1. Cook CountyComprehensive Economic Development Strategy CEDS ReportApproved By EDAC on February 5th, 2010 Approved By the Cook County Board on March 16th, 2010 2009

2. Cook CountyBoard of CommissionersTodd H. Stroger, PresidentWilliam M. BeaversJerry ButlerForrest ClaypoolEarlean CollinsJohn P. DaleyBridget GainerElizabeth Ann Doody GormanGregg GoslinEdwin ReyesJoseph Mario MorenoJoan Patricia MurphyAnthony J. PeraicaTimothy O. SchneiderPeter N. SilvestriDeborah SimsRobert SteeleLarry Suffredin Cook County Department of Economic Development Bureau of Community Development69 West Washington, Suite 2900 Chicago, Illinois 60602312.603.1000 3. Comprehensive Economic Development Strategy (CEDS) 2007-2009Table of ContentsI. Cook County Comprehensive Economic Development Strategy (CEDS) 1 Preface1 Cook County Economic Development Advisory Committee (EDAC) 1II.Analysis of Economic Conditions in Cook County 2 A. People2 Population 2 Education3 Income 4 B. Work7 Employment Analysis7 Summary, Manufacturing and Service-Providing Sectors 7 Manufacturing Sector 8 Expansion of Manufacturing Industries8 Manufacturing Technologies 8 Service-Providing Sector 9 Clusters 9 Mass Lay-Offs and Closures 10 C. Transportation14 Surface Transportation 14 The Regions Interstate Highway System Connections 14 Public or Mass Transportation (RTA: CTA, Metra and Pace) 15 Rail Freight Transportation15 Water Transportation 16 Commercial Air Transportation16III. Selected Economic Development Resources18 Cook County Resources18 State of Illinois Resources22 Federal Resources25IV.Vision for Economic Development29V. 2009 Action Plan for Economic Development31 Regional Objectives32 Regional Strategies & Tactics33 Regional Performance Measures38Resources and Acknowledgements_______________________________________39 i 4. CEDS2007-2009AppendicesExhibit: MapTen-County Economic Development Region of Northeast IllinoisAppendix 1Cook County Economic Development Advisory Committee MembershipAppendix 2Regional Population DataAppendix 3Northeast Illinois County Economic ProfilesAppendix 4Educational Attainment DataAppendix 5Per Capita Income and Median Household Income DataAppendix 6Dominant Industries DataAppendix 7Unemployment, Layoffs & Mass Layoff Data & Available Municipal Unemployment DataAppendix 8Foreclosure DataAppendix 9City of Chicago Department of Community Development: Goals, Implementations, and ActionsWorld Business Chicago: Goals and Actions ii 5. Cook County Comprehensive Economic Development Strategy (CEDS)PrefaceThis Comprehensive Economic Development Strategy was prepared as a cooperativecollaboration by the following participants: The Economic Development Division of the Cook County Department of Planning and Development, City of Chicagos 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 Presidents 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 staffpersonnel. An effort such as this report demonstrates leadership, guidance and high standardsthat 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 Countyregion (see Exhibit A) and discusses major economic development activities that variousgovernments and agencies carried out in 2007 through December 2009. (Some 2006 data isincluded 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; and5) 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 theEconomic Development Advisory Committee (EDAC)* who advises the President on matters ofeconomic development. This Committee reviews and recommends action on the issuance ofIndustrial Revenue Bonds (IRBs), business loan applications, and 7b commercial property taxincentive 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 workforceleadership throughout Cook County. For EDAC Members, see Appendix 1. 1 6. I. Analysis of Economic Conditions in Cook CountyA. PEOPLE PopulationIn February, 2004, the Office of Management and Budget in the White House updated itsstatistical area definitions for matters of demographical analysis. (OMB Bulletin No. 04-03) On anational scale, eleven large metropolitan areas were geographically placed within a designatedMetropolitan Statistical Area (MSA). Further more, the same OMB Bulletin designated threeMetropolitan Divisions within the larger MSA for the Chicago Metropolitan region. Theimportance of knowing the relationship between a MSA and the geographically more compactMD comes down to the practical matter of knowing and using the correct demographic data setsthat pertain to the information desired for and within a particular metropolitan area. Finally, theterms Consolidated Metropolitan Statistical Area and Primary Metropolitan Statistical Areahave been retired.Accordingly, Cook County is located within a population-designated census region identified asthe Chicago-Naperville-Joliet, IL-IN-WI Metropolitan Statistical Area (MSA) which is rankednationally 3rd in population, estimated in 2007 as 9,522,879. This MSA is made up of parts ofnorthwestern Indiana and southeastern Wisconsin, which have not previously been included inthe same statistical areas for Cook County. Cook Countys more immediate statistical area isdesignated as a Metropolitan Division (MD) metropolitan division as Chicago. This statisticalarea 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 3,377,674residents or 35% of the more inclusive, Tri-State Metropolitan Statistical Area (MSA) thatincludes 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 formof the Decennial Census in order to provide similar census information on a yearly basis usingsurvey estimates from sampling. The ACS survey estimated that the State of Illinois had12,852,548 residents in 2007. This is a 3.5% (433,255 residents) increase from the population of12,419,293 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 Countys populationstill ranks first as Illinois most populous county with slightly over 40% of Illinois residents. CookCountys estimated 2007 population of 5,285,107 was slightly more than 55% of the Tri-stateMetropolitan Statistical Area. The American Community Survey calculates that there were 1.9million households in Cook County with an average of 2.7 people per household.The populations of the collar counties grew from 2000 to 2007: DeKalbs population increased by16.6%; Du Page had a 2.8% growth; Grundy experienced a 25.6% growth; Kane had the fourthhighest growth with 24.0%; Surprisingly, Kendall County experienced the largest growth with77.5% which has been attributed to outward-migration from both Cook and several inner ringcounties; McHenry grew by 21.5%; and Will, on Cooks southern border, grew by 34.1%. The2007 ACS estimate showed an overall increase in the regions population of 16.6%. Thepercentages of growth were slower in counties such as Du Page and Lake where older housingstock and greater population densities exist. Rapid growth, an unmistakable symptom of urban2 7. sprawl, occurred in the outer ring counties of Kane and Kendall. This was a change from whatwas reflected in the 2000 Decennial Census.The City of Chicagos estimated 2007 population is 2,836,658 according to the ACS. The Cityhas 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 1990when 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 EducationCook 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 severalmajor universities including: DePaul University, Illinois Institute of Technology (IIT), LoyolaUniversity, Northwestern University, Roosevelt University, the University of Chicago, and theUniversity of Illinois at Chicago. These institutions are nationally recognized for theirundergraduate and graduate degree programs. Many have satellite campuses which serve thefurthest reaches of the region. Some of these schools have developed incubator programs thatsustain the growth of technology as well as entrepreneurships. Several of them work with localinstitutions 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 aspiringstudent scientists and engineers. One school, IIT, has a long established chemical engineeringcooperative with Moffit Technical Institute, a division of Corn Products International.There are many other institutions of higher learning in both Cook County and the surroundingMetropolitan Statistical Area. Representative of these are the College of DuPage, DominicanUniversity, East-West University, Elmhurst College, Lewis University, Moraine Valley CommunityCollege, National Louis University, North Central College, North Park College, Northern IllinoisUniversity, Northeastern Illinois University, and Wheaton College. Northern Illinois also has anextensive network of community colleges. These institutions are the front line in providingtechnology based training.There are seven of the nations leading law schools in the region. These include such prestigiousinstitutions as the University of Chicago and Northwestern University. Cook County had over35,000 working lawyers many of whom attended local law schools such as DePaul, IITs ChicagoKent, John Marshall, Loyola, and Northern Illinois.Cook County is a leader in training doctors and health care workers. Cook County boasts fivemajor medical school environments at Loyola, Northwestern University, Rush, the University ofChicago, and the University of Illinois at Chicago. The Illinois Medical District on ChicagosNear-West Side is comprised of one of the worlds largest concentrations of public