1 2. Mic check. 1 2.
Good morning everyone. The meeting of the committee on
economic capital, technology development is called to
order. You will now have a roll call to establish a quorum.
Please note that your present response will be deemed a.
Yes vote. When we just call, when this Quorum calls used as
a reference vote for later, Mr. Validus, please call the
roll.
Alderman. Vas, president.
Alderman, Mosley Pres
Alderman, ESP.
Alderman Hall.
Alderman Mitchell.
Alderman, Chico.
Alderwoman Lee.
Alderwoman Gutierrez.
Alderman Lopez.
Alderwoman Tabares.
Alderwoman Cruise.
Alderman, Cardona.
Alderman Wags back.
Alderwoman mitts.
Alderman Napolitano.
Alderman. Reilly
Alderwoman, Mana hennur.
Mr. Chairman we have Quorum. Thank you. Uh, Mr. Valadez
there have been no Alderman that requested to participate
in today's meeting remotely on the rule. 59 for today's
meeting we have not received any written comments. At this
time we will begin the public comment period. Public
comment is limited to 30 minutes out of respect.
Everybody's time. Each speaker is limited to 3 minutes. We
have 1 speaker signed up Mr. George Blakemore.
Thank you.
Always do now to my Facebook friends out here. You can see
that I'm the only 1 here, the only 1 here,
Aha, I'm talking about citizens.
It's all little white here. Anyway, I feel at home
Reading the agenda.
They?
Have a chairman.
They have 1 of the ultimate Walter Bernard.
And somebody some cooperation or something, they're moving
into that war.
And the the the cooperation of the business or whatever
they asking for a tax incentive, what they're asking for is
something that that they just don't deserve.
But they, they are saying, give us a tax incentive and we
gonna use people from the war.
We're gonna use a lot of poor black people, poor whiter,
Hispanic or whatever, but that's what they're saying, they
gonna do, and sometime these class incentives. They go for
12 years, or even longer,
But who monitor that program?
All right. Mr. Blakemore who makes sure that these business
people are still male of factors of doing what they say.
They're gonna do sometime, they hire them and the first
year or 2, and then they file.
What nobody wanted that program.
So Mr. Blakemore, why are you so stupid? I know about those
incentives because it's the same dog and pony show at the
county.
So I'm very astute with government and how it doesn't work
for black people.
I'm very astute that Hispanic. And and these Hispanic
Awards, they make them accountable. They say, all right,
we're gonna let you in and you going to the incentive, they
pay less taxes.
That's what they mean. They're not paying their regular
taxes, that they should be paying other the disguise that
they gonna hire people from the hood.
But this Hispanic make them accountable but owing the
eighth Ward the no, no, no.
Uhuh, they still Mill the white. They want that steel meal
with pollution, it moved to uh Michelle's Ward and with the
tax incentive and and she didn't demand that
see, we don't demand that and that's why they want to
challenge me. They want to lock me up.
Want to shut me up and not only lock me up and shut me up.
They want to do that to you and they are doing it to you my
black brothers and sisters. So I advocate that these needy
in the afternoon or the Working, Poor will be present.
Thank you. Thank you very much and my me
Thank you, Mr. Blakemore
that concludes the public comment portion of the meeting.
The first order of business is approval of the December
2024 monthly report, which all members of the committee
should have received. Are there any questions or comments
from committee members regarding the report?
Seeing none, may I have a motion to recommend approval of
the December 2024 monthly report by the same roll. Call was
applied to the term, Quorum Vice chair Mosley. So moves
here, no objection. So ordered item 1, the item 1 on the
agenda is an ordinance in support of a Class, 6 B, tax
incentive for a property at 4:55 North Astron Avenue for a
partial development of manufacturing facility that will
house prototype, battery cell production and a corporate
headquarters. Aaron Fogle is a financial planning analyst
for the Department of planning and development and is here
to present in support of the item will be available to
answer any questions. We also have members of the
development team available to answer any questions Mr.
Fogle please uh, begin the presentation when you're ready.
Yes, good morning. Uh, chairman viegas and members of the
committee on economic capital and Technology development
for the record. My name is Aaron Fogle financial planning,
analyst in the department of planning and development.
