This document provides an analysis of economic conditions in Cook County, Illinois from 2007-2009. It discusses demographic trends related to population, education, and income. Some key points:
- The population of Cook County declined slightly from 2000-2007 while surrounding counties grew significantly, with Kendall County growing by 77.5%.
- Cook County is home to several major universities and has a population where 28% of adults over 25 have a bachelor's degree or higher.
- The per capita income in Cook County was $45,230 in 2007, ranking 6th in Illinois. However, some townships had per capita incomes under $20,000, meeting the definition of economically distressed.
1. Cook County
Comprehensive Economic Development Strategy
CEDS Report
Approved By EDAC on February 5th, 2010
Approved By the Cook County Board on March 16th, 2010
2009
2. Cook County
Board of Commissioners
Todd H. Stroger, President
William M. Beavers
Jerry Butler
Forrest Claypool
Earlean Collins
John P. Daley
Bridget Gainer
Elizabeth Ann Doody Gorman
Gregg Goslin
Edwin Reyes
Joseph Mario Moreno
Joan Patricia Murphy
Anthony J. Peraica
Timothy O. Schneider
Peter N. Silvestri
Deborah Sims
Robert Steele
Larry Suffredin
Cook County
Department of Economic Development
Bureau of Community Development
69 West Washington, Suite 2900
Chicago, Illinois 60602
312.603.1000
3. Comprehensive Economic Development Strategy
(CEDS)
2007-2009
Table of Contents
I. Cook County Comprehensive Economic Development Strategy (CEDS) 1
Preface 1
Cook County Economic Development Advisory Committee (EDAC) 1
II. Analysis of Economic Conditions in Cook County 2
A. People 2
Population 2
Education 3
Income 4
B. Work 7
Employment Analysis 7
Summary, Manufacturing and Service-Providing Sectors 7
Manufacturing Sector 8
Expansion of Manufacturing Industries 8
Manufacturing Technologies 8
Service-Providing Sector 9
Clusters 9
Mass Lay-Offs and Closures 10
C. Transportation 14
Surface Transportation 14
The Region’s Interstate Highway System Connections 14
Public or Mass Transportation (RTA: CTA, Metra and Pace) 15
Rail Freight Transportation 15
Water Transportation 16
Commercial Air Transportation 16
III. Selected Economic Development Resources 18
Cook County Resources 18
State of Illinois Resources 22
Federal Resources 25
IV. Vision for Economic Development 29
V. 2009 Action Plan for Economic Development 31
Regional Objectives 32
Regional Strategies & Tactics 33
Regional Performance Measures 38
Resources and Acknowledgements_______________________________________39
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4. CEDS
2007-2009
Appendices
Exhibit: Map
Ten-County Economic Development Region of Northeast Illinois
Appendix 1
Cook County Economic Development Advisory Committee Membership
Appendix 2
Regional Population Data
Appendix 3
Northeast Illinois County Economic Profiles
Appendix 4
Educational Attainment Data
Appendix 5
Per Capita Income and Median Household Income Data
Appendix 6
Dominant Industries Data
Appendix 7
Unemployment, Layoffs & Mass Layoff Data & Available Municipal Unemployment Data
Appendix 8
Foreclosure Data
Appendix 9
City of Chicago Department of Community Development: Goals, Implementations, and Actions
World Business Chicago: Goals and Actions
ii
5. Cook County
Comprehensive Economic Development Strategy
(CEDS)
Preface
This Comprehensive Economic Development Strategy was prepared as a cooperative
collaboration by the following participants:
The Economic Development Division of the Cook County Department of Planning and
Development,
City of Chicago’s Department of Community Development (formerly Chicago Department
of Planning and Development),
City of Chicago Department of Planning and Zoning (formerly Chicago Department of
Planning and Development)
Cook County President’s Office of Employment Training (POET),
Illinois Department of Commerce and Economic Opportunity,
Chicago Metropolitan Agency for Planning, and
Members of the Metropolitan Economic Growth Alliance (MEGA)
World Business Chicago.
Thank you for your valuable contributions provided by dedicated managers and professional staff
personnel. An effort such as this report demonstrates leadership, guidance and high standards
that are evident throughout Chicago, Suburban Cook County and the entire metropolitan region.
This report presents an overview of general economic conditions in the ten-county Cook County
region (see Exhibit A) and discusses major economic development activities that various
governments and agencies carried out in 2007 through December 2009. (Some 2006 data is
included for continuity.) The report is comprised of five main sections:
1) An analysis of the economic environment in Cook County for 2007 to 2009;
2) Selected Economic Development Funding Resources;
3) A vision for future of economic development;
4) The action plan for economic development for 2009 and the first half of 2010; and
5) An evaluation of activities during 2006 through December of 2009.
Cook County Economic Development Advisory Committee (EDAC)
The President of the Cook County Board of Commissioners appoints the members of the
Economic Development Advisory Committee (EDAC)* who advises the President on matters of
economic development. This Committee reviews and recommends action on the issuance of
Industrial Revenue Bonds (IRBs), business loan applications, and 7b commercial property tax
incentive applications. EDAC also reviews and approves of the CEDS and other annual reports,
e.g. HUD required Annual Action Plans and Consolidated Annual Performance Reports
(CAPER). EDAC broadly represents the political, business, professional, and workforce
leadership throughout Cook County.
For EDAC Members, see Appendix 1.
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6. I. Analysis of Economic Conditions in Cook County
A. PEOPLE
Population
In February, 2004, the Office of Management and Budget in the White House updated its
statistical area definitions for matters of demographical analysis. (OMB Bulletin No. 04-03) On a
national scale, eleven large metropolitan areas were geographically placed within a designated
Metropolitan Statistical Area (MSA). Further more, the same OMB Bulletin designated three
Metropolitan Divisions within the larger MSA for the Chicago Metropolitan region. The
importance of knowing the relationship between a MSA and the geographically more compact
MD comes down to the practical matter of knowing and using the correct demographic data sets
that pertain to the information desired for and within a particular metropolitan area. Finally, the
terms “Consolidated Metropolitan Statistical Area” and “Primary Metropolitan Statistical Area”
have been retired.
Accordingly, Cook County is located within a population-designated census region identified as
the Chicago-Naperville-Joliet, IL-IN-WI Metropolitan Statistical Area (MSA) which is ranked
nationally 3rd in population, estimated in 2007 as 9,522,879. This MSA is made up of parts of
northwestern Indiana and southeastern Wisconsin, which have not previously been included in
the same statistical areas for Cook County. Cook County’s more immediate statistical area is
designated as a “Metropolitan Division” (MD) metropolitan division as Chicago. This statistical
area also includes the counties of: DeKalb; Du Page; Grundy; Kane; Kendall; McHenry; and Will.
These counties in the Metropolitan Division have an estimated 2007 population of 3,377,674
residents or 35% of the more inclusive, Tri-State Metropolitan Statistical Area (MSA) that
includes Illinois, Indiana and Wisconsin.
The American Community Survey (ACS) is a resourceful , if not indispensable internet-
accessible program designed by the Census Bureau to gradually replace the 10 year, long form
of the Decennial Census in order to provide similar census information on a yearly basis using
survey estimates from sampling. The ACS survey estimated that the State of Illinois had
12,852,548 residents in 2007. This is a 3.5% (433,255 residents) increase from the population of
12,419,293 in the year 2000. The estimated population of Cook County for 2007 was 5,285,107,
a -1.7% change from the 2000 Census population total of 5,376,741. Cook County’s population
still ranks first as Illinois’ most populous county with slightly over 40% of Illinois’ residents. Cook
County’s estimated 2007 population of 5,285,107 was slightly more than 55% of the Tri-state
Metropolitan Statistical Area. The American Community Survey calculates that there were 1.9
million households in Cook County with an average of 2.7 people per household.
The populations of the collar counties grew from 2000 to 2007: DeKalb’s population increased by
16.6%; Du Page had a 2.8% growth; Grundy experienced a 25.6% growth; Kane had the fourth
highest growth with 24.0%; Surprisingly, Kendall County experienced the largest growth with
77.5% which has been attributed to outward-migration from both Cook and several inner ring
counties; McHenry grew by 21.5%; and Will, on Cook’s southern border, grew by 34.1%. The
2007 ACS estimate showed an overall increase in the region’s population of 16.6%. The
percentages of growth were slower in counties such as Du Page and Lake where older housing
stock and greater population densities exist. Rapid growth, an unmistakable symptom of urban
2
7. sprawl, occurred in the outer ring counties of Kane and Kendall. This was a change from what
was reflected in the 2000 Decennial Census.
The City of Chicago’s estimated 2007 population is 2,836,658 according to the ACS. The City
has had an outbound migration of 59,358 residents since the 2000 census. This was a -2.0%
reduction in population. However, Chicago still retains a greater population than it had in 1990
when it had 2,783,726 residents.
