CUED
Center
for Urban Economic Development
University of Illinois at Chicago
The
Impact of the Federal and State Urban Development Action Grants (UDAG, IDAG)
on Chicago: 1976 - 1986
Project Number: 236
Report Date: 1987
Author(s): Patricia Wright
The Chicago 1992 Committee has requested CUED to undertake a study of the federal Urban Development Action Grant (UDAG) and the Illinois Development Action Grant (IDAG) programs that have been awarded to the City of Chicago. The purpose of the study is 1) to determine how these programs have been utilized in the City to foster development and job opportunities and 2) to determine what actions the Chicago 1992 Committee can undertake to see that the City of Chicago uses these programs effectively to improve the employment base for the City.
After
examining the Chicago UDAG and IDAG record from 1979-1986 the highlights of our
findings are as follows:
-The City of
Chicago has been awarded 58 UDAGs in the 1979-1986 period.
-These 58
UDAGs have brought $97,815,651 public dollars to Chicago and leveraged $732,201,519
private dollars, a 1-7.4 ratio.
-Projects in the loop have received 27%
of the UDAG dollars with the highest concentration (39%) in the south loop area.
-The northside has received 27% of the UDAG dollars, the southside 18% and
the westside 13%. Half of the westside dollars were for projects in the near west
area. -66% of UDAG dollars have been awarded to commercial projects; 17% for manufacturing
and 17% for residential projects.
-Twenty-seven of the fifty-eight UDAG
projects have completed construction and are being monitored for job creation.
Thus far, these projects have created 29% of their promised jobs.
-The
UDAG loans are paid back to the city and must be used for activities eligible
under the Community Development Block Grant (CDBG) program. In 1987 it is projected
that the City of Chicago will have accumulated a total of 7 million dollars from
UDAG loan paybacks.
-The State Illinois Development Action Grant (IDAG)
program has allocated 10 million dollars to the City of Chicago.
-In
its first round of 1986, six IDAG projects have been approved by the Illinois
Development Finance Authority which administers the program.
-Thus far,
the IDAG program has had 2 community development corporations involved as partners
in its second round of applications.
Given the findings of the report the following recommendations were made to the Chicago 1992 Committee for its consideration.
Recommendations
1. Strongly
urge the City of Chicago to utilize the UDAG/IDAG programs to help implement an
industrial policy that will concentrate on maintaining and strengthening Chicago's
manufacturing base. This industrial policy should be part of a larger plan to
insure a balanced employment base for Chicago.
2. Encourage the City of
Chicago to take a proactive role in soliciting UDAG and IDAG applications based
on sound policies and plans for a balanced employment base.
3. Oppose
further UDAGs or IDAGs being used for loft conversions particularly in the south
loop and near westside.
4. Work with city and other interested groups
to make quality of jobs an issue for UDAG, IDAG and other publicly funded projects.
5. Work with MET to develop stronger measures of accountability for UDAG recipients
to produce jobs promised.
6. Encourage the city as part of its proactive
role to make greater efforts to solicit UDAG and IDAG applications from local
development corporations and manufacturers.
7. Form a task force to discuss
the use of UDAG payback monies to benefit the areas of the city hardest hit by
unemployment and disinvestment.
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UIC-Center for Urban Economic Development
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