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CHICAGO-Developers of the first phase of a 740-unit, $500-million redevelopment of the north end of the former Cabrini-Green housing project will get $8.9 million in tax increment financing to cover the cost of 72 units of replacement housing for Chicago Housing Authority residents. Those units are part of a 280-unit for-sale residential development in the 600 and 700 blocks of West Division Street.

The housing will be built by Parkside Associates, LLC, which includes Kimball Hill Homes, Holsten Development and a Cabrini-Green local development council. "This is the first time in the City of Chicago where residents have been part of the redevelopment," says 27th Ward Alderman Walter Burnett. "The TIF dollars will bring about a lot of jobs in the community."

The Parkside of Old Town development calls for 50% of the units to be sold at market rates, 20% at "affordable" prices and 30% set aside as rental units for residents displaced by the demolition of the public housing project. In addition to the 72 replacement units for Chicago Housing Authority residents, Parkside Associates is selling 14 units nearly $50,000 less than market value to buyers qualifying under the city's affordable housing initiative, says Department of Planning and Development project manager Benet Haller. The tax increment financing subsidy was endorsed Tuesday by the community development commission.