I'm also joined today by Julia Marie. Eva Marco Babbage,
Nigel becknell and Mark. Rogers from the development team
I'm here today to request the approval of an ordinance,
supporting an initial class 6B property tax incentive for
455 North Ashland LLC for the purpose of rehabilitating and
reoccupy a 67580 square foot warehouse at 455. North
Ashland Avenue that has been vacant since 2020.
The project site is in the 27th Ward the West Town
community area, the West planning region and the Kinsey
industrial corridor.
Alderman, Bernett Junior has provided a letter of support
for the project.
Seen here as an aerial view of the project site, which is
located at the southwest corner of the North Ashland and
West Hubbard intersection.
And here is a view of the current conditions of the site
from the exterior. The site contains over 67,000, square
feet of vacant, industrial warehouse space.
Here's a view of the current conditions of the site's
interior. The property includes approximately 3,000 square
feet of existing office space. A 2500 square foot mezzanine
5 interior, docks 2 Drive indoors and 61 parking stalls.
The previous occupant MBS Production Services began winding
down its business in Q3 2020 and eventually vacated the
space at the end of the year at the expiration of its
lease.
The applicant and site owner 4555 North Ashland LLC doing
business as prologis invested over 1 million dollars to
prepare the property to lease and eventually found nanograf
as a potential tenant subject to receiving the class 6B,
designation
nanograf plans to spend upwards of 5 million dollars on
improvements such as a new power and electrical
distribution, loading, dock, support infrastructure and
structural reinforcement. And reinforcements.
To accommodate improved mechanical and air handling
equipment.
Nanograf. Also plans to purchase and install over 5 million
dollars in cell prototyping and process development
equipment.
Tax savings to the applicant which will flow through to the
tenant or estimated to be.
2.7 million over 12 years or 2 million dollars on a Net
Present Value basis.
Construction is expected to start. As soon as the class 6B
property tax, incentive is awarded and is expected to be
completed in Q3 of the year.
The project cost is approximately 12.8 million and is being
financed 100% with equity.
the estimated 12 year, tax savings to the applicant are 2.7
million of, which the city share is 634,000,
Or 2.0 million and 4770 respectively on a Net, Present
Value basis.
The total estimated net benefit to all tasks taxing
districts is 2.1 million over 12 years or 1.5 million. Npv
The slide shows, the blocking concept for the project
including R&D Labs operations spaces, inventory, storage
office and parking.
Dpd is in support of this project, that will keep a
homegrown Chicago Company in the city.
Preserving 24 full-time jobs and creating over 50 new
full-time jobs.
The project will bring over 12 million in investment to the
west region of the city.
And even what the class, 6, B aate, the project will still
generate a positive net property, tax impact estimated to
be over 2 million.
Thank you for your favorable consideration of this request.
I as well as members of the development team are happy to
answer any questions. The committee may have
thank you. Um our members of the development team here. You
said yes.
Um Alderman Bernett has provided a letter of support for
this item. Are there any questions or comments from the
committee?
Alderman Mitchell.
Yes.
Can you guys come up? So we
Um, do we have a microphone for Alderman Mitchell?
so the first thing here guys, first thing, can you tell us a
little bit of something about nanograf and please confirm
that, uh,
Uh, 1 of our former deputy is on you guys bored. Samir
mayekar.
Um, yeah, my name is Connor hunt. I'm Chief Operating
Officer in nanograf. Uh, just to comment on some your my
car he was chairman of our board uh until February 2023 but
is no longer a member of our board of directors. Um,
As you talk more about the company, can you talk about?
