tlmission regarding cuisine ofthediaspora proposal …€¦ · inventory profile: iii. background...

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City of Chicago Department of Community Development STAFF REPORT TO THE COMMUNITY DEVELOPMENT COl\tlMISSION REGARDING CUISINE OF THE DIASPORA PROPOSAL November 10,2009 I. PROJECT IDENTIFICATION AND OVERVIEW Project Name: Applicant Name: Project Address: Ward and Alderman: Community Area: Redevelopment Project Area: Requested Action: Proposed Project: Appraised Market Value: Sale Price: ..Acquisition Assistance: TIF Assistance: II. PROPERTY DESCRIPTION Cuisine of the Diaspora (the "Project") Urban Juncture, Inc. (the "Applicant"). 300-314 East 51st Street, and 320 East 51st Street,5044- 5048 S. Calumet 3 rd Ward, Ald. Dowell Grand Boulevard 47th/King Drive TIP TIP assistance and negotiated sale of unimproved land. This transit-oriented development will establish a culinary incubator as a platform for community revitalization. It will create four restaurants and one fresh produce store in a 100-year-old retail building adjacent to the 51st Street CTA Green Line. The development also includes office space to support the culinary venues and 16,000 square feet of patron parking. $76,000 for one City-owned parcel that is required to extend the parking area, or $8.00 per square foot. $10,000 $66,000 $3,000,000

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Page 1: tlMISSION REGARDING CUISINE OFTHEDIASPORA PROPOSAL …€¦ · Inventory Profile: III. BACKGROUND 300-314East 51st Street, 320 East 51st Street and 5044 5048 S. Calumet Avenue. The

City of ChicagoDepartment of Community Development

STAFF REPORTTO THE

COMMUNITY DEVELOPMENT COl\tlMISSIONREGARDING

CUISINE OF THE DIASPORA PROPOSAL

November 10,2009

I. PROJECT IDENTIFICATION AND OVERVIEW

Project Name:

Applicant Name:

Project Address:

Ward and Alderman:

Community Area:

Redevelopment Project Area:

Requested Action:

Proposed Project:

Appraised Market Value:

Sale Price:

..Acquisition Assistance:

TIF Assistance:

II. PROPERTY DESCRIPTION

Cuisine of the Diaspora (the "Project")

Urban Juncture, Inc. (the "Applicant").

300-314 East 51st Street, and 320 East 51st Street,5044­5048 S. Calumet

3rd Ward, Ald. Dowell

Grand Boulevard

47th/King Drive TIP

TIP assistance and negotiated sale of unimproved land.

This transit-oriented development will establish a culinaryincubator as a platform for community revitalization. Itwill create four restaurants and one fresh produce store in a100-year-old retail building adjacent to the 51st Street CTAGreen Line. The development also includes office space tosupport the culinary venues and 16,000 square feet ofpatron parking.

$76,000 for one City-owned parcel that is required toextend the parking area, or $8.00 per square foot.

$10,000

$66,000

$3,000,000

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Address:

Location:

Tax Parcel Numbers:

Land Area:

Current Use:

Current Zoning:

Proposed Zoning:

Environmental Condition:

Inventory Profile:

III. BACKGROUND

300-314 East 51st Street, 320 East 51st Street and 5044­5048 S. Calumet Avenue.

The north side of 51st Street between Prairie Avenue andCalumet Avenue

City owned property to be conveyed to the developer: 20­10-122-017, 20-10-122-018

9,538 square feet

The 300-314 East 51st Street property is the site of a vacantbuilding owned by the Developer. The adjacentDeveloper-owned (320 East 51st Street) and City-ownedpropertie s (5044-5048 S. Calumet Avenue ) are currentlyunimproved.

RT-4

B3-3

The land will be sold as-is with no warranties orrepresentations as to its environmental condition, and it willbe the responsibility of the Applicants to complete anyremediation that may be required by the City or the IllinoisEPA. The redevelopment agreement with the selectedrespondent will include release and indemnification languageprotecting the City from liability.

The city parcels (20-10-122-017, 018) were acquiredthrough demo lien in 1994

The Project is intended to be the first phase of a broader initiative targeted at addressing two keyissues in the Bronzeville community: the lack of quality food and the scarcity of jobs. Inaddition , the Project will help to address community health issues , provide forums for positiveinteraction, and significantly extend the sales and property tax bases.

Bronzeville residents' lack of access to quality food is well documented. For example, a 2006study identified three Chicago areas - termed "Food Deserts" - in which resident s had far betteraccess to unhealthy fast food than to grocery stores and healthi er restaurant options andquantified the resulting negative impact on resident health. The project site falls within one ofthose deserts.

The scarcity of employment opportunities is a second, long-standing, serious problem in theBronzeville community. The lack of jobs puts at risk neighborhood revitalization effort s such asthe Chicago Housing Authority's Plan for Transformat ion, which requires residents to be on

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track for employment. In addition, the lack of attractive commercial infrastructure in thecommunity contributes to a lack of positive community interaction and low levels of socialcapital.

