The two-pronged redevelopment of the 1800 and 2200 blocks of Washington Boulevard and Lake Street is part of the CHA's $1-billion Plan for Transformation. The plan has already seen demolition of the city's former high-rise public housing projects in favor of mixed-income redevelopment projects on the land, which includes the 11 acres on the West Side where entities formed by Brinshore-Michaels will build.
Higher costs for site preparation, environmental remediation and infrastructure make tax increment necessary for the second phase of the Henry Horner redevelopment feasible, says Dina Wayne of the city's Department of Planning and Development. She says public money is paying for about 25% of the cost of the project.
However, the tax increment financing is guaranteed by the MacArthur Foundation in a $15-million program that is backing four CHA redevelopment projects, Wayne adds.
Low-income housing tax credits will provide $5.4 million, with another $3.5 million coming from the city's Department of Housing. Brinshore-Michaels also will tap into $2.5 million of mezzanine financing. The developers expect to see a $2-million profit in the second phase of the redevelopment.
The second phase follows a 551-unit project, which included 155 rental units in 15 buildings, completed in 2001.
"The developer has done a good job thus far on the part he's done already," says 27th Ward Alderman Walter Burnett. "It'll have a dynamic effect on the community."
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