CHICAGO--(BUSINESS WIRE)--U.S. Bank, lead bank of U.S. Bancorp (NYSE: USB), along with state and city officials, today announced that financing is in place, and site and infrastructure work has begun on the first phase of a retail development for Pullman Park, providing 1,000 permanent and 700 construction jobs, expanding access to groceries and basic retail goods and services, and increasing the tax base on 52 acres of vacant, former industrial land on Chicago’s South Side.
Also today, the State of Illinois announced a $4.6 million grant for the second phase of road and infrastructure improvements on Woodlawn/Doty Avenue between 103rd Street and 106th Street. The infrastructure upgrades, assisted with Ike disaster recovery funds, will strengthen and elevate the road by 3-4 feet, which has continued to deteriorate after flooding in 2008. The Ike funds will also support substantial sewer and water main improvements, which coupled with the road upgrades, will serve to mitigate future flooding of this stretch of road leading up to the retail site.
“This funding will help Pullman Park make much-needed repairs to flood-damaged roads and water mains,” said Governor Pat Quinn. “Projects like these build on our commitment to restoring communities, putting people to work and paving the way for future economic growth.”
In addition, Richard Davis, chairman, president and chief executive officer of U.S. Bancorp, announced the donation of 2.3 acres of U.S. Bank land to the City of Chicago for the re-routing of Doty Road, and the donation of an additional 6.3 acres of land for future retail development and for a detention pond.
“I am committed to creating an environment in Chicago where residents can live, work, raise their families and thrive,” said Mayor Rahm Emanuel. “U.S. Bank’s partnership with Pullman Park will help to rebuild our infrastructure, revitalize our neighborhoods and bring jobs to hard working residents of Chicago.”
U.S. Bancorp Community Development Corporation, a wholly-owed subsidiary of U.S. Bank, structured the first phase of the financing package by committing more than $7.5 million of New Markets Tax Credit equity in partnership with Community Development Entities RBC Community Development, LLC and MBS Urban Initiatives CDE, LLC, a subsidiary of MBA Properties, Inc. U.S. Bank also provided a $9.5 million loan to the developer, Chicago Neighborhood Initiatives (CNI), an independent nonprofit formed after U.S. Bank’s acquisition of Park National Bank, Inc.
“U.S. Bank is proud to play a role in improving the quality of life in Pullman, Roseland and other low income Chicago neighborhoods,” said Davis. “Our investment in Pullman Park will ensure the continued growth and development of the far South Side.” He noted that U.S. Bank has extended more than $105 million in Community Development Loans and made more than $74 million in investments throughout the Chicagoland area in the past two years.
The financing package by U.S. Bank will allow CNI to complete the site and infrastructure work required for the first phase, which includes approximately 400,000 square feet of retail at 111th and the Bishop Ford Expressway. Walmart, the nation’s largest retailer, has signed on as the first anchor tenant, and will build a 148,000 square foot store complete with a full-service grocery, general merchandise, a pharmacy, and a garden center once the site improvements are complete next year.
Future phases of Pullman Park, which will be 174 acres in all, will include neighborhood retail stores along 111th Street, housing development, a recreation center, and a 10-acre park.
Warren Ribley, director of the Illinois Department of Commerce and Economic Opportunity, stressed the State of Illinois’ commitment to help rebuild an area of Chicago’s South Side that was impacted by 2008 storms. “This funding will help revitalize the local economy with much needed infrastructure improvements that will help attract additional retailers to an underserved community and create jobs,” Ribley said.
Ninth Ward Alderman Anthony Beale said that the development is expected to bring much needed economic development to the area. “This is a great day for the Pullman and Roseland communities,” he said. “My ward has been hard hit by unemployment, and when complete, this development is expected to provide up to 1,700 jobs for area residents.”
Zack Boyers, chairman and chief executive officer of U.S. Bancorp Community Development Corporation, added, “With no grocery stores currently located in the Ninth Ward, our partnership with CNI increases access to healthy food options for area residents in serious need of retail facilities. The development brings much needed jobs and additional services to a community that has unfortunately suffered severe economic decline over the past few decades.”
David Doig, president of CNI, said that the community has been involved in planning Pullman Park for nearly two years. “Credit goes to many, including U.S. Bank, Alderman Beale, Walmart, and the many community organizations, businesses, and residents who saw the potential of this property and stuck with it to make it reality.”
Doig noted that the first phase of financing includes land acquisition for the shopping development, public and private infrastructure improvements including intersection improvements at 111th and Doty Avenue, and construction of two landscaped storm water detention ponds. Doty Avenue will be reconfigured at 111th Street to curve around the west side of the existing U.S. Bank building and re-join the existing Doty at approximately 110th Street, and Doty will be re-built from 110th to 107th Street. He added, “Once we successfully complete phase one, we’ll focus on our next task, which will be to bring additional retail tenants and restaurants to the site to further serve the retail needs of the surrounding community.”
About Pullman Park
Pullman Park honors its historic location as part of the original town of Pullman, significant for its planning, labor and industrial history. Once part of Lake Calumet, the area was filled in by railway car manufacturer George Pullman to build a “perfect town” between 1800-1884 that centered employee housing, shops, public facilities and parkland around the Pullman Palace Car Company. The Pullman factory shut down in the 1980s and the property was used by Ryerson Steel for metal fabrication until 2008.
About Chicago Neighborhood Initiatives
CNI was established on July 1, 2010 to continue the efforts of Park National Bank Initiatives (PNBI), a not for profit subsidiary of the former Park National Bank, which was purchased by U.S. Bank in October 2009. CNI works collaboratively in target communities to identify and implement high impact projects that promote economic development and community revitalization, combat community deterioration, create training and job opportunities for local residents, and rehabilitate and preserve affordable housing.
About U.S. Bank and U.S. Bancorp Community Development Corporation
U.S. Bank, the fifth largest commercial bank in the United States, has 81 branches in the Chicago area. It is a subsidiary of U.S. Bancorp, with $321 billion in assets as of June 30, 2011. The company operates 3,086 banking offices in 25 states and 5,086 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp Community Development Corporation, a wholly-owned subsidiary of U.S. Bank, finances community development and affordable housing projects through the use of New Markets Tax Credits, Historic Tax Credits, Affordable Housing Tax Credits, and Investment Tax Credits in Renewable Energy. USBCDC is the largest New Markets Tax Credit investor in the country, investing billions of dollars nationwide in hundreds of transactions. These equity investments have provided much needed revitalization and new resources to communities throughout the country.