Mic check down the check. Mic check.
Frank.
Anybody.
Yeah.
City of Chicago.
City of Chicago city council rules of conduct for public
meetings.
meetings, 2023 to 2027.
meetings, 2023 to 2027, pursuant to the Chicago city
council Rules of Order and proced.
council Rules of Order and procedure rule 49, the sergeant
death
sergeant-at-arms sets forth, the following rules of conduct
to be followed during the public comment period and the
duration of all committee and City Council, meetings
profane.
profane vulgar.
and,
And appreciate your patience. We're waiting for 2 more.
almond so that we will have Quorum. Thank you.
good morning, ladies and
Good morning, ladies and gentlemen, the committee on
finances hereby.
finances hereby call to order
uh, today we will have
Uh, today we will have a tera public hearing for the
Chicago.
Chicago O'Hare International Airport. General Airport.
O'Hare International Airport. General airport, senior, lean
revenue bonds.
We'll have a roll call to establish quorum.
Vice chair Conway.
Alderman laspada.
Alderman.
Alderman Hopkins.
Alderman Hall.
Alderman Mitchell.
Alderman.
Alderman Harris, Alderman Beal alderman.
Alderman Harris, Alderman Beal, Alderman, Lee.
Alderman Ramirez.
Alderman Quinn.
Alderman Lopez.
I see, Alder.
I see Alderman Moore.
Alderman. Curtis Alderman. OSHA.
Alderman Mosley.
Alderman, Hopkins, I see you.
Alderman Rodriguez, Alderman Scott.
Alderman, CEO Lopez.
Alderman, CEO Lopez Alderman. Talia Farrell
Alderman, Cardona.
Alderman wag.
Alderman waguespack.
Alderman, Rodriguez, Sanchez.
Alderman Rodriguez. Sanchez Alderman, Quezada.
Alderman spaz.
Allman Vasquez.
Alderman. Reilly
Alderman, Knudsen.
Alderman. Martin.
Alderman, silver.
Alderman Silverstein.
Chair dowel is here.
We have a quorum, we have.
We have a quorum, we have 17.
Alderman brunette.
Alderman brunette, viegas Urban Taylor and mitts.
Alderman, brunette, viegas, Urban Taylor and mitts have
requested remote participation for reasons stated under the
provision of rule 59. Can I have a motion to allow these
Alderman to participate today? So moved by Alderman, Reilly
all those in favor. Signify by saying I
all those in favor signify by saying I opposed in the
opinion of the chairs. The
opinion of the chairs, the eyes have it and we will confirm
aldwin Bernett.
Al.
Alderman. Vagus.
Alderman.
Alderman, Ervin, almond competent. And
Alderman, Ervin Alderman, competent and family.
Taylor.
Taylor president, I got you all.
Taylor president, I got you all and Taylor's present
Alderman mitts.
Alderman Bernett.
Alderman. Viegas.
let the record reflect that this is a public hearing that
is being held pursuant to the requirements of section 147f.
of the Internal Revenue code of 1986 as amended and will be
referred to throughout.
referred to throughout the hearing as the code.
Notice.
Notice of this public hearing was published on June, 3rd.
2025 on the website of the office of the city clerk.
2025 on the website of the office of the city, clerk of the
city of Chicago throughout today's hear.
city of Chicago throughout. Today's hearing, the city of
Chicago may also be referred to Simply as the city,
let the reporter remark.
and mark, the screenshot of such
And mark, the screenshot of such a notice as committees
number 1 for ident.
number 1 for identification.
I will now ask Brendan White assistant, commissioner.
I will now ask Brendan White assistant, commissioner of the
Department of Finance to explain the back.
Department of Finance to explain the background for this
hearing.
Good morning. Brendan
Good morning, Brendan White. Thank you. Chairman uh, ter.
Good morning. Brendan White. Thank you. Chairman. Uh, Tera
stands for tax equity and fiscal.
stands for tax equity and fiscal responsibility act which
is a federal law. Um, this hearing is required by this law
to provide the public and opportunity to comment on the
plan of Finance.
plan of Finance for certain kinds of tax exempt, bonds and
notes.
notes, and the use of proceeds of such bonds and notes. Um,
following the public hearing, the city must still approve.
The plan of Finance for the issuance of bonds or notes
before.
before any of the tax exempt debt can be issued approval.
before any of the tax. Exempt. Debt can be issued approval
can be by an ordinance adopted by city council. Or
can be by an ordinance adopted by city council or a
certificate signed by the mayor.
Thank you, Brendan. This is a hearing regarding a proposed.
Thank you, Brendan. This is a hearing regarding a proposed
plan of Finance to issue Chicago.
plan of Finance to issue Chicago O'Hare, International
Airport, General airports.
Airport, General airports senior lean revenue bonds in a
principal amount.
principal amount, not to exceed 4 billion.
principal amount, not to exceed 4 billion 325 million, and
we will refer to these as the O'Hare bonds today.
during the hearing, we may refer to the O'Hare
International Airport simply as the airport.
pursuant to the plan of
Pursuant to the plan of Finance, the proceeds of the
O'Hare, bonds will be used.
O'Hare, bonds will be used for the purpose of a, the
payment or reimbursement of the cost of certain capital.
And
projects, including airport Airfield.
including airport Airfield terminal, concession, roadway
and Airport.
Airport transit system facilities and Improvement.
Airport transit system facilities and improvements and
other related facilities and improvements.
other related facilities and improvements at or near the
airport.
At the cost.
at the cost of providing sound insulation, and
At the cost of providing sound insulation and noise,
mitigation at schools and Residences.
mitigation at schools and Residences in areas surrounding
the airport incl.
the airport including without limitation capital projects
included.
included in the O'Hare Terminal area plan. The O'Hare
modernization program and the O'Hare Capital Improvement
program at the airport,
B refunding or refinancing General airport, revenue? Bonds?
B refunding or refinancing General airport, revenue? Bonds,
special facility charge Revenue.
special facility, charge revenue, bonds commercial, paper
notes credit
notes, credit agreement notes, Andor passenger facility,
charge revenue, bonds issued for the purp.
charge revenue, bonds issued for the purpose of the
airport.
C. Cash flow. Needs of the airport and fun.
C cash flow. Needs of the airport and funding costs of
security projects and funding.
security projects and funding the cost of acquiring land
and the relocation.
and the relocation of facilities relating to the airport.
D, the deposit of monies in.
D, the deposit of monies in certain funds and accounts to
accomplish the purpose of the O'Hare bonds including
deposits to Capitol capitalized. Interest accounts for the
O'Hare bonds and other senior lean obligations under the
master trust and denture.
master trust indenture.
Deposits to Debt Service Reserve.
Deposits to Debt Service Reserve accounts and common Debt
Service Reserve sub.
Service Reserve sub funds.
E funding. The
E funding, the costs relating to the acquisition of any
lease.
leasehold interests of any Airline or other tenant.
leasehold interests of any Airline or other tenant at the
airport, including any contractual.
airport, including any contractual, right of any Airline
under any Airline, use agreement or special facility.
Financing arrangements. And
financing arrangements and F the payment of costs of
issuance.
issuance incurred in connection with the issuing the O'Hare
bonds.
the city will issue the
The city will issue the O'Hare, bonds pursuant to its
powers as a home.
powers as a home rule unit of government under the 19.
powers as a home rule unit of government under the 1970
constitution of the state of Illinois.
And an ordinance adopted by the.
And an ordinance adopted by the city of Chicago. The O'Hare
bonds will.
bonds will not be a general obligation of the city. The
state of Illinois, or any political subdivision,
state of Illinois, or any political subdivision thereof,
but will be special limited obligations of the city.
but will be special limited obligations of the city payable
from airport, revenues and other passenger.
from airport, revenues and other passenger facilities
charges.
The O'Hare.
The O'Hare bonds will not constitute an indebtedness.
The O'Hare bonds will not constitute an indebtedness of or
a loan of credit of the city, the state of Illinois, or any
political subdivision of the state of Illinois within the
meaning of any constitutional limitation or statutory Prov,
provision.
No, holder of any.
No, holder of any O'Hare. Bonds will have the right to
compel any exercise of the taxing power of the city, the
state of Illinois, the United States of America, or any
political subdivision of any of them to pay the principal
of Premium.
of Premium, if any or interest on the O'Hare Bond.
of Premium, if any or interest on the O'Hare, bonds,
written comments relating to this plan.
written comments relating to this plan to issue the O'Hare,
bonds must have been
Bonds must have been submitted by email to the committee on
finance at city of Chicago, no later than 10.
finance at city of Chicago. No later than 10:00 a.m.
Friday. June 13th, 202.
Friday, June 13th, 2025.
Let the record reflect that? No.
Let the record reflect that. No, written comments were
submitted on this project.
ladies and gentlemen, if any Resident taxpayer or other
interested person attending this hearing desires and
opportunity to express their views.
opportunity to express their views on the proposed plan of
Finance for the issuance of oh,
Finance for the issuance of O'Hare bonds and the facilities
being financed.
being financed and or refinanced O'Hare.
Please.
Please do 1 of the following for those attending in person.
Please come up.
Please come up to the mic when your name is called. But
those who have called in on the toll-free line,
Press.
press star 9 and you will be able to deliver your
Press star 9 and you will be able to deliver your comments.
Uh, when you press star 6 to unmute your phone,
um, is
Um, is there any member of the public taxpayer interested
person?
person who wishes to make a statement with respect to?
person who wishes to make a statement with respect to this?
Matter.
we do have 1 person who
we do have 1, person who has signed up to speak on this
matter and that is George Blakemore.
Good morning, Mr. Blakemore, good morning, madam
The older.
is 1 of our
Is 1 of our outstanding.
Airport.
Airport in America.
My purpose.
My purpose for speaking and that voodoo econom.
My purpose for speaking, and that voodoo economics, that
you have here. Say the city is not
you have here. Say, the city is not responsible. I'm a to
this money going to be invested in a black Bank, even if we
don't.
don't have a black bank here, they do have black.
don't have a black bank here, they do have black financial
institutions anyway.
institutions. Anyway, jobs, goods, and contracts and
service.
institutions. Anyway, jobs, goods and contracts and service
of how how many black people will be working you when you
go to Atlanta, you see a lot of black people working at
that airport and
airport and jobs also uh with with the concession, how many
black people are going to be selling alcohol in liquor and
and souvenirs.
How?
How many?
so, I can specifically
so, I come specifically advocating for black people and,
and
it's something disgraceful. You only have 1 person to speak
on this particular item.
on this particular item the concessions out there.
on this particular item, the concessions out there. Now,
you got a black face in a high place, running the airport
we have black faces down here,
In in high places.
In in high places selling black people out.
How much money?
Is going to go to the black community.
is going to go to the black community but but specifically
specifically with concessions and jobs and Kant,
with concessions and jobs and contracts, this voodoo
economics that you speaking.
voodoo economics that you speaking about down here it it
said you cannot hold.
said you cannot hold the city responsible. You are pro, uh,
uh, you work for the city.
All of these are City elected.
all of these are City elected officials and for you to make
a statement of
make a statement of such a magnitude that the city cannot
be.
be held responsible with your voodoo econom.
be held responsible with your voodoo economics that you are
having here.
so, it's very
So it's very important and I'm, it's it's something wrong.
But only 1 speaker
Only.
Only 1 speaker on something that's important. As
Only 1 speaker on something that's important as our
Airport.
airport. Oh hell
So your job is to educ.
so, your job is to educate inform and Enlighten your
constituents, perhaps you want to keep them.
constituents. Perhaps you want to keep them dumb.
Uneducated un.
Uneducated uninformed, that's why we get away.
Uneducated uninformed. That's why we get away right here
with this Democratic machine here. The sex food here
because you like it, it benefits.
because you like it it benefits y'all
and not the black community.
And not the black community. So again,
Is this?
Is this graceful that you only have 1?
is this graceful that you only have 1 speaker or, you know,
something,
something fake media.
Writing, I bet you won't see.
Writing I bet you won't see what Mr. Blakemore says in fake
media.
media because you all are part of the problem. Also,
media because you all are part of the problem. Also. That's
why I
Thank you, Mr. Blakemore, ladies and gentlemen, this
concludes the public hearing on the proposed plan for the
city of Chicago.
To issue to not.
To issue to not exceed 4325 million.
To issue to not exceed 4325 million principal amount for the
Chicago O'Hare.
Chicago O'Hare International Airport. General airport,
senior lean re
senior. Lean revenue bonds, let the record reflect that the
public.
public hearing on this matter was concluded at 10:30 a.m.
June 16th 2025. This concludes the Tet.
June 16th 2025. This concludes the Tetra hearing
Uh, good morning. Ladies and gentlemen, the finance
committee meeting is hereby called to order. Uh, today we
will also be holding a tephra public hearing for the
Chicago.
Chicago, Midway Airport, senior lean Revenue.
Chicago, Midway Airport, senior lean revenue bonds. We will
now have a roll call to establish.
now have a roll call to establish quorum.
Vice chair Conway.
Alderman, lasp.
Alderman laspata.
Alderman Hopkins.
Alderman. Hall Alderman, Mitchell. Al
Alderman Hall, Alderman, Mitchell Alderman, Harris Alderman
Beal, Alderman, Lee.
Alderman Ramirez.
Alderman.
Alderman, Quinn, Alderman, Lopez alderman.
Alderman, Quinn, Alderman, Lopez Alderman, Moore Alderman.
Curtis alderman.
Curtis Alderman. OSHA Alderman Mosley alderman.
Curtis Alderman, OSHA Alderman Mosley Alderman, Rodriguez,
Alderman Scott.
Alderman sich.
Alderman sichel Lopez. I counted you um should have uh,
counted you for Quorum for the first half for hearing I
did.
did see you walk in so we'll add you to that role as well.
Alderman sichel Lopez for this 1.
Alderman Talia.
Alderman. Talia Farrell.
Alderman. Cardona, almond.
Alderman, Cardona Alderman waguespack Alderman, Rodriguez
Sanchez.
Sanchez Alderman, Quezada.
Alderman.
Alderman spaz.
Alder.
Alderman Vasquez Alderman, Reilly alderman.
Alderman Vasquez Alderman, Reilly Alderman, kuden,
Alderman. Martin Al
Martin Alderman Silverstein chair. Dao is here.
We have a quorum, we have 18. Again, we have almond
Bernett.
Bernett vas, Irvin Taylor, and Mitt
Bernett, vas, Irvin Taylor and mitts have requested remote
participation for
remote participation for reasons stated under the
provisions of rule.
provisions of rule 59, can I have a motion to allow these
all?
all the men to participate?
So, moved by alderman.
so moved by Alderman Moore, all those in favor, signify by
saying I I pose in the opinion of a chair, the eyes
saying I I pose in the opinion of a chair the eyes have it
and we'll confirm Alderman, Bernett V.
and we'll confirm Alderman, Bernett, vagus irvan Taylor and
mitts our president of joined today.
let the
Thank you. All.
Got you? Let the record reflect. This is a public.
Got you, let the record reflect. This is a public hearing
that is being held pursuant to the requirements of section
147. F of the Internal Revenue code of 1986 as amended and
147. F of the Internal Revenue code of 1986 as amended, and
we'll be referred to throughout this hearing as the code.
we'll be referred to throughout this hearing as the code
notice of this public hearing was published on June.
notice of this public hearing was published on June 6th,
2025 on the website of the office of the city, clerk of the
city of Chicago.
city of Chicago throughout.
today's hearing the city of Chicago,
Today's hearing the city of Chicago may also be referred to
Simply as the city.
let the reporter Mark the screenshot of such
Let the reporter Mark the screenshot of such notice as
committee exhibit number 2 for identification.
I will now ask Brendan White assistant Commission.
I will now ask Brendan White assistant, commissioner of the
Department of Finance to explain the background of this.
Department of Finance to explain the background of this
hearing. Brendan
Thank you, chairman.
thank you. Chairman tephra stands for tax equity and
Thank you. Chairman tephra stands for tax equity, and
fiscal responsibility act, which is a federal law. Uh, this
hearing is required by law to provide the public and
opportunity to comment on the plan of Finance.
opportunity to comment on the plan of Finance for certain
types of tax exempt, bonds and notes.
types of tax exempt, bonds and notes, and the use of the
proceeds of such bonds and notes.
proceeds of such bonds and notes following the public
hearing, the city must approve. The
hearing. The city must approve, the plan of Finance for the
issuance of bonds or notes before any of the taxes. And
debt can be issued approval can be
Approval can be by an ordinance adopted by.
Approval can be by an ordinance adopted by city council or
buy a certificate signed by the mayor.
Thank you, Brendan. This is a hearing regarding a proposed
plan to finance to issue.
Chicago Midway Airport, senior lean Revenue.
Chicago Midway Airport, senior lean revenue bonds and a
principal amount not to exceed.
principal amount, not to exceed 445 million, and we will
refer to these as the Midway bonds today during
refer to these as the Midway bonds today. During the
hearing, we may refer to the Midway International Airport.
hearing, we may refer to the Midway International Airport
simply as the airport pursuant to
simply as the airport. Pursuant to this plan of Finance,
the proceeds of the Midway bonds.
The proceeds of the Midway bonds will be used for the
purpose of a, the payment.
purpose of a the payment or reimbursement of the cost of
certain capital projects.
certain capital projects, including airport, Airfield
terminal.
terminal, concession roadway and Airport trans.
terminal, concession, roadway and Airport Transit.
System facilities and Improvement.
system facilities and improvements and other related
facilities improvements at or near the airport and the cost
of providing sound.
cost of providing sound installation and noise mitigation
at schools. And
at schools and Residences in areas surrounding the airport.
at schools and Residences in areas surrounding the airport
B refunding or refinancing
B. Refunding or refinancing airport revenue. Bonds, special
facility re
facility, revenue bonds commercial paper notes and or
credit agreement notes issued for purposes of the airport.
credit agreement notes issued, for purposes of the airport
C. Cash flow needs of the
C, cash flow needs of the airport and funding costs of
security projects.
security projects and funding the cost of acquiring land.
And
and the relocation of facilities relating to the airport.
and the relocation of facilities relating to the airport,
D, the deposit of Monies.
D, the deposit of monies into certain funds and accounts to
accomplish the purpose of the Midway bonds, including
deposits to capitalize uh interest accounts for the Midway
bonds and others senior lean.
bonds and others senior lean obligations under the master
trust indenture.
Deposits to Debt Service Reserve accounts.
Deposits to Debt Service Reserve accounts and common Debt
Service Reserve.
Service Reserve sub funds e.
Service Reserve sub funds e funding, the cost relating to
the acquisition.
the acquisition of any leasehold interests of any Airline
or other tenant of the airport, including any Conte.
or other tenant of the airport including any contractual,
right? Of any Airline under any
right of any Airline under any Airline, use agreement or
special facility. Financing arrangements and F the
special facility, financing arrangements and F the payment
of cost of issuance incurred in connection with
of cost of issuance, incurred in connection with issuing,
the Midway bonds, the airport.
the Midway bonds, the airport is owned and operated by the
city. The city will issue the Midway, bonds pursuant.
city. The city will issue the Midway, bonds, pursuant to
its powers, as a home rule unit of government under the
1970 constitution of the state of Illinois,
1970 constitution of the state of Illinois and an ordinance
adopted by the city council.
adopted by the city council, the Midway bonds will not be a
general obligation.
general obligation of the city, the state of Illinois, or
any political subdivision thereof, but will be special
limited obligations of the city.
From airport revenues and passenger facility.
From airport revenues and passenger facility charges. The
Midway bonds will not constitute.
Midway bonds will not constitute an indebtedness or a loan
of credit of the city.
of credit of the city, the state of Illinois, or any
political sub.
political subdivision of the state of Illinois. Within the
meaning of any constitutional limitation or legal
provision. No holder of any Midway. Bonds will have the
right to compel any exercise of the tax.
right to compel any exercise of the taxing power of the
city, the state of Illinois.
city, the state of Illinois, the United States of America,
or any political sub.
or any political subdivision of any of them to pay the
principal.
principal of Premium, if any or interest on the mid,
principal of Premium, if any or interest on the Midway
bonds, written comments related to the plan to issue. The
Midway, bonds must have been sub.
Midway, bonds must have been submitted by email to the
committee on finance at city of chicago.org no later than
10 a.m. Friday June.
10 a.m. Friday. June 13th. Let the record reflect that. No,
written comments were submitted on the project.
ladies and gentlemen, if any Resident taxpayer or other
interested person attending this hearing desires and
opportunity to express their views on the proposed.
opportunity to express their views on the proposed plan of
Finance for the issuance of Midway bonds.
Finance for the issuance of Midway. Bonds and the
facilities being financed Andor ref,
facilities being financed and or refinanced, please do 1 of
the following for those attending this hearing in person,
please come up to the microphone.
please come up to the microphone and the aisle when your
name is called or for those who
name is called, or for those who have called in, on the
toll-free line, press 9 on your phone.
And then press star 6 to unmute the phone. Um, each speaker
is limited to 3 minutes is
is limited to 3 minutes. Is there any member of the public
taxpayer interested person who wishes to make a statement
with respect to this?
with respect to this matter?
We have 1 person who has signed up to speak on.
We have 1 person who has signed up to speak on Midway
bonds. And that is Mr. George Blakemore.
I also want to acknowledge that alderman.
I also want to acknowledge that Alderman Rodriguez has
joined us and will be counted towards quorum.
Is to speak on.
Is to speak on is something inherently wrong here.
With the amount of money that will be spent.
That you only have 1.
That you only have 1 citizen to speak.
and,
And while I'm speaking or the, the gentleman right down
here. Mr. Martin and the other and
here. Mr. Morton and the other and and Mr. Moore, they
ignoring me
That they caring on the side.
That they caring on the side composition. This is this is
That they caring on the side composition. This is, this is
disrespectful.
Of your position.
Of your position once the public come to the mic.
Of your position. Once the public come to the mic, you are
a public servant. You must
Play like you want to hear from the?
Play like you want to hear from the public he was you
shouldn't be that arrogant. Now, perhaps the way this is
set up here.
set up here, it used to what what we used to win.
set up here, it used to what, what we used to win Burke was
here. We would go up here.
here. We would go up here and see and then the people will
face us. So the now you are scared. Probably
Now, you have to turn around. There's something inherently
wrong with the whole system. It's broke.
So, this Voodoo economic
So this voodoo economics that you're seeing you're saying,
is that the city.
is that the city will not be held responsible, but
is that the city will not be held responsible but this is a
City Airport.
And you.
And you kicking the board book down the road.
All kind of jobs are going to be, uh, and buying property
and Noise with people that live in the area. So my Pacific.
Pacific, uh, uh,
What I think is wrong with.
what I think is wrong with this whole thing, it that's
going on with with
going on with, with these airports black people are not
getting anything.
They've been left.
They've been left out.
They've been played on.
They've been played on by their leadership.
Non leadership black.
Non leadership Black Faces in high places.
how much money the
How much money the dollars and cents that the black
community is going to.
community is going to receive for these jobs Goods
contracts.
contracts, and service. All right, how much
I mean, with this concession,
How how, how much are they going to be selling? I'm
repeating myself wine.
repeating myself, wine beer, souvenirs, how many black
girls?
house will be made.
how many when you extend and build these airports how many
black workers will be there?
so,
So were you there Mr? Blakemore When They Crucified?
Lord their crucified God's people
Lord, they are crucified God's people. All people black
people right now.
Right now. And when I finish, somebody say,
Right now. And when I finish somebody say let me shut up
Mr. Blakemore we
Mr. Blakemore, we don't respect you, you don't respect
yourself. I took off this hand and put the red hat on, but
I'm on my way about to flip read to
I'm on my way about to flip, read to go read. But my
ultimate aim is to go black, the Empower my people to get
these jobs good.
Thank you, Mr. Blakemore, ladies and gentlemen, this
concludes the public hearing on the proposed plan for the
city of Chicago.
city of Chicago, to issue to not exceed.
city of Chicago to issue to not exceed, 445 million
principal amount of the Chicago, Midway Airport, senior,
lean revenue bonds. Let the record reflect that the public
hearing on this matter was concluded,
hearing on this matter was concluded at 10:41 a.m. June 16
2025 this concludes the tephra hearing. Um, we will
acknowledge all demand silver.
acknowledge all demand Silverstein and Alderman Vasquez who
were here for this meeting.
The committee on finance is called to.
The committee on finance is called to order. We'll now have
a roll call to establish.
a roll call to establish quorum.
Vice chair Conway.
Alderman.
Alderman laspada, Alderman, Hopkins.
Alderman laspada, Alderman. Hopkins Alderman Hall. Almond
Mitchell. Alder.
Mitchell Alderman, Harris? Alderman Beal, Alderman, Lee.
Alderman, Ramirez, Alderman, Quinn.
Alderman, Ramirez Alderman, Quinn Alderman Lopez.
Alderman Moore.
Alderman. Curtis Alderman. OSHA.
Alderman.
Alderman Mosley.
Alderman Rodriguez.
Alderman Rodriguez, Alderman Scott.
Alderman.
Alderman, CEO Lopez Alderman. Tally far.
Alderman, CEO Lopez Alderman. Tally Farrell
Alderman. Cardona. Al
Alderman. Cardona, alderman waguespack.
Alderman Rodriguez. Sanchez, Alderman, Quezada alderman.
Viegas
ah,
Ah, no, no, no, no, no, no. No, no. No, no, no, no. Not
yet. Got you. Um,
yet. Got you? Um, Alderman, spaz.
Alderman.
Alderman, Vasquez Alderman, Reilly Al
Alderman Vasquez Alderman, Reilly Alderman, kson, Alderman.
Martin
Alderman Silverstein chair dowel is here.
Alderman Beal is here.
We have.
We have a quorum. We have 21, um, alderman.
We have a quorum, we have 21, um, Alderman Bernett, viegas
Irvin Taylor and mid.
Irvin Taylor and mids have requested to participate
remotely at today's meeting.
Remotely at today's meeting for reasons, stated under the
provision of rule.
provision of rule 59. Can I have a motion to allow these
Alderman to participate?
Some moved by Alderman, Scott.
Some moved by Alderman. Scott all those in favor signify by
saying I I
by saying I I oppose and the opinion of the chair, the
eyes, have it and
have it and the motion carries and I want to confirm that
all
Alderman brunette. Viegas Urban Taylor and mitts are
present.
present and joined today's meeting.
At this time.
at this time, we will begin the public comment period the
public comment period will be limited to 330.
public comment period, will be limited to 3 30 minutes out
of respect for everyone's time each.
of respect. For everyone's Time. Each speaker is limited to
3 minutes. We have 1 speaker this morning and no remote
speakers. So uh, Mr. Blakemore
You're up.
Sometime 1, start.
Sometime 1 star can light up the darkness.