Population Data can be found at Appendix 2
For an overview of the region, see Appendix 3: Northeast Illinois County Economic Profiles
Education
Cook County, along with the entire metropolitan region, benefits from a well-educated workforce,
world-class universities and excellent research facilities. In Cook County alone, there are several
major universities including: DePaul University, Illinois Institute of Technology (IIT), Loyola
University, Northwestern University, Roosevelt University, the University of Chicago, and the
University of Illinois at Chicago. These institutions are nationally recognized for their
undergraduate and graduate degree programs. Many have satellite campuses which serve the
furthest reaches of the region. Some of these schools have developed incubator programs that
sustain the growth of technology as well as entrepreneurships. Several of them work with local
institutions such as the Argonne National Laboratory and Fermi National Accelerator Laboratory
(Fermi-Lab). Others supplement ongoing medical, pharmaceutical and chemical research.
Cutting edge research, like nano-technologies and information technologies benefit from aspiring
student scientists and engineers. One school, IIT, has a long established chemical engineering
cooperative with Moffit Technical Institute, a division of Corn Products International.
There are many other institutions of higher learning in both Cook County and the surrounding
Metropolitan Statistical Area. Representative of these are the College of DuPage, Dominican
University, East-West University, Elmhurst College, Lewis University, Moraine Valley Community
College, National Louis University, North Central College, North Park College, Northern Illinois
University, Northeastern Illinois University, and Wheaton College. Northern Illinois also has an
extensive network of community colleges. These institutions are the front line in providing
technology based training.
There are seven of the nations leading law schools in the region. These include such prestigious
institutions as the University of Chicago and Northwestern University. Cook County had over
35,000 working lawyers many of whom attended local law schools such as DePaul, IIT’s Chicago
Kent, John Marshall, Loyola, and Northern Illinois.
Cook County is a leader in training doctors and health care workers. Cook County boasts five
major medical school environments at Loyola, Northwestern University, Rush, the University of
Chicago, and the University of Illinois at Chicago. The Illinois Medical District on Chicago’s
Near-West Side is comprised of one of the world’s largest concentrations of public and private
teaching health care facilities.
Lake County hosts the world renowned Rosalind Franklin University of Medicine and Science
which includes the Chicago Medical School. Clearly the breadth and depth of available
educational opportunities speaks to a regional commitment to providing a high quality, educated
work force.
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8. An overview of educational achievements In Cook County reveals that the number of people
aged 25 and older with a bachelor’s degree or higher was 28.0% in 2007, according to USA
Counties IN Profile. (See www.usacountiesinprofile.com). This was slightly higher than the
national average of 27%. For persons over 25 years of age, the following counties, which are
located in the Metropolitan Division, have the following percentage of bachelor’s degrees:
County % of persons over age 25 with bachelors
degrees
DeKalb 26.8%
DuPage 41.7%
Grundy 15.2%
Kane 27.7%
Kendall 25.3%
McHenry 27.7%
Will 25.5%
Du Page County led the region with 41.7% of the population over the age of 25 having a
bachelor’s degree or higher. Lake County, immediately north and a part of the Lake County-
Kenosha County Metropolitan Division, has a well educated population that is second only to Du
Page in the region, with 38.6% of the population over the age of 25 having a bachelor’s degree
or higher. The Metropolitan Area Division, Chicago-Naperville-Joliet, according to ACS 2007 data
estimates, has a population of 8,662,781, of which 31.8% of the adults over 25 have a bachelor’s
degree or higher. One can readily surmise that the population of this region as a whole is highly
educated and skilled. One clear suggestion is that there is incredible willingness to compete in
the national and worldwide economy.
Education Attainment data is compiled in Appendix 4.
Income
As newer data is in the process of further analysis for its accuracy and relevance, this section,
and some that follow, takes its base from available 2007 statistics and analyzed data.
The national adjusted per capita income in 2007 was $29,372. The per capita income for the
State of Illinois was $41,012 in 2007. The per capita income in 2007 for Cook County was
$45,230, ranking 6th in the state after Lake County with an average of $56,456, and Du Page
County with $55,371. The real per capita income for the remaining counties in Northeastern
Illinois were: DeKalb, $29,615; Grundy, $33,178; Kane, $36,131; Kankakee, $29,196; Kendall,
$33,805; McHenry, $39,061; and Will, $36,687. The national per capita income average for
2007 was $36,714. As may be recalled from earlier CEDS reports, income disparity is calculated
by eighty percent (80%) of the national average per capital income. What this means is that a
county would need to have an adjusted per capita income of less than $29,372 in order to qualify
as an economically distressed area. None of the counties in Northeastern Illinois qualify as
economically distressed given this standard.
Illinois is among the northeastern and Midwestern states that has townships as a political division
of counties. Within Cook County, Calumet Township with a per capita income of $17,473, Cicero
Township with a per capita income of $13,448, Stickney Township with a per capita income of
$20,825, and Thornton Township with a per capita income of $19,003, meet the 80% index. In
DeKalb County, DeKalb Township, with a per capita income of $18,316, has met this standard.
4
9. In Kane County, Aurora Township, with a per capita income of $18,756, has met this standard.
In Kankakee County, Kankakee Township, with a per capita income of $15,799, has met this
standard. In Lake County, Waukegan Township, with a per capita income of $17,854, and Zion
Township, with a per capita income of $19,195, meet the 80% indices. And finally, in Will
County, Joliet Township, with a per capita income of $18,409, has met this standard. Clearly,
this data indicates that there are major pockets of economic distress throughout the region.
County Township Per Capita Income
Cook County All $27,899
Cook County Berwyn Township $21,011
Cook County Bloom Township $22,008
Cook County Bremen Township $23,766
Cook County Calumet Township $17,473
Cook County Cicero Township $13,448
Cook County Hanover Township $26,845
Cook County Leyden Township $22,679
Cook County Rich Township $28,427
Cook County Stickney Township $20,825
Cook County Thornton Township $19,003
Cook County Worth Township $24,955
DeKalb County DeKalb Township $18,316
DuPage County Addison Township $26,350
DuPage County Bloomingdale Twp. $28,974
DuPage County Winfield Township $29,327
Kane County Aurora Township $18,756
Kane County Dundee Township $26,556
Kane County Elgin Township $22,871
Kankakee County Bourbonnais Twp. $22,569
Kankakee County Kankakee Township $15,799
Kendall County Oswego Township $28,195
Lake County Avon Township $26,382
Lake County Benton Township $27,399
Lake County Grant Township $28,722
Lake County Waukegan Township $17,854
Lake County Zion Township $19,195
McHenry County Dorr Township $28,615
McHenry County McHenry Township $28,758
Will County DuPage Township $28,630
Will County Joliet Township $18,409
Will County Lockport Township $23,753
Will County Plainfield Township $26,431
Per capita income declined by 1.1 percent between 2006 and 2007 according to 2007 data.
There are forty-eight municipalities (with populations over 20,000) in Cook County that,
according to the U.S. Census Bureau’s American Fact Finder, have populations with per capita
incomes that are less than 80% of the nation’s average,$29,372. We are interested in this
because, within fairly economically stable townships, there tend to be concentrated areas of
economic hardship within some municipalities that skew any overall averaging, whether per
capita, median or mean. The eight percent threshold level is one of the eligibility criteria for an
5
10. EDA project grant under part 305 or 308 of Public Law 105-393. A partial list of those
municipalities of interest includes:
Municipality Per Capita Income
Alsip $24,647
Bellwood $21,447
Berwyn $20,974
Blue Island $17,407
Bridgeview $20,473
Burbank $21,738
Burnham $18,860
Calumet City $19,677
Calumet Park $21,527
Chicago $23,845
Chicago Heights $21,708
Chicago ridge $22,493
Cicero $12,946
Country Club Hills $24,715
Crestwood $26,921
Dixmoor $14,041
Dolton $22,001
East Hazel Crest $25,817
Ford Heights $8,712
Franklin Park $22,152
Hanover Park $22,271
Harvey $14,096
Hodgkins $16,668
Hometown $21,015
Justice $23,096
Lynwood $22,847
Lyons $23,931
Markham $15,298
Maywood $16,927
Melrose Park $20,494
Merrionette Park $21,240
Midlothian $24,147
Northlake $20,879
Orland Hills $23,996
Phoenix $14,491
Posen $17,824
River Grove $23,139
Riverdale $16,164
Robbins $16,777
Sauk Village $20,543
South Chicago $19,497
Heights
Steger $21,708
Stickney $23,651
Stone Park $16,525
Summit $14,637
Thornton $24,078
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11. Data from STATS Indiana (www.stats.indiana.edu), a demographics overview published by Indiana
University under the auspices of the U.S. Census Bureau, reports that per capita income in the
United States rose by 18.2% between 1996 and 2006. The data also ranks Illinois as having the
fifteenth highest total personal income in the nation in 2007. Illinois’ neighboring states had
populations with per capita personal income as follows: Indiana, $33,215; Iowa, $34,916; Michigan,
$34,423; Minnesota, $41,105; Missouri, $33,964; Ohio, $34,468; and Wisconsin, $36,272. Illinois
ranked second in the region with a per capita personal household income of $41,012, as stated
above.