The "Cuisine of the Diaspora" is a unique concept that will utilize a celebration of the cuisinesand cultures of peoples of African descent to create important business and communitydevelopment platforms in Bronzeville and an attractive dining destination for Chicagoland. Fourdistinctive, locally-owned and operated restaurants will be created in the heart of the historicBronzeville community. Each of these venues will highlight a different aspect of black cuisine,one of the world's richest and most diverse cuisines. In addition, the development will include afresh produce market designed to provide high quality produce and improved health to localresidents. The venues will bring the community together and introduce residents of othercommunities to some of the most positive aspects of black culture and community.

The Cuisine of the Diaspora venues will share a turn-of-the-Zflth-century building locatedimmediately adjacent to the CTA Green Line at 51st Street. This area was once a burgeoningfood and retail district, but has suffered from blight and disinvestment for decades.Rehabilitation of the facility will create high-quality food-service space for the culinary venuesas well as office space for a shared services group that will provide finance, marketing, andhuman resource support for all of the venues. Rehabilitation of this building will also introduce"green" technologies to the community and showcase local contractors and design professionals.

IV. PROPOSED DEVELOPMENT TEAM

Development Entity: Urban Juncture, Inc., a Bronzeville-based corporation with Bernard Loydas its sole owner, is the Developer.

Bernard Loyd is a long-time resident, civic leader, and one of the pioneering developers of theBronzeville community. He is a former partner of the management consulting firm of McKinsey& Company where he co-founded the firm's Agriculture and Food Chains initiative and helpedclients around the world create businesses, develop strategies for growth, and improveoperational performance. He was also the leader of a McKinsey effort that grew its worldwidecorps of black consultants from 20 to 125 within ten years.

Urban Juncture is partnering with five teams of restaurateurs, chefs, and other cuisine andculture-related experts to develop five culinary venues. This aggregate Development Teamincorporates more than 120 years of food service industry experience, over 30 successfulrestaurant start-ups, two James Beard Award nominations, and one participant in the "Iron ChefAmerica" competition.

The Development Team has received extensive input into the design of the project through aseries of community meetings and benefits from the ongoing guidance of its Community andCulinary Advisory committees. The team has received formal letters of support from AldermanDowell, from the federal and state elected officials representing this community, includingCongressman Davis and State Senator Hunter, and from a cross section of community residentsand leaders.

The Developer has engaged Johnson & Lee Architects IPlanners as the architect for therehabilitation of the core and shell of the facility and Warren Architects Ltd., a specialist designfirm serving the food service industry, as the interior designer of the culinary venues.

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V. PROPOSED PROJECT

Project Overview: The project incorporates full rehabilitation of a distinctive, white terra cotta­clad retail building (which will house the culinary venues) and development of an adjacentparking area for patrons. Cuisine of the Diaspora consists of five culinary venues along withsupporting professional and utility spaces housed in a 17,000 sq. ft. IOu-year-old building, aswell as adjacent parking. The venues include Cecelia's Southern Breakfast, which will offertraditional southern and southern- inspired breakfast and light lunch meals in the warmth of ahome atmosphere with southern hospitality service; Majanis l O, a vegan restaurant celebratingthe journey of "green" cuisine from Africa to the Americas; Bronzeville Fresh Produce,supplying the delicious produce utilized in the modem black kitchen; The Jerk Shack, providingJamaica's most famous culinary invention; and, Bronzeville Smokehouse & Grill, which willcelebrate the cuisine and culture of the Bronzeville of the 1920s and 30s .

Each of these venues will be owned and operated by a small team of professionals that bring afull culinary and business skill set to the enterprise. In all cases, this includes a proprietor whobrings culinary expertise and serves as the managing partner of the facility and Urban Juncture,which will provide oversight of financial matters and community outreach activities. In severalcases, additional partners will bring key skills to the team. For example, Richard Mott , thefounder and owner of North Pond (a three-star restaurant in Lincoln Park) and the founder,owner, and operator of a South Side-based catering company and chain of institutional coffeeshops is a third partner of Cecelia's.

The produce store and each of the restaurants will present unique "faces" to their patrons, with a" look and feel" and facade tailored to the concept, concept-specific dining room and patronrestroom facilitie s, and dedicated kitchen/cook line facilities. At the same time, all of the venueswill share staff restroom facil ities, a bicycle parking and refuse recycling area, and, mostimportant, a complete suite of professional support services, including accounting andbookkeeping, marketing and public relations, human resources, and information technology.

These shared services, which will be housed on the second floor of the Cuisine of the Diasporafacility , are critical to the business success of food service establishments but are not central tothe mindset or skill set of most classically-trained chefs . Consequently, failure in managing"peripheral" activities (such as marketing a venue and accounting for and paying taxes) is aprimary cause of the failure of restaurants. Consolidation of these support activities alsofacilitates the attraction of first-class professionals and allows the individual restaurants tobenefit from the economies of scale of the overall concept.