1.
1 star and Light Up The Darkness.
Something.
Something is wrong here?
This is the regular finance committee.
This is the regular finance committee meeting. How many
times have I been here?
times have I been here to see millions of dollars?
times have I been here to see millions of dollars being
spent.
On police abuse.
Police abuse.
And the people.
And the people that the police are abusing.
90% of the time. They are black.
Driving. While black walking.
driving while black walking while black working while black
In prison.
Eincar.
Incarcerated. What is the percentage of black people?
Incarcerated. What is the percentage of black people that
are in detail holes? Now, I'm talking again.
are in detail holes? Now, I'm talking again you see them
right over here.
You.
You see how disrespectful?
Right of Conway. In this other gentleman, we will always
Right. Of Conway in this other gentleman, we will always
walk
They will better when Brooke was here.
When cel.
when Celeste was here because he's not getting any
When Celeste was here because he's not getting any better.
It's getting worse.
it's getting worse, even though they might have been
It's getting worse, even though they might have been
corrupt, but they would never disrespect.
but they would never disrespect a citizen and sometime when
they were disrespect me and start carrying on a
conversation, broke with Bam, Bam, Bam, B.
conversation broke with Bam. Bam Bam, Bam order here.
Breakfast.
Burke would say order here.
They are out of.
They are out of control here.
Completely.
Completely out of control here.
Something is evil here. Something is unamerican here. This
is a sense.
is a cesspool here, they're all Democrats. No check and
balance, and they
balance and they all are self-service.
I have a cure for this. What is?
I have a cure for this. What is the cure time, limitation?
Oh, you're so loud. What is the cure again?
Oh, you're so loud. What is the cure again time limitation.
you come in and you do your
You come in and you do your little 4 years and then you do.
another 4, if the people want you and then you're out.
I have.
I have figured this out.
They have been here.
They have been here too long.
way too long and they,
Way too long and they what if it's a revolving door from 1?
Hall pin, the county
To.
To the city, to the city, to the county.
To the city, to the city, to the county, maybe you might
have to have.
have to have a limit if you have worked in the city.
have to have a limit if you have worked in the city, good
after your 8 years, you don't flip over to the county.
Some thank you Mr. Blake Moore.
Alderman, Lawson and Alderman, not
Alderman, Lawson and Alderman. Not harping words will be
counted as members non-members. Um, thank you for your
presence today. Um, there are no questions that ends the
uh, public comment period and we'll begin with our monthly
rule. 45 approval of the May 2025 monthly rule, 45 report
that report was sent electronically to everyone.
that report was sent electronically to everyone, um, if
there are no objections or questions can
there are no objections or questions, can I get a motion to
recommend approval of the monthly rule, 45 report
So moved by alderman laspada.
all those in favor of the motion signify by saying, I
all those in favor of the motion signify by saying I I
opposed in the opinion of the chair, the eyes have it, we
have a total of 15 items on the agenda this morning. Um,
have a total of 15 items on the agenda this morning. Um and
we'll begin with item number 1, which is a communic.
communication transmitting reports of cases in which
verdicts,
verdicts judgements or settlements were entered into.
verdicts judgements or settlements were entered into for
the month of May 2025 the list of payments approved was
sent electronically.
sent electronically to everyone. And if there are no
objections this item will
objections, this item will be placed on file with the
clerk.
Item. Number 2.
uh,
are 4 proposed.
are 4 proposed orders authorizing The Corporation Council
to enter into and execute settlement orders in the
following cases. Raphael,
following cases. Raphael Alcantara versus City of Chicago
at all.
at all case number.
20.
2022. L 0007.
2022 L, 0007272, 71 in the
2022 L 0007272 71 in the amount of $100,000. Um, we're
joined this morning by Deputy Corporation Council Margaret
mendenhal Casey to address the committee.
mendenhal Casey to address the committee morning. Good
morning chair. Thank you on.
morning chair. Thank you on July 18th of 2022, officers
Michael Brown and Kylie McMahon were heading to a call.
A few seconds before entering.
A few seconds before, entering the intersection of Western
in full.
and Fullerton. On a red light, the officers activated
Sirens, but did not activate lights.
Sirens, but did not activate lights plaintiff. Rafael a
contour who was then 24.
was then 24 years old entered, the intersection with the
right of way.
right of way while driving the speed limit and struck the
police.
police car.
Raphael sustained. A hip.
Raphael sustained, a hip and leg fracture, the Department of
Law recommend.
Law recommends, settlement in the amount of $400,000 on
Law recommends, settlement, in the amount of $400,000 on
this matter.
At around 1:30.
At around 1:30 a.m. officer Brown who was the driver and
MCM.
McMahon the passenger heard a call of suspected.
McMahon the passenger heard a call of suspected drag racing
transmitted over the radio.
Officer Brown began driving toward the scene.
officer Brown began driving toward the scene and proceeded
through 3 intersections without incident.
Then officer Brown accelerated.
Then officer Brown accelerated up to 57 miles per hour as
he approached.
he approached the intersection of Fullerton and Western and
only slowed down to 27 miles per hour.
only slowed down to 27 miles per hour before entering that
intersection.
He?
He turned on his Sirens 1 to 2 seconds.
He turned on his Sirens 1 to 2 seconds before going into
the intersection but did not turn on.
the intersection, but did not turn on his lights.
the officer also entered, the
The officer also entered the intersection on a red light.
Officer Brown.
Officer Brown narrowly missed hitting a motorcycle.
Officer Brown narrowly missed hitting a motorcycle, then
plaintiff Raphael's car, hit the police.
plaintiff Raphael's car. Hit the police car at the time of
the accident. Rafael had the green light and was traveling
at the speed.
at the speed limit body, worn camera, captures the
accident.
A lieutenant on scene.
A lieutenant on scene, advised Rafael that the accident was
not his fault.
not his fault, and that is also captured on body worn
camera.
The traffic review board, deemed the accident preventable.
and warranted a reprimand to both officers.
and warranted a reprimand to both officers, including
attending Driving School driver. Officer Brown also
received a 1-day suspension.
received a 1-day suspension from Bia.
Raphael.
Rafael sustained a broken leg and hip and underwent.
Rafael sustained a broken leg and hip, and underwent a
6-hour surgery where a plate and screws.
6-hour surgery where a plate and screws were placed
following. His surgery, he was left with
following his surgery. He was left with a 12-in scar on his
leg and a scar.
leg and a scar less than an inch on his knee. Raphael was
Hospital.
hospitalized for 2 days and received 5 months of physical,
therapy, his medical bills total.
therapy, his medical bills, total $158,000, and he is not
claiming lost.
claiming lost wages.
The plaintiff initially demanded.
The plaintiff initially demanded 1 million dollars in this
matter at trial.
matter at trial plentiful seek compensation for medical
bills, pain.
bills, pain, and suffering, loss of normal life, emotional
distress, and
distress and disfigurement the Department of Law recommend
recommends, settlements, in the amount of $400,000 on this.
matter.
Thank you, Margaret.
Want to acknowledge Alderman, Mitch.
Want to acknowledge Alderman Mitchell and Alderman Lopez
got you. Um, any questions?
Got you. Um. Any questions on this case here?
Members of the committee.
Alderman Moore.
Could you use the mic? Sorry, chair. That was the
Could you use the mic? Sorry chair. That was the 400,000.
You said 400,000 that's accurate and and I I'm probably
missed this in the briefing. Did you say somebody just said
That it wasn't.
That it wasn't their fault who who made that statement. So
the lieutenant on scene, advised the plaintiff that the
accident.
accident was not his fault.
Okay, thank you. Jim.
I see. No other questions. Can I get a motion to move for
approval of this matter? So moved by Alderman, Lee
recommending.
recommending due pass all those in favor of the fifth, this
motion signify, by saying, I, I,
motion signify by saying I I opposed and the opinion of the
chair of the eyes, have it and the
chair of the eyes, have it. And the due pass recommendation
will be reported out at the next city.
recommendation will be reported out at the next city
council meeting. Thank you Margaret.
the next case to be,
The next case to be William Carter versus Ronald Watts at
all.
all case, number 17, C 724.
all. Case, number 17, C 7241 and the amount of 2.1 million
we're joined by uh, Deputy Corporation.
we're joined by, uh, Deputy Corporation Council Victoria
Benson good morning. Good morning.
Thank you. Good morning everyone. Uh, Victoria Benson
Deputy Corporation Council in the mass tors and complex
litigation division.
I am here today to request your approval for the settlement
of a federal law.
of a federal lawsuit filed by plaintiff William Carter
seeking.
seeking to recover damages for the prosecution's arising
from his multiple arrests by former Sergeant Ronald watts
and Chicago.
and Chicago police officers assigned to a tactical team of
which he was the sergeant,
Plaintiff's allegations include.
Plaintiff's allegations include claims that he was
maliciously. Prosecuted, that officers.
maliciously. Prosecuted, that officers fabricated evidence
against him, and that he was unlawfully.
against him and that he was unlawfully, detained pre-trial.
Lena also makes Moines.
Lena also makes monel and democracy claims against the
city, the Law Department.
city, the Law Department recommends, a settlement in this
matter, in the amount of 2.1 million
matter and the amount of 2.1 million dollars.
plaintiff alleges that each of his 3 arrests by watts and
or members of the team of which
or members of the team of, which Watts was the sergeant for
fabricated evidence.
for fabricated evidence with each arrest plaintiff was
charged with.
charged with narcotics related offenses, and prosecuted
prosecutions. He claims were malicious and based upon
fabricated evidence.
Plaintiff was first arrested by watts and other officers.
Plaintiff was first arrested by watts and other officers on
March, 3rd 2004.
The parties dispute.
The parties dispute how and why that arrest occurred?
Plaintiff was given an.
Plaintiff was given an ibond for this arrest and thus did
not spend any time in custody.
not spend any time in custody after his arrest was
processed.
A few months later. However, on June 18th 2004 while
released on bond for his March 3rd, 2004 arrest.
released on bond for his March 3rd. 2004 arrest plaintiff
was again, arrested by members of the Tactical Team of,
which was a sergeant
Again, the parties dispute how and why that?
Again, the dep parties dispute how and why that arrest
occurred?
In September 2004.
In September 2004, while plaintiffs criminal charges, were
pending the FBI.
pending the FBI jointly with cpds internal affairs,
division B.
division began investigating allegations that Watts former
officer kholat Muhammad and other members of Watts's
Tactical Team.
Tactical Team were engaged in Acts of corruption that
included collecting.
included collecting Street taxes from drug dealers. That
would allow them to continue.
would allow them to continue their business without being
arrested and also arresting
arrested. And also arresting sometimes, falsely those
individuals involved in the drug trade, who refused to pay
the tax.
while that investigation was, pending plaintiff plead
guilty to his March 3rd and June 18th, 2004 arrests,
guilty to his March 3rd and June 18th 2004 arrests on
December 16th 2004,
In exchange for his guilty, pleas plaintiff was sentenced
to 2 years.
to 2 years probation for both arrests.
To be served.
to be served concurrently
plaintiff, however, violated his probation.
plaintiff, however, violated his probation which resulted
in his, then being sentenced to boot camp Within
in his, then being sentenced to boot camp within the Cook
County Department of Corrections.
On.
On May 19th 2006 while the joint investigation.
on May 19th 2006 while the joint investigation by the FBI
and cpd's Internal Affairs division was
and cpd's Internal Affairs. Division was proceeding
plaintiff was again, arrested by members of the Tactical
Team of which Watts was a sergeant.
Again, the parties.
Again, the parties dispute how and why the arrest occurred?
During the criminal.
during the criminal proceedings, in that matter, plaintiff
filed a motion to quash, his
filed a motion to quash his arrest and suppress evidence
which was denied.
He then elected to proceed to a jury trial, which took
place on January.
place on January, 31st and February 1st, 2007.
In.
in his defense, the plaintiff called multiple witnesses to
corroborate, his version of events.
however, the jury ultimately found the plaintiff guilty,
and he was sentenced to 9 years at the Illinois Department
of
Corrections with 292 days credit,
Corrections with 292 days credit for his time in custody at
Cook County Jail, awaiting trial.
Plaintiff did appeal his conviction but it was affirmed on
appeal.
The Joint investigation by the FBI.
The Joint investigation by the FBI and cpd's Internal
Affairs division. Culminated in a federal
Affairs division. Culminated in a Federal indictment in
February 2012. When Watson
February 2012, when watts and Muhammad were federally
charged with theft of government funds,
charged with theft of government funds based on evidence
from a sting operation that occurred a few months,
from a sting operation that occurred a few months earlier,
Both watts and Muhammad pled guilty to those.
both watts and Muhammad pled guilty to those charges and
both serve sentences in federal prison.
Additional Integrity checks were then done to.
Additional Integrity checks were then done to see if any of
other members of Watts's team.
other members of Watts's team were engaged in corruption
with negative results.
explained if then use watts and Muhammad's convictions is
newly discovered evidence in support of his position,
petitions seeking to overturn his convictions.
Those convictions were vac.
Those convictions were vacated on July 10th, 2017 and on
September.
September 14th, 2017. He was granted a certificate of
innocence for each of the aforementioned convictions.
In total plaintiff claims have spent approximately 4.
in total plaintiff claims have spent approximately 4.31
years in custody for convictions attributable, to watts to
arrest, by watts and officers assigned to
arrest by watts and officers assigned to the Tactical Team
of which he was the sergeant.
Given the.
Given the risk associated with proceeding to trial in this
case, including the risk.
case, including the risks of attorney's fees. We recommend
settling this matter for 2.1 million
Thank you.
Thank you, Victoria. Uh, any questions from members.
Thank you Victoria. Uh, any questions from members of the
committee.
Seeing no.
Seeing no questions. Is there a motion to recommend
approval of item? Number 2B?
So moved by.
So moved by Alderman cam, Vice chair, Conway recommending.
due pass, all those in favor of the motion sign.
due pass, all those in favor of the motion signify by
saying, I
opposed, and the
Opposed and the opinion of the chair of the eyes have it
and we will report.
and we will report this out at the next council meeting.
Thank you very much.
Thank you very much Victoria.
um, the next case 2C Bernard Williams versus Kristen KO at
atall case number 21 C 81.
Atall case number 21, C, 819 in the amount of 7.5 million
we are joined today by deputy corpore
we are joined today by Deputy Corporation Council Jessica
Felker. Good morning.
Felker, good morning Jessica, good morning chair. Thank you
very much. Uh, the Law Department, recommends settlement in
this reverse conv,
in this reverse conviction lawsuit, for 7.5 million,
in this reverse conviction, lawsuit for 7.5 million, this
is a reverse conviction, case are
is a reverse conviction, case arising from the convictions
of plaintiff, Bernard Williams and criminal code defendant
D'Angelo Johnson for the August 23rd. 1996 murder of
D'Angelo Johnson for the August 23rd, 1996 murder of Gary
Thomas.
In 2019. The Illinois, Appellate Court vacated Williams con.
conviction following the recantation of 2 eyewitness.
conviction following the recantation of 2. Eyewitnesses in
2023, the special prosecutor retried him, but Williams was
acquitted. William spent approximately 23 years.
acquitted. William spent approximately 23 years in custody
his co-defendent. However,
his co-defendent, however, Johnson, his conviction remains
intact,
the recommended settlement here of
The recommended settlement here of 7.5 million amounts to
approximately.
approximately 326,000 per year of custody.
The fatal shooting of Gary Thomas occurred on August 23rd
1999.
1996 around 4:45 p.m. outside.
1996 around 4:45 p.m. outside of Cavern called washes place
on the 421.
at the,
At the time of the shooting, Thomas was standing in front
of the tavern.
of the tavern with 3 fellow Dogpound gang members 1 of
those Dogpound game members.
Martin.
Martin Nash was interviewed and stated that he observed 2
mehm.
members of The Traveling, Vice Lords approached his group
members of The Traveling, Vice Lords approached, his group,
pull out, handguns, and begin shooting.
Nash told the police that he did not recognize the shooters
as somebody he knew, but it was possible.
as somebody he knew, but it was possible that another dog
pound member Eric Smith May
pound member Eric Smith may be able to identify them.
Smith was.
Smith was interviewed and relayed that he knew he knew 1 of
the shooters was named Bernard based on that information.
the shooters was named Bernard based on that information
Smith was shown a photo array including Bernard Williams.
Smith was shown a photo array including Bernard Williams
and Smith identified Bernard Williams as 1 of the shooters.
A friend of Williams stated that Williams.
A friend of Williams stated that Williams bragged, that he
and D'Angelo Johnson committed the shooting.
Nash later. Identified both.
Nash later identified, both Williams and Johnson in a
lineup.
Williams was.
Williams was arrested for the murder on September 11th
1996.
and according to detective, Christine
and according to detective Christine kado and Patricia
sosinski sicinski
A orally confessed to his in.
A orally confessed to his involvement in the murder, but he
refused to talk to the 2.
refused to talk to the 2 States attorneys when they
attempted to interview him. As a result Williams confession
was not reduced to written form, other than in the
detectives report.
Johnson, underwent a polygraph.
Johnson. Underwent a polygraph where I was determined. He
was being deceptive.
according to detectives kado and Cerrone, when
According to detectives kado and Cerrone when they confront
when they confronted him with the failed.
when they confronted him with the failed polygraph Johnson
admitted to shooting and said, Williams was the other
shooter Johnson, gave a handwritten statement to the
assistant State's Attorney as did Williams.
assistant State's Attorney as did Williams's friend.
At Williams first Criminal.
at Williams, first criminal trial in November 1998, Nash was
the only eyewitness to testify and identify Williams and
Johnson as The Shooters?
Johnson as The Shooters Williams also testified in his own.
defense denying that he ever confessed and the judge found
him guilty nonetheless Williams challenged, his conviction
and during Williams's post conviction Pro.
and during Williams's post conviction proceedings. In 2015,
Nash recanted
Nash, recanted his trial testimony and testified that
Williams was not 1 of the shooters. He claimed that the
police showed him a photograph,
police showed him, a photograph of Williams and told him to
go along with it. He also claimed that he was paid by the
State's Attorney's.
State's Attorney's office to identify Williams at the
criminal trial.
identify Williams at the criminal trial. Nash is now
deceased
Smith also testified in the post conviction.
Smith also testified in the post conviction, proceedings
and denied Williams was 1 of the shooters.
and denied, Williams was 1 of the shooters Smith testified
that he never identified Williams in the photo.
that he never identified Williams in the photo array. And
that williams' photo was circled when he viewed the array.
We have come to this settlement early.
we have come to this settlement early in the litigation,
although Johnson has not been deposed yet. We expect that,
he will recant his statement. Implicating
he will recant his statement implicating Williams as a
shooter and testify to further police misconduct faith.
based on the arguments he made in his underlying criminal
proceedings.
Given that he remains convicted. However, Johnson will not
be able to testify that he himself.
be able to testify that he himself is innocent.
this case boils down to a
This case boils down to a credibility, determination
between Williams and the recanting witnesses.
between Williams and the recanting witnesses, and the
detectives.
although,
although detective kado who was involved in this case, has
had no verdict against him or complaint sustained. He does
have.
have a history of allegations against him. There is no
physical evidence tying Williams to the murder and no
written statement. Implicating Williams's involvement.
written statement. Implicating Williams's involvement in
the murder.
He Witnesses Nash.
He Witnesses, Nash and Smith have recanted their
identifications of Williams as a shooter. Furthermore, a
jury has acquitted.
jury has acquitted Williams with the evidence that remains
today.
Williams.
Williams has not sought a certificate of Innocence. He's
currently in county jail, following his recent arrests for
a
felony.
Williams originally demanded. 15 million in January 2025
the parties, negotiated settlement of 7.5 million.
the parties. Negotiated settlement of 7.5 million subject,
to city council approval.
This.
this case is still early in discovering, if the settlement
is not approved, Discovery will continue given the risks
and the attorney's fees that the city would incur.
And Williams and Williams Council would.
and Williams and Williams Council would receive if he is a
successful at trial, the department of
successful at trial, the Department of Law, recommends,
settlement in the amount of 7.5 million,
Thank you very much. Uh, Jessica
any questions from members of the
Any questions from members of the committee.
Seeing.
Seeing no questions. Can I get a motion to recommend appro?
approval of item number 2C?
So moved by Alderman, laspata recommending.
so moved by Alderman, laspata, recommending do pass all
those in favor of the motion signify by saying, I I opposed
and the opinion of the chair, the eyes have it, and the due
pass recommend,
pass recommendation on this matter we will be reported out
at the next council meeting.
Next case is yours.
Next case is yours too. Huh? Yep. Voice for Lucky. 1 always
the lucky. 1 James Gibson versus item 2 D. James Gibson
versus City of Chicago at all.
versus City of Chicago at all case. Number 19, seavey 4152.
in the amount of 14.75 million. Uh, again we're joined by
Jessica Felker, Deputy Corporation Council,
Jessica Felker, Deputy Corporation Council Jessica,
The Law Department recommends settlement.
The Law Department recommends settlement of this case for
14.75 million.
14.75 million plaintiff, James Gibson brought this reverse
conviction.
conviction lawsuit against retired and deceased Chicago
Police.
police officers, including Jon Burge, alleging, they caused
his wrongful conviction.
Gibson was convicted.
On December 22nd.
On December 22nd, 1981 or 1989? Excuse me.
On December 22nd, 1981 or 1989? Excuse me, uh,
Of the murders of.
of the murders of Lloyd, Benjamin and Hunter, wash Benjamin,
and wash, were shot to death outside, Wash's garage at 1118
West 58th Street Gibson.
West, 58th Street, Gibson claims that he made an
inculpatory statement as a result of his torture at the
hands of officers who worked for John Burr.
hands of officers, who worked for John Burge. His
conviction was ultimately vacated and charges.
conviction was ultimately vacated and charges dismissed in
2019 in total.
total Gibson spent approximately 29 and a half years in
custody before his conviction was vacated.
the Law Department, recommends settling this case for
the Law Department recommends settling this case for 14.75
million or approximately 500,000 dollars per year in
cussed.
custody
The murder investigation here.
The murder investigation here, centered around Gibson, AKA
Peter Gunn.
Keith AKA KD and Fernando Webb AKA boating.
Keith AKA KD and Fernando Webb AKA boating detectives
reported that the word around the neighborhood was pet.
reported that the word around the neighborhood was Peter
Gunn was the shooter and either KD or B.
Gunn was the shooter and either KD or Bodin were involved
Gibson had Peter Gunn test
Gibson. Had Peter Gunn tattooed on his arm.
Gibson was in the police station.
Gibson was in the police station from December 27th to
December 30th. Being questioned until he was ultimately let
go without.
let go without charges defendants, say he stayed
voluntarily. While Gibson denies and says, he was
voluntarily. While Gibson denies and says he was held
against his will.
Gibson. And
Gibson and KD were interrogated. Several times. Originally
denying.
denying involvement, but police reports State as they were
interviewed.
interviewed their stories changed and they became they
increasingly implicated 1 another
detectives reported that Gibson's last statement that he
was present at the garage when Benjamin and wash were shot.
And saw Katie give voting a gun.
and saw Katie give voting a gun and shoot both victims. He
did not deny he he denied being involved in the shooting
himself, he admitted only that he shot saw it. Gibson was
then.
then released after Gibson was released his sister then.
reported to the office of Professional Standards. The
predecessor of Copa that defendants Omar
And Collins punched kipped. And
and Collins punched kipped and slapped, and threatened
Gibson that complaint was investigated, and the complaint
was not sustained.
sustained KD remained in custody according to
sustained KD remained in custody. According to detectives
Katie, ultimately told them that Gibson had made
plans to Rob Benjamin.
Katie said his sisters Carla and Janice had been present
when Gibson.
when Gibson stated his plan.
Haiti said that Gibson.
Haiti said that Gibson had a gun with him and on the day of
the shooting,
the shooting uh Gibson offered KD 50,
the shooting uh Gibson offered KD, 50 to be a look at
according to Detectives.
according to detectives Katie stated that he was at the
scene and saw Gibson shoot.
scene and saw Gibson, shoot, Benjamin, and that Gibson
later, admitted to the shooting.
Bodin denied.
Bodin denied involvement but said he saw Peter Gunn AK.
Bodin denied involvement. But said he saw, Peter Gunn, AKA
Gibson standing next to Wash's garage with a gun. But Bodin
left, before anything happened.
left. Before anything happened and did not hear any shots
Bodin testified,
Bodin testified against Gibson at its trial.
But died.
But died in the mid 1990s so he could not be deposed in
this.
this case,
After Katie's and boating statement.
After Katie's and boating statements Gibson was arrested on
December 31st.
December, 31st and did not make any further statements.
Katie's sister, Carla was interviewed and gave a statement
that she overheard Gibson discuss planning to Rob.
that she overheard Gibson discuss planning to Rob Benjamin
and possibly shooting him. She also said that she saw
Gibson with a gun on the day of the murder.
Katie's Sister Janice gave a statement that Gibson said he
planned to Rob Benjamin.
On January 2nd. Gibson's public defenders investigators.
On January 2nd Gibson's public defenders. Investigator took
photos of Gibson and wrote that.
photos of Gibson and wrote that Gibson's chest and buttocks
appeared swollen.
The medical records from surac hospital on January.
The medical records from surac hospital. On January, 3rd
state that Gibson had bruising on his left.
state that Gibson had bruising on his left ribs. And that
he told the hospital that he was
told the hospital that he was hit by police.
Gibson was convicted on.
Gibson was convicted on October 8th 1990 and sentenced to
life. In prison KD was in was convicted in January.
life. In prison KD was in was convicted in January 1991.
KD however, later entered in a plea agreement, where his
original conviction was vacated and he plead guilty in
exchange for a sentence of time, served in his plea, he
implicated himself in Gibson in the murders and Katie's
con.
conviction remains intact but he claims that his statement
conviction remains intact, but he claims that his statement
to detectives were false
and,
And a result of abuse.
Gibson filed a claim with a torture inquiry and relief
Commission in 2012.
Commission, in 2012. Gibson claimed that he was beaten by
numerous police.
numerous police officers. Gibson was eventually granted a
new trial by the Appellate Court on April 4th, 2019.
new trial by the Appellate Court on April, 4th 2019 on
April 26th. 2019, special, prosecutor agreed to dismiss
dismiss the case. Gibson was granted a certificate of
innocence in February 2020. After the State's Attorney's
office,
Office declined to intervene.
This case is essentially about.
This case is essentially about whether the jury believes
Gibson was physically and psychologically.
Gibson was physically and psychologically abused. During
his interrogation, resulting in a statement.
his interrogation, resulting in a statement, although there
are no allegations in this case that Burge interviewed or
interrogated, Gibson during the investigation.
interrogated. Gibson during the investigation, Burge is
named because he allegedly supervised those involved,
in this case, currently 5 of the 11,
In this case, currently 5 of the 11 defendant officers are
deceased and cannot testify a trial.
deceased and cannot testify a trial to these allegations.
