I have page 1.
Good morning everyone, the committee on licensed and
consumer protection, will now come to order, we will begin
with a roll call vote to establish forum.
Chair Silverstein is here. Um,
The woman Coleman. Not here. Alderman, Moore.
Okay, he's not here. Alderwoman Scott.
Alderman, Cardona, not here. Oh Alderman. Cardone is here.
Alderman wax back.
Alderman Conway.
Is here.
Alderman via Vegas.
Not here otherwise mitts Alderman spaz.
Alderman Napolitano.
Alderman. Reilly
Alderman Lawson.
Alderwoman clay.
Here Alderman. Martin
511.
11. Okay.
They're 11 members present. We have a quorum
Um, Alderman wax back, make some motion to recognize
Alderman, Chico and Alder.
And Gardner.
Um, to be part of the Forum.
All in favor.
Okay, Alderman, Chico are you here?
Alderman, Chico.
Come back to you and Alderman Gardiner. You're there
Alderman. Guarder is here. Thank you. Chairman. Okay.
Um, at this time, we will begin the public comment.
Sheet.
Hold on 1 second. Technical difficulty here.
oh,
We would, yes.
Alderman, Quinn Alderman, tobars Alderman, Bernette are
here as well.
We have several um people here for public comment.
So we are going to allow 2 minutes per person.
Um, we have 2 people on virtually is a Joseph
Nigro here.
Joseph Nigro is not present.
Is Richard Suarez?
Richard huarez is not present.
Okay.
Then we're going to call. Umm, Teddy Burgess.
It looks like she's coming.
Good morning. My name is Teddy. Burgess
And I've been in Uber driver here in Chicago for the past 8
years.
I'm here today not just as a driver, but as a single mom,
who put her son through Loyola University by driving Uber
and Lyft.
Every ride, I accepted every long night on the road was
about giving my son a future.
But while I've done my part while thousands of drivers like
me have kept the city moving. We've been asked to do it
without the basic things, every worker deserves
transparency, accountability, support, and stability.
Uber recently called a major issue with passenger fees a
glitch.
While drivers deal with glitches all the time but when it's
on our side of the app, we pay the price.
A glitch for us. Might mean getting underpaid for a ride.
It might be being locked out of our account when we need to
cash out for our earnings.
And sometimes it means deactivation for doing absolutely
nothing wrong.
Simply because a document didn't upload.
Or a selfie failed to scan when a glitch benefits, the
company, it's called an error.
When it hurts a driver, it becomes our problem.
And we often have no 1 to turn to.
My son worries about me every day, he worries about my
safety and he worries about what happens to me when I
suddenly if I suddenly get deactivated and lose my income.
And I worry too, not just about keeping the lights on about
whether the companies I work for are being held
accountable.
By the people elected to represent me.
I'm not here asking for favors. I'm asking for fairness.
If drivers are expected to follow every rule, meet every
deadline and keep the system running, then the company
should be except expected to do the same.
Because what's at stake is more than attached, click Text
glitch, it's a culture of looking the other way while
working people fall through the cracks, you have the power
to change that. Thank you.
Our next speaker is.
Is Davis.
Martland, forgive me if I'm not pronouncing your name,
right?
You said it right? Thank you.
Uh chair members of the committee. Uh thank you for uh
listening to me. I'm speaking about the shared housing
Amendment.
Um, I am a uh owner of a cleaning business. We serve shared
shared housing hosts in Chicago. I'm also a resident of the
32nd Ward, constituent of aldermen wages.
Um, we we uh employ 30 people in Chicago. Um, many of whom
are in the United States on Asylum and through us. Uh they
have been able to gain uh, employment and uh, are supported
by the tourism Revenue in Chicago.
um our housekeepers on average earn 20% more than they
would, if they were to work in an equivalent hotel and as a
business owner, it has been an absolute joy and pleasure to
see how our employees have uh progressed and what they have
accomplished by working with us.
I want to talk about a specific example.
Of 2 of our employees.
Uh, their names are Angie and Javier. They are a couple
from Ecuador who originally came to the United States by
way of Texas. And Governor Abbott of Texas. Sent them here
on the bus says, and they spent their first couple weeks in
Chicago.
Sleeping on the couch on O'Hare washing their hair in the
sinks.
in the public restrooms and they'll hair and O'Hare and
doing their laundry in the sinks in the public restrooms in
O'Hare since then Angie and Javier had become deaf have
joined, my company have become de facto leaders of our, uh,
our, uh, organization. They've uh, they've secured an
apartment. And they've recently started a family in
Chicago, all of this is possible because of the tourism
Revenue that comes in,
And shared, uh, with the shared housing host in Chicago.
This amendment as it's currently written.
Does not actually solve the problem of getting rid of Bad
actors in Chicago.
Oh, thank you. Thank you.
Thank you. The next speaker is Zach.
Kora.
Corin.
Okay. Hello. Uh, my name is Zach Kuran. I uh, I own an
operate. Dweller Chicago. We are a boutique uh, short-term
Rental Management Company, where we help, uh, landlords
co-host their properties. Uh, we got into this business,
just to manage properties but to create beautiful memorable
experiences in this incredible City. Whether whether it was
the families visiting for weddings medical patients seeking
seeking Care at our hospitals or tourists exploring our
neighborhoods we take pride in being ambassadors in
Chicago. Since the since the city's 2016 Ordnance, there
are already strict regulations that have been put in place
to ensure. Hosts are being held to high standards including
licensing, guest limits and noise controls.
These rules were designed to strike a balance between
tourism and Community needs.
So, I'm gen genuinely, I'm genuinely struggling to
understand the push for even more restrictions. Why would
we even want to make it harder for people to visit and
experience all that Chicago has to offer?
From our world-class food scene to our cultural
institutions and of pushing responsible hosts out. Let's
work together to enforce existing laws and focus on Bad
actors.
Let's protect what makes the city vibrant and welcoming not
demission, not diminish, it, thank you again for your time
and for your consideration.
Thank you. Next speaker is Sam asil.
Good morning everybody. And thank you for allowing me to be
here. My name is Sam seal and I'm a driver with the
Illinois drivers Alliance. I drive for Uber. I have been
driving for Uber over past, 10 years, I've given over
10,000 rides. Most of my rides are in the downtown area of
Chicago and the surrounding areas in the city.
I am a native of this city, and I love this city, I'm here
today to speak about Uber's mistaken, S, charge that had an
immense impact on everybody on the consumers and the
drivers both. I'm also Captain Sam. I have a master.
Captain's license to the United States Coast Guard Merchant
Marine
And I drive public and private vessels out on Lake Michigan
Michigan and other waters out on the water. Transparency
accountability are huge. It's the law. And I inform
everybody where we're going how much it's going to cost,
what? Any inherent risks are and I informed them on safety.
So it's hard for me to understand that when I'm behind the
wheel of a car, as a captain of my vessel again, with a
billion dollar company. Like uber, they don't share the
same transparency. The reason I became a driver is because
I am grateful to this company. It helped me to support my
family and offered flexibility. I'm a dad and a grandfather
and using Uber, I helped put both of my children through
college successfully.
So when it came out, that Uber had wrongly, been applying
the search charge to, to passengers outside of permitted,
Arbors hours, it affected, not only them, but it affected
us. And me, the passengers took their frustrations out on
the drivers and we all saw our tips declined.
so, when mistakes like this happen,
Is our our reputations that suffer.
Drivers.
And passengers lose trust in the company.
And they're confused and they get upset. And they think
we're part of the problems not about dollars is about
trust. I appreciate you all taking the time to get to the
bottom of this and ensure a mistake. Like this doesn't
happen.
Thank you.
The next speaker is Nika.
Mody mcatee.
Hey, yeah. My name is Nika abroad, and I have a comment
about the first word Municipal Code Amendment which is item
item 5 on today's agenda. I'm opposed to it because I think
More restrictions.
Rather than contributions.
Aren't really?
Where I want to see Chicago going.
um,
The First Ward is uh, reportedly uh, remembered for its
notoriety uh given in in uh Chicago Mafia history right
now, what's happening in the First Ward? As far as I'm
concerned, is a tax exempt entity, which is on North and
Western Avenues.
That is operated as a sex club where puncturing um skin
with sharp, sharp objects is permitted as part of um that
behavior which is a public health risk where in a
post-pandemic moment that is extremely scary. That is what
I wish there were information about, um, I have, uh,
alerted the authorities to the best of my ability. I, uh,
in a journalistic capacity, I've not received any comment,
Uh, all I'm seeing is, um, similar things happening in
terms of, uh, the top-down governance in the first word, as
in my
District Brian Hopkins district with the curfew ordinance
draft which I oppose as well. Thank you.
The next speaker is Jonathan Buckner.
Good morning, Madam. Chairwoman members of the committee.
Thank you for the opportunity to address you this morning.
