[in person or remote] Committee on Finance

@CHIdocumenters Public Comment period included speakers from @UniteHereLocal1 (in the 3rd Ward) regarding the allocation of TIF funds for development on Michigan, and a written comment from Sustainable Englewood Initiatives requesting more intel re the Mayor’s youth programs.

First item on the agenda: the approval of the June 2023 Monthly Rule 45 Report (ie, what happened last time).

Second agenda item: A lease agreement with the Chicago Park District regarding a portion of Durkin Park.

https://chicityclerkelms.chicago.gov/Matter/?matterId=E1DB186D-7F10-EE11-8F6C-001DD806D641

Through the Chicago Parks Department, the city would lease water infrastructure to Joliet.

Questions – @taylorfor20th asks about benefit to community + challenges with collecting overdue payments with cities Chicago already has agreements with (147 municipalities have this kind of agreement in place)

There have been issues with the livestream, so I will come back to this agenda item’s status.

On to Agenda Item #3 – allocation of funds re: the redevelopment of the Congress Theater.

A good recap of this dev from @BlockClubCHI is here: https://blockclubchicago.org/2023/06/06/congress-theater-redevelopment-in-jeopardy-as-alderman-races-to-save-expiring-city-funding/

@BlockClubCHI The @ChicagoDPD found that city funding of up to $27 million for this project “is a necessity” — emphasizes the creation of community spaces, affordable, housing, and historic preservation

@BlockClubCHI @ChicagoDPD @NewDayConway and @taylorfor20th ask extensive questions about financing distinctions within the $27 million tif and overall budget for the project.

@BlockClubCHI @ChicagoDPD @NewDayConway @taylorfor20th Ald Villegas asks about property taxes and vendors which reps agree to follow up about.

@BlockClubCHI @ChicagoDPD @NewDayConway @taylorfor20th Ald Lopez expresses that the DPD previously said they would change language (beyond the code) re certain pieces of TIFs to be included, suggests a subcommittee from this committee to address.

@BlockClubCHI @ChicagoDPD @NewDayConway @taylorfor20th And Ald LaSpata says the original developer had no community benefit beyond “re-development” — high rents, a staffless (jobless) hotel.

This development, says La Spata, includes support for affordable rent, community benefits, “written into the RDF” — based on community process

@BlockClubCHI @ChicagoDPD @NewDayConway @taylorfor20th La Spata: we need “time not money” — is rationale for this extension

@BlockClubCHI @ChicagoDPD @NewDayConway @taylorfor20th Chair Dowell says it seems like an opportunity to improve entire corridor

@BlockClubCHI @ChicagoDPD @NewDayConway @taylorfor20th The “ayes” have it for both pieces of this ordinance — an amendment to TIF allocation for the full corridor and the Congress Theater.

@BlockClubCHI @ChicagoDPD @NewDayConway @taylorfor20th Agenda item 4 — TIF funds for Hudson Yards at 2222 S Michigan in Chair @AldPatDowell3rd’s ward — the one that @UniteHereLocal1 took a stand against in the last Finance Committee’s public comment period.

To be clear, @UniteHereLocal1 is now supporting the ordinance.

@ald_nicolelee and @AldGregMitchell @gilbert36ward express enthusiasm for the project – asks why it is a loan that must be repaid. Ald Moore asks for clarification on how to make sure that repayment is enforced

Project Developer (and former Bear) Israel Idonije speaks to his enthusiasm for the project at the request of Chair Dowell and the ordinance passes.

Agenda Item 5 is about Loop-Counterpointe PACE, LLC continuing to administer the Property Assessed Clean Energy (PACE) Program. Chair Dowell requested an overview of the program from the presenter – PACE is privately held debt (no risk to the city)

https://www.chicagopace.org/

Ald Conway (former solar developer) is surprised by the program – a tool that has only been used 3 times (“it works better in a better construction economy, which we haven’t seen since 2019”)

Congress Theater, by the way, has PACE funding.

Alder asks about marketing plan + program admin funding fees for the PACE program.

Ayes have it.

Item #6 from @ChicagoDOT – re: admin changes for TIF funds allocated to the University of lllinois’ Discovery Partners Institute Infrastructure – in the 3rd Ward, Chair Dowell’s own.

@ChicagoDOT @ald_nicolelee is also excited about this project and asks quick question about the developer’s RDA. Ald Villegas asks clarification — TIF $ goes to water infrastructure, and the building contract itself goes to Capital Development

@ChicagoDOT @ald_nicolelee Sidenote: I asked 4 different people, and it seems the livestream is presenting major technical difficulties. FYI 👀

Livestream is back up and loaded DIRECTLY into Alder Irving asking question re: Agenda Item 7 –

A proposed $350,000,000 WIFIA loan to the City from the EPA – “you’re jumping up and down about $9 million out of $350K” to Black residents/contractors?

