I check 12 mic check 34 Mike, checking the mic mic.
I check 12 mic check 34 Mike checking the mic mic 1 Mike 2
Mike 3 Mike 4
Like City.
Like city council. Yeah, calling in person.
I might for the beginning.
Everyone happy. Happy Monday.
Uh, the
happy Monday. The committee on finance is called to order.
We will now have a roll call to establish.
We will now have a roll call to establish quorum.
Vice chair Conway.
Alderman laspata.
Alderman Hopkins.
hey, there Alderman, Hall
Alderman Mitchell.
Alderman Beal.
Alderman. Lee.
Alderman Ramirez.
Congratulations alderman.
Congratulations, Alderman, Ramirez. Let's give her a hand.
to the
To the new.
To the new bride.
Um,
oh, to the new wife.
Oh yeah. Yeah that's
Alderman Quinn.
Alderman Lopez.
Alderman.
Alderman Moore.
Alderman. Curtis Alderman. OSHA.
Al.
Alderman Taylor. Oh, I'm sorry Alderman, Taylor's on
Alderman Taylor. Oh, I'm sorry Alderman. Taylor's on uh,
Alderman. Rodriguez uh wait a minute.
Alderman Scott.
Alderman. Sichel Lopez.
Alderman Bernett.
Alder.
Alderman.
Vice mayor brunette. I see you. Al
Vice mayor brunette. I see you Alderman. Talia Farrell.
Alder.
Alderman, Cardona.
Alderman, Wagers.
Alderman waguespack.
Alderman, Rodriguez San
Alderman, Rodriguez, Sanchez.
Alderman.
Alderman Quezada.
Alderman V.
Alderman. Viegas.
Alderman Spa.
Alderman Vasquez.
Alderman. Reilly
Alderman. Kuden.
Alderman. Martin.
Alderman.
Alderman, she's on, she's remote. Chair Dao is here.
We have a quorum, we have 19 members present.
Alderman Silverstein alderman.
Alderman Silverstein Alderman. Rodriguez, Alderman Taylor.
Cardona, Mosley mitts and Harris. Have requested to
participate. Remotely at today's meeting for reasons,
stated under the provision.
under the provision of rule 59. Can I have a motion to
allow these Alderman to participate moved? So moved by
Alderman laspada. All those in
Alderman laspada, all those in favor of the motion signify
by saying, I I all those opposed, in the opinion of the
chair, the eyes have it, I'd like to confirm Alder,
chair, the eyes have it. I'd like to confirm Alderman
Silverstein
Alderman.
Alderman Rodriguez.
Rod.
Rodriguez is here Alderman. Taylor here.
Rodriguez is here Alderman. Taylor here, Alderman, Cardona.
Here.
Here Alderman, Mosley.
Alderman mitts.
Al.
Alderman Harris here.
Okay.
um, I also saw Alderman, Beale come
Um, I also saw Alderman, Beale come in and we will count
him towards quorum.
At this time, we will begin the public comment period. The
public comment period will be limited to 30 minutes out of
respect for everyone.
respect for everyone's time. Um, each speaker is limited to
3.
3 minutes. All the mentality of pharaoh, I see you and you
will be counted towards quorum.
The first.
The first speaker is Brian septon.
Good morning and thank you for the opportunity.
Good morning and thank you for the opportunity to speak
today. My name is Brian septon, I'm a pension actuary a
fellow of the Society of actuaries and have nearly 30 years
of experience with pensions.
of experience, with pensions. I run the Chicago based
actual retirement consulting firm. I'm also active in the
Chicago business and Civic communities. I'm here today to
express my strong support from Mike,
express, my strong support from Mike belsky is nomination
to be the next controller of the city.
to be the next controller of the city of Chicago.
I first heard the name. Mike bellei. When
I first heard the name. Mike bellei, when I moved to
Highland Park in 2009 at that time.
Highland Park in 2009, at that time Mike was already
something of a local Legend mayor.
something of a local Legend, mayor bulski. As I still call
him today, what struck me then?
him today, what struck me then and continues to impress me
now is how Mike made time for everyone.
now, is how Mike made time for everyone and everything? He
worked full-time in the public.
worked full-time in the Public Finance. He served as
Highland Parks. Mayor.
Highland Parks mayor, he volunteered extensively, including
on the procedures.
on the procedures Board of the government Accounting,
Standards Board and he still found time to be present in
the community. Almost everyone I met in.
the community. Almost everyone I met in Highland Park at a
connection to Mike and he was deeply woven into the fabric
of the city.
a few years later, I had lunch with
a few years later I had lunch with Mike, just as he was
launching the center for municipal Finance at
University of Chicago, he shared a bold vision,
University of Chicago, he shared a bold Vision to build, a
world-class research, and education hub for
world-class research and education hub for municipal
Finance right here in Chicago.
and,
And he delivered, he established. He assembled a prestigious
Advisory Board of nationally recognized experts in under
his leadership. The center became a national fixture.
I was honored to serve on that board and saw firsthand.
I was honored to serve on that board and saw firsthand
Mike's ability to bring people together and get things
done. Mike is also a true student of Chicago. He is an Avid
Reader and he's read deeply about the city's.
Reader and he's read deeply about the city's history. He
once told me about his visits to use book,
once told me about his visits to use bookstores across the
city in search of a rare and other print books,
city in search of a rare and other print books. His entire
bookshelf, dedicated the Chicago system
bookshelf, dedicated the Chicago History and at 1 point he
even handed me a few must-reads to help me.
even handed me a few must-reads to help me round up my
understanding. That's who Mike is someone. Who
understanding. That's who Mike is someone who now I know is
a city, but cares deeply about teaching other
is a city, but cares deeply about teaching others in
conclusion, Mike brings deep expertise.
conclusion. Mike brings deep expertise in governmental
finance, a tireless work ethic and
finance. A tireless, work ethic and a genuine passion for
public service. He's exactly the kind of leader we need in
the controller's office. I urge you to support his
nomination. Thank you.
Thank you. Our next speaker is zou
Thank you. Our next speaker is Zoe lei.
Like to.
Acknowledge, I'm sorry. So
Acknowledge. I'm sorry. So if you give me 1 second, um,
would like to acknowledge, um, Alderman Hall and Alder,
would like to acknowledge, um, Alderman, Hall and Alderman,
Rodriguez, Sanchez have joined us by virt.
Rodriguez. Sanchez have joined us by virtue of rule, 59,
can I get a motion to allow?
can I get a motion to allow these 2 Alderman in the
meeting?
Some moved by Alderman CEO Lope.
Some moved by Alderman. CEO Lopez all those in favor signify
by saying, I
by saying I opposed in the opinion of the chair, the eyes
have it,
have it also want to acknowledge Alderman tabaris. Who's
join
who's joined us as a non-member
You may continue. Sorry.
You may continue sorry for the disruption.
Today, the committee on finance is set to.
Today, the committee on finance is set to approve. A 17
million payout in the case.
million payout in the case of Roberto versus Ronaldo.
That 17 million dollars of taxpayer.
That 17 million dollars of taxpayer money. Going to a man
who was framed in prison for 23 years and finally
exonerated all due to corruption inside the Chicago Police
Department,
Department. Meanwhile, my federal case with clear evidence
of fraud, unlawful Demolition, and
of fraud unlawful Demolition, and constitutional violations
by the corrupt city of
violations by the corrupt city of Chicago elected
officials. And employees is still sitting over in federal
court. Chicago has paid out
court. Chicago, has paid out over 750 million in
misconduct.
settlements and the corruption continues. My judges over
there. A judge horde.
there. A judge horde Alonso which was appointed by a bomb
Obama.
And judge Franklin.
and judge Franklin Valderrama, which was uh, appointed
And judge Franklin Valderrama, which was uh appointed by
Trump.
He just got, we just reopened that.
he just got we just reopened that case so was giving him
time and instead of settling the city of Chicago is trying
to Fast Track, an ordinance 8.
to Fast Track, an ordinance 8-4-1 to create a new criminal
offense assault against public.
offense assault against public officials. This includes a
minimum 10,000 fine up to $20,000 mandatory.
minimum 10,000 fine up to $20,000 mandatory jail time.
Minimum 120 days up to 180 days covers any elected or
Minimum 120 days up to 180 days covers, any elected or
appointed by city official based on the app apprehension of
battery. Not even physical.
battery. Not even physical contact and it goes into effect
immediately.
immediately if passed by 2/3 of city council, otherwise,
immediately. If passed by 2/3 of city council, otherwise it
activates 10 days after passage and publication.
so,
Y'all.
y'all won't set a legitimate cases of government abuse.
y'all won't set a legitimate cases of government abuse, but
your Russ legislation to criminalize the public for
confronting officials who break the law.
That is so hypocritical. I've been coming down here since
2023.
2023 before this even was something and I said,
That I lived.
that I lived in the state of Georgia and I
That I lived in the state of Georgia and I watched well,
they cheated. But that state
they cheated but that state turned blue and I said, I will
flip this city.
flip this city read. If y'all never settle my family's
case.
from that 1 case, I am
From that 1 case. I am down to 4. I have 4 cases in federal
court.
Court 1 against
David.
David Moore, Michelle Harris. Alvin Stark.
David Moore. Michelle. Harris. Alvin Starks Rosana
Rodriguez. Sanchez. The
Rodriguez, Sanchez. The city Tony, prek Winkle all for
violating. My first amendment for me speaking out.
violating. My first amendment for me. Speaking out about
the corruption like come on.
the corruption like come on man. Y'all took Oaths
Y'all.
Y'all getting voted in y'all pandered to us every time.
Y'all getting voted in y'all pandered to us. Every time
it's midterms and I can't get no.
it's midterms and I can't get no help from from, from from,
from from, from, from the elective.
from from, from, from the elective officials.
and y'all think I'm supposed to just,
And y'all think I'm supposed to just just give up. Like I
just I don't I don't really
just, I don't, I don't really understand like y'all thought
process.
Thank you very much. Our next speaker is
Mr. George Blakemore.
The games that people play.
This is a mass raid down here.
This is a mass raid down here, the games that people play.
And you, when Joy was speaking.
They was talking to each other.
you all don't want to hear and and, and
You all don't want to hear. And and and, and it's it's sad.
A.
a finance committee meeting and you only and I have
A finance committee meeting and you only and I have 2 or 3
people that speaking.
and,
and something else that said, if they calling virtual,
that should stop.
and down here, I see how
Many.
Walter Bernett is going to.
Walter Bernett is going to housing.
and,
And his son's supposed to be coming over here.
Well.
Well, Walter vernet will be over.
Well, Walter vernet will be over housing and he will also
have this state here.
Because his son going to.
Because his son going to do what he tells his sons to do.
his son have no experience. That's just
his son have no experience, that's just the apartment and
then the big game when it gets election time, that's when
the Cesspool come in,
He will be.
he will be voted in.
Waste fought and abuse.
He will be the.
he will be the machine will put him in, that's why I
He will be the machine will put him in. That's why I use
this term 69, all of my
this term 69 all of my bag.
A black 1.
the white ones, the Hispanic
The white ones, the Hispanics, the Asia. All of the same.
the white ones, the Hispanics, the Asia, all of the same
piece of
And the reason.
and the reason they continue to do this,
Is no.
Citizen.
Citizen participation.
They?
They don't want to inform educate.
They don't want to inform educate and Enlighten their
citizen. That is 1 of your responsibilities also.
citizen. That is 1 of your responsibilities also, as an
elected official
You are happy that nobody.
You are happy that nobody is here.
that's and, and
That's and and the people is sad.
It's really.
It's really a sad day.
Successful here. Now while I'm talking,
Successful here. Now, while I'm talking there is over there
in the wheelchair, there is talking to
there in the wheelchair, there is talking to her. I
remember as bad as Bert was,
remember as bad as Bert was and celes, they wouldn't let
that happen. You got some, they were bail.