The building is located in a high-intensity transit area, directly adjacent to (just west of) the 51stStreet CTA Green Line, on the busy 51st Street transit corridor, and within a quarter mile ofseveral high-throughput arteries, including Martin Luther King Jr. Drive, Indiana Avenue,Michigan Avenue, and State Street. These arteries provide excellent public transit and privatevehicular access to the Cuisine of the Diaspora venues. The vehicular access will becomplemented by a 16,000 sq. ft. parking area located directly adjacent to (and just east of) the51st Street Green Line and which will also contain extensive opportunities for bicycle parking.

A site plan, "as-is" photograph, and "to-be" renderings are provided as exhibits to this report .

Environmental Features: The project has been registered with the United States Green

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Building Council with a target of LEED "Gold" cert ification and has been submitted to theCity 's Green Permit program. Specific environmental features include reuse of an existingbuilding, proximity to public transit, enhanced envelope, partial green roof, daylighting, sharedrecycling and bicycle parking area, and use of solar thermal technology for domestic hot water.

Venue Profile : The following table provides an overview of the culinary venues that will bedeveloped by the proposed project.

Profiles of Culinary Venues

uHnar venue Sq.Ft. eating Positionin ui ine

Cecelia 's Southern 2400 75 Affordable* Southern & southern-Breakfast inspired

Majani310 1200 35 Affordable Pan Africanvegan/vegetarian

Bronzeville Fresh 1200 n/a Affordable Fresh produce, herbs, andProduce nuts, particularly as used

in the black kitchen

Jerk Shack 830 n/a (take- Affordable Jamaican/jerkout only)

Bronzeville 7400 250 Upscale** Barbecued & grilled foodsSmokehouse & Grill

*Typically $5-$15 for full meal, without beverage.**Typically $ J0-$30 for full meal, without beverage.

The number and diversity of the Cuisine of the Diaspora culinary venues mitigates the riskinherent in the food service category, while providing opportunities to exploit cross -venuesynergies in marketing, procurement, and operations. For example, in addition to venue-specificoutreach efforts, the venue s will be marketed jointly under the " Bronzeville Cookin' " banner.This name celebrates the facility 's unique culinary nature as well as the Bronzevillecommunity's catalytic role within Black America.

Managing Risks & Securing Benefit'): Full service restaurants hold a number of distinctionswithin the universe of retail offerings. Restaurants are tremendously important: neighborhoodswithout decent "sit-down" restaurants are hardly neighborhoods at all. Restaurants are the mostlabor intensive of major retail outlet s; and, the Project will create over 130 full time equivalents(FTEs) of permanent jobs. Eating out is important to most of us, and restaurant s have becomeuniquely powerful attractors of consumers. "Foodies" will venture into most neighborhoods ifthe food is good and access is secure, and neighborhoods known for good food can act asregional magnets for visitors and investments. Restaurants are capital intensive, and,

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consequently, highly underrepresented in most poor urban neighborhoods. And, restaurants areoften viewed as being one of the more risky investment vehicles available.

The Development Team has devised an approach to mitigating the inherent risks of the foodservice category, while securing many of the benefits for Bronzeville residents. Riskmanagement efforts include diversifying concepts, requiring venue partners to make significantcapital investments , minimizing costs by utilizing a shared support infrastructure, and utilizing ateam approach to venue management. Benefits will accrue to Bronzeville for several reasons:the location of the Project at the heart of the community; the intensive involvement ofcommunity residents in Project development, operation, and ownership; and, the Project' sexpected role as a visitor destination, which will attract additional spending to the community.

VI. FINANCIAL STRUCTUREThe Project site is located in the 47th/King Drive TIP District and, once complete, will providefive unique culinary venues to the Bronzeville community, as well as supporting professionalspace and 16,000 square feet of parking. The Project will receive up to $3,000,000 in TIPassistance plus a land write-down of $66,000, for a total of $3,066,000 or 35.6% of project cost.

The funds will be paid out in the following manner : a lump sum payment of $1,000,000 upon thecompletion of Phase 1 and a Note in the amount of $1,000,000 which will be issued upon Phase1 completion. When Phase 2 is completed a lump sum payment in the amount of $500,000 willbe made and another note will be issued in the amount of $500,000.

The Developer must maintain 75 full time equivalent jobs and 75% of the space must be leasedto a restaurant or other food related business in order to continue receiving payments for the CityNotes.

The relatively high level of TlF assistance for the Project is justified by the need to underwriteinvestments in culinary facilities and provide secure access to patrons (via an extensive, adjacentparking area) in a "transitional" neighborhood. But for the TlF investment, the DevelopmentTeam would not be able to achieve a rational debt level and cash flow break-even point andwould be unable to access the additional private financing required for the Project.

The Developer is working with several financial institutions and has secured the following termsheets:

• Community Reinvestment Fund has provided a Term Sheet to provide preferred equity tosupport the Project.

• J.P. Morgan Chase has provided a Term Sheet that indicates its intent to provideconstruction financing for the Project.

• SomerCor504 has provided a Term Sheet to provide SBA 504 funds to the Project.