Plaintiff. Initially demanded. 65 million to settle.
case.
On March 31st, 20.
on March, 31st 2025, the parties reached a settlement of
14.7 M, 5 million inclusive of attorneys fees.
14.7 M, 5 million inclusive of attorneys fees and costs
subject to city council approval.
subject to city council approval, of course.
this again, was at a rate of
this again was at a rate of approximately, 500,000 dollars
per year of custody for the 29 and a half years that Gibson
was
Gibson was incarcerated at the time of the settlement.
summary judgement was pending. And trial was set.
summary judgement was pending and trial was set. If Council
does not authorize this settlement, the court will rule on
summary judgement and the trial date will be reset.
Because of the risks involved, the department.
Because of the risks involved, the Department of Law
recommends settling for 4 1 4. 7,
recommends settling for 4 1 4. 7 5,
Thank you, Jessica.
Thank you. Jessica would like to acknowledge Alderman
Harris and
Harris, and Alderman, viegas who was remote, but is
Harris and Alderman, viegas, who was remote, but is now
with us any questions on this case,
Alderman. Viegas.
Alderman. Viegas I heard you.
Alderman V, I guess.
Thank you, madam.
Thank you, madam chair. Um, just a quick question. Um,
well, actually
actually, a comment that a question. I'm glad to see that
we're finally.
we're finally getting to a point where we're settling
these. There's multiple cases that were behind. Um how are
we paying?
we paying for the settlements?
I I don't think that's a question for me. Um, I can tell
you that there's a settlement in judgement fund for that,
set every year.
set every year in the budget. Um, but as far as where that
money comes from, if you're asking that I don't know.
Um, so what we've already surpassed.
um, so what we've already surpassed it, right, we had
budgeted 82 million and we're at about 1:40 now and this is
halfway through the year. So I suspect that there's another
100 million in the pipeline.
100 million in the pipeline uh, for this year which would
put us at 3 times.
put us at 3 times the amount. Uh, and where I'm going is
that ultem
that ultimately these will be paid through bonds
potentially.
potentially, is that an accurate? I I have again, no idea.
I don't work for the budget office so I I don't,
I don't work for the budget office, so, I I don't know how
I like to find out if that has not been discussed.
I like to find out if that has not been discussed that in
terms of the use of bonds to pay.
terms of the use of bonds to pay the legal settlements.
you know, when we did the last
You know, when we did the last Bond deal that was taken out.
So there's no um, opportunity for that right now.
out. So there's no um, opportunity for that right now,
okay?
I'm just, I'm, I
I'm just I'm I think I'm just trying to uh, Enlighten my
colle.
colleagues in it. Given the huge liability there at some
point. That's a potential.
uh, option that will be utilized, which
Uh option that will be utilized which in turn would put the
statement. That was done.
statement. That was done a couple weeks ago where we don't
use bonds to pay.
use bonds to pay for cap for operations. Uh, this is exact
exactly what we're talking about. At some point, we're
going to have to utilize some type of funding source in
order to pay these settlements that are out there. Um, so
just wanted to put that on the record. Thank you Alderman.
Any other questions?
Any other questions related to this case, Alderman Lopez?
Thank you, chairman and good morning.
Thank you, chairman and good morning, members of the
committee. I I want to actually expound on what our
colleague from the
36.
36 Ward said, because I think it's not just something that
we can ignore.
The fact is we have 25 million dollars?
The fact is we have 25 million dollars in settlements right
now today that we are approving correct.
Roughly. Yeah. Roughly
Roughly. Yeah, roughly my math 24.5. I think
um,
we're paying out of a budget, that's
We're paying out of a budget. That's already been tapped.
In May.
In May last month according to the Chicago Tribune.
in May last month according to the Chicago Tribune in a
statement issued by
Budget director Guzman.
The.
The Tribune reported that according to OBM.
We have 150 million dollars.
Spread.
Throughout the city's entire general fund to pay for
lawsuit.
lawsuits.
Even though what we budgeted.
Even though what we budgeted for.
This year and the year before, and the year.
This year and the year before, and the year before that,
going back to 2020 was 82.6 Million every single year.
Um, the statement goes on to say and I quote, it is
difficult to predict estimate what we will settle
difficult to predict estimate, what we will settle when it
will settle and how much it will likely settle often times.
1 year, before it does end quote.
um,
I think it would be prudent Madam chairman.
I think it would be prudent Madam chairman, if the
committee on Budget moving forward.
Allocates.
Allocates additional funds so that we know exactly where
these budgets.
these budgets are coming from because to be perfectly
honest.
I should not only do I share my colleagues concern, but it's
actually,
actually very Reckless to say yes to things that we don't
know how we're paying.
don't know how we're paying.
None of us can pay a bill without knowing where the money
is in our own households.
None of us, can simply say yes. And
None of us can simply say, yes and not know what we have to
cut to make those payments. If This Were my house or your
house or any 1 of our houses,
We would not be able to Simply say.
we would not be able to Simply say, let's take on this
payment that we owe without knowing what we have to
sacrifice to make it happen.
We often times hear many of our colleagues say that, you
know, we can't say no.
know, we can't say no, you have to pay the bill.
But we don't know how we're paying it. We don't know where
we're cutting it from and
to just make this assumption that the money.
to just make this assumption that the money just magically
is in a 17.1 billion dollar.
is in a 17.1 billion dollar budget that we've passed that
we could just pull from without knowing which department is
going to feel the pinch.
Isn't fair, not only to our department.
isn't fair, not only to our departments, but to those
taxpayers who are foot at The Who
taxpayers who are foot at the foot the bill and expect
services to be there. If this is going to be taken from
police with,
police with cuts to overtime, then we should know if this
is going to be taken,
is going to be taken from streets and sanitation with cuts
towards garbage collection.
towards garbage collection and Red Road. And abatement we
should know is this coming from
should know, is this coming from C dot to stop? Filling
holes and why? It's taking so long to
and why? It's taking so long to fix light bulbs? We should
know. And I think that until we have those real serious,
conversations with OBM and with our committee on budget,
budget and government operations,
it's very Reckless for us to sit here and and approve these
It's very Reckless for us to sit here and, and approve these
settlements in this fashion.
Thank you. Thank you. Aldwin laspata followed by Allman
Vasquez.
Thank you so much chair. I mean,
Certainly, I would have prefer.
Certainly, I would have preferred in light of the
conversation here today.
conversation here today that Jon Burge was not torturing.
confessions out of people. When I was in elementary
confessions out of people when I was in elementary school
so that we wouldn't be having this conversation. Now all of
these
Decisions. The actions that we're talking about.
Perceived my time in government.
I want to call out anything that was being.
I want to call out anything that was being discussed in
terms of reduction in Services would most
terms of reduction in Services, would most likely require
fund 925 or
fund. 925 Ordnance, is that accurate to alter the budget in
that sense.
Uh, I don't know the answer to that question. That's fair.
I think it, it's
I think it it's logical to me that
cuts and services.
cuts and services cannot be made unilaterally uh, without
Cuts and services cannot be made unilaterally uh, without
council's consent. And I'm sure somebody can provide that
detail through the chair
Yeah. Also, I would say like this is
An.
an, this isn't a really case of, if we don't,
an, this isn't a really case of, if we don't vote on this,
then nothing.
Then nothing happens if we don't vote on this today.
Is it accurate that it's likely to?
Is it accurate that it's likely to go to trial in the near
future?
Yes, that's accurate. Uh, we will get a summary judgement.
ruling and it had already been set for trial and that was
stricken.
stricken um while this settlement is pending and so it will
be reset for trial. If this does not pass
Is it fair to assume that if it went?
To trial.
And there was a guilty verdict that would
and there was a guilty verdict, that would be
Significantly more than the.
Significantly more than the settlement that we're
discussing today.
Yes. The as I mentioned, he was in just under 30 years so
it's possible that we get a verdict of $30 million up to a
hundred.
hundred million dollars. Of course, we can't predict, but
we have a liability as far as that goes.
and,
and in the conversation around, the
And in the conversation around the, the word recklessness
was used by a colleague. The idea is that our, our
fiduciary responsibility is to reduce and mitigate risk.
fiduciary responsibility is to reduce and mitigate risk on
of the taxpayers, is that accurate
Yes. Okay. So
Yes. Okay, so based off of all of the
Even as it's uncomfortable.
Even as it's uncomfortable to have to reckon with these
decisions. And with the
decisions end with the dollar amount. So we're talking
about it, it feels like the responsible choice, even if
it's uncomfort.
it's uncomfortable choice to vote. Yes. On the settlement
that we're discussing. I just wanted to put that
perspective out there. Thank you chair. Thank you,
Alderman. I wanted to uh respond.
Alderman. I wanted to uh, respond something that um
Alderman Lopez said, I don't think that the way we're
paying these funds impacts on.
paying these funds impacts on The Cutting of services at
this point.
this point, we pay these funds from different.
this point, we pay these funds from different, um,
obviously, from the budget.
obviously from the budget allotted line item, but we've
also, unfortunately have had our insurance companies, pay
some additional
part of the settlement, some of the dollars,
Part of the settlement, some of the dollars come from
Finance General. Um, and I do think we need to have an
accounting of
where those funds have been taken for in the case of this
year.
year, which would inform our discussions.
year, which would inform our discussions during budget
time. So, I'm committed to getting a list like that to the
members of the committee. Um, as soon as I can.
Alderman Vasquez. Thank you. Chairwoman. Um,
Alderman Vasquez, thank you chairwoman. Um and I appreciate
the conversation. I think um as a reminder
the conversation, I think um as a reminder some Barney um
colleagues we have a budget.
colleagues we have a budget process that happens. Every
single year when we look at the
single year. When we look at the CPD budget, it is why
there are higher vacancies and some of the overtime funding
there. That tends to get moved over to cover the settle.
settlements because every
Every single year we go.
Every single year we go above. What's budgeted we do about
an average about 100 million uh in settlements uh to my
colleagues point. It's scheduled um appropriated there's
82.
82 million appropriated this year that we've already gone
over, but that is why there ends up being these vacancies
and CPE that people are calling out
and CPE. That people are calling out and some of the
overtime. Um, but also why last year during our budget
process, we negotiated to get better.
process, we negotiated to get better reporting. So
quarterly anytime something gets moved from a line item to
cover something else, we get a report
cover. Something else we get a report uh so that comes
typically I think the 4th
7th month, like on the 15th of
7th month. Like on the 15th of that month we'll get that
reporting. Also why? At the end of July we get
reporting. Also why? At the end of July, we get meteor
reports related to how all the funding is going. So
reports related to how all the funding is going so that we
get that information and understand as we are told every
single year, why those funds are moving
single year why those funds are moving around. Um, but
also,
I know.
I know we're talking about the expenditures somehow some
way we could.
way we could prevent it, is to make sure that there's more
accountability in place and that some of the behaviors that
led to these settlements isn't.
led to these settlements isn't continuing. Um which is why
um I've been supportive.
um, I've been supportive of, uh, Alderman, uh, vagus
why, um, I've been supportive of uh Alderman. Uh vasas. Uh
ordinance calling for like reporting in a portal related
ordinance calling for like, reporting in a portal related
to settlements, I'd like to know how much we're actually
settling for what Behavior led to it. Are there Trends and
patterns that we can get better at address.
patterns that we can get better at addressing so that we
don't have to end up paying for it later because
don't have to end up paying for it later. Because although
now we can talk about what these officers did in Burge and
everything else. I'm sure.
everything else. I'm sure that during the time that was
going on, they were getting praised by members of the
council.
Unbeknownst to what Behavior was.
Unbeknownst to what Behavior was happening. And similarly,
we can talk about what we think.
we can talk about what we think isn't happening. We won't
know until the settlements come into the future. And I
think we just need to do a better job of addressing the
behaviors. So we don't have to continue paying for it. And
so I do appreciate.
so I do appreciate, we have to make tough decisions here
because in every single 1 of these settlement,
because in every single 1 of these settlements, if we don't
vote for it, we lose even more money.
vote for it, we lose even more money as a city that we have
to pay for as it relates to like,
to pay for as it relates to like are we taking service
funds or infrastructure.
funds or infrastructure, funds from it to pay the
settlement, it's not the case.
settlement. It's not the case. It's why members voted for
infrastructure bonds to pay for infrastructure. This is the
job. We learned this.
job. We learned this stuff every year. Uh, please Avail
yourselves of the information. Thank you, chairman, uh,
thank you, I wanted
thank you. I wanted to also just uh, 1 other
thank you. I wanted to also just uh 1 other source of
funding is the city's line of credit. So I wanted to just
lay that out there.
lay that out there as well.
So, we'll try to get a full account.
so, we'll try to get a full accounting of
uh,
all of that information.
Soon. Yes, Alderman Lopez. Thank you, chairman and
In.
In response to that. I think that goes back to what our
colleague.
colleague mentioned with regards to our lines of credit.
colleague mentioned with regards to our lines of credit are
not just credit cards. It's based on our ability to issue
bonds to
Do what we need to do.
so,
The.
The question that Alder and viegas was.
The question that Alder and viegas was asking was, are we
borrowing?
To.
To pay these bond to pay this off. And I I thank you for
your willingness to, you know.
your willingness to, you know, share the details. But as
the budget,
the budget director herself has said 150 million dollars
across all across various departments.
across all across various departments and funds, including
Finance General.
Finance general, which means we are now entering into the
phase where we're going to start borrowing to pay for
settlements. We know that we have
a 100 other Watts cases still coming down the pipeline and
whatever else is here. So I think it's very prudent for us
to ask those questions and even if we are getting reports
quarterly, which I am well aware of because I helped save
that at the very end of the budget cycle last year.
the fact of the matter is, is that, that still shows that
things that were committed to departments are being moved
around to cover these
decisions.
Decisions that we have to pay for.
and,
And that is also bar a part of transparency. That's
And that is also bar a part of transparency that's lacking
in our budget conversations. Is that even though my
colleagues are unaware that money
colleagues are unaware that M money moves freely from any
Administration after it's approved. That's exactly what
we're going to see.
we're going to see happen in this case. So, look forward to
seeing whatever you're going to share with.
seeing whatever you're going to share with us chairman but
just want everyone to be aware that this will have
just want everyone to be aware. That this will have real
impacts unless we start being firmer with the admin.
administration saying what we want.
To be cut.
To be cut, should be cut in what we don't should not because
otherwise they will.
otherwise they will make the unilateral decisions
themselves once we expire on our lines of credit. Thank
you.
themselves once we expire on our lines of credit. Thank
you.
Thank you Alderman. Um,
Motion made by Alderman Beal.
Motion made by Alderman Beal to move, due pass, all those
in favor. Signify by saying I I opposed and the opinion of
the chair, the eyes have it and will report it out at the
next city council meeting. Jessica, thank you very much.
Thank you, chair.
Item. Number 3 from the Department of Finance and
Item number 3 from the Department of Finance and the
department of Aviation a substitute Orden.
department of Aviation a substitute ordinance authorizing
the issuance of Chicago.
the issuance of Chicago O'Hare, International
Airport. Uh General airport, senior lean Revenue Bond.
Airport. Uh General airport, senior lean revenue bonds and
Chicago Midway International Airport. Senior lean revenue
bonds uh there is
bonds. Uh there is a substitute ordinance which was
prepared and sent to everyone.
prepared and sent to everyone electronically. Is there a
motion to accept the substitute?
motion to accept the substitute ordinance?
Moved by alderman.
Moved by Alderman, Hopkins. All those in favor. Signify by
saying I I all those opposed
in the opinion of the chairs, the eyes have it and the
substitute is before us,
We're joined today by.
We're joined today by Brendan White. Deputy Commissioner
from the Department of Finance, we also have on Deck, Frank
ramalde, Deputy Commissioner of design and construction
from the Department of Aviation.
from the Department of Aviation, Bernie Williams assistant
commissioner from inter.
commissioner from intergovernmental Affairs, uh, from the
Department of Ave,
from the Department of Aviation and Zach, Bogman from the
Department,
Department of a Aviation.
Also.
Also, we have, uh, president representatives from the
Also we have uh president representatives from the various
Financial firms that are part of the deal.
Financial firms that are part of the deal team stance, or
any questions that you have.
Brendan.
Thank you chair. Um,
we are working to get the
We are working to get the presentation set up right now,
but I believe that.
Everybody has a copy of the presentation.
Everybody has a copy of the presentation printed out as
well. Okay, you have the presentation.
well. Okay, you have the presentations. Each member has a
presentation in front of them. We will continue to work to
figure out what's going on with the glitch here.
Glad I brought my, would you please?
Glad I brought my, would you please proceed?
Yes. So um,
Yes. So um in the copy of I'll be going through the copy of
the presentation that you all have. Um,
so starting on page 1 discussing the
So, starting on page 1 discussing the purpose of the
ordinance.
um,
so, this would authorize
so this would authorize, uh, bonds for both O'Hare and
Midway um to
Uh, provide funding for continued. Progress on signific.
Uh, provide funding for continued progress, on significant
and ongoing Capital Improvement projects at both airports.
Um, and we also include a number of, um, refunding and
tender candidates to, uh, reduce interest.
tender candidates to, uh, reduce interest costs and
realizing that savings. So, the, the savings we're looking
at at the O at O'Hare Airport.
at at the O at O'Hare Airport, are roughly 65 million and
savings from a combined refunding and tender
um, and for Midway, we're looking at about 8 million,
um, and for Midway, we're looking at about 8 million in
savings from refinancing
um, 1 important thing I want to mention at the top is that
uh, the airport obligations are not
uh the airport obligations are not General obligation debt.
Um, these bonds are paid entirely from the city's O'Hare.
and Midway funds. And um, from General Airport,
and Midway funds. And um from General airport revenues from
each airport which includes Landing fees.
each airport which includes Landing fees um rents and uh
gate fees, various other sources of income.
gate fees. Various other sources of income that are derived
solely from the airport and are not permitted to leave.
solely from the airport and are not permitted to leave the
airport.
Um, there are no property taxes.
Um, there are no property, taxes, pledged to repayment and
the credit ratings.
the credit ratings of the, uh, airports are assigned based
on significantly different criteria than the city's
General.
obligation bonds. So the ratings for our Airport
obligation bonds. So the ratings for our airport revenue
bonds are higher than the city's General.
bonds are higher than the city's General credit ratings.
so,
So on page 2, there's a breakdown. Um,
so on page 2, there's a breakdown um, of the uh, how
So on page 2, there's a breakdown um, of the uh how we got
to the headline numbers for the bonds.
got to the headline numbers for the bonds, um, which I know
maybe a little bit alarming, but
maybe a little bit alarming but for ohare, the we're
looking at a refinancing tender candidates.
looking at a refinancing tender candidates of about 3.8
billion. Um, I also want to stress that we would only do,
uh, the refinancing or the tender. If we saw that there
were Savings in the current market. So,
were Savings in the current market. So we're not saying
we're going to issue the full 3.8 billion.
we're going to issue the full 3.8 billion, but this is just
gives us flexibility to if the savings are there and we're
able to lower interest.
able to lower interest rates on our existing debt
structure. We would, um, consider refinancing about 3.8
billion.
billion dollars of outstanding bonds. Um, we would also
look to fund about 52.
look to fund about 525 million of projects at O'Hare.
O'Hare, um, with a maximum repayment term of 40 years.
Um, for Midway the 445 million, uh, not take seed princip.
amount is made up of 26.
amount is made up of 265 million and refinancing
candidates. And
and 180 million dollars of new money project new money.
and 180 million dollars of new money project, new money for
capital projects that are ongoing at the airport.
capital projects that are ongoing at the airport also with
the maximum repayment term of 40.
the maximum repayment term of 40 years.
starting with the
Starting with the O'Hare.
um, section of the
Um, section of the ordinance.
um, on page 4, you can
Um on page 4, you can see uh the hair credit ratings.
um on page 4 you can see uh the hair credit ratings are the
lowest rating is from Moody's at A2 with a stable Outlook.
and we also,
And we also have a plus ratings from each of.
And we also have a plus ratings from each of S&P Fitch and
crawl. All with stable outlooks, um, for reference, the
city's General obligation.
city's General obligation, ratings range from a minus to
uh, triple
Triple B minus.
oh, and I think we have
Oh, and I think we have the presentation.
About to get.
About to get set up on the big screen in a moment.
Yeah.
Thank you. These are the ratings. I was just discussing.
and moving on to the, uh,
And moving on to the uh, refinancing tender deal team. So
we're looking at uh having this transaction led by JP
Morgan um with the rest of the underwriting Syndicate uh
filled out.
filled out by uh 22% minority-owned.
filled out by uh 22% minority-owned underwriting, firms and
5.5% Vetter.
5.5% veteran-owned firms. Um, we also have strong minority
participation in the, uh, legal and financial advisory
teams.
and,
And for the O'Hare, new money deal team. Uh, we would look
to have Jeffries lead this transaction.
to have Jeffries lead this transaction, uh, with 35%
minority.
minority-owned firms. Making up the rest of the
underwriting syndicate.
underwriting Syndicate. Um, as before we also have strong
on, uh, minority participation on the legal and financial
advisory teams
And at this point, I would like to turn it over.
and at this point, I would like to turn it over to Frank to
get into detail about where exactly the new money project
funds would go.
funds would go to. Um, although I would before he gets into
it, I'd like to mention that the project costs listed here.
will is
the total project.
the total project cost. It's not limited to the amount that
the bonds are going.
the bonds are going to fund. So the if you add up all these
project costs, it will add up to more than the $225.
project costs, it will add up to more than the $225 million
um that we're uh seeking uh authority to borrow.
Frank.
Good morning.
Uh, a couple of projects.
Uh, a couple of projects real quick. Uh, we're going to
start with the central basin.
start with the central Basin capacity. Relocation, this is
a design. Build.
a design build. Its elimination of the central Basin.
Excuse me, excuse me. Frank, can you bring the mic closer
to you?
Got me now. There you go. Better. So it's elimination of the
central detention BAS.
central detention Basin and rerouting of a related store
and Sewer. Uh,
and Sewer uh to another Basin. Uh this is a great project.
It took almost 9 months to set up the staging area and set
up for the work.
up for the work and what it was it was a mining machine.
that started in the in the South Basin.
that started in the in the South Basin to the central
Basin. The mining machine was about 400 foot long and uh,
uh, the diameter uh, to put the machine in was
uh, the diameter, uh, to put the machine in was 144, uh,
inches in diameter. And it traveled over 8,000 feet.
inches in diameter and it traveled over, 8,000 feet, 60
feet deep and this is
feet deep. And this is mining machine that is used all over
the world and this was a great project, the project it will
be completed in 2027 the machine has completed but there's
a lot of other work that they have to do to get the machine
out.
out and the total cost was 224 million.
Next project is a great separated.
next project is a great separated roadway from Taxi akl to
uh the new terminal. S1 Concourse.
uh the new terminal. S1 Concourse construction, for a great
separated structure to connect.
separated structure to connect a taxiway K&L to Future
satellite 1. These great great separated roads are very
important. It uh, it eliminates the interaction between
vehic,
vehicles and airplanes. So in an airplane,
vehicles and airplanes. So in an airplane is going over a
taxi way to Great separate Road.
taxi way to Great separate Road, the vehicles will go under
uh this project will be completed in the fourth quarter
2027.
2027 at approximately 74.2 million
Tax away. Alpha bravo. Lever relocation.
Tax away. Alpha bravo. Lever relocation Phase 2. This is
construction. The remaining portions of 2 aircraft Design
Group.
group 6. Of course, 6 is the largest aircraft 747800 and
the A380 in the vicinity of decommissioning. The
the A380 in the vicinity, of decommissioning, the central
Basin. So once we, uh, complete the central Basin and get
the water out of there, we're going to fill it and
the water out of there, we're going to fill it. And these 2
taxiways amb will go over that.
taxiways amb will go over that uh Basin for uh aircraft.
the future tap program. This is a quart.
the future tap program. This is a quarter 4 complete 2027.
60.7 million.
Taxiway K&L, great separator Road. This is a project that's
about 90% complete, uh, construction of a
about 90% complete uh, construction of a 700 foot cast in
place concrete structure to uh, support future, aircraft
vehicle operations.
vehicle operations, uh, for or 21 and tap
vehicle operations, uh, for or 21, and tap this includes
earthquake earthquake.
earthquake earthquake, uh, Earth retention systems,
retaining walls can,
Retaining walls cast in place structure, waterproofing,
backfill, and Grading. And
backfill, and Grading and many site utilities. A lot of
ducks are going. A lot of sight ducks for Comet for
Electrical, uh,
Electrical uh lights and everything are part of this. This
is also important to keep aircraft away from Vehicles. So
this is another great separation Road. Uh,
this is another great separation Road. Uh it was complete,
it will be completed a third quarter of 2025
complete, it will be completed. A third quarter of 2025 at
74, uh, 75.6 million
Next project, Terminal 5.
Next project, Terminal 5 landside improvements. The parking
garage opened.
garage opened it last year about 1400 spaces. Uh, also with
a surface slot for about 500 St. Uh, spaces roadway
improvements, uh, including widening of a lower level
Island and uh, for our passenger safety for passenger
pickup.
pickup, that's very important curbside expansion Within
the garage, includes a flyover of that is not.
the garage, includes a flyover of that is not complete.
Well, we'll be completed at the end of 2026.
Well, we'll be completed at the end of 2026, the whole
project will be completed at the end of 2026 with uh, for
222.
222 million.
if you look at the, uh, the photos that you have their
Central basin,
Basin capacity, that shows the diameter 14,
Basin capacity, that shows the diameter 144 uh inch sewer,
that was going to go in and the Machine that goes in there,
it traveled 8,000 ft.
It traveled 8,000 feet and took about 11 months to complete
underneath.
underneath 2 2, Runway and 5, Taxi.
underneath 2 2, Runway and 5 taxiways, first time ever done
at an airport, anywhere in the world.
done at an airport, anywhere in the world, taxway alpha
bravo relocation, if you look to your
bravo relocation. If you look to your right, you see the
Basin? That's the Basin that uh uh, it will be eliminated.
We will put dirt in the Basin and if you look uh, where
that airplane, that's going to be gone but those taxiways
will go over.
will go over the base. And once we fill it, that will give
us more taxi room more whole pads. For aircraft 1 Day land.
Next project combined Terminal, 1 and see.
Next project. Combined Terminal 1 and see a lot C pump
repairs uh repairs and upgrades.
repairs uh repairs and upgrades to pumps and pump systems
associated with.
associated with lift and water stations to pump storm water
and waste.
and waste water. Um, we always have to upgrade on the
facilities that we have. If they're not new, we have to
continue to work. And this is a project where we need to do
this. This project with completion date of a second,
quarter of 20.
of 2026, at about a 8. 2
The ring tunnel exhaust system. Uh.