The median household income for Cook County according to 2007 data was $52,554: DeKalb,
$54,945; Du Page, $73,818; Grundy, $62,835; Kane, $68,513; Kendall, $77,938; McHenry,
$74,115; and Will, $71,597. Kankakee County, which is outside the Chicago Metropolitan
Division, had a 2007 median household income of $47.004. The data indicates that Cook
County has the lowest median income per household in the region. The 2007 median household
income for the United States was $50,740; for Illinois it was $54,141 or 106.7% of the median
household income in the United States. Illinois ranked 17th out of the 50 states for median
household income in 2007. Cook County households faired slightly better than households in
the rest of the State for median household income, ranking 20th amongst the counties, but
suffered under higher housing, transportation and food costs.
See Appendix 5 for Per Capita Income and Median Household Income Data
B. Work
Employment Analysis
Summary, Manufacturing and Service-Providing Sectors
If there is one over-riding theme for Cook County and the region’s business / manufacturing
environment over the past year, it can be succinctly characterized in one word: Unemployment.
There is no doubt that the loss of jobs remains the single most troubling trait of the recession of
2007-2008 and now 2009. Hardly a business and barely a family has been left untouched by the
ravages of the effects of the loss of employment, the loss of a needed paycheck and the loss of
self worth, self worth of both the human entity and the corporate entity.
From March of 2008 to March of 2009, Cook County had a decrease in employment of 108,433
(-0.5%). The employment bright spots during that time period included Health Care & Social
Assistance, up +2.7% and Educational Services, up +7.0%. The positive numbers
notwithstanding, in Cook County a litany of losses streamed steadily across from business to
unemployment line: Waste Management & Remediation Services (-23,538; -13.1%),
Manufacturing (-22821;9.9%), Construction (-12,723;15.1%) and Retail Trade (-12,423; -5,3%) to
list some of the larger entities.
The story of Cook County and its plague of unemployment can be retold to meet the specific
characteristics of each of the collar counties and beyond, to the”new” players, so to speak, in the
growing federation of counties that now make up the, once presumed economically healthy (if
not powerful) Northeastern Illinois Regional Planning group. Recently the federal government
has produced evidence of change with the slowing of the rate of unemployment. Surely, the
7
12. economy and job creation are in line for all the good news that can come with a brighter work
environment.
In stark contrast to the above observations and sobering reality about the statistically-greater
metropolitan, service-providing jobs accounted for 85% of the employment in Cook County in the
2nd quarter of 2008. From 2007 to 2008 Cook County lost 24,645 jobs.
Four “growth” sectors demonstrated employment growth during the year. Professional, Scientific,
and Technical Services gained 2,141 jobs while Educational and Health Services and the
Leisure and Hospitality Industries posted increase in employment: Health Care and Social
Assistance 4,492, Educational Services 3,539, followed by Accommodation and Food Services
3,337.
Manufacturing Sector
Cook County accounts for half the manufacturing base of the entire region, employing 229,523 of
the total 431,251 in a ten county metropolitan area expanded in 2008. (* Although CMAP
generally uses a eight county planning region, some of the federal governments include Grundy
and DeKalb counties, both in Illinois) The five largest manufacturing sectors for Cook County are
Fabricated Metal manufacturing (40,426), Food manufacturing (33,199), Machinery
manufacturing (20,367), Printing and Related Support Activities (16,905), and Electrical
Equipment, Appliance, and Electrical Component manufacturing (13,794).
Expansions in Manufacturing Industries
Chicago was ranked Site Selection Magazine's, 2007 - Top Metro Area for New and Expanded
Facilities, with 362 facilities, statewide. Chicago has had the top ranking in this category for
three consecutive years and the sixth time in the last seven years. Metropolitan areas are
evaluated according to 28 measures of development performance. The State of Illinois has been
ranked within the top ten states for new and expanded capital facilities since 1996.
Manufacturing Technologies
The Chicago metropolitan region has steadily made inroads to remain competitive in the Digital
Cities Survey conducted by the Center of Digital Government. This survey examines city
governments that have adopted digital technologies to improve the delivery of services to their
citizens.
The Illinois Institute of Technology (IIT) has received a $4.5 million grant from EDA to fund the
completion of the much anticipated venture, The Southside Incubator and Tech Park Project.
Along with Cook County, City of Chicago and Truman College of the City Colleges of Chicago,
IIT is developing a business incubator on their campus to meet the high demand for workspace
for university and company-generated start-ups in the life sciences, biotechnology, software and
green technology industries. This technology park will not only provide the laboratory and office
space needed but will also provide both entry and high level employment opportunities as the
facilities are constructed and maintained. The incubator will allow local companies to grow at the
same time it attracts businesses to Cook County. Essentially, while fostering the growth of local
companies, the incubator will actively attract (market) business from around the globe.
8
13. Another education center, Northwestern University, continues to forge ahead as one of the
recognized national leader in Nano-technology and Nano-Fabrication. Northwestern, like other
universities, draws on students and leaders in science from the region, nationally, and worldwide
to structure a science, math, engineering, and architecture matrix second to none. From this
matrix, secure in twenty-first century dynamics, the entire region benefits.
Renowned as a forward thinking enterprise, Chicago Community Ventures has applied for an
EDA grant for the construction of a new incubator for mixed-use small companies with a Women
and Minority focus located on Chicago’s Near Westside. The project is currently in the design
phase and is anticipated to be approximately 45,000 sq. ft. of new construction, housing 20-25
traditional non-technology companies.
The Village of Skokie is redeveloping a 23 acre industrial site, recently vacated by the
pharmaceutical company Pfizer, to house a technology park for the nanotechnology and
biotechnology industries. Forest G5, a developer with vast experience in other parts of the
country, is developing an urban “tech park” (as differentiated from a now archaic “industrial park”)
in order to draw on combined university and industry strengths in the area. The State of Illinois
and Cook County are joining in an effort to lend support to this project, as well as with others who
are or soon will be contemplating technology transfers between the units of government
Service-Providing Sector
Service-Providing industries employed 2,986,514 in the ten county region in 2008. 1,894,595
were employed in Cook County. The largest service-providing sector in Cook County was Health
Care and Social Assistance (300,357). This was followed by Retail Trade (236,396),
Accommodation & Food Services (207,295), Professional, Scientific, & Technical Services
(206,236) and finally Administrative & Support & Waste Management (185,239).
In the surrounding metro area, Retail Trade is the largest employment sector (196,744), followed
by Health Care and Social Assistance (145,384) and Administrative & Support & Waste
Management (122,669).
Clusters
Clusters are interdependent business entities that are linked through a buyer-supplier
relationship, share common resources and technologies, depend on similar labor pools and
support institutions, and that rely on special infrastructure. By identifying industry clusters,
business recruitment, attraction and development efforts are able to focus on companies that
complement existing businesses, enhance land-use decisions and make efficient use of the
transportation network.
The Chicago Metropolitan Agency for Planning (CMAP) is presently engaged in a
comprehensive “cluster” study of Cook County, as well as the entire metropolitan area. This
study, when published, will be a valuable strategic, collaborative, public-private approach to the
northeastern Illinois region’s economic development as it exists today and, through incorporating
models, how it can evolve given best practices scenarios. Cluster analysis, as a planning tool,
offers many benefits for exploring and evaluating industries, as well as other types of productive
activities for regional workforce, transportation, markets and research opportunities. A cluster
analysis and representation approach benefits leaders and planners because such forward
methodology:
9
14. Fosters formation of networks, collaborations and partnerships among cluster participants;
Increases the availability of a skilled workforce;
Stimulate the development of policies required to foster and support innovations;
Increased concentration of knowledge worker jobs leads to higher regional employment
and wages;
Improves the region’s competitiveness for new capital investments and jobs, which
increases the region’s competitiveness for state and federal investments in public transit,
highways, airports, research institutions and incubators; and
Increases innovations in product development which spurs company growth in a globally
competitive marketplace.
CMAP is already providing various governments and organizations in the region the types of
models that are based on its use the clusters and cluster-analysis approach. These
representational models reflect the real-world integrated, demographical and statistical inter-
relatedness of person, home, transit, work and quality of life components as an intricately
innovative tool at hand for leaders, planners and researchers whose concern is both the region’s
short- and long-term health and growth.
Labor Force and Employment information for Cook County municipalities can be found in Appendix 2 & 6.
Mass Layoffs and Closures
The Illinois Department of Employment Security’s Mass Layoff Statistics Program (MLS) records
the number of extended mass layoffs in the state. An extended mass layoff is an event affecting
more than 50 employees for more than 30 days. Additionally, it should be noted that an extended
layoff is one that includes at least 50 workers separated and last more than 30 days. According to
the Bureau of Labor Statistics (BLS), “extended layoffs may include workers who were expected to
be recalled sometime later as well as workers who were laid off permanently. Layoffs that last less
than 30 days are considered to be temporary”. These definitions are used universally for
discussing periods of unemployment.
