Committee on Finance

Chicago City Council

Finance

Politics

Monday, June 21, 2021
10:00 a.m. CDT

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Reporting

Edited and summarized by the Chicago - IL Documenters Team

Note-taking by Christian Gentry

Multi-Family TIF Purchase Rehab Program, Third-party food delivery apps and restaurant sales tax

View notes

Live reporting by Megan Wadin

Multi-Family TIF Purchase Rehab Program, Third-party food delivery apps and restaurant sales tax

megwadin @megwadin

Chairman Waguespack begins the meeting promptly at 10:04am. Quorum is established. Marilyn May is introduced as the first up for public comment.

04:26 PM Jun 21, 2021 CDT

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May represents the Black Heroes Matter Coalition and wishes all a happy Juneteenth. Addresses City Council's opportunity to right the wrongs done to Jean-Baptiste Pointe DuSable by re-naming Lake Shore Drive.

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Requests Council votes yes to join Federal Government in public recognition of our history of racial oppression and honor DuSable in this way.

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Efrain Martin is next, Chairman of Martin Intl & the Black Mothers Coalition, celebrates the success of Juneteenth being recognized as a Federal holiday. Advocates that City Council votes yes to rename Lake Shore Drive, to DuSable Drive in honor of Chicago's founder.

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Martin also advocates for monument installations and public parks to commemorate Jean Baptiste DuSable and honor our cities history of racial diversity. Martin argues that the conversation on racial oppression must continue in our city and our history must be honored.

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Technical issues prevent third speaker from addressing the committee, while the problem is being addressed the Chairman moves on to approve the appointment of Michilla Blaise.

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Blaise addresses Council and promises to protect homeowners & homeownership in Chicago should she be appointed. Blaise shares more on her background in Chicago public service and community organizing. Alderman Sawyer vocalizes full support for Blaise.

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Vice Chair Hairston, 'wholeheartedly and enthusiastically supports this nomination'. Blaise is an 'asset', a 'supporter', and brings with her a wealth of experience. Alderman Lopez, Dowell, Burnett, Scott, Moore & Beale endorse Blaise as well.

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Burnett thanks Alderman Nugent for nomination and efforts to bring City together through this appointment. Alderman Austin thanks Nugent as well and moves for appointment to be approved. Motion is approved.

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Next on agenda, a request to amend municipal codes requiring food delivery companies to include city tax. Reshma Soni addresses Council and details prior tax payment confusion in restaurant industry surrounding who exactly was responsible for tax payments.

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Alderman Thompson requests clarification, as he understands it, delivery companies are placing orders with restaurants, therefore the restaurant is responsible? Soni explains when the order is placed through a delivery service, it then becomes their role to collect the tax.

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In the past, taxes were remitted to restaurant and it was their responsibility to tracks sales and pay taxes. With delivery services there was confusion as to whether the money should be paid to restaurant to pay tax, or pay the City directly. This change corrects these issues.

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Alderman Lopez points out that this issue is not unique to restaurant industry, remains an issue with other third party services as well i.e. parking, and should be addressed by Council as well.

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Alderman Ervin asks if consumers would then be paying taxes to both the delivery app and the restaurant. Soni clarifies that it is only paid to delivery app.

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Soni notes that an estimated $39M in taxes are collected annually through this practice (pre-COVID). Amendment to code is voted on and approved.

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Next item on agenda is discussion of Dept of Housing recommendation on proposed ordinance to expand vacant property rehabilitation program funded by TIF to single family homes.

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Willie Edwards presents on proposed program re-vamp. https://t.co/KXDZeZ3q0p

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Edwards presents opportunities identified for acquisition & reuse on South & West sides. https://t.co/cLFhk6kuHK

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Amendment changes are detailed for Council. All TIF areas identified included in Invest South West initiative as well. https://t.co/iUlnFreZG1

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Alderman Sadlowski-Garza voices support for proposed changes and requests presentation to share with her ward. Alderman Burnett clarifies this is the TIF purchase rehab program extended to commercial properties.

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Alderman Dowell confirms with Edwards that TIF money will remain in district. Asks how program will be marketed to make owners aware of opportunity, and will they be expected to match funds?

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Edwards: currently spread through outreach with local owners with a measured approach to not overextend. To answer second question, CIC offers loans to provide additional funding.