• MB Financial has provided a Term Sheet indicating its intent to monetize a portion of theProject' s TIF commitment.

• Chicago Community Loan Fund and Chicago Community Venture s have provided TermSheets to provide loans to the Project venues for Working Capital and Fixture s, Furn iture,and Equipment (FF&E).

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Project venues will be assessed a rental fee of $21 per square foot for their retail space and $12and $20 per square foot, respectively, for their allocation of shared utility and professional space.In addition, the Developer will build out the venue spaces and provide approximately 60% of thecapit al required for venue FF&E (which will cover the portions of the FF&E that are attached tothe building, such as the "black iron") totaling approximately $1,650,000, in return for an tenantreimbursement fee of approximately 6% annually. These terms - or any terms at all - aregenerally unavailable from private financial institutions for investments in culinary enterprises inthis community.

Project venues will receive the remainder of their FF&E capital requirements (as well as requiredworking capital) in loans from Chicago Community Loan Fund and Chicago CommunityVentures.

The following table identifies the sources and uses of funds.

Sources and Uses of Funds

SourcesTIP AssistanceCity Land Write DownDevelopment Team EquityComm. Re-investment Pref. EquitySomerCorp 504 LoanWorking Capital & FF&E Loan sTotal Sources

UsesAcquisition costHard costTenant ImprovementsArchitectural & EngineeringProfessional and PermitsLegal & ClosingFF&EWorking CapitalContingencyLoan Fees & InterestTotal uses

VII. PUBLIC BENEFITSThe Project will provide the following public benefits.

Amount$3,000,000

$66,000$1,024,648

$800,000$2,600,000$1,125,000$8,615,648

$1,086,000$2,856 ,325

$803,000$150,000$100 ,000

$60,000$1,320,000

$928,989$443,449$867 ,886

$8,615,648

% of total34.8%

0.8%11 .9%9.3%

30.2%13.1%

100.0%

12.6%33.2%9.3%1.7%1.2%0.7%

15.3%10.8%5.1%

10.1%100.0%

Creation of Retail Choices in an Under-Served Neighborhood: The Project will create fiveculinary venues: a fresh produce market, three sit-down restaurants and a carry-out restaurant.Each of the venues will celebrate a unique element of Black Cuisine, one of the world's richestand most diverse cuisines . The venues will be tailored to meet the needs of local residentsdesiring high quality, price-accessible dining options; of "foodies," culinary tourists seeking aunique culinary and cultural experience; and of nearby institutions, such as University ofChicago Hospitals, Illinois Institute of Technology, and Chicago Police Departmentheadquarters, whose staff have few good dining and produce options. In addit ion, the Cuisine of

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the Diaspora team will partner with local schools, health care organizations, and businesses toprovide healthy eating counseling and facilitate access to good food .

Job Creation: Over 130 Fl'Es of permanent retail, management, and professional support jobsare expected to be created as a result of the Project. Rehabilitation of the Cuisine of the DiasporaFacility and construction of the adjacent parking areas will also create approximately 9 personyears of construction jobs.

Improved Health: Good food is essent ial to good health . Bronzeville currently has anabundance of fast food outlets offering unhealthy, grease-rich , fried foods. It has no producestore and only a hand ful of full-service restaurants . The Project will greatl y expand thecommunity' s healthy food options.

Creation of Social Capital: Restaurants are important community gathering points whereinformal interaction helps to create the social "capital", the "glue" that is the foundation of allvibrant neighb orhoods and that help communities make it through difficult times.

Re-occupancy of Vacant Building and Reduction of Blight: This building was vacated undersubstantial community pressure to get rid of a liquor store. The requested TIF support allows arational debt level and cash flow break-even point, thus enabl ing this rede velopment.

Increased Sales Taxes: The retail tenants are projected to generate $7.3MM in annual sales and$670,000 in incremental sales taxes after 4 years.

Increased Property Taxes: The property value of the Cuisine of the Diaspora facil ity isexpected to increase by no less than $4,000,000 over 3 years, generating a proportional increasein property taxes. In addition, the Project is expected to contribute to increases in the propertyvalues of neighboring commercial and residential properties.

Broad Exposure to Environmental Features: The project has been registered with the UnitedStates Green Building Council with a target of LEED "Gold" certification and has beensubmitted to the City' s Green Permit program. Specific environmental features include reuse ofan existing building, proximity to public transit, enhanced envelope, partial green roof,daylighting, shared recycling and bicycle parking area, and use of solar thermal technology fordomestic hot water.

The high visibility and high accessibility of the Project create a unique opportunity tocommunicate the importance of sustainability to a wide range of community residents andvisitors. Project venues are committed to developing programming and marketing materials thattake advantage of this opportunity.