Uh, my name is Jonathan Buckner and I am the Chicago public
policy manager for Airbnb. I am joined here today by my
colleague, Laura, Daly, who was also with Airbnb. Uh, we
both look forward to working with you to addressing your
concerns as it relates to short-term rentals out on our
platform. Um, and I've had the chance to meet with several
of you already.
Airbnb is strongly opposed to the proposed ordinance
Amendment. Um,
To the short term rental ordinance. As it is, an
unnecessary violation of Chicago and constitutional
property rights. It threatens to destabilize the revenue
collected from the short-term rental stays. And it echoes
the city's dark history in the use of restricted,
residential zones to control. What happens in Chicago
neighborhoods, the existing short-term rental ordinance,
already provides voters in a Precinct with a procedure by
which they can establish a restricted residential Zone by a
petition signed by 25% of their fellow voters in the
precinct. Voters. Have used this existing process nearly
130 times to establish new residential.
New zones. Um, since the law was enacted first enacted in
2016.
There is no evidence that the current process is not
working effectively or that it needs to be reformed as
there have only been 10 new petitions under the law in The
Last 5 Years.
This proposal would replace existing citizen-led procedures
uh with 1 that strips people of their constitutional
constitutionally help property rights
in 2024, Chicago hosts earn, nearly 191 million, which
helped them pay their rent and pay their mortgages.
The proposed amendment would add yet another barrier to
short-term rental hosting in Chicago and threatening a
critical source of, uh, tax revenue. That would be
otherwise growing and used to help City programs in 2024
here being Airbnb, guests played an estimated 777 million
dollars to Chicago's Metro's, GDP
Thank you.
The next speaker is Stephen Everett.
I'm also going to acknowledge that Alderman. OSHA is here
for quorum.
Good morning, everybody. How y'all doing? Thanks for having
me today? Um, my name is Stephen Everett. I am a Uber
driver. I'm from the southeast side of Chicago, um, just
like y'all hear some of my colleagues. Talk about the
glitches and Uber. This is a huge problem. Y'all. This is a
a, a huge problem I've been driving Uber for 10 years. Um,
I'm pretty much 1 of the veterans from the beginning.
And I own an app myself. I don't even have as many
resources as Uber and we don't have as many glitches as
they do. This company is a trillion dollar company billion
dollar company and they have these glitches. These glitches
are by Design. I'm telling y'all. This, these glitches are
by Design. They can fix these things at a press of a button
button, but they don't fix them. When I go through a toll
and then they say, oh, it was a glitch, I have to pay for
that toll. Uh, and then the pass the passenger don't have
to pay for it. Nobody else have to pay for it, but the
drivers that's 1 of the glitches. And then as you guys
know, the glitches that they have, and the and the times
where they're not supposed to charge passengers fees, but
Charging passenger speeds. That means less tips for me
because the passengers think that I'm getting all of that
money when Uber is taking all of that money, this is a
huge, huge problem, and it's been going on for for years
now. This is by Design. What is they doing with that money?
We are here today calling for an investigation on this
company because they are taking advantage of the fact of
these glitches. This is a this is a huge issue. So I'm
calling for all of the members here to just call and
investigation on this company and you will find that they
are doing these things on purpose. Thanks.
Thank you.
So I'm having a very difficult time reading the next name,
so I apologize in advance, but I think it's Joanne.
Wing from Tripp.
I got a. Did I get it right? Yeah, go in whirling. Sorry.
Joanne, whirling representing JBL Petty cab. Um, I am here
to encourage more discernment with the city of Chicago, in
terms of pirated versus non-party drivers, pirate pirated,
Petty, cabs, or Petty cabs without licenses without plates.
Um, Chicago is the only city I have ever worked in the
United States where
Drivers are afraid to display their permits where we are
scared to follow the city rules and um, display our
licenses. Uh, my comments are not to say that I dislike the
police. I like the police, I'm a fan of order. I am a fan
of systems so that is not at all. What I am saying in these
comments. However, in other cities such as Orlando, Florida
and Phoenix, we are able to work with police departments in
departments in Discerning illegal drivers and get rid of
them more effectively, uh, this city. Uh, I've I've seen
far
Far better treatment of illegal drivers than should be
permitted. Um, illegal drivers are
Um, have more access to the city. Uh, so I I would just
really encourage the city to work with us in getting rid of
these people. We see a domino effect of behavior when
non-permitted drivers are allowed to work as they wish
where they wish and it creates a domino effect of Behavior,
Uh, because when 20 or 30 people don't have licenses and
get away with it.
You know, uh, hands in the air at that point. Um, and
That's really all I have to say. Thank you for letting me
speak. Thank you.
The next speaker is K.
Band deck.
and,
Good morning, chairwoman Silverstein and members of the
committee.
My name is Kai bandali. I am a proud, chicagoan Beverly,
resident, first entrepreneur, and my family. I'm an Airbnb
host. And most importantly, I'm a CPS mom to a teenage
student athlete who eats like a grown man and trains like 1
2.
As the cost of living Rises, responsible hosting isn't a
luxury.
It is a Lifeline for me and my family.
But this isn't just about my family.
It's about this city.
Travelers spend where they stay.
And I proudly send guests to our local coffee shops salons
restaurants restaurants. Even the Taylor down the street.
The contractors, I hire are my neighbors.
Hosting fuels, our local economy.
The proposed amendment claims to protect neighborhoods.
But suggests that short-term rentals are tied to crime and
declining property values and that just is not true.
We're not driving Citywide crime. And in fact,
Study. After study shows that short-term rentals have
contributed to Rising property values
I don't know who these hotels lobbyists and special
interest groups have in their back pockets.
But I urge you to look past the fear tactics. We are not
faceless corporations where the little guys we're small
business owners, parents neighbors, people who want safe
thriving communities just like you do.
To close.
This amendment would give sweeping power to 1 person.
to decide who I can rent my home to
A personal property for which I am solely responsible for
the mortgage, the taxes, the water bills. The overall
maintenance, this is not sensible regulation, it is
governmental overreach a profound infringement on personal
property rights, and it's simply wrong.
I,
The next speaker is Hannah.
um,
on Sheridan Road.
Good morning. Uh my name is Hannah palacu and I am here,
representing Easy Rider Patty cabs and the larger community
of licensed Patty cab drivers. Uh, we have proudly served
the city and visitors for over a decade. Offering a very
unique and personal way to experience the heart of Chicago.
Um Petty cabs, offer some Unforgettable and unique
downtown. Uh, in recent years, we have seen a serious issue
in the rise of illegal and unlicensed, Petty cab operators.
Uh, I would like to just largely e Echo, the sentiments of
my colleague Joey,
These unlicensed Petty cabs, do not carry insurance.
They do not register with the city or pay for proper
plates. Many lack valid, driver's licenses and chauffeur's
licenses. They operate with no oversight, no accountability
and often engage in dangerous or predatory behavior.
Price gouging fleeing accidents and damaging the reputation
we have spent years building as a community of
hard-working. Petty cab drivers, like Joey, I have Petty
cabbed in several cities around the United States, but I am
from Chicago and I have never seen a problem of unlicensed
Petty cabs, like I have seen in Chicago.
As a result, our industry is suffering legal. Drivers are
being over. Policed while illegal drivers are being allowed
to operate with. Again, no accountability. Posing risk to
tourists, and to Residents, um, this is why we urge you to
pass this legislation and enforce the seizure of illegal
Petty cabs. Um, refocusing our
uh accountability on those illegal Petty cabs because much
like myself Joey my colleagues we really would like to see
the industry move back to a place where we have more trust
with both the police and the public.
Let's protect residents, let's protect tourists and let's
protect the petty Gap operators, deeply invested in doing
things the right way. Thank you. Thank you.
And our last speaker is George Blakemore.
Okay, he's not here.
So at this time, um,
This concludes our public comment.
Thank you to all of our speakers here today and we will now
get started on today's agenda.
We have 11 items on the agenda today. The first item is the
approval of the rule 45 reports for May 2025, which were
sent out.
To the committee.
Alderman, Reilly moves to pass all in favor. Say I any
opposed and the opinion of the chairs, the eyes have it.
The reports are approved, second item.
Is 02024 D. 00000 8954. A substitute ordinance to amend
chapter 4-7 of the Municipal. Code by modifying procedures
for a designation of restricted, residential zones and
allowing residents and zones to petition for repeal
of this designation.
We first have to recognize the substitute ottoman Riley
moves to pass all in favor.
Any opposed and the opinion of the chairs of the eyes have
it, the substitute is before us. And, um, I'm going to call
on Alderman Napolitano, but I first want to express my
condolences to you for your loss.
Thank you.
Thank you very much, Madam chair. I appreciate that.
Um,
thank you colleagues. Thank you. Madam chair for hearing
this today. Thank you for my colleagues for being present.
