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Proposed West Town Special Service Area Expansion Prompts Serious Debate

By Staff in News on Jan 18, 2014 7:30PM

The state of Illinois and the city of Chicago, in conjunction, have previously sanctioned the use of Special Service Areas (SSAs) as self-organized taxing districts. SSAs have often been a heated topic of discussion within the city due to the provision of additional tax burdens on homeowners and local business proprietors, as city and state taxes often do not cover the needs of the district. A microcosm of the debate is currently underway within SSA 29, also known as the West Town SSA.

But first, some background: SSAs impose an additional real estate property tax levy to fund additional services beyond municipal services within the defined region. Such services typically include public way maintenance, beautification, landscaping, advertising/marketing, business retention/recruitment, parking, and safety.

There are currently 44 active SSAs in the city of Chicago with budgets that range from as little as $10,000 to as much as $2.7 million. SSAs are managed by voluntary commissions comprised only of property owners which pay the additional tax within the district--thus only those that pay the tax have direct input into how the money is spent.

Some argue that the additional tax provides great benefit to the designated region and are worth the additional taxpayer outlays, while others counter with the notion that taxes are a burden and should be reduced as much as possible.

As of December 31, 2014, the West Town SSA is set to expire. The current Commission and Advisory Board is working to apply for a 15-year renewal of the SSA in a reconstituted fashion before the City Council’s Budget Committee on October 12.

As currently defined, the SSA includes Chicago Ave. from Halsted to California; Milwaukee Ave. from Racine to Erie; Ogden Ave. from Fry to the Kennedy Expressway; and Damen Ave. from Chicago to Grand.

The proposed SSA boundaries (SSA 57) for January 1, 2015 through December 31, 2030 would include Chicago Ave. from Halsted to Western, Milwaukee Ave. from Division to Erie, Ogden Ave. from Fry to the Kennedy Expressway, Ashland Ave. from Division to Chicago, and Damen Ave. from Chicago to Huron.

The proposed SSA eliminates all streets within the 26th Ward under the watch of Alderman Roberto Maldonado and includes new areas along Ashland and Milwaukee Aves.

A community meeting was held January 13 at the Ukrainian Institute of Modern Art in order to discuss the proposed SSA. Speaking at the meeting were representatives from the West Town Chamber of Commerce; the City of Chicago’s Department of Planning and Development; the Advisory Committee members of the proposed SSA; and PLACE Consulting, a firm hired by the SSA to assist in its reconstitution and renewal.

During the meeting, the West Town Chamber of Commerce explained that Ald. Maldonado elected out of the SSA for all streets within his district. Furthermore, attendees of the meeting were told that the new streets were included as a result of responses to surveys conducted by the SSA’s offices with property owners within said streets.

The surveys were reportedly conducted in a multitude of fashions, including door-to-door from April to November 2013, as well as via email, phone, and fax.

Property owners in attendance at the meeting held mixed opinions on the proposed Special Service Area. While some expressed their desires to be included in the SSA because of the added benefits, others opined that such tax dollars are often used frivolously and provide no tangible value.

A fourth meeting to discuss the proposed SSA is scheduled for January 21 from 1 p.m. to 3 pm at the Ukrainian Institute of Modern Art.

By: Amol Gavankar