Catalyst for Additional Private Investment: Thi s will be the first significant retaildevelopment on this and neighboring blocks in over two decades and will serve to continue theredevelopment sparked on the adjoining State Street and King Drive corridors in Bronzeville. Itwill transform a critical section of the 5 1st Street retail corridor. Moreover, the Cuisine of theDiaspora concept can be extended beyond the current properti es and can serve as a much neededanchor for further retail development on the 51st Street Corridor,

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Affirmative Action: The current composition of the Development Team is evidence of theDeveloper' s commitment to including minorit y and women-owned enterpri ses and communityresidents. The Developer will comply with the requirements of Chicago's affirmative actionordinance, which requires contract participation of 24% by minority-owned business enterprises(MBEs) and 4% by woman-owned business enterprises (WBEs). The Developer providednotification of the proposed project , by certified mail, to seven associations of minority andwoman contractors. A copy of the certified letters and the post office receipts are presented asexhibits to this report.

VIII. COMMUNITY SUPPORT

Alderman Pat Dowell endorses the Project and has provided a letter of support . The otherelected federal and state leaders representing the neighborhood also endorse the project. Inaddition, a broad cross section of community residents and leaders have provided formal lettersof support. Letters of support are provided in the appendix.

A bottom-up, Bronzeville-based process created the Cuisine of the Diaspora concept, and thecommunity has articulated strong support for the Project. The Developer is a Bronzeville-basedbusiness that is deeply rooted in the community and has taken extensive measures to recruitoutstanding local professionals and businesses to the Development Team, while engaging expertsfrom outside the community to fill key gaps. As a result, over 75% (22 of 29) of the core teammembers have a strong Bronzeville affiliation.

The Development Team has conducted extensive community outreach and secured enthusiasticsupport. The outreach effort includes establishment of advisory committees at the Project level(Cuisine of the Diaspora Community Advisory Committee and Culinary Advisory Committee)and at the venue level (e.g. , Jerk Shack Advisory Committee, Majani310 Advisory Committee).Each of these committees has met two or more times to provide feedback. In addition, theDeveloper has organized four neighborhood focus groups and has obtained input and securedwritten survey feedback from approximately 50 stakeholders. Suggestions from these and othergroups have substantially shaped the development of the Project. A statistical summary of thefeedback is provided in the table below.

The stakeholder ratings - a score of 9.5 (out of 10) on "Community Impact" and the 9.1 overallrating - are one indication of the great community enthusiasm for the Project.

The Development Team has also travelled extensively to review potential concepts and seekinput and support from a variety of stakeholders and culinary traditions. This includes journeysto Kansas City & Memphi s (black barbecue/smoked food traditions), Atlanta (southern), NewOrleans (Cajun/Creole), New York City (various), Charleston (Gullah, southern), Michigan andSouth East Illinois (local African-American farming traditions), Washington D.C. (variou s),Jamaica (jerk and other Caribbean cuisines), and other Chicago communities, diningdestinations, and ethnic districts.

IX. CONFORMANCE WITH REDEVELOPMENT AREA PLAN

The Project is located in the 47thlKing Drive Tax Increment Financing Redevelopment ProjectArea. The Project will satisfy the following 8 of the 9 goals of the Area ' s Redevelopment Plan:

• "Create a world-cla ss cultural district that showcases African-American culture,entertainment, retail goods and food."

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• "Cultivate a successful and vibrant community in the Redevelopment Project Area,reminiscent of the area's cultural heyday in the 1920s ad 1930s."

• "Strengthen the economic well-being of the Redevelopment Project Area and the City byenhancing the properties and local tax base."

• "Encourage the participation of minorities and women in the redevelopment process ofthe Redevelopment Project Area."

• "Create an environment within the Redevelopment Project Area that will contribute to thehealth, safety and general welfare of the City ."

• "Renovate the viable structures that do remain and create new residential opportunities inthe Redevelopment Project Area."

• "Create construction job opportunities in the Redevelopment Project Area."

• "Reduce or eliminate those conditions that qualify the Redevelopment Project Area as aConservation Area."

The Project also is consistent with the implementation strategy and land use map of theRedevelopment Plan. The implementation strategy for achieving the Plan's goals envisions theneed to provide TIF financial assistance for property assembly, the rehabilitation of existingstructures, and professional services. The Project also conforms to the Plan's land use map,which calls for a mixed use development at the site.

X. CONDITIONS OF SALE

If the proposed resolution is approved by the CDC, DCD will release a public notice announcingthe proposed sale and seeking alternative development proposals. The public notice will bepublished in one of Chicago's metropolitan newspapers at least once for each of threeconsecutive weeks. If no responsive alternative proposals are received within 30 days of thepublishing of the first notice, the department will accept a good faith deposit from the proposeddeveloper, and a redevelopment agreement will be negotiated. The redevelopment agreementwill incorporate the parameters of the proposed project as described in this staff report.

It is DCD policy that no business will be conducted with a development entity whose anyprincipal has outstanding municipal debts (such as unpaid parking tickets, unpaid water bills,unpaid business licenses, and others), is in arrears of child support payments, or who is a debtorin bankruptcy, a defendant in a legal action for deficient performance, a respondent in anadministrative action for deficient performance, or a defendant in any criminal action.

