An Assessment of Business Owners in the
87th & Cottage Grove TIF
Business District
Chicago, 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
“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
University of Illinois Extension
Survey
•Management & Implementation
Design
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
Final Report:
An assessment of
Business Owners in
the 87th & Cottage
Grove TIF Business
District 2006
TIF Designation of The 87th & Cottage Grove
Business District
Extension-Cook County
A Plan for the 21st Century
In 2001 City of Chicago
eligibility study concluded:

Business district was eligible for the tax increment
financing:



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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
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
Purpose of the 87th & Cottage Grove –
TIF Advisory Council
To 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
A Survey of this business district could:
1.
2.
3.
4.
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
The Survey Process


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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
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
Business Owners View of the
Local Business Climate

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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
Rating for other businesses

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84% indicating a decline in retail businesses
68% expecting a decline in service businesses
Extension-Cook County
A Plan for the 21st Century
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
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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


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
Business Owners Recognize the Need
to Improve Business Marketing
The top ranked training priority:


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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
Methods of marketing
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Brochures, newspapers and the yellow pages
Group marketing events; less than 30%
Extension-Cook County
A Plan for the 21st Century
Business Owners Want Information on
Business Financing and Funding

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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
The Type of Technology Usage Varied
for Business Owners

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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
Participation in Business Training and
Recommended Training Format
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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
Best time for training and workshops
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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
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
CONCLUDING POINTS
1.
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
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2. Need to Reconnect with the Business Community
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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
3. Take Steps to Improve the Appearance of their
Buildings
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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
4. The 87th & Cottage Grove TIF Council Must Commit

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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
5. Education and Training Could be the Key for
Change
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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
6. Businesses, Council and Stakeholders Must Work
Together

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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
Thank You
University of Illinois Extension
and
87th & Cottage Grove TIF Advisory Council
For a complete report contact:
Rhonda Hardy rihardy@illinois.edu