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Alderman Moore asks if those on the commercial side are required to rehab residential units above commercial spaces, Edwards confirms that that is in fact the case.

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Motion to approve passes & the program is approved.

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Beth O'Reilly from @ChicagoParks requests approval to provide Chicago Park District with up to $600k TIF assistance to make improvements to facility at Douglass Park located within midwest TIF district. https://t.co/q43FFr77x5

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Funding will be primarily used for building and access improvements to cultural center. Alderman Scott highlights that there is strong cultural and arts programming at Douglass Park and supports investment in the facility.

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Scott also challenges Park District to additionally invest in bathroom and basement facilities at the center. Motion is approved by vote.

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Next item for discussion is proposed ordinance to restructure loan agreement with Prairie Park Partnership for Capital Improvements regarding rehab work on middle income housing in the 20th Ward.

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Joe Lewis from Dept of Housing provides testimony on Prairie Park Apartments loan restructuring proposal. https://t.co/DswcGEpFTy

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Alderman Taylor is in support of project to support well-kept housing in Ward. Alderman Ervin asks why this particular development, Taylor notes that there has been little affordable housing planned for Washington Park so this is in important investment to kick-start it.

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Motion approved.

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Next item up for discussion is proposed ordinance regarding $2.5M in funding for affordable housing development Metropolitan Apartments at 3557 W Lawrence in 33rd Ward. https://t.co/GehT6gHseo

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Additional financing details are provided https://t.co/IPLcV9tGej

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Alderman Rodriguez-Sanchez thanks Jim O'Connell for presentation & voices wholehearted support for project. Additionally excited for collaboration with Concordia for on-site day care services. Motion to approve is passed.

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Beth O'Reilly presents on the @ChicagoParks project proposals; https://t.co/hgfREl5daA

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Additional proposed river access projects; https://t.co/zqrFAYszsY

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Multiple proposed projects at Garfield Park https://t.co/vp2bWNbxkA

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Alderman Maldonado requests to postpone the vote on the proposed updates in Humboldt Park.

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Lauren Umek from @ChicagoParks clarifies that the river projects are a coordinated effort between the parks, the City, Army Corps, and non-profits. Alderman Harris thanks Park District for efforts on Jesse Owens park. https://t.co/nGAiN0G8lJ

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Alderman Smith congratulates all on park improvements & brings attention to Calumet River as additional opportunity for river front park development. All parks, with exception of Humboldt at Alderman Maldonado's request, are approved.

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Next item on agenda is proposal to amend and enlarge Chicago Enterprise Zone #1 located in 28th Ward, no testimony will be given nor vote taken today. Only announcement that public hearing on proposal will be July 7th 2021. Timing to be released in next week.

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Next is review of judgements and settlements from Dept of Law for month of May, placed on omnibus. ACLU tag days placed on omnibus as well. Supplemental agenda is next authorizing the Corporation Council to execute a settlement with 5 Jane Doe's V City of Chicago for $1.825M.

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Renai Rodney from Corporation Council presents the settlement as a case from Federal court brought forward by 5 female paramedics alleging individual claims of sexual harassment and gender discrimination. Not class action case. Law Dept recommends the case is settled.

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Alderman Sposato asks why settlements are linked, Rodney explains the plaintiffs all have individual lawyers but decided to file together. Sposato asks why settlement is greater for Jane Doe 3, Rodney clarifies certain claims would be less able to proceed trial for Jane Doe 5.

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Alderman Lopez asks if we can claim back pensions of fired alleged offenders to cover costs of settlement? Rodney answers no, that is up to the pension board, only a felony conviction would impact pension with 100% certainty.

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Alderman Dowell recalls that several additional women have identified themselves as individuals who, if called upon to court, could corroborate harassment claims. Is there a risk of these additional women suing City as well? Rodney: statute of limitations would likely expire.

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Dowell confirms that settling this case would be the final step in closing the issue with these particular offenders.

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Alderman Ervin asks why the offenders are not named? Rodney clarifies that they are not named as defendants & no judicial findings have been put forward. Reiterates the City is responsible for harm inflicted by any City employees on the job.

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Motion to approve the settlement is granted. Meeting is adjourned at 12:45pm. For more meeting coverage, check out documenters.org!

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Chicago City Council

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