The 2007 unemployment rate for the State of Illinois was 5.1%. It rose to 6.5% in 2008. The 2007
annual national unemployment rate was 4.6%, while the 2008 rate was 5.8%. As of February,
2009, the national rate of unemployment was estimated to be 8.1%. Illinois’ unemployment rate
was 8.6%. These statistics tell a story, but not clearly enough. In February, 2009 alone, Illinois
lost 37,200 jobs. Over the last year, Illinois lost 206,300 jobs, a number greater than the
population of Aurora, Illinois second largest city.
Cook County had an 8.3% unemployment rate in January, 2009. The remaining counties in the
region as of January, 2009 had unemployment levels as follows: Du Page, 6.5%; Grundy, 11.7%;
Kane, 8.8%; Kankakee, 11.6%; Kendall, 8.6%; Lake, 9.0%; McHenry, 8.2%; and Will, 8.7%. The
only county in the region that had unemployment levels that were less than the national average of
8.1% was Du Page with 6.5%. Clearly, the region is in trouble: because the unemployment rates
are growing exponentially and the rates are outpacing the national average.
10
15. By the end of 2008, 63 Cook County municipalities had unemployment rates that were higher
than the 5.8% national average. The following table reflects the reality of unemployment in Cook
County.
Alsip, village 6.9% Lyons, village 9.9%
Bellwood, village 11.0% Lynnwood, village 7.3%
Berwyn, city 9.8% Markham, city 16.5%
Berkeley, village 6.5% Matteson, village 7.2%
Blue Island, city 10.1% Maywood, village 12.6%
Broadview, village 9.7% Melrose Park, village 7.7%
Burnham, village 12.9% Merrionette Park, village 5.6%
Calumet City, city 11.2% Midlothian, village 7.7%
Calumet Park, village 11.1% Norridge, village 5.6%
Chicago, city 8.8% North Riverside, village 5.8%
Chicago Heights, city 16.2% Olympia Fields, village 6.8%
Cicero, town 11.9% Palatine, city 6.8%
Country Club Hills, city 10.0% Park Forest, village 8.8%
Crestwood, village 6.8% Phoenix, village 12.1%
Des Plaines, city 8.0% Posen, village 12.1%
Dixmoor, village 20.5% Richton Park, village 8.0%
Dolton, village 11.0% River Grove, village 6.1%
East Hazel Crest, village 10.1% Riverdale, village 15.1%
Elgin, city 12.0% Robbins, village 25.4%
Elk Grove Village, village 6.5% Sauk Village, village 9.8%
Evergreen Park, city 9.5% Schiller Park, village 6.6%
Ford Heights, village 34.7% South Chicago Hts, village 7.4%
Forest View, village 8.8% South Holland, village 9.6%
Franklin Park, village 8.6% Stickney, village 5.8%
Glenwood, village 8.8% Stone Park, village 11.1%
Harvey, city 13.0% Streamwood, city 8.9%
Hazel Crest, village 9.6% Summit, village 7.3%
Hillside, village 8.7% Thornton, village 10.2%
Hodgkins, village 10.1% Tinley Park, city 6.8%
Hometown, city 6.7% Willow Springs, village 7.5%
Justice, village 8.7% Worth, village 9.1%
Lansing 9.6%
The most recent available unemployment rates (as of this writing) are from January, 2009.
During the month of January, the U.S. unemployment rate was 8.1%. The State of Illinois’
unemployment rate grew from 6.3% in January of 2008 to 8.5% in January of 2009. Cook
County’s unemployment rate grew from 6.0% in January of 2008 to 8.3% in January of 2009.
As of December, 2008, demographics available through the Illinois Department of Employment
Security (IDES) show that 17 of Cook County’s more populated municipalities had rates at least
one percent higher than the U.S. rate at the time of 5.8%.
11
16. Berwyn 9.8% Elk Grove Village 6.5%
Calumet City 11.2% Harvey 13.0%
Chicago 8.8% Lansing 6.6%
Chicago Heights 16.2% Maywood 12.6%
Cicero 11.9% Palatine 6.8%
Country Club Hills 10.0% Park Forest 8.8%
Des Plaines 8.0% South Holland 9.6%
Dolton 11.0% Tinley Park 6.8%
Elgin 12.0%
In 2006, before the current economic downturn, the civilian labor force in Cook County was
reasonably robust across most labor sectors at 2,589,791 persons. Of that number, 2,466,076
were employed. The labor force grew by a comfortable 45,195 persons to 2,634,986 in 2007. Of
those available workers, 2,497,045 were employed. The 2008 labor force was 2,638,985.
Employment receded to 2,467,634 workers. In hard numbers, 171,351 fewer workers were
employed
In 2008, the Midwest reported more workers (428,283) affected by extended mass layoffs than
any other region in the nation. Also, as part of the Midwest story, transportation equipment
manufacturing and administrative and waste services had the largest number of job-separations.
At the end of 2008, Illinois had the second highest number of separations (119,692) due to
extended mass layoffs in the country. Among the 369 metropolitan areas, as defined by the
Census, the Chicago-Naperville-Joliet, Ill.-Ind.-Wis. Division reported the highest number of job
losses (19,894) in the fourth quarter of 2008.
The 590 layoffs events in Illinois in 2008 layoffs occurred across the economic spectrum. The
greatest occurrence of layoffs was in the construction sector. These separations accounted for
25% of the layoffs with 149 incidents and 22,824 workers involved. Some of these separations
could be related to seasonal employment. The next largest sector to be affected by layoffs was
professional and business services with a total of 135 layoffs, or 23% of the total. 29,175
employees were affected by these layoffs. This category had the highest percent of separations
in 2008 and accounts for 24% of the total. The third largest sector to be involved was
manufacturing. The manufacturing sector had 114 layoffs for 19% of the total. These layoffs
affected 22,541 workers. These three sectors accounted for 74,540 jobs, 62% of the total jobs
affected by mass layoffs.
In the Chicago-Naperville-Joliet, IL Metropolitan Division, representing the counties of Cook,
DeKalb, Du Page, Grundy, Kane, and Will, 211 mass layoffs occurred during 2008. These mass
layoffs affected 40,364 workers. The number of mass layoffs jumped by 13%; from 187 in 2007
to 211 in 2008.
Cook County witnessed 165 extended layoffs affecting 33,309 workers in 2008. This number
can be compared to being nearly equal to the population of Elk Grove Village at 33,548. The
previous year, 2007, there were 140 extended layoffs that affected 25,164 workers.
Of the 165 extended layoffs in Cook County in 2008, 92 occurred within the boundaries of the
City of Chicago. These layoffs affected a total of 20,585 workers. Sixteen (16) of the layoffs
were in the construction sector; 15 of the layoffs were in the professional and business services
12
17. sector; 14 were in the leisure and hospitality sector; 13 were in the financial sector; and 10 each
affected the manufacturing and transportation sectors. The leisure and hospitality sector had the
greatest number of workers displaced with a total of 3,673 affected by the downturn in the world
economy. The second greatest displacement of workers came in the construction sector. This is
to be anticipated due to seasonal conditions. However, the lack of financial backing for new
construction has further affected unemployment across the region. In conclusion, the
displacement of workers was across the economic spectrum and affected almost all sectors of
industry.
Unemployment is often a decisive component of the criteria for EDA funding eligibility. According
to these criteria, a metropolitan division is eligible for EDA funding when that region has
unemployment levels that are at least one percent greater than the national average for
unemployment during the most recent 24-month period for which data are available. The
unemployment rates in Illinois have soared over the last year. Illinois has always been a vibrant
state with a diverse economy. And, indeed, even in the midst of this recession there are robust
areas. However, as the months have passed, fewer of these robust areas exist. Illinois has
statewide levels of unemployment that are continuing to escalate.
The region’s Dominate Industries are shown in Appendix 6
Unemployment date for the region and Cook County municipalities are in Appendix 7.
One of the enduring complications of this economic downturn is, of course, the rise in the rate of
foreclosures. This is a real, entangled “complication” because, as many economic analysts
believe, the downturn began with fraud in the mortgage sector of banking. Many also believe
that any satisfactory recovery will not take hold on the economy as a whole until and unless the
mortgage industry is restructured under new consumer-protective rules, policies and regulations.
The loss of jobs and the ensuing disruption of household and individual income has escalated
into the most acute failures of mortgage securities that this nation has ever seen. This statistical
area has not been immune from this catastrophic phenomenon. It is not within the purview of
this document to analyze the causes, the tract or the future outlook of foreclosures. In this
region, the Woodstock Institute has become the primary analyst of foreclosures outside of
mainstream banking. The Woodstock Institute is a resource for gaining an understanding how
foreclosure rates influence everything from personal buying decisions, to locating a new place to
live (rent or own or leave), and the interrelatedness of employment, income and transportation to
the housing and mortgage matix.
Refer to appendix 8 for Foreclosure data.
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18. C. Transportation
Surface Transportation
The Cook County region is connected by interstate highways that run from coast to coast. It is
connected by passenger and freight rail that bring items from the ports of the Atlantic and Pacific
to the Midwest. It is connected by sea through the Port of Chicago located on the great Lake
Michigan with its connection to the St. Lawrence Seaway. It is connected by jets at two primary
hub airports that bring passengers and freight to the world. Cook County lies at the center of
major transportation corridors for all of these modes of transportation.