What kind of, uh, what you guys make up? Looks like, you
know, minority, just just give me talk to us. Like we don't
don't know anything about you guys company. Yeah,
absolutely. So we are a manufacturer of Advanced Battery
materials for Lithium-ion batteries. Specifically, we make
a silicon oxide anode material. Anode is the negative side
of the battery. Essentially, what our material does is
makes lithium ion standard lithium ion batteries last
longer on a single charge. So you could think of that
predominantly for electric vehicles. Although our beach
Head Market is the military. Uh, we've had a lot of support
from US Army among other organizations. We've gotten about
35 million dollars worth of support from Department of
Defense and that goes towards Soldier warning power
applications that's mostly radios. Night vision goggles,
those types of devices for soldiers in the field. Uh longer
term, we hope to be in electric vehicles. And that's what
um, this project specifically is geared towards as a
A next generation of material that targets electric
vehicles. Just talk a little bit about the makeup of the
company. Um, 37 employees full-time right now, we hope to
hire another about 50 for this new facility. Uh, we're
currently located in a facility. That's 2 blocks away from
455 North Ashland, we'll be keeping our existing facility
in our 37 employees there. Adding the the facility at
Ashland as well. Um, of those employees, I think we have a
fairly uh, racially and economically diverse mix, we have,
you know,
Certainly the leadership team, everyone in in different
departments across R&D, employees, um, operations
employees, which which I managed within that we have
operators and technicians we have um, Engineers, we kind of
of run the gamut from um, hourly workers, you know,
non-exempt, um, working in in our production, space up to
the leadership team and including several, you know,
Nigel's of PhD. He's, he's the smart 1 here, uh, among the
2 of us. But um, I think within that, we have, um, a pretty
good mix. We, you know, I think we have
Something like 8, female employees. I think we have, you
know, multiple employees from, you know, diverse uh races
genders, anything that um you know, we we do prioritize,
that type of thing. We we take that seriously and I think
that's always been a commitment of ours.
And anything else we can talk about happy to okay? Um
I don't know, I haven't talked to a, um, Jeremy Bernett
about it. Um,
What is you guys?
As far as new jobs, I think jobs that's coming forth. Are
they going to be specialty jobs or regular labor, jobs or
mixture?
A man is a PhD so that's already. It'll be a mixture but
especially for this site, it'll be more geared towards the
operational jobs and technician jobs. So we'll be bringing
on 2 things in this facility, a battery cell prototyping
line, and then a battery materials production line and both
of those require um operators for those lines technicians
running analytical equipment. So it'll be less geared
towards phds and probably more geared towards operational
jobs. Okay. How you guys have anything in the in the
pipeline to kind of reach out to CPS schools to kind of get
some of the, uh,
This kind of Technology, get some of the younger people
interested in it. And my question stems from, I don't know,
if you're in the Seventh Ward, and what more? So on the
10th, Ward, at the USX, we got the iqn campus coming for
Quantum Computing. And we're, we're very adamant about that
kind of Technology being taught or introduced um, to our
communities. Um, so so I kind of look at you guys kind of
the same way since you're going to go up against Tesla to
see how, uh, how you can. Hopefully, we'll sell the Tesla
someday. That's, that's the goal. Um, but you know, I think
it's a great Point. Um, I can't remember exactly which
specific 1. It was, um, we hosted a number of CPS students
in October at our facility, I think about 40 or 50 um for
an event. The type of thing you're talking about, right?
Explaining our technology showing their opportunities for
this type of thing, especially in Chicago. Um, but we're
always interested in doing more of that type of thing. We,
we take being a big part of Chicago and the community here,
seriously, okay. With, with the
Savings of about 2 million dollars, you know, something
that we won't be seeing. Well, we would only see a fraction
of it anyway, but we wouldn't be seeing it. I think the
trade-off would be you guys work.
Get in, get in these schools. Not not just the not just the
well-known schools, like the Payton's, the Whitney Youngs.
But come come, South a little bit, the Kim Woods. The CVS
is the Bowens and, and, and kind of introduced this kind of
Technology um, to to, to our younger. Our younger inner
city kids.
So yeah. No. We we'd be happy to I think. Um we're really
proud of this the existing space that we build. We plan to
be really proud of this facility as well and I think it's
you know, it's good. We we've gotten a lot of positive
feedback from people in the community who see our space. I
think we we would love to do more of that especially for um
high schoolers and and other students who don't always get
those opportunities. Okay. That that's uh well
Thank I look. And if you if you needed some help in doing
that, I I you can I can be contacted through the chair. I'd
be happy to to work with you guys on that. No, that'd be
great. Yeah, we'd we'd be happy to cool. Okay, thank you.
Thank you. Thank you, you too. Thank you. Alvin Mitchell
Alderman. The tunnel.
