Business owners slam Schulter TIF plan

BY JENNIFER SLOSAR
December 06, 2007 | 12:42 PM

A highly charged meeting of Northside residents angry about the proposed use of eminent domain for a redevelopment project in Lincoln Square culminated in an impromptu march on the office of 47th Ward Alderman Eugene Schulter last night.

Residents outside Ald. Gene Schulter's office. Photo by Julie Hobert

At least 200 residents packed Chicago Soccer on the 4800 block of Western Avenue to hear merchants in the newly formed Save Lincoln Square Association denounce the city's plans to force them to sell to make way for private developers. At the suggestion of several members of the audience approximately 100 people left the meeting as it wrapped up at 8:30 p.m. and headed nine blocks south to Schulter's headquarters on Lincoln Avenue.

Most of the crowd stood outside in the frosty air for 45 minutes chanting, "Stop Eminent Domain," "Save Lincoln Square, " "We All Vote," and "We're TIF'd Off." About 20 entered the office.

Schulter could not be reached for comment.

At issue is the future of stretch of small businesses along the east side of the 4800 block of North Western Avenue, from Lawrence to Ainslie.

In late July, the businesses were notified by Schulter that the city intended to acquire the properties by eminent domain for use by private developers, yet to be determined. Preliminary plans for the redevelopment of the block call for private developers to mix residential and commercial use, with buildings to be no taller than six stories.

The redevelopment of this block is just one phase of the Western Avenue North Redevelopment Project, which encompasses 70 blocks and 437 buildings in Lincoln Square and Uptown.

On Nov. 8 the city's Committee on Housing and Real Estate approved the acquisition. The city justified the use of eminent domain by saying that the block of businesses generates less than its full potential in tax revenues.

Wednesday night's meeting was spearheaded by Imre Hidvegi, one of the owners of Chicago Soccer, which has occupied the block since 1994. Along with his partner, Edgar Alvarez, Hidvegi built the soccer supply store into a thriving business that generates over $3.5 million annually and serves as an anchor in the community.

Prior to the meeting, Hidvegi summed up what he said is the sentiment of many of his neighbors on the block.

"How can you take property from one private property owner and hand it over to a private developer, just so they can make more money? That's not justice. That's not what America is. That's a land grab."

Schulter has said he included the businesses affected in the planning process leading up to the acquisition ordinance. He has also said his use of eminent domain is intended to protect the neighborhood from developers seeking to buy out small businesses and install big box stores.

The city is empowered to use eminent domain through the Western North TIF. A TIF, or tax increment financing district, is a powerful economic tool that diverts some municipal property tax money to economic development efforts.

At the meeting, the business owners, some of them immigrants, described how their dreams had turned to nightmares.

Tim Le, owner of Decorium Furniture, compared his dealings with the city of Chicago to his treatment by the Communist government that he fled in Saigon in 1985 as a boat person.

Le and his wife, Kim Le, worked as computer consultants for ten years before pouring their savings into the rehabilitation of their store, which Kim manages.

Tim Le said that when they first came to Lincoln Square six years ago, they were welcomed with open arms by the alderman.

"We did a lot to enhance this corner," Le said.

The acquisition plan is already affecting business, said Kim Le, who said she's been enduring sleepless nights since she learned of the eminent domain ordinance. Customers are thinking twice before purchasing furniture, which comes with a 10-year store warranty.

"They're not sure if they know where we'll be in the future," said Le. "Right now, everything is on hold. My employees are worried about their jobs. We're not bringing in any new merchandise. We just don't know what's going to happen."

Mark Beatty, owner of Dark Tower Comics, referred to himself as a typical small business owner. Beatty, who leases the storefront, depends on repeat local traffic from neighborhood residents, such as artists from Ravenswood's Devil's Due comic book company.

"This could very well put me out of business," he said. "If you move too far away from the El and high traffic areas it can hurt a lot."

Nancy Smarinsky tearfully described how she and her husband, David Smarinsky, had operated the Dental Corner at 4857 Western avenue for 25 years.

"Eighty-five percent of our patients are from the 47th ward," she said. "We see the grandparents as well as the grandchildren here."

Many of the business owners complained that the alderman had kept them out of the loop about the city's plans for acquiring their businesses. They also say that he has offered minimal assurances about their future.

Tim Le said he had received very "minimal communication" from the alderman. "Basically, we found out about the acquisition plans and the planning meeting from the soccer store."

Rico Gutstein, a 14-year resident of the ward, had spent the last two days distributing fliers for the meeting.

"I think the sentiment is clear from what I heard," said Gutstein. People do not want to see the soccer store become the first floor of a six-story condo. We do not want to see our neighborhood gentrified and yuppified beyond belief. There's too many condos around here already."

Residents at the meeting said they planned to protest at a scheduled meeting of the full city council on Dec. 12.


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