and privateteaching health care facilities.Lake County hosts the world renowned Rosalind Franklin University of Medicine and Sciencewhich includes the Chicago Medical School. Clearly the breadth and depth of availableeducational opportunities speaks to a regional commitment to providing a high quality, educatedwork force.3 8. An overview of educational achievements In Cook County reveals that the number of peopleaged 25 and older with a bachelors degree or higher was 28.0% in 2007, according to USACounties IN Profile. (See www.usacountiesinprofile.com). This was slightly higher than thenational average of 27%. For persons over 25 years of age, the following counties, which arelocated in the Metropolitan Division, have the following percentage of bachelors degrees:County% of persons over age 25 with bachelors degrees DeKalb26.8% DuPage41.7% Grundy15.2%Kane 27.7% Kendall 25.3% McHenry 27.7% Will25.5%Du Page County led the region with 41.7% of the population over the age of 25 having abachelors 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 DuPage in the region, with 38.6% of the population over the age of 25 having a bachelors degreeor higher. The Metropolitan Area Division, Chicago-Naperville-Joliet, according to ACS 2007 dataestimates, has a population of 8,662,781, of which 31.8% of the adults over 25 have a bachelorsdegree or higher. One can readily surmise that the population of this region as a whole is highlyeducated and skilled. One clear suggestion is that there is incredible willingness to compete inthe national and worldwide economy.Education Attainment data is compiled in Appendix 4. IncomeAs 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 theState 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 PageCounty with $55,371. The real per capita income for the remaining counties in NortheasternIllinois 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 for2007 was $36,714. As may be recalled from earlier CEDS reports, income disparity is calculatedby eighty percent (80%) of the national average per capital income. What this means is that acounty would need to have an adjusted per capita income of less than $29,372 in order to qualifyas an economically distressed area. None of the counties in Northeastern Illinois qualify aseconomically distressed given this standard.Illinois is among the northeastern and Midwestern states that has townships as a political divisionof counties. Within Cook County, Calumet Township with a per capita income of $17,473, CiceroTownship 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. InDeKalb 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 thisstandard. In Lake County, Waukegan Township, with a per capita income of $17,854, and ZionTownship, with a per capita income of $19,195, meet the 80% indices. And finally, in WillCounty, 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 TownshipPer Capita Income Cook CountyAll$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 CountyOswego 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 CountyDorr Township $28,615 McHenry CountyMcHenry 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 $26,431Per 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 Bureaus American Fact Finder, have populations with per capitaincomes that are less than 80% of the nations average,$29,372. We are interested in thisbecause, within fairly economically stable townships, there tend to be concentrated areas ofeconomic hardship within some municipalities that skew any overall averaging, whether percapita, median or mean. The eight percent threshold level is one of the eligibility criteria for an5 10. EDA project grant under part 305 or 308 of Public Law 105-393. A partial list of thosemunicipalities of interest includes:Municipality Per Capita IncomeAlsip $24,647Bellwood$21,447Berwyn$20,974Blue Island $17,407Bridgeview$20,473Burbank $21,738Burnham $18,860Calumet City$19,677Calumet Park$21,527Chicago $23,845Chicago Heights $21,708Chicago ridge $22,493Cicero$12,946Country Club Hills$24,715Crestwood $26,921Dixmoor $14,041Dolton$22,001East Hazel Crest$25,817Ford Heights $8,712Franklin Park $22,152Hanover Park$22,271Harvey$14,096Hodgkins$16,668Hometown$21,015Justice $23,096Lynwood $22,847Lyons $23,931Markham $15,298Maywood $16,927Melrose Park$20,494Merrionette Park$21,240Midlothian$24,147Northlake $20,879Orland Hills$23,996Phoenix $14,491Posen $17,824River Grove $23,139Riverdale $16,164Robbins $16,777Sauk Village$20,543South Chicago $19,497HeightsSteger $21,708Stickney $23,651Stone Park $16,525Summit $14,637Thornton $24,078 6 11. Data from STATS Indiana (www.stats.indiana.edu), a demographics overview published by IndianaUniversity under the auspices of the U.S. Census Bureau, reports that per capita income in theUnited States rose by 18.2% between 1996 and 2006. The data also ranks Illinois as having thefifteenth highest total personal income in the nation in 2007. Illinois neighboring states hadpopulations 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. Illinoisranked second in the region with a per capita personal household income of $41,012, as statedabove.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 MetropolitanDivision, had a 2007 median household income of $47.004. The data indicates that CookCounty has the lowest median income per household in the region. The 2007 median householdincome for the United States was $50,740; for Illinois it was $54,141 or 106.7% of the medianhousehold income in the United States. Illinois ranked 17th out of the 50 states for medianhousehold income in 2007. Cook County households faired slightly better than households inthe rest of the State for median household income, ranking 20th amongst the counties, butsuffered under higher housing, transportation and food costs. See Appendix 5 for Per Capita Income and Median Household Income DataB. Work Employment Analysis Summary, Manufacturing and Service-Providing SectorsIf there is one over-riding theme for Cook County and the regions business / manufacturingenvironment 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 of2007-2008 and now 2009. Hardly a business and barely a family has been left untouched by theravages of the effects of the loss of employment, the loss of a needed paycheck and the loss ofself 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 & SocialAssistance, up +2.7% and Educational Services, up +7.0%. The positive numbersnotwithstanding, in Cook County a litany of losses streamed steadily across from business tounemployment 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%) tolist some of the larger entities.The story of Cook County and its plague of unemployment can be retold to meet the specificcharacteristics of each of the collar counties and beyond, to thenew players, so to speak, in thegrowing federation of counties that now make up the, once presumed economically healthy (ifnot powerful) Northeastern Illinois Regional Planning group. Recently the federal governmenthas 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 workenvironment.In stark contrast to the above observations and sobering reality about the statistically-greatermetropolitan, service-providing jobs accounted for 85% of the employment in Cook County in the2nd 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 theLeisure and Hospitality Industries posted increase in employment: Health Care and SocialAssistance 4,492, Educational Services 3,539, followed by Accommodation and Food Services3,337.Manufacturing SectorCook County accounts for half the manufacturing base of the entire region, employing 229,523 ofthe total 431,251 in a ten county metropolitan area expanded in 2008. (* Although CMAPgenerally uses a eight county planning region, some of the federal governments include Grundyand DeKalb counties, both in Illinois) The five largest manufacturing sectors for Cook County areFabricated Metal manufacturing (40,426), Food manufacturing (33,199), Machinerymanufacturing (20,367), Printing and Related Support Activities (16,905), and ElectricalEquipment, Appliance, and Electrical Component manufacturing (13,794).Expansions in Manufacturing IndustriesChicago was ranked Site Selection Magazines, 2007 - Top Metro Area for New and ExpandedFacilities, with 362 facilities, statewide. Chicago has had the top ranking in this category forthree consecutive years and the sixth time in the last seven years. Metropolitan areas areevaluated according to 28 measures of development performance. The State of Illinois has beenranked within the top ten states for new and expanded capital facilities since 1996.Manufacturing TechnologiesThe Chicago metropolitan region has steadily made inroads to remain competitive in the DigitalCities Survey conducted by the Center of Digital Government. This survey examines citygovernments that have adopted digital technologies to improve the delivery of services to theircitizens.The Illinois Institute of Technology (IIT) has received a $4.5 million grant from EDA to fund thecompletion 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 workspacefor university and company-generated start-ups in the life sciences, biotechnology, software andgreen technology industries. This technology park will not only provide the laboratory and officespace needed but will also provide both entry and high level