Committee on Finance [remote or in person]
Chicago City Council
Finance
Politics
Monday, Dec. 12, 2022
10:00 a.m. — 12:00 p.m. CST
121 N LaSalle St Chicago, IL 60602 (Directions)
City Hall, 2nd floor, Council Chambers
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Reporting
Edited and summarized by the Chicago - IL Documenters Team
Note-taking by
Anna Mason
Live reporting by
Christian Gentry
Red Line extension, Near South Side high school, Tax Increment Financing (TIF) districts
Chris Gentry
@TheChrisGentry_
Goooood Morning Chicago, do you know what would make your monday better? I think some live-tweeting of todays Chicago City Council Committee on Finance. I'll be live tweeting for #CHIdocumenters @CHIdocumenters
09:56 AM Dec 12, 2022 CST
@CHIdocumenters We got some big projects on the docket today.
The approval of the @ChicagoMkt building, the new Brighton Park district heaquarters, the construction of the somewhat controversial Near South High School, and by far the largest, the creation of the Red Line Expansion TIF
The approval of the @ChicagoMkt building, the new Brighton Park district heaquarters, the construction of the somewhat controversial Near South High School, and by far the largest, the creation of the Red Line Expansion TIF
@CHIdocumenters @ChicagoMkt Some background reading for you today!
Chicago Market Coop is an attempt to bring large scale coop grocery to Uptown!
blockclubchicago.org/2022/07/20/upt…
Chicago Market Coop is an attempt to bring large scale coop grocery to Uptown!
blockclubchicago.org/2022/07/20/upt…
@CHIdocumenters @ChicagoMkt The Near South Side High School project has faced criticism for its use of Public Housing land, instead of relying on funding from the '78'. blockclubchicago.org/2022/09/28/cps…
Of course the largest project by far is the around 2 Billion $ that has been set aside for the Red Line Extension.
chi.streetsblog.org/2022/08/16/sho…
chi.streetsblog.org/2022/08/16/sho…
This meeting is supposed to start at 10:00! (Which it hasn't yet) follow along for more updates!
We are getting going!
We are in roll-call, but on the stream there is no indicatation of who is here and who is not here.
We are in roll-call, but on the stream there is no indicatation of who is here and who is not here.
Up first, is Kate (audio was garbeled) a professor from the University of Chicago. She calls on committee to pass the TIF Red Line Expansion. She highlights how transit projects get canceled more in black and brown communities.
She says that while some parts of the TIF funding are coming from parcels in Chinatown/South Loop and the near south side, but highlights how the expansion helps everyone.
Amy Rynell from the Active Transit Alliance and the Metropolitan Planning Council is up. She says she supports it because it will benefit the city as a whole by expanding labor markets, provided more equitable transit, and help the city meet its climate action goal.
Katanya Raby from the Far South Community Development Corporation is up. She speaks to her struggles for transit without a car and the strain it put on herself and her children.
Adriann Murawski is up from the Illinois Realtors Association. She speaks towards the ordinance which would remove city councils' ability to annually raise property taxes. She highlights the near 30-40% increase in property tax bills that some communities have faced.
At the end we got George Blakemore. He claims his speech timer goes faster than other speakers.
We move into the Agenda.
First is a communication around the designation of municipal depositories for the City and the Board of Ed.
@ChiTreasurer is up to talk on the ordinance.
First is a communication around the designation of municipal depositories for the City and the Board of Ed.
@ChiTreasurer is up to talk on the ordinance.
@ChiTreasurer The idea is to use smaller more local banks for the city depositories.
Conyears-Ervin said the city has approached 50 banks.
Conyears-Ervin said the city has approached 50 banks.
@ChiTreasurer Of the 50, apparently, two banks have responded.
@votenicolelee11 asks why so few banks responded.
@ChiTreasurer says that the banks initially were concerned around collateral, but even past that, there is just a general bad feeling from historical harms.
