Comedian economic capital technology will call to order. We
now have a roll call to establish Quorum. Please use the
iPads provided to you and Mark yourself. Present note, that
your present response will be deemed a. Yes, vote. When the
Quorum calls used as a reference vote for later, Mr. Uh,
monagas. Please, open the vote.
What? What has been open? Uh, please refresh your your
iPads.
Hold on a second. I got I got it from here. Okay.
ladies and gentlemen, we have a quorum
Uh Alderman's Chico Mitchell mitts Hall and Apollo Tano
have requested to participate. In today's meeting remotely
under rule, 59, may I get a motion to allow them to
participate. Remotely ottoman. Cardona motions to allow
almond, Chico Mitchell mitts Apollo, Tano in Hall to
participate remotely. All those in favor. Please say, I any
opposed say, nay in the opinion to charity eyes, have it?
Uh, all the aldermen are permitted to our participate
remotely today. Um, just for verification Alderman, Chico.
I'm here chair. Thank you. Thank you. Alderman, Mitchell.
Alderman mitts.
Alderman Hall.
Alderman, the paletton.
President chairman, thank you.
All right, uh, for today's meeting. Uh, we received 1
written, public comment.
Um, at this time we will be in the public comment period.
Public comments are limited to 30 minutes out of respect
for everyone's Time. Each speaker is limited to 3 minutes.
Uh our our speaker uh, today is uh, Mr. Tawa Mr. Tawan Sims
Mr. Sims.
Um, good morning, committee is this thing on, gotta keep
asking that. Um, so yesterday was the Congressional
hearing.
I guess hosted by the Republicans and the Dems.
Well, they brought Johnson down to the hill. I wonder if he
gonna come back.
I wonder so but it was something that he said that bothered
me, he said that that was 1.25 billion dollars.
Invested particularly in the Black American community.
Um, there's no evidence of that, and if you think of the
failure of that, I'm the evidence of it.
but since we talking about economics and Technology, we can
also talk about the what is it coordinated entry, which is
2 million dollars, 2.5 million annually spent. This is the,
I guess quell, the homeless effort,
But it's not working because I'm the evidence of that.
We could talk about the fact that shot spotter was
decommissioned, but he is so proud, that the number of
murders is down or that crime is down. However, if you
plunge the city into darkness, by taking the 1 of the most
effective tools out of it because they said, oh, it didn't
stop crime. It wasn't 2. Stop crime. It's slated as a shot
or a gunshot detection technology.
It's not, it doesn't have legs.
He even said he said it's a walkie-talkie on a stick.
All it does is coordinate information. Taken away from the
city of Chicago,
But we get to say hey yeah I'm doing a good job.
Let's talk to the officers. Let's talk to the communities.
All these areas that are affected by these things.
but we, he's saying that because of this or in regards to
the sanctuary City,
It's safer now.
There were 58,000 people.
Allowed to come into this city unvetted unchecked.
Does anybody have any criminal history on these
individuals?
Any background on these individuals but the city is safer.
28,000 plus violent crimes in just 1 year added to not
saying the city is in, in, in great standing. We do a lot
of shooting, there's a lot of crime. However, can you
account that to the citizens here in Chicago? Or is it
because of our new arrivals, they're illegals.
All of these areas, but he was so happy.
So proud of the fact that there was only 533 or 500 plus
murders last year.
But he not 1 of the dead people.
And it didn't happen in 1 of these particularly nice
neighborhoods. So all the Englewood Southshore, these areas
these communities that are attacked and plagued with
violence, but since we don't have shot spotter. We can't
account for anything, right? You can't say, well, the data,
this is the impact data.
this is what's really happening in the city so I can go to
and Congressional hearing and say, hey, I'm proud of the
fact that only 500 and some people have been murdered in my
city
Thank you, Mr. Sims
Seeing no other speakers have signed up just that concludes
concludes the public comment portion of our meeting. The
first order of business is approval of the February 2025
monthly report, which all members of the committee should
have received.
Are there any questions or comments from the committee
members regarding the report?
