By, About, & for Real Estate Investors.

Home Article Bank Events Products Contact Us
 

     
 

Planning & Zoning - What They Do

    Real Estate Opportunity
What do you think life would be like without a plan? Perhaps human civilization would falter and there would be no progressive movement for something better. Or some could break out of the mold and succeed. While the intricate details of our own lives are ours to handle, luckily the cities we reside in have thought of those things.

The city of Chicago is one of 50 cities in our beloved United States that has designated a governmental body to help make tomorrow better than yesterday. With their numerous divisions, community partnerships, planning districts, Boards of Commissions, and massive development projects, the Department of Planning and Development (DPD), along

 

 with the Department of Zoning for the City of Chicago, is integral in facilitating the long-term planning, zoning, and economic development for the city. The present day departments stem from plans created in the early 1900s and continue to maximize effectiveness by utilizing local and state programs, neighborhood planning, architectural and historical preservation, small and large business services, and public and private partnerships.

The 1909 publication of the Plan of Chicago by architects Daniel H. Burnham and Edward H. Bennett, initiated the birth of Chicago's city and regional planning. The publication was sponsored by the Commercial Club, which was an association of the most prominent business and professional leaders in Chicago. The plan,

 
  More Articles
Foreclosures
Interest only and adjustable rate mortgages
and the economy are driving foreclosures.
Rehabbing
Buy property, fix property, sell property is
the investors dream.  Learn more about it.
Real Estate Legal Tips
Before starting a business, you should
consider these 10 things first.
Wholesaling
Locking property under contract and selling
the contract is a great business.  Learn more.
Commercial Properties
The next phase of investing is commercial
property.  5 steps to buying commercial.
  Advertisements

Advertise

Here

$100/Mo.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   
 

deemed The Burnham Plan, was the city's first comprehensive plan and called for an extensive system of lakefront parks along Lake Michigan and the 67,000-acre Cook County Forest Preserve system. Burnham's plan also gave attention to the Loop, the area's future highway system, and it also led directly to the creation of the Chicago Plan Commission and to a new department of city government, presently known as the City of Chicago's Department of Planning and Development. A number of planning documents were established after the creation of this department. Those include - The Comprehensive Plan of Chicago (1966); The Lakefront Plan of Chicago (1972); Chicago River Urban Design Corridor, Volume 1, Downtown Corridor (1990); and Volume 2, North Branch Riverwalk (1990). The planning furthered in 1923 by a group of citizens who formed the Chicago Regional Plan Association. Lead by  Burnham, it promoted planning at all levels of government throughout the area and into three counties in southern Wisconsin and three in Northwest Indiana. The year 1956 welcomed another document, Planning the Region of Chicago, which focused on the growth in suburban areas and introduced chapters on sanitation, land use, industry, and water supply.

It is important to note that Cook County maintains its own Department of Planning and Development and Zoning Board of Appeals, whose roles are to assist the public in appealing any rezoning to land use in the unincorporated areas.  According to their website, the Cook County DPD's mission is to “promote community and economic growth in the region by investing in affordable housing, public infrastructure/safety, and the retention and expansion of businesses and jobs in Cook County.” With an incredible 6,266 square mile land size edge over Cook County, Chicago's goals and mission in the Department of Planning and Development are similar. Both depend on and value partnership, and pride themselves on undertaking efforts to both retain and attract businesses, and thus employment, into the community. Both governmental bodies promote growth, preservation and longevity.

 

To this end, the city's Department has established several Divisions that provide specific assistance and perform activities for the public:

*Landmarks Division - assists owners and architects regarding landmark structure issues including permit applications, surveys, and recommendations to City Council of landmark designations.  This division also administers the Façade Rebate Program.

*Development Support Services - helps new and established businesses with residential, commercial and industrial development projects.  This division also offers tax incentive, loan and bond programs.

*Real Estate Division - manages all property held by the city of Chicago and works in conjunction with the departments of Buildings, Law, General Services and Environment, as well as Cook County, to sell city property through different programs.  It is made up of five sections: Acquisition, Disposition, Relocation, Property Management, and the Tax Exemption and Tax Reactivation/Demo Lien programs.