@votenicolelee11 asks why so few banks responded.
@ChiTreasurer says that the banks initially were concerned around collateral, but even past that, there is just a general bad feeling from historical harms.
@ChiTreasurer @votenicolelee11 Next up we got the $10,000,000 Brighton Park Headquarters development project TIF Funding.
Heather Gleason the Director of Construction from @ChicagoParks
Heather Gleason the Director of Construction from @ChicagoParks
@ChiTreasurer @votenicolelee11 @ChicagoParks This project would create a large park, a campus, and the headquarters for the Chicago Parks District.
@ChiTreasurer @votenicolelee11 @ChicagoParks The current funding for the park, is 8.4 Million from the capital project, and a loan of around $54 million which would be paid off with city funds, as well at the $10 million for the TIF funding.
@ChiTreasurer @votenicolelee11 @ChicagoParks Alderman Tunney asks for the number of employees and expressed transit concern
Gleason says that the there would be around 250 employees, and the site is near the Western Orange Line stop, as well as several bus sites, and will have around 200 parking spots.
Gleason says that the there would be around 250 employees, and the site is near the Western Orange Line stop, as well as several bus sites, and will have around 200 parking spots.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard is up. He says that he thinks this project is transformative. He says that even without completion it has already led to increased development in the surrounding area.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Alderman Burke is up. He speaks strongly in favor of this project. He especially commends, former Parks superintendent Mike Kelly (Who resigned last year over the lifeguard scandal) for the project.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard The motion passes and the TIF funding is approved.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard We now move to the $5.8 Million of TIF funding, for the Chicago Market Coop.
Tim Jeffries from the Department of Planning and Development presents the project. The project will retain the historic building, but will require a full interior build out. https://t.co/8VwBPlROYm
Tim Jeffries from the Department of Planning and Development presents the project. The project will retain the historic building, but will require a full interior build out. https://t.co/8VwBPlROYm
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard In addition to the store, there will also be a kitchen-classroom and studio. Jeffrey says that the city's grocery market is volitile and that the coop model inherently has good communal effects.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Alderman Dowell, highlighted that over 60% of the development cost is being fronted by TIF. She says that it seems to be the policy of the city to bring food products to food desert areas
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Alderman Lopez is up contrasting the difference between the Yellow Banana TIF funding, and the Chicago Market project. Info on the Yellow Banana project can be found here. chicago.suntimes.com/2022/11/17/234…
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Lopez asks if there is a city policy on Food Access,
Jeffries says that there are no specific policies for DPD though there is a broader goal for increasing food security.
Jeffries says that there are no specific policies for DPD though there is a broader goal for increasing food security.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Lopez asks again if there is a specific document or policy on food access
Jeffries says that DPD looks towards the food access taskforce which is run by the Mayor.
Lopez then asks which body is in charge of TIF funding
Jeffries says that DPD is.
Jeffries says that DPD looks towards the food access taskforce which is run by the Mayor.
Lopez then asks which body is in charge of TIF funding
Jeffries says that DPD is.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Alderman Moore echoes the point that Lopez made, saying that he wants to see more consistency.
Alderman Moore also asks Jeffries if he would consider this a food desert.
Alderman Moore also asks Jeffries if he would consider this a food desert.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Jeffries says that this is not a food desert.
Moore asks why this is a priority if this is not a food desert.
Jeffries says that this is a priority because it supports the food economy on the macro sense, it revitalizes a historic building and helps build community wealth
Moore asks why this is a priority if this is not a food desert.
Jeffries says that this is a priority because it supports the food economy on the macro sense, it revitalizes a historic building and helps build community wealth
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard The motion carries with Moore and Lopez voting no.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Next up we have Terrance Johnson Assistant Commissioner for DPD to talk about the project at 4300 West Roosevelt Road. This project would create a industrial center and parking zone and is looking for $8,000,000 in TIF funding. https://t.co/2h7oVZcWiB
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard This motion passes with one unnamed vote against .