employment opportunities as thefacilities are constructed and maintained. The incubator will allow local companies to grow at thesame time it attracts businesses to Cook County. Essentially, while fostering the growth of localcompanies, 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 therecognized national leader in Nano-technology and Nano-Fabrication. Northwestern, like otheruniversities, draws on students and leaders in science from the region, nationally, and worldwideto structure a science, math, engineering, and architecture matrix second to none. From thismatrix, secure in twenty-first century dynamics, the entire region benefits.Renowned as a forward thinking enterprise, Chicago Community Ventures has applied for anEDA grant for the construction of a new incubator for mixed-use small companies with a Womenand Minority focus located on Chicagos Near Westside. The project is currently in the designphase and is anticipated to be approximately 45,000 sq. ft. of new construction, housing 20-25traditional non-technology companies.The Village of Skokie is redeveloping a 23 acre industrial site, recently vacated by thepharmaceutical company Pfizer, to house a technology park for the nanotechnology andbiotechnology industries. Forest G5, a developer with vast experience in other parts of thecountry, 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 Illinoisand Cook County are joining in an effort to lend support to this project, as well as with others whoare or soon will be contemplating technology transfers between the units of government Service-Providing SectorService-Providing industries employed 2,986,514 in the ten county region in 2008. 1,894,595were employed in Cook County. The largest service-providing sector in Cook County was HealthCare 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), followedby Health Care and Social Assistance (145,384) and Administrative & Support & WasteManagement (122,669). ClustersClusters are interdependent business entities that are linked through a buyer-supplierrelationship, share common resources and technologies, depend on similar labor pools andsupport institutions, and that rely on special infrastructure. By identifying industry clusters,business recruitment, attraction and development efforts are able to focus on companies thatcomplement existing businesses, enhance land-use decisions and make efficient use of thetransportation network.The Chicago Metropolitan Agency for Planning (CMAP) is presently engaged in acomprehensive cluster study of Cook County, as well as the entire metropolitan area. Thisstudy, when published, will be a valuable strategic, collaborative, public-private approach to thenortheastern Illinois regions economic development as it exists today and, through incorporatingmodels, 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 productiveactivities for regional workforce, transportation, markets and research opportunities. A clusteranalysis and representation approach benefits leaders and planners because such forwardmethodology: 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 regions competitiveness for new capital investments and jobs, which increases the regions 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 ofmodels that are based on its use the clusters and cluster-analysis approach. Theserepresentational models reflect the real-world integrated, demographical and statistical inter-relatedness of person, home, transit, work and quality of life components as an intricatelyinnovative tool at hand for leaders, planners and researchers whose concern is both the regionsshort- 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 ClosuresThe Illinois Department of Employment Securitys Mass Layoff Statistics Program (MLS) recordsthe number of extended mass layoffs in the state. An extended mass layoff is an event affectingmore than 50 employees for more than 30 days. Additionally, it should be noted that an extendedlayoff is one that includes at least 50 workers separated and last more than 30 days. According tothe Bureau of Labor Statistics (BLS), extended layoffs may include workers who were expected tobe recalled sometime later as well as workers who were laid off permanently. Layoffs that last lessthan 30 days are considered to be temporary. These definitions are used universally fordiscussing periods of unemployment.The 2007 unemployment rate for the State of Illinois was 5.1%. It rose to 6.5% in 2008. The 2007annual 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 ratewas 8.6%. These statistics tell a story, but not clearly enough. In February, 2009 alone, Illinoislost 37,200 jobs. Over the last year, Illinois lost 206,300 jobs, a number greater than thepopulation of Aurora, Illinois second largest city.Cook County had an 8.3% unemployment rate in January, 2009. The remaining counties in theregion 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%. Theonly county in the region that had unemployment levels that were less than the national average of8.1% was Du Page with 6.5%. Clearly, the region is in trouble: because the unemployment ratesare 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 higherthan the 5.8% national average. The following table reflects the reality of unemployment in CookCounty.Alsip, village6.9%Lyons, village9.9%Bellwood, village11.0%Lynnwood, village 7.3%Berwyn, city9.8%Markham, city16.5%Berkeley, village 6.5%Matteson, village 7.2%Blue Island, city10.1%Maywood, village 12.6%Broadview, village9.7%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, village11.1%Norridge, village 5.6%Chicago, city 8.8%North Riverside, village5.8%Chicago Heights, city16.2%Olympia Fields, village 6.8%Cicero, town 11.9%Palatine, city6.8%Country Club Hills, city 10.0%Park Forest, village8.8%Crestwood, village6.8%Phoenix, village 12.1%Des Plaines, city 8.0%Posen, village 12.1%Dixmoor, village 20.5%Richton Park, village 8.0%Dolton, village11.0%River Grove, village6.1%East Hazel Crest, village10.1%Riverdale, village 15.1%Elgin, city12.0%Robbins, village 25.4%Elk Grove Village, village6.5%Sauk Village, village 9.8%Evergreen Park, city9.5%Schiller Park, village6.6%Ford Heights, village34.7%South Chicago Hts, village7.4%Forest View, village8.8%South Holland, village9.6%Franklin Park, village8.6%Stickney, village 5.8%Glenwood, village 8.8%Stone Park, village11.1%Harvey, city 13.0%Streamwood, city8.9%Hazel Crest, village9.6%Summit, village 7.3%Hillside, village 8.7%Thornton, village10.2%Hodgkins, village10.1%Tinley Park, city 6.8%Hometown, city6.7%Willow Springs, village 7.5%Justice, village8.7%Worth, village9.1%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 Illinoisunemployment rate grew from 6.3% in January of 2008 to 8.5% in January of 2009. CookCountys 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 EmploymentSecurity (IDES) show that 17 of Cook Countys more populated municipalities had rates at leastone percent higher than the U.S. rate at the time of 5.8%. 11 16. Berwyn9.8%Elk Grove Village 6.5%Calumet City 11.2%Harvey 13.0%Chicago 8.8%Lansing 6.6%Chicago Heights16.2%Maywood12.6%Cicero 11.9%Palatine6.8%Country Club Hills 10.0%Park Forest 8.8%Des Plaines 8.0%South Holland 9.6%Dolton 11.0%Tinley Park 6.8%Elgin12.0%In 2006, before the current economic downturn, the civilian labor force in Cook County wasreasonably robust across most labor sectors at 2,589,791 persons. Of that number, 2,466,076were employed. The labor force grew by a comfortable 45,195 persons to 2,634,986 in 2007. Ofthose 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 wereemployedIn 2008, the Midwest reported more workers (428,283) affected by extended mass layoffs thanany other region in the nation. Also, as part of the Midwest story, transportation equipmentmanufacturing 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 toextended mass layoffs in the country. Among the 369 metropolitan areas, as defined by theCensus, the Chicago-Naperville-Joliet, Ill.-Ind.-Wis. Division reported the highest number of joblosses (19,894) in the fourth quarter of 2008.The 590 layoffs events in Illinois in 2008 layoffs occurred across the economic spectrum. Thegreatest occurrence of layoffs was in the construction sector. These separations accounted for25% of the layoffs with 149 incidents and 22,824 workers involved. Some of these separationscould be related to seasonal employment. The next largest sector to be affected by layoffs wasprofessional and business services with a total of 135 layoffs, or 23% of the total. 