The ring tunnel exhaust system. Uh em hazardous gas and
smoke evacuation.
smoke evacuation if in front of the terminals in the lower
portion.
lower portion of the terminals, there's a tunnel that goes,
uh,
uh in front of Terminal 1, 2 and 3 and we're upgrading
that tunnel for the exhaust system, uh, and the rig
tunnel for the exhaust system uh and the rig utility tunnel
upgrading and adding exhaust.
tunnel upgrading and adding exhaust fans, providing new
dampers. And
and controls. And also a very important, uh, new
dampers and controls. And also a very important uh new fire
alarm system, a quarter 2 completion,
alarm system, a quarter 2 completion 2027 21.9 million
1. Concourse.
1, Concourse happy to report. We will start construction
July 1st.
July 1st on that. Concourse, uh, everybody's anxious.
July 1st, on that. Concourse, uh, everybody's anxiously
waiting for that new Concourse providing 19 new gates,
design flexibility accommodating different.
design flexibility. Accommodating different sizes of
aircraft to serve International.
aircraft to serve International and domestic operations.
Uh, four.
uh, fourth quarter, 2028 730.
Uh, fourth quarter, 2028 730, million,
To build these new terminals.
To build these new terminals, all these tax taxiways, we
have to do a UT.
have to do a utilities. So tap 1 Phase 1 allowance.
have to do a utilities. So tap 1 Phase 1, allowance provide
a supply capacity and utility that.
a supply capacity and utility that maintain tap phasing uh
Phase 1.
Phase 1 facilities. This will be everything needed to
operate uh that terminal.
operate. Uh that terminal complete. It is complete in
various phases and is the terminal uh continues. We will
complete uh the utilities around it. That's 493.
complete uh the utilities around it. That's 493 million
Terminal 3 improvements.
Terminal 3 improvements renovation, we call Elevate, uh,
alev.
Elevate 3, uh, renovation, uh, an expansion of
Elevate 3. Uh renovation. An expansion of terminal 3 head
house including upgrades to existing.
head house including upgrades to existing MEP systems
relocated
Relocated bag, claim area with new claim the devices. The
bag, claim area with new claim the devices, the technology
and claim system is improving every day. And
and claim system is improving every day and every day,
there's new, uh, there's new technology. And
there's new, uh, there's new technology and we have to go
with the times. And, uh,
with the times and uh, redo upgrade those systems our
renovation.
renovation of the back room, claim area to new baggage,
make room
Make room make up rooms renovated. Restrooms security
checkpoints.
checkpoints, Renovations and reconfigurations building.
expansion and new spaces for concessions. Uh new.
expansion and new spaces for concessions. Uh new Airline
Club, new home rooms, and
Club, new home rooms and uh a brand new renovated Tick
Ticket Lobby.
Ticket Lobby uh completed third quarter of 2027.
Ticket Lobby uh completed third quarter of 2027 353
million.
if you look at the photos set of line 1,
If you look at the photos set of line 1, uh Concourse going
to be a beautiful. We've been working.
to be a beautiful. We've been working with our Airline
Partners so they could operate properly.
Partners so they could operate properly out of this
facility and it's just going to be a beautiful facility
when completed
Elevate.
elevate a T3, of course, this is American Airlines and
Elevate a T3, of course, this is American Airlines. And
just a reminder we had bill money for about
a reminder, we had bill money for about 90 million dollars
that we received for this Construction.
dollars that we received for this construction. Uh, and
it's if you could see, it's not only inside but we're doing
work on the ramp.
ramp areas and it's going to be very uh,
ramp areas and it's going to be very uh uh nice facility.
Once it's completed.
Terminal 5 landside improvements.
Terminal 5 landside improvements parking garage. Uh, this
opened last year.
opened last year, uh, a 1400 spaces. Uh, we are doing the
flyovers, so it's easier to bring pass.
flyovers, so it's easier to bring passengers in their, uh,
in the front of that, uh, parking.
in the front of that, uh, parking lot between right before,
Terminal 5. And
Terminal 5, and they'll have easy access into Terminal 5.
and then here, just going from
And then here just going from right to left. Uh, the pink
is, uh, where the parking structure is? As you go west, you
see.
see the yellow. Uh, that is the, uh, term.
see the yellow. Uh, that is the, uh, Terminal 3 for
American Airlines continuing to the West is in the pink
Terminal. 1, Concourse, as
Terminal, 1, Concourse, as I stated it starts July July
1st,
As you keep on going west, you'll see the Basin that is
going to be.
going to be eliminated. Uh, and that
going to be eliminated, uh, and that alpha bravo taxi way
uh, going over. Once we fill it all. The purple is all the
utilities and Service Roads that we will be putting in uh
and the great separated roads.
Great. Thank you. Frank.
Great. Thank you, Frank. Um,
now, before
now before you go back Frank, I want to just say you know
that airport like the back of your hand.
I,
I think so a little bit. Thank you.
Sorry.
Moving on.
moving on to the,
Uh, yes, Alderman, Hopkins.
Oh yeah, I just 1 question on the presentation. When it
comes to the material, uh, that will be used to fill the
reservoir for the uh, alpha bravo project.
reservoir for the, uh, alpha bravo project, uh, have has a
decision been made about the source of that material
because it seems like it's going to be a significant amount
to fill that large. Can we hold that until he finishes the
presentation? I just,
presentation? I just took the Chairman's prerogative to,
uh,
presentation? I just took the Chairman's prerogative to uh,
compliment Mr. Grimaldi, but we have
compliment Mr. Grimaldi but we have uh, a few more pages
tovil and we'll take your question first.
So, moving on to uh, Midway Airport. Um, Midway also has
So moving on to uh Midway Airport. Um Midway also has um
ratings that are higher than the city's General.
ratings that are higher than the city's General obligation
rating. Um,
They have.
They have a equivalent with a stable Outlook from All 4
rating agencies. Um this is 1 Notch below, where
rating agencies. Um this is 1 Notch below where O'Hare is
uh generally rated Primm
uh generally rated primarily because um O'Hare is bigger
uh, generally rated primarily because um O'Hare is bigger
uh, and has more Diversified
and has more Diversified uh carrier base their um United.
and has more Diversified uh, carrier base their um United
and uh American their sort of like the strong.
and uh American their sort of like the strong dual Hub.
Whereas
About 90% of all the traffic at.
About 90% of all the traffic at Midway is, um, Southwest. So
rad agencies like to see, um, uh,
rad agencies, like to see, um, uh, carrier diversity at the
airport. So that's why they rated, uh, O'Hare 1, Notch
higher than Midway.
Moving on to the deal team. Um,
Moving on to the deal team. Um for both the refinancing and
the new money uh we would have 1 deal team led by uh,
the new money uh we would have 1 deal team led by uh Bank
of America with the rest of the underwriting Syndicate
filled out by 35%
Syndicate, filled out by 35% minority owned firms. Um, we
have, uh, also strong minority participation in the legal
and advisory teams.
and now, um,
Frank.
Frank will be able to show that he knows 2 airports, like
the back of his hand.
Thank you.
Thank you, Brandon.
first project is,
First project is the fuel Farm upgrades. Uh, this is an
upgraded
upgrade of a garage facility that is needed. Uh,
upgrade of a garage facility that is needed, uh, for us to
operate the fuel Farm, uh, to fill aircraft, of course, a
fuel us this
fuel us. This is in the south east, uh, quadrant of of
fuel us. This is in the south east uh quadrant of of the
parcel uh project will be complete in 202.
parcel. Uh, project will be complete in 2026 at a, at a
project cost of 5.5 million. Midway CIP implementation.
2024, uh, con Consultants are required,
2024, uh, con Consultants are required for the
implementation of the Midway Capital uh, CIP program.
implementation of the Midway Capital, uh, CIP program,
Services include a program, a construction management.
Services include a program, a construction management
financial and technical support, and allocation of Aviation
staff costs support.
staff costs supporting the capital program.
this was completed in 2024 and the cost was, uh,
This was completed in 2024 and the cost was uh, 5 million.
Midway International.
Midway International Terminal, restroom renovation project,
as you know,
as you know those restrooms are used a lot and we have
every once in a while we have to upgrade them of course.
every once in a while we have to upgrade them, of course,
renovation renovation and redesign of 49, designated
public, restrooms and other public.
public, restrooms and other public use areas encompassing
uh, approximately
approximately 7,000 17,000 square feet. Uh completed.
approximately 7,000, 17,000 square feet. Uh, completed a
second quarter 2029 at
a second quarter, 2029 at 31 million,
Uh, the North Sea Matrix recap.
Uh, the North Sea M Matrix wreck capitalization
optimization. Uh, this is replaced inbound. Baggage
handling systems and oversized bag baggage handling
systems. Uh
uh logic controllers as I stated earlier.
uh logic controllers as I stated earlier the technology is
growing and growing quickly. So we
growing and growing quickly so we have to keep with the
time. So every once in a while we do,
time. So every once in a while we do upgrade these systems
uh project complete.
uh project complete uh in date is a third quarter 2026.
uh project complete uh in date is a third quarter 2026 at
1.8 million.
Loading Bridges. We need them to walk into the airplanes,
of course, passenger loading.
of course, passenger loading Bridge, refresh or renovation
of 43 pass.
renovation of 43 passenger, uh, boarding Bridges. Uh,
of 43 passenger, uh, boarding Bridges. Uh, completed in the
third quarter 2026 at 3.6 million dollars.
If you look at the pictures on the left, is the Matrix.
If you look at the pictures on the left is the Matrix, uh,
and the recapitalization opposition.
and the recapitalization opposition for the baggage
systems, a fuel Farm up.
systems, a fuel Farm upgrades to, we're putting another
building so they could operate.
building so they could operate uh, more efficient uh in the
facility.
they could operate uh more efficient uh in the facility. Uh
the Midway uh terminal, restroom renovation project,
the Midway, uh, terminal restroom, renovation project as
you see and the passenger loading Bridges.
project as you see and the passenger loading Bridges, which
we need to refresh.
as we go on the air side, uh pavement replacement program,
this is a multi-year uh pavement replacement a program for
original concrete as you know airplanes are very heavy and
when you park an airplane on a static concrete, it's a lot
different than just landing on.
different than just landing on a Runway. Uh, those planes
are very heavy heavy, so,
are very heavy heavy. So, uh, we need to replace that
pavement. Uh, often, uh, we we are are doing it.
pavement. Uh, often. Uh, we, we are are doing it and we
can't do it all at 1 time because we can't lose all.
can't do it all at 1 time because we can't lose all the
gates at 1 time. So we do a couple 3 or
gates at 1 time. So, we do a couple 3 or 4 or 5 every year.
Uh, completion date to
Uh completion date to all get these done is third quarter
uh 2031 uh project cost 800 million.
Engineer materials are resting systems.
Engineer materials are resting systems EMASS.
Quick explanation behind.
Quick explanation behind everyone. Wait, Runway, you have to
have a thousand feet,
have a thousand feet per FAA, regulation, 1 139,
have a thousand feet per FAA. Regulation, 1 139 at Midway,
we do not have a 1000, ft saf.
we do not have a 1000 ft safety area. So we have to place
these EMAs pads and what this is is when an aircraft if
these EMAs pads and what this is, is when an aircraft, if
an aircraft would overrun the runway instead,
an aircraft would overrun the runway instead of going
straight, it would just sink into the concrete and
straight, it would just sink into the concrete. And it's
very safe, especially at airports like Midway where you
don't have the Thousand, uh, foot safety area. We put these
in place about 78 years ago and we have to continue to
repair them and the FAA comes out and we check them every
few years to make sure that they're still in.
few years to make sure that they're still in regulation. So
the repairs and restoration of these 3 Me 3, EMS beds are
located at the end.
located at the ends of Runway 22 left. Runway 13 Center and
Center and Runway. 31 Center. Completion date is
Center and Runway. 31 Center, completion date is third
quarter 2025 with a cost of
2025 with a cost of 88 million.
The Midway Central.
The Midway Central Terminal plan. This is an area that will
relieve concess concess, uh congestion I should say around.
around terminal ramps, during peak hours and weather
events.
If we have snow snow, if we have swaps, which we
If we have snow snow, if we have swaps which we call severe
weather, uh, airport program.
weather, uh, airport program and any overflow we need
need someplace to put these airplanes. Uh, this will be
completed in the second quarter of 2028.
completed in the second quarter of 2028, 128 million.
Runway repairs and Runway and approaches 13 Center.
Runway repairs and Runway and approaches 13 Center 31
Center. This is ongoing as we speak. Just started uh, last
week Milan overlay of Runway, 13 Center and taxiways and
runways, uh, geometric, uh, changes to Runway 13 Center
Pat. Taxiway p and Taxi.
Pat, taxiway p and taxiway whiskey to align with FAA
guidelines. And the 139 139 is
and the 139 139 is very important. It's just it's a
certificate that we get from the airport from the fa8 to
operate both airports. Uh this will be completed in the
first quarter.
first quarter of 2026 at 6, 1. 5.
in a few years, we're
In a few years, we're going to be doing the same work,
we're doing on Runway 13.
We're doing on Runway 13 Center for Runway. 4 write 22
left. It's a mill.
left. It's a Mill and overlay of that Runway intersecting
Taxi.
taxiways and we're going to change some of the
taxiways. And we're going to change some of the taxiways
around it per the FAA guidelines.
around it per the FAA guidelines uh, to eliminate uh
pavement, which is, is dearly needed uh project completion
date.
completion date. Uh fourth quarter 2029 at 46.
completion date. Uh, fourth quarter 2029 at 46 million.
as you see on the
As you see on the map, uh, 4, write, 222 love, free have.
That's going to happen in a few years. If you look below
that.
that, that's what we're doing, uh, started last week.
that, that's what we're doing. Uh, started last week in the
purple. Uh, the EMASS that we call. If you see where the,
uh, yellow arrows, are there, that's the bed. So, for the
airplane, would slide off that he wouldn't go beyond that.
He would just sink into the pavement.
Okay, it's called a collapsed concrete. And and we have to
test it every make uh every year to make sure that it is
in.
in uh, per uh, 139 the
in uh per uh 139, the Midway, Central Terminal plan, that
will help.
will help, uh, especially during bad weather. We're also
going to use it for secondary, the icing for aircraft.
and,
and the air site pavement replacement program, where you
see some of the areas are working on this year but
eventually in the Years coming, we will do the rest of the
pavement.
Here, you see a map of Midway?
Uh, the orange in the middle is the repair that we are
doing as we speak.
doing. As we speak on 13 Center, 31 Center, the pink,
as we speak on 13 Center, 31 Center, the pink is what we're
going to do in a couple of years and to the right is the
terminal area ramp that you see?
terminal area ramp that you see uh that we will be doing
some replacement.
some replacement on
Thank you.
Thank you Frank, thank you. Thank you. So um, just a few
points uh, to making conclusion. Um,
points uh to making conclusion. Um just want to reiterate
that the the only source of repayment for these bonds are
airport, revenues generated at
airport revenues generated at O'Hare and Midway
respectively. Um, these bonds are not secured from tax
revenues or other revenues in the city's general fund. Um,
the use of these proceeds would be used exclusively for
capital projects at O'Hare and Midway or in the case of the
refinancing tender um to generate savings. If the market
conditions uh hold up to where we see them now. Um, these
bonds are not being issued for operating expenses.
Or liquidity needs.
Um, and the tax status.
Um and the tax status of these bonds uh both the O'Hare and
Midway bonds.
Midway bonds are expected to be exempt from federal income
tax and
income tax and with that, I would conclude my presentation.
Thank you Brendan. I'd like to start.
Thank you Brendan. I'd like to start off the questions with
the alderman. Oh,
the alderman, OSHA or chairman, OSHA, chairman of Aviation
and then
and Then followed by Alderman, Hopkins and Alderman Beale.
Thank you, chairman.
Um, I
Frank ramalde could stand in the hallway for the next 2
hours. And give more details of what he just gave.
Um, this obviously is very extensive work. This is work
that needs to be done. This is a
needs to be done. This is a continuation of progress.
of all the
Of all the ongoing Capital Improvements. Um, I I just want
to make a short statement about
All of.
all of this.
Is extremely important work.
That we continue both international airports.
That we continue both international airports O'Hare and
Midway competitive.
To re.
To reinvest to modernize.
I don't need to tell all of you, how
I don't need to tell all of you. How many airports across
the Midwest would?
the Midwest would love to start to take some of what we
have at our 2, international airports and we need to
continue to reinvest uh none of this
Financing. We're talking about.
Uh, affects anything.
uh, affects anything but the airport um, this is this is
about reducing interest costs.
And this is significant.
And this is significant savings.
Myself.
myself, Vice chair, Curtis, and everybody here from CDA,
will be available, uh, all morning. Even after the meeting
is done, but, um, this is critically important.
is done, but, um, this is critically important work.
That we need to keep.
That we need to keep modernizing. We need to keep moving
forward to stay competitive. Thanks chairman, thank you.
And speaking of Vice chair Curtis, I want to acknowledge
Him.
Him Alderman Hall, and you all
Him, Alderman, Hall, and you Alderman, AE, uh, and count
you towards quorum.
you towards Quorum along with, uh, Alderman, clay and
Chico. Who
who are here. But are not members and
are here, but are non-members. And with that, we'll move on
to Alderman Hopkins.
Yeah, thank you. Madam chair.
Yeah, thank you, madam chair. Um, you heard my question,
uh, in the past we've gotten
uh, in the past, we've gotten somewhat creative, uh, with
moving large amounts of material.
moving large amounts of material around at O'Hare. In fact,
we created 3 acres of Parkland.
we created 3 acres of Parkland, uh, just outside of my ward
on Fullerton, Avenue by
on Fullerton Avenue by, uh, using clean material when the
runways were, uh, reconfigured. So, are there any thoughts?
Uh,
uh along those lines to take advantage of this rare moment?
where there's such a large hole?
basically, that needs to be filled, uh, and we have some
other material that could potentially be the source of
that. Fill. Are we looking at that now?
that. Fill, are we looking at that now? So the material
that we're going to be using is the material that we have
already on the Airfield. So it's material.
already on the Airfield. So it's material that we use from
other projects and we've been collecting for the last 10-15
years. So I don't see.
years. So I don't see any material coming from the outside
to fill.
to fill anything that we're doing. And after we're done, we
might have some available but we'll have to look at it to
see if it's usable. Uh so of course there's pfas we have to
look
to look at and and so we have to test it and we have tested
it but we're going to use all the material we can to
but we're going to use all the material. We can to fill the
basins and do some of the other work once we get
the basins and do some of the other work once we get closer
to the end. We'll, we'll see how much we have available.
to the end. We'll, we'll see how much we have available and
if it's usable outside of the airport, all right? And know,
some of that material currently stored. Is that the result
of the excavation from the diversion tun?
of the excavation from the diversion tunnel? With that
boring? There is some of, yes,
boring? There is some of yes, but it's some, it's some
material that we've had in the past.
material that we've had in the past that we've done and if
you drive down York Road,
You'll see a lot of.
you'll see a lot of the Mounds that that are there but it we
we saved a lot of money in, keeping it on the Airfield, and
we saved a lot of money in, keeping it on the Airfield. And
that's, that's very important instead of incurring.
that's, that's very important. Instead of incurring costs
for Trucking and what are some of the contaminants that
have been identified in The Limited testing that you've
done mostly it's Pas. Uh, there is oils.
done? Mostly it's Pas. Uh, there is oils of course from
from uh, from Fuel and de
uh from Fuel and deicer and things like that. But the
concern we have now is be fast. It's not a lot but we
continue to test it and see and see where it's at. All
right, thank you that concludes my question.
right, thank you that concludes my questions. Madam chair.
Thank you Alderman, Alderman Beal.
Thank you. Madam chairman.
Just got a couple of quick questions. Um,
This Total Bond is, how much?
For O'Hare or Midway.
For O'Hare or Midway? Oh, both combined. Uh, both combined.
is
uh, 4.7 billion, okay? And how much are you asking for?
authorization today?
Is that the full amount?
Yes, okay. And
Yes. Okay. And out of the 4, plus bill.
Yes, okay. And out of the 4 plus billion. Uh are all the
funds.
funds allocated to
Project.
Projects, or are you looking for sort of a buffer?
um, you know, as far as the
Um, you know, as far as the bond is concerned. Yeah. So all
of the, uh, new money project funds are fully allocated to
the project.
the projects that are lists that we just went through,
okay? So,
okay? So you, you're presenting to us a full amount of the
bond authorization, for the project. Yep. Okay now help me
understand.
based on the testimony that we just took
Based on the testimony that we just took. There's a lot of
these projects that are already ongoing and about to be
completed. Correct?
uh, yes, some of them are ongoing just need additional
funding to continue when we say additional funding are we
over budget?
um,
I'd have to.
We are not over. Budgeted according to, no, not at all.
We are not over, budgeted according to no, not at all.
Okay, so how we authorize authorizing
so how we authorize authorizing bond funds today for a
project? That's
project that's going to be complete in a couple of weeks?
uh, I mean there are
Uh, I mean there there are multiple sources of funding. So
there's um, I think maybe, uh, Zach can speak a little bit
more to it, but there's there is both paygo funding. Uh,
that's being used. And there's also are we looking to
that's being used. And there's also, are we looking to use
Bond money to pay back?
Bonds that have already been spent.
Bonds that have already been spent in in some cases. Yes, we
do have some, um, short-term lines of credit that have been
drawn to cover.
drawn to cover some of these projects. Um, and
so, a portion of the the new money would
So, a portion of the, the new money would also potentially
take out some of those short-term lines of credit. We, um,
have been
trying to,
trying to avoid a case where we
Trying to avoid a case where we sort of uh get out over our
skis.
our skis and borrow money. That we know is not going to be
spent for another 2 years. So, we're trying to make it so
that because if we,
that because if we borrow money for projects that we know
is not going to um, go forward until next year or the year
after.
after we're paying interest on that money. Um while it's
just sitting around uh waiting to be used so what?
just sitting around uh waiting to be used. So what we've
been doing is trying to use other sources of funding and
our short-term lines of credit to try to line up the
issuance. So that we're not paying interest on sort of, uh,
dead time for the projects while. They're my question is,
how do you start construction?
how do you start construction without having a funding
source?
It. I Brandon, I can jump in. This is
It. I Brandon I can jump in. This is Zach boffman. I'm a
managing Deputy Commissioner at the department of Aviation.
managing Deputy Commissioner at the department of Aviation
so as Brenda
Sorry, excuse me. As Brenda noted, we do have funding
sources for these projects. It's the line of lines of
credit.
for these projects. It's the line of lines of credit that
have been authorized by city council. We draw down on those
lines.
lines from time to time to finance the projects.
lines from time to time to finance the projects and then
once we have reached our capacity,
once we have reached our capacity in the lines of credit,
we Bond those out with um Bond proceeds. I would also note
just for clarification that for the O'Hare. Bonds, we're
seeking authorization of
O'Hare. Bonds, we're seeking authorization of 4. Excuse me,
on the mic, we're seeking authorization of
seeking authorization of 4.3 billion dollars for the bonds.
The new money portion of that is only about half a billion
dollars, the remainder of that.
dollars. The remainder of that would be to refinance
existing.
existing debt or Tender, um, funds for existing debt. So
the portion that we're actually looking to to finance the
projects is just about, um,
projects is just about um, 500 million dollars, okay? So we
right now, today we do not have enough money to complete.
complete work, that has already been started.
Without this Bond.
Uh, we we do have in order to get the money out the door.
We have been drawing on our short-term line of credit, but
we
We have been drawing on our short-term line of credit, but
we
You all started a project without.
you all started a project without having funds in place
without using the line of credit.
uh, maybe Zach can
Uh maybe Zach can talk about what's necessary to get a
project going. Yeah, so so each of the projects that we're
constructing at the airport have been. We have
authorization from our Airline carriers to use a
rates and charges to finance those projects. So we could
assess the entire amount of the projects through just
collecting rates and charges on.
collecting rates and charges on an ongoing basis. That
would be our, you know,
be our, you know, primary funding source. Our Airline
carriers prefer that we don't you know, Laden all the debt.
carriers prefer that we don't, you know, Laden all the debt
on a single year. And instead we
on a single year and instead we capitalize the cost of that
project so that's why we're here.
that project. So that's why we're here seeking Bond
authorization to pay for it over.
authorization to pay for it over, you know, a 30 to 40 year
period of time rather than collect the entire amount that
we're authorized to in just this calendar year, okay? Let
me ask you another.
me ask you another question. How would you pay for this if
this Bond didn't pass today?
Then we would be required to assess.
Then we would be required to assess that through airline
rates and charges.
Okay.
Okay, all right. Well, let me just say I would I would
recommend that you all do not start.
recommend that you all do not start construction without
having finances.
having finances in place, uh, without using lines of
having finances in place uh without using lines of credit
and things like that. I mean, you can come to this body.
and things like that. I mean you can come to this body and
say if it's going to cost the 4 billion.
say if it's going to cost the 4 billion um you know you can
Bond but you don't have to bond.
Bond but you don't have to bond at all at 1 time.
but, but for you all,
But, but for you all to start construction and almost
almost be done.
almost be done with certain parts of this project and
saying that.
saying that, now, you need Bond money to pay.
The.
The line of credit back of or to pay for this part, you
know?
know, you all are putting the cart before the horse.
Don't.
Don't take this body for granted that we just going to
rubber stamp.
rubber stamp a bond that you all bring towards just because
you say you need it.
you say you need it, you know, and you're using the line of
credit.
credit however you all see fit to use the line of credit.
That's that's not right.
So I will recommend you all try to do things.
so I will recommend you all try to do things a little
differently over there because if this Bond didn't pass
you,
will be up the creek without a paddle or a boat. Thank you
madam.
madam president.
Vice chair Conway.
by 27 and the
By 27 and the appendix.
so,
so I'm just asking about the source of the refinancing it
Looks like you could see at least.
Looks like you could see at least 3 of them are from 2016.
When
Interest rates were a lot lot lower than they are today.
Um,
so,
so I I recognize that we can now issue shorter Dior
So, I I recognize that we can now issue shorter duration,
debt, which will have a slight lower interest rate, but it
doesn't seem like that.
doesn't seem like that would make up for,
rates being
250 basis points higher today. Give or take from 2016
So, what?
So what am I, what am I missing on that?
um,
so the the
So the these are just the candidates that we would look to
refinance. Um, if you go to the next slide in the
Uh deck.
Uh, deck. We have a detail of sort of, in the current
market. These are the actual savings where
market. These are the actual savings. Where look at that.
