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$75 mil. windfall for Rush?; Payout from TIF district would help fund $900 mil. expansionChicago Sun-TimesJanuary 8, 2008By Dave NewbartRush University Medical Center stands to reap $75 million from a special city fund for economic development -- one of the largest amounts ever awarded to a private project. It would be the second largest payout from a city pool of money created by tax increment financing, which has been criticized as diverting money from schools, parks and other governing bodies. But Rush officials say the money would go to help fund a $900 million expansion project that would lead to 1,500 new jobs, an emergency room equipped to handle a major calamity and an overhaul of a medical center that still treats patients in 120-year-old buildings. The proposal is up for approval today before the Community Development Commission. "It really solidifies the future of Rush on the West Side," said Terry Peterson, the hospital's vice president for government affairs. The proposal calls for adding 76 acres south of the Eisenhower Expy. to the existing 463-acre Central West TIF District. The plan also needs approval by the City Council and the Illinois Health Facilities Planning Board. Only one other project -- redevelopment of the Maxwell Street area -- included a higher TIF payout, city officials say. Both aldermen whose wards include the TIF area -- Walter Burnett (27th) and Robert Fioretti (2nd) -- support the plan. Fioretti said he's gotten guarantees that other projects in the TIF district -- including a new park at Adams and Sangamon, improvements to Skinner Park and a shopping center at Western and Madison -- will not be deprived of funds. But Cook County Commissioner Mike Quigley says overuse of TIF districts has distorted the original purpose of attracting development to blighted areas. He calls TIF "a hidden tax hike" because school districts and other governing bodies lose any new property tax revenue in the district for 23 years. The money instead goes to a city fund that officials can use for economic development. Critics say that means the school districts have to raise their rates to make up for the diverted money. "I like Rush, I like health care. But you've got to ask yourself, is this the proper use of TIF money?" Quigley said.
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