The Region’s Interstate Highway System Connection
Third in the nation for the most Interstate routes and mileage, Illinois’ highway system has 23
routes that cover 2,169.53 miles. Three of those interstate highway routes, I-70, I-80 and I-90,
are top in the country for linking an average of 10 states together. Cook County also has I-55, I-
57, and I-94. I-80 links Illinois with Indiana, Ohio, Pennsylvania and New Jersey to the east. To
the west, it links Illinois with Iowa, Nebraska, Wyoming, Utah, Nevada and California. Interstate
90 links Illinois to Indiana, Ohio, Pennsylvania, New York, and Massachusetts to the east. In the
west, it links Illinois to Wisconsin, Minnesota, South Dakota, Wyoming, Montana, Idaho and
Washington. Interstate 90 is the nation’s longest highway with 3,020.54 miles of highway.
Interstate 55 begins in Chicago and traverses the State of Illinois, crossing over into Missouri at
St. Louis and heading south through Arkansas, Tennessee, Mississippi, Louisiana before
terminating in Biloxi, MS.. Interstate 57 is a local highway which begins in Illinois and heads
south ending at the junction of I-55 in Missouri. Interstate 57 is the longest interstate highway in
Illinois covering 358 miles. Interstate 94 is 1585.20 miles in length. It connects Illinois with
Wisconsin, Minnesota, North Dakota, and Montana to the west. It crosses Indiana at the base of
Lake Michigan and connects Chicago through Michigan to Detroit to the east. It is clear that the
Chicago Region’s highways intersect at the crossroads of America’s freight and passenger
movement.
Public or Mass Transportation (RTA: CTA, Metra and Pace)
Public transportation for the Chicago Metropolitan area is funded through and administered by
the Regional Transportation Authority (RTA). The provision of transportation is through the
Metropolitan Commuter Rail Service (METRA), Chicago Transportation Authority (CTA) and
Pace Suburban Bus System (PACE) systems. Together these agencies provide an average of 2
million rides for commuters each week day.
Metra is the region’s commuter rail provider that serves 3,700 square miles of northeastern
Illinois which includes the six-county area of Cook, DuPage, Kane, Lake, McHenry and Will
counties. Metra serves 100 communities and manages 239 rail stations. It operates 11 different
rail lines from four major downtown terminals: Chicago Union Station; Ogilvie Transportation
Center; Millennium Station; and LaSalle Street Station. Most of the rolling stock is double
decked train cars. The rail service maintains 495 miles of tracks. Metra operates 702 commuter
trains per day over 503 miles of track.
The CTA serves 144 rail stations (both commuter rail and “L” stations) and has more than 12,000
posted bus stops. There are 224.1 miles of third rail track and 2,517 bus route miles making it
14
19. the second largest rapid transportation system in the United States. The CTA provides 1.8
million rides on an average weekday (based on summer 2008 statistics). Its primary coverage is
the City of Chicago, but the agency also serves 40 surrounding suburbs. The population in the
coverage area is 3.9 million. For 2008, total ridership was up. The increase in ridership is
directly related to the rise in fuel costs and parking costs, especially in Chicago’s downtown area.
The CTA bus system accounted for 62% of total ridership of 328.2 million rides while the rail
system had 198.1 million rides in 2008. Total ridership for the CTA was 526.3 million rides. This
is a positive change of 84.2 million in ridership levels from 2004 when total ridership dipped to
442.1 million. Additionally, the bulk of this change resulted from a tremendous growth in
ridership on the “L” system with an increase of almost fifty million rides for the year.
PACE is the suburban bus division of the Regional Transportation Authority (RTA) whose bus
routes serve 210 suburban communities of the six-county area. Its service area provides routes
through a population estimated at 5.2 million. The suburban bus system had a total ridership of
39.2 million for the year 2007. PACE manages 11 Park-n-Ride facilities. The bus system serves
122 Metra stations and 26 CTA stations. The Vanpool Incentive Program provides groups of
participants with an insured and maintained vehicle to commute between home and work. The
PACE program has the 2nd largest vanpool service in the U.S. This program had a ridership level
of 765,656 riders in 700 vanpool groups for 2007.
Rail - Freight Transportation
The Chicago Metropolitan Division, which includes Cook County, is the only metropolitan area in
North America to be served by all six of the U.S. and Canadian class-one railroads. In fact, Cook
County is the place where six of the seven class 1 railroads converge. The Chicago Region is
the rail transportation hub of the United States.
The Chicago region has stated to develop a strategy for rail transportation in conjunction with the
Association for American Railroads, the Burlington Northern and Santa Fe Railway Company
(BNSF), Canadian National Railway Company (CN), Canadian Pacific Railway Company (CP),
CSX Transportation, Inc., Norfolk Southern Railway Company (NS), the Union Pacific Railroad
Company (UP), Metra, the Illinois Department of Transportation, and the Chicago Department of
Transportation.
Freight transportation in the Cook County region has a direct effect on the movement of goods
throughout the United States, into Canada and Mexico. Much of the rail traffic handled in this
region moves to or from the United States’ coasts, including to and from every major seaport in
the USA and Canada. The efficiency of the rail yards and track movement in this region is
integral to the economic and security interests of the United States.
Cook County also has within its boundaries the Port of Chicago. This is the world’s 3rd largest
intermodal port after Hong Kong and Singapore.
15
20. Water Transportation
The Port of Chicago and the Illinois Waterway connect Cook County with the St. Lawrence
Seaway on the East and the Mississippi River on the west. This offers excellent water access for
ship and barge transportation. Deep draft commercial ships can reach the Atlantic Ocean
through the St. Lawrence Seaway. Barge traffic can reach the Gulf of Mexico through the Illinois
and Mississippi Rivers.
Additionally, much of Chicago’s growth as a major industrial city can be attributed to the I & M
Canal which operated from 1845 until the 1920s, connecting Lake Michigan and Bridgeport to
the Illinois River at LaSalle. In 1985, President Regan signed legislation designating the first I &
M Canal as a National Historical Corridor. This created the nation’s first linear park, so to speak,
bringing tourism to the region to honor the canal
The Port of Chicago is 36th in the nation’s ranking of short tons moved. The primary commodities
handled at the port include: aggregates, cement, coal, liquid bulk, salt, scrap, sugar and steel.
25,706,000 tons of freight was handled at the Port of Chicago in 2006. In a 2002 special
executive summary, the Illinois International Port District reported that nearly 30,000 jobs in the
state and metro area were related to activities at this location. According to the study, seventy-
three percent (73%) of the 3,367 direct jobs at the port are held by Illinois residents.
Illinois is a water rich state. We have direct access to three major rivers and the Great Lakes
waterways. From Lake Michigan, the Illinois Waterway crosses the state for 357 miles to join
with the Mississippi River at mile 217. Barges on the Illinois Waterway system moved 44 million
short tons of commodities during 2005. This is a slight decrease in tonnage from the previous
year. The commodities moved are generally agricultural products, chemicals, coal, construction
materials, petroleum and steel.
The Chicago Lock, located where the Illinois Waterway’s Chicago River meets Lake Michigan,
served 23,886 pleasure craft and 10,242 commercial boats in 2008 through one chamber. A
total of 36,256 water vessels passed through this location in 2008. The only other lock to
surpass this number was Hiram M. Chittenden Locks in Seattle, WA, with over 60,000 vessels
passing through its two chambers during 2008.
The combination of the Port of Chicago, the Illinois Waterway and other river systems in Illinois
help to rank the state 7th in the nation for overall short tons. This is tonnage that was either
shipped, received or had traveled intrastate for the purpose of commerce. Short tons moved in
the waterway system during 2007 were 120,970,000.
Commercial Air Transportation
No other airport in the world offers more direct connections to destinations around the globe than
O’Hare International Airport. A major challenge to maintaining the Chicago area’s status as the
nation’s transportation center is expansion at O’Hare. International and domestic traffic at O’Hare
have recently stagnated because of economic problems in the United States. However, due to the
O’Hare Modernization Program this preeminent airport is positioned to grow when air capacity
demands return.
16
21. O’Hare acts as a vital economic engine for Chicago and the nation. The City is revitalizing
O’Hare through the O’Hare Modernization Program. This massive project is meant to keep the
region’s air transportation system vibrant well into the 21st century. The project not only provides
for a shift in runway alignment but also provides solutions for the region’s ground congestion
problems by upgrading road infrastructure, public transportation and suburban access to O’Hare.
A bill allowing the O’Hare Modernization Program to proceed passed the Illinois Legislature in
2003.
Chicago is a non-stop global gateway to 76 international and 140 domestic destinations. It has
more direct destination flights than any other airport in the world. O’Hare International Airport
was the second busiest airport in the world in 2008. The airport recorded 881,566 operations
(takeoffs and landings) in 2008. In comparison, Atlanta’s Hartsfield-Jackson airport, the busiest
airport in flight operations, recorded 978,824 takeoffs and landings for the same time period.