Seeing No Hands may. I have a motion to recommend approval
of the February 2025 monthly report by the same roll call
vote. It was applied to the Forum, Alder woman lie. So
moves hearing no objections. So ordered
Adam 1 on the agenda is a class 6B tax incentive for
property at 10001 West 119th Street. In the 21st Ward Beth
Maguire Economic Development coordinator for the Department
of planning and development is here to present in support
of the item and will be available to answer any questions.
We also have members of the development team available to
answer any questions Miss Maguire when you're ready. Please
begin the presentation.
Good morning, chairman viegas and members of The Economic
Development Committee for the record. My name is Beth
Maguire project manager for the Department of planning and
development.
I'm here today to request your approval of a Redevelopment
agreement between the city and West pulman development
Partners LLC for the purpose of authorizing a 6B property
tax break.
the properties located at
10001 West 119th Street within the West Pullman community
area in the 21st Ward far, south planning region.
The property is on the south side of 119th Street between
Morgan and Racine Avenues.
It's outlined in red.
These slides show the current condition of the property
looking at it from the North. And the South, the 24 Acre
Site was init, was formerly an industrial facility but the
land has been vacant for more than 20 years. The site is
surrounded by other industrial uses.
A solar farm and an athletic center.
The applicant is requesting a classic B, which is essential
to attracting tenants to this location and given the
reduced operating costs of the nearby Suburban counties or
Northwest Indiana locations.
They have purchased the site and will remediate the land
and build a light industrial building, which will be
approximately 413,000 square feet and will be divisible for
multiple tenants. The developer has retained a national
brokerage firm and is actively marketing the property.
The property is the project is expected to cost 60 billion
dollars. And the estimated tax abatement to the applicant
is 3,315,574, they plan to start construction this year and
complete in 2026.
The development team plans to invest at least million
dollars into the site.
With hard cost and site preparation cost comprising the
majority of expenses. The funding will come from a mixture
of equity and debt.
In here is another rendering of the building which will
contain 119 doc stalls, on-site accessory, parking and
office space. The area's home to other light industrial
facilities. So this development will be compatible with the
surrounding uses.
The estimated tax abatement to, the developer is 3.3
million to 2.4 million dollars. Net Present Value over a 12
year period with the city share being 767,000.
Approval of the class. 6B will have many positive effects
for the city in surrounding Community. Such as remediation
of a 24.5 Acre Site that has long been vacant return of 3
formerly city-owned Parcels to the tax rolls.
And keeping the cost more competitive with nearby locations
in Indiana and the suburbs.
The project will benefit the city as well by reactivating a
site that has long been vacant and blighted creating at
least, 50 full-time positions. On a permanent basis and up
to 100 Temps
provide continuing support to the city's effort to
revitalize and stabilize the West pulmonary by allowing a
tax savings.
And supporting minority and women owned businesses
throughout the construction process.
That concludes my presentation members of the development
committee or the development team, uh Leon Walker. And Rob
Rose are also here to answer questions.
Thank you for any.
For your favorable consideration of this matter.
Thank you, Miss Maguire, uh, also Vice chair, Ronnie Mosley
has provided a letter of support. Um, Vice chair. Would you
like to go last, or would you like to go first, any
questions from the members of the committee?
Uh, Alderman, Cardona.
so, what's the purpose of use of the, um,
Industrial building that.
So they are planning to lease to either some sort of light
industrial uh, Cold Storage, um warehousing. That is still
be determined but they are working with uh National
brokerage firm Jones Lang LaSalle to get the property
leased. And if you if you further questions about the use,
I'm sure the development team can chime in
Okay, thank you. Would anyone from the development team
like to chime in
and please identify yourself for the record.
Good afternoon members of the committee, good afternoon, or
good morning. I'm Leon Walker and CEO of do3 rielly
um please to come here and talk to you about this site
today, this is an area that I grew up in as a kid and I'm
actually pleased to come back and um deal with this uh,
site. That's been a blight in the community for a long
time.
It'll be also the, uh, largest uh, industrial, uh,
transaction and deal pursued by a black owned developer and
the city's history.
Um so it's it's a 1 of Pride to come back to the community
to to bring this job Creator. And this uh revitalization
bring it back to productive. Use
And um, I'm happy to answer your question. I think your
question is regarding the tenancy.
