CTPF Will Not Fund Lincoln Yards Development
The Chicago Teachers Pension Fund (CTPF) said no to funding the controversial Sterling Bay Lincoln Yards development.
The Chicago Teachers’ Pension Fund Board of Trustees had considered hiring a consultant to look into the opportunity, but declined to make a motion at their August 17, 2023, meeting.
“We are grateful for the chance to thoroughly evaluate this proposal,” said Jeffery Blackwell, President of the CTPF Board of Trustees. “However, after careful deliberation, it became evident that the investment did not align seamlessly with the goals of our Fund. This was a difficult decision for our Trustees, as there were many positive aspects of the development, but ultimately it was not the right fit for CTPF, as we are overallocated in our real estate portfolio. We will not be pursuing this investment.”
CTPF’s Investment Committee received a presentation from Sterling Bay and Manulife Investment Management on May 23 and everyone present at the meeting voted to authorize an investigation into a potential investment in the Lincoln Yard development (Retired Teacher Trustee Maria J. Rodriguez did not vote). Some media outlets reported that Sterling Bay was seeking up to $300 million in CTPF financing.
CTPF investment consultant Callan conducted research into the proposal and thus decided the risk was not worth it. After Callan presented its findings at the August 17 Board Meeting, the Board declined to take further action and no vote was taken.
The Chicago Teachers Union (CTU) who has a majority of CORE Trustees on the Pension Board backed the possible financing of this mega 53 acre development because the developer would provide 30 percent affordable housing. Several investors had pulled out of this project after a downturn in the commercial real estate market.
The CTU had previously fought giving Sterling Bay $1.3 billion in Tax Increment Financing (TIF) when the city said it did not have enough money to fund the schools. Nine CTU teachers were arrested during the 2019 teachers strike protesting against the Lincoln Yards TIF. Most of the activists who were arrested are no longer teaching.
I spoke out as a teacher delegate at the CTU House of Delegates Meeting at the end of last year and several retired teachers and administrators voiced their opposition to the Lincoln Yards investment proposal.
The sudden decision came on the heels of media reports that CTPF Executive Director Carlton Lenoir was put on a Do Not Hire List at the Illinois Teacher Retirement System (TRS) where he previously worked after the Office of the Executive Inspector (OEIG) investigated a complaint that he had improperly forwarded confidential documents to his personl email accounts.
The alarming story that we at Second City Teachers first broke created a panic at the Fund after other business outlets reported the finding.
"Our Board of Trustees was fully apprised of this situation in August 2022, and we now consider the matter closed,” President Blackwell said. “Carlton W. Lenoir Sr. is a valued employee at CTPF whose leadership has earned the respect of all levels of our organization. We look forward to his leadership for many years to come."
The Retired Teachers Association of Chicago or RTAC expressed disappointment with the Executive Director after his Do Not Hire fiasco and opposed the LincolnYards investment. While Carlton Lenoir appears to have the full support of the board trustees, Lincoln Yards has been relegated to the dust bin.