The Lincoln Yards TIF Developer Sterling Bay asked the Chicago Teachers Pension Fund (CTPF) to invest in their controversial real estate project.
The Pension Fund Trustees voted at their Investment Committee Meeting last week to look more into a deal that would invest the teachers’ pension money in the mega residential development project.
What makes this decision rather extraordinary is that just four years ago the Chicago Teachers Union, which controls the Pension Board, led a protest during a 2019 Teachers Strike against the Lincoln Yards TIF deal, in which the City of Chicago agreed to give a billion dollars in taxpayer money to a private developer on the Northside.
The Teachers Union led by CORE protested fervently once upon a time against this corporate subsidy giveaway that gives tax monies to wealthy developments rather than the South and West Sides where it was supposed to eradicate blighted areas of the city.
Vice President Jackson Potter got arrested in 2011 when he helped lead a protest against a TIF subsidy to the Grossinger City Cadillac Dealership in Lincoln Park at a time when the city was closing schools and mental health clinics claiming it was broke.
Jackson helped lead a peaceful protest of about 200 people that targeted Grossinger because the luxury car dealership got $8 million in tax increment financing to develop its five-story dealership in one of the most expensive areas of the city.
“We are not against TIFs,” CTU President Stacy Gates said at the May 31 House of Delegates Meeting. “We are against the misuse of TIFs.”
Certainly there is no greater misuse of TIFs than the Lincoln Yards TIF where Sterling Bay landed a corrupt inside deal with the city to get tax money that will pay for infrastructure to redevelop an old industrial site and turn it into a sprawling upper-income residential haven for people with money to spend.
“We want to thank the Board of Trustees for what is a great Chicago story,” said Sterling Bay rep Mark Feliciano. “We want to touch on how this investment project will benefit the city and Chicago Teachers Pension Fund.”
Sterling Bay stated that they are the most active developer in Chicago and they employ union labor, plus they give to charities and paid over $1 billion in taxes to Cook County. They claim, like Amazon and other giant corporations seeking massive tax breaks, that their investment will result in 20,000 jobs and eventually generate up to $2 billion in taxes for the city.
They added that they have met with Chicago Mayor and former CTU Organizer Brandon Johnson and cited his Pathway Out of Poverty slogan.
They said there has been a “miscommunication” on TIFs, because the tax money for this private development will go toward infrastructure such as new roads and bridges to replace an old steel mill. They then claimed with a straight face, “Not one dollar will go to us, just to the infrastructure.”
Members First Teacher Trustee Victor Ochoa agreed, saying it’s robbery when TIFs pay for private stadiums and dealerships, but paying for infrastructure would be a huge change. “It would be a nice thing to be a part of, instead of just stealing money.”
Except this is a ludicrous claim because the infrastructure is being financed and built by the city to benefit this private company.
Sterling Bay reps then showed their corporate video of smiling upper income white people with a black, Asian and Hispanic person or persons thrown in for added effect enjoying water taxis, neighborhood shuttles and a soccer field (with mostly white people playing soccer in a sport dominated in the city by Latinx children!), and Asians and Latinx enjoying drinks on rooftops.
“Moving Chicago Forward! Lincoln Yards for Everyone!”
Translation - Move out the working class, bring in more luxury for people with money!
“We believe this will activate Chicago! It’s a Chicago story!”
While Sterling Bay touted building 1200 affordable housing units and putting $25 million into the housing opportunity fund, the fact is developments like this are the reason the working poor can no longer afford to live in this city. They said they cleaned up a very dirty site, built a life sciences building that the many universities in the city can use, and will showcase over 20 acres of green space, plenty of residential parks, music venues and basketball courts.
But who will this development ultimately benefit?
“We have made investments all over the country,” Sterling Bay said, “and we never understood why Chicago was so far behind.”
CORE Teacher Trustee Quentin Washington asked if the owners of the homes will be homeowners or the investors, and Sterling Bay said it will depend on what the investors decide, either to rent out or sell off the residential properties, “whatever is in the best interest for revenue generation.” Washington also asked about parking because he always “cringes” when there is not enough parking. Sterling said there will be 1000 + parking spaces in garages and each unit will get a parking space, so it will be “adequate.” He last asked about the music venues because he’s a music teacher, wondering if they would rent out the venues, and Sterling replied the community space will belong to the community.
CORE Teacher Trustee Tammie Vinson asked if this project will move forward smoothly or will there be any additional delays. The developer said they are in discussions on an almost daily basis with Mayor Brandon Johnson.
The two trustees who questioned the deal were Teacher Trustee Jacqueline Price-Ward and Retired Teacher Trustee Maria J. Rodriguez.
Price-Ward noted the problems with financing infrastructure, citing the controversial General Iron project on the Southside and building a high school on land designated for public housing in the Chinatown/ South Loop area. She said she will make a phone call to Brandon Johnson about the proposed investment project.
Rodriguez asked Sterling Bay who reached out to the Pension Fund. Investment Chair Phil Weiss quickly said it was his idea, but then Executive Director Lenoir Carlton just as quickly said it was the Fund’s decision to invite the real estate company to present their plans. Ongoing talks with the Mayor’s office would suggest bigger forces are at play here.
The recommendation to investigate the Sterling Bay Lincoln Yards Real Estate Development then passed unanimously, with every CORE Trustee (Mary Sharon-Reilly, Jeffery Blackwell, Jacqueline Price-Ward, Tammie Vinson and Quentin Washington) and Members First Trustee (Phil Weiss and Victor Ochoa) voting in favor of investigating.
Sterling Bay can pay for it themselves. In these times, stick with investments that have worked!