Yes. Okay, so uh this is it's it's 1 of the things that's
so um, well-designed by this project, we have the best team
members on this uh, in terms of where Malcolm, which is the
the architect, their National, um, architect of industrial
industrial facilities, uh, we've actually designed it with
flexibility in mind. The 400,000 square feet can actually
easily accommodate, uh, 4 to 8 users.
Um and so we have uh, a number of conversations that are
going um with users. But of course we'd love to land 1
user. Um this is very similar to what you have seen over
the last 10 years in the Pullman neighborhood, which is off
of 94. This is off of 57 West Pullman um which has an
industrial, all these industrial opportunities has not uh
come along as fast as Pullman you know where you have
several um industrial facilities. That started out as spec
facilities. Ryan Companies is currently developing 2 more
now that have recently gone through this committee uh but
West Pullman has been locked up. Uh, the land was uh,
difficult to assemble. Uh, we've been working on this now
since 2018, there were a number of different lots that had
to be assembled. Uh, there were some city-owned parcels
like the 1 where that's also part of this assemblage,
railroad easements, all kind.
Kinds of uh uh barriers to development. And there was also
a huge environmental issue here that we are uh taking care
of
um, so the the tendency can be flexible, um, but it is
going to be uh, industrial and it's going to be uh,
everything from food manufacturers to distribution
Logistics um the businesses of the future, the way we live
and operate in terms.
Terms of we get our Goods today, delivered to our doors Less
Less in the retail brick and mortar. Um so we want to be a
part of that new economy want to create jobs for our
communities, that can be part of that new economy.
Thank you.
Well, thank you for doing that because um, I think it'd be
a great incentive in that West pulmonary for job creation.
And that's what we're looking for. And thank you for that.
Um for a brief discussion about that. Thank you, chairman.
Thank you all my Cardona. Any other members have questions,
All right, seeing none, uh, Vice chair Mosley.
Thank you so much chair. Uh, and thank you to the
development team. Um, it is always great when you have
folks who are homegrown like Leon walker, uh, helping the
neighborhood that he grew up in. Um, this complements the
work that we are currently doing to stabilize housing, uh,
and the West Pullman area that's been LED both by efforts
through Habitat for Humanity and also far south CDC
focusing on the infield housing. Those vacant lots and
abandoned buildings on blocks. Um, I remember in meeting
with community members and they told me, uh, that this was
the remnants of the Rust Belt.
And they remember their parents walking to work from their
home.
uh this is also the city's 10 plan, manufacturing District
that has been vacant for 20 plus years
Um that we are working to bring back online and this is the
Catalyst site. Um so I am so excited. Uh you know that 50
um, permanent jobs is uh, just a reminder that that is not
the selling but the floor. Um, and we're excited about
putting folks in the 21st Ward. Ugh, back to work and
having a property uh, back online that, uh, will spur more
growth and development. All throughout that plan,
manufacturing District. So, thank you so much to D3 and the
great team that they've assembled to do this again, the
environmental challenge. That was here. Uh, um, they are up
for the task. Uh, this is the worst of the worst, uh, and
they have taken the time to, uh, be thoughtful to be
respectful, uh, and to be purposeful in our remediating,
this land and bringing jobs back.
Um,
I it appears that we have 1 more 1 more question, um, the
person with the iPhone,
I'm sorry that the doctor's office. Yes, but I was trying
to get in on the meeting as well.
Okay, so I like to be uh at a to the okay, I'll Ms will go
ahead and add you to the core. Thank you.
Thank you. Thank you and chairman ottoman. Mitch has
joined. Oh and Alderman Mitchell is well. Thank you.
For the committee's favor rule. Uh, consideration. Thank
you.
Any other questions from the committee members? All right,
seeing none.
Um,
Vice chair Mosley has made a motion to recommend passing
this item by the same roll call vote. That was applied to
establish quorum.
uh, all in favor, please say I
All right, you're no objections. So ordered to do pass,
recommendation will be reported out at the next city
council meeting. Good luck.
Thank you.
Um, item 2 on the agenda is an ordinance on a class L tax
incentive for property at 2135 North Milwaukee Avenue in
the First Ward.
A leash Tuffy ornate, coordinating planner for the
Department of Planning and Development. The Z represent in
support of the item and will be available to answer any
questions. We also have members of the development team
available to answer any questions Miss Tuffy when you're
when you're ready uh please begin the presentation.
