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An Assessment of Business Owners in the 87 th & Cottage Grove TIF Business District Chicago, Illinois

An Assessment of Business Owners in the 87 th & Cottage Grove TIF Business District Chicago, Illinois. A Comprehensive Report In partnership with 87 th & Cottage Grove TIF Advisory Council SBDC Chicago State University Business & Economic Revitalization Assoc.

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An Assessment of Business Owners in the 87 th & Cottage Grove TIF Business District Chicago, Illinois

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  1. An Assessment of Business Owners in the 87th & Cottage Grove TIFBusiness DistrictChicago, Illinois A Comprehensive Report In partnership with 87th & Cottage Grove TIF Advisory Council SBDC Chicago State University Business & Economic Revitalization Assoc. Chicago State University School of Business Extension-Cook County A Plan for the 21st Century

  2. “The success of this survey depended on partnership involvement at every phase of the project.” University of Illinois Extension • 87th & Cottage Grove • TIF Advisory Council • Planning & Development Final Report: An assessment of Business Owners in the 87th & Cottage Grove TIF Business District 2006 Survey Design • University of Illinois Extension • Management & Implementation • Strategic Partners: • BERA • Chesterfield Tom Thumb Day Care Center • 6th District Aldermanic Ward • Chicago State University School of Business • SBDC and the Entrepreneurial Center at Chicago State University • CBA • Citizen Newspaper • Resources • Expertise Extension-Cook County A Plan for the 21st Century

  3. TIF Designation of The 87th & Cottage Grove Business District Extension-Cook County A Plan for the 21st Century

  4. In 2001 City of Chicago eligibility study concluded: • Business district was eligible for the tax increment financing: • 50% or more of the structures are 35 years or older • Major extent of structures are below minimum code with inadequate utilities • Sited a lack of investment • Not part of any coordinated development strategy • Conclusion: TIF initiative could assist in redevelopment objectives for the area Extension-Cook County A Plan for the 21st Century

  5. What is a TIF? Tax Increment Financing (TIF) is a tool created by state law to help local governments, such as the City of Chicago, generate money for economic development. A TIF allows new property tax dollars to be used to fund improvements and new development within the TIF designated area. The TIF designation usually lasts for 23 years For more information refer to the following sources: www.cityofchicago.org and www.NCBG.org Extension-Cook County A Plan for the 21st Century

  6. Purpose of the 87th & Cottage Grove – TIF Advisory CouncilTo support consistent community participation by businesses, residents and key stakeholders Mission Statement: To improve the physical appearance and economic viability of Cottage Grove Avenue from 71st Street to 95th Street and 79th Street from King Drive to South Chicago Avenue. Additionally, our charter is to create a useable model for community-based administration of a TIF from conception to completion Extension-Cook County A Plan for the 21st Century

  7. A Survey of this business district could: • Strengthen the effectiveness and outreach of the Council • Increase awareness of TIF-driven opportunities for businesses • Identify specific actins and training needs for businesses • Gather information for key stakeholders Extension-Cook County A Plan for the 21st Century

  8. The Survey Process • Business population targeted for the survey (approximately 235) • Businesses who could qualify to use SBIF and TIF Works Programs • A 12% response rate for the survey • 29 businesses surveyed • 83 question survey through personal interviews Extension-Cook County A Plan for the 21st Century

  9. About the Businesses Surveyed • Primary locally owned (90%) • Family businesses (52%) • In the retail (28%) or service sectors (55%) • 66% own their building • Have been in business an average 28 years • A source of employment for the community • Average business has 8 full or part time employees • 11 out of 29 are members of local chamber Extension-Cook County A Plan for the 21st Century

  10. Business Owners View of theLocal Business Climate • Fairly optimistic view for the future of their business • 83% expect an increase in sales over the next 3 years • 79% plan to expand the range of goods and services • 45% will be hiring new employees in the next year • One business may close in 3 yrs because retiring Extension-Cook County A Plan for the 21st Century