29,175employees were affected by these layoffs. This category had the highest percent of separationsin 2008 and accounts for 24% of the total. The third largest sector to be involved wasmanufacturing. The manufacturing sector had 114 layoffs for 19% of the total. These layoffsaffected 22,541 workers. These three sectors accounted for 74,540 jobs, 62% of the total jobsaffected 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 masslayoffs affected 40,364 workers. The number of mass layoffs jumped by 13%; from 187 in 2007to 211 in 2008.Cook County witnessed 165 extended layoffs affecting 33,309 workers in 2008. This numbercan be compared to being nearly equal to the population of Elk Grove Village at 33,548. Theprevious 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 theCity of Chicago. These layoffs affected a total of 20,585 workers. Sixteen (16) of the layoffswere in the construction sector; 15 of the layoffs were in the professional and business services12 17. sector; 14 were in the leisure and hospitality sector; 13 were in the financial sector; and 10 eachaffected the manufacturing and transportation sectors. The leisure and hospitality sector had thegreatest number of workers displaced with a total of 3,673 affected by the downturn in the worldeconomy. The second greatest displacement of workers came in the construction sector. This isto be anticipated due to seasonal conditions. However, the lack of financial backing for newconstruction has further affected unemployment across the region. In conclusion, thedisplacement of workers was across the economic spectrum and affected almost all sectors ofindustry.Unemployment is often a decisive component of the criteria for EDA funding eligibility. Accordingto these criteria, a metropolitan division is eligible for EDA funding when that region hasunemployment levels that are at least one percent greater than the national average forunemployment during the most recent 24-month period for which data are available. Theunemployment rates in Illinois have soared over the last year. Illinois has always been a vibrantstate with a diverse economy. And, indeed, even in the midst of this recession there are robustareas. However, as the months have passed, fewer of these robust areas exist. Illinois hasstatewide levels of unemployment that are continuing to escalate. The regions 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 offoreclosures. This is a real, entangled complication because, as many economic analystsbelieve, the downturn began with fraud in the mortgage sector of banking. Many also believethat any satisfactory recovery will not take hold on the economy as a whole until and unless themortgage 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 escalatedinto the most acute failures of mortgage securities that this nation has ever seen. This statisticalarea has not been immune from this catastrophic phenomenon. It is not within the purview ofthis document to analyze the causes, the tract or the future outlook of foreclosures. In thisregion, the Woodstock Institute has become the primary analyst of foreclosures outside ofmainstream banking. The Woodstock Institute is a resource for gaining an understanding howforeclosure rates influence everything from personal buying decisions, to locating a new place tolive (rent or own or leave), and the interrelatedness of employment, income and transportation tothe housing and mortgage matix. Refer to appendix 8 for Foreclosure data. 13 18. C. TransportationSurface TransportationThe Cook County region is connected by interstate highways that run from coast to coast. It isconnected by passenger and freight rail that bring items from the ports of the Atlantic and Pacificto the Midwest. It is connected by sea through the Port of Chicago located on the great LakeMichigan with its connection to the St. Lawrence Seaway. It is connected by jets at two primaryhub airports that bring passengers and freight to the world. Cook County lies at the center ofmajor transportation corridors for all of these modes of transportation. The Regions Interstate Highway System ConnectionThird in the nation for the most Interstate routes and mileage, Illinois highway system has 23routes 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. Tothe west, it links Illinois with Iowa, Nebraska, Wyoming, Utah, Nevada and California. Interstate90 links Illinois to Indiana, Ohio, Pennsylvania, New York, and Massachusetts to the east. In thewest, it links Illinois to Wisconsin, Minnesota, South Dakota, Wyoming, Montana, Idaho andWashington. Interstate 90 is the nations longest highway with 3,020.54 miles of highway.Interstate 55 begins in Chicago and traverses the State of Illinois, crossing over into Missouri atSt. Louis and heading south through Arkansas, Tennessee, Mississippi, Louisiana beforeterminating in Biloxi, MS.. Interstate 57 is a local highway which begins in Illinois and headssouth ending at the junction of I-55 in Missouri. Interstate 57 is the longest interstate highway inIllinois covering 358 miles. Interstate 94 is 1585.20 miles in length. It connects Illinois withWisconsin, Minnesota, North Dakota, and Montana to the west. It crosses Indiana at the base ofLake Michigan and connects Chicago through Michigan to Detroit to the east. It is clear that theChicago Regions highways intersect at the crossroads of Americas freight and passengermovement. Public or Mass Transportation (RTA: CTA, Metra and Pace)Public transportation for the Chicago Metropolitan area is funded through and administered bythe Regional Transportation Authority (RTA). The provision of transportation is through theMetropolitan Commuter Rail Service (METRA), Chicago Transportation Authority (CTA) andPace Suburban Bus System (PACE) systems. Together these agencies provide an average of 2million rides for commuters each week day.Metra is the regions commuter rail provider that serves 3,700 square miles of northeasternIllinois which includes the six-county area of Cook, DuPage, Kane, Lake, McHenry and Willcounties. Metra serves 100 communities and manages 239 rail stations. It operates 11 differentrail lines from four major downtown terminals: Chicago Union Station; Ogilvie TransportationCenter; Millennium Station; and LaSalle Street Station. Most of the rolling stock is doubledecked train cars. The rail service maintains 495 miles of tracks. Metra operates 702 commutertrains per day over 503 miles of track.The CTA serves 144 rail stations (both commuter rail and L stations) and has more than 12,000posted bus stops. There are 224.1 miles of third rail track and 2,517 bus route miles making it14 19. the second largest rapid transportation system in the United States. The CTA provides 1.8million rides on an average weekday (based on summer 2008 statistics). Its primary coverage isthe City of Chicago, but the agency also serves 40 surrounding suburbs. The population in thecoverage area is 3.9 million. For 2008, total ridership was up. The increase in ridership isdirectly related to the rise in fuel costs and parking costs, especially in Chicagos downtown area.The CTA bus system accounted for 62% of total ridership of 328.2 million rides while the railsystem had 198.1 million rides in 2008. Total ridership for the CTA was 526.3 million rides. Thisis a positive change of 84.2 million in ridership levels from 2004 when total ridership dipped to442.1 million. Additionally, the bulk of this change resulted from a tremendous growth inridership 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 busroutes serve 210 suburban communities of the six-county area. Its service area provides routesthrough a population estimated at 5.2 million. The suburban bus system had a total ridership of39.2 million for the year 2007. PACE manages 11 Park-n-Ride facilities. The bus system serves122 Metra stations and 26 CTA stations. The Vanpool Incentive Program provides groups ofparticipants with an insured and maintained vehicle to commute between home and work. ThePACE program has the 2nd largest vanpool service in the U.S. This program had a ridership levelof 765,656 riders in 700 vanpool groups for 2007. Rail - Freight TransportationThe Chicago Metropolitan Division, which includes Cook County, is the only metropolitan area inNorth America to be served by all six of the U.S. and Canadian class-one railroads. In fact, CookCounty is the place where six of the seven class 1 railroads converge. The Chicago Region isthe rail transportation hub of the United States.The Chicago region has stated to develop a strategy for rail transportation in conjunction with theAssociation 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 RailroadCompany (UP), Metra, the Illinois Department of Transportation, and the Chicago Department ofTransportation.Freight transportation in the Cook County region has a direct effect on the movement of goodsthroughout the United States, into Canada and Mexico. Much of the rail traffic handled in thisregion moves to or from the United States coasts, including to and from every major seaport inthe USA and Canada. The efficiency of the rail yards and track movement in this region isintegral to the economic and security interests of the United States.Cook County also has within its boundaries the Port of Chicago. This is the worlds 3rd largestintermodal port after Hong Kong and Singapore.15 20. Water TransportationThe Port of Chicago and the Illinois Waterway connect Cook County with the St. LawrenceSeaway on the East and the Mississippi River on the west. This offers excellent water access forship and barge transportation. Deep draft commercial ships can reach the Atlantic Oceanthrough the St. Lawrence Seaway. Barge traffic can reach the Gulf of Mexico through the Illinoisand Mississippi Rivers.Additionally, much of Chicagos growth as a major industrial city can be attributed to the I & MCanal which operated from 1845 until the 1920s, connecting Lake Michigan and Bridgeport tothe Illinois River at LaSalle. In 1985, President Regan signed legislation designating the first I &M Canal as a National Historical Corridor. This created the nations first linear park, so to