I guess, good morning committee members.
The property before you is the Congress Theater, in Logan
Square, which was built in 1926 as a movie theater with an
attached commercial block.
It was designated Chicago. Landmark in 2002, the applicant
seeks a 12-year clattell property tax incentive which is
available for commercial buildings whose owners spend at
least 50% of the building's market value on eligible.
Historic Rehabilitation expenses.
The building was last occupied in 2013.
Proposal will rehab the building as a live music venue in
the theater.
Office with supporting offices. 13,000 square feet of
ground floor. Commercial space and 16 affordable dwelling
units.
The development team consists of AEG music, entertainment
company and bomb revision bomb recently rehabbed the remove
a theater in Bridgeport.
Located in the First Ward. The class L is 1 piece of a
larger Redevelopment agreement with the city which includes
27 million in tip, funds approved by City Council in 2023.
we have a letter of support from first board Alderman
laspada, who I'm sure will share his comments on this much
awaited rehabilitation
The proposed rehab work has already been reviewed and
approved by the permit Review, Committee of the commission
on Chicago landmarks.
The exterior work to be performed includes storefront
Rehabilitation uh, the image on the right. We have the
advantage of original architectural plans that will serve
as a guide for this Rehabilitation project.
um,
glazing and doors will be replaced or and restored.
Windows on the upper floors of the building will be
replaced and the new units will match the original design
of the historic building.
4 News stare in elevator, enclosures are approved for
construction. And signage will be, um,
Subsequently reviewed, it's not part of this.
Class.
As I said, the building has been vacant since 2013, the
proposed rehab for work, has been reviewed for by the PRC.
The interior work will consist of Lobby renovation. This
shows, the existing conditions of the building, which has
suffered
extensive water damage.
This plan shows the locations in red where new egress stair
and elevator access will be constructed.
And the circled area in red is 1 of those elevator
overrides, but it will be minimally visible from the
public, right? Of way, it's set back quite a bit.
The orange circled area shows the storefronts to be
rehabbed and the green indicates Windows, which will be a
consistent scope of work across the entire building.
They are meeting sustainability, requirements. 50 points
are required for building Rehabilitation by being designed
to exceed the energy code by 5% and earning the energy
star.
These are some renderings of the Interior areas which will
be a focus of the rehabilitation work. The 2 on the left,
are the main entrance off of Congress into the theatres
main lobby. There will be 2 openings, cut into the
sidewalls that will serve as connection into the attached
commercial block for the supporting uses in those areas of
the building.
and the theater will be um restored with new seating
arrangements, standing and seating arrangements and
historic ornament will be
Restored.
Total project cost is 87.5 million. The 50% investment is
based on the total building, the total market value of the
building which currently since it has been vacant for so
long is 8.2 million. Therefore the minimum investment
required to take the class L is 4.1 million and based on
the project budget and the line items that are eligible
restoration Scopes the team is investing 42.1 million in
class all eligible rehabilitation
The project will produce 200 temporary construction jobs at
125 permanent jobs. Um as mentioned this is also part of a
Redevelopment agreement and the project will be required to
meet the 26th and 6th M ewb participation requirements
Department of planning and development's finance. Team has
produced a tax analysis for the Redevelopment of. This
abandoned property currently the taxes on the site are
321,800 a year.
After the expiration of the 12-year class, sell incentive
in the 13th year.
The taxes will be 1.1.
Million.
Um,
during that 12- year property.
12 year period when the incentive is in place. If the
building were not to be rehabilitated, their taxes would be
4.4 million.
However, with this in place and taking the incentive, the
taxes will be 5.3 million.
So the estimated net benefits to the taxing district is
898,958.
at the end of the day between what they are paying now
currently in taxes and what in the 13th year at the end of
the incentive,
The estimated increase to annual property taxes. Compared
to the current assessment is 729,024.
Staff recommends that the committee approve, the class L
and return. It return, the ordinance to city council for
final approval.
That's the end of my presentation. I do have members of the
project team here and available for questions. Uh, we have
Andrew Scott, who's the attorney on the project and John
Reynolds with bomber vision.