  11. Rating for other businesses • 84% indicating a decline in retail businesses • 68% expecting a decline in service businesses Extension-Cook County A Plan for the 21st Century

  12. Business Owners are Concerned about the Appearance of the Business District When asked to rate fourteen characteristics: • Lowest ratings: attractiveness rated poor (40%) or fair (30%); • Second lowest ratings: cleanliness rated poor (39%) or fair at (60%) Extension-Cook County A Plan for the 21st Century

  13. Strong interest in building renovation and façade improvement • 76% believe building improvements are needed to attract more customers • 69% are interested in restoring their façade in the next three years • 90% agreed: “The storefronts in the business district need improvement.” Extension-Cook County A Plan for the 21st Century

  14. 96% agreed “It is important for merchants to work together on our business district improvements projects” • 76% are willing to coordinate design efforts with other businesses Extension-Cook County A Plan for the 21st Century

  15. Business Owners Recognize the Need to Improve Business Marketing The top ranked training priority: • Advertising promotion (48%) • Customer relations (38%) • Marketing services were most difficult supportive business service to find Extension-Cook County A Plan for the 21st Century

  16. Methods of marketing • Brochures, newspapers and the yellow pages • Group marketing events; less than 30% Extension-Cook County A Plan for the 21st Century

  17. Business Owners Want Information on Business Financing and Funding • 84% want information and training on business financing; • 55% would like additional information about grants and subsidies • 76% need financial assistance for building improvements Extension-Cook County A Plan for the 21st Century

  18. The Type of Technology Usage Varied for Business Owners • 75% indicated that they use email, internet and computers in their business • Less than 45% use technology-based services (electronic banking, sales reporting) Extension-Cook County A Plan for the 21st Century

  19. Participation in Business Training and Recommended Training Format • 38% participated in employee training programs • 48% would like to explore job training program opportunities • 10% have participated in training programs administered by Illinois or federal government agencies Extension-Cook County A Plan for the 21st Century

  20. Best time for training and workshops • Early morning and evening (after 7 p.m.) • On weekdays • Training methods is “one speaker, a specialist in the field” (55%) Extension-Cook County A Plan for the 21st Century

  21. Concluding Statement: “Stability is the foundational asset of this business district; the overall apathy in appearance is a symptom of its challenges” Extension-Cook County A Plan for the 21st Century

  22. CONCLUDING POINTS • Businesses are leaders in their own right • Businesses should be commended for their business longevity • These businesses have business leadership skills • Should utilize the leadership assets that have supported them through • Use these skill to connect with those businesses who could benefit from their expertise

  23. 2. Need to Reconnect with the Business Community • Survey responses indicates that there is a disconnect • Do not have a positive feel about the businesses community • Do want to and understand the value of becoming “more involved” Extension-Cook County A Plan for the 21st Century

  24. 3. Take Steps to Improve the Appearance of their Buildings • Committed to improve the outer environment of their business • Take advantage of TIF funding dollars • Address any challenges they may have in accessing these resources Extension-Cook County A Plan for the 21st Century

  25. 4. The 87th & Cottage Grove TIF Council Must Commit • Council must aggressively seek ways to fulfill their mission • They could hold the key to creating a successful environment for these businesses • They should identify key strategies Extension-Cook County A Plan for the 21st Century

  26. 5. Education and Training Could be the Key for Change • Crucial business skills in marketing, technology, succession planning • Identification of non-traditional business opportunities • Understand the impact of local, regional and global plans Extension-Cook County A Plan for the 21st Century

  27. 6. Businesses, Council and Stakeholders Must Work Together • Find creative ways to address the needs of these local businesses • Be more in-tuned with what, how, when and where they need assistance • Work on creating a supportive environment Extension-Cook County A Plan for the 21st Century

  28. Thank You University of Illinois Extension and 87th & Cottage Grove TIF Advisory Council For a complete report contact: Rhonda Hardy rihardy@illinois.edu

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