The Pulaski Industrial Corridor: Origin + TIF Funding
August 5, 2019
by Lee Helmer
The Name
The areas in Chicago known as “industrial corridors” developed names usually based on a major street or waterway. Some might be familiar with the “North Branch” corridor as the north branch of the Chicago river, associated with the controversial Lincoln Yards development. Aside from the Pulaski Corridor, there are ~23 other designated industrial areas , that take up ~12% of the city’s land. These manufacturing districs and transportation hubs are essential to the city’s infrastructure and economy, having direct access to rail lines, waterways and highways to transport goods throughout the city for manufacturing and processing.
In Hermosa’s case, being surrounded by rail lines has made the area a key industrial hub. Well known businesses include Newly Wed Foods, Studio41 and Climate Guard. The corridor’s history touts names like the original Schwinn factory (1718-1740 N. Kildare & 1856 N. Kostner Ave), the Hammond Organ Co. (now Workshop 4200 on Diversey) and numerous, used-to-be-famous products like Johnson’s ice skate factory, who’s owner rubbed shoulders with the Chicago Blackhawks + figure skater Sonia Henie.
When US manufacturing drastically declined in the 1970s, many industrial areas that were once walking distance to a factory worker’s home, fell into disrepair. TIF (Tax Increment Financing) districts were first established in 1984, likely in reaction to the changing economical needs. The city then allocates monies into each TIF district fund from sales & property taxes.
The PULASKI CORRIDOR TIF
Approved in 1999 by the Chicago City Council (in a near-unanimous vote), the Pulaski Corridor TIF expires in 2023.
“The Pulaski Corridor TIF is characterized by older industrial and commercial properties along Pulaski Road and Fullerton, North and Grand avenues, and mostly industrial properties along a former Chicago, Minneapolis, St. Paul railroad right-of-way. Encompassing portions of the Hermosa, Avondale, Logan Square and Humboldt Park communities, the 383-acre TIF is intended to foster new construction and rehabilitation projects that create jobs and enhance the area’s viability for additional private investment. Priorities include land assembly initiatives, rehabilitation efforts, and public works improvements that facilitate traffic flow, and enhance public transit amenities.”
Some recent and larger projects that were allocated to this fund:
Affordable Senior Housing on North + Pulaski: TIF of $4m in 2012, completed
Marine Leadership Academy Improvements: TIF of $4.5m in 2014, completed
Kosciuszko Park Improvements: TIF of 1.85m in 2019, incomplete
Magid Glove Factory/606 Affordable Housing: TIF of $11m in 2019, incomplete
With TIF funds accumulating each year by taxpayers, but noting $11m allocated in 2019-2020 for the Magid Glove affordable housing complex at the 606’s west trail head (see allocation below), how much will be left and what should we be spending it on?