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Up next is the University of Illinois Discovery Partners Institute project which is looking for $85,000,000 (Woo that's alot)
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard This project would be a massive training and research site, that is expected to include the training of 7000 individuals with tech/medical/science and engineering. https://t.co/egXnpHH2Ea
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard In order for the DPI to be successful there are a ton of infrastructure needs specifically around railway tracks, metra track realignment, as well as other infrastructure needs.
@ChiTreasurer @votenicolelee11 @ChicagoParks @RLopez15thWard Alderman Dowell speaks in support. She calls on Kumar Kintala the Director of the DPI to speak.
He says that the DPI is focusing on applied research and business development and, training for those without formal education or looking to switch careers.
He says that the DPI is focusing on applied research and business development and, training for those without formal education or looking to switch careers.
Next up is an ordinance that calls on the waiving of fees for Chicago Board of Ed and its contractors for ongoing improvements.
This is the status qou, and this would merely be an extension of a previous ordinance.
This passes unanimously.
This passes unanimously.
Next up is the approval for TIF funding up to $8,000,000 for the New Near South Side High School.
Ivan Hanson from Chicago Public Schools is here to testify.
Ivan Hanson from Chicago Public Schools is here to testify.
The total project would cost around $120,000,000 the school will be located on 24th and State.
Hanson says that the city has held 30 engagement sessions including all of the neighborhood high school principals.
Hanson says that he expects little effect on existing neighborhood schools.
Hanson says that he expects little effect on existing neighborhood schools.
Alderman Villegas asks Ann McKenzie from CHA about the land, he asks if there was some form of land swap.
McKenzie, says that CHA is still going to be looking to build 240 developments on the remaining land on that parcel.
McKenzie, says that CHA is still going to be looking to build 240 developments on the remaining land on that parcel.
Alderman Beale is up, he asks if
HUD has approved the land swap - Mckenzie says no
Beale also asks if the state money has been sent through the rep- A rep from the Board of Ed says that the money was approved but does not have a funding source yet.
HUD has approved the land swap - Mckenzie says no
Beale also asks if the state money has been sent through the rep- A rep from the Board of Ed says that the money was approved but does not have a funding source yet.
The Board of Ed member (name unknown) clarifies that currently the Representative for the area @ChicagoTM is against the new school project.
@ChicagoTM Alderman Moore is up. He asks about the nearby schools, asking for the capacity of Phillips and Dunbar.
Adrian Seguro from CPS is up. He says that Phillips and Dunbar do have capacity, but that there is a low estimated impact on surrounding enrollment.
Adrian Seguro from CPS is up. He says that Phillips and Dunbar do have capacity, but that there is a low estimated impact on surrounding enrollment.
@ChicagoTM Alderman Moore says that he doesn't want to see negative impact on those schools.
He looks back on the creation of NTA, which he says was handeled very poorly.
He looks back on the creation of NTA, which he says was handeled very poorly.
@ChicagoTM Alderman Lopez is up he asks for if there is a backup plan if the money from the state is pulled.
Chuck from CPS says that they are going to fight for the money.
Chuck from CPS says that they are going to fight for the money.
@ChicagoTM Alderman Lopez goes off on @ChicagoTM Mah saying that she promises money and will pull it at the drop of a dime
Chuck Swirsky says that Theresa Mah will have to answer to her community and that community engagement will lead to her getting on board.
Chuck Swirsky says that Theresa Mah will have to answer to her community and that community engagement will lead to her getting on board.
@ChicagoTM Alderman Dowell says that she is going to bring the school across the finish line "Come hell or high water, with or without Theresah Mah State Rep"
@ChicagoTM Alderman Moore asks for the CHA resident of support,
McKenzie says that there isn't a letter.
Moore says he can't support it if that is the case.
McKenzie says that there isn't a letter.
Moore says he can't support it if that is the case.