Um, I guess I'll just jump into it. So what what what we're
trying to do here is, if you look at this ordinance or
actually this amendment 9 years ago, in June of 2016,
short-term rentals came into the city of Chicago
Since then, nearly every city official, I spoke with
pertaining to the current active ordinance stated. It was
rushed in 2016 and it was done extremely sloppy and left,
zero regulation to the industry itself.
Since then I've worked vigorously with bacp the city's
legal team and our good friends at lrb to introduce what we
see today, which is simply an amendment to this existing
ordinance. And what it does is it cleans it up a bit.
The past 9 years, the short-term rental industry has had no
answer other than hotlines and liaison for Community
problems. When it comes to short-term rentals, there's no
teeth in any of the uh, solutions that they've they've
proposed
The short-term rental industry runs in real time
unfortunately. And what I mean by that.
Is in real time.
When an air when when a short-term rental person comes in
on a Friday night and throws a, a rave or a party, that
brings a large volume of people with that comes vandalism
Community disruption fights. And in some cases,
unfortunately, stabbings and shootings
and then the next day,
On Saturday, that party is gone.
The liaison and the hotlines have zero effect on that
ongoing problem or that that problem that's happening in
real time.
What we're doing? What we're we're told to do is to call
911. Now the industry's problem becomes a police problem.
And unfortunately, in today's time, our police have little
no powers and when they find out that this location is a
legal short-term rental, the jobs are usually just coded
out and the officers leave
But unfortunately, after that creates an emboldened Pro
problem to the party, which gets a little bit more crazy
and out of hand.
And that's then result that we see is as as alderman for
awards.
There is truly no short-term, rental industry solution to
our community problems as the way. It's written right now.
We are the elected legislators, but when it comes to
short-term rentals, we cannot advocate for the safety of
our residents or our Ward.
But yet, our residents are told to take care of the problem
themselves.
This is the only and I want you guys to focus on this. This
is the only ordinance written in the city of Chicago.
Well, where there's a problem with an industry, the onus is
put on our residents to fix it.
When our community suffers due to short-term rentals, we
have to tell them as electeds, that they have to go collect
25% of signatures of their Precinct in order to submit it
to the clerk's office in hopes to have that Precinct
closed.
So that the industry can calm down a little bit and there's
to be a little bit of Peace in that community.
That's nearly 315 in some cases. I'm sorry. 250 in some
cases 300 signatures that have that need to be collected by
the residents of that Community, while we are elected,
while we are being paid to represent them,
like I said, we are the elected. This is our job.
We're supposed to advocate for our residents.
Our Amendment simply flips, the current process, it allows
Alderman to close Precinct by legislation. Mirroring the
legislation already written, in our liquor moratoriums
and the short-term industry has the ability.
To raise that, that closing of a Precinct. And what we did
too is, instead of them having to get 25%, like, our
residents had to, we lowered it down to 10% to be fair, to
the industry and give them the ability to to open it up.
To to, to still have short-term rentals.
1 thing I want you to know today is If you vote on this, it
is not. And I and I quote, it is not a blanket ordinance
that goes over every single ward in the city of Chicago.
Precincts, do not all closed automatically but will need to
be closed individually or not at all.
By many of my colleagues were that have no problems?
In addition to closing these precincts aldermen have the
right to open them back up. So if the issues have subsided,
and the problem house is are gone or problem. Rental
locations are gone. Besides the industry, having the
ability to submit the petitions to open it back up. We as
Alderman like a liquor moratorium have the ability to open
it back up as well and to let short-term rentals come back
in.
um,
another very important fact here, this ordinance does not
have any effect on any current short-term rentals.
they are grandfathered in if voted in today in committee
and it goes through Council, anyone that is registered in
the city of Chicago is a short-term rental,
Is grandfathered in and will not be affected.
if you vote for this,
if you, if you voted
if you vote for this today, you don't have to act as an
alderman tomorrow when it comes to your precincts, if you
have no problems,
This amendment.
Will not hurt the industry to be, frankly to be frank many
of us use the industry. It just gives us the ability as
elected to advocate for our Wards now where we couldn't in
the past. So all I'm asking for you to do, is to look at
this know what issues you may have, as an alderman in your
ward and you have zero zero teeth in the game, to represent
your community.
It's all, it's all put on your residence. If you don't have
a problem, this doesn't affect you at all. If you do have
problems spots, it gives you the ability to attend to those
problems spots.
I just would like to finish with.
I I I like the the conversation I have with the industry.
and I, I mean the industry as a whole but my my problem is
What I, I brought to point in, in the beginning of this.
If you're giving hotlines and if you're giving numbers to
call it's really not.
A solution to a party that leaves the next day. It really
puts the onus on us as Alderman to take the brunt of the
argument or the discussion from our community because we
could do nothing about it at all.
This just gives you a little bit more strength in your
community to make sure they know you're protecting them.
However you possibly can. Thank you. Madam chair. Thank
you.
Are there any questions from committee members?
Alderman Moore.
Thank you so much. And and I appreciate, um,
Automatic for bringing this floor, forward and and artemy
have my condolences and keeping you in prayer. I signed on
to this and um it was important to me because I have some
of the same concerns. Um, however, I I need to ask some
questions and I I hope um, bacp or somebody here is
available to answer because some other information have
come to light, um, outside of what we call Airbnb. If I own
a, um, resident. And I, and I want to rent out
a room, which I we have some of that or
if we have, um, other spaces like, um,
Whether it's our basement. Uh, I forget what we call it.
I'm having a brain. Cramp this morning. Um, the other
spaces that we have in our, um,
Apartments are those impacted by this ordinance, in any
way.
Or this amendment, I'm trying to. Yeah I I can definitely
answer that. So if, if that's a rental agreement uh as an
apartment, it doesn't even fall under the same category as
the short term rentals. If they're not registered as a
short-term rental with the city of Chicago and that just is
a apartment rental between that's that's more of a
long-term, rental, maybe monthly or yearly. That doesn't
fall in the short term. Short term is is created as a you
have to register B you're you're seen as maybe a rental for
1 to 2 days so it's completely it's a completely different
industry than what you're asking all. Okay. So not
Hold on.
and so,
It's okay, it's okay. And so again, I thanks for answering
that question on the rental part and I want bacp. Are they
here?
So we can have, um, they are not here right now.
Okay.
And I'm at I'm also asking from the standpoint of if
someone's renting out there a bed room in there,
House it that could be for a year.
Um, it's usually most people do it for a year or they rent
them out a little longer.
Is that impacted because I got people that rent out bed
rooms for long periods of time. And I just want to make
sure to see if that's impacted or not to answer your
question Alderman. It's it's absolutely not if they're not
in the registry as a short-term rental, that doesn't even
apply to them. They're renting as like a room rental kind
of on a lease agreement. For a monthly lease agreement
between a homeowner and a family member or maybe not a
family member, this is an industry that has a registry that
you have to be a part of and if they're not in that as what
that rental, it doesn't apply to them at all.
Okay.
Well, unless somebody want to dispute that um I'm I'm in
support of it. That was my only um concern
Thank you Alderman. OSHA
Thank you, chairman.
um,
I I think we really should have someone from bacp here. We
can get somebody on the phone to, uh, to come up. Um,
Several years ago, I worked with the uh, Emanuel
Administration, uh, when short-term rentals came to our
city. Uh,
and,
There's a significant Revenue Source generated from this.
That supports domestic violence.
Um,
I work closely with wings um the largest organization that
assists families uh from getting out of terrible
situations.
And uh I believe the number raised from this is somewhere
north of uh 3 million possibly as high as 4 million
generated uh annually.
Again.
This helps.
Families.
Particularly women and children in horrible situations, get
out.
Have we thought of how are we going to replace that? I'd
also like to point out.
We do last supporting domestic violence today than we did
just 2 years ago.
Um,
so I I I I'd like to know if someone can give me that exact
figure what potential hit, that could be, would that be
immediately? Would that be a year 2 years out?
Um that's concerning to me because I would be 1 that would
raise my hand to say we need to do more.
To support.
Fighting domestic violence, which is a growing problem in
our city.
um, and then secondly, um,
I think every 1 of us in this room on some level has had a
problem with short-term rentals. Uh, I myself have
I've worked with neighbors, uh, not at the capacity, that
my colleagues Alderman Quinn and towbar have, uh, to
address problem areas.
But it's been my experience. Um,
working with Airbnb, uh, that when a problem is identified,
That it's addressed.
Um, I've also received uh,
several uh, emails from residents of my community. That
Share their home.
Uh, and that this is
You know, there, there are short-term rental operator and
this is problematic. Um,
Where this could continue to happen in communities.
um,
It's been my experience that particularly Airbnb has been
very responsive when I brought an issue to them. I I
literally I brought an issue to them last week. I had, um,
a short-term rental that was used as a prom party.
A prompt party that had a 100 people out in front.
It was addressed.
Quickly. Um,
My concern is that.
