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Economic Development and Employment
Economic Development & Employment
We will connect local businesses to the resources they need to expand and prosper, train a skilled and competitive workforce, and improve quality of life through more inviting and thriving commercial corridors.
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According to the 2016 American Community Survey (ACS), the unemployment rate for the Back of the Yards (New City) community is 20%. Some of the economic goals from the community visioning sessions reflected the need for expanding employment opportunities and workforce training programs for youth and adults alike.
Efforts focused on economic development help to create jobs, retain and expand businesses, increase the tax base, and ultimately lead to an improved quality of life. Community members want to leverage 47th street as a commercial corridor that expands entrepreneurial opportunities for small and minority-owned businesses.
Back of the Yards’ vibrant local economy is anchored by the Stockyards Industrial Corridor (Special Service Area #13), one of the largest industrial corridors in the city by both area and number of employees. Although manufacturing consists of 9% of all businesses in Back of the Yards, it employs almost 30% of all employees in the area. Wholesale trade and retail trade round up the top three largest employment sectors in the community. Existing firms and future employers can play a role in connecting living wage employment and workforce development opportunities to local residents, especially those without a college education.
The 47th Street and Ashland Avenue commercial strips (Special Service Area #10) are hubs for economic activity with many businesses locally owned. Allowing local businesses to grow and entrepreneurship to flourish will help to stabilize and enhance the Back of the Yards economic circumstances for its residents and stakeholders. Both of these corridors are eligible for Chicago’s Neighborhood Opportunity Fund, which means that business and property owners can apply for grants that will pay for development or rehabilitation projects (See Figure 8).
There are eight Tax Increment Financing (TIF) Districts in the New City Community Area (Figure 6). The TIF program in Chicago is a tool meant to promote public and private investment in areas that exhibit excessive vacancies, inadequate utilities, lack of community planning, dilapidation, or any other blighting factor. The current property tax amount generated is set as a base and any property taxes generated from an increase in property values can be used by the TIF district to fund redevelopment projects. Figure X on the following page shows these TIF districts and can be used to strategically plan redevelopment projects throughout the Back of the Yards Community.
The strategies that follow will help bridge the poverty gap and connect residents to meaningful employment for the Back of the Yards population. They also focus on generating community wealth by encouraging business ownership and reinforcing relationships between organizations and programs that serve to promote entrepreneurship, local businesses, beautify commercial corridors, and develop the local workforce.
Economic Development Maps
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Figure 6: Tax Increment Financing (TIF) Districts Archer/Western TIF 35th/Halsted Stockyards Annex Stockyards Southeast Quadrant 47th/Halsted 47th/Ashland 63rd/Ashland Englewood Neighborhood Back of the Yards Neighborhood Council Office 1
Figure 7: Special Service Areas (SSA) SSA #10 - Back of the Yards SSA #13 - Stockyards
Figure 8: Neighborhood Opportunity Corridors
Eligible Commercial Corridors Priority Investment Corridors
Resident Vision Ideas
• Provide youth with job opportunities • Increase number of jobs in the community • Offer free job training for adults • Increase economic development for small and minorityowned businesses • Utilize Ashland Ave. railroad yard south of Pershing Road and the central manufacturing district to create more job opportunities • Plan a Small Business Day (on 47th St.) to encourage people to shop within the community • Increase job opportunities • Provide new business grants for people that live in the community
Fiesta Back of the Yards. Source: Sonya Eldridge.
24,436 employed in 1970 14,832 employed in 2015 8,763 manufacturing jobs in 1970 1,849 manufacturing jobs in 2015
Stockyards Industrial Corridor anchors BOTY economy providing 30% of all employees in the community area
Source: U.S. Census Bureau, ESRI Business Analyst
Objectives
Objective 1
Pedestrian experience is improved through the implementation of continuous streetscape, high levels of window transparency, entrances to shops placed on sidewalks, and parking located behind buildings with the elimination of unnecessary curb cuts and drive-thrus. Comprehensive and creative branding can be developed with the help of local artists and can add to the corridors’ identity.
Objective 2 Objective 3
Attract new and diverse businesses which will offer a wider range of goods and services and will have a positive impact on community development and wellbeing.
Although Back of the Yards has a relatively stable occupancy rate within its commercial corridors, there is still room to attract businesses that provide goods and services that are not currently found in Back of the Yards. Two notable burgeoning businesses are Rumi Spice and Back of the Yards Coffeehouse. On June 1, 2018, they were recognized in the top ten FedEx Small Business Grant contest winning the grand prize of $25,000 and $7,500 in FedEx Office print and business services and the bronze prize of $7,500 and $1,000 in FedEx Office print and business services respectively.
Developing a direct line of communication between employers, workforce development agencies, and Back of the Yards residents will increase access to more wellpaying jobs throughout the region and enhance the tax base locally. Back of the Yards leadership can also facilitate a relationship between local high schools, workforce agencies, and employers to ensure the next generation is worker-ready.