Thank you, Miss Tuffy. Uh, honorable spot would like to
close or open
Would you like to close any other? Any questions from
Members? Follow me on wages back. Sure. Um, so 1 of the
things that we had uh, last year was the
27 and a quarter million for Tiff. Is that correct?
That's correct. And, um,
Part of that agreement included uh, on our on the developer
side to make sure there was 75% occupancy.
Throughout the time of the Tif.
Or was it for like a 10 year period? You recall what that
was just? Uh, please identify yourself for the record. Uh,
yes. For the record. My name is Andrew Scott with the law
offices of De mset. Yes, there is a minimum occupancy.
Requirement, both for the residential units, the the
affordable units which are 16 all affordable units. And
also for the uh, commercial space which as I understand it,
we've kind of set a precedent here with a green that we are
going to offer below Market rates to people that live
within the community within the ward. Ugh to folks that
otherwise may not be able to afford space such as artists
makers things of that nature. So it's really a key
component of this project um that makes it attractive to
the community. So the uh, this tax incentive would. Um, if
any of those portions of that, part of the agreement were
not met. Would that affect this, um, tax incentive
the ret or this, um,
Class the class L. Sorry, occupancy is not a so it's only
tied to the Tif
Correct. Is that correct? That's correct. Okay.
And then we're also doing the low affordability, ordinance,
for this 1 as well.
Yeah, I should also mention that we have Finance staff
here. Um, who can potentially speak to the larger stack for
this and City incentives, okay? So, um, I'd like, if they
could briefly talked to that, so we have Tiff, we're doing
the class l.
And the low affordability and what's the savings on the low
affordability?
Over the 30 years or so of the uh, requested tax savings.
Finance. Did you want to uh, opine and then also just
identify yourself for the record. I Jeff Cohen. Deputy
Commissioner of Bureau of Economic Development Department
of planning, uh, the 75% occupancy is through the entire
compliance period for the Tif RDA and the uh economics for
the 75% of market value is for the uh, leasing for the
retail and office space to the local, uh, groups.
Uh, there was no analysis conducted for the savings.
Of the low affordability.
Um, Automotive spot appointment of information. Yeah, just
uh Ormond wages back for your Clarity. We did not do a low
affordability area, ordinance at their behest. We actually
threw the office. Did 1 for the entirety of our Milwaukee
Avenue Corridor. I think that's why I understand that.
Yeah, yes, yes, yes, uh, because like, uh, we really want
to see more folks, take advantage of that. Um,
So what's the savings for this particular property with the
low affordability?
Ordinance, that was implemented.
So, the low affordability would afford the developer a
30-year.
tax, uh, reduction at 100% for
2 years, the, uh, for 3 years, 100% tax reduction for
um,
The residential.
Outside of the affordable.
But Does it include the commercial?
Or not include the commercial.
It does not, we're doing that separately. So the Assessor's
the, the the statute that was passed. I think it was in
by Governor pritzker, that is only going to apply. No, it's
not. It would the statute was passed, but the aldermen have
to pass the low affordability, ordinance, right? To allow
it to move forward. So what is the savings on the low
affordability?
Total.
For this particular project.
I don't think I mean, I don't have that information
immediately. Uh, happy to communicate it to the chair, uh,
to get you a number. Yeah. So it's just so everyone's
aware. It's 100% for 3 years, 80% for 3, 60 for 3 down to
zero. So if you are asking for this,
That means essentially what we're saying is that you don't
have to pay the taxes that it gets absorbed by a everybody
else in that area.
So what are these savings on this property? For the low
affordability, ordinance, and the finance people should be
able to walk in here and tell us what that is.
I I think we may have, I'm not sure if not, you finance
know, I I understand completely but at the same time I'm
not sure. We're talking about the same thing because what
know we're talking I know we're talking about the class
sell but you're asking basically, you have 3 incentives
from the city, you have Tiff class L and the low
affordability. So I just wanted to know what the whole
package was, okay? Um on this project and the low
affordability, being the again, going back to the state
legislation that allows the assessor to if you provide more
than 15%. Okay sure.
If you could get that through the chair, that would be
helpful. And then also, it was just for the, for the rental
units. Not for these for the commercial. Is that correct?