@ChicagoTM Next up is the extention of the Kinzie Industrual Corridor.
Jeffries highlights the need for public infrastructure improvements, buissiness support, and the creation of additional affordable housing in the West Loop.
Jeffries highlights the need for public infrastructure improvements, buissiness support, and the creation of additional affordable housing in the West Loop.
@ChicagoTM Alderman Tunney expresses concern about the way that DPD is looking to protect industrial activities in the TIF zone.
Jeffries highlights a few use cases such as a mushroom program, the hatchery as well as a few others.
Jeffries highlights a few use cases such as a mushroom program, the hatchery as well as a few others.
@ChicagoTM Alderman Burnett is up. He speaks about how supportive he is. He also talks about the possibility or a metra stop being added there.
@ChicagoTM Alderman Burnett says that there are thousands of affordable housing sites going up, "but maybe no more depending on how people treat me" (I am not sure if that is a joke or not tbh)
Next up we got the approval of the Pulaski Industrial TIF district. This is a district since 1999.
This is technically 3 items. It will update the land-use map, extend the boundries, extend the lifespan of the district, and modify some of the TIF regulations.
This is technically 3 items. It will update the land-use map, extend the boundries, extend the lifespan of the district, and modify some of the TIF regulations.
Jeffries from DPD says the TIF district will be able to immediatly go towards increased affordable housing, the stabilization of small businesses, and other Invest Southwest projects.
Alderman Reboyras is up. He asks about Pioneer bank, which is partially a landmark which is in the TIF district
Jeffries said that it is a landmark and will be "designed around"
Jeffries said that it is a landmark and will be "designed around"
All three motions are carried (they are all related to the TIF district)
We are skipping the red line ordinance for now.
Moving to Item 18. This would repeal Section 3-92-075 regarding pensions.
@AldReilly is up as this is his ordinance. This would remove the inflation based annual property tax increases.
Moving to Item 18. This would repeal Section 3-92-075 regarding pensions.
@AldReilly is up as this is his ordinance. This would remove the inflation based annual property tax increases.
@AldReilly Reilly opens with a speech on the cost of living. He says that the current CPI linked property tax increase will lead to 5% increases in property tax increases for the foreseeable future.
@AldReilly Specifically Alderman Reilly says that the CPI policy is a ruse designed to have the CPI calculator, not the Mayor, push property tax increases.
@AldReilly Bennet says that the city has gotten 10 ratings upgrades. She says that the city's borrowing cost is attatched to ratings, which she claims will be impacted by the CPI automatic increase being repealed.
@AldReilly Bennet says that movement towards financial stability will be impacted by the CPI ordinance. She follows this by quoting directly from rating agencies who, in their rating increases pointed towards the CPI ordinance.
@AldReilly Alderman Sposato, comes up saying that we have to pay a little now or a lot later. He says he'd rather chip away a little a time. He say's he doesn't support this
@AldReilly Alderman Ervin says that his property tax bill increased, but that is something that needs to be addressed with he county since they are the one assessing properties.
@AldReilly Ald Osterman asks Bennet about if the decision to delay the CPI to this year from last year, hurt the city.
Bennet says that it was a concern, one that was answered by the rapid recovery, but that it was a concern.
Bennet says that it was a concern, one that was answered by the rapid recovery, but that it was a concern.
@AldReilly Ald Waguespack is up. He says that the city only has so many systems financially, and when the state doesnt take action like the graduated income task, the city needs the financial stability that the CPI provides.
@AldReilly Ald Reily is up to close the debate. He says that since the city chose to not use the CPI for the 2022 budget, and that the city might not in the future. He says this is the chance to stand up for the people
@AldReilly Guys, gals, non-binary pals, now we move to the nearly $1 Billion in TIF funding for the red line extension project.
@AldReilly Here we go!
We got 5 items on the redline extension.
Jeffries to discuss the TIF, Leah Mooney from the CTA and Dorval Carter also from the CTA
We got 5 items on the redline extension.