Atlanta Hartsfield also recorded passenger volume of 90,039,280 for 2008. This was an
increase of .74% in passenger volume. O’Hare welcomed a total of 69,353,654 passengers in
2008. This is a decrease of almost 9% from total passenger volume in 2007.
Planning for growth in aviation travel has always been a priority in Chicago. Perhaps the best
example of the benefits reaped by investing in infrastructure is Midway International Airport.
More than a decade ago, after its most lucrative airline carrier ceased operations, the future of
the southwest side airport was in question. But, a commitment by the City to revitalize Midway
proved to be one of the nation’s greatest aviation success stories. That commitment was the
Midway Airport Terminal Development project, a plan that would bring the airport’s landside
capacity in line with its airside capacity. During the construction of this project, Midway
experienced record-breaking growth, served millions of passengers and created thousands of
jobs while fueling the local economy.
Midway International Airport demonstrated a firm and economy driven reduction in flight
operations and passenger volumes during 2008. This close in airport had 266,341 operations in
2008. Midway Airport served 17,345,635 passengers in 2008. This was 10.5% fewer
passengers than in 2007. Midway, at the moment, has excess capacity that will be well utilized
once the United States economy gains momentum.
In 2008, O’Hare and Midway International Airports handled:
A combined passenger volume of 86,699,289 (O’Hare and Midway)
Combined operations of 1,147,907 takeoffs and landings (O’Hare and Midway)
More than 237,500 passengers per day including 13,140 international travelers
More than 3,100 aircraft movements per day (take-offs or landings)
More than 1.4 million metric tons of freight
All major international air express carriers have major hub operations at O’Hare
17
22. Selected Economic Development Resources
Cook County Resources
Property Tax Incentives
Under the aegis of the Cook County Assessor, Cook County provides various tax incentives that
help make possible many economic development projects throughout the year. Although the
Chicago-Cook Business Center is no longer in operation, the Department of Planning and
Development continues to provide necessary assistance to the Office of the Assessor in the
promotion and application for industrial (Class 6b), commercial (Class 7a and 7b), combined
commercial and industrial (Class 8) tax incentives for businesses reoccupying abandoned
property; undergoing substantial rehabilitation to their current building or constructing a new
building and the newly enacted (Class 8a) incentive for properties that meet the characteristics of
Class 8 except for abandonment criteria. Within the five south suburban townships of Bloom,
Bremen, Calumet, Rich and Thornton, the Class 8 tax incentive is automatic with municipal
approval and no prior area designation (e.g. Enterprise Zone, Special Assessment Area, etc.) is
needed. It is too soon to evaluate the impact or the use of Class 8a, which was ratified by the
County Board on April 15, 2009.
The Presidents Office of Employment Training (POET)
The Presidents Office of Employment Training (POET), along with the Cook County Workforce
Investment Board is committed to assisting the residents of suburban Cook County through the
administration of the federally supported Workforce Investment Act (WIA) program which
provides residents with employment training, placement, and educational opportunities.
Through the WIA, POET offers relevant job training services and programs to assist residents in
the search for employment as well as help them to enhance existing job skills. Labor market and
Illinois Skills Match assessment services are also available in the Cook County POET WorkNet
Centers.
Each year, POET provides important services to more than 6,000 Cook County residents
through five WorkNet Centers in Suburban Cook County. POET assists with the placement of
over 1,500 residents in employment annually.
The Cook County No Cash Bid Program
Returning tax delinquent properties to either tax-generating or tax-exempt use is the goal of
Cook County’s No Cash Bid Program. Since the late 1980s, thousands of properties have been
purchased through the program at the request of municipalities and other eligible units of
government with taxing authority. As a result, many taxing bodies have perfected deeds and
returned the properties to the tax rolls or used them for municipal purposes.
The Cook County Department of Economic Development (a division of the Planning and
Development Department) works in coordination with the offices of the Cook County Assessor,
Clerk, Real Estate Division, Revenue Department, State’s Attorney Office and Treasurer to
support the Finance Tax Delinquency Subcommittee of the Cook County Board of
18
23. Commissioners in processing request packages and purchasing delinquent taxes. For the 2007
Scavenger Sale, a biennial auction of tax delinquent properties, the No Cash Bid Program
processed 423 requested property index numbers (PINs) and placed successful bids on 121
PINs. During over-the-counter processing, 92 PINs were reviewed in 2007 and 61 PINs were
reviewed in 2008.
The No Cash Bid Program staff also provides all Cook County municipalities and taxing bodies
with request package assistance and educational workshops on a variety of No Cash Bid
Program topics. In 2007 and 2008, two workshops were presented by the various Cook County
departments on completing a request package; filing required reports; using county tax
incentives for redevelopment; and filing for tax exempt status.
In 2000, the Cook County Assessor began the South Suburban Tax Reactivation Project
(SSTRP) as a means to assist economic development in five south suburban townships: Bloom,
Bremen, Calumet, Rich and Thornton. In 2006, the program was expanded to include all of Cook
County and was re-named the Cook County Tax Reactivation Project (CCTRP). CCTRP
identifies marketable commercial and industrial sites and, in cooperation with the municipalities,
submits request packages to the No Cash Bid Program. CCTRP then provides the legal support
to petition for tax deed(s) and promotes the deeded properties to developers. They provide
technical support in writing agreements and other documents needed to redevelop the parcels.
CCTRP submitted 121 PINs on behalf of 23 municipalities for the 2007 Scavenger Sale.
Cook County’s Bureau of Community Development &
The U.S. Department of Housing and Urban Development Funding
The former Cook County Department of Planning and Development administers needed funds
for projects throughout suburban Cook Co. as the designated HUD Community Development
Block Grant (CDBG) Grantee. CDBG dollars are made available to municipal and community
development organizations for eligible projects and programs that benefit low- and moderate-
income families and persons. The graph below shows, in brief, CDBG activity for the past three
years. PY 2009 fund allocations and final project count have not yet been determined.
Calendar Year HUD Program Year Number of Projects Annual CDBG
(PY) Allocation
2005-2006 PY 2006 138 $13,501,704
2006-2007 PY 2007 127 $10,954,545
2007-2008 PY 2008 122 $10,775,109
2008-2009 PY2009 TBA $10,498,470
*NOTE: HUD CDBG PY2009 allocation was last updated on June 5, 2009 and remains open for minor adjustment.
In addition to CDBG, Cook County Planning and Development also administers HUD’s
Emergency Shelter Grant (ESG) and the Home Investment Partnership (HOME). Respectively,
these funding sources benefit the homeless through the Continuum of Care homeless agencies
and low- and moderate-income homeowner assistance. A summary of these fund sources for
suburban Cook County is shown in the chart below.
19
24. ESG Summary 2006-2008
Calendar Year HUD Program Year Number of Annual ESG
(PY) Projects Allocation
2005-2006 PY 2006 21 $460,417
2006-2007 PY 2007 21 $493,161
2007-2008 PY 2008 22 $445,665
As a compliment to HOME funds, HUD created the American Dream Down-payment Initiative for
first time home buyers. For matters of brevity, HOME and ADDI funds are grouped together.
Also, HOME receives funds from other, non-HUD sources. These other sources include the
county’s corporate fund and program income from the preceding year’s activity. What follows is
a brief synopsis of the department’s HOME and ADDI funds for program year 2006 through
2008:
Through a period of uncertainty and disquiet, HOME projects diminished. During the same time
HUD continued to allocate HOME funding at a level higher than the demand. This resulted in an
unprecedented surplus of unused HOME (and ADDI) available funds. Funds that are typically
earmarked for ready-to-go projects were safely deposited in several county managed bank
accounts. It is not the intent of this document to discuss any of the details of the ensuing audit.
Suffice to report that HOME funding dollars needed to be brought forward to seed new and
stalled housing projects:
PY 2006: According to the PY 2006 the Cook County Planning Department’s Comprehensive
Annual Performance Evaluation (CAPER) submitted to HUD, HOME funds were
used to construct and/or rehabilitate 218 senior rental homes. Additionally, ADDI
funds were used to assist in the construction and/or rehabilitation of 59 of these
homes.
In order to fund the above HOME/ADDI projects, a total of $5,931,288 HOME funds
both from HUD allocation and from reserves were activated. In addition to the
HOME funding activity, ADDI received a HUD allocation of $110,012 and activated
unspent funds for a total of $979,764.
PY 2007: The PY 2007 CAPER reported to HUD that HOME and ADDI funds were expended
(in relevant part) for the construction/rehabilitation of 154 rental units with 61 units
receiving assistance with ADDI funds.
The HOME funding of $5,761,486 was supplemented by ADDI funds of $111,012.
In this program year, $500,000 of HOME funds was transferred to ADDI in order to
increase the scope of some ADDI projects needing attention.
PY 2008: The PY 2008 CAPER will not be due to HUD until the calendar year end of 2009.