It's for the market rate. Um, the way it's written up the,
the affordable units
Are included in the whole package. This is how the
ordinance sits. Yep. And this is why I've asked Finance.
To weigh on weigh in on these low affordability projects.
Because if a developer is getting more,
Then they would essentially be paying if they you know they
have to do the 20% requirement.
And if we're saying you get an incentive, that's far beyond
what you're saving on that 20%.
On the market rate. Yeah.
What are taxpayers getting out of this? Gotcha. So my
understanding is that it's 100% affordable. Correct, not
20%.
Okay. Well, okay. Okay.
But this is, so you're saying this is a 100 percent
affordable.
So,
That's what I'm asking. Finance what? What part of the low
affordability would apply to this project.
Uh, I would have to get that back to you through the chair.
yeah, because I think if it's if it's if all if the ottoman
is saying, it's 100% affordable, then maybe that amount is
much smaller but we have developers asking for
Low affordability to pay for entire projects.
Yeah, I think that's a good point. Alderman, not just the
20%, but the entire market rate. Yeah. I think that's a
good point. Uh, we'll get that information, you know. Yeah.
But if it's right, if it's just the affordable, it's 100%
that changes the calculation. Got you, okay?
Finance. You understand what the question is. Okay? Thank
you. We can talk after if you like
Thank you. Thank you alderman.
What's that I'm in support. Okay, thank you.
Any other questions from the members?
Um, I have a question. Um, has the developer identified? A
prime contractor already?
Uh, just identify yourself for the record too. Hello, my
name is John Reynolds of bom, revision. Uh, We've
identified, we haven't signed the GMP just yet but norcon
construction is where we're working with, right? And then
there are familiar with the cities, uh m m and WB. They are
are they are they have several projects that they've
exceeded that. Uh, they do a lot of work with Northwestern
and and other, uh, locations where they need to meet and
exceed that. And then, uh, for the record, this this body
last year. Thank you colleagues passed, an ordinance that
around the affordable affordability, that would allows for
half of that, 20% to be set, aside for veterans. And so,
I'm hoping that you'll be working with dpd closely to make
sure that your marketing to the to the veteran community.
Thank you.
Any other questions for members of committee?
Thank you very much chair. Uh,
To put it in a couple different contexts. There's 350
places in the whole of the city on the national register of
historic places and this is 1 of them, there's a a
particular unique value in this location and as someone who
Walks past it on a daily basis by myself with my daughter.
I'm I'm very, very excited for what we're bringing forth
here. If I didn't feel that way, I, I probably would have
Put less support into it over the last 4 years that we've
been working with bomber Vision on this project so very
excited for that. I I wanted to speak because the the tax
piece of this was brought up if there's a
if there are 2 ways that I think that we will see a
property tax benefit from this property,
number 1, I would say is when we actually permit this TIF
district,
To expire at the end of 2027 which the property tax
benefits, that that is going to bring to Logan Square. And
to the whole of Chicago is immense in and of itself.
But I I don't know that I can overstate the catalytic effect
of this development on the vacant Lots, adjacent and around
it on that stretch of Milwaukee Avenue. There are lots and
Parcels that have set vacant for the last 5, 6, 10 years.
years. That after people understood that this site was
moving forward. That is when we started getting the
Outreach, the interest,
And the impact of that is going to happen on the property
taxes and assessments of properties around them.
There's the benefit of that. I don't think we've even asked
for a calculation on, but I think it's going to be
substantial for the city. So even beyond what we might
consider the tax savings here, I think it is more than made
up for with the benefit that this project brings and the
interest that it brings to the parcels around it. So I I
would wanted to share that for additional context, and that
said I would ask the favorable consideration of my
colleagues.
All right.
Seeing no questions online. Um, ottoman laspada has made a
motion to recommend pass of this item of the same roll call
vote. That was that was applied to establish quorum.
all in favor, please say, I
And the opposition, please say nay, I see none, the due pass
recommendation will be reported out the next city council
meeting.
Please get this project done. Please get this project done.
This has been going on for quite some time. Yeah.
Um, and congratulations. Um, since there's no further
business may I have a motion to adjourn by the same roll
call vote. That was applied to the term alderwoman
Gutierrez. So moves here no Jal order, the meeting of the
committee on economic calendar. Technology development is