalized Assessed Value of My Business is now $75,000. As a taxpayer, the owner of My Business would pay an additional property tax amount based on the current value of the property multiplied by the new SSA tax rate. SSA Taxes for My Business in 2012 = $75,000 (EAV) x 0.4536% (SSA tax rate) = $340.20 Of the total new taxes created by the SSA district, the SSA can only levy (or collect) against the value of the property when the TIF was first created, which in this example is $50,000. SSA tax levy collected from My Business = $50,000 (Base EAV in 2000) x 0.4536% (SSA tax rate) = $226.80 The remaining amount of the SSA tax payment is paid into the TIF district. SSA Levy amount paid into the TIF = (Current EAV – Base EAV) x SSA tax rate = ($75,000 - $50,000) x 0.4536% = $113..40

DIFFERENCE BETWEEN TAX RATE AND INCREASE IN PROPERTY TDIFFERENCE BETWEEN TAX RATE AND INCREASE IN PROPERTY TDIFFERENCE BETWEEN TAX RATE AND INCREASE IN PROPERTY TDIFFERENCE BETWEEN TAX RATE AND INCREASE IN PROPERTY TAXESAXESAXESAXES It is important to make the distinction between the annual SSA tax levy rate, which for the Edgewater SSA a typical year rate is expected to be 0.4536%, and the share of property taxes the SSA tax represents. The adjacent figure shows how in Edgewater the most recent property tax rate for 2010 was 4.931% for properties not

within the SSA district in 2012. This represents all the different taxing bodies. A new SSA

tax rate of 0.4536% would be added to the existing 4.931% for properties in the expansion area, which represents a 9.2% increase of a total property tax bill. Properties already in the existing Edgewater SSA district would experience a decrease in their SSA tax levy rate from the 2012 rate of 0.4730%.

SSA TAX RATE CAPSSA TAX RATE CAPSSA TAX RATE CAPSSA TAX RATE CAP While the SSA Tax Rate could change each year depending on local needs, it can never exceed the Tax Rate Cap. The Tax Rate Cap is set when an SSA is created or reconstituted and cannot change for the life of the SSA. The Advisory Committee sought to identify an appropriate rate that would allow a typical SSA budget to grow at least at the usual rate of inflation (3%) a year, while accounting for the limits of Equalized Assessed Value appreciation due to the presence of overlapping TIF districts (see above). The table below summarizes how this analysis was evaluated. The typical year budget of $515,962 at an annual 3% growth in the cost of services would be $693,410 in 10 years.

The Advisory Committee evaluated several different scenarios that accounted for local factors to identify the tax cap rate that would allow the SSA to continue providing the same level of services with some small room for flexibility, while balancing the need to minimize the impact on local taxpayers.

The table below shows the impact of different tax cap scenarios. A tax cap rate of 0.55% was determined to be the appropriate rate.

EDGEWATEREDGEWATEREDGEWATEREDGEWATER SSA HISTORICAL TAX RATES SSA HISTORICAL TAX RATES SSA HISTORICAL TAX RATES SSA HISTORICAL TAX RATES Over the life of the existing SSA district, the Edgewater Chamber of Commerce and the commissioners of the SSA have sought to continue providing a wide range of valuable services while balancing the impact on local taxpayers. The chart below demonstrates the relationship between the annual tax rate and the tax rate cap. As the life of an SSA approaches its expiration, those with overlapping TIF districts tend to experience tax rates that approach the tax rate cap rate. The main reason is because the cost to provide services increases at a greater rate than the Equalized Assessed Value of the properties in the boundaries, due to the lack of growth in the frozen or base EAV.