To the people.
Bro, come back down here.
Please come back down here.
It was better. It's getting worse than worse.
It didn't.
It's been worse than worse.
You.
You know why? No citizen.
You know why? No citizen participation nada.
You know why? No citizen participation NADA, and you're
happy. Just like I'm happy.
happy. Just like, I'm happy and happy and I flip Ray.
Thank you, Mr. Blake Moore. Our next speaker is Taiwan Sims
Good morning, Comm.
Good morning committee. Good morning. Good morning. So um,
I got to apologize to buy and see your Lopez.
the other day, I said that it
The other day, I said that it would cost. Well, 2024 was
the other day I said that it would cost well, 2024 was 195
million spent on migrants or no it was 16461 Million.
million spent on migrants or no it was 16461 Million spent
on the homeless initiative.
In.
In 2025, that's 195. Million spent on the
In 2025, that's 195 million spent on the homeless
initiative.
plus what another
Plus what another 40 million or 21%, they said, or something
like that.
something like that.
however, once again, I come to talk about Americans and why
we're not allowed that
And how 7,000 individuals who had not paid.
and how 7,000 individuals who had not paid anything.
Into.
Into what Social Security and to public interest, nothing.
Have been housed over me.
And I started this in 2024.
Chairwoman Dow.
Remember, it's the I'm still the same.
Remember, it's the I'm still the same individual.
and also, they have a
And also they have a a system implemented. What is the
coordinated?
coordinated entry System? 2.1 million. It's paid into this.
Towards this.
Towards this effort of homelessness.
But still.
What about me? What about me chairman?
No chairwoman. But what about me?
Hold On Me.
Very individual.
Even though on what the budget committee, man.
even though on what the budget committee, man Irvin
Who violated my?
Who violated my constitutional, right? The first amendment.
What about me?
You handle the money.
You handle the money, you handle the money.
Y'all.
Y'all both favored me? I'm a black man. Y'all black
individuals.
I'm just politicking. What's what's that? Um,
racial politic and that's what Urban do because he could
care less about my my
care less about my, my situation or my circumstance because
nothing has happened.
and while we, while we
and while we while we drop what deeper and decline
financially in the city,
682 million.
2.5 billion.
2.5 billion dollars accounted for and that's more than the
whole state of Illinois.
That's how much the city of Chicago is.
That's how much the city of Chicago is paid towards the new
arrival initiative.
What about the city's? What about our 77 communities? What
how much Finance?
how much Finance has y'all put into that? How y'all put
into that?
But I'm, I said woke.
Woke all.
Woke all night turning over, trying to figure out how to
say this. How
say this, how not to be upset.
how not to show emotion, but you
How not to show emotion but you can't.
when you realize that as an American,
When you realize that as an American, you have been
discounted pushed it away side.
And everybody else been paid out.
But this just can't be towards the poor people. That, that
that Greg Everson over here. So I know some Pockets have
been lined.
and so, if I
and so if I speak up here for too long and say those things
that make enough,
things that make enough sense,
And how we?
and how we decline in that Chicago ones as we pay out into
initiative that
initiative, that means nothing to us.
and everybody else get the game, but
And everybody else get the game, but we get the worst of
it.
Thank you, Mr. Sims, that concludes our uh, public.
Thank you, Mr. Sims, that concludes our uh public comment
period. Um, we will now begin
period. Um we will now begin with the regular items on our
agenda. Um,
agenda, um, which starts with the approval of the June 202,
agenda, um, which starts with the approval of the June 2025
monthly rule, 45 report for the committee on,
monthly rule, 45 report for the committee on finance, the
January 2025,
January, 2025 monthly rule, 45 report from the joint.
Committee on finance, the subcommittee on revenue and the
committee on health and human relations.
And the June 2025.
And the June 2025 monthly rule, 45 report for the committee
on.
on Finance subcommittee, on Revenue.
These report.
these reports were sent electronically to everyone, and if
there are no questions, can I get a
Motion to approve.
Motion to approve these monthly rule, 45 reports.
So moved by.
So moved by well Alderman. Ervin, and I didn't count you
in.
as Quorum yet. So Alderman Scott makes that motion all
those in favor of the motion signify by saying I I opposed
in the opinion of the chair, the eyes have it and the
motion carries. Umm Al
motion carries um Alderman, Ervin, we will count you and
alderman. Kuden
uh, as part of today's
Uh, as part of today's quorum.
We have.
We have a total of 12 items on the agenda this morning. Um,
the first, 1 item number 1 is the communication.
Transmitting reports of cases.
transmitting reports of cases in which verdicts judgments
or settlements.
or settlements were entered into for the month of June
2020.
that list of payments was sent.
Electronically to everyone. If there are no objections, this
item will be placed on.
item will be placed on file with the clerk.
Item. Number 2.
Item. Number 2, we have 5 proposed orders author.
Item. Number 2, we have 5 proposed orders authorizing The
Corporation Council to enter into and execute settlement
orders in the following.
orders in the following cases.
Case 2A.
Case. 2A is Felicia nulls Bradley.
case 2A is Felicia nulls Bradley versus City of Chicago in
the amount of $400,000, and that case will be
the amount of $400,000 and that case will be presented by
Margaret men Hall Casey.
Margaret men Hall Casey from The Corporation Council. She's
a deputy
she's a deputy Corporation Council. Good morning chair.
Good morning.
On June.
On June 28th of 2022. The plaintiff. Felicia nol?
On June 28th of 2022. The plaintiff. Felicia nols Bradley?
Who is 57 years old at the time?
Who is 57 years old at the time. Tripped and fell on a
sidewalk as a result of.
sidewalk as a result of the Fall. Miss nols Bradley
underwent brain surgery.
underwent brain surgery and was hospitalized for 4 days.
The
the Department of Law recommends settlement in the amount
of 400000 for this matter.
At around 7:5.
At around 7:55, a.m. Miss nols Bradley parked at.
At around 7:55, a.m. Miss nols Bradley parked at 35555,
South, Charles Avenue.
South Charles Avenue. She was on her way to work. She was a
floating supervisor and primarily worked out of a main
facility.
facility located on Persian. She had worked for the
facility located on Persian, she had worked for the company
for about a month and had only been to that location.
for about a month and had only been to that location 1 time
prior to this incident conditions.
time prior to this incident conditions on that day were dry
and clear.
After exiting her car, Miss Niles Bradley stepped onto the
carriage walk rocking from The Carriage walked to the
sidewalk her right foot. Caught on a height.
sidewalk her right foot. Caught on a height deviation
between sidewalk slabs. She tripped forward and hit her
head on a metal grate while
head on a metal grate. While falling to the ground. She was
looking straight ahead.
looking straight ahead and did not notice uneven sidewalk
before she fell.
A coworker Mr. Jones.
A coworker Mr. Jones saw her fall and call 911.
A coworker Mr. Jones saw her fall and called 911 the height
differential between sidewalk slabs was 4.5 to 5 inches.
The.
The coworker Mr. Jones had tripped on the same side.
The coworker Mr. Jones had tripped on the same sidewalk in
2021, but did not notify the city.
2021, but did not notify the city along with Jones
testimony the trial.
testimony. The trial judge ruled that 2 prior calls to um,
that address would be admitted to PRI 311 calls, uh, 2020
broken Street Lamp,
broken Street, Lamp, complaint and a 2022. Abandoned
vehicle call.
vehicle call the judge reasoned that these prior calls
required, the city employee to visit that location and that
the plaintiff would be allowed to argue that this could
have.
have provided notice to the city.
I see that engine.
I see that engineer testify that the deviation was visible,
but city employees responding to other issues in the area.
were not responsible for searching for sidewalk defects. He
also testified that he had previously,
also testified that he had previously recommended repairs
for similar Devi,
for similar deviations. The planes have retained, an expert
who
expert, who opine that the sidewalk condition was
unreasonably Danger.
unreasonably dangerous. He testified that Google photos
dating.
dating back to 2014 show the Devi.
dating back to 2014, show the deviation growing over time.
The plaintiff would use this testimony to argue that the
city should have known about the defect given that it had
been present for 8 years.
Miss nols Bradley was diagnosed with.
Miss nols Bradley was diagnosed with bleeding from vessels
between her skull and scalp.
between her skull and scalp underwent surgery to stop the
bleeding and remain.
bleeding and remain hospitalized for 4 days. She saw out
Outpatient Treatment until August for swollen eye.
Outpatient Treatment until August for swollen. Eye blurry
vision, headaches, and arm pain.
vision, headaches, and arm pain by April of 23, her
headaches had resolved
headaches, had resolved and her arm pain had significantly
reduced
Miss nols Bradley has a 1-inch star on her head.
Miss nols Bradley has a 1-inch star on her head where hair
will no longer grow.
Miss.
Miss nols Bradley's medical bills, total $26
Miss nols Bradley's medical bills total $265,000 and she is
not claiming lost wages.
not claiming lost wages at trial Miss NOS Bradley would
seek damn.
seek damages for pain and suffering. Emotional distress,
loss of normal life disfigurement and medical bills.
loss of normal life disfigurement and medical bills and the
department of raw recommends settlement in the amount of
dollars on this matter.
Thank you, Miss Minden Hall Casey.
Thank you. Miss Minden Hall. Casey, are there any questions
on this case?
Al.
Alderman Lopez.
Good morning.
Good morning, chairman and good morning members of the
committee.
I spoke in.
I spoke in our previously about all of these outstanding
311 cases that are now becoming the new
uh,
settlement industry. How many?
Outstanding.
Outstanding trip. Hazard cases.
Outstanding trip. Hazard cases does 311 have in its system
as of today.
I'm happy to get you that answer, uh, through the chair.
I'm happy to get you that answer uh, through the chair. I
believe it was provided at a couple of months.
believe it was provided at a couple of months ago, but I'll
make sure to get a updated.
make sure to get a updated answer to you through the chair
alderman.
and,
what has the and if you could provide
Since I know we are without a commissioner.
since I know we are without a commissioner in C dot at the
moment,
What?
what is C dot been doing to rectify this or what?
What is C dot been doing to rectify? This or what are we
doing as a law Department?
To address.
to address these concerns, so that we are not
going to,
Going to be inundated with.
25400500000 lawsuits.
25400500000 lawsuits because we are simply unable to get to
these.
these 311 requests in a timely manner.
sure, in terms of, um, risk mitigation
sure, in terms of um risk mitigation when lawsuits are
filed uh
filed, uh, the department of law has a system where C dot
is immediately notified of those lawsuit.
is immediately notified of those lawsuits. Um, so that
repairs can be made on on the sidewalks, I would high and
also I do meet regularly um, with now the acting
also I do meet regularly, um, with now the acting
commissioner, um, as well as, uh, the Deputy Commissioner
who's over, uh, in-house Construction.
who's over? Uh, in-house construction. I I would note that,
um, it
4 40000 is a lot. Any trip and fall lawsuit being presented
to.
to you guys is is too many. Um but I would note
to you guys is is too many um but I would note that my team
regularly tries. Um,
team regularly tries, um these cases in fact, last week I
had a team on trial um who successfully
had a team on trial, um, who successfully, um, defended the
city in trip and fall litigation. Um, however, with this
case, just because
Of the notice evidence that the court.
of the notice evidence that the court allowed in as well as
the um
I wouldn't say graphic but uh certain
I wouldn't say graphic, but, uh, certainly sympathetic
injuries here, that's why. Um, I'm presenting this case to,
uh, the committee on finance.
And what has the total?
And what has the total settlements been paid out that has
not been approved?
not been approved by this committee but our related to the
same subject matter year to date. That's something that I
can get to you through the chair alderman.
Okay.
I know we.