We would actually realize from these refund
actually realize from these refinancing targets.
So, so why would we have?
So so why would we have savings from 2016 bonds?
So, so why would we have savings from 2016 bonds? I mean I
can't imagine there's interest savings.
can't imagine there's interest savings from them. Uh yeah,
the
can't imagine there's interest savings from them. Uh, yeah.
That there there is. Um,
and we we uh, we're basically
And we we uh we're basically moving down the, the yield
curve. So
Bonds that were issued in, uh, 2016.
Bonds, that were issued in, uh, 2016 with the 30-year.
That's now 20-year Bond.
that's now 20-year Bond. Um, and, uh,
you know, if we were to get to Market and the savings
evaporated, we just simply would not do the, the
refinancing
great. Uh,
Great, uh, hard to believe thinking that the 10-year
treasury in 2016.
treasury in 2016 was 1 and a half to 2% and today, it's
like,
like 4 and a half. So hard to imagine their savings ref.
refinancing at 2016 Bond but if there is, that's great, I
guess, but that, that's my only.
guess. But that, that's my only, I'm so I'm a skeptic but I
hope you're right. Thank you.
Thank you. Thank you, skeptic. Always a skeptic. Um,
Alderman. Vagus
Thank you. Madam chair, given the
Thank you, madam chair. Given the changes that O'Hare. I
was too glad to see Frank in the room because he does know
those airports.
Backwards. And
Backwards and forwards. Um, 1 of my colleagues mentioned
about the time frame for this for this uh, project.
about the time frame for this for this uh project to be
completed. Its been reported, it's been delayed. So you
mentioned that it's not delayed, that's great, has the
gone up. Um, are we still on still on? Um,
Course, for the same dollar amount.
yes, we're if you're referring to tap, we are on budget for
tap the
tap, the our Airline use and lease agreement allows the
budget.
budgets for tap to escalate.
budgets for tap to escalate in accordance with the consumer
cost index. So the total project cost if escalation, you
know if that
know, if that increases our budgets increase, but we are
currently within that escalated budget, perfect. And then
has our have tariffs had any type of impact.
then has our have tariffs had any type of impact. Our are
you guys monitoring that? We we are tracking
you guys monitoring that? We, we are tracking that. Um, we
don't see very much exposure to the foreign markets and the
materials that were perch
materials that were purchasing. I think our biggest area of
potential exposure.
potential, exposure is in the bag, handling system, a lot
of those parts
those parts are, um, Canadian made but we are monitor,
that and factoring that into our budgets. I mean, our 51st
state, according to the, uh,
No, this is this is a great project. Uh, and
No, this is this is a great project, uh, and I encourage
all my colleagues to support this. This is the engine, uh,
for the region and happy to support this. Thank you, thank
you.
you, alderman, laspada.
Thank you so much. Uh, 2 quick questions. Number 1. Franc,
I found this fascinating. I think it was really
Well, presented, comprehensively presented. I was just
curious. I don't know what the Safeway is to do this but
you ever do and I'm sorry to be asking the 6 years in but
you ever do? And I'm sorry to be asking the 6 years in but
like do you ever do you like automatic visits?
like do you ever do you like automatic visits to Midway and
O'Hare so that we can get a sense on the ground?
O'Hare so that we can get a sense on the ground of what
what this work looks and feels like.
what this work looks and feels like we have we've have them
in the past uh I think
them in the past. Uh I think I've been part of most of them
and I think we're having 1
I think we're having 1 in the future right? Bernie yes. Hi
Bernie.
Hi Bernie Williams assistant commissioner and we are I'm
glad you
I'm glad you said that. Alderaan, that is on my to-do list.
So we are planning 1 for Late. July August. So stay
So we are planning 1 for Late. July August, so stay tuned
for that.
please try to make it August because
Please try to make it August because I'm going to be out of
town Late July.
town Late July sounds great. And it will also include a
tour of both airports as well. That sounds phenomenal.
Thank you so much. You're welcome. I just had 1 more like
more General. Finance question.
for the first time in,
for the first time in a while, I feel like you said,
expected to be federal tax free and
expected to be federal tax free, and I feel like that's
related to
current political condition.
current political conditions in DC. Um,
do you have a sense of when we're going to have some kind
of confirmation about what taxation on these bonds?
of confirmation about what taxation on these bonds looks
like, and
Worst case scenar.
Worst case scenario. What? How does that impact us?
financially. If, if DC
financially? If if DC does choose to apply?
Federal tax.
Federal taxation to municipal bonds.
Yeah, that's a good.
Yeah, that's a good question. So I think, uh, for now we're
we're safe. I think the current version of the, um,
Congressional budget Bill does not include.
budget Bill does not include um any limit or elimination of
of tax exemption for municipalities. Um, it's a little bit
difficult to say, exactly
it's a little bit difficult to say exactly, um, how much it
would cost. Uh, we have, we
we have we have done some analysis, uh, related to
related to, um, Alderman vasas, uh, res.
related to, um, Alderman vasas, uh, resolution calling to
preserve tax exemption. Um, there are a number of
different, um, proposals that were floated around, um, 1.
would, uh,
Of cap, the amount of taxes and bonds that given
municipality could issue. So,
municipality could issue. So say every municipality or
every municipal,
every Municipal issuer, could do up to 500 million dollar
tax exempt and
tax exempt, and everything else would be, uh, taxable
regardless.
regardless of the size of the municipality, uh, that was 1
of the proposals floating around. Um, and yet the city
would be, uh, have an outsized.
would be, uh, have an outsized impact on the city as well
as, you know, state of New York State.
as you know, state of New York State of California, New
York City, other large issuers would
York City other large issuers would um
Uh, have to figure out.
Uh, have to figure out how to work around that or how to we
would have to figure out.
would have to figure out, like, how are we going to manage
that? Do we want to?
that? Do we want to save all of our tax exemption for
refunding on the general obligation side? Do we want to
save it for sort of these big Capital programs? Um, so we'd
have to do the math on that to figure that out. But for now
it looks like
now it looks like, um, that is off the table in the current
version of the bill. So we have, at least, I think another
year before, um, new proposals come up.
Okay.
I appreciate that. Thank you. Thank you, chair.
I appreciate that. Thank you. Thank you chair. Thank you.
Um Zach I just had 1 question, do you?
Um Zach I just had 1 question. Do you brief the various
Airlines about
These Bond transactions.
These Bond transactions before you. Come here, yes.
you. And how often do you meet with them?
Oh, is it is it a committee or we talked to the
Oh, is it, is it a committee or we talked to the airlines
on almost a daily basis, but we have a, a
on almost a daily basis. But we have a, a monthly meeting
called the executive working group that briefs out issues
like this. And we have a separate.
like this. And we have a separate monthly meeting, uh aaac.
aaac, which I'm sorry, I don't know what the acronym stands
for.
off the top of my head, but where we also briefed out these
topics dark carriers. Thank you. Um,
I'll take a motion from Alderman, V.
I'll take a motion from Alderman Villegas. Recommending do
pass on this item. All
pass on this item all those in favor. Signify by saying, I
Opposed and the opinion of the chair. The eyes have it, and
the due pass of recommendation were reported out at the
next city council meeting.
moving on to,
Moving on to item number 4 on the Department of Finance
agenda.
Agenda is the substitute ordinance, amending municipal.
agenda is the substitute ordinance. Amending Municipal Code
chapter, 2-32 d.
chapter, 2-32, D, 085 concerning, voluntary char.
chapter, 2-32 D, 085 concerning, voluntary charitable,
payroll deductions.
There is a.
There is a substitute ordinance which has been prepared and
sent out.
sent out electronically to everyone. Is there a motion to
accept this substitute ordinance? So moved by Alderman
laspada, all those in favor. Signify by saying I I in the
opinion,
opinion of the chair, the eyes have it and the substitute
ordinance is now before the committee and will be
explained.
by Michael penis.
by Michael penis penis.
from the Department of,
From the Department of Finance, Michael.
we're, we're
We're also joined by uh, chip Hastings. Deputy director.
We're also joined by, uh, chip Hastings. Deputy director of
the Department of Finance.
good afternoon, uh, madam chairwoman
Good afternoon, uh, Madam chairwoman members of the
committee. My name is Michael pennis snack from the chief.
financial officer's office, uh, and I'm here today,
financial officer's office. Uh, and I'm here today, uh, to
present a substitute ordinance, revising. The
present a substitute ordinance. Revising, the voluntary
charitable payroll deduction program.
as a brief primer, uh,
As a brief primer. Uh, the program was created in 2008.
as a brief primer, uh, the program was created in 2007, the
program allows city employees to contribute
the program allows city employees to contribute a portion
of their post tax income.
of their post tax income, to up to 10 Charities, that are
listed in the ordinance. This is not a matching program.
Uh, so Charities, don't receive any additional funds, um,
through this.
Uh, an importantly to the revision.
uh, an importantly to the revision at present, uh, the
ordinance, uh, states, that up to 50 chars, uh can
participate.
Uh, the application process.
uh, the application process, uh, laid out in this ordinance,
uh,
Interested Charities will fill out a CFO created applic.
application, they certify their tax exempt status.
application, they certify their tax exempt, status certify
that they operate in a area eligible. Uh,
that is listed in the ordinance. Um, they certify that they
will.
will pay program costs.
and,
And uh, then
We would.
we would bring them, uh, to uh, this body and
We would bring them, uh, to, uh, this body and the city
council for, uh, consideration.
Uh, today I'm here with the substitute.
uh, today I'm here with the substitute ordinance that, uh,
adds, uh,
Adds, uh, such an organization. The St Jude. Uh, police.
League, uh, was organized in 19.
League, uh, was organized in 1932 and they cover expenses.
incurred by the chaplain's ministry for providing wake
services.
services for departed members uh both.
services for departed members, uh both active, and retired
and their families. In addition to providing, uh, Referral
Services, uh,
Services uh for counseling. Um, this also changes language
in the Orden.
in the ordinance uh to make it clear that we are not. Um
NEC
necessarily obligated to remove Charities that do not have
250 contributors.
um, it also removes 2 organizations that have dissolved
those are kids in danger and earthshare Illinois.
um, it adds language clarifying that uh scholarship
um it adds language clarifying that uh scholarship funds
for higher education are eligible, uh,
for higher education are eligible. Uh for consideration at
present the Hispanic.
present, the Hispanic scholarship fund and uncf are to
participating Charities um this
participating Charities. Um this substitute ordinance would
also uh limit the maximum number of Charities to 30. This
is not meant to be exclusionary, but
is not meant to be exclusionary but rather that the
city-wide payroll division has informed us that the current
software uh,
software, uh, only would allow them to uh, send such
deductions to up to 30 organizations.
Um,
and we would also, uh,
be uh, providing this committee.
Be, uh, providing this committee with an annual report, uh,
moving forward. If the substitute ordinance passes.
I uh, thank the committee, uh, for this time and
respectfully, uh request. Uh,
uh request uh passage. Thank you, madam chair. Uh thank
you.
chair. Uh, thank you. And also you have your
you. And also you have your current Charities, the list of
current Charities on their
list of current Charities on there, okay? Yeah, those
people can see the current charities.
people can see the current Charities that are currently
recipients.
recipients of uh, support from
recipients of, uh, support from the employees of the city.
And then the next 1 is the service areas that these
charities
Charities, um, can cover
Uh, alderman.
Spazer.
Madam chair. Uh, just a quick question. I think you're
wrong. I think we've been doing this. Uh,
I've, I've been working for the city since 93 and I've been
contrib.
contributing, so not that it's a factor at all, but
contributing, so not that it's a factor at all. But, uh,
just wondering 1 Thing. How does how does an organiz?
just wondering 1 Thing. How does how does an organization
come about if they want to get out of here? Like,
come about if they want to get out of here like St? Joe's.
Now, they're on. How did they come about to get a meeting?
How, how does that work? I'm just curious. How if somebody
else want to be?
else want to be part of this? So, uh, the, uh,
else want to be part of this? So, uh, the uh, yes, you are
correct that there was a version of this program.
correct that there was a version of this program that
existed before the current program was established. Um, as
far as how the uh the St Jude uh, police League. They uh,
just proactively uh, reached out to us and asked.
just proactively uh reached out to us and asked for an
application.
um, and
Um, and so we sent them an application and they sent it
back. Uh, so it's really kind of a first come first serve.
uh, system at present and, and in, in
uh, system at present. And, and in, in a sense that the
world that we live in nowadays, if somebody was offended by
an organization that was in there, um, what happens, how do
we go about with something like that? Is it, you guys.
Decide is the counc,
decide is the council vote on it. The
uh, the uh, Council uh, votes for additions and
Uh, the uh, Council, uh, votes for additions and, uh,
removals from the uh, program. Okay?
You very much. I appreciate it. Thank you, madam chair.
Thank you.
thank you Alderman, sposano Alderman, Lee
Thank.
Thank you, madam chair. Um,
I think you said during your presentation, I may have just
missed it. Um, do we have in the aggregate? How many people
particip?
participate in the program currently? Uh, so I did not
include.
include that. Uh, in my presentation it is a little over
3,000 uh, employees who made.
3,000, uh, employees who made 8,000, uh, contributions. Um,
employees can donate to uh more than 1.
employees can donate to, uh, more than 1 charity and, uh,
many choose to do so. So that's where the Des
many choose to do so. So that's where the discrepancy
between uh, contributors and contrib.
between, uh, contributors and contributions comes from.
It's a good problem to have. Yes.
It's a good problem to have. Yes, generous
employees who are participating? Uh,
And the currently.
Go. Actually. So through the chair, can you provide?
Go. Actually. So through the chair. Can you provide, um,
the the link of time each?
the the link of time? Each of the 30 of the 29 that are
currently, um, in the program, how long they've been in the
program? Uh, yes, I can do that. Um,
program? Uh, yes I can do that. Um, most if not, um,
program? Uh, yes I can do that. Um, most if not um all will
not uh many of these have been
will not, uh, many of these have been in since, uh, 2007,
um,
I know black fire brigade and uh Ging.
I know black fire brigade and uh Ginger.
Our real guy, why me softball tournament.
Our real guy, why me softball tournament were added in 20.
In the 2020s. Um, and I believe EMQ.
In the 2020s. Um, and I believe EMQ was added in 2008, but
I will through the chair find exact dates for these
additions. Yeah. And I'm also interested in just sort of
how many, again in the aggregate. Um,
how many people give to each of these?
How many people give to each of these Charities and what
they're getting? Um,
Space is limited to 30. And, and I understand why.
space is limited to 30 and, and I understand why, um, but
uh, if there was, there were other people who wanted to
participate in this. I know that there is a process for it,
but then that necessarily means something has to come.
but then that necessarily means something has to come off.
So I'm wondering if there, if there is a process
So I'm wondering if there if there is a process or if we
need to come up with 1, that is you know, bar and Equitable
at the end.
Equitable at the end of the day, um, especially if there's
organizations.
organizations that maybe aren't getting as much usage. Um,
organizations that maybe aren't getting as much usage, um,
it could be taking up a space that maybe more employees
would be interested.
would be interested in.
I, I agree with that. That was something that came up in my
briefing with the Department about, uh,
briefing with the Department about uh, uh, people who are
organizations who are not really getting the support. Um,
and how do we handle that? And I think it requires a little
more discussion, okay?
more discussion, okay. Uh yeah and and thank you for that
chair. I I think
chair. I, I think just for that reason. Um, it would be
great to. I, I don't know what the annual report would
include. I mean, this seems like I want to support this.
general, uh, but would love to see a little bit more meat
on the
the bones in terms of the process. Um and what's going to
be in this annual report
Support. Because if we can use the report, then to evaluate
who stays on and who, or if there is a reason to look at
taking someone off,
taking someone off the list, um, and giving someone else a
shot. I think that would be a fair thing to do. Can you
speak to the elements?
speak to the elements of at least the elements that are in
the general, the annual report?
the general? The annual report that you're thinking of, or
have considered?
Yeah. So um at present, if I were to, uh, prepare an annual
annual report today, there would be just a brief narrative
summary of happenings followed, uh, by something like, uh,
this, which has
The Char.
the Charities, the number of contributions and um, either
the calendar year, total or the projected calendar.
the calendar year, total or the projected calendar year,
total
and,
Do we?
Do we get any, uh, information from the Charities? And you
may have already said this, and I apologize. If if you did.
Um,
Um do we get information from the Charities of how the
funds are being?
funds are being used? We do.
Okay.
so,
So um we have not solicited that information.
So, um, we have not solicited that information. I
believe wholehearted like if we
believe wholehearted, like, if we were to ask, they would
tell us if that is something, uh, that would be of
interest. I will, you know, send those emails if that is
something,
something that is wanted in the annual report, but
philanthropic background coming and rearing its ugly head
right now. So, don't mean to create more work, but I think
it is useful. Um, especially if we want to get more than
3,000 employees. Uh,
3,000 employees, uh, donating. Ultimately, would you be
willing to meet?
willing to meet with?
willing to meet with offline?
Help. Uh,
craft the uh, elements of
Craft the, uh, elements of the annual report that would be
helpful happy to.
helpful. Happy to thank you. That's all I've got.
seeing no other questions, uh, can
Seeing no other questions. Uh, can I get a motion for
approval of this item?
So moved by, who was that?
Alderman.
Alderman Vasquez, all those in favor, signify by saying,
Alderman Vasquez all those in favor signify by saying I I
opposed in the opinion of the chair, the eyes have it and
the recommendation will be report.
the recommendation will be reported out at the next city
council meeting. Thank you. Thank you very much. Item
number 5 is
Number 5 is an ordinance. Amending the vehicle violation.
Debt relief, ordinance of 202.
debt relief, ordinance of 2025 to extend the debt relief
period it
period. It was a direct introduction and the ordinance,
period. It was a direct introduction, and the ordinance has
been prepared and sent electronically to everyone. We're
joined by Joel Flores. Uh,
joined by Joel Flores uh from the Department of Finance.
To explain.
This amendment.
You don't have a presentation that you're speaking.
Good afternoon.
So, the substitute ordinance.
So, the substitute ordinance is just, uh, an extension to
allow motorists additional.
allow motorists additional time to participate in the
vehicle debt.
vehicle debt relief program.
Will you tell us?
Will you tell us why? We're extending it for a month?
um, to allow more motorists to
Um, to allow more motorists to participate and to allow us
more time to communicate out.
more time to communicate out to our ahlers, our motor.
more time to communicate out to our ahlers, our motorists,
uh, to increase our current collection.
uh, to increase our current collections, which are
currently at about 10 million dollars right now.
Uh, can you repeat the last part? I didn't. Yes. We're
currently at about 10 million dollars and how much?
currently at about 10 million dollars and how much that we
budget for 15 15 million. So we're trying to make sure we
get our 15.
get our 15 million. Is that what? Yes.
All right.
Alderman. Reilly
Thank you, madam chair and to kind of fles.
Thank you, madam chair and to kind of flesh out the rest of
that.
Scenario for us. How much debt have we forgiven?
9.3, how much 9
9.3. How much 9.3 million. 9.3 million. Yes.
And we've gotten 10 million in the door.
And we've gotten 10 million in the door so far. Yes.
And you want to extend this for how long.
1 month.
And you believe that you're going to hit the 5 million.
that you forecasted when you went into.
that you forecasted when you went into this program? Yes.
Okay.
Okay, thank you. Madam chair.
Thank you Alderman. Any other questions on this matter?
uh, Alderman Reilly makes a motion for
Uh, Alderman Reilly makes a motion for due passage um all
those in favor. Signify by saying I I opposed in the
opinion of the chair, the eyes have it, and the due pass
recommend,
recommendation will be reported out at the next city
council.
council meeting. Thank you Mr. Flores, thank you item
number 6 from the Department of Fleet and facility
management.
management is an ordinance. A substitute ordinance,
authorizing. The execution of the tax
authorizing the execution of the tax increment, financing
Redevelopment agreement and a
Redevelopment agreement and A Renewed lease agreement with
the Chicago Children's Advocacy Center for the city-owned
propert.
property, located at 1240 South Damen Avenue.
property, located at 1240 South Damen Avenue in the 28th,
ward in an amount. Not
ward in an amount, not to exceed 2 million.
ward in an amount, not to exceed 2 million, 9,000
205 dollars. Um, can I get a motion to accept the
substitute?
So moved by Alderman, Lee. All those in favor. Signify by
saying I I opposed and the opinion of the chair, the eyes
have it, and the substitute ordinance is now before us
have it and the substitute ordinance is now before us and
we'll be explained explained by Merit Solace the assistant,
commissioner for the Department of
assistant, commissioner for the Department of Fleet and
facility management
Good afternoon. Good afternoon, Sharon. Thank you.
Good afternoon. Good afternoon Sharon. Thank you. Um,
Good afternoon. Um,
Good afternoon, um, members of the committee as well for
the record. My name is marital
the record. My name is Merit Elise on behalf of the
Department of Fleet and facility management.
The department is requesting your approval.
the department is requesting your approval to execute a
tiff Redevelopment agreement with the children. Um sorry
the Chicago Children's Advocacy Center.
the Chicago Children's Advocacy Center um here on after
referred to as
referred to a CCAC.
The non-for-profit organization.
The non-for-profit organization, leases property city
property located at.
property. Located at 1240 South Damen Avenue consisting,
property. Located at 1240 South Damen Avenue consisting of
approximately 28,000 square feet,
approximately 28,000 square feet of building space and an
adjoining.
adjoining 43,000 square feet of parking space.
The property is located in the 28.
The property is located in the 28th war and Alderman. Ervin
is in full support.
For background, the department of Fleet and facility.
management formerly entered into a lease agreement with the
CCAC in July of 2012.
CCAC in July of 2012, for the use of the site.
The consider.
The consideration for this lease is base, rent in the
amount of $1.
amount of $1 for the entire term.
The lease.
The lease is being extended for an additional 5 years.
And the Redevelopment agreement, outlines a renovation.
And the Redevelopment agreement, outlines a renovation, a
renovation project for the existing FAQ.
renovation project for the existing facility.
The project is located with.
The project is located within the Western Ogden Tiff area.
in the purpose of the renovation is to maximize the use of
space. Uh, that accommodates uh growth.
space. Uh, that accommodates, uh, growth at the center and
increase security mental,
increase security, mental health, space Child Life
Services, and additional
and additional seating for CPD detectives that are housed
at the center.
are housed at the center working collaboratively with the
CCAC,
To.
Total project cost is estimated at.
Total project cost is estimated at 3,925.
Project completion is estimated to.
Project. Completion is estimated to wrap up. Um,
Next.
Next year.
The CCAC has.
The CCAC has uh received a Federal Grant in the amount.
the CCAC has uh, received a Federal Grant in the amount of
Oh, thank you.
Uh, the CCAC has secured.
uh, the CCAC has secured a $1 million, Grant Federal Grant
uh the CCAC has secured a $1 million, Grant Federal Grant
from um,
from um Human Services, human resources and services.
from um Human Services, human resources and services
Administration.
The Tif request is in the remaining amount of 2.
million 9,250, which was
Million 9,250 which was approved through the Tiff
investment committee.
In uh, March 26th of 2024.
the need for,
The need for the Tif funding is to address the increase in
the demand.
the demand for mental health services, which calls for
added space for additional law enforcement professional.
added space for additional law enforcement professionals,
as well as additional clinical space for intake rooms and
Education and Training rooms.
The site was originally funded and built by the city of
Chicago approximately 25 years ago.
Chicago, approximately 25 years ago specifically to house
the Chicago Children's.
the Chicago Children's Advocacy Center, who coordinates the
efforts of child protection Staff Law Enforcement
professionals.
professionals, family, advocates, uh, medical experts and
mental health clinicians responding to reports of sexual.
sexual uh child sexual abuse as well as physical abuse.
Witness to viol.
Witness to violence and other cases of serious maltreatment.
Since its Inception.
the CCAC has served more than
The CCAC has served more than 50,000 children.
over the years, the city has supported the work of the CCAC
who partners with
CCAC, who partners with the Chicago Police Department, the
Illinois Department.
Illinois Department of Children and Family Services. And
the Cook County State's Attorney's office,
We?
We continue to coordinate with the center on Improvement
projects.
projects at the facility, which is why we're here today to
respect.
respectfully request your favorable consideration.
respectfully request your favorable consideration and the
approval of this Tif RDA
and the CCAC has,
and the CCAC has a long-standing protocol with
investigative Partners such that the police department
orders, the
orders the Department of Children and Family Services.
orders the Department of Children and Family Services, uh,
policy specifically require that.
policy specifically require that CCAC be used for the
investigative. Uh,
investigative uh efforts of these crimes.
CPD. Also occupies space here in this building.
CPD. Also occupies space here in this building to allow for
partnership in the critical work that they do.
partnership in the critical work that they do on behalf of
the city.
And we're joined here today.
And we're joined here today by CEO of the CCAC.
And we're joined here today by CEO of the CCAC Shara
revette who can tell us a little bit more about the
services that they provide
Yes. Um, Miss revette if you could speak to your work as
Yes. Um Miss revette if you could speak to your work as CEO,
I know you have um your compassionate leadership has had a
major
had a major impact over there and it's great to see um
Aaron car.
Aaron Carboni working with you.
Thank you, chairwoman dowel. Thank you for those.
Thank you, chairwoman dowel. Thank you for those kind words
and thank you Merit. I am Shah
and thank you Merit. I am shahat CEO Chicago Children's
Advocacy Center and as you heard we've been around.
Advocacy Center and as you heard we've been around for 25
years we have been in a very strong relationship.
years we have been in a very strong relationship and
partnership with the city of Chicago, all these years
partnership with the city of Chicago. All these years being
supported financially by our building and also,
supported financially by our building and also by grants
that we received through the department of family.
that we received through the Department of Family and
support services and through the Department of Public
Health as well. So we appreciate very much this long-term
partnership with the city of Chicago. We are required by
City protocol.
City protocol and by state protocol to serve any child.
That's been a victim of sexual abuse,
That's been a victim of sexual abuse. That's reported
reported in the city of Chicago. So,
reported in the city of Chicago. So we we are there for
every child. Every citizen in the city.
every child, every citizen in the city of Chicago. Uh, if
that's report a crime reported to CPD or the Department of
Children and Family Services,
Children and Family Services. So we we are here for them
every day of the week.
every day of the week 365, to make sure that those
investigations are done successfully. Uh, between those 2
entities and that we are there for those kids.
entities and that we are there for those kids every single
Say to make sure they are supported.
Say to make sure they are supported in their families are
supported as well. We are out of space completely. We have
about 180 people in this building at this point.
about 180 people in this building at this point in time
between our staff and all the partner staff. We are
squished in there. We want to make sure that we can improve
our FAQ
our facilities to serve more children and to make sure that
all of our partners staff have adequate space so that we
can effectively work.
can effectively work together.
