City Fund from Developer Payments Generates $25 million in Grants
The Neighborhood Opportunity Fund, which started in 2016, came about after Mayor Rahm Emanuel was criticized for being too focused on downtown improvements at the expense of struggling neighborhoods. The program aims to invest in underserved neighborhood businesses by generally funding the construction or rehabilitation of buildings. Since its creation, the city has awarded $47 million in grants to nearly 200 businesses and organizations.
Projects are chosen based on “their potential to help catalyze nearby investments, their impact on commercial corridors, the experience and financial capacity of the applicants, and overall viability, among other criteria,” according to a statement from the city.
The money for the fund comes from developers that want to build projects that are larger than allowed under existing zoning. For example, Chicago-based JDL Development agreed to pay $13.2 million into the fund to gain the city’s approval for One Chicago Square, a 76-story residential high-rise under construction in River North.