I know we've talked about this before chairman, but I
definitely think.
definitely think that
we are seeing where this is becoming the target for many of
the niche lawyers that focus on suing the city.
and I think a broader conversation,
And I think a broader conversation is needed by this
committee.
committee to address many of these outstanding 311.
committee to address many of these outstanding 31 ones. Um,
I understand that we've seen information but I think there
has to be more holistic.
has to be more holistic approach because this is only going
to grow and it's going to continue to get worse. Uh,
particularly as we know the other settlements are.
Drawing down. We don't need this. Taking it
Drawing down we don't need this. Taking its place. Thank
you.
and I, I just would would note um, Alderman since
been in this role for about a year and a half. This is
in this role for about a year and a half. This is the
second trip and fall litigation. Um,
second trip and fall litigation um, that I have presented
to the committee. However, I do.
to the committee. However, I do understand your concern and
I certainly will provide the requested information through
the chair.
Alderman Vasquez.
Thank you very much, Madam chair. Um, I I really do
appreciate uh, my colleagues questions. I think we
I have similar concern from a different.
I have similar concern from a different angle, I think when
we've got taxpayers paying for services, they kind of
expect sidewalks to be repaire.
expect sidewalks to be repaired in a reasonable amount of
time while also understanding the
time. While also understanding the enormity of the amount
of sidewalks that need to be repaired.
of sidewalks that need to be repaired and the costs
associated with it. We all have our menu program.
associated with it. We all have our menu program and at
best we try to deal with some of this. So it's just not a
fast process, right? And so I I think
My question is, are related to kind of similar.
My question is are related to kind of similar liability
concerns. How many?
if, you know, maybe let's say the last
if you know, maybe let's say the last 10 years and has to
be through the chair as to how many of these, um,
settlements. We've had to do how many of those uh
complaints go to litigation, I think.
not having an understanding of
Not having an understanding of the scale it becomes harder
to understand. Like if this is a, a 1-off situation is it
growing over time? Is it something that's going to cost us
even more as we move forward? So, if we can get that to the
chair, I'd appreciate it.
Um,
How, how are?
How how are all these things tracked? Meaning?
Cases end up being lawsuits cases that we have to settle out
all.
out all related to like injury matter.
so that information,
So that information is tracked through the department of
laws.
laws uh litigation management system. Um so we'll track
cases like like I mentioned the the trial that my team is
on will will track
is on will will track the amount that the plaintiff
requested. Um, and the fact that we were successful, we
tracked the cases that we uh, settle for within my
authority. Um, we tracked the cases that we are successful
on motion for summary. Judgement in the case.
on motion for summary, judgement in the case gets
completely uh pitched out. But all of those things.
completely uh, pitched out. But all of those things are
tracked through the department of laws.
tracked, through the department of laws, internal
litigation management system. Okay? So, so
litigation management system. Okay, so so, um,
so, my internal meaning,
So my internal meaning, there's not a like a public portal
or any access that we would be able to.
or any access that we would be able to see as Council.
Sure. So, by by internal um that means that I'm more than
happy to provide information um through the chair uh but
but certainly uh access to our litigation management.
system, which also may include some things that our work
product is not something that is open.
product is not something that is open to the public. Um, if
there is a concern about uh, the the sharing of
information,
between law and C Dots. So we can,
between law and C dot, so we can do better risk management.
Uh we do have a process where as soon as a sidewalk
complaint comes in or when I mean complaint lawsuit. Um
that information is forwarded to.
To see.
To see that. So they have the opportunity to go out and
inspect.
inspect and see, is this something that needs to be? Um,
addressed, I also have regular communication lines with the
leadership in C dot where. Um, I'm also following up and
saying, okay, this 1 my team has had an opportunity to see
it through litigation. We've seen the photos.
it through litigation. We've seen the photos, we've heard
the testimony. This 1 needs to go.
the testimony, this 1 needs to go be fixed ASAP. Um so if
if you do have a specific questions I'm more than happy to
provide information through the chair. Yeah. And I have the
most confidence in your work. I mean just
most confidence in your work. I mean, just just watching
how you carried yourself and Lead like
it's it's more when I look at it. It's it's how we as
Government.
government have these systems in place, right? So I know.
government have these systems in place, right? So I know I
had called for it as well as my colleague Alderman V.
had called for it as well as my colleague Alderman viez, as
far as having settlement portals to figure out,
far as having settlement portals, to figure out how often
are we settling out? What are the amounts and what are the
different reasons? Just as a matter for us to have a better
understanding of how much we're spending when we're coming
into budget,
into budget every single year. And so um yeah if you could
just send the information, I asked you the chair, I think
that was more my general question.
that was more. My general question is trying to figure out
how we get better at doing this.
Knowing it's going to continue. And as we've all seen,
Knowing it's going to continue. And as we've all seen from,
New stories, lat.
New stories, lately. Our budget ain't going to get any
easier. So thank you very much and thank you chair.
easier. So, thank you very much and thank you chairman.
Thank you Alderman. Alderman laspada.
Chair. I
the case I will be voting. Yes.
The case I will be voting. Yes I I will say in in part to
answer the question raised because it's a number that
committ.
committee staff my committee pulled on Friday. There is
currently roughly 29,000.
currently roughly 29,000 outstanding sidewalk inspection
complaints.
and that's, that's a tough number, because
And that's that's a tough number because undoubtedly a lot
of those are duplicates. When people see a broken sidewalk,
they tend to put it in.
they tend to put it in more than once.
but if even a third of those are unique,
But if even a third of those are unique cases.
and if even half of them,
and if even half of them are waiting on,
Repair to be done. Uh,
That is.
That is that's a huge liability for us to be wrestling
with. And if I understand the call for this,
with. And if I understand the call for this committee to be
wrangling with the the litigious or liability of that, but
folks who want to be a part of the conversation of that.
from a
Mobility. And
mobility and sidewalk perspective. We're actually talking
about that. Uh, next Monday at 1 oclock uh committee
members and non-members
and non-members welcome. Thank you chair, thank you very
much.
Alderman Lopez.
Thank you, chairman. I'm sorry. I just wanted to add just
for all of my colleagues.
Attached with the agenda.
Attached with the agenda for this meeting.
was the
Judgement verdict and settlement report.
judgement verdict and settlement report from the beginning
of the year through May 31st.
And on that.
List by.
List by Department.
All of the various settlement.
all of the various settlements and verdicts that
many of which we did, not,
Many of which we did not vote for are vote on because they
are under the threshold. But, which we paid out
and,
The category fall down.
The category fall down sidewalk.
Repeatedly.
Repeatedly shows up.
50.
50,075,060,000 over and over.
50,075,060,000 over and over and over again.
So clearly
this is an issue that is not going.
this is an issue that is not going away.
The department is not listening.
And that we need to take more serious.
And that we need to take more seriously.
because even just reviewing this to my
Because even just reviewing this to my colleagues question
about, where can we find this out?
it's right here in black and white, and as I'm looking at
it now, uh, for all of for this discussion,
to the Chairman's point about,
To the Chairman's point about 29,000.
If half of those.
Result in a lawsuit.
That's on an average of dollars of settlement. We're
looking at 725.
looking at 725 million
In potential settlement.
In potential settlement payouts, simply because of
sidewalk.
trip hazards.
we can't forget that, we
We can't forget that. We've also been sued for tree limbs.
That.
That have fallen or broken and other Poe.
That have fallen or broken and other potholes bike lane
discrepancies.
These lawsuits are going to continue.
These lawsuits are going to continue to be the new.
Target.
Target for lawyers to take advantage of us.
Target for lawyers to take advantage of us and our
taxpayers, if we don't get a hold of this soon. So,
taxpayers, if we don't get a hold of this soon. So just
throwing that out there. Check your emails, it's all there.
throwing that out there. Check your emails. It's all there
and keep that in mind as we move forward.
and keep that in mind, as we move forward, thank you.
Thank you all. Thank you.
Thank you all. Thank you Alderman Lopez.
Uh, alderman.
Uh, Alderman. Vagus
Thank you. Madam chair. I just had a point.
Thank you, madam chair. I just had a point of information
for my colleague from the 15th Ward. So in the capital
Bond,
Uh, C dot has budgeted appro.
Uh, C dot has budgeted approximately anywhere between 5 to
6 million for side.
6 million for sidewalks and based on the number that was
provided for my colleague from the First Ward 29,000.
provided for my colleague from the First Ward, 29,000 * 500
bucks a square because that's how much approximately is.
bucks a square, because that's how much approximately is to
install. The square comes out to about 14 million.
install. The square comes out to about 14 million which
means that we're underfunding just the just the ISS.
means that we're underfunding just the just the issue of uh
what's being reported even
what's being reported, even if it's half
We're still below. Uh, what?
We're still below. Uh, what C? That's recommending. So I
would urge my colleagues that when we do the capitol
hearings to, to require these departments to
hearings to, to require these departments, to really give
us a, a, a true cost of what the
a a, a true cost of what the assets are in repairing them
so that way we can put forward,
them so that way we can put forward, uh, a, a bond, a
capital bond that
that really addresses the the bread and butter issues that
butter issues that uh, the everyday Chicago is calling in
for
Thank you, I believe.
Thank you, I believe your committee is calling for Capital
hearings this year.
Okay.
Alderman spaz.
chair just just want to say, uh,
kind of based on what
Kind of based on what Alderman viega said, something. You
know, sometimes it takes money to save money.
know, sometimes it takes money to save money, so that's
something where we, I know, I know, we're, we're broke, but
something where we, I know, I know, we're we're broke, but
that might be something we want to look at to get all this
stuff fixed. I know many of us have many problems with trip
hazards in the ward. And, you know, they haven't been
looked at yet or they know they're there and they don't get
fixed and I'm not blaming anybody, they just don't have.
fixed and I'm not blaming anybody. They just don't have the
Manpower, or the, or the finances to do it, but it might be
something. We want to get out ahead of the, I think.
something. We want to get out ahead of the, I think in, in
the long run, we'll say a ton of money, so that's it. Thank
you.
you, madam chair, thank you all Miss pisado. I believe
you, madam chair. Thank you all Miss pisado. I believe all
of us, uh, have these challenges.
of us uh, have these challenges in our Ward and uh,
Would do anything. We could to increase.
would do anything, we could to increase um, the response
from C Dot and also the money for it Alderman. Reilly
from C Dot and also the money for it, Alderman, Reilly you
raised your hand.
Yes, Madam chair. I just had uh, 1 question, would it be
possible through the chair to get?
a, um,
Total dollar amount for.
total dollar amount for settlements, paid out on trip and
falls for 2024 and year to date 20.
falls for 2024 and year to date 2025, right? I thought that
was what uh, all the
was what uh all had asked for
yes.
Yes, and I second that request. Okay, thank you.
Can I get?
Can I get approval for this item? So moved by.
Can I get approval for this item? So moved by Vice chair
Hanway all those in favor signify by saying I I opposed and
the opinion of the
and the opinion of the chair, the eyes have it and we'll
move on to our next.
move on to our next case which is 2b.
um, this dup pass recommendation will be reported out at
the city council meeting on Wednesday. Um, the next case is
Gilbert Mendes versus city of Chicago.
Gilbert Mendes versus City of Chicago, uh, in the amount of
2.5 million.
2.5 million and this will be reported out by Carolyn Franz
fronek.
Carolyn good morning. Good morning.