Thank you.
Thank you, Miss Revit. And I know we have a letter of
support from Alderman. Ervin Alderman, do you?
support from Alderman. Ervin Alderman, do you want to weigh
in here? I see you remain.
in here? I see you remained on.
All right. Thank you. Madam chair.
All right, thank you, madam chair. Um, again the work that
Sharon and her team do over there with our young people
who,
who've gone through some probably 1 of the most dramatic
experiences.
experiences of their lives. Um and the way they do this,
experiences of their lives. Um, and the way they do this,
and go about using the, uh, best practices that are that
are known in this place, actually,
are known in this place. Actually, on people come there to,
uh, witness and see what the work that our starter team do
their
there, um, and they are really, really out of
there. Um, and they are really, really out of space. Uh, if
you've ever been over there, you'll see how our Detectives.
are uh, assistant States attorneys and other people.
are uh, assistant States attorneys and other people are
just crammed into that facility. Um sorry our team.
just crammed into that facility. Um sorry our team have
gone out and secured some federal money from uh I
Senator Durban and uh working with the state to get
additional funding, uh, to expand. Uh, physically,
additional funding uh to expand, uh, physically, expand the
space and also expand services. So, again,
the space and also expand services. So again, uh, it's
definitely a very positive use of our city resources. Uh,
because again, it's hoping some of the most vulnerable
people.
People in society are young people.
People in society are young people who have experienced
sexual trauma. Thank you. Madam chair.
Thank you Alderman. Uh, did see Alderman laspata? You did
put your hand up. Just
Yes, thank you.
Yes, thank you so much chair. Um,
I think the work Happening Here is incredible. It's 1 of
the
aspects of response to violence.
aspects of response to violence and abuse that if you have
not had an opportunity,
not had an opportunity to go in person, I think it's
something that needs to be not even seen But felt
something that needs to be, not even seen, But felt to be
fully understood.
It is.
It is as cramped as you say, and in.
it is as cramped as you say and in terms of space, I I did
want to ask if you could speak a little bit,
want to ask if you could speak a little bit to the vision
for the can hope.
vision for the can Hope Center, and what that would mean
for.
for coordination and victims of sexual abuse in Chicago,
Yes, my pleasure.
Yes, my pleasure Alderman. Um, our next kind of
Yes, my pleasure Alderman. Um our next kind of big project
at Chicago cc is to open something called can hope that
Chicago advocacy Network for Hope which will take the model
that we do with children, who have been sexually, abused
and traumatized, and apply that model to adults.
and traumatized and apply. That model to adults who are
experiencing domestic violence and sexual violence. We are
about to open Phase 2 which is on the west side of Chicago
van beer and Home in some rented space but
van beer and Home in some rented space. But our long-term
vision is to actually build another building.
vision is to actually build another building next to the
existing building owned by the city of Chicago.
existing building owned by the city of Chicago and connect
that new building to, uh, Chicago CC. And our idea is to
fund raise for that,
Building and we do have 5 million already.
Building and we do have 5 million already committed by the
city of Chicago. Uh and we hope to expand upon
city of Chicago. Uh, and we hope to expand upon that and
also look at other government sources and private sources
to build a new building connect,
to build a new building connected to Chicago CC in truly
expand.
expand, our entire mental health program will move over
there. And also we will open up, can hope fully for all.
there. And also, we will open up, can hope fully for all
residents of the city of Chicago that are experiencing
Domestic and Sexual Violence of any age.
Domestic and Sexual Violence. Of any age will be able to
come to the center, a full service area.
come to the center, a full service area or a full service
center, coloc
center, co-locating all the different domestic violence and
sexual assault AG.
sexual assault agencies that do amazing work in the city of
Chicago already. So our idea is that we we would help
survivors navigate the very complex system that exists.
survivors navigate the very complex system that exists,
make sure they get Safety and Security immediately that
they can access law enforcement and trauma-informed way.
they can access law. Enforcement and trauma-informed way,
then they can get all the services they need to heal truly
So we're really looking at intergenerational Community
violence.
violence from The Domestic and Sexual perspective in 1
place.
in the city of Chicago, and we think Chicago,
In the city of Chicago, and we think Chicago deserves to
have this, we're 1 of the only large cities.
have this we're 1 of the only large cities in the entire
country that does not have this model. So I think it's time
for Chicago to get 1 too.
It's an exciting Vision, thank you for sharing it. And thank
you for letting us walk this path with you. Thank you.
Thank you, chair.
Thank you chair. Thank you. So all motion made by Alderman
laspada, recommending do pass of item. Number 6.
laspada, recommending do pass of item, number 6, all those
in favor. Signify by saying, I
in favor. Signify by saying I opposed and the opinion of
the chair, the eyes have it and the do pass recommendation
will report it out at the next city council meeting. Thank
you, Miss Solace, thank you.
you, Miss Solace. Thank you chair item. Number 7 from the
Department of planning and development and ordinance.
Authorizing the
authorizing the expansion and funding of the corridor
managing manager marketing program in the Bronzeville,
priority Corridor by adding 47
priority Corridor by adding, 47th Street from Cottage,
Grove to Prairie Avenue.
to Prairie Avenue, we're joined by Jim harbon. Deputy
commiss
Commissioner from the Department of planning and
development,
Good morning, Mr. Harbin chairwoman
And members of the committee.
For the record. My name is Jim Harbin. Deputy Commissioner
with the Department of planning and development.
On January 15th of 20.
On January 15th of 2025 the city council.
The city council, uh the city council of Chicago.
The city council uh the city council of Chicago passed an
ordinance, which approved a program.
ordinance, which approved a program to support selected
Community Based organizations.
Community Based organizations called Corridor managers to
Market Commercial sites to prospective businesses
developers and investors and to Market various economic
development program.
Development programs and incentives within 14 commercial
Cor.
corridors across the city.
Today.
Today, the city requests to revise the description.
today, the city requests to revise, the description of 1 of
the initial priority corridors within the
the initial priority. Corridors within the ordinance by
extending the boundary of the Bronzeville. Corid.
extending the boundary of the Bronzeville corridor.
uh, the funding request today is
Uh, the funding request today is for $100,000 from the 47th
and King.
and King Drive Tiff. Uh, the total project cost.
and King Drive Tiff. Uh, the total project cost is 1.4
million and the project timeline is for the year 2025.
Current boundary of the Brownsville Corridor consists of
caught.
Cottage Grove Avenue from 42nd Street to 48th Street. The
proposed revision seeks to extend those.
proposed revision seeks to extend those boundaries along
47th Street from Maryland.
47th Street from Maryland Avenue East to Prairie Avenue to
align with.
align with the city's streetscaping investment currently
along the way on the corridor.
This.
This program was designed to support community-based
organizations that.
organizations. That would act as essential Partners in the
city's ongoing.
city's ongoing mission to reverse Decades of systemic
disinvest.
disinvestment in the South and West sides of of the city.
The city has authorized the department of planning to
design.
designate local initiatives, support Corporation Or List
Chicago.
Chicago, to manage this year's marketing program for a for
a term. Not to exceed, not exceeding 1 year.
a term, not to exceed, not exceeding 1 year, but the total
compensation captured 1.4 million
Today's request.
Is.
Is to fund and extend the marketing program and bronze.
Is to fund and extend the marketing program and Bronzeville
to 47th Street from Maryland to Prairie for 1 year.
to 47th, Street from Maryland to Prairie for 1 year and
amount not to exceed $100,000.
amount not to exceed. $100,000, this funding will come from
that incremental tax generated by the 47th King Drive. Tiff
the affected tiffs have been confirmed by the department
and the impacted all the person.
and the impacted, all the persons I've been notified. Thank
you madam, chairwoman and members.
you, madam. Chairwoman and members of the committee. This
concludes my presentation. I'm happy.
concludes my presentation, I'm happy to take it in your
questions. Thank you. Uh, Mr. Harvard, um, as the 1 of the
alderman in the Bronzeville, uh, area, uh,
alderman in the Bronzeville uh area uh this was important
to extend the program.
to extend the program uh to support uh investment that.
to extend the program uh, to support uh investment that the
city and the private sector already doing
doing along. 47th Street. Um, we want to make sure that
doing along, 47th Street. Um, we want to make sure that we
can, um, fill up some of the VAC
can, um, fill up some of the vacant, uh, commercial
properties. And
properties and, uh, bring a
reliable.
reliable and useful mix of amenities to the
Reliable and useful mix of amenities to the 47th Street
Corridor. So I ask for your support.
Corridor. So I ask for your support on this. Any questions
related to this project?
uh, Alderman Reilly has a question so I just
Uh, Alderman Reilly has a question, so I just want to be
clear on what what the ask is today.
The ask is to extend the geographic boundary.
the ask is to extend the geographic boundary of the card or
manager program, which is now
manager program which is now focused on only on Cottage
Grove to expand it to include 47th.
Grove to expand it to include 47th Street, which is just
the historical. Um,
the historical, um, commercial heart of Bronzeville from
Cottage.
Cottage, Grove to Prairie Avenue, and there's a hundred
thousand dollar price tag associated with that.
Yes, from the uh, Braun Bronzeville.
Yes, from the uh Braun Bronzeville. 47th and King Drive
Tiff. And that
Tiff and that 100,000 dollars is going to be used for
marketing.
It's going to be used to help support.
It's going to be used to help support the core manager or
the organization's over there.
the organization's over there, doing the work. And we need
to pull from a tiff in those areas in order to support
that. No, I guess I'm just trying to figure out what we're
spending. $100,000 on specifically
Specifically on the organizations doing the work doing.
specifically on the organizations doing the work, doing the
marketing work, along the corridor, in the organization
doing the work, and the Bronzeville. Community the only
organization that we have for economic development.
organization that we have for economic development is uh,
the well not the only 1 but the 1 that's focused primarily
on Cottage Grove.
on Cottage Grove, 47th Street and 43rd Street is the quad.
on Cottage Grove, 47th Street and 43rd Street is the quad
communities Development Corporation headed by Rhonda
McFarland. Okay? And just so I'm clear the hundred thousand
dollars is
To pay.
For.
For to help sustain their budget, or is it to pay for
specific Market?
specific marketing activities marketing activities such as
as such as helping to support uh, City.
as such as helping to support, uh, City programming, to
help support, I guess what tactics are
help support. I guess, what tactics are we paying for is?
The more specific question? Yeah, the advertising is it bus
shelter?
bus shelter? What are we spending the money on? We're
we're, we're, we're paying.
we're, we're, we're paying for the organizations to help
attract Developers.
attract developers and investors to the quarter or
marketing.
marketing city funding programs for Capital Improvements. I
can be more specific about how the dollars are going to be
spent. So be helpful when, when people
spent. So be helpful, when when people come in looking for
marketing money, since that's something I used to do for a
living, I I'm
living. I I'm just curious to see how it's being spent
Community Development Corporation.
Community Development Corporation, has a number of programs
that they do.
that they do along the corridor every year.
that they do along the corridor every year, some of them
relate to holding. Um,
relate to holding um, um, seminars and forums.
relate to holding um um seminars and forums. Um we're
working with them now on a seminar for
example, with the
Example, with the Wells Fargo that's coming into the
community to help.
community to help business owners and people interested.
community, to help, business owners, and people interested
in Bronzeville, being able to invest in the, in the
corridor. Um, they also hold events.
corridor. Um, they also hold events like, uh, Bronzeville
summer nights. Uh, the art Trolley Tours, um, to
summer nights, uh, the art Trolley Tours, um, to give
people an understanding of what the opportunities are
along. 47th Street, thank you.
along. 47th Street. Thank you, ottoman. You answered the
question. I was
was I was
Was I was asking, thank you.
Motion made by Alderman MO.
Motion made by Alderman Moore for due pass all those in
favor. Signify by saying, I I opposed and the opinion of
the chair, the eyes have it and the due pass
recommendation,
recommendation will be reported out at the next city
council meeting. Thank you Mr. Hartman.
Item, number 8 is a substitute.
Item. Number 8 is a substitute ordinance, authorizing. The
execution of the 65th Amendment to the service.
execution of the 65th Amendment to the service agreement
with some core 504.
with some core 504 Inc to extend the small business
Improvement.
improvements spiff program to the Foster.
improvements spiff program to the Foster Eden's and the
Little Village East Redevelopment.
Little Village East Redevelopment project areas, provide
additional funding.
additional funding to 16 Redevelopment project areas.
additional funding to 16. Redevelopment project areas and
amend the program rules um to a which affects the first
third
67th 10th 1516
67th 10th, 1516 19th 22nd.
67th 10th. 1516 19th 22nd 24th 25th 26th.
67th 10th. 1516 19th 22nd 24th, 25th 26th 27th.
67th 10th. 1516 19th 22nd 24th 25th 26th 27th 39th and
67th 10th. 1516 19th 22nd 24th, 25th 26th 27th.
There is a substitute.
there is a substitute ordinance which has been prepared and
sent electronically to everyone. Is there a motion to
accept the substitute?
accept the substitute so moved by Alderman Silverstein all
those in favor signify by saying, I
those in favor. Signify by saying I oppose and the opinion
of the chair, the eyes have it, and the substitute
ordinances before us and we'll be explained by
Gabelle. Yes.
Miranda.
Miranda from the Department of Planning and Development.
Good afternoon. Good afternoon, chairwoman dowel and
members of the and North Korea. I didn't see you over
there. Nora Curry,
Curry program director from dpd, thank you.
Good afternoon, everyone. Thank you for having us. My name
is Gaba Del Miranda, coordinator.
is Gaba Del Miranda, coordinator of economic development in
the Small Business Development Bureau.
the Small Business Development Bureau in the department of
planning and development.
Planning and Development. We are here today. Speaking, your
approval for the 65th amending ordinance. To the
administrative service is agreement with Summer core. This
ordinance serves 2 purposes to update certain spiff
rules and to replenish funds for the small business
Improvement program in 18.
Improvement program in 18 tax increment. Financing
districts
The rule changes will make the spiff program.
the rule changes will make the spiff program in the L,
South Central Tiff where consistent with the general spiff
program and open the program tomorrow applicants as well as
update.
update and clarify requirements.
The new funds will address waiting lists and provide enough.
available funds to address applications immediately.
available funds to address applications immediately to
avoid waiting lists in the future.
As.
as you are aware the spiff program, utilizes
As you are aware the spiff program. Utilizes Tiff revenues
to offer reimbursement. Grants to
to offer reimbursement grants to Commercial and Industrial
businesses, as well as property.
businesses as well as property owners.
In specific tiffs to.
In specific, tiffs to facilitate permanent.
Improvements to their.
Improvements to their properties. The program is not
selected as long as applicants and projects are eligible
and they meet the program requirements. They will receive
spiff funding.
The Citywide role Amendment.
The Citywide role amendments and are primarily
administrative upd.
administrative updates and clarifications the ordinance
removes.
removes all language and Maps referring to
removes all language and Maps, referring to invest,
Southwest and spiff Target. Corridors,
Southwest and spiff. Target corridors as these programs
have ended previously.
have ended previously, applicants located in 1 of these
corridors.
corridors received priority in case of lottery in the case,
of the Lysol Central,
of the Lysol Central Tiff, only properties located within
the spiff Target Corridor. Where eligible to apply?
The ordinance also revises.
the ordinance, also, revises requirements for landlord
applicants to relate only to the portion of the property
spiff funds were used for
it also adds reference to
The ground floor design guidelines, which were adopted in.
November 2024 by planning.
November 2024 by Planning Commission in the design,
requirements section,
requirements section. And finally it updates, the service
Prov.
provider agreement with Summer core concerning
ownership and insurance.
some language previously. Only properties.
spiff. Target. Corridor along the Lao Central,
Corridor.
Corridor have been eligible to apply for.
Corridor have been eligible to apply for spiff in this Tif
This ordinance.
this ordinance removes all the spiff Target corridors and
expands the spiff eligible area in the
expands the spiff eligible area. In the South Central, Tiff
to the entire Tiff area.
This change is consistent with the general.
This change is consistent with the general spiff program
roles throughout the city.
Current.
currently taverns and bars are not eligible for
Currently taverns and bars are not eligible for spiff
funding in the South Central Tiff. The ordinance makes
existing taverns and bars eligible.
existing taverns and bars eligible for Swift under certain
conditions. The amendment is consistent with the rules for
Tavern.
taverns and bars established for the city-wide spiff
program.
program in 2021.
the conditions are that the applicant must hold a valid
table, or
tabber license, active for a minimum of 2 years. The
business must also be under the same ownership for a
minimum of 2 years. The applicant must also pass vetting by
bacp for licensed disciplined cases public.
bacp for licensed disciplined, cases, public nuisance,
Community, meetings, the remaining Lau, Central spiff,
amendments, clarify intent.
amendments, clarify intent, by removing reference to the
great Halls.
great Halls which are Grand banking rooms in some buildings
within this District.
within this District as eligible and replaces it with
with ground floor expansion at DP.
it, with ground floor expansion at dpd's discretion.
It also clarifies that.
It also clarifies that the 50,000 bonus offered for
business.
businesses, expanding from low to moderate income areas.
businesses, expanding from low to moderate income. Areas is
for those that are opening additional locations.
for those, that are opening additional locations, not
relocating here.
in addition to rule changes the ordinance before you would
authorize a total of 17.2 million,
authorize a total of 17.2 million to 18 tips, which would
replenish
would replenish this Biv program in 16 T districts.
would replenish this Biv program in 16 T districts and
start the program in 2 T districts that
start the program in 2 T districts. That have not offered
Biff funding before.
Biff funding before dpd has reached out to all 24 Elder
people.
people affected by the funding request the 2
people affected by the funding request. The 2 News Biff
areas are Foster Eden's Tiff and Little Village East Tiff
The Foster Eden's Tiff is entirely.
The Foster Eden's Tiff is entirely within the 39th Ward and
has 17 years.
has 17 years before it expires. There are around 90.
has 17 years before it expires, there are around 90 list,
licensed businesses and the funding.
licensed businesses and the funding request is in response
to community demand. We recommend establishing this Biff
with an initial allocation of 700,000.
with an initial allocation of 700,000 750,000
We are also requesting.
We are also requesting dollars to establish the little
village.
Village, East spiff. This request was initiated.
Village, East spiff. This request was initiated by
Alderman. Sigcho Lopez 72.
Alderman. Sigcho Lopez 72% of the Tif is within the 25th.
Ward.
Ward 21% is within the 24th Ward.
Ward 21% is within the 24th Ward 8, and 8% is in the 22.
Ward. This Tif has 10 years before the expiration and
covers approximately
covers, approximately 90, licensed businesses, reflecting a
strong community.
strong Community need for investment.
The remaining.
The remaining the remaining funding funding request of.
The remaining the remaining funding funding request of 16
million dollars and 16th will address.
million dollars and 16th will address waiting lists provide
enough funding to avoid future waiting lists and ensure
equitable distribution in tiffs across the city
equitable distribution, in tiffs across the city in all the
ordinance would authorize a total of 17.2 million in Tif
funds to fun.
Tif funds to fund new spiff, funding and 18.
Tif funds, to fund new spiff, funding and 18, Tif
districts. If city council passes this
If city council passes, this ordinance dpd anticipates that
we can begin to address waiting lists and rolling out.
we can begin to address waiting lists and rolling out new
funds. As early as this fall. We look forward to
funds. As early as this fall, we look forward to continuing
to work with you to support our businesses.
to work with you to support our businesses and our
neighborhoods throughout the city. We respectfully request,
your approval of this ordinance. Thank you.
And thank you.
And thank you, gabelle. I just want to be clear. I see you
have list.
have listed delegate agencies there but businesses do not.
have to go through those delegate agencies to assess this
program. Is that correct? Correct? Okay.
um,
Um, almond Scott.
Thank you chair. Um, and thank you for the presentation. I
just want to be clear because uh the 24th award was
mentioned and I want to and I haven't been briefed on this.
So I want to know what does that mean?
So I want to know what does that mean for the 24th Ward
um, it means that these funds will be available within the
Tif and businesses within the stiff will be eligible to
apply.
apply for these funds to make improvements to their
properties.
So, it's addition to what's already.
So, it's addition to what's already there. Okay.
Alderman.
Alderman, Rodriguez, I'm sorry all them in CEO Lopez.
Followed by Alderman Rodriguez.
Thank you.
Um, thank you. Thank you, madam chair. Just just, I think
all the women Scott already mentioned that. I think there's
no being any allocation other than having additional
resources. Um, we are as, you know, in a very
resources. Um, we are as you know, in a very desperate
situation to help a small businesses, this last weekend.
Uh, I tell you that we we're talked to some of the
businesses that were hardly any sales because of the fear
and everything that is going on in our community. Um, I can
with the 3 collections,
with the 3 collections that are in that, I mean, Alderman,
Rodriguez, Alderman Scott.
Rodriguez, Alderman, Scott women's Scott. And, and in the
25th Ward, The Hope is that we work together with the
Department. Again, this is just the beginning of the
conversation. As you mentioned, there's not even delegate
agencies that, you know, we welcome any feedback from any
of the other colleagues. The dire need to support a small
businesses. I think in every Community is there special in
communities like ours, so we
communities like ours. So we look forward to working with
both all the persons and and and bringing support as we
discussed together in.
discussed together in a very desperate situation. So I just
want to ask our colleagues.
want to ask our colleagues for um um for a favorable
consideration.
Of this item. Thank you. Thank you, all.
For coming Rodriguez.
Yeah, I just think it's the best practice.
Yeah, I just think it's a best practice to reach out
beforehand. So I expect more.
beforehand. So I expect more uh with that said, this is
great. This is a good investment in neighborhood.
businesses. Um, I think my colleague and I would agree, we
just, you know, when our Wards are brought up like this, we
should be involved and engaged. Um, and I'm glad this money
is coming to that part of the neighborhood that desperately
needs it. Um, we have a lot of change happening over in the
East. The, the West, most part of the
That TIF district. So, um, I'm sure we'll be looking to to
leverage this as well. Um, but I'm not going to hold this
up. We can move forward. All right, Alderman, Scott. You
might want.
might want to take a look at this. This is
your letter.
Sport.
Okay. Uh, Alderman Silverstein followed by Alderman Reilly.
Uh, thank you. I just wanted to know how these maybe you
said.
said it. Make how these spiffs
Or chosen, I know.
or chosen. I know that there's
more.
Um,
for the 2 new
For the 2, new ones. We did get a request from Alderman
Sig.
Sigel Lopez. The other 1 was demand in the community for
the ones that we're refunding. Um, we looked at all of the
the ones that we're refunding. Um we looked at all of the
the existing spiffs
and,
and reviewed which ones were out of funding, which ones we
had.
had waiting lists, on which 1, we had a little bit of
funding but anticipated upcoming need. Um, and we looked at
the upcoming expiration dates,
um, we wanted to make sure for those that are
Um, we wanted to make sure for those that are expiring soon.
We didn't want anybody to be held up.
We didn't want anybody to be held up by by being on a
waiting list and slowing them down. We just want to make
sure we had enough money to cover everybody.
sure we had enough money to cover, everybody who was going
to be applying and then we we looked at how much money we
actually had in the Tif. So there were a few we were turned
down for or we were limited in how much money we could ask
for because of what was available in the taxing increment.
Financing District, excuse me. Um,
we are always happy to talk about additional funding.
we are always happy to talk about additional funding and
other tips if that's a concern.
Alderman, Lee keeps moving. So she keeps getting in my
view. That's okay.
um, okay, maybe
Um, okay, maybe we could talk after. Yeah, absolutely.
Okay, thank you. Thank you, Alderman, Alderman. Reilly
Thank you, madam chair. Have the ottoman for all of these
wars.
wars listed, um, provided letter of support, or are you
missing any
Uh, we are missing 2.
uh, we are missing 2 letters of support from the um,
15th Ward. Sorry, which Ward 15th and the
15th Ward, sorry, which Ward 15th and the 33rd Ward 18th
and 33rd.
And I'm curious. Um, you mentioned the Lal Central Tiff?
Yet the 42nd Ward isn't listed on your list.
Uh, if that's true, that's an error. Yes, it is.
Uh if that's true, that's an error. Yes it is. Yeah. Um,
you have a letter of support for me in there.
have a letter of support for me in there. Yes. If it's an
error and you're not even listed, I don't have
error and you're not even listed. I don't have a letter of
support. Oh, we did get a letter.
of support. Oh, we did get a letter of support for the 42nd
Ward. Um, from Riley. Yes, from Joanna. We spoke with
Johanna and she sent us a letter. Okay, well, that was nice
of her. Um, I I I should have, I should have gotten a
briefing myself.
briefing myself, um, and I guess,
briefing myself, um, and I guess that's, that's where I'm
going with this. I would I would echo my colleague's
comments. I know that you depend on our staff, but I think
it's important to to make sure that you have a, an actual
conversation with us, would be a briefing. Um, I'm not
gonna hold this up either. Um, but just, you know, I
understand and 1 of the spiff requests, we have, um, a
$500,000 requests initiated by ottoman s Cho Lopez.
$500,000 requests initiated by ottoman, s Cho Lopez it
impacts 2 other colleagues, it begs.
impacts 2 other colleagues. It begs a question that that's
a pretty specific amount of money is
a pretty specific amount of money. Is there, is there
something already anticipated for that money?
no, we released the spiff money and then
No, we released the spiff money and then and then have the
roll out the amount of money. We actually, I think asked
for more money there, but that was all.
more money there, but that was all, we could get all that
was available in that taxi career and financing
that was available in that taxi program, financing district
for spiff, so that's how much we're releasing.
for spiff. So, that's how much we're releasing or we're
asking for, excuse me. Uh, all of them and Marley.
asking for, excuse me, uh, all of them and Riley, that's
accurate. I mean, they have like buckets 500,000 and
there's
750 all the way over to a million. So,
750 all the way over to a million. So I guess it depends on,
um,
What's in the waiting list? How much is in the Tif?
What's in the waiting list? How much is in the Tif okay?
Very good. Thank you. Chairman
Thank you. Um,
We did not receive.
We did not receive uh, the letter of support from the 42nd.
Ward just um,
If you could, just give it to us. So we
If you could just give it to us so we can that before our
records. Um,
Seeing no other questions can.
Seeing no other questions. Can I get a?
Motion to.
Motion to so moved by Alderman Hall.
Uh, recommending due pass all those in favor?
uh, recommending due pass all those in favor, signify by
saying I oppose and the opinion of the chair, the eyes have
it, and the recommendation, the do,
it and the recommendation, the do pass, recommendation will
report it out at the next meeting. Thank you very much.
Thank you, everyone item. Number 9
Thank you. Everyone item. Number 9 from the Department of
Housing and ordinance author.