Closing of the sale of the property will not occur before the City Council has approved theredevelopment agreement, the developer has obtained all necessary City approvals includingzoning and building permits, and the developer has presented proof of financing. Theredevelopment agreement will include a development timetable.

XI. RECOMl\'IENDATION

The Department of Planning and Development has thoroughly reviewed the proposed project,the qualifications of the development team, the financial structure of the project, its need forpublic assistance, its public benefits, and the project's conformance with the redevelopment area

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plan, and DCD recommends that the CDC recommend to the City Council the designation ofUrban Juncture, Inc. as Developer for the development of the Cuisine of the Diaspora.

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EXHIBITS

Redevelopment Area MapNeighborhood Map or Aerial

Surveyor PlatSite Plan

RenderingsSample MIWBE Letter

Copies of MlWBE Certified Letter ReceiptsTerm Sheets from Lenders

Alderman's Letter of SupportCommunity Letters of Support

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Page 18: tlMISSION REGARDING CUISINE OFTHEDIASPORA PROPOSAL …€¦ · Inventory Profile: III. BACKGROUND 300-314East 51st Street, 320 East 51st Street and 5044 5048 S. Calumet Avenue. The

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African American Contractors Assoctation3901 5. State StreetChica qo. IL 60653

Dear Community Partner:

Urban Juncture is pleased to announce that it is soltcinng bids for therehabil itat ion of a 17,000 square foot, two-story, commercial building in theBronzeville community along with the development of an adjacent 16,000 s.t.parking area . .Wnority Business Enterprises and Women Business Enterprisesare encouraged to bid. All contractors must be licensed, bonded, and insured.

Ihe project will create several culinary spaces to serve the residents of andvisitors to Bronzeville as well as supporting utility and professional space. Itwill have a green roof and several other "green" features and will target LEED"Gold" certification.

Construction is currently scheduled to commence in Spring 2010 with aDecember 2010 completion.

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Lee Fantroy, LeLan Enterprises',. - , : )' .-

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Nov 03 2009 2:34PM

C ITYCOU'JC::lI.

Crrv HALL. "'OOM 2001111 NOIIITH lA9ALLE STII.IT

CHIC,",I)¢. ILLINOIS eosoaTELS""iON£ 312-74"-87304

November 3. 2009

HP LASERJET FAX

PAT DOWELLALDEAMAN-3AO WARD

3'10 W ...O 9.RVICE CEN,.,,,50"'6 SOI,lTH STAT! STREETCHICAO;O. ILLIIllO IIi &0809TEL.""'¢N; 773-373.;;701

FAX ; 7"3-373-8862I!·MA 'L., pal,dO"." .Ollye>'''ll'cagc ,o'll

p.2

COMMITTEE MI!MBERSHIP.

COMMITTEES. fUJLee ANO ETt-iICS

HEALTH

HOUSINO AND ~EAL ~9TATE

TFlANSF'OAT.IITlON ANO '"UBLIC WAY

Chris RagusoCommissioner Department of Community Development121 N, LaSalle Street, Room 1000Chicago. Illinois 60602

Be: Urban Juncture

Dear Ms. Raguso:

I am writing to express my support for Urban Juncture's plan to open the Cuisine of the Diaspore on 5) 'I

Street near the Green Line. The new culinary venues that celebrate the unique aspects of African­American cuisine will undoubtedly be a welcome addition to Bronzeville and the rest of the 3M Ward asit will benefit from them in many ways .

First, this initiative will help stimulate the local economy by potentially providing close to 140 jobs anda source of revenue that will likely stay in the neighborhood. Second, having healthier eating optionswill certainly be welcomed. by the residents and visitors alike. Consequently, it will also provide a placewhere neighbors and friends can meet and develop social networks as ell as help educate patrons aboutAfrican-American culture. Finally, the fact that Cuisine if the Diaspora will be an ceo-friendly projectand will be located near mass transit means that it ,vill serve as an example to other projects that may beinterested in sustainable development and will provide awareness about environmental initiatives.

I know that Cuisine of the Dlaspora will help revitalize a commercial district that is in need ofresponsible development. As the Alderman oftbe 3rd Ward. I welcome this development to tbecommunity. Please do not hesitate to contact my office at (773) 373.9273 with any questions orconcerns .

, S~erelY,t2uw

1.~u ~Alderman, 3rd Ward

cc : Judy Jackson -Minor

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STATE OF ILLINOIS))SS

COUNTY OF COOK)

CERTIFICATE

I, Robert Wolf, the duly authorized and qualified Assistant Secretary of the

Community Development Commission of the City of Chicago, and the custodian of the

records thereof, do hereby certify that I have compared the attached copy of a Resolution

adopted by the Community Development Commission of the City of Chicago at a Regular

Meeting held on the 10th Day of November 2009 with the original resolution adopted at said

meeting and noted in the minutes of the Commission, and do hereby certify that said copy is a

true, correct and complete transcript of said Resolution.