Carolyn, good morning. Good morning. This is a federal case
which concerns the X keys of execution of a search warrant
at plaintiff.
at plaintiffs residents in November of 2017. The plaintiffs
claimed that Chicago police officers, wrongfully executed a
search warrant at their home and pointed guns at innocent
children. The plaintiffs are Hester and Gilbert bendes and
their 2 children. Peter and Jack the case settled in
principle mid-trial. After the judge, presiding over the
case on expectedly.
case on expectedly convened. A settlement conference judge
Valderrama Rec
Valderrama recommended a settlement of 2.9 Million but the
trial team negotiated that down to 2.5 million.
trial team negotiated that down to 2.5 million plaintiffs
brought a 12-count complaint.
brought a 12-count complaint and count 1 the minor
plaintiffs, bring a monell claim in which they
plaintiffs. Bring a monell claim in which they alleged that
defendant officers used excessive force by pointing guns at
them, during the Warren's execution. And
them during the Warren's execution. And that several
alleged City policies caused the officers to do.
alleged City policies caused the officers to do so in Count
2 plain of alleged, that defendants procured and executed
an invalid search warrant
executed an invalid search warrant and count, 3 plane of
alleged, that defendants, supervisory
alleged, that defendants supervisory officers should be
lied.
Able for their respective supervision.
able for their respective supervision of the procurement of
the search warrant and count for planes to allege the
officers failed to retreat after they.
officers failed to retreat after they were on, notice that
they were searching the wrong apartment. And count 5 was a
false arrest claim, count 6.
false arrest claim count 6, through 10, consisted of State,
claims for false arrest and false.
claims for false arrest and false imprisonment based on
their detention during the warrants EXE.
their detention during the warrants execution. Assault
battery. Based on Gilbert Mendes's handcuffing intentional
infliction of emotional
intentional, infliction of emotional distress and trespass,
count 11, and 12.
12 consisted of responding at Superior and a dacian
12 consisted of responding at Superior, and a dacian claims
against the city of Chicago, the case proceeded,
against the city of Chicago. The case proceeded through a
lengthy and contentious Discovery period after which all
parties, filed, motions for summary judgement and motions.
To reconsider the Court's rulings on summary judgement. By
the time opening statements were delivered at trial
delivered at trial all claims against the defendant
officers had been dismissed.
officers had been dismissed and the case was solely
proceeding to trial on the monell.
proceeding to trial on the monell and state law claims
against the city of Chicago.
In the monell, pla claim plaintiffs Moines.
in the monell claim, plaintiffs monell claim hinges, on the
allegation that 2 officers, the 2 officers without body
worn camera video
worn. Camera, video pointed guns at the minor children's
heads and chests.
heads and chests at close range. Even though they were
fully compliant and posed 0 threat specifically, they
claimed that 1 officer pointed his rifle at them for
several seconds and then another pointed his handgun at
them for a few seconds or about a minute. They further
claimed that the officer continued to aim, his handgun at
them even after they complied with his order to get down on
the ground. The only officer with a rifle
As seen in.
as seen in the other body officers body warn camera videos
with his rifle out, but is never shown to have directed the
gun at any of the plaintiffs.
gun at any of the plaintiffs and his handgun was holstered
for the entire incident. Likewise, the Second Officer is
not shown on other officers, body worn, camera videos to
have pointed his gun.
have pointed his gun at any of the plaintiffs or even to
have his gun outside of the holster. None of the body worn
camera footage.
camera footage, therefore shows any officer deliberately
aiming their guns at any of the plaintiffs analysis of all
the available.
the available body worn, camera, video demonstrates, that
there were only seconds.
there were only seconds when these 2 officers are not
visible on someone's body.
visible on someone's body cam, it was defendant's position
at trial but those small time periods, make it essentially
impossible that
impossible, that either officer pointed a gun at the plane
of says, they described while plaintiffs argue that because
there are those gaps gun pointing by these 2 is possible.
plaintiffs monell claim alleges that, the city had
widespread practice of using excessive force against during
the presence of minors. A widespread practice of failing to
investigate and discipline the use of excessive force
against.
against during the presence of minors, a failure to train.
against during the presence of minors, a failure to train a
policy to avoid the use of excessive force.
policy to avoid the use of excessive force against earn,
the presence of minors, and the code of Sil.
the presence of minors and the Code of Silence, the parties
agreed that the relevant time period. For this claim was
from January 1st of 2012 to December 31st of 2017. The
parties elicited. A lot of evidence in relation to this
claim focusing.
claim focusing on the use of force policy and training as
well as the city's reform efforts the city trains officers.
and the use of force based
On its official policy. This
on its official policy, this training instructs officers to
evaluate the totality of the circumstances which includes
age size.
age size and strength of the person, the officer is
interacting with.
interacting with more relevantly here. Police officers are
trained to be aware of children and to make it a priority
to handle them. Tenderly, and with extra care when
executing search warrants officers are instructed, orally
throughout their search, warrant training to be aware and
sensitive to the Presidents of children and to try to
always create a common environment. Once the premises is
cleared during the
cleared During the monell period. The city also trained
officers to use the sensitive approach to policing children
to avoid harming their health and development plaintiffs
claimed that this training was not enough and further
claimed that the findings of the do.
claimed that the findings of the doj and patf reports are
evidence that the training and policies are inadequate the
city.
city disputed that, and further argued, that plaintiffs
cannot prove, that
cannot prove that the city was deliberately indifferent to
any of these issues. The evidence shows that the city has
been engaged in various efforts to improve.
Policing and police account of.
Policing and police account appear accountability During
the monell period. The city
the monell period, the city revised its use of force policy
in 2017.
policy in 2017 in the wake of doj report, the policy
revision included. A specific instruction to not use tasers
pepper spray and canines on children or elderly people.
pepper spray and canines on children or elderly people as
recommended by the doj report the city.
recommended by the doj report. The city also ended IRA and
created Copa to address many.
created Copa to address many of the practices raised in the
patf report.
patf report among the city's objectives in creating Copa,
which are further improve accountability.
And Independence. Additionally,
And Independence. Additionally the city created a specific
full-time position within its office of Inspector General
to focus on both potential issues.
to focus on both potential issues, with this police
department and its police accountability.
department and its police accountability framework, the
deputy Inspector General for public.
deputy Inspector General for Public Safety is tasked not
with just investigating individual.
with just investigating individual cases, but also looking
for potential systemic.
for potential. Systemic problems. Moreover, the city
expanded its use.
expanded its use of body warn camera among its Patrol
officers from the pilot.
officers from the pilot program to wide use in order to
have a documented record of their activities. Lastly, the
city council issued multiple resolutions of orders,
highlighting an intent.
highlighting an intent to engage in the reform process
sparked by the pat.
sparked by the patf and doj reports and expressed
commitment.
commitment to proposed reforms and entering into a consent
decree with the state of Illinois.
Plaintiff's, claim long-term physical D, psychological
damages.
damages as a result of this short interaction. During the
execution of the search warrant their expert witness. Oh
Pine that both minor plaintiffs suffer from symptoms of
post-traumatic stress.
post-traumatic stress disorder and will require costly
psychiatric.
psychiatric care for the foreseeable future. Defendants can
test this and their own expert opinion that a 1-time
interaction of this kind that occurred here is highly
unlikely to cause any long-term psychological damage
defendants expert or pine that. While the interaction was
certainly scary both.
certainly scary, both minor plaintiffs appear to be doing
fine. However,
fine. However retrial this matter would impose a
significant burden on the city costing over a month of
attorney time for several level, senior level attorneys,
and over.
and over a hundred thousand dollars in additional.
Figures and costs for outside counsel and expert.
Figures and costs for outside counsel and experts. Moreover,
it is unlikely to have similar jury could.
it is unlikely to have similar jury, could be chosen again
and the plaintiffs are now aware of the defense.
and the plaintiffs are now aware of the defense trial
strategy which will likely cause them to change aspects of
their case to make a more favorable presentation. Last but
not least, it may be difficult for any jury.
not least, it may be difficult for any jury to send a child
plaintiffs away with no money given that.
plaintiffs away with no money given that is Undisputed that
the officers did execute a lawful warrant albeit in the
wrong residence, the potential.
wrong residence. The potential fee award alone for
plaintiffs council could be over 3 million dollars. If we
were to try this case again and lose it at at trial, the
Law Department therefore recommends, this 2.5 million
dollar settlement as a cost savings to the city.
uh, thank you Carolyn before we go to
Uh, thank you Carolyn before we go to questions. I want to
recognize Alderman Hall.
recognize Alderman Hall and Rodriguez. Are you on?
Are you here?
Alderman.
Alderman Hall.
President, thank you so much.
President, thank you so much and Alderman Mosley.
All right. Uh, can I get uh alderman?
All right. Uh, can I get, uh, Alderman Lee has requested?
Uh,
Remote participation by rule.
59, can I get a motion to allow alderman?
59, can I get a motion to allow Alderman Lee to
participate?
So moved by.
So, moved by Alderman Lopez.
Alderman, Lee, all those in favor.
Alderman Lee all those in favor. Signify by saying I, I
Alderman Lee
Alderman. Lee.
Okay. Do we have any questions on on this?
Okay, do we have any questions on on this matter?
Alderman spas.
Thank you, madam chair. Um,
Caroline. Thanks for the report. There's a couple quick
questions. I know we don't have a giant, any choice in this
and I would have thought we'd have got this a long time
ago.
ago, but pointed a gun for a few seconds or a minute. Is
what you said? I believe. I mean, it's kind of a big
difference so and I know you said the body cam was missing
for a few seconds. So to me it's a big difference, not that
it's going to change my opinion on this but
it's going to change my opinion on this, but I mean was it
was a 5 seconds or was it?
was a 5 seconds or was it 60 seconds? Do we know? So this
is based on the plaintiff's testimony and so that the
language I provided you was um, from the plaintiffs
themselves who alleged the incident. So it was either
between a few seconds.
between a few seconds or a minute, they were not uh clear.
between a few seconds or a minute, they were not uh, clear.
Hey that that's not too solid of
hey, that that's not too solid of proof but once again I
mean
I mean.
I mean kids have shot people before, I'm not saying that was
the case. I'm not saying they were a threat or anything. I
can't imagine being in a situation like that I was never a
police officer and I wasn't some intense situations as a
fireman but going into a situation you think they're the
bad guys and the kids are there. It's a terrible situation
but I will be supporting it but I'm just a little
But I will be supporting it. But I'm just a little little
mixed up on a few seconds or a minute to me, it's a pretty
pretty.
pretty, big difference, but thanks for the report and thank
you, madam chair.
thank you. Madam chair. Thank you, Alderman. Spazo
Alderman, Lopez.
Thank you again, chair.
Thank you again, chairman and members of the committee.
um,
when we settled,
When we settled, with Angie at Young, we settled for 2.9
Million.
Million dollars for a wrongful raid.
That involved, 1 individual.
Here.
Here, we have a wrongful raid that involved 2 parents.
Here, we have a wrongful raid that involved 2 parents and 2
children.
Um, from McKinley Park.
Um, from McKinley Park and we're settling for 2 and a half.
What is the
half. What is the basis for the difference in settlement?
size where 4 people impacted?
size where 4 people impacted are getting less than 1 person
impacted?
Um, because that's what they accepted, I can't.
Um, because that's what they accepted. I can't explain why
they accepted it. I don't really know that they did and I
was not involved in the negotiations regarding Anjanette.
Young
young for the 2.9 number. So I don't know what that was
based on.
Okay.
Thank you.
Thank you, chairman, thank you. Uh, can I get a motion?
Thank you, chairman. Thank you. Uh can I get a motion on
this? So moved by Alderman? Oh.
this? So, moved by Alderman, OSHA, recommending do pass all
those in favor sign.
those in favor. Signify by saying, I
I oppose.
I oppose and the opinion of the chair, the eyes have it and
the due pass.
the do pass, recommendation will be reported out at the
next meeting.
uh, our third case this morning is Marley
Uh, our third case this morning is Marley Aguilar versus
Eric Dior.
Eric Duron in the amount of 3 million dollars in Carolyn
fronek will also give this report Carolyn.
Thank you. Um, on October 9th of 2018.