[3] GOVERNANCE, MANAGEMENT AND [3] GOVERNANCE, MANAGEMENT AND [3] GOVERNANCE, MANAGEMENT AND [3] GOVERNANCE, MANAGEMENT AND ASSESSMENTASSESSMENTASSESSMENTASSESSMENT

[3a] SSA Commission[3a] SSA Commission[3a] SSA Commission[3a] SSA Commission Commissioners will be qualified if they are owners or lessees/renters of property within the SSA district. We will strive to have a balance of property and business owners, as well as geographic representation throughout the district. Residential owners will be welcome to serve on the commission. The selection/renewal process for commissioners will involve posting notice of an opening on the SSA website along with links to the paperwork needed to apply (commissioner application, ethics forms, etc.) An announcement of openings will also be included in the Sole Service Provider’s email communications to members, community residents and other stakeholders. Applications will be accepted at the Sole Service Provider office for 30 days, after which the application period will end. The applications will be reviewed by the Commission and recommended candidates will be forwarded to the Aldermen’s offices for their review and approval. The commission is a public body and is therefore subject to the Illinois Open Meetings Act.

[3b] Service Provider Agency[3b] Service Provider Agency[3b] Service Provider Agency[3b] Service Provider Agency Sean Smith as the President /CEO of the Edgewater Chamber of Commerce will head the SSA initiative and will receive 10% of his salary for this work. Tom Jerome, as the Program Manager of the SSA will receive 100% of his salary from the SSA and will therefore provide 100% of his time to managing the SSA program. Sean will supervise the Program Manager, attend Commission meetings and mandatory trainings, oversee required paperwork and assist with all regulatory and compliance issues related to the SSA. Tom will be responsible for the daily duties associated with the SSA, including but not limited to, conducting the quarterly Commissioners meetings, preparing the budget documentation to be presented each year to the City of Chicago Department of Housing and Economic Development for approval, providing information in the form of mail, fliers and website updates pertaining to the SSA activities and interfacing with the Aldermanic offices, block clubs, local organizations and appropriate departments within the City of Chicago. Tom will also be responsible for making sure that all of the initiatives and programs provided by the SSA are well managed. This includes, but is not limited to preparing the RFPs, securing and evaluating the vendors, making sure that all services are meeting the needs of the property owners and local businesses and residents and acting as the interface between the vendors and the local business community as well as the appropriate departments within the City of Chicago.

He will also be responsible for attending to the financial responsibilities, which include, but may not be limited to, making sure that all bills are paid, all bank statements are kept up to date, all budgetary issues are being maintained and providing this information to the Commissioners at the quarterly meetings as well as keeping the Edgewater Chamber of Commerce informed. Tom, as the Program Manager will also be responsible for submitting all of the necessary documentation throughout the year that is required as part of the Ordinance agreement with the City of Chicago and the Department of Housing and Economic Development. This includes but may not be limited to mid-year evaluation, end of year evaluation and securing the annual audit documentation.

[3c] Program Assessment[3c] Program Assessment[3c] Program Assessment[3c] Program Assessment Programs and initiatives will be assessed by using a variety of different methods. Surveys will be conducted thought out the year asking the local businesses and property owners what services that have been provided are the most successful and appreciated. Field checks and site visits will be conducted frequently to ensure compliance of the contractual agreements set forth in the service agreements with vendors. Check in sites will be established in order that vendors will be required to provide documentation as to their adherence to the parameters of the service agreements. Meetings will be held regularly with each of the Aldermanic offices so that information can be disseminated between organizations as to the effectiveness of each program and initiative. Sean Smith, as President/CEO of the Edgewater Chamber of Commerce, the Sole Service Provider of SSA#26 will provide general policy oversight and evaluation.

[3d] Annual Report and Comm[3d] Annual Report and Comm[3d] Annual Report and Comm[3d] Annual Report and Communicationsunicationsunicationsunications An annual report will be prepared beginning in 2013. This report will include all pertinent information regarding the SSA in terms of financial records and operation. Communications regarding the SSA financial accountability and operations will be provided by mail, fliers and/or website updates. This information will include, but may not be limited to, budget documentation, notice of scheduled quarterly Commissioner Meetings and minutes from these meetings. Boundary information and a map of the district will also be provided via the website, as well as news pertaining to upcoming events and initiatives with SSA involvement. Contact information will be provided on the website and included in all correspondence.

[4] Exhibits[4] Exhibits[4] Exhibits[4] Exhibits