Objectives
Case Study:
City Colleges’ Short-Term Credit Programs and Career and Technical Education (CTE) Certificate Programs
In their CTE program, the City Colleges of Chicago system offers a range of certification programs to prepare students for high-demand employment areas including manufacturing, health sciences, information technology, and human services. Students may choose between hundreds of courses offered at City Colleges campuses per semester, and can pursue basic or advanced certification or Associate’s Degrees. City Colleges also offers a variety of short-term credit programs which allow students to pursue industry-specific knowledge and certifications, such as welding, EMT certification, or CDL licensure. Additionally, City Colleges offers GED courses, English as a Second Language courses, and other continuing education opportunities for adult learners.
Objective 4
Encouraging a healthy entrepreneurship environment will help strengthen the diversity of the Back of the Yards’ commercial corridors. Startups and current businesses alike can benefit from additional support and resources to work towards maximizing their potential. Currently, the Back of the Yards Neighborhood Council’s Neighborhood Business Development Center assists business owners with obtaining sources of funding, permit applications, site selection, marketing assistance, networking opportunities, and more.
(Source: City Colleges of Chicago.)
Case Study:
Advancing the Development of Minority Entrepreneurship (ADME)
The ADME is a community investment program administered by the Illinois Department of Commerce to strengthen Illinois’ start-up and small business ecosystem by tapping into the potential of minority business owners and entrepreneurs. The program is in its first year with a geographic focus in Peoria, Rockford and Chicago with the goal of expanding statewide.
(Source: Illinois Department of Commerce and Economic Opportunity.)
Rainbow Clothing Store. Source: Great Cities Institute, 2018.
Objective 1
Strategies
Enhance the aesthetic and physical character of Back of the Yards’ main commercial corridors (47th Street and Ashland Avenue) and develop a comprehensive branding strategy to draw in residents and visitors to the neighborhood’s commercial core. a. Develop a place-making and identity campaign for beautification of commercial corridors in Back of the Yards. Lead Organization(s)
b. Work with property owners and local artists to temporarily re-purpose/re-activate vacant storefronts to attract interested tenants.
c. Work in collaboration with business owners, residents and Special Service Area 10 to brainstorm projects and overall theme.
d. Identify best practices for developing a consistent and uniform corridor identity.
e. Identify additional resources (i.e. grants, TIF, SSA, Small Business Improvement Fund (SBIF) and aldermanic menu money) to support development of branding campaign projects and façade improvement/business renovation projects to improve commercial spaces.
BYNC, Matanky Realty, The Plant Chicago
Objective 2 Attract new and diverse businesses which will offer a wider range of goods and services. a. Identify strongest nodes in BOTY commercial corridors to build upon.
Strategies b. Develop temporary beautification projects geared toward activation and repurposing of vacant spaces. c. Focus efforts on attracting businesses offering goods and services that don’t currently exist or are limited in Back of the Yards using retail scan/leakage and surplus data. d. Identify aspiring entrepreneurs in the area to assist with start-up activities.
e. Develop new relationships with developers, commercial property owners and successful business owners looking to improve existing properties for expansion and attraction of new and existing businesses. Lead Organization(s)
BYNC, Matanky Realty, The Plant Chicago
Partnering Organization(s)
BYNC, Chicago Department of Business Affairs and Consumer Protection, Chicago Department of Planning and Development, SSA 10, Area Businesses, Elected Officials, Commercial Property Owners
Partnering Organization(s)
BYNC, Local Businesses, Developers, Real Estate Agents, Property Owners, Local Parishes and Organizations
Objective 3
Strategies
a. Facilitate relationships between local high schools and workforce agencies to offer job training programs at schools (afterschool programs).
b. Develop a streamlined communication channel between employers and local agencies to create a jobs pipeline.
c. Form connections with workforce agencies citywide and with local employers to hire, train and invest in Back of the Yards’ residents.
BYNC, Matanky Realty, The Plant Chicago
d. Connect residents to more local, living wage jobs (i.e. Stockyards). Partnering Organization(s)
BYNC, Chicago Cook Workforce Partnership, National Latino Education Institute, City Colleges of Chicago, local high schools, City of Chicago Department of Family and Support Services, Illinois Department of Employment Security local parishes and organizations.
Objective 4
Strategies
Connect Back of the Yards’ existing and aspiring entrepreneurs to training, marketing, resource opportunities, and each other to help grow their businesses. a. Partner with city, state and county leaders in small business development to offer ongoing training and support for small business owners. b. Provide businesses with ongoing technical assistance support for technology upgrades and grant applications. c. Facilitate connections between workforce development agencies to offer certifications to employers for free or at low-cost/ Help businesses navigate city, state, county and federally-funded programs for resources. d. Connect local small business owners to each other through business to business networking events. e. Increase access to capital for area small businesses through the development of relationships with traditional and nonprofit lenders. Lead Organization(s) Partnering Organization(s)
BYNC, Matanky Realty, The Plant Chicago
Back of the Yards Neighborhood Council, local businesses, Chicago Cook Workforce Partnership, City of Chicago Business Affairs and Consumer Protection, City of Chicago Department of Planning and Development
Cornell Square Park. Source: The Gate News, 2011.