Nevertheless, it is projected that Planning and Development will complete an
estimated 119 HOME projects. The status of ADDI and any existing ADDI projects
has not yet been determined, although HUD will provide limited funds. The
projected break-down of funds to meet the completion of 119 projects is as follows:
HOME PY 2008 = $5,599,793 est.
ADDI PY 2008 = $44,853 est.
20
25. In summary, the Cook County Department of Planning administers the federal CDBG, ESG and
HOME (and ADDI) programs for suburban Cook County. These programs are instrumental for
community development because they fund affordable housing, single family rehabilitation,
municipal capital improvements, public service agencies, and homeless shelters and supportive
services.
21
26. State of Illinois Resources
The Illinois Department of Commerce and Economic Development (DCEO)
The lead agency responsible for improving the competitiveness in Illinois in the global economy
is the Illinois Department of Commerce and Economic Opportunity (DCEO). DCEO provides a
variety of programs and services that enable growing and prosperous industries, high quality
jobs and world-class communities.
Since 2004 DCEO’s central mission has been to implement and administer Opportunity Returns,
the State’s comprehensive, pro-active plan for revitalizing the economy and spurring job growth.
Developed largely from the input of local business, labor and public sector leaders, Opportunity
Returns delivers services on a regional basis and contains tangible, specific actions to make
each region accessible, marketable, entrepreneurial and attractive to local business within each
of the ten designated regions.
Opportunity Returns has managed to stimulate real economic growth in Illinois by attracting
investment, upgrading worker skills, fostering an innovative, supportive business climate, and
creating thousands of well-paying jobs across the state. DCEO will continue to dedicate the vast
majority of its capital and human resources to ensuring the success of Opportunity Returns.
By targeting resources on a regional basis, Opportunity Returns is helping businesses in the field
that foster new technologies for an evolving future; transportation and manufacturing to spur the
development of new product design and distribution; advances in the growth of agri-business
and advances in a more dynamic methods that improve the way crops are integrated in the web
of local vendor operations that ultimately must meet the challenges of getting food to the tables
of an increasingly urbanized society. The financial commitments that were made through
Opportunity Returns are using innovative partnerships to leverage more funding at the federal,
state, local and private level, all of which are being poured directly into efforts to help businesses
thrive and create more jobs.
While each plan is customized to meet the specific strengths and needs of a particular region,
the common thread in all of them is a steadfast commitment to strengthening education and job
training, supporting local businesses and entrepreneurship, and expanding public roads and
local infrastructure – investments that put the wheels of economic growth in motion.
Cook County and nine other counties are designated as the Northeast Region. It must be
pointed out that businesses located within established Enterprise Zones are not eligible for the
Opportunity Returns program. Although Opportunity Returns is the leading economic arm of
DCEO and is the face of economic development throughout the ten regions, there are many
other programs that DCEO administers.
In addition to and in conjunction with Opportunity Returns, DCEO’s Bureau of Business
Development administers a wide array of programs and services designed to help Illinois
businesses to thrive in today’s economy. This business assistance includes incentives,
technology support, access to capital (loans, loan participation, and grants), global marketing
expertise, and employment training for persons with jobs. DCEO’s trained staff is committed to
forging partnerships with the private sector in an effort to build upon Illinois’ reputation as a world
class center for business and industry. This includes a strong emphasis on programs designed
to provide small businesses – particularly minority and female entrepreneurs – with the
resources they need to succeed and grow their business opportunities.
22
27. Following is a brief summary of DCEO’s FY 2008 and FY 2009 budget:
______________________________________________________________________
FY 2008 Appropriation $567,635,000 Adjusted to: $646,428,000
FY 2009 Appropriation $591,857,000 Adjustment after the close of the
Fiscal Year (June 30th)
DCEO Programs
Under the auspices of Opportunity Returns, the list of support programs for businesses and
individuals in Illinois that DCEO provides funding for is extensive, if not exhaustive. The
following list is just a few of more than thirty DCEO programs for Business Development,
Workforce Development, Technological and Industrial Competitiveness, and International Trade.
Development Corporation Participation Loan Program (Small businesses)
Minority, Women and Disability Participation Loan Program
Illinois Capital Access Program (CAP, small and new businesses)
Entrepreneurship Centers
Enterprise Zone Program
Economic Development for a Growing Economy (EDGE)
Further information, including a summary of each program, is available at www.ildceo.net.
DCEO provides funding assistance for Workforce development Technology and Industrial
Competitiveness, Energy and Alternative Energy initiatives and several Community Development
grants.
The current adjustments in the national and world economy have not prevented DCEO’s forward
thinking and aggressive funding. DCEO is a beneficiary of the U.S. stimulus legislation.
Dwindling funds are being revived and new program availability and opportunity are being
developed in advance of the receipt of the federal re-stabilization dollars. Illinois’ Good Jobs
First, a capitalization cooperation of the federal government and DCEO, has been around since
the early part of the current decade. However, many programs aimed at workforce revitalization
are receiving meaningful and substantial funding from Washington to promote jobs, business
creation and retention, and education for new and extent technology growth.
These state resources will become more recognizable as we go forward with the re-stimulating
the local, suburban Cook County living and working environment. DCEO’s access and, in turn,
making accessible needed funding is another tool, so to speak, to put into practice for then
benefit of our constituent property owners, business-persons, worker- laborers, and students
whose desire to live in our community is equal to their desire to make it a better place to live.
Primary citations and references for above section:
www.ildceo.net
www.commerce.state.il.us/dceo
www.dsireusa.org
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28. The Office of the State Treasurer
In an effort to strengthen home sales that have declined as a result of dubious and deceitful
practices in mortgage-lending and the dual calamity of loss of confidence in- and the tightening
up of- home buyer credit availability, the State Treasure has began a new initiative: Finally
Home. This program, aimed at mortgage lenders, offers a 10% mortgage guarantee, providing
lenders with extra security on mortgages contemplated by borderline borrowers. These
borderline borrowers are mortgage-ready but need this incentive to secure a substantial home
loan. According to documentation prepared for by the Treasurer, Finally Home offers several
exceptional program benefits that should be attractive to both lenders and borrowers. Here are a
few examples:
Benefits to lenders:
Counts toward Community Reinvestment Act (CRA)fulfillment;
Adds flexibility to underwriting criteria;
Has no volume requirement;
Is free to participate;
Improves loan products;
Requires no collateral; and
Helps close additional mortgages.
Benefits to borrowers:
The Finally Home Program…
·
Can be used to secure affordable and sustainable loans;
Can be used to purchase a home or refinance a mortgage due to an adjustable rate
mortgage (ARM) reset or other financial hardships; and
Is available to low- to moderate-income borrowers who may be unable to obtain a
conventional mortgage due to bruised credit, high debt or other factors.
Lastly, Finally Home provides a viable and secure alternative to predatory loans that often
lead to foreclosure and spiraling credit problems.
Citation and reference for this section: www.treasurer.il.gov/finallyhome
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29. Federal Resources
Bonds, Loans, and Grant Economic & Community Development Stimulus Programs
Although the economy continues to be weak, the Cook County Department is committed to
enhance the quality of life for the citizens of the county and, thereby, the region as a whole.
Historically, the department has been a HUD grantee only. Now that greater community and
business needs for government assistance have been exposed, it became incumbent on the
department to proactively scrutinize as many programs and service funding sources as relevant
to meet the economic challenges of the county and region. We redefine challenges as
opportunities and searched for meaningful available funds. To be meaningful, these needed
sources must bring substantial dollars and must be immediately accessible.
The attached chart* is a summation of the department’s efforts in this regard. It must be
understood that, although this list of funding sources we will use is comprehensive, it is not
exhaustive. As we continue to move forward to put these initiatives into practice, the search for
new, substantial funding sources also remains an on-going activity. The Cook County
Department of Planning and Economic Development is eager to employ these new tools, perfect
the existing, tried-and-tested ones, while growing the capability to do more in order to assist our
towns, villages, and cities as well as existing and potential/new business and industries with the
type of economic stimuli they deserve from their own hard earned tax dollars.
Build America Bonds
Finally, the Department of Planning and Development has begun deliberation concerning the
Build America Bond program as another potential funding source.
Briefly, the American Recovery and Reinvestment Act of 2009 creates the new Build America
Bond program, which authorizes state and local governments to issue Build America Bonds as
taxable bonds in 2009 and 2010 to finance any capital expenditures for which they otherwise
could issue tax-exempt governmental bonds. State and local governments receive a direct
federal subsidy payment for a portion of their borrowing costs on Build America Bonds equal to
35 percent of the total coupon interest paid to investors.
This new program is intended to assist state and local governments in financing capital projects
at lower borrowing costs and to stimulate the economy and create jobs. Currently, Cook County
is utilizing the Build America Bond Program’s Facilities Bonds for its Capital Facilities Project.
*See “Sources of Funding” chart below.