Housing and ordinance, authorizing the restructuring of a
loan agreement with Argyle neighborhood Development
Corporation to forgive the principal amount of the city
loan and the sale and transfer of San Miguel Apartments.
loan and the sale and transfer of San Miguel Apartments
located at 9007, West argal.
located at 9007, West argal Street to 9007
West argal.
LLC.
LLC in the 48th Ward were joined by Kat.
LLC in the 48th Ward were joined by Katrina Collins.
Financial planning analyst.
Financial planning analyst with the Department of Housing.
Good afternoon. Good afternoon.
Good afternoon, good afternoon, chairwoman dowel and
members of the kid committee.
members of the kid committee for the record. My name is
Katrina Collins. I'm a financial planning analyst with the
Department of Housing asset management team. Um, I'm joined
today by our assistant commissioner Asia Bonner, as well as
the development team.
the development team, Rafael Leon and Russell Ridin from
CMA HD.
CMA, HDC, which will be the proposed buyer today. We're
discuss.
discussing San Miguel Apartments the properties located at
9.
9007 West Argyle in the Uptown community in Fort.
9007 West Argyle in the Uptown community. In 48th Ward
under alderwoman Lenny manah
alderwoman Lenny, mana hoppenworth and we do have a letter
of support.
As a result of the Heartland, housing, collapse.
restructuring efforts, specific to San Miguel Apartments
will include the sale and transfer of the property from
Argyle neighborhood de
Argyle neighborhood Development Corporation to Chicago,
metropolitan
Metropolitan Housing, Development Corp, which will be
referred to as CMH,
referred to as chdc we are proposing debt. Forgiveness in
exchange for preserving, 75% of the units, affordable at
80%, Ami and below. And just to note that there is no new
financing as part of this request.
Uh, please note that saint.
uh, please note that San Miguel and Leland Apartments which
will be presented next
will be presented. Next are part of the H Heartland
portfolio that consists of 12 properties.
portfolio that consists of 12 properties, San Miguel and
the Leyland are 2 of 3 properties.
the Leyland are 2 of 3 properties that are still in the
disposition Pro process.
disposition Pro process in March of 2023 Heartland Alliance
which was the
Alliance, which was the parent Agency. For Heartland
housing, informed the department of
housing informed, the Department of Housing that their
affordable housing portfolio.
affordable housing portfolio was in distress and at risk of
collapse the city along with other
collapse, the city along with other public funders funder,
interests, filed a
interests filed, a receivership complaint in an emergency
motion in court.
adrenal receiver was appointed to control the
Adrenal receiver was appointed to control the Affairs of all
properties. The portfolio under
properties. The portfolio, underwent an extensive review
process to begin restructuring activities.
process to begin restructuring activities for each
building. The portfolio includes those propert.
building. The portfolio includes those properties listed on
the screen.
A little background on San Miguel. The property is a 4.
story, brick elevator, building that houses. A total of 71
residents. The building was originally constructed in 1922.
San Miguel, underwent rehab,
San Miguel, underwent re Rehabilitation that was completed
in 1994 the reh.
in 1994. The rehab received funding from the city of
Chicago and the amount of approximately 2.1 million of Home
funds.
funds in 2009. The building underwent to refinancing of the
first mortgage, they also requested the maturity of the
city of Chicago.
city of Chicago home loan, be extended to be co-terminus
with Ida.
with Ida's loan. The original expiration date of the loan
was August.
was August of 2009. It was extended until June of 2 0
was August of 2009. It was extended until June of 2033. The
amendment also changed the monthly note.
amendment also changed the monthly note from 500 in the
1993 agreement to
1993 agreement, to a monthly note of just under 21,100
effective as of 2010.
The current owner of the property is argal neighborhood
development.
development Corp. It is proposed to sell to CMH.
Development Corp. It is proposed to sell to chdc.
Argyle neighborhood. Development. Corp was
Argyle neighborhood development. Corp was a tactic tax
exempt entity created by Heartland housing.
exempt entity created by Heartland housing, Inc. To hold
ownership in the project.
Chtc was originally created in 1982 to.
Chtc was originally created in 1982 to serve as an
instrumentality of CHA to help Finance Construction.
instrumentality of CHA to help Finance construction and
Rehab of Apartments of Chicago's low-income residents.
Rehab of Apartments of Chicago's low-income residents
around 1996. The organization was restructured as a
nonprofit Housing Development to serve Chicago.
nonprofit Housing Development to serve Chicago's
metropolitan area. They have invested more than 70 million
dollars to acquire and redevelop 740 units since the
restructuring.
Cast management.
Cast Management Service will be taking over as the property
manager. They serve as a third-party property management
company since 1985.
company since 1985, they currently serve over 9,000 units.
within over 400 properties and the Chicago area
and then, as a note chdc had subm
and then as a note, chdc had submitted a proposal to
require the building in the early stages of receivership.
Another applicant was selected. However, they withdrew
their application in November of 2024, the other applicant
would have been coming to the city in this upcoming qap
round to request up to 16 million dollars. In addition to
the Assumption of the existing,
the Assumption of the existing 1.7 million
CMH.
Cmdc was approached by the receiver to confirm that they're
still interested in.
still interested in purchasing the building. They did
express interest with the understanding.
express interest with the understanding the city of Chicago
would be unable to provide additional resources.
The original Ami.
The original Ami structure of this building included all 71
units restricted.
units restricted at 50%. Ami um, the
units, restricted at 50% Ami. Um, the rent rolls do
currently show 25% of the units.
currently show. 25% of the units are vacant. So the
transition of these 18 market rate units will not affect
the current residents, the building currently has 14
project-based Section 8 contract with cha cha has confirmed
the Assumption of the existing vouchers.
the Assumption of the existing vouchers will be approved.
the above fronts are
The above fronts are reflective at stabilization which will
occur by year 3.
occur by year 3, they do have a rent transition plan, in
which the rents will remain closer to the 50%, Ami level
for the first,
the first 2 years.
uh, as seeing are the HUD rent limits, the maximum,
affordable rentals for each Ami that they're going to be,
um,
Adjusting to and then this is reflect.
Adjusting to. And then this is reflective of the tenants
paying like for electric.
paying like for electric cooking, and other Electric.
as part of the request, they are seeking loan forgiveness
from the city of Chicago and Ida in order for C.
from the city of Chicago and Ida in order for chtc to
maximize the potential donation value of
maximize the potential donation, value of 3.3 million in
the request for donation tax. Credits from Ida, the
existing debt is requested to be forgiving. The debt
forgiveness allows approximately 1.3 million of equity for
cash improvements through
cash, improvements through the donation tax credits, by
forgiving the loan this
forgiving the loan, the city's able to help transfer the
building to an owner that is committed to improving the
living conditions of the residents at Sam.
living conditions of the residents at Samuell and preserve.
75% of the units to remain.
75% of the units, to remain affordable below. 80% for the
next 15.
next 15 years and the, the proposed.
next 15 years and the the proposed owner, operator is a
Noah operator. So they
operator. So they deal specifically with natural occurring,
afford
occurring, affordable housing. So the long term is likely
longer than that 15-year. Mark chdc.
longer than that 15-year, Mark chdc. Um, did share that
they intend to use its own line of credit for the
intend to use its own line of credit for the construction
period. After the building stabilized, they plan to secure
a first mortgage to release the application of the line of
credit which will be
Use drain Construction.
Uh, the proposed scope of work is as shown its anticipated
for approximately 3 million dollars of repairs with 1
million dollars being complet.
million dollars being completed within the first year of
ownership. CMH,
ownership. Chdc intends to update the vacant units first,
all additional rehab.
all additional rehab work is intended to be complete
completed with tenants,
completed with tenants in place.
The building's located.
The building's located between Sheridan Drive and Marine
Drive a few blocks.
Drive a few blocks south of Foster.
And so,
and so, I do want to just remind again that this building
has been in receivership for the last 2 years. So some of
the out,
the outcomes public benefits of this sale were preserving.
the outcomes, public benefits of this sale were preserving
53 units of affordable housing at San Miguel. They've
already, um, served the Chicago.
already, um, served the Chicago land area for 32 years
afford.
affordability in, excuse me, affordability restrictions
will ensure a minimum of 15, more years, affordability at
this.
this location with no additional cost to the city.
this location with no additional cost to the city, the
transfer of the building to a new owner insurers
Improvement of the living conditions for the current
residents. We're ensuring that the
residents. We're ensuring that. The first mortgage will be
paid off by the new owner.
paid off by the new owner which eliminates any chance of
foreclosure and also eliminates.
foreclosure. And also eliminates the risk to transfer to a
fully market rate building
Our Tim.
our timeline, if approved we will pass out this month in
June with a timeline closing of August.
And our requested actions.
And our requested actions again today. Um, with a reminder
that there's no new financing for this project that uh,
excuse me, the approval of sale and transfer of the
physical asset of 1 building known as San Miguel Apartments
from Argyle,
from Argyle Development Corporation to cmht the approval of
debt forgiveness for approximately 1.7,
approval of debt forgiveness for approximately 1.75 million
and the approval of the proposed.
approval of the proposed change of units, um, income
restrictions to include.
restrictions to include 18 units at 50%. Ami 35 units at 80
80%, Ami and 18, market rate units,
And that concludes my presentation, if there's any
questions.
questions, thank you Katrina before we go to the
questions, thank you, Katrina, before we go to the alderman
wanted to, uh, call on Alderman Reilly
Um, thank you madam chair. You you
Um, thank you, madam chair. You you mentioned at the
beginning of the presentation. Um,
beginning of the presentation, um, that various properties
in the Heartland portfolio.
in the Heartland portfolio, were considered to be
distressed. Um, is there a common theme there is each 1.
stress for a different reason. Well, it's just the parent
AG.
agency owner. There was a crumbling at that level. Um but
as of right now, not
9 of the 12 units have been relocated to new owners.
and,
And specifically, the San Miguel. Um, how many of the
market rate units are currently vacant. Um,
market rate units are currently vacant, um, 18 out of 18
out of 71 units, total and how many, but how many units in
the building?
the building are market rate today? There were there,
currently, they're all 50%.
currently, they're all 50%, we're going to be adjusting it,
to have 18 Market.
to have 18, market rate, and currently, all those are
vacant. So they're not affecting any of the current
residents that live there.
Okay.
Um,
all right. I'll I'll hold off. Thank, thank you madam
chair. And Katrina. The building is not 100% occupied.
Correct. Correct. There's 25% vacancy currently which is
the 18s
Sorry chair. Um, what I was going to go with that? Is there
a specific reason why?
a specific reason why the market rate units are?
Empty.
Well, they're not market rate yet, they're going to
transition to Market.
transition to market rate, so they're going to start by
updating those units first and then,
updating those units first and then filling them as market
rate units to start.
rate units to start producing that higher, cash flow to
reinvest back into the building.
reinvest back into the building and they feel pretty
confident. They can fill those units at market rate, given
the the rest of the balance of the building is is not yeah.
um, I do have the developers here, if you'd like for them to
speak on behalf of that. But they're confident with the
structure that they have set.
structure that they have set up for this. No, that's fine.
I just wanted to ask that.
I just wanted to ask that for the record. Thank you, madam
chair. Thank you.
chair. Thank you, Alderman. Manaha have been worth it.
Thank you, chair.
Thank you do for this presentation. Um thank you Asia, and
thank you.
and thank you. Raphael for working together to
and thank you. Raphael, for working together to negotiate
where we are today. This
this um, ordinance will allow
This um, ordinance will allow this building to be
developed. Um
um to to a great potential. Uh right now it's underutilized
and um it has a lot of deferred maintenance. It's
It's um it's steps away from Argyle.
steps away from Argyll and the red line. Um, the
the the it steps away from the lakefront. Um, the most
important thing about this project is that its development,
it's a development without displacement.
and we have,
And we have the support of Uptown United. Um,
and we have the support of Uptown United, um, who also
believes that this kind of rest,
believes that this kind of restructuring is is innovative
and it, it will help keep the neighbor.
and it it will help keep the neighborhood affordable. Um,
not only that it will
not only that, it will also help, um, allow for more
naturally occurring, affordable housing, which we
absolutely.
absolutely need in the neighborhood.
um, I I asked
Um, I I asked several questions of of, uh, Rafael.
Um, I I asked several questions of of uh, Rafael and cmhc
as we were going along the con-vers.
as we were going along in the conversations, um, to make
sure that there is a relocation.
sure that there is a relocation plan for the tenants who
are there. Um, and and they, I've been assured that they're
working.
working with the receiver, um, towards that end. Um, I
understand that they're working towards a plan for a for
affirmative
Fair housing marketing. Um, we are also, um, very happy to
hear that. Um, the developer is open to working with
service agencies such as Central Romero and
service agencies such as Central Romero, and, um, Catholic
Charities and, um, and, and uh, I just wanted to thank
Charities and um, and and uh, I just wanted to thank again.
Um, Rafael C mhcc.
again, um, Rafael cmhc and do for, um, coming together.
again, um, Rafael cmhc and do for, um, coming together to
find innovative solutions to keep
innovative solutions to keep our neighborhood affordable in
uptown area. And I
affordable in uptown area. And I asked for this committee's
favorable consideration,
favorable consideration. Thank you chair. Thank you
Alderman. Hop.
was
Any other?
any other questions from committee? Can I get a motion to
move?
move to pass? So moved by Alderman Rodriguez, recommending
do pass. All those in favor. Signify by saying,
do pass, all those in favor. Signify by saying I I opposed
and the opinion of the chair of the eyes, have it and the
due pass recommendation will.
due pass recommendation will be reported out at the next
meeting. Thank you very much Katrina.
meeting. Thank you very much, Katrina item number 10 from
the Department of Housing.
the Department of Housing, oops,
Okay.
Okay, um, the court reporter has asked for 5 minutes.
Okay. Um the court reporter has asked for 5 minutes of uh
break. So
We're going to give her 5 minutes.
5 minutes are up.
We're going to continue.
Excuse.
Excuse me.
can the
Can the council come to order, please?
We're going to continue.
We're going to continue with item number 10, from the
Department of Housing.
Department of Housing, which is an ordinance authorizing,
the rest.
the restructuring of a loan agreement with Leland Limited.
the restructuring of a loan agreement with Leland limited
partnership to forgive the principal amount.
partnership to forgive the principal amount of the city
loan and the release of the regulatory.
loan and the release of the regulatory agreement for Leland
Apartments located in.
Apartments located in 1201 through 1213 West
Apartments located in 1201, through 1213 West Leland Avenue
in the 46 Ward. We're joined today by Michelle Pinar.
financial planning analyst with the Department of Housing.
Good afternoon. Thank you chair.
Good afternoon. Thank you, chair. And members of the
committee for the record, my name is
committee for the record. My name is Michelle Pinar from
the Department of Housing. Also joining
the Department of Housing also. Joining me today is Asia,
Bonner our assistant commissioner and do and Mark Angelini,
um, the president of Mercy Housing Lakefront,
Today, I'm presenting a transaction.
Today, I'm presenting a transaction for the Leland
Apartments, located at 12:07.
Apartments located at 1207 West, Leland Avenue, Angela Clay
is the alderwoman.
Clay is the alderwoman and has provided a letter of
support.
To you. Boo my presentation.
Oh,
so sorry, he said Buzz, um,
So sorry, he said Buzz um that wasn't for you.
Um, for this project.
Um, for this project, we are requesting forgiveness of the
city of Chicago.
city of Chicago, cdbg loan and the amount of 1.6.
city of Chicago, cdbg loan, and the amount of 1.6 million
dollars and the release of the city of Chicago regulatory.
agreements. Both actions are necessary for the transfer.
agreements. Both actions are necessary for the transfer of
the property to a new owner and will be detailed in the
following slides. Please note that there's no new
following slides, please note that there's no new financing
included in this um transaction request.
Yep.
Um, in 2023, the Heartland housing portfolio was placed.
Um, in 2023, the Heartland housing portfolio was placed in
receivership by the city of Chicago, the entire portfolio.
receivership by the city of Chicago. The entire portfolio
was reviewed internally along with other public funders
Some background about the Leyland, the Leyland Prov.
some background about the Leyland, the Leyland provides
housing to vulnerable populations in 2004, the Leyland was
recapitalized by Heartland housing,
recapitalized by Heartland housing and received funding
from the Chicago low-income housing trust fund.
from the Chicago low-income housing. Trust fund Tif funds
docdb and uh donation donation tax credits
Herland housing.
Herland housing owned and operated the building for the next
19 years.
19 years until the organization's 2023 demise
Currently, 50 of the 137 units are under.
currently 50 of the 137 units are under Master Lease with
Trilogy which provides supportive.
Trilogy, which provides Supportive Services to formerly,
homeless residents under the
homeless residents, under the pathways program.
The first lean holder. Mercy Community. Capital filed,
foreclosure on the building.
foreclosure on the building um in January 2024 and was
halted on January January in 2025.
This is the same.
This is the same list that Katrina presented.
Um, the current owner is Mercy Community Capital, which is
also the first lane holder.
also the first lane, holder Mercy, Community Capital
foreclosed on the property after Heartland Alliance
defaulted on their loan.
A property is.
A property is currently managed by 5T management company
and under receivership with CI.
Mercy.
Mercy Housing Lakefront, submitted a proposal to acquire
the building. M Dill property acquisition. LLC is the
single purpose entity created by Mercy Community.
single purpose entity created by Mercy Community Capital to
hold ownership interest in the land.
hold ownership interest in the land for this part of the
transaction.
once this transaction is
Once this transaction is complete Mercy, Housing will
retain 5T as property.
retain 5T as property manager.
there are currently 137 units of which
There are currently 137 units of which 123 are Studios and
there's 14 1-bedroom units.
there's 14 1-bedroom units, all rented at the 30% and 50%.
Amis.
There are 50% or 50 psh.
There are 50% or 50 psh units on the top 2, floors funded
by the state and run. Run by Trilogy. Can you say what? Psh
is? I know permanent Supportive Housing.
Um additionally, there are vast units.
Um additionally there are vast units with an on-site VA
office. So veterans safer.
office so veteran safaris CA has had contract on 14.
office so veteran safaris CA has had contract on 14 units
with additional units approved in March of this year.
Of the 137 units, 27.
Of the 137 units. 27 are accessible and 110 are adaptable
and the
And the building is currently running at a 72% occupancy.
rate.
This is, um,
The current.
The current Amis for Chicago.
Existing sources. So Leland Apartments is currently
encumbered by multiple layers of financing and Regulatory
restrictions including the first mortgage with Mercy
Community Capital that is under for
Community Capital, that is under foreclosure action as I'll
explain in the next slide.
I'll explain in the next slide to avert foreclosure, this
mortgage will be paid off.
mortgage will be paid off with proceeds from the new
donation tax credits to be ISS.
donation tax credits, to be issued by Ida.
The remaining Financial.
The remaining Financial encumbrances are under consideration
for forgiveness. This includes the second mortgage from do
which was C cdbg.
mortgage from do which was C cdbg funds.
the third mortgage with Ida in, which
The third mortgage with Ida in which forgiveness is ALS has
been approved. The fourth Mort
been approved. The fourth mortgage with Chicago low income
housing, trust fund, which is also in the process of being
forgiven.
and,
and the sponsor and seller financing, which will be
extinguished by Heartland both Doh and Ida have regulatory
agreements tied to this property. That will be released
Currently, the building is operating with a deficit of
roughly.
roughly 50,000 per month that the proceeds from the dtc's
will cover.
with Heartland housing on
With Heartland housing on able to fulfill its debt
obligations Mercy Community.
obligations Mercy Community Capital, the first mortgage
lender initiated for closure proceedings.
lender initiated for closure, proceedings against the
property in 2024.
The recorded dated agreement between Mercy Community
Capital, the city of Chicago Ida, and the show Chicago
loan.
income housing, trust fund a structured deed. In lieu of
foreclosure process has been put into place to FAQ
foreclosure process has been put into place to facilitate
the transfer of ownership from Mercy Community Capital
the transfer of ownership from Mercy, Community Capital to
Mercy Housing Lakefront.
We're here today.
We're here today to get the approval to complete Step. 1
extinguishing. The
extinguishing the debt and affordability restrictions,
which is necessary.
is necessary given the significant Capital needs of the
building and then
the building and then necessity to maximize the properties
full market value.
full market value in order to generate the maximum
donation. Tax credit proceeds
Once the encumbrances have been removed.
once the encumbrances have been removed the deed, and loot
transfer can occur from Heartland to Mercy capital,
transfer can occur from Heartland to Mercy, Capital to the
final owner Mercy Housing Lakefront.
Ida will issue the donation tax credits, which will then
enable the payoff of the senior debt to avert. The
foreclosure
Foreclosure recovery of receivership costs and cover
ongoing operating shortfalls
from there, the for
From there, the for foreclosure case will be dismissed.
Do.
Do clifft and Ida are all forgiving loans mixing.
extinguishing their affordability restrictions to allow for
a clean title.
a clean title that maximizes, the appraised value of the
property.
property used to derive the donation tax credits and
generate the equity needed to pay off the senior loan
receiver.
receivership fees and cover other operating expenses.
To the um, till 2026.
This is the neighborhood map Leland's in the red.
This is the neighborhood map Leland's in the red up in the
Uptown neighborhood.
Anticipated long-term financing the transaction.
Anticipated long-term financing the transaction presented
today. Enables financing for the immediate needs of the
property dtc's are needed to pay off the loan with Mercy
Community Capital, avert the foreclosure and pay off their
crude receivership fees, long term, the
crude receivership fees. Long term, the new owners will be
seeking 1.5 million in Ida,
seeking 1.5 million and Ida 9% litec apply it, then they
apply it in March.
apply it in March, 2025 1.5 million in City 9.
apply it in March, 2025 1.5 million in City 9%, litec or
equivalent cash, which is subject to the competitive
funding rounds. Slated for June 2025,
and 2.5 million in new soft phones from
And 2.5 million in new soft phones from Ida.
Long-term financing will cover the renovation and put the
building unstable footing for long-term.
building unstable footing for long-term viability.
So, so public benefits, um, the public benefit.
So, so public benefits. Um, the public benefits, we're
going to transfer the publicly funded building to a new
owner while preserving the affordability. Um, the operating
costs incurring during receivership,
costs incurring during receivership will be paid and the
proceeds of the donation tax credits.
proceeds of the donation tax credits and the donation. Tax
credits will also ensure that the operating costs are
covered until additional financing is secured.
our timeline for this project is um, hope
our timeline for this project is um hopefully we pass that
a council tomorrow and then uh September closing
and,
and the requested actions again, were requesting
forgiveness of the city of Chicago cdbg loan, and then the
release of the city of Chicago regulatory agreements.
That's it, any questions?
That's it. Any questions? When is the qap going to be
released?
Um, it's slated for
um, June 2025 July.
Related to be released.
Related to be released really soon, possibly this week. If
not next.
Okay, and then you're you're taking applications.
Okay, and then you're you're taking applications, also in
June.
yes, that's
Yes, that's when the funding round will open.
Okay, we're in June.
Yes, the funding round is expected to open this.
Yes, the funding round is expected to open this week or
sometime next week and the application period will remain
open through.
open through to July.
Is the qap.
Is the qap been. I mean it's, can you read it?
Is the qap been. I mean it's can you read it? I mean, is it
online? It's late it to be released this week.
online? It's late it to be released this week or next week.
Any questions on this 1?
Alderman clay.
thank you so much Madam chairwoman um,
Thank you so much, Madam chairwoman. Um, I just first want
to say thank you for giving us.
say thank you for giving us this opportunity to come before
this project. Um was my first Real Testament.
this project. Um was my first Real Testament of being in
Alder person a week after I was sworn in. We got a
emergency call in the middle of the night saying that the
Leyland had no water.
No water.
That.
that took us through a
Wormhole, as you can say, um, where we found
Wormhole, as you can say um where we found out that this
building was falling in disrepair.
building was falling in disrepair, for quite a long time.
Um, Not only was it falling,
um, Not only was it falling in disrepair the population
that lives in this building is basically the heart.
that lives in this building is basically the heart and
lifeblood of our entire Community. Um, former veterans,
former neighbors who have experienced home,
former neighbors who have experienced homelessness, which
our ward has had a growing issue with for decades
um, and it put a lot of our neighbors in fear and stress and
I want to just say a huge thank you because this is what
what intergovernmental partnership really look like.
what intergovernmental partnership really look like myself
along with Senator, Mike Simmons and state represent.
Along with Senator Mike Simmons and state representative
Han win. Um, we're very active in activating all of our
respective, departments to
respective departments to say hey you all you have to put
your arms and your eyes on this building. Um, and through
that.
that we have had an amazing opportunity to
that, we have had an amazing opportunity to partner 1 of
our key issues. You all is we are losing deeply affordable,
housing.
housing in the 46 Ward. We used to have sro's that were um,
accessible and now they are doing link, right. So to have a
building
have a building that not only provides housing but also
provides
Supportive Services on site for folks who have mental
issues or substance abuse.
issues or substance abuse issues is a huge huge resource.
issues or substance abuse issues is a huge huge resource in
my neck of the woods. Um as we were working through, what
does it?
Look like the.
Look like the building started to move into foreclosure.
which set an immense amount of alarms.
which set an immense amount of alarms off for a lot of
folks, even neighbors started to move out of the building.
because of the instability of what will the future be? This
project allows us to
This project allows us to not only
put in some,
Put in some real deep work to building it and making it.
Put in some real deep work to building it and making it a
great building for neighbors. But it also
great building for neighbors, but it also deeply supports
neighbors, who need it? The most these
neighbors. Who need it? The most these are neighbors who
are on fixed incomes or no income.
are on fixed incomes or no income, right? And they need to
make sure that they are living.
make sure that they are living in great quality housing,
that is going to be in a community that serves and protects
them as well. So, I just
them as well. So I just want to say a huge, thank you, um,
to the Department of Housing to Ida to Trilogy for
to the Department of Housing, to Ida to Trilogy, for
stepping up to make this work, because our biggest,
Hurdle was, how do we keep these deeply affordable? This
building is a beautiful gold.
building is a beautiful gold mine in the heart of my ward.
That could easily be
that could easily be flipped and turned into market rate
units. But the neighbors who've been living here, some for
quite a long.
quite a long time, have put into the culture and the
community of my ward, and I wanted to make sure that they
were protected. So,
were protected. So I just want to say thank you all for
hearing this and I will respectfully asking you for your
favor.
Uh, thank you Alderman. Clay, we did get a question.
Uh, thank you Alderman, clay. We did get a question from
Vice chair Conway.
On the community, Chicago.
On the community Chicago. Yeah, so the
Like the 700,000 there.
like the 700,000 there in the
Slide tip. Is that getting, is that part of the
slide tip. Is that getting? Is that part of the 1.6?