Thank you. Um, on October 9th of 2018, Matthew Aguilar was
run over by a Chicago.
run over by a Chicago police vehicle while running from the
vehicle on foot the
vehicle on foot. The vehicle was driven by Chicago police
officer, Eric Don,
officer. Eric Don Aguilar is injuries were severe and on
February 13th of 2020, Mr. Aguilar, our sister was
appointed as a plenary garden of Aguilar and his estate
Aguilar, sister is suing officer
Aguilar. Sister is suing officer Don and the City of
Chicago on his behalf plaint,
Chicago on his behalf plaintiff brings claims for unlawful
seizure due process.
seizure. Due process malicious prosecution conspiracy to
maliciously Pro.
maliciously, prosecute battery, assaults negligence.
maliciously, prosecute battery, assaults negligence willful
and want conduct and indemnification.
and want conduct and indemnification, this matters being
defended by attorneys in the federal civil.
defended by attorneys in the federal civil rights,
litigation division, the Department of Law recommends, that
the city authorize a settlement of all claims for 3
million.
the city authorize a settlement of all claims for 3 million
dollars on October 9th of 2018,
dollars, on October 9th of 2018, Don and his partner were
working on a tactical team. When they observed 2, Men walk
into an alley near 47.
into an alley near 47th in Washington.
Duron turned into the alley and
Duron. Turned into the alley and saw Aguilar standing with
his back to the officers AG.
his back to the officers Aguilar turns, so that he was now
facing the officers. AG
facing the officers, Aguilar's hands were in front of his
body, but they were concealed in either.
body, but they were concealed in either his pants or
sweatshirt Aguilar walked toward the driver.
sweatshirt Aguilar walked toward the driver's side of the
squad car and as he approached the driver's side door began
to run duron's partner exited the vehicle to chase Aguilar
on foot Don Reaver
on foot Don reversed his vehicle and also became to chase
Aguilar and his vehicle during the attempt to stop Aguilar.
Don saw Aguilar running near the park that stands between
the street and
the street. And sidewalk Don was finishing his turn when he
drove over.
he drove over a steel construction, plate to run, looked
to,
his left because he did not know what he had ran over and
lost.
lost sight of Aguilar, unbeknownst to Don Aguilar.
lost sight of Aguilar. Unbeknownst to Don, Aguilar had
entered, the ronway and was running in the street, Don.
heard the impact on the passenger side of the vehicle and
fell.
felt 2 bumps. The first 1 is front tires. Ran over Aguilar
and the second 1 is back tires. Ran over Aguilar.
and the second 1 is back tires. Ran over Aguilar Duran
immediately, stopped got out and ran to the back.
Of the car. He saw Aguilar laying face down.
Of the car. He saw Aguilar laying face down on the pavement
and a prone position he approached.
and a prone position. He approached Atul and grabbed 1 of
his hands to handcuff him and he was handcuffing him. He
realized the severity of his injuries and called.
realized the severity of his injuries and called for an
ambulance, the ambulance arrived on scene. And
ambulance, the ambulance arrived on scene, and he was
transported to the hospital at the hospital. He was placed
into a medically induced coma for nearly 7 days.
into a medically induced coma for nearly 7 days ago, hours,
physical injuries are extensive. He sustained a broken jaw
2, fractured.
2, fractured eye sockets multiple other fractures in his
face jaw and
face, jaw and skull.
Broken teeth. Lost teeth a separated.
Broken teeth. Lost teeth. A separated lip loss of hearing in
1 ear a crushed.
1 ear, a crushed tear duct, a broken elbow, a broken leg
and lacerations on.
and lacerations on his hands knees and rib cage.
He was fed through a feeding.
He was fed through a feeding tube for 2 months and an
undercon multiple surgeries.
undercon multiple surgeries he has 48 screws and 14 plates
inserted into his head and face, he has scars under his
eyes and across his head because the doctors needed to pull
his face down to put the plates in his head and face.
The plaintiff's neuros.
the plaintiff's Neuroscience testify that Aguilar is
permanently disabled, as a result of this incident and will
be incapable of caring for him.
be incapable of caring for himself in the future.
Defendants Neuroscience, disagreed.
Defendants Neuroscience, disagreed, with that opinion.
Plaintiff is claiming 1.5.
Plaintiff is claiming 1.5 million and past and future
medical expenses.
medical expenses 4 million dollars for pain and suffering
and 4.6.
and 4.6 million in interference with the normal life. If
praying, if sorry, if plaintiff prevailed on his section
1983,
1983 claim he will be entitled to reasonable attorney's
fees.
fees and costs, which could be as high as $1 million
through.
through trial plaintiff has agreed to settle all of his
plans. For 3 million subject, to city council approval,
taking all of the risks into consideration, the defense
team believes.
team believes that settlement of 3 million is the best way
to avoid the risks.
to avoid the risks associated with trial and limit
Financial exposure to the city.
Uh, thank you, Carolyn.
Uh thank you Carolyn. Uh any uh, Vice chair con.
Uh, thank you Carolyn, uh, any uh, Vice chair Conway.
In the chase.
in the chase, did the police officers recover, any
contraband
they recovered marijuana from Mr. Aguilar himself.
himself. And then in somewhere, along the Route, they
recover.
recovered a gun.
Okay.
Um,
Alderman Lopez.
again, thank you chairman and
Again, thank you, chairman and members of the committee.
I'm very familiar with this.
I'm very familiar with this location as it was, where my
Brighton Park Ward office formerly was
I'm very familiar with this alley because of where the
g********** used to sell drug.
g********** used to sell drugs.
Anthro gang signs.
Anthrop gang signs and try to make use of avoiding Capt.
Anthrop gang signs and try to make use of avoiding capture
particularly on 47th Street when the water department.
particularly on 47th Street, when the water department,
shut the street down putting steel plates everywhere
because they were rebuilding the sewers Jen. I know,
because they were rebuilding, the sewers. Jen. I know the
terror that individuals cause and though he may not have
been a known gang banger.
been a known gang banger, the location where this
individual was coming from is a known troubled.
building in the
Building in the community.
and,
while all of that is gruesome, what transpired and
While all of that is gruesome, what transpired and
unfortunate?
Had the individual.
Had the individual simply complied and not ran from police.
had the individual simply complied and not ran from police,
none of this would have happened if the event
none of this would have happened. If the event individual
had not been out hiding in corners.
had not been out hiding in Corners, presumably trying to
sell drugs, this would not have been happening. This would
not have happened in the Brighton Park Community.
I know individuals will vote how they wish, but I for 1 as
someone who used to represent that area will not be able to
vote in support of this settlement. I cannot cannot
continue to give money to bad individuals who then play the
victim for the stupid.
victim for the stupid games that they play in our
neighborhoods. Thank you Cherry.
Uh thank you. Uh Carolyn. How old was this?
Uh, thank you. Uh, Carolyn. How old was this victim and did
this victim have any?
this victim have any prior criminal history? He was 20 and
he did not have any criminal history.
Any other questions?
Can I get approval for this?
Can I get approval for this matter? Is there a motion?
So moved by Alderman, Ervin. All those in favor. Signify by
saying I I opposed
Excuse me.
Okay. Um, want to
Call. We'll call the role on this 1.
Vice chair Co, um, Vice chair Conway.
Alder.
Alderman laspata.
Alderman hop.
Alderman Hopkins.
Alderman.
Alderman Hall.
Yay.
What, what do you say?
What did you?
Could you repeat your vote? I didn't hear you.
Alderman Hall.
Alderman Mitchell.
Alderman Harris.
I,
Alderman, bill.
Alderman. Lee.
Alderman Ramirez.
Alderman Quinn.
Alderman Lopez.
Alderman Moore.
Alderman. Curtis Alderman. OSHA.
Alderman Taylor. Yes.
Alderman Mosley.
Yes.
Alderman. Roger
Alderman Rodriguez.
And I see you have joined us.
And I see you have joined us in person. We'll count you
towards quorum.
I mean I mean yes Madam chair, I'm sorry. This is
almond, how I was
Technical issue.
What is your vote, Alderman Hall? Yay. Yes, thank you
Alderman Scott.
Alderman, CEO Lope.
Alderman, CEO Lopez.
Alderman brunette.
Alderman. Talia Farrell.
Alderman, Cardona.
No.
Alderman wag is back.
Alderman, Rodriguez, Sanchez.
Alderman Rodriguez, Sanchez. I
Alderman Quezada.
Alderman. Viegas.
Alderman mitts.
Alderman spaz.
Alderman Vasquez.
Alderman. Reilly
Alderman, kson.
Alderman. Martin.
Alderman Silverstein.
No.
Chair.
Chair Dow votes. Yes.
We have the motion pass.
We have the motion passes 18, yeses and 11.
We have the motion passes 18, yeses, and 11 NOS.
Thank you, Miss fronek, and we'll report.
Thank you, Miss fronek and we'll report the this out at the
next city council meeting.
Item number.
Item. Number 3D. Jackie Wilson versus John.
Item. Number 3D, Jackie Wilson versus John Burge, at all,
in the amount of 12.
In the amount of 12.7 million.
This.
This report will be given by Jessica Felker. Good morning,
Jessica. Good morning chair. Thank you.
Plaintiff here. Jackie Wilson was convicted for the tragic.
February 9th 1982, murders of Chicago.
February 9th 1982, murders of Chicago, police officers,
William fhe and Richard obr
William fhe, and Richard O'Brien on a theory of
accountability.
Officers.
Officers fee and O'Brien were shot by Andrew Wilson.
Officers. Fee and O'Brien were shot by Andrew Wilson
plaintiff. Jackie Wilson's, brother, during
plaintiff, Jackie Wilson's. Brother. During a traffic, stop
at the 8100 Block of South Morgan.
The officers had stopped the car.
The officers had stopped the car that Jackie was driving
and Andrew was the passenger.
and Andrew was the passenger Jackie pulled over at a point
both.
Both officers were at the car and both Andrew and Jackie
got out. Andrew was being arrested.
got out. Andrew, was being arrested. Officer fee began to
handcuff. Andrew. When Andrew
handcuff Andrew. When Andrew took officer fav fee service,
revolver and shot and killed both officers
There is no question Andrew Wilson.
There is no question. Andrew Wilson. Murdered officer fee
and O'Brien.
and O'Brien and that he alone. Shot them.
He?
He remained, convicted of those murders up until his death.
The city, however, has acknowledged that Andrew Wilson.
the city, however, has acknowledged that Andrew Wilson
confessed after he was physically abused by Jon Burge.
Burgess abuse of Andrew Wilson was what
Burgess abuse of Andrew Wilson. Was what ultimately led to
Burgess termination in 1993.
Jackie Wilson the plaintiff here. Who did not shoot the
officers was prosecuted under theory of accountability. The
state's theory was that the brothers had a plan to break a
man named Edgar, hope out of prison.
out of
Out of excuse me, out of police custody at the hospital.
Hope had F fatally shot. A police officer.
Hope had F, fatally shot. A police officer James Doyle on a
CTA bus, a few days.
CTA bus a few days earlier and suffered a bullet wound and
was taken to the hospital.
was taken to the hospital for treatment while he was in
custody.
whether they were on their way to execute this plan,
Whether they were on their way to execute this plan, when
stopped by the officers is disputed and Jack.
stopped by the officers is disputed and Jackie's. Guilt
turns on this issue for Jackie to be guilty of the murders
under a theory of accountability, the state needed to show
that Jackie, uh, that the
that Jackie uh that the shooting was committed when Jackie
was carrying out that scheme with
Jackie was carrying out that scheme with his brother, his
guilt. Therefore, hinges on what they were doing,
guilt. Therefore, hinges on what they were doing. And what
Jackie knew when they stopped
Investigation, led to several Witness.
Investigation, led to several witnesses who gave statements
about the plan to free hope.
about the plan to free, hope and collectively. They
provided information that the brothers were on their way to
free, hope after Burg.
free, hope after burglarizing a house, hoping to find a
weapon.