What could the long-term effect be?
and if, uh,
if more of us had a better relationship working more
closely, um,
With.
Shared rentals, uh, short-term rentals. Um, we could get
these problems addressed as opposed to just a blanket uh,
ban. So that that's a 2 points. I wanted to bring up, but
uh, I very much would like if we could get someone from
business Affairs, uh, up here.
Or down here.
Uh, they're not here right now if we can't get them, I will
get that information to you from the chair.
Do you have any other questions because we can come back to
uh, know this. Those that question and that point, uh, 2
things I wanted to convey
Ottoman Conway. Yeah. Um,
So I, you know, I know all of our Awards have the same
population.
Um,
our mine is is some more compact.
Is only 20 precincts. Um and as a result every Precinct has
2750 people that live in it.
and it seems the ability to
ban that for that many people see, uh, you know, seems like
a, a
huge issue of of, uh,
it seems overbought overbought of an issue. So our question
I have is, you know, noting that we do liquor moratoriums
in like 2 block stretches. Why is this happen to be a
Precinct level?
Potential ban and I and I don't know who to address that to
me the sponsor.
Do you know that or? Yeah, that's, that's the way. The
original ordinance was created, um, for for your residents
to do it as well. It was done as a as a Precinct ban.
Do when when the ordinance was, was written in 2016. Um,
the only
The only strength in it to, to help out an area that has a
problem spot is was done by Precinct. So they told them
that 25% of your residents, not you, as a legislator, 25%
of your residents have to collect signatures that have a
problem with that, in, in that area. And they have to
submit it to city clerk's office, which later goes to, to
to committee, then to city council for a vote. So we just
follow their same ordinance that they've had for the last 9
years and just changed it. Um, so that its flipped, whereas
in they instead of having to get 25% on the residents which
was torturous, we lowered it to 10% to the industry, um, in
the same Precinct that that our residents would have done,
Uh, you know, I think a little bit of what Alder Moshe was
getting at. I do have concerns about the
Infringement on property rights without significant due
process with regard to this and I and I am also concerned
that um that we could better regulate this without simply
Banning it from from entire precincts. So that's that's at
least where I'm at on this. And I'm happy to hear response
to that, but I do also think we need to hear from bacp on
the economic impact of this as well.
Can I, can I answer that really quick too sure.
An infringement on on property rights. I, I totally get
that, but
We're voting in committee for the last 9 years, on that
same exact infringement on property rights, when a resident
goes out and gets 25% of signatures for the precinct and we
close that precinct for for Banning. So
it's the same exact process that was done in the past that
many of us have voted on and committee and the city council
to close a, a a Precinct, it's just flipped.
it's just a flipped process right now, so nobody had that
problem, 9 years in the making, until now,
So I'm I'm confused by that.
Alderman Lawson, are you finished? Yeah, yeah. I I'm
finished. Thank you. Yeah. Okay. Alderman Lawson. Uh, thank
you, madam chair. Uh, maybe I'll just start off with the
documents that were sent out by committee. It looks like
there's 9 million in gender-based violence that is going to
from the
shared housing funds into our
Into gender based violence. It's double that which we spend
in the corporate funds. Um, also just for all the and more
uh question having done a little work on this, um any
short-term rentals are identified as 30 days or less. So
anyone doing a month-long lease is outside of the scope of
anything with short-term rental, um,
So that being said, I have a couple questions just for the
sponsor real quick. Um, on the ordinance itself. I see that
it's the ordinance can restrict
Either all new.
Listings or all new listings that are not owner occupied?
Am I reading that, right?
All new listings or all. Yes, it's it cannot affect anyone.
That is that is already operating um, prior to us floating
on this. So I mean though if I could restrict those to the
new licenses only to those that were owner, occupied is my
read of here. Let me find it. I'm sorry. What's your
question again?
Let me just pull it up in the ordinance, 1 sec.
So, it's on.
Apologies.
Page 1, uh, 1417015. Um,
Identify the precinct boundaries is a b say whether the
ordinance prohibits and in what combination? The issuance
of 1 all new or additional shared housing units or vacation
rentals or both or 2 all new or additional shared housing
units or vacation rentals or both, that are not their
owner's, primary residence.
So my read on that is I could say, okay, nothing new unless
you're it's the owner's primary residence.
I'm going to if possible, let is Mike, call it to to answer
that. Is for me, go ahead.
Hi, uh Mike, I'll let legislative reference Bureau uh,
that's correct Alderman. But it's actually that's the
current standard as well. So if you go to page 2 in
section, 40b, you'll see the stricken language. It was just
moved over to a new section, okay? Um, I think most of us
haven't dealt with, we haven't dealt with this yet, um,
uh, the other question I had is it also makes reference to
residentially zoned property, and this may also not be new
but does that mean that anything that is shown B or C is
exempt from any new or is exempt from this ordinance?
Or the restrictions.
That's correct. It's um, that ABC and D of that section are
verbatim from the current code.
Okay. So that's a lot more nuanced than I think we've we've
been talking about or that that maybe I've even realized um
until shortly ago. Sorry. Um
So again, I think this is 1 of those situations where I
have a lot in my ward. Um, I passed an ordinance last month
that would give us more information, so we could better
understand this universe. I, I told the sponsor of this, I
wish we had a little more time to percolate maybe before we
move forward, but I also understand that single family
zones are different than multi-family zones when it comes
to this. And the problems I've had have largely been from
single families, too. We're, we're No, 1 is home.
There's No 1, keeping an eye on things. So, um, no. I
appreciate the time and thank you, chair.
Thank you. Any other questions from committee?
We're gonna move to non-committee members.
Alderwoman tobars.
Um, I just want to thank you. Chairwoman Silverstein for
allowing me to speak in in your committee. I'm here because
I strongly support Alderman. Napalitan was ordinance. Um,
I strongly I I want to thank you alderman apalon for
working on this issue.
Um,
You know what this all comes down to is the health and
safety of a Chicago neighborhood.
You know, when we talk about neighborhoods, we're talking
about homes.
Where people live in areas their families.
Neighborhoods. Like the 1, I represent on the southwest
side are not vacation hotspots.
They're single family homes that Working Families, work
hard to maintain and improve.
And these short-term rentals disrupt this neighborhood
cohesion. And I've seen it firsthand
My ward is an especially sought after area for developers
looking to set up short-term rentals.
My ward is right next to Midway Airport.
And all you need to do is to look at the listings to see
how valuable airport proximity can be for these properties.
We've had had an extraordinary number of calls for service
at these short-term rentals.
Instances of public urination, noise disturbances, large
galleries, litter and drug use. Not only flood my ward
office, but also cpd's, eighth Police District.
At 1 point in my ward, we discovered a short-term rental.
That was being rented and used as a meeting place for
participants in the car. Caravans that have resulted in
shootings auto crashes and property damage,
It's taking years of working with bacp to try to address
these issues because the law is on the side of the property
owner, not the residents who actually live on the Block
The deck is stacked.
Now there is an entire business model for leveraging our
neighborhoods, to line the pockets of these property
investors. And we're not talking about a family that is
listing their home to make a little extra money.
We're talking about entire firms that are aggressively
buying properties in single family, home, neighborhoods to
renovate and rent them on a short-term basis online.
Recently my neighborhood, including myself, have received
mass text messages asking if we're interested in selling
our homes to a developer
these texts are Then followed by m, multiple phone calls,
multiple multiple times a day, all trying to get in on the
scheme.
So we're not talking about Mom and Pops who have an extra
flat that they want to rent out for extra money.
we're seeing entities wealthy development firms who have
access to our personal information, they know our phone
numbers, they know, our home addresses. They know our
names. They are aggressively targeting neighborhoods to
scoop up to scoop up properties to rent out. They have zero
zero interest in the overall well-being of our
neighborhoods, as long as they can line their own pockets.
It's these practices and these experiences which led me to
proactively ban, most of my ward from short-term rentals.
Our residents don't want it.
What these residents want is the ability to have input on
decisions.
so to my colleagues, what I say to you is if you're open to
to short-term, rentals in your community, regardless of the
long-term impact on your neighborhoods, don't take
advantage of it. Don't ban them in your ward.
but for any Alderman interested in constituent Services,
Public responsiveness and keeping their neighborhoods,
peaceful for their residents, this is a vital issue that we
need to get right.
So, I urge my colleagues to vote. Yes, an alderman. Nepal's
ordinance. Thank you.
Okay, I know we have Alderman Quinn but we're going to go
to Alderman Reilly who's on the committee so you don't
mind.