How Build America Bonds Work
Build America Bonds are a new financing tool for state and local governments. The bonds,
which allow a new direct federal payment subsidy, are taxable bonds issued by state and local
governments that will give them access to the conventional corporate debt markets. At the
election of the state and local governments, the Treasury Department will make a direct payment
to the state or local governmental issuer in an amount equal to 35 percent of the interest
payment on the Build America Bonds. As a result of this federal subsidy payment, state and
local governments will have lower net borrowing costs and be able to reach more sources of
borrowing than with more traditional tax-exempt or tax credit bonds. For example, if a state or
local government were to issue Build America Bonds at a 10 percent taxable interest rate, the
Treasury Department would make a payment directly to the government of 3.5 percent of that
25
30. interest, and the government's net borrowing cost would thus be only 6.5 percent on a bond that
actually pays 10 percent interest.
This feature will make Build America Bonds attractive to a broader group of investors, and
therefore create a larger market than typically invest in more traditional state and local tax-
exempt bonds, where interest rates, due to the federal tax exemption, have historically been
about 20 percent lower than taxable interest rates. They should be attractive to investors without
regard to their tax status or income tax bracket (e.g., pension funds and other tax-exempt
investors, investors in low tax brackets, and foreign investors).
Citation and reference for this section: www.treas.gov/press/release/g81.htm
COOK COUNTY BUREAU OF COMMUNITY DEVELOPMENT
Division of Economic Development
SOURCES of FUNDING 2009 & FY 2010 1
Funding Funding Program Funding Program Description Estimated
Source Type 2 Funds 3
HUD CDBG The Community Development Block PY 2010 allocation
Grant (CDBG) program is a flexible has not been
program that provides communities with determined
resources to address a wide range of
unique community development needs.
FG Beginning in 1974, the CDBG program is
one of the longest continuously run
programs at HUD. The CDBG program
provides annual grants on a formula basis
to 1180 general units of local government
and States.4
HUD HOME HOME provides formula grants to States Not yet
and localities that communities use-often determined 5
in partnership with local nonprofit groups-
to fund a wide range of activities that
FG build, buy, and/or rehabilitate affordable
housing for rent or homeownership or
provide direct rental assistance to low-
income people.
HUD / EDA Section 108 Loan CDBG entitlement communities are Application
Guarantee eligible to apply for assistance through the Submitted for
section 108 loan guarantee program. $25,000,000 6
CDBG non-entitlement communities may
also apply, provided their State agrees to
L pledge the CDBG funds necessary to
secure the loan. Applicants may receive a
loan guarantee directly or designate
another public entity, such as an industrial
development authority, to carry out their
Section 108 assisted project.
EDA American To promote comprehensive, $80 million Pre-
Recovery Program entrepreneurial and innovation-based stimulus for the
economic development efforts to enhance Chicago region
under the the competitiveness of regions, resulting
American Recovery G in increased private investment and
and Reinvestment higher-skill, higher-wage jobs in regions
Act of 2009 that have experienced sudden and severe
26
31. economic dislocation and job loss due to
corporate restructuring to meet the
challenges of the drastic downturn in the
national and regional economies.
US DOE Energy Efficiency The program provides federal grants to $12.6 million has
and Conservation units of local government …to reduce been allocated to
energy use of fossil fuel emissions and for Cook County for
Block Grant improvements in energy efficiency. The eligible projects.
(EECBG) FG program is administered by the Office of
Weatherization and Intergovernmental
Programs in the DOE.
EPA 1.Target Funding is an environmental assessment Grants are for up
Brownfield of a Brownfield site. TBAs are conducted to $200,000 per
by EPA at no cost to the recipient site. $30 million
Assessment (TBA) applicant. The TBA evaluates the risk (est) may be
posed by the site and can identify allocated for EPA
strategies that promote a brownfield’s Region 5.
G revitalization and the potential benefits to
the community. The TBA recipient
establishes the goals and schedule of the
assessment by participating at all levels of
planning, assessment implementation and
close-out review, comments and draft
reports.7
2.Revolving Loan This fund makes available up to Up to $1,000,000
“ Fund $1,000,000 per eligible entity (recipient per eligible entity
provides a 20% match) to: 1.Capitalize a
revolving loan fund; at least 60% of funds
must be used to capitalize a loan pool. 2.
RL Make one or more loans to an eligible
entity, site owner, site developer, or
another person. 3. Make grants (up to
40% of funds to an eligible entity or non-
profit to clean up a site it owns.7
3.Cleanup Grants Grants-up to $200,000 per site to fund Up to $200,000 per
“ eligible entities or non-profits to clean up site. EPA may
sites they own. EPA may limit the limit the number
number of sites eligible for funding each of eligible sites.
year. Funds may be used to address sites
G contaminated by petroleum and hazardous
substances, pollutants, or contaminants.
Cleanup grants require a 20% cost share;
grantee share may be in-kind and excludes
administrative costs. Performance period
is up to three years.7
ARRA Recovery Zone An ARRA created $10 billion taxable $131,000,000
America Economic issuance capacity government bond whose
Revitalization proceeds must be used in designated
Development Bond “Recovery Zones”, generally areas with
and Recovery
Act of 2009
(RZEDB) significant poverty, accelerated
aka unemployment, and high foreclosure rates.
Build B Certain restrictions apply. However
America community recovery is the operative
Bonds directed use of the bond proceeds.
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32. (BaBs)
Recovery Zone An ARRA authorized $15 billion tax- $196,000,000
“ Facility Bond exempt private activity bond for use in
designated “Recovery Zones” (see
(RZFB) RZEDB). General the proceeds are
allowed for financing for depreciated
property in active use for trade or
B business, providing that the subject
facility is acquired after the date on which
a Recovery Zone designation took effect.
RZFB will be allotted to states and further
allotted to counties and large
municipalities based on relatively high
unemployment rates.
NOTES:
1
In general, HUD Funds are administered in accordance to the federal government’s fiscal calendar, October 1 to
September 30. The fiscal year is referred to as the Program Year or PY.
2
FG = Formula Grant; CG = Competitive Grant; G = Grant; L = Loan; RL = Revolving Loan; B = Bonds
3
Not all funding amounts have been established.
4
Cook County Planning & Development is the county’s CDBG agent, the Grantee, for HUD entitlements. As such, the
CDBG program allocates grants to develop sustainable communities by providing funds for decent housing, a suitable
living environment, and opportunities to expand economic opportunities for low- and moderate-income persons and in
underserved, economically underdeveloped communities.
5
HOME fund availability does not conform to HUD’s fiscal year calendar. Funds are used on an on-going basis.
6
The Section 108 Loan Guarantee Program allows for up to 10 times the CDBG grantee’s annual allocation.
7
EPA program narratives are from EPA Region 5 Brownfields Revitalization, Documents & Agreements Branch
brochures, October, 2007 & 2009.
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33. VISION for Economic Development
Vision Statement
The Cook County and Chicago Metropolitan Region envisions the cultivation of a diverse
economic base which embraces environmental responsibility and efficient operating standards
for fiscal stability, growth and sustainability of the local economy and an enhanced quality of life.
Despite the historical breadth of the region’s industrial complex, the Cook County and Chicago
Metropolitan Region, is experiencing precipitous fiscal decline once prevalent in other “rust belt”
areas whose local economies had been dependent on one or two industries. The Region cannot
afford the prospect of further erosion to the local economy and will therefore endeavor to
supplement the market and geographic forces which formed an initial nexus of industry with
initiatives aimed at calibrating and invigorating the local economy to form a new nexus of
industry.
The Cook County and Chicago Metropolitan Region will need to examine and assist clusters of
industries and individual businesses which maintain or have potential for high wages, high
employment numbers, high employment growth, concentration in various industries, aid the
operation of business operations, in general, as well as, those with stable indices and other
desirable factors, which can be leveraged for regional economic revitalization.
The Cook County Region will assume a prominent role in the catalyzing the direct synergy
between industries which include advanced materials, advanced manufacturing, green
manufacturing, agribusiness, nanotechnology, plastics, mechanical, electrical, chemical and
biomedical/biotech industries. Strategies for local mitigation of effects of the global downturn on
the region’s financial, insurance and real estate industries will be sought as well as strategies for
reestablishment. The Region’s business and professional service industries will be positioned
as vehicles for the restructuring of industrial practices to incorporate the utilization of
environmental and business sustainability measures, such as operational processes which
lessen or eliminate negative environmental effects and management which functions according
to current efficiency standards.
Transportation, logistics and warehousing industries will be augmented through a revamped
promotion of the Region as a “go to” location for these services, due to the geographic centrality
of the Region in the United States in addition to the upgrading of the infrastructure of these
industrial networks for enhanced local, national and international business and consumer
operations.
Development of the Region’s industries and workforce will be undertaken through economic
development planning, research, assistance in the development of products and services, job
training and employment. Economic development planning will be conducted to assess the
feasibility and determine strategies and initiatives for building the capacity of industry and
creation of new jobs in the workplace for revitalizing the regional economy. Economic, site,
social and demographic analysis will be among the techniques utilized to chart such activities as
the marketing of the region and components of the local economic system, planning for industrial
park development and workforce development.
Further research will be performed on initiatives selected to foster revitalization of the local
economy. Alternatives will include research enabled through partnerships between universities
29