*Regions Division - is comprised of seven Community Development Planning Districts, each with a district coordinator, who study and implement planning and development in coordination with private sector and governmental entities.

*Zoning and Land Use Planning Division - creates long-range land use plans, provides mapping support to the Department of Planning and Development (and other agencies), evaluates planned developments, reviews zoning amendments and management of NeighborSpace (intergovernmental partnership to create neighborhood parks and open space), among other duties.

 

Additionally, there are also Commissions, or agencies, which cover a variety of issues including:

*Chicago Plan Commission (18 members; staffed by the Zoning Division) - makes technical reviews and recommendations regarding land use proposals in Tax Increment Finance (TIF) zones, lakefront preservation, and planned developments.  They vote on any proposal by a public body or agency to purchase, dispose, or change any real property in the city and whether it complies with Chicago's long-term planning objectives and goals.

*Commission on Chicago Land-marks (9 members) - makes recommendations to the City Council that specific buildings, sites or districts be identified as historical Chicago landmarks.

*Community Development Commission (15 members) - reviews and makes recommendations to the City Council concerning the sale of city-owned property in TIF districts, the  establishment of new TIF districts, redevelopment area designations, appointment of members to the Community Conservation Council, and the provision of TIF financing to help private redevelopment projects.

So, as illustrated by the sub-areas listed above, Chicago's Department of Planning and Development encompasses many responsibilities and several agendas. Both small and large businesses benefit financially from resources available from the DPD through low-interest loans, market information, and site location assistance. The Department of Zoning works in conjunction with DPD in regulating the land used for development in Chicago and dictates where people live and work, the lot sizes of their homes, and location of stores. The Department updates zoning maps, enforces zoning ordinances, and provides standards for developers on permitted uses, parking, landscaping, signage, dimensions and other criteria.

Also, very important to discuss is Tax Increment Financing (TIF). TIF is a special way to generate property tax dollars for economic development in specific areas. A TIF district, which is created by the City Council, is an area where this tax increment financing is available. This financing allows the city to re-invest all new property tax money from the neighborhood it came from for a 23-year period. After these property tax dollars are frozen from the district for 23 years, the money goes back to the city to pay for services.  The property tax money comes from owners of residential, commercial, and industrial property. Originally, TIFs were established to help promote redevelop-ment in 'distressed' communities that weren't likely to attract private investments without this financing. The amount of property taxes the city gets from each district to use on schools, parks, libraries, etc, is frozen, then the city borrows it and spends it on ways to make that area more attractive.  Some of the uses of TIF dollars are local infrastructure (sidewalks, bridges), public improvements (parks, schools, libraries), redevelopment and renovation projects, and job training.

There are over 130 TIF districts in Chicago and the local taxing bodies that get revenue from property tax include the City of Chicago, Chicago Public Schools, Cook County, and the Chicago Park District. Any additional revenue or new property taxes generated (by inflation or increases in property value) over the base equalized assessed value (EAV) goes into the TIF Fund, which is used to build more infrastructure and developments, thus, generating more property taxes. Basically, property owners in TIF districts pay the same tax rate, but the overage goes to the TIF Fund instead of schools, parks, libraries, etc. As with many issues in city government, there are also many critics who question whether these special tools are being mismanaged and overused. With the community's participation, these districts and financing can be useful in revitalizing neighborhoods through better parks and schools, affordable housing, employ-ment and improved overall economic redevelopment.

In a nutshell, the Department of Planning and Development, through its numerous branches, offers its residents a proud place to call home through thorough and historically-based planning. With its 'sister team' in the Department of Zoning, the DPD assesses whether an idea will fit and if it will make sense. The DPD asks, does this idea support the vision for the city?  The Department of Planning and Development and the Department of Zoning strive to create a safe and strong city with beautiful neighborhoods and a flourishing economy. Whether it's a new condominium development in the West Loop, updated light fixtures along the lakefront or the grand opening of a new business, these agencies have their eye on the future of Chicago and a plan in place for continuous improvement.

***********************************************************************

Kellye Fox is a Realtor® with Property Consultants Realty. She can be reached at

312-492-3234 or via e-mail at kfox@propertyconsultants.com.

     
     
Home Article Bank Events Products Contact Us

 

Chicago Real Estate Investment Resource

 
 
Google