Jeffries to discuss the TIF, Leah Mooney from the CTA and Dorval Carter also from the CTA
@AldReilly Jeffries kicks us off.
He explains the 5 ordinances will result in 2 things.
1. The creation of the Red Line Extension TIF and then 2. The intergovernmental agreement that will provide nearly $1Billion in TIF funding.
He explains the 5 ordinances will result in 2 things.
1. The creation of the Red Line Extension TIF and then 2. The intergovernmental agreement that will provide nearly $1Billion in TIF funding.
@AldReilly This is all part of the Red Ahead program which includes modernization and other upgrades transitchicago.com/redahead/
@AldReilly Jeffries says the Red Line Extension (RLE) will be the biggest investment in the far south side in Chicago history!
@AldReilly Jeffries says that there are a ton of federal funds that will make the RLE possible. But Federal grants require local matching funds. He says that timing is key to get these funds before any possible administration change.
@AldReilly Jeffries discusses the concepts of Transit TIFs, which are like regular TIFS but they focus on areas within half a mile of the transit line. They also have some additional requirements.
He highlights that residents do not see an increase in their property taxes.
He highlights that residents do not see an increase in their property taxes.
@AldReilly Jeffries says that other transit TIFs extend beyond their actual improvement area, such as the transit TIF that upgrades the Belmont red line stop.
@AldReilly Other Red/Purple modernization projects using Transit TIFs have been successful at funding the Red/Purple bypass, as well as station upgrades.
@AldReilly Mooney is up from the CTA.
She calls the RLE a transit equity process. This will save up to 30 minutes each way for those who rely on the CTA to commute from the far south side.
She calls the RLE a transit equity process. This will save up to 30 minutes each way for those who rely on the CTA to commute from the far south side.
@AldReilly Mooney additionally highlights the plan to create equitable transit-oriented develoment in the area around the proposed RLE.
@AldReilly Mooney highlights the equity in contracting, claiming that the CTA historically overshoots DBE requirements (Disadvantaged Business Enterprise, the federal version of M/WBE)
@AldReilly Mooney says the construction will create several thousand jobs, and the first year of construction will create $4 Billion in economic impact.
@AldReilly Mooney says the vision for the Red Line Extension has the support of community groups and labor all over the city.
Dorval Carter is up!
Carter says that his support of the project is both economic and personal
Carter says that his support of the project is both economic and personal
Carter says that beyond jobs, transit times etc, the biggest reason for the RLE is "fairness" because the far south side is the only community in Chicago without access to rail.
Ald. Villegas asks if there any veteran hiring goals for this project
Carter says there is not but that can be added into the project.
Ald. Villegas says he is in support of the project
Carter says there is not but that can be added into the project.
Ald. Villegas says he is in support of the project
Alderman Moore is up. He asks for the total cost of the project, and how much the city needs to get federal matching funds.
Mooney says the current total is $3.6 Billion, with $2.2 Billion from the federal government. Around $1 Billion would come from TIF
Mooney says the current total is $3.6 Billion, with $2.2 Billion from the federal government. Around $1 Billion would come from TIF
Mooney says that 64% of the extension will be paid for with federal funds.
Alderman Lopez is up. He asks for the TIF surplus for 2022.
Jeffries says he thinks its around $320m
Lopez asks about the rough amount that TIF generates per year.
Jeffries says it is around $1 Billion
Jeffries says he thinks its around $320m
Lopez asks about the rough amount that TIF generates per year.
Jeffries says it is around $1 Billion
Lopez says that since we find that TIFs generally have an extra $300m extra, could we not just give those funds to the CTA.
Jeffries says that is possible, but not legal under our current act.
Jeffries says that is possible, but not legal under our current act.
Jeffries says that the Red/Purple Modernization project does something related to what Lopez is suggesting, but where the funds are being generated with the RLE are not near the project area.