Dated this 10th Day of November 2009

ASSISTANT SECRETARYRobert Wolf

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COMMUNITY DEVELOPl\IENT COl\L\nSSIONOF THE

CITY OF CHICAGO

RESOLUTION Ncl'f1. CDC~

AUTHORIZATION TO ENTER INTO A NEGOTIATED SALE \VITH URBAt~

JUNCTURE, INC. FOR DISPOSITION OF THE PROPERTY LOCATED AT 5044·5048SOUTH CALUl\lET AVENUE WITHIN THE 47TH

/ KING DRIVE TAX INCREl\lENTFINANCING REDEVELOPl\IENT PROJECT AREA

ANDAUTHORIZATION TO NEGOTIATE A REDEVELOPl\lENT AGREElVlENT \VITH

URBAN JUNCTURE, INC.AND

RECOJ\tIlVlENDATION TO THE CITY COUNCIL OF THE CITY OF CHICAGOFOR THE DESIGNATION OF URBAN JUNCTURE, INC.

AS DEVELOPER

\VHEREAS, the Community Development Commission (the "Commission") of the City ofChicago (the "City") has heretofore been appointed by the Mayor of the City with the approvalof its City Council (the City Council referred to herein collectively with the Mayor as the"Corporate Authorities If) as codified in Section 2-124 of the City's Municipal Code; and

WHEREAS, the Commission is empowered by the Corporate Authorities to exercise certainpowers enumerated in Section 5/11-74.4-4(k) of the Illinois Tax Increment AllocationRedevelopment Act, as amended (65 ILCS 5/11-74.4-1 et seq.), (as amended from time to time,the "Act"); and

WHEREAS, the City Council, upon the Commission's recommendation pursuant to Resolution02-CDC-03 and pursuant to the Act, enacted three ordinances on March 27, 2002 pursuant towhich the City approved and adopted a certain redevelopment plan and project (the "Plan") forthe 47th/King Drive Tax Increment Redevelopment Project Area (the "Area"), designated theArea as a redevelopment project area and adopted tax increment allocation financing for theArea. The street boundaries of the Area are described on Exhibit A hereto; and

\VHEREAS, the City owns the property located at 5044 - 5048 South Calumet Avenue, havingthe Property Identification Number(s) (PINs 20-10-122-017 and 20-10-122-018 (the "Property")and desires that it be redeveloped as a parking lot; and

\VHEREAS, the Urban Juncture, Inc. owns property located at 300-3 14 East 51 'it Street and 320East 51sr Street, having the Property Identification number (20-10-122-019 site of the proposedparking lot and 20-10-122-021 site of the building) and desires that a portion of the property beredeveloped for a two (2) story commercial building and a portion of the property as a parkinglot; and

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WHEREAS, staff of the Department of Community Development of the City of Chicago (the"Department") have entered into discussions with Urban Juncture, Inc. (the "Developers")concerning the sale of the Property for the development of a parking lot; and

WHEREAS, the Developer has submitted a project budget and evidence of having the financialcapacity to complete the project, and the staff of the Department have reviewed these and foundthem to be satisfactory; and

WHEREAS, the Developer has proposed to pay S10,000.00 as consideration for the purchase ofthe Property, S66.000 less than the appraised fair market value of 576.000; and

WHEREAS, staff of the Department have determined that the Developer's proposal conforms tothe Plan: and

WHEREAS , pursuant to Section 5/l1-74.4-4(c) of the Act , the City may not enter into anyagreement relating to the development of City-owned property within the Area without firstmaking public disclosure of the terms of such agreement and all bids and proposals relatedthereto and providing reasonable opportunity for any person to submit an alternative proposal orbid; and

WHEREAS, DCD requests the authority of the Commission to make the required disclosure bypublishing a public notice substantially in the form set forth as Exhibit B hereto (the "Notice")be published at least once for three consecutive weeks in at least one Chicago metropolitannewspaper, inviting alternative proposals from other developers who will have a period of notless than thirty (30) days after the first publication of the public notice in which to submit aresponsive proposal; and

WHEREAS, DCD requests that the Commission recommend to City Council that the Developerbe designated as the developer for the Project and that DCD be authorized to negotiate, executeand deliver a redevelopment agreement with the Developer for the Project, if no responsivealternative proposals are received by DCD within thirty (30) days after publication of the firstNotice or, if alternative proposals are received and DCD in its sole discretion determines that theDeveloper's Project is the best proposal; now, therefore,

BE IT RESOLVED BY THE COl\Il\IUNITY DEVELOPl\IENT COMI\nSSION OF THECITY OF CHICAGO:

Section I.

Section 2.

Section 3.

The above recitals are incorporated herein and made a part hereof.

The Commission hereby authorizes DCD to publish the Notice.

The Commission hereb y recommends to City Council that the Developerbe designated as the devel oper for the Project and that DCD be authorizedto negotiate, execute and deliver on the City's behalf a redevelopmentagreement with the Developer for the Project, so long as no responsivealternative proposals arc received by DCD within the time recited aboveor, if alternative proposals are received and DCD in its sole discretiondetermines that the Developer's Project is the best proposal.

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..

Section 4.

Section 5.

Section 6.

Section 7.