speak,bringing tourism to the region to honor the canalThe Port of Chicago is 36th in the nations ranking of short tons moved. The primary commoditieshandled 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 specialexecutive summary, the Illinois International Port District reported that nearly 30,000 jobs in thestate 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 Lakeswaterways. From Lake Michigan, the Illinois Waterway crosses the state for 357 miles to joinwith the Mississippi River at mile 217. Barges on the Illinois Waterway system moved 44 millionshort tons of commodities during 2005. This is a slight decrease in tonnage from the previousyear. The commodities moved are generally agricultural products, chemicals, coal, constructionmaterials, petroleum and steel.The Chicago Lock, located where the Illinois Waterways Chicago River meets Lake Michigan,served 23,886 pleasure craft and 10,242 commercial boats in 2008 through one chamber. Atotal of 36,256 water vessels passed through this location in 2008. The only other lock tosurpass this number was Hiram M. Chittenden Locks in Seattle, WA, with over 60,000 vesselspassing through its two chambers during 2008.The combination of the Port of Chicago, the Illinois Waterway and other river systems in Illinoishelp to rank the state 7th in the nation for overall short tons. This is tonnage that was eithershipped, received or had traveled intrastate for the purpose of commerce. Short tons moved inthe waterway system during 2007 were 120,970,000. Commercial Air TransportationNo other airport in the world offers more direct connections to destinations around the globe thanOHare International Airport. A major challenge to maintaining the Chicago areas status as thenations transportation center is expansion at OHare. International and domestic traffic at OHarehave recently stagnated because of economic problems in the United States. However, due to theOHare Modernization Program this preeminent airport is positioned to grow when air capacitydemands return. 16 21. OHare acts as a vital economic engine for Chicago and the nation. The City is revitalizingOHare through the OHare Modernization Program. This massive project is meant to keep theregions air transportation system vibrant well into the 21st century. The project not only providesfor a shift in runway alignment but also provides solutions for the regions ground congestionproblems by upgrading road infrastructure, public transportation and suburban access to OHare.A bill allowing the OHare Modernization Program to proceed passed the Illinois Legislature in2003.Chicago is a non-stop global gateway to 76 international and 140 domestic destinations. It hasmore direct destination flights than any other airport in the world. OHare International Airportwas the second busiest airport in the world in 2008. The airport recorded 881,566 operations(takeoffs and landings) in 2008. In comparison, Atlantas Hartsfield-Jackson airport, the busiestairport 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 anincrease of .74% in passenger volume. OHare welcomed a total of 69,353,654 passengers in2008. 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 bestexample 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 ofthe southwest side airport was in question. But, a commitment by the City to revitalize Midwayproved to be one of the nations greatest aviation success stories. That commitment was theMidway Airport Terminal Development project, a plan that would bring the airports landsidecapacity in line with its airside capacity. During the construction of this project, Midwayexperienced record-breaking growth, served millions of passengers and created thousands ofjobs while fueling the local economy.Midway International Airport demonstrated a firm and economy driven reduction in flightoperations and passenger volumes during 2008. This close in airport had 266,341 operations in2008. Midway Airport served 17,345,635 passengers in 2008. This was 10.5% fewerpassengers than in 2007. Midway, at the moment, has excess capacity that will be well utilizedonce the United States economy gains momentum.In 2008, OHare and Midway International Airports handled: A combined passenger volume of 86,699,289 (OHare and Midway) Combined operations of 1,147,907 takeoffs and landings (OHare 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 OHare 17 22. Selected Economic Development ResourcesCook County ResourcesProperty Tax IncentivesUnder the aegis of the Cook County Assessor, Cook County provides various tax incentives thathelp make possible many economic development projects throughout the year. Although theChicago-Cook Business Center is no longer in operation, the Department of Planning andDevelopment continues to provide necessary assistance to the Office of the Assessor in thepromotion and application for industrial (Class 6b), commercial (Class 7a and 7b), combinedcommercial and industrial (Class 8) tax incentives for businesses reoccupying abandonedproperty; undergoing substantial rehabilitation to their current building or constructing a newbuilding and the newly enacted (Class 8a) incentive for properties that meet the characteristics ofClass 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 municipalapproval and no prior area designation (e.g. Enterprise Zone, Special Assessment Area, etc.) isneeded. It is too soon to evaluate the impact or the use of Class 8a, which was ratified by theCounty Board on April 15, 2009.The Presidents Office of Employment Training (POET)The Presidents Office of Employment Training (POET), along with the Cook County WorkforceInvestment Board is committed to assisting the residents of suburban Cook County through theadministration of the federally supported Workforce Investment Act (WIA) program whichprovides residents with employment training, placement, and educational opportunities.Through the WIA, POET offers relevant job training services and programs to assist residents inthe search for employment as well as help them to enhance existing job skills. Labor market andIllinois Skills Match assessment services are also available in the Cook County POET WorkNetCenters.Each year, POET provides important services to more than 6,000 Cook County residentsthrough five WorkNet Centers in Suburban Cook County. POET assists with the placement ofover 1,500 residents in employment annually.The Cook County No Cash Bid ProgramReturning tax delinquent properties to either tax-generating or tax-exempt use is the goal ofCook Countys No Cash Bid Program. Since the late 1980s, thousands of properties have beenpurchased through the program at the request of municipalities and other eligible units ofgovernment with taxing authority. As a result, many taxing bodies have perfected deeds andreturned the properties to the tax rolls or used them for municipal purposes.The Cook County Department of Economic Development (a division of the Planning andDevelopment Department) works in coordination with the offices of the Cook County Assessor,Clerk, Real Estate Division, Revenue Department, States Attorney Office and Treasurer tosupport the Finance Tax Delinquency Subcommittee of the Cook County Board of18 23. Commissioners in processing request packages and purchasing delinquent taxes. For the 2007Scavenger Sale, a biennial auction of tax delinquent properties, the No Cash Bid Programprocessed 423 requested property index numbers (PINs) and placed successful bids on 121PINs. During over-the-counter processing, 92 PINs were reviewed in 2007 and 61 PINs werereviewed in 2008.The No Cash Bid Program staff also provides all Cook County municipalities and taxing bodieswith request package assistance and educational workshops on a variety of No Cash BidProgram topics. In 2007 and 2008, two workshops were presented by the various Cook Countydepartments on completing a request package; filing required reports; using county taxincentives 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 CookCounty and was re-named the Cook County Tax Reactivation Project (CCTRP). CCTRPidentifies 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 supportto petition for tax deed(s) and promotes the deeded properties to developers. They providetechnical 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 Countys Bureau of Community Development & The U.S. Department of Housing and Urban Development FundingThe former Cook County Department of Planning and Development administers needed fundsfor projects throughout suburban Cook Co. as the designated HUD Community DevelopmentBlock Grant (CDBG) Grantee. CDBG dollars are made available to municipal and communitydevelopment 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 threeyears. PY 2009 fund allocations and final project count have not yet been determined.Calendar Year HUD Program Year Number of ProjectsAnnual CDBG(PY)Allocation2005-2006 PY 2006138$13,501,7042006-2007 PY 2007127$10,954,5452007-2008 PY 2008122$10,775,1092008-2009 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 HUDsEmergency Shelter Grant (ESG) and the Home Investment Partnership (HOME). Respectively,these funding sources benefit the homeless through the Continuum of Care homeless agenciesand low- and moderate-income homeowner assistance. A summary of these fund sources forsuburban Cook County is shown in the chart below.19 24. ESG Summary 2006-2008 Calendar YearHUD Program YearNumber of Annual ESG(PY) ProjectsAllocation2005-2006 PY 2006 21 $460,4172006-2007 PY 2007 21 $493,1612007-2008 PY 2008 22 $445,665As a compliment to HOME funds, HUD created the American Dream Down-payment Initiative forfirst 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 thecountys corporate fund and program income from the preceding years activity. What follows isa brief synopsis of the departments HOME and ADDI funds for program year 2006 through2008:Through a period of uncertainty and disquiet, HOME projects diminished. During the same timeHUD continued to allocate HOME funding at a level higher than the demand. This resulted in anunprecedented surplus of unused HOME (and ADDI) available funds. Funds that are typicallyearmarked for ready-to-go projects were safely deposited in several county managed bankaccounts. 