Or, or like, how does?
Or or like how does that differ from the 1.6? Because
clearly that's up above that.
um, so the Chicago, the clifft ark loan Cliff has to
forgive the loan themselves and they're in the process of
doing that.
doing that, okay? And so, and that doesn't require us to do
anything.
anything additional to get that they have to go through
their board and everything.
their board and everything like that. Similar process.
Okay, wonderful. That's all I have. Thank you.
Okay, wonderful. That's all I have. Thank you man for
almond Mitchell.
You have original outstanding balance, is that the
You have original outstanding balance is that the original
balance or what's left of the original balance?
Um,
stumped Me original.
Stumped Me, original outstanding balance, that that's what
their loan.
their loan was originally through, Mercy Community Capital.
and then, the payoff is 1.8
and then the payoff is 1.813, that's its, that's their
first mortgage.
mortgage. Okay? So no, none of the none of the
mortgage, okay? So no, none of the none of the principal
amount. Have been paid any payments made. No.
Alderman. Reilly
Thank you, madam.
Thank you, madam chair. Since we have a you know a series of
properties.
of properties before us today.
That are.
that are failing for various reasons and I
That are failing for various reasons and I understand
Heartland has its own issues.
Who's responsible for?
Ensuring that the stewards of these.
Ensuring that the stewards of these properties are
maintaining them.
maintaining them year in and year out.
I'll turn that over to Asia.
Good afternoon, everyone.
Good afternoon everyone for the record. I'll State my name.
Asia boner assistant commissioner
Asia boner assistant Commissioner of our asset management
division at the Chicago Department of Housing.
division at the Chicago Department of Housing and it is a
collective effort.
collective effort to ensure that the stewards of these
properties that receive public funds from a variety of
public agencies. Um,
public agencies, um, remain good stewards. And that these
uh, buildings remain in strong financial position.
uh, buildings remain in strong, financial positions and
operating operational footing.
operating operational footing, um, specifically for the
city's part.
city's part, within the Chicago Department of Housing, um,
ex roughly about a year ago.
ex roughly about a year ago, do stood up the asset
management division.
management division to um, have a specific
management division to, um, have a specific lens on the
Financial Health.
Financial Health of uh properties that have received City.
Financial Health of, uh, properties that have received City
financing. Um, so in brief to answer your question, uh,
that is a function that falls within the asset management
division, which
To oversee.
And prior.
and prior to a year ago, who was responsible,
Prior to a year ago, those responsibilities.
prior to a year ago, those responsibilities were dispersed
um within the department of
um within the Department of Housing, we did have an asset
management function. It just wasn't formalized as a
division. Um, and in addition to, you know, do is
responsibility to the extent that other public funders are
a part of the capital.
a part of the capital stack, they share in that
responsibility as well. Okay, so regardless of the
iteration, it's always been the responsibility of the
Department of Housing
There is some ownership.
There is some ownership within the Department of Housing,
right? So, so that's my point.
right? So so that's my point, I guess, you know, why is it
taking a building?
taking a building to lose water access?
Um, to trigger the alarm bells that we need to
um, to trigger the alarm bells that we need to go and
stabilize that property um, hearing
stabilize that property. Um, hearing it from my colleague,
all the woman clay, it doesn't seem like that's the way
it's supposed to work.
Um, and so what assurances can the city?
Um, and so what? Assurances can the city give to us.
That the bailout train.
That the bailout train will not continue to roll on. Um,
you know, I'm glad to hear that. We have a, a new, you
know, division.
Specifically focused on.
Specifically focused on Asset Management. Um,
but given the fact it's always been a responsibility of the
Departments,
What confidence do we have that? By making these moves,
we're not going to continue to have to make these moves.
over and over and over again. These are beautiful.
over and over and over again. These are beautiful assets.
And the expectation is when the city provides sub.
And the expectation is when the city provides subsidies.
That, that money. Um,
That that money, um, is used to in part maintain the asset.
for the people who live there.
And yet, we have this.
And yet, we have this now. Sad story over and over again.
And yet, we have this now, sad story over and over again of
properties that are supposed to provide housing for folks
who can least afford it.
Being neglected.
Okay. Um, as
Okay. Um Asia, I'm going to ask you first of all Let's uh 1
1 company Heartland Alliance who was uh, their portfolio,
their entire portfolio.
their entire portfolio, um, was in distress but Asia.
their entire portfolio, um was in distress, but Asia would
like for you to talk you. And I talked a little bit about
like for you to talk you and I talked a little bit about
the specific things that you're doing.
the specific things that you're doing in the department.
Would you take a few minutes and share?
Would you take a few minutes and share and talk about what
you're doing, also?
you're doing? Also the relationship between organizations
like uh cic and and others. Um absolutely I appreciate that
and
that and uh
So, thank you. Uh, chairwoman
So thank you. Uh chairwoman Dow um, to address your question
head on
question head on, uh, Alderman rally, as you said it
really,
really starts with added capacity. So the fact that we do
have concentrated resources in the form,
have concentrated resources in the form of a dedicated
division, um, sort of sets the foundation for more focused
attention, you know, dedicated Personnel, um,
attention, you know, dedicated Personnel. Um, but beyond
that it allows us to
that, it allows us to um make sure that we Institute uh
that it allows us to um make sure that we Institute uh more
internal controls, and checks and balances with.
internal controls and checks and balances with a review
process of again the Financial Health of these properties.
And
and broader portfolio portfolio owners. So uh developers
who have multiple properties in the city, um, being able to
look at the full breadth of their ownership in the city,
and, and properties that have financing from
and properties that have financing from us, um, to look for
indicators.
indicators that signal an asset is in trouble.
indicators that signal an asset is in trouble and in
building,
that Foundation along with
That Foundation, along with building Partnerships as
chairwoman mentioned.
chairwoman mentioned um, with some of our, our colleagues
chairwoman mentioned um, with some of our our colleagues
also invested in preserving affordability. Long-term namely
um, uh,
um uh cic is a is a known partner in an important conven
convener in this process as well as the other public fun.
in this process as well as the other public funders, um,
having a platform
funders, um, having a platform to share information and
And, um, as I said identify, you know, troubling
indicators, and then from there, troubleshoot to prevent
future outcomes like a Heartland.
future outcomes like a Heartland, um, but I think it is
important to emphasize as well.
important to emphasize as well, that this was a single
owner operator that held a large number of propert.
owner operator that held a large number of properties and
had a business model that was
had a business model, that was really altruistic. Um,
know, had the thought of providing deeply affordable
housing for people who needed the most, but that business
model is very challenging.
model is very challenging because they're living,
On the margins. Um, you know, with rents at 30% Ami. That's
really not enough to sustain the kind of buildings that
they held older and complex with difficult.
they held older and complex with difficult systems. And so
it's very easy to to fall short over time. Um,
not to excuse it there, but there are ways now with our
division in place and our Partnerships in place to prevent
um operators that similarly uh focus on
um, operators that similarly uh, focus on deep
affordability from having a similar fate.
okay, uh, and just again, I'm not looking to extend this
Madam chair but
Heartland raises. Some great concerns here.
Heartland raises, some great concerns here. Absolutely. And
I I have to imagine that they're not the only provider
managing a portfolio.
Um, or or their other entities that have.
Um, or or their other entities that have multiple
properties in their portfolios. Yes and not just operators
who have multiple City Finance uh, propert
operators, who have multiple City Finance, uh, properties
in their portfolio but operators who
in their portfolio. But operators who have deeply
affordable? Properties. Those are ones that we want to, you
know, make sure we um,
are you know, closely monitoring
Are, you know, closely monitoring and coming up with
strategies to provide support.
strategies to provide support, it's not always in the form
of additional Financial res.
of additional Financial Resources but sometimes it's
actually adding capacity um, in this industry.
actually adding capacity. Um, in this industry affordable
housing industry, you're you know, responding from for
you're looking at need to need day-to-day. Just trying to
keep things afloat. Um oftentimes it's hard to take a step.
step back and take an asset management approach and that's
something that the city along with our other public
Lending,
lending, partners are looking to encourage with our
portfolio.
portfolio holders. You have deep affordability, um, in
their
portfolio.
Is to build Asset Management skill.
Is to build asset management skills, not just property
management and responding.
management and responding, you know, in isolated, you know,
issues but taking a broader approach and so that's
issues, but taking a broader approach. And so that's 1 of
the things that we are absolutely encouraging and promoting
to prevent um, another situation.
to prevent um another situation like this. Okay? And I'm,
I'm glad to hear that we're doing.
I'm glad to hear that we're doing that now. Um, 1 could
argue, we should have been doing that.
argue, we should have been doing that for some time. I
don't disagree. Um,
don't disagree. Um yes correct. Um and that's very helpful
to know my final question is
Is Heartland an outlier here or are? They kind of a are
they would they be the canary in the coal? Mine are there?
other dominoes yet to fall?
Or is this something that's unique to Heartland? Um,
or is it the model generally?
I think what we're seeing in the affordable.
I think what we're seeing in the affordable housing
industry at large is, um, concern, uh, postco. Um, that was
a really destabilizing event for many affordable housing,
owner operators.
owner, operators. The things that we hear, um, from our
partners and and, um, fellow advocates in this space,
partners and and, um, fellow advocates in this space is
that, um, postco,
that, um, postco. We saw the rise and, and operating cost.
that, um, postco. We saw the rise and, and operating costs,
but not, you know, um,
but not, you know. Um, an equivalent rise in income, a lot
of tenants are really.
of tenants are really challenged with issues around.
of tenants are really challenged with issues around income
and employment. Um, that adds additional
Pressure and stress on on these types of properties. Um, so
it's something that we are concerned about, um,
it's something that we are concerned about. Um, and again,
it's going to take, uh, a collaborative effort across our
partners.
partners to make sure, um, that we Shore up these
properties. And, and prevent, you know,
properties and, and prevent, you know another outcome like
this, no, 1, want to see another
this, no, 1. Want to see another Heartland, this is taken a
lot of time. A lot of resources, a lot of
hand.
hand ringing as all the women clay and it says to the times
we've spent, you know, in her Ward. We don't, we can't go
through this again.
Okay, all right. Thank you. Madam chair. Thank you.
Okay, all right. Thank you, madam chair, thank you. Um,
Alderman Ramirez.
Alderman Ramirez makes a recommendation of due pass on this
matter. Um, item number 10, uh, can I
this matter. Um, item number 10, uh, can I get a all in
favor of the motion signify by saying, I, I opposed, in the
opinion,
opinion of the chair, the eyes have it and the do pass
recommendation,
recommendation will be reported out at the next meeting.
Um, Alderman Mosley has requested a rule 59
Um, he's here. Remotely can
Um, he's here remotely can I have a motion to allow him to
participate? So moved by Alderman, Rodriguez all those in.
favor. Signify by saying, I opposed
favor. Signify by saying I opposed and the opinion of the
chairs, the I have it.
chairs, the I have it and uh, Alderman Mosley. You've
joined us. Moving on to item number 11 from the Department
of Housing, a substitute or
ordinance concerning the execution of a Redevelopment.
Ordinance concerning the execution of a Redevelopment
agreement and the issuance of financial assistance.
agreement and the issuance of financial assistance, tollare
Partners a North JV LP for the lair project located at 48
09.
09 West 44th, Street and 4.
09 West 44th Street and 44442 South Cicero Avenue in
09 West, 44th Street and 44442 South Cicero Avenue in the
22nd Ward.
There is.
There is a substitute ordinance. Uh, so can I get a motion?
There is a substitute ordinance. Uh, so can I get a motion
to accept the substitute for so moved by?
to accept the substitute for so? Moved by Alderman, Ervin,
all those in favor. Signify,
all those in favor. Signify by saying I, I opposed
In the opinion of the chair, the eyes have it, and the
substitute.
substitute is before us
good afternoon.
Good afternoon. Hi Cher. Have the presentation by Deana
Wayne. Thank you.
I'm here today to discuss funding for the L.
I'm here today to discuss funding for the Lair Court, North
Apartments located at 4809 44th, Street and 4.
Apartments located at 4809 44th Street and 4442, South
Cicero.
And Alderman Rodriguez's, Ward and it's in.
and Alderman, Rodriguez's, Ward, and it's in the Cicero
Stevenson Tiff, you may recall that it was December of last
year. We came here to Port funds from 2 EXP.
year. We came here to Port funds from 2 exp, so that we
would have the 5.5 million dollars that were requesting
today to give to this.
today to give to this project. In addition to, uh, money
out of
of multifamily loan funds uh of 9.
9.5 million.
the developer team is,
The developer team is a joint venture between habitat and
Cobra partners.
Cobra Partners Solomon. Cordwell bends are the arch.
Cobra Partners Solomon. Cordwell bends are The Architects
of record George. Solid construction is the GC.
The principal.
The principle under his Bank of America, uh, and habitat.
will manage this property themselves.
In terms of an overview, this is the
in terms of an overview, this is the Redevelopment, the
very first phase of the lair courts project.
Uh, the
this project.
This project is what we call a twin deal. It's going to
actually be in 2 buildings.
actually be in 2 buildings primarily the north building and
we'll see a picture of that in a moment.
we'll see a picture of that in a moment and in the south
building as well.
building as well, the 138 units will again be spread over
those.
those 2 buildings. 110 in the north building.
those 2 buildings. 110 in the north building, 28 in the
south building as you can see
south building. As you can see it's a mix of units between
15% Ami and 80% Ami along with 14 market rate buildings.
The total project cost 86.
The total project cost 86 million about we hope to close.
They hope to close uh, the end of October. Um,
They hope to close. Uh the end of October um of this year
with completion, then in Mar
year with completion, then in March, at the end of March
2027,
I hear, you can see the rental.
I hear you can see the rental unit, mix a total of 11
units. Um,
At 30% am.
At 30%, Ami made up of studios and 1 bedroom.
At 30%, Ami made up of studios and 1 bedrooms.
4 bedrooms at 50.
4 bedrooms at 50 41 bedrooms at 50% Ami.
4 bedrooms at 50 41 bedrooms at 50% Ami, a total of 101.
Uh,
units at 60%. Ami and that's made up of a mix of Studios 1.
twos and 3 bedrooms, um,
8 units at 80%.
8 units at 80% Ami 1's twos and 3 bedrooms. And again the
14
8 units at 80% Ami 1's twos and 3 bedrooms and again the 14
market rate which at this time are expected to be
14 market rate which at this time are expected to be
Studios and 1 bedrooms.
In terms of the project sources.
in terms of the project sources, there's a
A permanent loan from.
a permanent loan from A Bank Cedar Rapids in Iowa.
Cha is giving 24.5 million in capital.
Cha is giving 24.5 million in capital funds. Again, the
city's 5.5 million in Tiff and 9.5 million in mult.
city's 5.5 million in Tiff and 9.5 million in multi-family
funds. Uh, the the litech funding is expected to be 33.7.
million dollars. Those low-income housing tax credits,
million dollars. Those low-income housing tax, credits are
expected to be generated by about
47 million in tax exempt, bonds.
47 million in tax exempt, bonds, that are going to be
issued by Ida.
Donation, tax credit Equity a deferred de.
Donation, tax credit Equity a deferred developer fee a d.
O.
O Grant and a hundred dollars in general partner Equity.
Um, complete the funding
Uh, here you can see outlined in yellow.
uh, here you can see outlined in yellow, the entire Lair
project, uh, the nns represent the North and South
buildings.
uh, again here, those North and South buildings are
referred
to as South as site a with pictures of how it looks right
now.
again, this is, um,
Again this is um spelled out all the buildings. I think it
goes through phase f as in Frank if I remember correctly.
goes through phase f as in Frank if I remember correctly uh
all the buildings that are are planned for the site. A mix
of commercial and residential and again cite a there. You
see the north building and the south building
Picture of the north building.
South building similar in scale.
Again, this project will
Uh, create cha replacement units other.
Uh, create cha replacement units other affordable units.
Its Environmental featur
Its environmental features include
Not only meeting.
not only meeting the city's sustainability requirements,
but doing
doing so by reducing light pollution and incorporating
Heat.
doing so by reducing light pollution and incorporating heat
island reduction through highly reflective.
island reduction through highly reflective Roofing
membranes and site Paving, um, reduc
membranes and site Paving um reducing indoor water usage by
40%.
by 40% have a building automation system with
40%. Having a building automation system, with efficient,
cooling equipment, air economizers damper.
cooling equipment, air economizers damper, controls leak,
prevention, methods measures for fans and duct worth duct
worth.
duct worth Duckworth duct work and a vrf system.
Duckworth duct work and a vrf system and diverting waste by
80%, uh,
80%. Uh, there's going to be a, a daycare center in the on
the first floor and they expect that that will create 30 to
40 full-time jobs and then
40 full-time jobs, and then 250 um, temporary Construction.
jobs.
so that we are expecting hoping
So that we are expecting hoping for city council approval
in June. Again closing at the
in June again closing at the end of October, starting
construction right away.
construction, right away and having the developer finish
the project by the end of March in 2027,
and so, again, the request is
and so again, the request is 5.5 million in Tiff and
And so again, the request is 5.5 million in Tiff and 9.5 and
multi-family loan funding.
Um, their representatives from the developer team.
um, their representatives from the developer team and also
cha to answer any questions you may
cha to answer any questions. You may have thank you.
Thank you. Dina. Do you have any questions for members of
the committee?
Seeing none, Alder.
Seeing none Alderman Rodriguez. Yes, thank you very much.
Madam chair. This is an excellent project that I'm so proud
to be. So,
to be associated with. Um, we're talking about this.
to be associated with. Um, we're talking about this phase
being 10 183 families.
being 10 183 families coming in to the community. Uh,
that's on the rise. Really in the southwest side of
Chicago, 1 of the most diverse parts of our city and a lot
of ways. Um, and this project uh, has a diverse amount of
funding. Um, I believe the city part.
funding. Um I believe the city part will only be a uh, a
significant yet. Uh uh. Only a part of this.
significant yet uh uh, only a part of this great effort and
I I think about this as a best practice. Um, we have built
built a new grammar school in this area. We're in the
ground with new water mains in this area.
new water mains in this area infrastructure improvements
are happening as we speak. And I'm so so excited about um,
what's next in this development and I asked my colleagues
for the
colleagues for the favorable consideration. Thank you very
much, Madam chair.
chair. Thank you Alderman, Rodriguez.
Seeing no other questions. Can I get a motion to accept? Uh,
Oh Alderman, viegas. Yes, thank you.
Oh, Alderman. Viegas, yes, thank you. Madam chair, no
question. Um, you've called a motion to vote? I'd like to.
question. Um, you've called a motion to vote. I'd like to
invoke rule 14 under an abundance of caution. I have a 17
year old son. Who's doing a paid intern.
year old son. Who's doing a paid intern summer, internship
there. Uh, and so it
there. Uh, and so I want to disclose that, okay?
okay, well, acknowledged that and the uh,
Minutes.
And invite. Um,
Alderman, kuden recommends, do pass.
Alderman, kuden recommends, do pass all those in favor of
this motion signify by saying I I opposed in the opinion of
the
of the chair, the eyes have it and the due pass recommend
the chair, the eyes have it and the do pass recommendation
will report it out at the next
City council meeting Dena. Thank you.
City council meeting Dena. Thank you so much for your
presentation. Thank you. Um, item.
presentation. Thank you. Um, item number 12, uh,
Is.
Is a city council.
Item. A substitute ordinance introduced by Alderman Bennett
Lawson of the 44th Ward.
Lawson of the 44th Ward, to enter into an agreement with
the Chicago, Cub
the Chicago Cubs baseball club, LLC for the security
enhancement project at 108.
enhancement project at 1088 West Waveland Avenue in the
44th.
44th Ward. There is a substitute ordinance, which
44th Ward. There is a substitute ordinance which has been
prepared and sent electronically to everyone. Um, Alderman
Quezada makes a motion to accept the
Substitute all.
Substitute all those in favor. Signify by saying I I opposed
in the opinion of the chair of the eyes, have it and
in the opinion of the chair of the eyes have it and the
substitute ordinance is before us and will be explained.
substitute ordinance is before us and will be explained to
us by uh, James MacDonald.
to us by uh, James MacDonald, the managing deputy
Mr. MacDonald get up.
Mr. MacDonald get up here.
The man.
The managing Deputy Corporation Council with the Department
of Law, and we also have with us commissioner.
of Law and we also have with us commissioner. Tom Carney,
from the Department of Transportation
Mr. MacDonald.
thank you, chairman sorry for
Thank you, chairman, sorry for the delay in getting me up
here to the front.
For the record again.
My name is Jim.
My name is Jim McDonald, I'm the managing Deputy
Corporation.
Corporation Council and the Law Department the substitute.
Corporation Council and the Law Department. The Substitute
ordinance before you authorizes. Several.
ordinance before you authorizes several transactions.
There is.
There is a number of real estate transactions between
there is a number of real estate transactions between the
city and the Chicago Cubs team.
to um, resolve some
to, um, resolve some ongoing disputes about
To um, resolve some ongoing disputes about ex joining land.
Uh, this
uh, this ordinance will authorize all those disputes in a
way that satisfactory to the city and as well to the team.
It is.
It is also going to authorize the
city entering into agreements.
city entering into agreements for a security Improvement
project.
project around greatly feared.
involving the construction of ballards that
Involving the construction of ballards that will be some in
the public way. Some in other property surrounding the
field.
Uh, and the security project.
uh, and the security project is going to be funded by a
combination of funds that represents combination
contributions from the team.
from the city, and
From the city and directly or indirectly from the state.
so,
All these would be.
Documented and agreements.
Documented and agreements, that will be authorized under
this Orden.
this ordinance.
And that is the purpose of the ordinance before.
and that is the purpose of the ordinance before you
Commiss.
Commissioner Kearney. Can you speak a little bit about the,
uh,
What your role is in?
What your role is in this, in this.
Um, yes.
uh, Tom Carney, uh, commissioner sedat, um,
Uh, Tom Carney, uh, commissioner sedat. Um, so it's it's
really uh, 2-fold 1.
really uh, 2-fold 1, um, through our um,
Various.
Various relationships with with uh, the state through the
Illinois Department.
Illinois Department of Transportation. Um,
the, the funding from um, the state will
The, the funding from um the state will come from IAT to
flow into sedat. Um, so that that's 1 factor and then the
other factor is us working. Um, with the
other factor is us working, um, with the team, um, in terms
of, uh,
of uh, our engineering um, knowledge regarding
uh our engineering um knowledge regarding ballards and
security enhancements and then we will work closely with
them to uh facilitate you know?
them to uh facilitate you know, a quick
Turnaround at the office of underground.
turnaround at the office of underground coordination and
then, as well with the permitting process.
then, as well with the permitting process to, uh,
facilitate so they can facilitate the work.
So they can facilitate the work through their contractor to
uh, install these over the course of
uh install these over the course of uh 2 off seasons.
And uh, M Mr. MacDonald could you?
And uh, M Mr. MacDonald, could you explain to the members
of the committee?
of the committee this piece of land or maybe Alt
of the committee? This piece of land or maybe Altman Lawson
you would want to explain what the situation is with the
piece of land and what it is?
Sure. Um thank you uh, Madam chair.
Sure. Um, thank you uh, Madam chair. There's actually 2
pieces of land here. Um, but I'll I'll
of land here. Um but I'll I'll start with the 1, that's in
dispute. Um, for a
that's in dispute. Um, for a long time, we've had an issue,
uh, immediately north of the ball.
uh, immediately north of the ballpark between Clifton and
Seminary Avenues. Um, where the railroad vacated, uh,
previous land that had owned. Um, the title has not been
clean, um, it resulted in, what is a very tight 10 foot
Ally um the disputed property.
Ally, um, the disputed property and then uh, Seminary
Avenue which has parking on both sides and
which has parking on both sides in a landscape buffer. Um,
what we're doing here is putting in what would be a 14 foot
dedicated?
foot, dedicated Ally for my residents on Clifton which is
just loaded on the 1.
side Cubs are shifting their
Side Cubs are shifting their what VIP player parking lot is
what this is.
what this is slightly uh to accommodate both the all
what this is slightly uh, to accommodate both the alley but
we're maintaining parking and the landscape bar.
we're maintaining parking and the landscape barrier on the
Seminary side. Um, the other piece that we're working with
here is along Addison,
here is along Addison where the Addison sidewalks,
immediately south of the ballpark. The north side of
Addison will be widened by 4 feet. In addition to adding
the ballards that are there um that's the tightest point of
the stadium.
of the stadium, uh, where it's just it's basically 6 feet
from the curb and where all of our buses load right now. So
those are the 2 pieces of property uh, that are being
touched by.
touched by this.
Thank you.
Um, any questions from members of the committee.
Move.
move to pass by Alderman Moore, all those in favor of the
motion signify by saying I I oppose
motion. Signify by saying I I oppose and the opinion of the
chair of the eyes have it and the due pass recommend.
chair of the eyes have it. And the due pass, recommendation
will report it out as the June
city council meeting item number 13 is
What?
Oh, we have Cuban in here, huh?
Um,
item number 13 is a proposed order.
Item. Number 13 is a proposed order. Authorizing. The
payment of various small claims against the city of
Chicago. It was a direct introduction.
Chicago. It was a direct introduction, and the list of
payments approved was sent electronically.
payments approved was sent electronically to everyone. If
there are no objections, these will be placed in the
Omnibus.
Item. Number 14.
Item, number 14 is a proposed order. Denying the payment.
Item number 14 is a proposed order. Denying the payment of
various small claims against the city of Chicago.
also a direct introduction and that
Also a direct introduction and that list of payments was
sent electronically to everyone. If there are no
objections, these will be placed on the OM.
objections, these will be placed on the Omnibus.
Item. Number 15.
Are 2 proposed orders author.
Are 2 proposed orders authorizing. The charitable
solicitation on the public.
solicitation on the public way. Permits also a direct
introduction from worldwide. Wildlife found
introduction from worldwide. Wildlife Foundation for
Citywide effort, July 1st.
Citywide effort, July 1st 2025 to December 31st.
Citywide effort, July 1st 2025, to December, 31st, 2025 and
planned.
and Planned Parenthood Federation.
Of America, for Citywide.
of America for Citywide effort, July 1 2025 to
of America for Citywide effort, July 1, 2025 to December,
31st 2025, if there are no OB
31st 2025, if there are no objections, the permits are
approved. This will be placed on file with the clerk and
there being no.
there being no further business before the committee. Can I
get a motion to adjourn? So, moved by Alderman, Lee
all those in favor, signify by
All those in favor. Signify by saying I I oppose the eyes
have it. The meetings adjourned, thank you.
The.
The chair of budget will tell us. When
The chair of budget will tell us when he's you. Are you
going now?
He's going to.
Gabble in right now.