It’s heated. Ald Villegas moves to table ordinance but Alder Dowell asks for other comments.

Alder Lopez re: lead replacement: the dept needs to explain how many projects are pending re: water/sewer mains

(Water rep says “on track” – 6 programs: equity, daycare, lead service replacement – 30,000 of 45,000 goal for the year.

Lopez cites this article and says – “there is plenty not getting done” https://www.chicagotribune.com/news/environment/ct-toxic-lead-pipes-chicago-20230430-a4kv66sk5nd33ialiukrq2id2m-story.html

Requests from Alders re: timeline, where/what Wards are being replaced.

Alder Mitchell says that this equity piece not being considered in the last 4 years that the Commissioner has been in office is “a slap in the face”

Ald Mitchell: We NEED to coordinate this (w menu money, etc) – “It makes us look like the most inefficient city in the world.”

Alder Burnett asks many clarifying questions and everyone says about a thousand acronyms – THIS is what they’re talking about, and what the concern re: the $9 million out of the overall total for the grant is in reference to:

https://www.chicago.gov/city/en/depts/dps/provdrs/cert/svcs/minority_and_womenownedbusinessenterprisecertificationmbewbe.html

From Alder Vasquez w Water dept questions – how do we have more regular communication? We have to answer to our constituents – “where is the money going?”

Alder Dowell tables this agenda item because it needs additional briefings –
or, in her words “it’s a little off the rails.”

Also, apologies to Alder Ervin for the mispeling earlier

Onto Agenda Item 8 from @ChicagoDOH – granting authority to cede excess and unallocated volume cap to Illinois Housing Development Authority (IHDA) from the City of Chicago’s tax-exempt private activity volume bond cap. We can only imagine there will be an explainer for this one

This allows unallocated bonds and funds to go to partners – this was done for senior housing at Albany Terrace + McCoy Gaines (30.5 mil). $50 mil expires every year – they want to be able to cede this $ to IDA

IDHA = Illinois Housing Development Authority

Examples include: https://www.chicagotribune.com/real-estate/ct-viz-re-900-randolph-20221004-7dx7efvctvb4vgfqfpfwqhm7v4-photogallery.html

Alder Lopez asks why we would cede this money to IDHA when the city could do it – IDHA has MORE resources than the city, which is the point of the agenda item.

The “ayes” have it and we’re moving forward. Agenda item 9 — funds from multi family program or STSC bond funds for affordable housing at 1930-1938 Humboldt, and two sets of units on Sacramento ave (1st + 26th Ward, ie La Spata and Fuentes)

Motion passes and we’re onto two orders authorizing (and denying) the payment of small claims.

This and proposed orders authorizing Charitable Solicitation on the Public Way for Salvation Army and ASPCA were approved, and we are on to major lawsuits.

Vincent Tucker v. Citv of Chicago, Carlos Yanez. Jr.. and Julian Rodriguez for $750,000 because of an alleged crash caused by CPD Officers pursuit in an unmarked vehicle that disregarded stop signs, and traveled down streets the wrong way for a traffic offense.

Alder Lopez asks why this settlement requires the city to “be on the hook” for “criminals” and requests a roll call vote. It passes.

There’s a short recess for the court reporter’s sake, solidarity with the court reporter.

Second item – Bernard Kersh v. the City of Chicago. Officer Jerald V/illiams; Case No. 2020 L 1518. Amount: $750,000 Williams did “an emergency takedown” and plaintiff was treated for a concussion. COPA found this “outside of dept policy”–

Lawsuit approved w roll call vote

Item 3 – Garrit et al v of Case No. 2016 CV 7319. Amount: $2,000,000

here is the case text:
https://casetext.com/case/garrit-v-city-of-chi

Roll call vote. Approved but 10 ayes, 9 nos.

Last item on the agenda – Darnell Smith. et v. City of Chicago. et al. for $4,987,500 – filed in federal court in 2015, re the city’s Stop and Frisk policy.

https://southsideweekly.com/the-quiet-rise-of-stop-and-frisk/

Alder Lopez, Conway, and Spasato ask questions re: on department coordination, how this might go in federal court, and fees – speaker says claims could reach $10 million dollars.

Roll call vote (18-2).

It passes and we are done for the day.

Before adjourning – Chair Dowell introduces Finance Committee staff.

As Alder says, “oof.” That’s a wrap – follow @chidocumenters for more.