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 andstalled housing projects:PY 2006: According to the PY 2006 the Cook County Planning Departments 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 andHOME (and ADDI) programs for suburban Cook County. These programs are instrumental forcommunity development because they fund affordable housing, single family rehabilitation,municipal capital improvements, public service agencies, and homeless shelters and supportiveservices.21 26. State of Illinois ResourcesThe Illinois Department of Commerce and Economic Development (DCEO)The lead agency responsible for improving the competitiveness in Illinois in the global economyis the Illinois Department of Commerce and Economic Opportunity (DCEO). DCEO provides avariety of programs and services that enable growing and prosperous industries, high qualityjobs and world-class communities.Since 2004 DCEOs central mission has been to implement and administer Opportunity Returns,the States 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, OpportunityReturns delivers services on a regional basis and contains tangible, specific actions to makeeach region accessible, marketable, entrepreneurial and attractive to local business within eachof the ten designated regions.Opportunity Returns has managed to stimulate real economic growth in Illinois by attractinginvestment, upgrading worker skills, fostering an innovative, supportive business climate, andcreating thousands of well-paying jobs across the state. DCEO will continue to dedicate the vastmajority 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 fieldthat foster new technologies for an evolving future; transportation and manufacturing to spur thedevelopment of new product design and distribution; advances in the growth of agri-businessand advances in a more dynamic methods that improve the way crops are integrated in the webof local vendor operations that ultimately must meet the challenges of getting food to the tablesof an increasingly urbanized society. The financial commitments that were made throughOpportunity 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 businessesthrive 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 jobtraining, supporting local businesses and entrepreneurship, and expanding public roads andlocal 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 bepointed out that businesses located within established Enterprise Zones are not eligible for theOpportunity Returns program. Although Opportunity Returns is the leading economic arm ofDCEO and is the face of economic development throughout the ten regions, there are manyother programs that DCEO administers.In addition to and in conjunction with Opportunity Returns, DCEOs Bureau of BusinessDevelopment administers a wide array of programs and services designed to help Illinoisbusinesses to thrive in todays economy. This business assistance includes incentives,technology support, access to capital (loans, loan participation, and grants), global marketingexpertise, and employment training for persons with jobs. DCEOs trained staff is committed toforging partnerships with the private sector in an effort to build upon Illinois reputation as a worldclass center for business and industry. This includes a strong emphasis on programs designedto provide small businesses particularly minority and female entrepreneurs with theresources they need to succeed and grow their business opportunities.22 27. Following is a brief summary of DCEOs FY 2008 and FY 2009 budget:______________________________________________________________________ FY 2008 Appropriation $567,635,000Adjusted to: $646,428,000 FY 2009 Appropriation $591,857,000 Adjustment after the close of the Fiscal Year (June 30th)DCEO ProgramsUnder the auspices of Opportunity Returns, the list of support programs for businesses andindividuals in Illinois that DCEO provides funding for is extensive, if not exhaustive. Thefollowing 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 IndustrialCompetitiveness, Energy and Alternative Energy initiatives and several Community Developmentgrants.The current adjustments in the national and world economy have not prevented DCEOs forwardthinking 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 beingdeveloped in advance of the receipt of the federal re-stabilization dollars. Illinois Good JobsFirst, a capitalization cooperation of the federal government and DCEO, has been around sincethe early part of the current decade. However, many programs aimed at workforce revitalizationare receiving meaningful and substantial funding from Washington to promote jobs, businesscreation and retention, and education for new and extent technology growth.These state resources will become more recognizable as we go forward with the re-stimulatingthe local, suburban Cook County living and working environment. DCEOs access and, in turn,making accessible needed funding is another tool, so to speak, to put into practice for thenbenefit of our constituent property owners, business-persons, worker- laborers, and studentswhose 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.netwww.commerce.state.il.us/dceowww.dsireusa.org23 28. The Office of the State TreasurerIn an effort to strengthen home sales that have declined as a result of dubious and deceitfulpractices in mortgage-lending and the dual calamity of loss of confidence in- and the tighteningup of- home buyer credit availability, the State Treasure has began a new initiative: FinallyHome. This program, aimed at mortgage lenders, offers a 10% mortgage guarantee, providinglenders with extra security on mortgages contemplated by borderline borrowers. Theseborderline borrowers are mortgage-ready but need this incentive to secure a substantial homeloan. According to documentation prepared for by the Treasurer, Finally Home offers severalexceptional program benefits that should be attractive to both lenders and borrowers. Here are afew 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 ratemortgage (ARM) reset or other financial hardships; and Is available to low- to moderate-income borrowers who may be unable to obtain aconventional mortgage due to bruised credit, high debt or other factors. Lastly, Finally Home provides a viable and secure alternative to predatory loans that oftenlead to foreclosure and spiraling credit problems.Citation and reference for this section: www.treasurer.il.gov/finallyhome24 29. Federal ResourcesBonds, Loans, and Grant Economic & Community Development Stimulus ProgramsAlthough the economy continues to be weak, the Cook County Department is committed toenhance 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 andbusiness needs for government assistance have been exposed, it became incumbent on thedepartment to proactively scrutinize as many programs and service funding sources as relevantto meet the economic challenges of the county and region. We redefine challenges asopportunities and searched for meaningful available funds. To be meaningful, these neededsources must bring substantial dollars and must be immediately accessible.The attached chart* is a summation of the departments efforts in this regard. It must beunderstood that, although this list of funding sources we will use is comprehensive, it is notexhaustive. As we continue to move forward to put these initiatives into practice, the search fornew, substantial funding sources also remains an on-going activity. The Cook CountyDepartment of Planning and Economic Development is eager to employ these new tools, perfectthe existing, tried-and-tested ones, while growing the capability to do more in order to assist ourtowns, villages, and cities as well as existing and potential/new business and industries with thetype of economic stimuli they deserve from their own hard earned tax dollars.Build America BondsFinally, the Department of Planning and Development has begun deliberation concerning theBuild America Bond program as another potential funding source.Briefly, the American Recovery and Reinvestment Act of 2009 creates the new Build AmericaBond program, which authorizes state and local governments to issue Build America Bonds astaxable bonds in 2009 and 2010 to finance any capital expenditures for which they otherwisecould issue tax-exempt governmental bonds. State and local governments receive a directfederal subsidy payment for a portion of their borrowing costs on Build