Okay, sorry Alderman Quinn. Uh um I wanted to just pick up
where Alder Alder won and towbar left off. Um, I'm probably
I think I've probably written more parts of the code that
apply to a short-term rentals that anyone. Um, this was an
issue, actually before Airbnb and VRBO and others uh other
platforms were Incorporated. Uh, a lot of these short-term
rentals were occurring on Craigslist and other online, uh,
forums and I don't represent a ward with lots of single
Family homes. I I represent exactly the opposite much more
like ottoman Conway's Ward where it's incredibly dense in a
vertical.
and I can tell you um I I understand the impacts that this
can have Airbnb can have on neighborhoods and single family
homes but it's actually
on steroids when it's happening within a 400 unit
Residential Building. Uh, what we see downtown is that
those folks were not properly managing their, their their
rent. They're nightly rentals. Um, the guests are, uh,
taking over common areas, uh, pool decks lobbies, uh,
Fitness rooms, Etc, um not abiding by the homeowner
association rules and with the late night parties and noise
complaints Etc.
God help you if you own a condo next to 1 of these nightly
rental units. And so, a lot of the original Provisions in
the code, are there because I I put them there with, with
the help of you all as my colleagues. Um,
I could tell you that there are tools in the books today and
I think they can be improved. And I think Alderman, napala
Tano's ordinance would be a big help.
um but I've never availed myself of the uh, making a
Precinct quote unquote, dry of nightly rentals here, even
though that those tools exist. Um, I think that we've done
a pretty good job. Getting this issue under control in the
42nd Ward. Um, but I'm incredibly sympathetic to those
folks who um continue to struggle with this.
And again I think it was a good point made by ottoman
tabaris. Um, this is yet another tool in the toolbox and
for those Alderman who are more sympathetic to Nightly
rentals, who have constituents who are doing this, right?
And are concerned about this, don't Avail yourself of this
tool, um, that's that's your option as the legislator. This
is not a blanket ban, it's not automatic it requires
automatic action.
Um, and so in that regard, I think this is a responsible
ordinance. Um, that said I I do understand that this
provides revenue streams for important programs that
ottoman OSHA, uh, noted, um, and I would like to know the
fiscal impact,
Uh, that said, um, we may be able to find other ways to
replace any lost revenues here.
Um but again this is grandfathering in existing properties.
So this is really to try and put a cap on future growth in
future growth in this industry. And some ultimate may think
it's appropriate to allow it to grow in their communities,
and that's that, that's fine. And and frankly that's their
prerogative, um, but the current process that we've watched
ottoman Quinn and ottoman tabaris go through in their
Wards, um, to free their communities of what their
constituents consider to be a nuisance, um, is an
incredible amount of work, um, for the neighbors, and their
constituents, and it shouldn't be that difficult. And so,
for those Alderman who've heard loud and clear from their
constituents, they don't want this.
This is I think a a speedier tool to achieve the result
they're looking for and I think it also bakes in
protections for those folks who want to try and reverse
this process. Um and so I'll plan on on voting for this
ordinance. And I say that
with the caveat that I, you know, I believe that this
industry has become more responsible.
Um, but in some cases, it is still an undue burden on the
police department, who are incredibly overworked and in the
grand, pecking order of enforcement priorities. Having the
police nightly. Rental property should not be high on that
list given all the other challenges we're facing as a city
when it comes to Public Safety. Um, so I'll be voting. Yes,
thank you. Madam chair. Thank you Alderman. Quinn.
Thank you, madam for your patience. Um,
I wanted to offer my condolences to Alderman, Napolitano,
on the passing of his brother wanted to say that publicly,
um, and thank him for bringing forth this ordinance. This
is something that I know he's been working on for a number
of years. Um, I'd like to shed some light on what took
place in 2016 because I was here and I actually
Bought the fought, the Emanuel Administration on.
The opt out opportunity and I could tell you unequivocally.
It was an afterthought. I wanted to do opt out by zoning
classification. Um, at the time, they said, we have the
votes. Here's here's, uh, here's what you're going to get
and what the opt out that we got today, ladies and
gentlemen, is
First.
A resident of the precinct has to file a declaration of
intent to opt out.
At the time, they had to come down here. So from
the southwest side of Chicago, it's an hour 1 way.
To get the ability to circulate a petition.
And capture 25% of the precinct signatures.
And 90 days.
25%, 90 days.
And then if you're lucky after the city clerk reviews the
petition, the local allerman could file an ordinance.
To opt out. But that process as we all know in lawmaking
takes time all the while
The local residents are stuck dealing with the problem at
hand.
and so I share, uh, all of the, uh, remarks that all of
them, all are in a politano and all the Roman to Baris and
Alderman Reilly have made, uh, that this is an additional
tool and we talked about creating Tools around here quite a
bit. Most of which frankly have have and will continue to
collect dust. Uh, but this 1 in particular is a good tool
that could be utilized for the Bungalow belt of the city of
Chicago. So, uh, I would encourage, and I vote, uh, on
Alderman, Napolitano ordinance, thank you. Madam chair.
Thank you.
Are there any other comments?
on Riley moves to pass all in favor, say I
Any opposed.
I'm opposed.
Conway is a know, um,
Noah is a no.
um,
The and the the eyes clearly have it. So this motion is
passed. Thank you.
And I'm going to recognize all a woman Coleman who's here
for quorum.
Um, the next item on the agenda is 02025 D, 000171, 91.
ordinance to amend chapter 9 of the municipal code
regarding impoundment of petty cats.
Um, we do have a substitute
Alderman Napolitano moves to um, accept the substitute all
in favor. Say I
Any opposed.
And the uh, substitute is before us, and we are going to
call upon the sponsor Alderman. Reilly
Um, to explain to us the changes.
Um, thank you, madam chair and, and colleagues, and I want
to thank the, uh, Petty Co operators. The licensed Petty
have operators that showed up in committee today to voice
their support. Uh, for this ordinance. Um, as I think was
eloquently explained by our our, our public speakers during
public comment.
Um, there is a growing problem with the petty cab industry.
Uh, we have 200 licensed Petty cabs in the city of Chicago,
um, who are doing their very best to comply with our rules
and regs, they're paying their fees, they're licensed fees.
Uh, they're posting all the required documents, they're
getting their insurance. Um, and and maintaining
vehicles as city code requires.
um, but as was noted,
hundreds of unlicensed Petty cabs, um, that have flooded
this Market.
and because our our license Petty cabs have um, actual
license plates on their cab with, with decals and
their neck, or on their person. Um, it's just been much
easier for our inspectors to Target our licensed operators.
And to be clear, there are license Petty cabs that do from
time to time, break rules, uh, and violate the ordinance,
but the much much bigger problem.
And the value of a City license for a petty cab only
exists. If the city is doing its job to properly, regulate
and punish those who are flouting our laws who are not
registering their vehicles, who are not getting the
required insurance. So that God forbid, there's an accident
and their patrons are hurt.
That things can be covered.
Um, we also know that that unlicensed Petty cab operators
because they have no interest in complying even with our
basic rules and regs, uh, are completely ignoring all the
other, all the other rules, we have on the books for petty,
cabs, where they can operate when uh, how loud, they can
play their music. And for how long, the number of
passengers are carry in their vehicle, Etc. The list goes
on and on.
and I can tell you, as the author of most of the code that
applies to Petty cabs, um, when we wrote many of those
rules and regs, all those years ago,
I was not a big fan of this industry.
Um and I'm sure that my face is on the dart board of many
Petty cab operators around the city for that very reason.
Um, but what's changed is I've actually spent time um,
talking with and listening to
Licensed Petty cab operators and I can tell you, um, I have
Newfound sympathy uh, for these licensed operators. Um,
they are operating in a very difficult environment. Uh, we
only have so many good weather months, a year here in the
city of Chicago. And this season, it feels like we even
have fewer because it's been raining, nearly every day. Uh,
it doesn't feel like summer yet and here we are in mid
June.
And these folks are hardworking.
Um, they are as far as I can tell, and in the cases where
I've met with these operators, they are trying to comply
with our rules and regs and and and adhere to our laws, but
they're incredibly frustrated. Um they feel that they're
being specifically targeted because frankly they're easier
to Target. They have a license plate that inspectors can
take a picture of. And then different violations can be
issued. Um while unlicensed Petty cabs are literally
laughing at the city of Chicago.
And the licenses because they're not playing by any of the
rules and they're making lots and lots of money at the
expense of licensed operators. And so this ordinance is
intended to really
Specifically go after these unlicensed Petty cab operators.
Um, I want to thank bacp and the law department and CPD.
Um, for their collaboration on this, this is 1 of those
instances where, um, the Administration has lived up to its
word and wanting to collaborate with the city council on
this issue. Um, we've had lengthy discussions about the
need to really go after the unlicensed. Petty cabs. These
folks are coming in from all around the country. Um, there
are folks that that make a living going from City to City
to City based on the season with no interest in ever
complying with local laws.
And we can't continue to reward that bad behavior. It
devalues these 200 licenses that we've established here.