Section 8.

Section 9.

Section 10.

DCD is hereby .authorized to advertise the City's intent to negotiate thesale and redevelopment of the Disposition Parcels and to requestresponsive alternative proposals.

Said proposals must be submitted in writing to Christine Raguso, ActingCommissioner, Department of Community Development, Attn: JamesWilson, City Hall- Room 1003, 121 North LaSalle Street, Chicago, Illinois60602 within 30 days of the date of the first publication of the Notice andshall contain names of parties, offer prices for the Disposition Parcels,evidence of financial qualifications, and a timetable for redevelopmentbefore said proposal will be considered.

In the event that no responsive proposals are received at the conclusion ofthe advertising period, or if alternative proposals are received and DCD inits sole discretion determines that the Developer's Project is the bestproposal, then the sale of the land described in Exhibit A shall berecommended to the City Council without further Commission action.

If any provision of this resolution shall be held to be invalid orunenforceable for any reason, the invalidity or unenforceability of suchprovision shall not affect any of the remaining provisions of thisresolution.

All resolutions, motions or orders in conflict with this resolution arehereby repealed to the extent of such conflict.

This resolution shall be effective as of the date of its adoption.

A certified copy of this resolution shall be transmitted to the City Council.

ADOPTED:

Attachments: Exhibit A, PINs and Street Addresses of Disposition Parcels and TIF AreaStreet Boundary Description

Exhibit B, Form of Notice Requesting Alternative Proposal

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a.

EXHIBIT A

Street Addresses and P.LN.s of Disposition ParcelsAnd

Street Boundaries of the47thJKing Drive Tax Increment Financing

Redevelopment Project Area

Address P.I.N.

5044 S. Calumet 20-10-122-017

5048 S. Calumet 20-10-122-018

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EXHIBIT B

PUBLIC NOTICE is hereby given by the Community Development Commission of the City ofChicago (the "City") pursuant to section 5/11-74.4-4 (c) of the Illinois Tax Increment AllocationRedevelopment Act, as amended (65 ILCS 5111-74.4-1 et seq.) (the "Act"), that the City'sDepartment of Community Development ("DCD") intends to negotiate a redevelopmentagreement with Urban Juncture, Inc.. (the "Developer") pursuant to which the City intends toprovide financial assistance to the Developer in the amount of $3,000,000 or 35% of the totalproject budget from 47th/King Drive tax increment financing bond proceeds and/or incrementaltax revenues pursuant to the Act for eligible costs associated with Cuisine of the Diasporadevelopment project (the "Project ") to be located at 300-314 and 320 E. 51SI Street and 5044 ­5048 S. Calumet Avenue (the "Property"), located in the 4ih

/ King Drive TIF RedevelopmentProject Area (the "Area"). The Project will consist of the rehabilitation of a two (2) story, 16,000square feet commercial building with parking. The City also intends to negotiate aredevelopment agreement with the Developer for the sale of 17-34-421-096.17-34-421-099,17­34-421-100, 17-34-421-093 individual tax parcels. described in Schedule 1 attached hereto (the"Disposition Parcels"), for $10,000. The Property and Disposition Parcels are located within theArea established pursuant to the Act, and the Project is in compliance with the 47thIKing DriveTIF Redevelopment Plan. The Area is generally bounded as follows:

THE CITY HEREBY INVITES ALTERNATIVE PROPOSALS FOR THEREDEVELOPl\-IENT OF THE DISPOSITION PARCELS FOR CONSIDERATION BY

THE CITY.

The documents listed below related to the Area, the Project and the Disposition Parcels areavailable for public inspection before December II, 2009 at the offices of DCD. Room 1003.121 N. Laxalle, Chicago. Illinois between the hours of 9:00 a.m. and 4:00 p.m. Monday throughFriday:

(i) "47th / King Drive Tax Increment Financing Redevelopment Project and Plan," whichconstitutes the City 's redevelopment plan for the Area;

(ii) a terms sheet showing all proposed material terms of the redevelopment agreementsas of the date hereof. including but not limited to an estimated Project budget setting forththe amount of financial assistance the City intends to provide to the Developer for theProject; and

(iii) the terms of all bids and proposals received, if any, by the City related to the Projectand the redevelopment agreements

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(I S

Please contact James Wilson at DCD at (312 ) 744-2379 to review these materials and forinformation regarding the form required, if any, for proposals submitted to the City. Proposalsshall include the general plan for the redevelopment of the Disposition Parcels, the names of theparty or parties making the proposal, the price offered, evidence of financial qualifications andcapacity to complete said redevelopment, and the timetable for implementation. The Cityreserves the right to reject any and all proposals. Proposals will be received by the City atDCD's offices, Room 1000, City Hall, 121 N. LaSalle, Chicago, Illinois 60602, until December11 ,2009 at 5:00 p.m. , at which time all alternative proposals will be opened and reviewed.

Mary Richardson-Lowry, ChairmanCOJ.\tTh-IUNITY DEVELOPl\IENT COJ.\tlJ.\tllSSION