America Bonds equal to35 percent of the total coupon interest paid to investors.This new program is intended to assist state and local governments in financing capital projectsat lower borrowing costs and to stimulate the economy and create jobs. Currently, Cook Countyis utilizing the Build America Bond Programs Facilities Bonds for its Capital Facilities Project. *See Sources of Funding chart below.How Build America Bonds WorkBuild 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 localgovernments that will give them access to the conventional corporate debt markets. At theelection of the state and local governments, the Treasury Department will make a direct paymentto the state or local governmental issuer in an amount equal to 35 percent of the interestpayment on the Build America Bonds. As a result of this federal subsidy payment, state andlocal governments will have lower net borrowing costs and be able to reach more sources ofborrowing than with more traditional tax-exempt or tax credit bonds. For example, if a state orlocal government were to issue Build America Bonds at a 10 percent taxable interest rate, theTreasury Department would make a payment directly to the government of 3.5 percent of that25 30. interest, and the governments net borrowing cost would thus be only 6.5 percent on a bond thatactually pays 10 percent interest.This feature will make Build America Bonds attractive to a broader group of investors, andtherefore 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 beenabout 20 percent lower than taxable interest rates. They should be attractive to investors withoutregard to their tax status or income tax bracket (e.g., pension funds and other tax-exemptinvestors, investors in low tax brackets, and foreign investors).Citation and reference for this section: www.treas.gov/press/release/g81.htmCOOK COUNTY BUREAU OF COMMUNITY DEVELOPMENTDivision of Economic DevelopmentSOURCES of FUNDING 2009 & FY 2010 1Funding Funding ProgramFundingProgram Description Estimated Source Type 2 Funds 3HUD CDBGThe Community Development BlockPY 2010 allocationGrant (CDBG) program is a flexiblehas not beenprogram that provides communities with determinedresources to address a wide range ofunique community development needs.FGBeginning in 1974, the CDBG program isone of the longest continuously runprograms at HUD. The CDBG programprovides annual grants on a formula basisto 1180 general units of local governmentand States.4HUD HOMEHOME provides formula grants to States Not yetand localities that communities use-often determined 5in partnership with local nonprofit groups-to fund a wide range of activities thatFGbuild, buy, and/or rehabilitate affordablehousing for rent or homeownership orprovide direct rental assistance to low-income people.HUD / EDA Section 108 LoanCDBG entitlement communities are Application Guaranteeeligible to apply for assistance through the Submitted forsection 108 loan guarantee program. $25,000,000 6CDBG non-entitlement communities mayalso apply, provided their State agrees to Lpledge the CDBG funds necessary tosecure the loan. Applicants may receive aloan guarantee directly or designateanother public entity, such as an industrialdevelopment authority, to carry out theirSection 108 assisted project.EDAAmerican Topromotecomprehensive,$80 million Pre- Recovery Program entrepreneurial and innovation-based stimulus for theeconomic development efforts to enhance Chicago region under thethe competitiveness of regions, resulting American Recovery Gin increased private investment andand Reinvestmenthigher-skill, higher-wage jobs in regions Act of 2009that have experienced sudden and severe26 31. economic dislocation and job loss due tocorporate restructuring to meet thechallenges of the drastic downturn in thenational and regional economies. US DOEEnergy EfficiencyThe program provides federal grants to$12.6 million has and Conservation units of local government to reducebeen allocated toenergy use of fossil fuel emissions and for Cook County for Block Grantimprovements in energy efficiency. Theeligible projects.(EECBG)FG program is administered by the Office ofWeatherization and IntergovernmentalPrograms in the DOE.EPA1.Target Funding is an environmental assessment Grants are for up Brownfield of a Brownfield site. TBAs are conductedto $200,000 perby EPA at no cost to the recipient site. $30 million Assessment (TBA) applicant. The TBA evaluates the risk (est) may beposed by the site and can identify allocated for EPAstrategies that promote a brownfields Region 5. Grevitalization and the potential benefits tothe community. The TBA recipientestablishes the goals and schedule of theassessment by participating at all levels ofplanning, assessment implementation andclose-out review, comments and draftreports.7 2.Revolving Loan This fund makes available up to Up to $1,000,000Fund $1,000,000 per eligible entity (recipientper eligible entityprovides a 20% match) to: 1.Capitalize arevolving loan fund; at least 60% of fundsmust be used to capitalize a loan pool. 2. RL Make one or more loans to an eligibleentity, site owner, site developer, oranother person. 3. Make grants (up to40% 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 fundUp to $200,000 per eligible entities or non-profits to clean upsite. EPA maysites they own. EPA may limit thelimit the numbernumber of sites eligible for funding eachof eligible sites.year. Funds may be used to address sites Gcontaminated by petroleum and hazardoussubstances, pollutants, or contaminants.Cleanup grants require a 20% cost share;grantee share may be in-kind and excludesadministrative costs. Performance periodis up to three years.7ARRARecovery Zone An ARRA created $10 billion taxable $131,000,000AmericaEconomic issuance capacity government bond whoseRevitalizationproceeds must be used in designated Development Bond Recovery Zones, generally areas withand Recovery Act of 2009 (RZEDB)significant poverty,accelerated akaunemployment, and high foreclosure rates.BuildBCertain restrictions apply. HoweverAmerica community recovery is the operative Bondsdirected use of the bond proceeds.27 32. (BaBs)Recovery ZoneAn ARRA authorized $15 billion tax- $196,000,000 Facility Bondexempt 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 tocounties and large municipalities based on relatively high unemployment rates.NOTES:1In general, HUD Funds are administered in accordance to the federal governments fiscal calendar, October 1 toSeptember 30. The fiscal year is referred to as the Program Year or PY.2FG = Formula Grant; CG = Competitive Grant; G = Grant; L = Loan; RL = Revolving Loan; B = Bonds3Not all funding amounts have been established.4Cook County Planning & Development is the countys CDBG agent, the Grantee, for HUD entitlements. As such, theCDBG program allocates grants to develop sustainable communities by providing funds for decent housing, a suitableliving environment, and opportunities to expand economic opportunities for low- and moderate-income persons and inunderserved, economically underdeveloped communities.5HOME fund availability does not conform to HUDs fiscal year calendar. Funds are used on an on-going basis.6The Section 108 Loan Guarantee Program allows for up to 10 times the CDBG grantees annual allocation.7EPA program narratives are from EPA Region 5 Brownfields Revitalization, Documents & Agreements Branchbrochures, October, 2007 & 2009. 28 33. VISION for Economic DevelopmentVision StatementThe Cook County and Chicago Metropolitan Region envisions the cultivation of a diverseeconomic base which embraces environmental responsibility and efficient operating standardsfor fiscal stability, growth and sustainability of the local economy and an enhanced quality of life.Despite the historical breadth of the regions industrial complex, the Cook County and ChicagoMetropolitan Region, is experiencing precipitous fiscal decline once prevalent in other rust beltareas whose local economies had been dependent on one or two industries. The Region cannotafford the prospect of further erosion to the local economy and will therefore endeavor tosupplement the market and geographic forces which formed an initial nexus of industry withinitiatives aimed at calibrating and invigorating the local economy to form a new nexus ofindustry.The Cook County and Chicago Metropolitan Region will need to examine and assist clusters ofindustries and individual businesses which maintain or have potential for high wages, highemployment numbers, high employment growth, concentration in various industries, aid theoperation of business operations, in general, as well as, those with stable indices and otherdesirable factors, which can be leveraged for regional economic revitalization.The Cook County Region will assume a prominent role in the catalyzing the direct synergybetween industries which include advanced materials, advanced manufacturing, greenmanufacturing, agribusiness, nanotechnology, plastics, mechanical, electrical, chemical andbiomedical/biotech industries. Strategies for local mitigation of effects of the global downturn onthe regions financial, insurance and real estate industries will be sought as well as strategies forreestablishment. The Regions business and professional service industries will be positionedas vehicles for the restructuring of industrial practices to