And so, um, again my my thinking has changed on this
industry, um, my experience is at Petty cab operators, who
who have these licenses really? Truly are working very
hard. This is how they make their living.
uh, a big chunk of of the fleet of our licensed Petty, cabs
are operated by
Immigrants to this country um and they're putting an
incredibly long hours especially because the weather here
is so unpredictable. Um, this is a weather dependent
industry
and so, any day it rains,
This licensee who spent a lot of money not just on the
vehicle these vehicles cost, you know, 1415 thousand
dollars and there are maintenance and in storage
requirements and expenses that go with that. Um every day
that it rains is the day, these folks can't work and on
beautiful weather days. These folks are forced now to
compete with just as many if not more unlicensed, Petty
cabs, which dilutes the value of theirs and makes them have
to frankly. Look at bending rules to get basic fairs by the
end of the day, so they can pay their rent.
And so um like many areas in our code if we aren't forcing
our rules, um we're rewarding the Bad actors all that much
more.
And so, um, this will allow the city.
To impound Petty cabs. Um, we've never had that option, uh,
in a lot of cases. We're issuing tons and tons of
violations, but unlicensed, Petty cabs have no interest in
ever paying them.
And so having an impoundment option, we hope will really be
a deterrent.
But certainly in speaking with the Departments, there is a
strong interest in appetite.
For running some aggressive missions to get at these
unlicensed, Petty cab operators, and send them a message.
Not just to our licensed operators that, hey, we've got
your back but also to the unlicensed, operators from around
the country. Seeking to flood our Market, we're not going
to tolerate that anymore, and if you continue to flout
these rules, we're going to impound your vehicle. And then
you're going to have to go and pay lots of money to get it
out of hock.
Um, and so that's the intent of this ordinance.
And again I I was not expecting but was very pleased to see
members of the petty cab industry who have been complying
with our laws show up.
And ask for us to pass this. Um, so I guess this represents
a shift in my thinking on this industry.
And I'm really glad that the administration recognizes the
value.
Of going hard after these folks. It really have no interest
in ever complying with our local laws on this issue. Uh I
have Mike Kaled here from lrb to answer any technical
questions, but that's really the Crux of the issue. We're
looking to, uh, address here today and I'd be happy to
answer any questions. Thank you. Madam chair. Thank you.
Um, I heard from legal that, I, uh, we need a motion to
accept the substitute. I thought I asked, I thought
Alderman Apollo
Are we clear with that?
Okay. Um, questions by committee.
Uh, Alderman Lawson.
Uh, thank you, madam chair. Uh, I want to thank Alderman,
Reilly, for bringing this forward. Uh, he knows I was part
of that team. In the early stage, that spent a lot of time
on this, uh,
With Wrigley Field and our lakefront and figuring out, you
know, how we can, uh, make this work. Uh, and it's
certainly been a lot of growing pains. Um, I remember
though the 200 licensed limit was put in place 10 years
ago, right? It was about it was about as long as we've had
this and we have it increased it since has there been any
appetite or discussion around going to 250.
We've been talking about that uh Ottoman. And that's going
to be a longer discussion, but yes, there there is some
thought that there may be a value in adding some licenses
but we don't want to do is is flood the market and and make
these licenses essentially worthless. There's only so much
appetite for these rides and so really um that that is an
option moving forward.
Forward for sure. Uh but again in order to protect the
licensed industry, we really need need to force out the Bad
actors that never have an interest in actually pursuing
licensure 100% And and that's true of a lot of other
Industries. We're dealing with uh, right now as well. And I
remember ten years ago we were concerned about people from
out of town coming up and getting all the licenses, right?
So there is a percentage that no 1 person can get a certain
percentage of licenses or certain number of licenses. Am I
correct in remembering that? Yeah. If Mike hick could
answer that, I'd appreciate from lrb.
Mike, Howard from the legislator. That's oh,
Thanks. Uh Mike from the legislative reference Bureau.
That's correct. Alderman is a 20% cap.
So no more than 20% of the total number of licensed decals
may be issued to anyone operator.
Licenses sorry, gotcha. Gotcha. So that's 40, right?
Correct. Which is kind of a lot actually. Um, I'm sure,
nobody's close to 40. I saw ruple at some point, but I'll
ask her later. Um again I I maybe I'm more curious on what
the enforcement missions look like or maybe we want to talk
about that offline instead of in committee. Um because I
it's tough right. You've got a moving vehicle. That doesn't
have a play, you know, Public Safety. You know, I at
Wrigley, you know I actually see lots of these around
regularly than we did pre-pandemic. Um, it's a longer trip
I think is, is why. But if you want to just briefly talk
about enforcement or sure to your point, they will be
coordinated missions, right? Um, because of the
Weight of the vehicles. Uh, it will require some
coordination with departments, like stessa sanitation or
sedat that have the vehicles that could actually impound
these things. Um, we're not going to have roving tow trucks
every day. It'll require coordination but um, we've done
this with drag racing missions as well. Um, and so the Hope
here is to have a few successful large uh, missions
executed early in the season. Um and we know we'll have
results because there are so many unlicensed, Petty, cats
and make that an example, to the industry, almost a warning
that if you persist in in operating on licensed, we're
going to take your vehicles and we're going to make it
painful for you to get them back and we're hoping there's a
deterrent effect. What we don't want to do is is tie down
the enforcement departments with just these missions. Um,
so yes, these would be large sting like missions, um,
coordinated on certain days. Uh and again early in the
season to set the tone
Um, the specifics. I'd be happy to talk with you offline,
right? No, I I appreciate that. Especially starting early.
It doesn't happen on opening day. Forget it, or first night
game. So you you've got to get these folks. Um, and then
and and so again this has my support. Uh, definitely if
there's anything we can do to to help strengthen our local
industry, I want to be part of that and appreciate you
bringing it forward. Thank you. Madam chair.
Thank you Alderman Conway.
As um, someone who has a newly drawn ward of which about
40% of it came from came from the 42nd Ward. I, I would
only say that myself and the people, the 34th Ward, uh,
share the concerns and problems that Alderman, Reilly has
put forward. So I want to thank him for his leadership, uh,
for a problem that that certain exists in my word as well.
And certainly encourage encourage the committee to vote.
Yes. Thank you, madam. Chairwoman any other questions?
Ottoman Lawson moves to pass all in favor. Say I
Post. And the opinion of the chair of the eyes have it. The
motion is passed.
Thank you.
Moving on to item 4. 0202024 d. 0000000 9665. A substitute
ordinance to amend the municipal code regarding public
places of amusement and sidewalk cafes. This is also a
substitute. So, Alderman Scott makes a motion to recognize
the substitute all in favor.
say, I
Substitute is before us um that chair recognizes the
sponsor Alderman. Martin.
Thank you, chairwoman and good morning colleagues. Uh, this
is a substitute ordinance, that proposes to do 2 things.
The first would be allow businesses to obtain a Sidewalk
Cafe license for either a 1 or 2 year term. Currently you
can only do it for a 1-year term. And a number of
businesses, we have spoken with have indicated that the
renewal requirement can be burdensome and being able to do
it for a 2-year period as opposed to a single year, period
would be quite helpful. However um we did feel that it
would be helpful to have flexibility for those businesses
who maybe have cash, flow issues and would prefer to have
the 1 year option as opposed to moving from 1 to 2 years.
So uh we have that flexibility in place and have worked
with bacp to ensure that they can administer that um on
their end which is part of why we have a proposed effective
date of December of this year.
Second, it would vary slightly, adjust PPA requirements, it
would specifically allow businesses to have 4 gaming
machines uh and 2 pool tables. Before a PPA license is
required. Currently businesses can have 3 gaming machines
and 1 pool table, before a PPA license is required. Um,
I've spoken with a number of businesses who would
appreciate just being able to bump that number up by 1 to
be able to generate a little bit of additional Revenue.
Keep some, uh, uh, constituents in their businesses,
including, um, uh, some family-friendly ones. Uh, so again
it just, uh, adjust them, uh, uh,
Very modestly uh from uh, 3 to 4 for gaming machines and
from 1 to 2 for pool tables. Um, so that is the summary and
I'd welcome any questions. Thank you.
Alderman. OSHA
Uh, thank you chairman, uh, just want to thank my colleague
Alderman, Martin and, uh, commissioner kappal, uh,
particularly the, uh, 2 year Cafe license. Uh, can only be
helpful to our struggling small business Community. Uh,
when you almond first contacted me about this, I reached
out to my, uh, Business Association who said this would be
very helpful. So, uh, thank you. Thank you. And I would
just like to know, um, my appreciation for some, a small
Business Association that we've shared this proposal, with
to solicit feedback from including um sbac. A member of
whom is here this morning.
Alderman Conway, are you ready with your questions?
Yeah, yes. Um
Well I I I I heard Alderman, OSHA thank commissioner kopali.
So I was just, I was going to ask if we knew where where
bacp was on this
I mean.
Please. Yeah.
