Last Saturday the Chicago Tribune reported that the City of Chicago would be changing its plans for the upcoming entertainment district that includes the future DePaul arena. The city will be shifting the $33 million in TIF funds originally allocated to land acquisition for the arena to help pay for land costs for the new Marriott, which is planned to be part of the same entertainment district.
The change is due to a failure on the city’s part to assemble key parcels of land near McCormick place from construction executive James McHugh. The Metropolitan Pier and Exposition Authority will cover the cost of the $33 million in TIF funds being redirected.
Using TIF funds in the arena project has been controversial at DePaul, spurring opposition from the student led Coalition for an Alternatively Funded Arena (CAFA). While CAFA’s stance against the arena was not limited to the use of TIF funds, it was a major focal point in their objection to the stadium.
“TIF money is completely out of the arena construction project,” Casey Clemmons, the president of DePaul’s Student Government Association, said. “DePaul has no role in the Marriott project.”
Members of CAFA however disagree, arguing that without the DePaul arena the hotel would not be built. However, they do support getting the TIF funds redirected away from the arena.
“It’s a tremendous step forward,” Shaza Loutfi, a member of CAFA and an SGA senator, said. “It technically is still the same project though.”
The DePaul arena and the Marriott are even going to be connected through a sky bridge, Jonathan Slater, another member of CAFA, pointed out. According to Slater the coalition’s position still has not changed and they continue to plan on meeting with Fr. Holtschneider. The will also continue to try to push a resolution through SGA to show student support against the building of the new arena.
“This is a huge decision for our university,” Loutfi said.
The original plan for the complex had $55 million in TIF funds earmarked to help pay for the both the arena and hotel, the new plan allocates all of the money to the new Marriott. Under the new the plan the MPEA will lessen its stake in the hotel, effectively freeing up $25 million for the organization to shift to the arena project. The new plan will leave the MPEA with an additional $8 million cost to bear while DePaul will stay at its original $70 million contribution.
According to Deputy Mayor Steve Koch, in an interview with the Chicago Tribune, it made more sense to use the TIF funds for the Marriott so the project could begin. Originally the city had hoped that land acquisition would be over by the end of 2013, but now are unsure how long litigation with McHugh will last.
“The motives behind moving the money were murky,” Loutfi said.
The city maintains that even with the change in plans the price of the project will not increase, and that they will not use more tax dollars on the project. Part of the reason for this is that they hope to attract a developer to invest in the project.
The new plan calls for relocating the 1,200 room Marriott from the contested land to a location on Prairie Avenue just north of McCormick Place.
It also calls for decoupling the 500 room boutique hotel from the southeast corner of the arena. If the boutique hotel is built, it will be on the land that is currently contested.