Jackie Wilson claims that, those witnesses will coerced.
Jackie Wilson claims that, those witnesses will coerced both
psychologically or physically.
psychologically or physically into making false statements
to implicate him.
to implicate him, 2 of those Witnesses, Anthony Williams
and Donald.
and Donald White have received reparations from the city
for presenting credible Flames, they were tortured in the
amount of a hundred thousand dollars each
After questioning, both Andrew and Jackie.
after questioning both Andrew and Jackie confessed to the
crime, however, in their 19,
crime, however, in their 1983 criminal trial, they both
claimed, they were viewed.
claimed, they were viewed during the interrogation and
tried to get their confessions suppress.
Both.
both Andrew and Jackie were tried to gather and convict
Both Andrew and Jackie were tried to gather and convicted,
but both had their convictions overturned on appeal.
Andrew's conviction was thrown out after.
Andrew's conviction was thrown out after the Illinois.
Supreme Court found Andrews, confession, should
Supreme Court found Andrews. Confession should have been
found involuntary based on the EV
found involuntary based on the evidence of abuse and
remanded for a new trial? Andrew Wilson was again, found
guilty of both murders, but
guilty of both murders but his confession was not used as
evidence.
Jackie's 1983 conviction was over.
Jackie's 1983. Conviction was overturned for different
reasons. The Appellate Court.
reasons. The Appellate Court found that his trial should
have been soldered from his brothers.
have been soldered from his brothers in 1989. He was
retried and found guilty of Officer O'Brien's. Murder
retried and found guilty of Officer O'Brien's, murder a new
witness at that trial was William.
witness at that trial was William Coleman. He was a jail
house informant who said that? Jackie.
house informant who said that? Jackie and Andrew planned to
free, hope, and kill a witness.
free, hope and kill a witness of the shooting of the
officers.
on June 22nd, 2018, Jackie
On June 22nd 2018 Jackie's. Second conviction was overturned
after he had renewed his allegations of abuse, a judge
determined that Jackie's confession was in fact, the
product of abuse and ordered a new trial without the
confession. The
confession, the officer of special prosecutor decided to
retry Jackie in a third trial that took place in the fall
of 2020 on October 1st.
of 2020 on October 1st 2020. However, the special
prosecutor
halted the trial and dismissed the charges
ASA. Nicholas tateno was the prosecutor for Jackie.
ASA. Nicholas tateno was the prosecutor for Jackie's.
Second trial. The special prosecutor had asked to introduce
the previous 1989 testimony of the jailhouse informant
Coleman believing Coleman.
Coleman believing Coleman was deceased and could not
testify live Jack.
testify live. Jackie's have turn attorneys objected but
Coleman's.
Coleman's testimony was admitted due to the fact that he
was supposedly deceased and unavailable Coleman. However,
was supposedly deceased and unavailable Coleman however was
not dead, which was revealed when Asa tert
was not dead, which was revealed when ASA trenco testified
at the 2020 trial.
the 2020. Trial ASA trenco had just days earlier
communicated.
communicated by email with Coleman. He further testified
that he left the state's attorney for Private Practice
about a decade. Uh starting in
about a decade. Uh, starting in about, uh, excuse me for
about a decade.
about a decade starting in 1991 and became friends with
Coleman. He recounted Coleman playing pay.
Coleman. He recounted Coleman playing paying his expenses
to fly to England to stand.
to fly to England to stand as Godfather to Coleman's
daughter in 1992.
daughter in 1992, it was immediately upon hearing this.
Testimony. That the process special prosecutor dismissed?
The
the charges against Jackie.
after the,
After the charges were dismissed against Jackie Wilson, he
filed.
filed for certificate of Innocence, that was granted in the
judge's opinion. He stated that Andrew loan murdered the 2
officers and that Jackie presented powerful.
officers and that Jackie presented powerful uncontested and
objective evidence that established
and objective evidence that established the events were not
part of a scheme to free. Edgar hope.
not part of a scheme to free Edgar. Hope the court found
Coleman to be untruthful.
Coleman to be untruthful, describing a Litany of evidence
that he was a liar. And a
that he was a liar and a con man, the court found
insufficient evidence.
insufficient evidence to show that Jackie and Andrew were
actually on their way to the hospital.
actually on their way to the hospital when they were pulled
over. It was noted that the brothers were driving South and
yet the hospital was 8 miles north from where the traffic
stop occurred the court.
stop occurred, the court concluded that the brothers were
most likely traveling to their family home on South May. It
was also noted that the brothers were not in disguises but
regular clothes and that their that there was testimony
from a witness who said Jackie looked shocked and
from a witness who said, Jackie looked shocked and did not
move when the shirt shooting occurred.
There are substantial risk of a large verdict for Jackie.
Wilson. If this case goes to trial, the county has already
settled this matter for 17 million dollars.
settled. This matter for 17 million dollars, the city's
settlement would be significantly less at 12.7.
Jackie Wilson.
Jackie Wilson will seek to recover for the 36 years of
detention.
detention based on his claim of wrongful conviction. He
could ask for over a hundred million dollars in Damages at
the trial.
Wilson will rely on a certificate.
Wilson will rely on a certificate of Innocence to establish
that his convictions were wrongful and the
that his convictions were wrongful, and the result of
police misconduct as to his claims.
misconduct. As to his claims of physical abuse, Wilson will
focus heavily on the involvement.
Wilson will focus heavily on the involvement of John Burge
and his the history of allegations against him.
Burge was terminated in 1993 and in 2010.
Burge was terminated in 1993. And in 2010 Burge was
convicted of federal perjury and obstruction of justice
charges relating to his responses denying.
charges relating to his responses denying allegations of
abuse in a previous Federal lawsuit.
All but 1. Detective involved in this.
All but 1, detective involved in this investigation is
deceased taking an account. The
deceased taking an account, the risk of this litigation
including the testimony, that will be introduced about
Burge including the physical.
Burge, including the physical abuse of Andrew Wilson in the
lack of defendants to testify a trial, the Law Department
Rec,
Department recommends, a total settlement of 12.7 million
to avoid significant financial exposure.
Thank you.
Thank you, Jessica. We'll start out with questions with
Vice.
Vice chair Conway. Uh, Madam chairwoman. I'm actually
seeking to recuse myself on a rule, uh, rule 14.
seeking to recuse myself on a rule, uh, rule 14 here. I did
work with Asa. Nick tenko for
work with Asa. Nick trenco for 3 to 4 years in the in the
public corruption. Financial crimes, unit of the State's
Attorney's office on, we work.
Attorney's office on. We worked together on many cases,
including the, uh, the Burr.
cases, including the, uh, the Buro. Uh, Cemetery desecrate.
Case among many others. Um obviously the actions here.
Case among many others. Um, obviously the actions here are
far predate my time at the State's Attorney's Office. In
fact, I was in grade school when they all occurred, but out
of an abundance of caution looking to
of an abundance of caution, looking to recuse myself in a
rule 14. Thank you. So noted
Alderman spaz.
You madam chair.
and Alderman, Curtis, we will count you towards quorum
Alderman spaz.
Alderman, spyzie. So this is obviously a tough 1. Um,
anytime you mentioned Birds guava or Watts, um,
anytime you mentioned Birds guava or Watts. Um so he's a
scary thing but just
scary thing. But just my question is, obviously the brother
says he didn't know anything about this.
um,
Um, do we know what kind of relationship? The brothers had
that they lived together.
that they lived together where they buddies where they
estranged from each other.
estranged from each other, and just happened to bump into
each other and shoot a cop. I mean, what was, what was the
deal?
Um,
um I believe uh I don't know how close they were, but
um, I believe uh, I don't know how close they were, but
they were clearly driving in a car together and spend
were clearly driving in a car together and spending time
together.
And and and, and they're both.
And and, and and they're both known gang members.
I don't know.
I don't know that they were doing gang bammers.
but,
Bottom line is he said he didn't know his brother.
Bottom line is, he said, he didn't know, his brother was
going to shoot.
Correct.
Thank you. Thank you. Madam chair. Thank you alderman,
pisado.
Any other questions on this matter?
So moved by Alderman, bill.
Do pass all those in.
Do pass all those in favor. Signify by saying I I
do pass all those in favor signify by saying I I opposed
uh,
Uh, Alderman Lopez any other NOS?
Al.
Alderman Scott.
And Alderman, Hopkins.
Okay, the dup pass recommendation will report it out with
the exception of alderman, Lopez Scott and Hopkins at
Wednesday's meeting. Thank you very much Jessica.
Wednesday's meeting. Thank you very much, Jessica, we'll
move on to
the next 1, the next cage which is um,
The next 1, the next cage which is um, Roberto Almodovar.
The next 1, the next cage, which is, um, Roberto Almo dovar
versus Ronaldo guava. Uh, this is a case that for 17
million dollars, also, to be report,
million dollars. Also to be reported out by Jessica fala,
Jessica. Yep. Thank you chair. The department of
Jessica. Yep. Thank you chair. The Department of Law
recommends settlement, in this reverse conviction case for
17 million dollars, Roberto Alando ovar filed. This reverse
conviction lawsuit arising from his and Co his
co-defendants, William Negron.
co-defendants. William Negron conviction for the 1994
double murder.
Former detective, Ronaldo.
Former detective. Ronaldo Goa was 1 of the investigators
involved. In this case in
involved in this case in 2017 almodovar's. And any
involved in this case in 2017. Almodovar's and Negron
convictions were overturned almost over was released after
being in custody for this murder for approximately 23 years
and he was granted a certificate of
years, and he was granted, a certificate of Innocence
almodova filed his lawsuit on April 1st. 2018, Negron,
almodova filed his lawsuit on April 1st. 2018, Negron also
filed suit but this settlement pertains only to
filed suit, but this settlement pertains only to Almodovar.
The underlying crime here.
The underlying crime here occurred when Amy Marquez and
Jorge Rodriguez.
Jorge Rodriguez were killed shortly before 12:45 a.m. on
September 1st 1994.
September 1st 1994 after a dark blue 4-door.
September 1st 1994 after a dark blue 4-door osmo with 3
occupants drove past the building.
occupants drove past the building and started firing
Jacqueline grandi. And
Jacqueline, grandi and can uh, canelli says who were with
Jacqueline, grandi and can, uh, canelli says, who were with
Marcus and Rodriguez survived,
Marcus and Rodriguez survived Grande described the 3 in the
car, as
the car, as Hispanic men, former detective guava.
the car, as Hispanic men, former detective guava stated
that in a phone call. Grande said that the shooter had a
rectangular-shaped head and long hair that
rectangular-shaped head and long hair, that description was
not documented elsewhere.
Detective, earn Earnest. How
Detective earn Earnest Halverson reported that Grande's
description of the shooter. Having a rectangular head, led
him to put Alma dover's photo in.
him to put Alma dover's photo in the photo array for Grande
as well as any
as well as Negron photo who was known to hang out with.
as well as Negron photo who was known to hang out with Alma
dovar.
Grande viewed. The
Grande viewed, the photo arrays and identified almond over
as the backseat.
as the backseat shooter and Negron as the driver on.
September 12th. 1994 Grande, and the other surv
September 12th. 1994 Grande and the other surviving victim
SAS identified both,
SAS identified, both almodova and Negron in a live lineup.
Grande testified at the criminal trial that both almodova
and Negron shot.
and Negron shot her and her friends guava testified.
and Negron shot her and her friends guava testified about
the steps in his investigation that led him to believe.
the steps in his investigation that led him to believe Alma
and a grown were suspects but acknow
and a grown were suspects. But acknowledged on cross that
there were gaps in his police reports.
cross that there were gaps in his police reports. However,
before the criminal trial SAS recanted his identification
of almadova and a grown in.
of almadova and a grown in in affidavit to almodova as
criminal trial attorney. Then at the trial, SAS took back
his recantation and did indeed identify almadova and
Negroni he said that pressure from the gang members, let
him to recant SAS. However also
him to recant SAS. However, also contradicted the
detectives version of events when he testified.
detectives version of events when he testified at the
criminal trial that guava and Grande came to his house
where guava showed him.
where guava showed him 2, photographs, in Grande, told him.