Bacp is neutral on this. Um, we worked with them to ensure
that for that first component that could be implemented
successfully which again is why December is the proposed
effective date. Uh they have no position with regard to the
2. People related pieces and believe it's up to this body
to determine whether and how to move forward.
Right. This seemed this seems like a
Minimal cutting of red tape. So I you know I think it seems
like a great Common Sense ordinance. I want to thank
Alderman Martin for putting it forward. Thank you.
Alderman Moore.
Thank you so much. Uh, first of all, I want to thank um,
Alderman. Martin for um, you know,
Trying to create a good ordinance here and um his
cooperation and always, um, responding back if there's any
concerns, the 2-year, um, Cafe license. I'm totally in
support of, I think, you know, our business don't have to
suffer for that, but I do have a problem with that. Put me
in a position that I can't support. This ordinance is the
part, um, with the um, additional, um, what I call gaming
pieces 1 in particular, when I'm concerned about are the
coupon slot machine,
And, um, giving people an extra 1, uh, in my opinion, I feel
it's going to give, uh, people an unfair Advantage down the
road. Eventually, um, if we should go to, um, legal gaming,
um, right now, everyone knows that a lot of these slot
machines, especially in our communities, on the south and
the west side, but probably all throughout the city are not
used for coupons. Um, they are used as gambling and people
are, are getting money from it. We just not getting the
revenue right now. Um, that's that's what we call an Open
Secret. Everybody knows that, right? And so, uh, my fear is
sort of, like, what we dealt with with, um, the Cannabis
situation, when the people who had medicinal, um, companies
and licenses this moment we switched to non-medical, um,
switched to non-medical, um, um, especially
African-Americans were shut out and I'm just, I'm just
fearful that as as, as more of these
Um, companies in these business have more gaming machines
when that flip switches. Um, I I just think we'll be left
out. I think this is an unintentional consequence um to
that, not an intentional 1 and if somehow, you know, we
were able to, um, put that to the side and identify that as
we did. I think with, um,
I think it was another jukeboxes. I think we did here with
um, setting jukeboxes aside, then this is something I
definitely could get on fully aboard with unfortunately.
Um, I do again, I support the 2-year, um, Cafe license. Um,
but since it's included in here with the other piece, uh,
for that reason I cannot support it today.
Thank you. Thank you.
Are there any other questions?
Um,
Alderman, wax back moves to pass all in favor. Say I
Any opposed Alderman Moore.
And the opinion of the chairs, the eyes have it and the
motion is passed.
Moving on to item number 5.
0202500 175500.
And ordinance to amend section 4-2 244-, 140 of the
municipal code prohibiting pedaling and portions of the
First Ward.
Um, Nicholas.
Zelle, are you here?
In the Box. Oh, okay.
um,
thank you, madam chair. Um, and members of the committee
for the record. My name is Nicholas zettle. I'm from the
First Ward office here to speak on behalf of aldermen
laspata. This is a a particularly straightforward code
Amendment. Um, in Wicker Park, we have a burgeoning uh,
vintage clothing. Seen uh, we have a lot of brick and
mortar licenses. Some of our most, uh, common new business
licenses, were seen on the stretch is Brick, and Mortar
vintage stores that are selling clothing, um, and other
Wares. It's become quite a popular thing there. Uh and and
we want to encourage this uh this business development. Um,
Um, there's an unfortunate side effect where there are
unlicensed Peddlers that are um that are uh, taking part on
the sidewalk and doing other informal sales in the
vicinity. So this is a matter. Alderman laspata took this
up after speaking with commissioner kapali, um, our 14th
District police, and, uh, our Chamber of Commerce, as well
as,
The businesses themselves. Um upon Consulting all of these
parties we believe that a pedalling ordinance. Uh ban is
going to be the best, the best enforcement tool here to
support our businesses. Um, so with that I'd be happy to
answer any questions from committee members. Um, and
Alderman laspata does urge a favorable recommendation um,
from the committee. So thank you so much for hearing me
out.
Any questions by committee?
um,
Alderman, alderwoman Coleman moves to pass all in favor.
Say I
Any opposed and the opinion of the chairs, the eyes have it
motion is passed.
Thank you.
Moving on to item 6 02025.
Dash 0000171 86 and ordinance to amend section 4-6-22 and
4-60 of the municipal code to disallow additional
alcoholic, liquor licenses and packaged. Good licenses and
portions of the 13th. Ward chair recognizes Alderman Quinn.
Thank you, madam chair. Uh, this is a routine item. Um,
after doing an analysis with bacp, I wanted to want to have
these blocks consistent with the rest of the 13th Ward. Um,
in terms of the liquor moratorium, I asked for a favorable
vote, thank you.
Any questions by committee?
Alderman, cardano moves to pass all in favor. Say I any
opposed any opinion of the chair is the eyes have it motion
is passed.
Is there? Yeah.
Item number 7, 02025 D 0001744, an ordinance to amend the
municipal code. Lifting subsection 4-60 - 023 parenthesis.
20.20 Point 19, to allow the issuance of additional
package. Good licenses on portions of 58th Street. Uh, we
have alderwoman Taylor here on remote alderwoman, Taylor
are you here?
Alderwoman Taylor.
Okay, we're going to hold that for now.
Moving on to item 8 02025, D, 0001755 and Ordnance from the
municipal code, lifting subsections 4-6-22, parentheses
25.203 and 460 023 parentheses 25.22 to allow additional
alcoholic liquor license.
and packaged Goods license on a portion of Blue Island
Avenue
Anybody.
Anyone here from Alder?
Okay, if you could, um, identify yourself please. Uh, good
morning chair. Thank you, Ruben Franco, director of policy,
for Alderman Byron sospesi. Uh, he asked for favorable
consideration of this ordinance, just lifting a few of
these to allow for a local business to open up shop. Thank
you.
Any questions by committee?
Alderman, Moore moves to pass all in favor. Say I
Any opposed, the opinion of the chair. Is the eyes have it?
Okay, um, item number 9, 02025 D 0001697 and ordinance or
man section 4-60, 023 of the municipal code to disallow
additional package. Good licenses on a portion of Pulaski
Road.
Chair. Recognizes Jason.
Lifty from alderwoman Cruz's office.
Thank you, good morning, uh, Madam chair and members of the
committee, uh the other woman would ask for favorable
consideration of this item. Uh basically um there are
already a proliferation of um, licenses on this stretch of
Pulaski and there was already an issue, uh, within the last
year, I believe about, um, being unable to prevent an
additional, um, outlet from opening, uh, as the moratorium
was not in place. So, uh, we would ask for favorable
consideration of this.
Any questions about committee Alderman, spaza moves to pass
all in favor say I any opposed the opinion of the chairs,
the guys have it, the motion is passed. Thank you, item
number 10.
02025 D 17556 and ordinance your Men chapter 4-4 the
municipal code prohibiting the sale of cannibal oil hemp
products within the O'Hare residential area.
The chair recognizes Alderman, Napolitano.
Thank you, madam chair. Um,
I'd like, uh, I appreciate you hearing this today to, uh,
I'm teaming up with my um, Ward mates, or my sister Ward
next to me, and the 41st or 45th Ward. Ugh. And we are
both, um, looking to
have a consideration from this committee to to pass this
today. I think that's all I got. Thank you very much. All
right, Garner, did you want to say anything?
Okay, in that case, I take that as a note. Uh Alderman wax
back, moved to pass all in favor. Say I any opposed and the
opinion of the chairs, the eyes have it, the motion is
passed item, 110202025000017 143 will be held and committee
and we're going to try to reach back out to Alderman.
Taylor, are you here?
Okay, then we are going to move on. Um,
To the last item on the agenda, which is a subject matter,
hearing on congestion fee. Overcharging by right? Share
companies.
um,
we do have a representative from,
Uber here.
Do you want to join us in the Box?
Josh Gould is the senior director of policy and
Communications at Uber
Um, we might need to take a little bit of a recess to wait
for everybody else. We are supposed to have an at Guzman
from the budget director
Um, we do have Brian.
Carlson here from the Department of tax division and
Department of Finance. Elaine Herman is here. Also managing
Deputy of revenues services at the Department of Finance
and we are waiting for
Commissioner Ivan, kapali of the Chicago Department of
Business, Affairs and consumer protection and they're all
here. Great.
Um, before we start as a background, uh, new rules went
into effect on January 6th that would create a 7-Day a
week, conjecture congestion surcharge for All rights to.
And from downtown between 6:00 a.m. and 10:00 p.m. with the
revenue going to the city.
As a block Club report revealed. Uber, has wrongfully been
overcharging customers with the congestion fee outside of
the designated hours and to their credit Berber. Uber has
pledged to refund all of the incorrectly collected money.
However, as the committee charged with consumer protection,
I thought it was important to bring
Everyone together to understand a little better. What
happened? And to find a way? We can protect consumers from
similar errors in the future.
so without further Ado, um, I'm going to ask Josh Gould
from Uber
Again the senior director of policy and Communications to
make a statement.