incorporate the utilization ofenvironmental and business sustainability measures, such as operational processes whichlessen or eliminate negative environmental effects and management which functions accordingto current efficiency standards.Transportation, logistics and warehousing industries will be augmented through a revampedpromotion of the Region as a go to location for these services, due to the geographic centralityof the Region in the United States in addition to the upgrading of the infrastructure of theseindustrial networks for enhanced local, national and international business and consumeroperations.Development of the Regions industries and workforce will be undertaken through economicdevelopment planning, research, assistance in the development of products and services, jobtraining and employment. Economic development planning will be conducted to assess thefeasibility and determine strategies and initiatives for building the capacity of industry andcreation 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 asthe marketing of the region and components of the local economic system, planning for industrialpark development and workforce development.Further research will be performed on initiatives selected to foster revitalization of the localeconomy. Alternatives will include research enabled through partnerships between universities 29 34. and other research institutions of higher learning with business, for transfers of technologyemploying such techniques as nanotechnology to develop and commercialize inventions andproduct innovations and designs.The Region will assess for endorsement and encouragement, the adoption of innovations inindustrial production such as advanced manufacturing, green manufacturing production/productsand lean manufacturing principles and service innovations which entail such methods as leanoperating principles.The Region will assist in the leveraging of financial industry investment, through various fiscalmechanisms, into the matrix of economic development strategies and initiatives.Street, site, communication and other types of infrastructure improvements will be performed asnecessary logistical upgrades to compliment financial incentives for business development inCook County Region.It is essential that the regions job training programs also be retrofitted for diversity in skill trainingareas, to meet the needs of todays stable and growth industries and that training be accessibleto all and diverse populations. Quality job training will be made available to all with the aptitudefor various training programs.The Cook County Region will adopt policies to aggressively encourage and diversify the hiring ofskilled, work-ready individuals in populations with high rates of unemployment. The health of thelocal economy is bolstered by widespread employment dispersed throughout populations.The Cook County Region will conduct training and hiring programs with an axiom attuned to thecyclical and interrelated nature of the economy: the more accessible, widespread, balanced andequitable training and hiring opportunities are to diverse populations, the more likely individualswill be discovered whose competencies can be developed to bring added value to industry andthe economy e.g., greater productivity, inventions, innovations, etc.The Cook County Region will foster a diverse partnership of entities to undertake these initiativesfor redevelopment of the local economy which will include business, government, education andother interests.30 35. The 2009 Action Plan for Economic DevelopmentThe regional Economic Development Strategy outlines a vision for the region to be aninternationally competitive, inclusive and dynamic economy; a great place to live and conductbusiness; a place fostering innovation, where skilled people work in a high quality livingenvironment.The Cook County Economic Development Advisory Council (EDAC) serves as an advisory bodythat reviews and makes recommendations regarding major economic development policy issuesto the Cook County Board President and the Cook County Department of Planning through itsEconomic Development unit. The Cook County EDC is made up of leading local, county andstate officials charged with major responsibilities related to business development, retention, andrecruitment, job development and retention and economic policy as well as representatives fromeconomic development non-profit organizations and the local business community.Because the Cook County EDAC represents a County of more than 5.2 million residents and thecentral economic engine for the entire eight-county region of northeast Illinois, initiativesdeveloped by this body have a profound and lasting impact on the entire region.With that, this most recently developed Comprehensive Economic Development Strategy(CEDS) has been developed with input and from the perspective of key representatives fromtheir entire eight-county Northeast Illinois region.This CEDS is also being developed in a manner that compliments the general stated goals of theState of Illinois through the Illinois Department of Commerce and Economic Opportunity, theDepartment of Workforce Development and Employment Security and the Governor of the Stateof Illinois.The plan is provides a strategic vision for economic development in the region centered by CookCounty. Ideally, the areas economic development and workforce development agencies will usethe plan as a guide in their efforts to retain and grow businesses and jobs; develop new marketopportunities; and build the regions international reputation as a leader in green business andother new market business development.The plans detailed segment on Goals calls for a regional focus on *Adopting a cooperative regional approach to business development and retentionissues *Continuing to promote a regional shift from brown to green manufacturing *Developing effective business incubators *Leveraging our extraordinary access to freight and multi-modal transportation *Support planning and development for new public transit lines *Support planning and development for a new high speed rail corridor *Promoting our regions highly skilled workforce *Promoting our regions diversity while improving equal access to jobs and contracts *Promoting our regions commitment to strong infrastructure *Guarding against harmful international trade impactsThese priorities represent an ambitious blue print and a plan of action for the region in the nextseveral years.31 36. Regional Objectives This section broadly describes the areas of priority foreconomic development projects in Cook County for the foreseeable future. Thesegoals and objectives provide a general framework for the types of businessretention and development efforts, job creation and funding priorities that CookCounty will look to develop.1) Facilitate and standardize a regional approach to business recruitment and retentionthat involves the cooperation of business development, economic development, retentionand support agencies across all levels of government, private sector and non-profitorganizations. By developing repeatable procedures that bring together a cadre oforganizations including government agencies, industry support groups, suppliers, and otherinterested stake holders to draw together the best possible package of recruitment or retentionincentives and other resources available to ensure that our region maximizes each and everyopportunity to grow or retain jobs when the need arises.2) Facilitate a regional shift in our focus away from brown manufacturing anddevelopment to green manufacturing and development. Historically, the Cook County regionhas been noted for its highly skilled industrial job base in the steel industry, electronics and othermetal and machine-oriented arenas. New market opportunities tend to require less of a focus inthose areas, with trends moving in the direction of natural resource conservation, carbonreduction and organic production.3) Develop effective business incubator programs for suburban communities in ourregion in order to attract the new market business opportunities of the future. In pastdecades, high-tech and high growth businesses flocked to areas like Silicon Valley in Californiaand the Research Triangle in North Carolina in order to take advantage of a cooperative andnurturing atmosphere created by local communities willing to invest resources to providereasonably priced or subsidized facilities, legal council, accounting, marketing, business plandevelopment, banking and other professional services that many new businesses need but mightnot be able to access or afford.4) Leverage our regions outstanding access to freight and multi-modal transportation asa major factor in attracting businesses. The recent acquisition of the EJ&E Rail Line byCanadian National (CN) pointed up the regional importance of rail transportation and rail traffic inthe Cook County region. Economic interest involving the potential for expanded intermodal andlogistic job opportunities in the southern part of Cook County came face-to-face with thecompeting interests of north and northwest suburban homeowners concerned about the publicsafety, traffic, noise and other core quality of life issues.At the end of the day, the federal government approved the acquisition, siding with theeconomic interests favored by c