These are the
him. These are the guys that did it. Almadova his aunt and
his girlfriend, all testified at, the criminal trial and
stated.
stated that he was home at the time of the murders.
November 30th. 1995 almodova and
November 30th, 1995 almodova, Negron were convicted, and
were both sentenced to life in prison. They challenged
their convictions based on goise alleged pattern of
misconduct on April 14th.
misconduct on April 14th, 2017, the state's attorney
withdrew, its objections to almodovar's and neon's pet
petitions to vacate their convictions and the charges were
Des
dismissed both. Then received certificates of Innocence.
almodova claims here that Grande and sizes have
identification were suggested and fabricated and that guava
and Halverson.
and Halverson set out to frame almadova for the murders.
The defense is without substantial testimony from 2 w.
Witnesses Halverson, who is deceased and guo.
Witnesses Halverson who is deceased and guava, who will
assert his Fifth Amendment privilege, not to testify.
Almadova will at argue.
Almadova will at argue that, uh, he has provided sub.
Almadova will at argue that uh he has provided substantial
evidence of an alibi with his family's testimony.
evidence of an alibi with his family's testimony that he
was home on the night of the murders. He will use his
certificate of Innocence to show that he couldn't commit.
certificate of Innocence to show that he couldn't commit to
the crime. So that identification must be false.
If settlement is not authorized the
If settlement is not authorized, the parties will proceed
to trial in November where Alma
trial in November where Alma May, seek 40 to 100 million in
Damages for his 23 years in custody, the city would be
responsible.
responsible for plaintiffs attorneys fees if you were to
succeed, which B would be in excess of 3 million taking
succeed, which B would be in excess of 3 million, taking in
account, the rest of the litigation, the 23 years plan
account, the rest of the litigation, the 23 years plaintiff
was incarcerated Goa. Asserting, his fifth.
was incarcerated Goa, asserting, his Fifth Amendment
privilege and the certificate of Innocence.
the Law Department recommends that the city settle this
case,
case for 17 million,
Uh, consistent.
Uh, consistent with other Goa settlements.
Thank you, Jessica.
Holder and Mitchell has joined us and will be counted.
towards Quorum. Uh, do I have any questions on?
towards Quorum. Uh, do I have any questions on this matter,
Alderman? Reilly followed by Alderman vag.
Alderman? Reilly followed by Alderman. Vagus.
Thank you, madam chair. Uh,
Thank you. Madam chair. Uh, was this an in-house case or
did we have outside council rep?
did we have outside counsel representing the city outside
counsel, and what was the
counsel and what was the total? Um,
I guess what was our total?
I guess what was our total bill to outside counsel?
Um,
To date. Approximately 800,000.
To date, approximately 800,000 80000.
Okay.
All right, thank you. That's all I have. Thank you.
All right, thank you. That's all I have. Thank you Riley
Alderman, Bas. Thank you madam.
Alderman Bas. Thank you. Madam chair. Not so much the
questions so much just a statement.
um,
No, actually a question as well.
no, actually a question as well. So this is about 739 per
year.
year, based on the the
so, um, having about 200 cases, still pending with
So um, having about 200 cases, still pending with gavara
Watts.
and,
and um,
The other.
the other gentlemen budro and I think
The other gentlemen, budro. And I think at this moment
there's approximately 275, uh, reverse conviction cases
about 175 involved Watts.
40, including this, 1 involves.
So, I say that to say that.
so, I say that to say that I just did the math on the 200
and based on these average of 739 per year, it's about 147
million.
per case, just for 1 year and some people have multiple
years of incarceration.
so we're looking at, you know, half a billion to even more
of a billion worth of of, uh, of settlements.
And I know that you guys are doing.
and I know that you guys are doing your best to minimize
the the damage, but
the the damage. But um,
I guess.
I guess the question is like, how are we paying for this?
Is this are we paying for this through?
Is this, are we paying for this through bonds? Um, how are
we paying for this?
Um, so I would just say that the average is definitely not.
740 per year, but I I realize your point. And so, um, I
cannot answer un.
cannot answer, unfortunately, how we're paying us, that's a
an answer.
a, an answer for the office of, uh, management budget or
budget and management. Um, and so that's all I can say
about that. Thank you, Jessica. All right. Uh, clearly the
answer to that question.
In this room right now. This is obviously a question that
we're going to have.
we're going to have to wrestle with as we go through the
budget process. Um, there are a lot of different ideas
ways to pay for this. Some people have talked about doing
it by Bond. Some people have, uh,
You know.
Suggested.
Suggested other Revenue sources. Um, that's not going to be
answered today. Yeah, ultimate basis.
answered today. Yeah, ultimate basis and, you know, that
Yeah, I know. It's just it's just it's infuriating because
this is, this is a huge liability that the city is facing
and
I'm going to continue to talk about it because at the end
of the day, there isn't a revenue stream or some way to a
strategy. You have to pay this back and it's a looming.
um, deficit that's out there that that's
Um, deficit that's out there, that that's going to hurt us.
No doubt, I mean, we've already blown this year's budget,
which was, I believe 82 million that was set for these
settlements. Um we're way past that. Uh so this is a
question that thank you. We're gonna have to wrestle with
um,
Uh, excuse me Alderman. Curtis
Uh, excuse me, Alderman. Curtis Alderman Vasquez followed
by you alderman.
by you Alderman. Curtis
Did you have a point of information? Yes. Uh I was just
wondering, uh,
I, I do know that there's uh, other cases pending but
I, I do know that there's, uh, other cases pending but are
are, those are also uh, outside Council.
are, those are also, uh, outside Council. Are they handled
by the same firm?
Um, no. We
Um no, we use very different firms in all of the different
cases.
cases so we tend to yeah. Okay.
cases so we tend to yeah. Okay, thank, thank you. Thank you
Alderman, Vas.
you, Alderman Vasquez. Thank you, chairwoman. Um, thank you
for all the information. Uh,
Yeah. Any uh, many
yeah, any uh, many of us here, feel the weight of what this
is going to look like,
is going to look like knowing the cost that's associated.
When you mentioned, just the sheer number of cases that are
still out there. Um,
I think this is why we why some in this Council Focus so
much on the accountability part.
If you stop these things from happening in the first place.
then you're not going to see the future of it. I mean, and
we're dealing with stuff. That's
we're dealing with stuff that's from the 80s at this point.
So, um, I think we should all shutter to what that might
look like 20 years from now.
like 20 years from now. Depending on what we have are
having which is why I'm I continue to raise the point that
we do need tracking on. What?
we do need tracking on what the behaviors have been. What
the trends are to figure out.
the trends are to figure out what our accountability needs
to look like, um,
to look like. Um, the question I have is more related to
budget.
budget how we pay for it. So we pay for most things here.
You're
they're either raising taxes.
Is while you're bonding out, right? Um, but I'm more Curious
of what happens.
of what happens when we are over our budget. So 82,
million specifically for settlements.
We're.
We're paying this out. What happens when we're going over.
because we
Because we have reporting uh that was negotiated last year.
where we're supposed to get quarterly reports whenever
numbers move.
numbers move whenever somebody moves a line item from what
is actually uh intended to do and move elsewhere. So,
yeah, I guess I guess the question is for,
Yeah, I guess I guess the question is for anyone Department
of Law or anyone here. We're over 82.
Department of Law or anyone here. We're over 82 million.
How are we paying for the stuff that's already over for
this year? We'll get that answer to you. Through the chair,
the budget Department,
The budget department is not here. Uh I don't I don't think
any repres.
any representative from the budget department is here.
Okay. Um
um but that is the question we can give you
Okay. Um but that is the question we can give you the
information about how? Yeah because I think these
information about how. Yeah because I think these were paid
for I appreciate the show. I need you to try to figure out.
The other question I have is, what move?
The other question I have is what move? What money is
moving around. Within the budget that we necessarily don't
have the inside on that, I think we should because we're
going to keep seeing this here over a year. So thank you
very much and thank you, chairman.
Alderman. Las.
Alderman laspada.
Thank you very much.
Thank you very much chair. I I think the facts.
Thank you very much chair. I, I think the faxes bought are
clear. I think that the conversation is
Circling around the payment. And I just
You brought it up. Is it something that's been brought up
persistent?
persistently? So I want to make sure to we're making this
point.
point persistently.
That there is not a shell game.
that there is not a shell game going on related to our
general, obligation bonds,
general obligation bonds, that bonds can only be used for
the purposes as described in the ordinance.
so, if the public thinks that we're
Taking the bonds that we pass.
taking the bonds that we pass for infrastructure and we're
we're moving those.
we're moving those Dollars around to pay for settlements,
can we?
Can we just confirm that? That is yeah. Thank you very much
for that.
for that Alderman. The spot when I refer to bonds, um,
there have been ideas circulated among some council members
about Bond.
about bonding out for the payment of settlements period.
And, uh, that has
And uh, that has not happened and what those con.
and uh, that has not happened and with those con
conversations persists,
Thank you.
Thank you, chair. I think it's always worth bringing as
much.
Clarity as possible. I appreciate that. Yes, ma'am, thank
you.
you appreciate it. No other questions.
uh, can
Uh, can I get a motion to move on this 1? So to approve
this uh item.
so, moved by Alderman, CEO Lopez all those
So moved by Alderman. CEO Lopez all those in favor signify
by saying I I opposed
and the opinion of the chair, the eyes have it and this do
pass recommend
pass, recommendation will be reported out at the next city
council.
council meeting. Thank you very much Jessica thank you
chair.
going out of
Going out of order of the uh, agenda. We're going to take
item number.
item number 9 next, which is a ordinance.
item number 9 next, which is a ordinance introduced by
Allman Marty Quinn 13th.
Allman Marty Quinn 13th, Ward and others amending municipal
Municipal Code chapter 2-8 by adding a new section 2-8-0
03.
036, uh, the issuance of bonds and other indebtedness,
ordinance requirements.
We have several.
we have several co-sponsors here and, uh,
We have several co-sponsors here and, uh, we'll start with
Alderman Quinn.
Good.
Good morning and uh, thank you madam chair for hearing
this.
item.
Um, the ordinance.
Um, the ordinance before you would raise the threshold.
approving City borrowing from a simple majority.
approving. City borrowing from a simple majority 26 votes.
To a 2/3, majority.
To a 2/3. Majority 34 votes.
We need to get serious about our City's finances.
We recently experienced.
We recently experienced a bond, downgrade, and more are to
come. If we don't approach this head-on as a full City
Council,
We cannot let this Administration. Take on more debt and
strap future.
strap future Chicagoans with the bill.
We have proven, we are not a rubber stamp on.
We have proven, we are not a rubber stamp on this
Administration.
We have to continue.
We have to continue to stand up, especially when dealing
with something.
with something as critical as our City's Financial Health.
It's time to be a more.
It's time to be a more co-equal Branch partner.
and,
And voice in City Hall.
If not.
What are we doing here?
We're just working against ourselves.
This proposed vote change would represent a significant.
This proposed vote change would represent a significant
step forward in securing the council.
step forward in securing the council's independence.
forcing the mayor to
Forcing the mayor to engage with all of us more.
We know the administration will push back. They already
have in the Press.
Claiming that requir.
Claiming that requiring a 2/3 vote would create gridlock.
Ladies and gentlemen, I'm not sure Chicago.
Ladies and gentlemen, I'm not sure Chicagoans trust, this
Administration with the city's checkbook.
Let's be honest.