Thank you, chairman. Um, just a quick question, not against
the industry at all. I think what you're doing is just
Cutting Edge but, um, where that facility is located.
Pretty much surrounded residential as well. What is like
the waist abatement for like a company like this or or the
um, you know, the protocol when it comes to some of your
byproducts or your waist, you know, like is is that
How's that done?
before you answer that, uh, let me, uh, knowledge, Alder,
Alderman, mitts for purposes of
Yeah um at the scale of this facility we are considered a
very low um emitter um both for well we don't generate any
waste water. We uh ship any liquid waste. We have off-site
with a waste management company. In terms of um are
emissions. We are considered a very low um, emissions
company. So um, we are getting, we've gotten our current
facility and we are getting this facility permitted, you
know, through the EPA channels. Um and yeah, we work with a
waste management company to take our Solid Waste off site.
Awesome. I I I know that that Industries heavy regulated to
I mean there's that you can't just go in there and do what
you want. I just I all I ask is always take that into
consideration because you are surrounded by residential and
that would be probably what would be brought to you by the
residents at 1 point in time. Um, again, I do know that
Industries heavily regulated. So just keep that in mind.
Going forward, good luck. God bless you. Thank you, thank
you. Thank you, Alan. I also like to acknowledge all the 1
Mana happening worth for purposes of Quorum. Uh, it did you
guys bring your general contractor to this meeting as well?
Yes. We have uh Marco from executive construction here. Yep.
Um if you can come to the front as well, wanted to ask a
question around. Um, minority business and women business
veteran business Enterprise. Yep. How's that look like for
this new facility? So we are, uh, actually in the process
of bidding and coming up with construction cost. Uh, as
part of our project. We know we have to hit the 26,
minority, uh business Enterprise requirement as well as a
6% woman business owned requirement and that is planned.
And we are, uh, we have contractors that are approved and
listed for the county and um, City level to meet these
requirements, perfect. Okay.
All right. Are there any other questions from the members?
All right seeing no other questions. Uh may I have a motion
to recommend passing this item by the same role call that
was a pleasure to establish forum.
Uh Alderman cardono, so most hearing no objections. Uh so
ordered to do pass recommendation will be reported out the
next city council meeting.
Item 2 on the agenda is a resolution to call for hearings
on the implementation of the enterprise resource technology
system. Um colleagues, the Erp system is an opportunity to,
uh, allow for a um,
Consolidation and and a precise delivery of city services.
And so the first departments that are going to be um part
of the Erp program are procurement HR and finance and the
reason why those are so important is because ultimately
this will how how we will determine some efficiencies in
order to generate savings for the city of Chicago. Uh, the
purpose for this hearing is because this contract was
awarded.
Um, 19 months ago. However, for 19 months the city and the
vendor have been negotiating and as a result of that we've
lost 19 months of potential Savings in the city of Chicago.
So the hearing is really just to kind of get a sense as to
where we're at in this process and trying to put some fire
under both the contract as well as the city to to get this
Erp system up and running. So that way we can realize some
savings uh moving forward. So that's going to be the
purpose of the hearing. We're just voting on the hearing
today. Uh, I will come up with uh, a a date probably in
February March of this year to have these vendors as well
as the city of Chicago's DTI and Department of procurement,
uh, come present. Um, also uh, mentioned in the in the, uh,
public comments around the, um, uh, how the 6 BS, and all
the incentives are are monitored. Uh, both Alderman
Mitchell and myself passed an ordinance couple of 2 3 years
ago that require in a yearly basis. These recipients that
come to this body, to talk about their accomplishments. Uh,
that should be going on in the first quarter as well.
Just wanted to put that on the record. Um may I have a
motion to recommend pass of this resolution to hold a
hearing on the implementation of the Erp system by the same
same roll call vote. There was applied to establish Quorum
alderwoman mitzo moves here. No objection. So ordered to do
pass recommendation would be reported out at the next city
council meeting being that there's no further business may
have a motion to adjourn by the same role call that was
applied to the terminal Quorum, vice vice, um, uh, Vice
chair Mosley, so moves here no Direction. So ordered the
meeting of the committee on economic account technology
development is a, thank you.