Five years ago, then-Mayor Rahm Emanuel devised a plan to counter complaints that his downtown-centric development efforts had left Chicago neighborhoods behind.
Emanuel let developers in a broader downtown area build bigger and taller projects so long as they agreed to share the wealth with long-neglected neighborhoods on the South and West sides.
On Monday, Mayor Lori Lightfoot basked in the glow of her predecessor’s brainchild, doling out $10 million in Neighborhood Opportunity Fund grants to 27 Chicago entrepreneurs.
Individual grants range from $49,000 to $1.7 million. They mark the second round of grants awarded since Lightfoot took office and revamped the program to fuel her signature Invest South/West initiative.
No wonder more than half the designated businesses are located along commercial strips designated as part of Invest South/West, and 75% of the finalists are people of color.
Grant winners include a juice bar in Humboldt Park, a shared kitchen in Greater Grand Crossing and a dance studio in Calumet Heights.
They were chosen by an evaluation committee based on factors including location and viability of the project; applicant experience; completeness of the proposal; and the needs of the surrounding neighborhood.
“One of the hardest parts of being an entrepreneur is securing financing for construction costs. These grants will help overcome those hurdles,” Planning and Development Commissioner Maurice Cox was quoted as saying in a press release.
Lightfoot said her second round of Neighborhood Opportunity Fund grants will “support more than $20 million in retail improvements along commercial corridors” on the West, South and Southwest Sides.
“We will not only be able to help more of our creatives and entrepreneurs from underrepresented backgrounds gain the resources they need to make their dreams a reality, but also bring new socio-economic catalysts to some of our underserved communities,” the mayor was quoted as saying.
“When we are purposeful about investing in the lives of our residents, our entire city thrives. … I am beyond excited to see ground being broken and ribbons being cut to each of their projects in the coming months.”
In 2016, the City Council signed off on Emanuel’s plan to generate a pot of money to rebuild struggling neighborhoods at the expense of downtown developers, even though some aldermen were concerned it would create a mayoral “slush fund” akin to tax increment financing.
Lightfoot made the Robin Hood program her own with reforms tailor-made to fuel her $750 million plan to bring “transformative change” to 10 such neighborhoods.
The changes paved the way for businesses to recoup 100% of a project’s total price tag, provided they are owned and staffed by local residents. Recipients get access to lending coaches, design professionals, construction advisers and program “concierges.”
“These are architects ... who will give them assistance on how to build out their interiors and how to restore their storefronts to construction managers who will help them identify contractors who can do the work to financial coaches,’’ Cox said on the day Lightfoot awarded her first round of $5.4 million in grants to 32 Chicago businesses.
“I really think this kind of team of folks that are available to them now to move their project forward is going to get them to the finish line.”
Before the coronavirus pandemic brought development to a virtual halt, the Neighborhood Opportunity Fund held an embarrassment of riches, thanks to the downtown development boom.
A year ago, the biggest payment into the fund so far was generated by the now-completed Bank of America Tower project at 110 N. Wacker Dr., with a $22.9 million contribution.
The downtown bonus system that directs 80% of its receipts to the Neighborhood Opportunity Fund, with the remainder going to landmarks and local infrastructure, has received contributions from 60 downtown projects. Together, they have generated approximately $227.8 million in commitments and $95.1 million in collections to date.
Since its inception, the fund has benefited 250 Chicago businesses.
City Council approval is required for all grants over $250,000.