Thank you, uh, chair members of the committee. Thank you
for the opportunity to speak with you today. Uber is proud
to serve Chicago, helping connect residents with
affordable, reliable transportation, and creating flexible
earning opportunities, for tens of thousands of drivers.
We are deeply committed to the city and to the
responsibilities that come with being a transportation
partner here.
I want to address a recent error related to the congestion
search charge in December 2024, after the city council
approved exchange to the search charged, Uber implemented
updates, lowering the per trip fee and expanding it to
apply 7 days a week. While those updates were correctly,
made a technical misstep. Also, um, altered part of the
search charge that was meant to remain unchanged as a
result, some writers were unintentionally overcharged, this
was an error and we acknowledge the error was on our end
and the moment we became aware of it on April 29th,
following a media inquiry, we immediately began working to
make it, right? We notified the city first thing the next
morning and provided full transparency throughout
There were no Hoops for Riders to jump through. No forms,
no Outreach needed.
As soon as we confirmed the issue, we began initiating
refunds within 2 weeks, 99.9% of affected trips had been
refunded.
and by June 6th, just over 5 weeks from Discovery, all
Riders were paid back
Uber did not retain the over-collected fees funds were
admitted to the city. Before we knew about the error, our
Focus since discovering the issue has been simple.
Transparency speed and doing right by our Riders to ensure
this doesn't happen. Again we've strengthened our internal
review, processes improved cross team, communication and
are implementing real-time alerts to catch any similar,
discrepancies in the future. We value our relationship with
Chicago. We are accountable to our Riders and to city
government. Thank you.
Thank you. We're going to ask, um, Brian Carlson.
To say a statement.
Good morning. Um, chair Silverstein Vice chair, Chico,
distinguished members of the committee on license and
consumer protection and city council. Thank you for the
opportunity to appear before you today. My name is Brian
Carlson. I am the deputy director of the tax enforcement
and administration division in the Department of Finance,
the 2025 Revenue ordinance, contained 2, changes to the
ground, transportation tax, that impacted Transportation,
Network providers, and their passengers.
Prior to January 6th, 2025 the search charge for single
rides in the downtown Zone was 1.75 cents. Per ride between
6, mm, and 10 p.m. on weekdays only
As of January 6th 2025 the surcharge is $1.50 per single
ride in the downtown zone between 6, mm and 10 pm, 7 days a
week.
The tax division communicated, these changes to Uber
Representatives shortly. After passage of the revenue
ordinance in December, 2024 with Uber consumer, confirming
receipts saying, we are working internally to incorporate
the changes into our system configurations.
While we did see an increase in the 2025 tax payments.
Remitted by Uber, it was not unexpected as a result of the
expansion of the downtown Zone, surcharge to include
weekends.
When Uber's error was brought to finances attention, we
worked swiftly with our partners in bacp to immediately
address it with Uber and ensure corrective action was
taken. Thank you.
Okay, and finally Ivan kapali from bacp sure. Uh, good
morning, uh, Cher woman, Silverstein Vice chairman Chico
members of the committee on licensing and consumer
protection and members of city council. My name is Ivan
kopali. I am the commissioner for the Department of
Business Affairs and consumer, protection, also known as
bacp. And with me today is Ruppel Baba.
Deputy Commissioner of public vehicle licensing. Miguel
Campos, director of, uh, pacp officer, labor standards. Uh,
Gerald Dawson, Deputy Commissioner of uh prosecutions and
adjudication. Also general counsel for bacp and Chris
Jessup uh assistant Commissioner of IgA for bacp.
Uh, bacp ensures a fair and vibrant Marketplace for
businesses workers and consumers in the city of Chicago
bacp, licensed businesses and public Vehicles. Regulates
business activity, protects consumer, uh, enforces Chicago,
labor laws, partners with business service organizations
and provides education and resources for businesses.
As a regulatory department for public Vehicles, bacp
ensures, Chicago Public's, passenger vehicles are safe,
reliable and provide residents, and visitors with positive
Transportation options.
This include licensing, Chicago, public showers and public
vehicle public vehicles.
Including Transportation Network providers. Also known as
TPMS.
The city of Chicago TMP, ordinance, establishes a Licensing
and Regulatory framework for the TMP industry. Also,
referred as the right hail or right share industry, the
TMP, ordinance, focuses on focuses, on ensuring TMP trips
are safe by recur, requiring TMP, companies to obtain. A
license from bacp conducted background checks and train
Affiliated. Drivers inspect Affiliated vehicles and obtain
insurance.
further protecting
uh, TMP consumers by requiring upfront pricing, accept
accept acceptance and requiring the 3111 information being
included in vehicles and on the app. Uh, while mandating
clear, identification of Affiliated vehicles and drivers,
bacp does not set congestion policy or assess collects or
audit taxes. Bacp encourages consumers to use the chai 311
system. Call 311 to uh report possible, illegal practices
by businesses located in Chicago. Uh I want to thank you
for your time and my team and I are here and are available
to answer any questions.
Okay.
It was just reported by block club that the amount
collected was around 1.8 million dollars. Is that correct?
The, the amount was 1 Point um 1,782,193.50.
And you're saying all of that money has been refunded
already. Yes.
And did that money go to the city? I'm assuming it did uh,
a portion of it. Did I believe the April tax, payment
wasn't due until May. Um, so the the previous tax payments
were went to the city around 1.3 million.
And did the city.
re if you gave Uber,
gave the money back to the consumer correct, correct?
But you have you gotten it back from the city, we have not.
Um, could somebody from the city?
Explain what's happened to that money?
Uh, yeah. So I can take that. Um, we are still
We are still working with Uber to provide um, have them
provide us with additional documentation to support that
what they're saying.
is is in fact true with the verification of customer
refunds taking place
so, I'm working to obtain additional information from,
Uber, to go through that process before before we repay the
money to Uber,
An Uber, you're aware of that process. Yeah. And and we're
supportive of the city doing what it needs to do to verify
that the money was paid back before. Um, we request that
money back.
Um, are there any questions from my colleagues, Alderman?
Reilly?
Thank you, madam chair and it's it's a bit more of a
comment than a, than a question. And it's about the
Downtown surcharge, generally um I am glad actually, I'm 1
the focus has been receiving those refunds um at some point
point in the future though I do hope we can have a
conversation with the administration about that. Sir charge
generally um a lot of folks think that uh it's a s charge
really being paid by tourists and commuters um and in some
cases Suburban workers who, who work downtown but
the reality is that um, ottoman Conway, and, and Hopkins
and dowel and and Knudsen, uh, and Bernett and and and and
and and LaMont Robinson. Our constituents are paying that
the time, um, and separate from our residents. Um, the
entire hospitality industry is also forced to be paying
these s charges and so I'm glad we're clearing up the the
late night. Um billing errors because that was
disproportionately hurting workers in the hospitality
industry that are clocking out of work at 2:30 in the
morning, many of them with cash.
As we know um safety on the CTA is not a guarantee anymore
especially at 2 in the morning. Um and so for many of these
workers who are on very fixed budgets, um, this is the only
mode of transportation, they can use to get home safely.
and so,
Again, um, I'm glad that we're getting these refunds
issued, uh, but I think at a certain point in time, we need
to revisit the, the issue of the dollar, fifty sir charge
generally, um, because it is hurting a lot of folks, that
that aren't making a lot of money. Um, thank you, madam
chair.
Thank you.
Is anyone else?
Okay, then I guess we are done with that. Um,
We're going to try 1 more time for Alderman, Taylor.
Okay.
Well then this concludes the agenda of the committee on
licenses Auto woman or chairwoman Silverstein. Can she have
2 more minutes or is this the last item? This is it.
For 1 second, I need to take this. Hello. Hello.
Yes, I'm here.
Hi, oh, I'm sorry. Hi
so alderwoman, if you could quickly, um, just address, uh,
ordinance 0202500 17401,
um,
Lifting. This is the lift of the the, the licorice.
Yes. Um and this part of the board. So packaged Goods, so
this? Well yeah.
this business owner, who previously owned wanted to
transfer over the license,
um, the question was asked for people who live in 0.5 mile
mile radius in the ward about, if they were okay, with
seeing it lifted to transfer the license community members
voted. Yes. Um, there were only a few members that voted to
know and so I'm in support of the transfer of lifting the
moratorium, but having this liquor license transferred
Any questions by committee?
Alderman, Martin moves to pass all in favor. Say I
Any opposed and the opinion of the chairs, the eyes have
it. The motion is passed. Now this concludes the agenda of
the committee on license. The past matters will be reported
as a recommendation to pass at the next city, council on
June 18th, 2025 there, being no further business before the
committee, okay? Ottoman Napolitano makes a motion to
adjourn. The meeting is adjourned. Thank you.