The city of Chicago is set to acquire seven properties near the proposed $500 million Obama Presidential Center from one of its housing partners in an effort to prevent the displacement of existing residents.
City Council was expected to vote in favor of an ordinance authorizing the city to acquire the interests in the properties, most of which are vacant lots, according to Crain’s.
Community Initiatives Inc. purchased the properties for more than $3 million in an October auction. These seven properties and eight others previously belonged to the Rev. Leon Finney’s nonprofit management company Woodlawn Community Development, which filed for bankruptcy in October 2018 amid mounting debt and allegations of fraud.
“The city wanted to make sure it could ensure the fate and affordability of the lots, consistent with the fair and equitable development of the neighborhood,” Department of Housing spokesman Don Terry said in an email.
When the city approached Community Initiatives about acquiring the interest in the properties, it didn’t specifically mention real estate pressure from the Obama Presidential Center, but “it’s no secret there’s a desire to try to have some influence over the planning process and what’s happening with vacant land in Woodlawn,” director Jonah Hess told Crain’s.
Despite its unclear construction timeline, the Obama Presidential Center is already drawn out-of-town investors to nearby neighborhoods, including Woodlawn. This activity is prompting gentrification concerns among housing advocates and residents who worry it will encourage home prices to skyrocket. The Real Deal previously reported that the Obama Presidential Center has attracted multifamily investors from across the U.S. to buy land in Woodlawn.
About 30 aldermen support an ordinance that would allow for the creation of a community benefits agreement for the Obama Presidential Center.
The auctioned-off properties would become part of the city’s Troubled Buildings Initiative in which turns vacant and abandoned structures into affordable housing. [Crain’s] — Brianna Kelly