Lopez asks why we are creating this giant legal schema and development bubbles when we have the extra funding.
McDonald from the Department of Law confirms this isn't legal
Lopez responds saying that the city should have approached the state earlier about making this legal
McDonald from the Department of Law confirms this isn't legal
Lopez responds saying that the city should have approached the state earlier about making this legal
Lopez changes tact, asking about the use of ex-offenders in the hiring process.
Carter says that he can commit to that.
Carter says that he can commit to that.
Alderman Sposato is up. He says he hasn't been lobbied by anyone to vote for it. He says that it looks amazing from the outside, but he hasn't heard his colleagues on the south side jumping for joy about it.
Alderman O'Shae says that while he is not jumping for joy, he is really excited about it.
Alderman Osterman is up. He asks about the outreach Carter has done with the state and the county.
Carter says that he has had lots of state funding conversations and that those are ongoing. But what is needed today is a funding commitment in order to secure federal funds.
Carter says that he has had lots of state funding conversations and that those are ongoing. But what is needed today is a funding commitment in order to secure federal funds.
Carter says the county has traditionally not been a funder of the CTA, but he is not opposed to working with them.
Ald. Beale says that he has been the biggest advocate of the RLE for his entire career.
He says that the communication with Dorval Carter has been horrible. That he has never had a conversation with Carter about the TIF
He says that the communication with Dorval Carter has been horrible. That he has never had a conversation with Carter about the TIF
Ald. Beale says that he thinks there needs to be more federal funding and state capital funding with Springfield
Carter says that the way federal funding works requires the commitment of local entities. He is still going to try and get federal funding.
Ald. Beale says that he has felt slighted, given that 90% of the extension is in his ward.
Ald. Beale says that he has felt slighted, given that 90% of the extension is in his ward.
Alderman Lee says that she is from the ward that gave the city Richard Daley, and the impact of his failure to meet his promises to extend the Red Line weighs on her, so while this is a hard vote, she will be voting to support the district.
Alderman Dowell is up. She says that she supports the RLE as a project, but her concern is with the funding mechanism.
She doesn't want 5 wards paying for a project that is this scale.
She doesn't want 5 wards paying for a project that is this scale.
Dowell says she objects to the way this project has been played in the media. She says she surveyed her constituents, and 65% of her residents said no.
Alderman Burnett says that he loves the concept of the RLE as a way of moving workers from the south side to a downtown that is desperate for workers.
Ald. Waguespack says for him this comes down to accessibility and despite the difficulty of the aspects that have concerned other alderman, but ultimately its about Fairness.
Waguespack moves to vote.
Waguespack moves to vote.
The RLE passes out of committee nearly unanimously. The sole no vote being Dowell.
The city law department is up.
The first settlement is for a car chase in 2018, in response to an armed car jacking, several police cruisers responded in pursuit. The police vehicles were going around 75 MPH when the police vehicle struck a jogger.
The first settlement is for a car chase in 2018, in response to an armed car jacking, several police cruisers responded in pursuit. The police vehicles were going around 75 MPH when the police vehicle struck a jogger.
The Plantiff in the lawsuit argues that the pursuit should have been terminated based on the general order. He argues that the officers were willful and wanton in their behavior.
*EDIT the plaintiff was hit by the fleeing driver, not the police.
Next up is a settlement for $350,000 from the execution of a search warrant, when the SWAT officers pointed assault rifles at the children in the house, and handcuffed and mistreated the children in the house.
Platiffs also claim there was structural damage to the house, and that the officers intentionally inflicted damage to the minors.
The motion to approve is passed.
The motion to approve is passed.
Next up is the lawsuit filed by Manuel Barocio.
Barocio alleges that he was arrested falsely and intentionally. He also alleges that the officers filed false police reports, and lied on sworn reports.
Barocio alleges that he was arrested falsely and intentionally. He also alleges that the officers filed false police reports, and lied on sworn reports.
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