You think Chicago ones are okay with the with the
interest-only arrangement on the most recent.
interest-only arrangement on the most recent 830 million
General obligation bond that
General obligation bond. That has a final price tag of 2
billion dollars.
and if that,
and if that same bond proposal needed voter approval, like
it does in other major cities.
Which it.
Which Chicagoans really vote for it.
I believe Chicagoans would like to see us.
I believe Chicagoans would like to see us be as involved as
possible in our City's major.
possible in our City's major financial decisions.
We have another opportunity.
We have another opportunity to become a strong and co-equal
partner.
Our residents deserve a strong.
Our residents deserve a strong Council to push back on
proposals that will hurt the
proposals, that will hurt the city's future and well-being.
I know I've been.
I know I've been sounding this alarm for some time, but I
truly believe.
truly believe a strong and more independent council is,
what's best for Chicago
I think there are many positive.
I think there are many positive results that will come from
working as a more independent.
working, as a more independent Council.
And acting this change will.
And acting this change will ensure there isn't just 1 voice
speaking for our city.
And all of us can have a stronger. Say, in the work, we
to see done for the people of Chicago.
um,
Madam chair. I would ask for a roll call after this as
well. Sure. I I figured you would thank you. Um uh before
well. Sure. I I figured you would thank you. Um, uh, before
Oh, Alderman. Nan. Alder.
before Oh Alderman, Nan Alderman. Napolitano have joined
us. They're not members of the
They're not members of the finance committee but we see you
as non-members.
We got you, Alder.
We got you Alderman, Nugent.
Oh, you want to?
Oh, you want to exercise your right to vote? Thank you. Uh,
I just think I have to say the words to comply. So thank
you. Thank you. Madam chair. Pursuant to my role as
President Pro Temp and under rule.
President Pro Temp and under rule 36, I intend to
participate and vote on this matter.
participate and vote on this matter as an existio member.
Thank you. Thank you very much. Um, we have also here with
us Steve mahre. Who is the assistant, commissioner or debt
manager from the finance office?
manager from the finance office and he's available in the
Box to help answer any questions.
Box to help answer any questions people have.
so, we'll start with
So we'll start with the the list is growing.
Um, we will start with all them and Beal.
Thank you. Madam chairman members of the committee.
uh, first I would like to commend my colleague for uh,
bringing this ordinance before us. Uh, simply because I
think it's a great piece of legislation. Uh, when you look
at Chicago, being the only
at Chicago being the only big city in the country,
And we always talk about how we want to emulate other.
And we always talk about how we want to emulate other
cities. And, um,
cities, and um, you know, copy what other big cities are
doing at works.
works. Well, we're the only big city in the country.
works. Well we're the only big city in the country that
does not have a charter.
Or an ordinance.
Or an ordinance that requires a 2/3, majority.
When?
when it comes to the city's finances,
and so, I think, you know,
And so I think, you know, crafting this legislation since a
very good message.
very good message to the people of the city of Chicago that
we
that we are being great stewards of their money.
that we are being great stewards of their money because we
know that we're in a financial crisis.
know that we're in a financial crisis right now.
and when you look at,
and when you look at having to govern for 3,
and when you look at having to govern for 3/4 of majority,
I think that's going to take away the horse trading of
promising, extra streets.
promising, extra streets, and sidewalks and extra parks,
and extra. This
and extra this in order to buy votes.
And so that takes that equation.
and so that takes that equation out of the picture to where
the people can. Now either put it to the residence
Because that's my colleague stated. If you put that Bond
before the people on the ballot as a referendum.
before the people on the ballot as a referendum, it will
fail drastically.
but when we're able to,
But when we're able to govern for 26 votes, you're able to
horse trade extra.
Street.
Streets and sidewalks and parks, and things like that. In
order to get 26,
Very easy to do.
But does that make good government? No, it does not.
It is.
It is not good government.
Because what?
because what it does, is it pits people against the other
and you're not doing what's right for the entire city.
and you're not doing what's right for the entire city
you're doing. What's right for a select few.
and so we're obligated to do what's right for the entire
city of Chicago and be good stewards of all the money as we
vote.
vote for it.
Because I still would like to see.
Because I still would like to see certain things put on the
ballot.
Such as the sanctuary city, which was never been.
Such as the sanctuary city which was never been posed to
the people.
Having.
Having bonds presented to the people.
And let.
And let them vote on if they want their taxes raised or do
they?
they want Cuts in efficiencies? I guarantee you I know
they want Cuts in efficiencies? I guarantee you, I know
what this city is going to vote for. They're going to vote
for cuts.
cuts and efficiencies.
however, when we have Administration just believes in
raising taxes,
raising taxes and spending money before you
Look at cuts and efficiencies.
This is why we have a 6.
This is why we have a 6% approval rating.
In this city.
In this city because of the way it's being governed.
Now, I know some of my colleagues going to look and say.
well they they go bill again.
Well, you know what?
I've been right.
I've been.
I've been right.
The last 2 budgets have.
The last 2 budgets have been.
Unbalanced.
Unbalanced, but we continue to vote for budgets.
I said, the last 2 budget were imbalanced.
Not only did we.
Not only did we close out this year with a deficit?
The money that continues to be spent.
We are not being good, stewards of the people.
we are not being good stewards of the people of the city of
Chicago, and we have to stop
Chicago. And we have to stop it with an ordinance like
this. I think we'll send a very good message that we're
headed down the right.
headed down the right path.
and so I commend my colleague for
and so I commend my colleague, for bringing this to us,
Great Piece of legislation,
and again, I'm going to end Again by saying
And again, I'm going to end Again by saying we're the only
big city in the country.
that does not send these type of,
That does not send these type of items to the the ballot as
a referendum.
a referendum or require
2/3, majority.
so if you all want to continue to go,
so, if you all want to continue to go down this road,
as far as sending our finances down the rabbit hole,
As far as sending our finances down the rabbit hole. So be
it. Continue to do what you all continue to do.
but if we want to turn the city around and do
But if we want to turn the city around and do what's right
by the people? Stand up, take a stand.
by the people. Stand up. Take a stand and vote for this
ordinance. Thank you. Madam chairman.
Alderman, OA.
Thank you, chairman.
Uh, my colleague Alderman, Quinn is opening.
Uh, my colleague Alderman, Quinn is opening remarks. Uh,
made a point that I
Made a point that I work I think is worth repeating.
Use the word trust.
The people.
The people of Chicago, don't trust government.
They don't trust the federal government, they don't.
They don't trust the federal government, they don't discuss
the state government, they don't trust city government.
Because that's what I hear over and over.
And what I've witnessed here, these last few years with our
government. I'm talking about this building this room,
They're not wrong.
I can't tell you how many hours I spent in meetings in this
building with leadership.
building with leadership and this Administration last
budget season.
where,
Where I was told things.
That weren't true.
Where I was.
Where I was told things only to find out hours later.
From a colleague who was told something else.
There is not.
There is not enough real honest, communication.
there is not enough, real honest, Communication in this
building between elected officials and this Administration.
We're in a financial crisis in the city.
I support.
I support this ordinance.
because if we,
because if we communicate with 1, another and information,
is provided to us, then we can make difficult decisions.
is provided to us, then we can make difficult decisions on
important Financial issues moving forward. But if we keep
doing what's been happening here,
These past few years.
Folks.
We're leaving a real mess for our children.
We've got to begin to rebuild Trust.
We've got to begin to rebuild trust. We need to rebuild
communication. I support this ordinance. Thank you. Thank
you, alderman.
you, Alderman. OSHA Alderman Lopez.
Thank you again.
thank you again, chairman and members of the
finance committ.
finance committee.
I too support this ordinance. This Common Sense piece of
legislation that.
Will force us.
to live within our
To live within our means.
Somewhere.
when we look at what,
when we look at what other major cities that do,
Some put 2/3, requirements.
Some put Council vote.
some put Council vote and then
General.
General voters. Weighing in as well.
Others have debt boards.
Or other mechanisms in place.
And yet still other cities major cities.
even have something so radical as
Even have something so radical, as debt limits.
To ensure that.
to ensure that government is not taking on more than
handle.
Ladies and Gent.
Ladies and gentlemen.
We are.
what 43 billion dollars in the
What 43 billion dollars in the hole.
Roughly.
depending,
Depending who you ask?
Depending what day of the?
Depending what day of the week it is.
depending when you look at, not just our pension, but our
general obligation, when you
general obligation. When you have first second, third
liens, on sales taxes,
to pay for things that are
To pay for things that are securitized, because we think
we're going to have money.
we're going to have money flowing into our conference in
perpetuity, as we see our economic zones shrink
perpetuity, as we see our economic zones, shrink, as we see
our downtowns shrink as we see our property tax base,
shrink.
shrink shift and evolved.
We need to start living within our means. Ladies and
gentlemen.
and even we
And even we heard today, that we only have 2 options raise
taxes.
Or increase spending. What I never hear is cut.
What I never hear is tighten the belt?
any 1 of our constituencies households, when they
any 1 of our constituencies households when they don't have
enough money,
At some point, they're not able to open up more credit
cards. They're not able to get loans or equity,
cards. They're not able to get loans or equity loans,
And we've gotten Equity loans, on top.
And we've gotten Equity loans, on top of equity loans here
in the city of Chicago.
Even today.
Earlier.
while discussing the,
while discussing the 143 million dollars in settlements,
with the addition of nearly
30 million more today.
30 million more today, 2526 million, more were adding on
top of that.
We heard reference today that, oh, we could just borrow
To cover.
Even more.
Even more settlements.
As a possibility being entertained.
As a possibility being entertained by members of this body.
Borrow.
Borrow Bond.
Align of credit. It's all the same thing. It's debt.
It's
its debt, that will have to be paid as our, colleague said
to our children and their grandchildren, 30 years
to our children, and their grandchildren, 30 years of debt.
And let's not forget how we've gotten into this place.
Because we've been deficit.
Because we've been deficits spending for a generation.
A 17 billion dollar Budget on.
a 17 billion dollar Budget on 12 billion dollars in Revenue
right now, if we are lucky and that's fudging it to make it
equal.
equal on both sides of the equation.
What are we borrowing for?
You borrow for the sidewalks, you borrow for the streets,
you take.
you take out a 30-year loan to cover your menus, our menus,
when we know the streets, only last.
when we know the streets only Last 5 Years, but we're
paying for them for the next 30.
the only way we can get
off this debt addiction.
off this debt addiction deficit spending addiction here in
this room.
Is to put caps on how.
Is to put caps on how hard on how easy it is to get to that
point.
If everything is just ah 26, let's go keep borrowing.
pretend. It's somebody else's problem down the road.
Some of you been here long enough to cast that debt and
have to pay it back.
Some of you.
Some of you hope to be here, long enough to have to pay it
back.
But that never goes away.
And we're in.
and we're in crisis right now because at some point, ladies
and gentlemen, if I'm not mistaken probably within the next
3 years, we are not going to be a city service provider
anymore.
We're going to be a debt service provider.
We're going to be a debt, service, provider and even now we
are inching closer and closer.
are inching closer and closer as our debt service takes up
more and more of our revenues. We talk about the things we
want to do in our communities.
The things we want to fund, and it doesn't matter where you
sit.
sit in this chamber, all of you have aspirations for where
we should put money.
we should put money, whether investment infrastructure,
youth V, youth Pro, youth, uh, youth programs violence.
youth, V, youth Pro youth, uh, youth programs violence,
prevention, whatever you want to do.
You can't do it.
You can't do it if we're broke.
And you're certainly not going to do it.
And you're certainly not going to do it in a sustained way.
We're doing it in debt.
This is a step in the right direction.
This is a step in the right direction and it's high time
that this body
probe measures like this. That make sense and
Probe measures like this, that make sense. And that all of
our constituents can relate to
tighten the belt.
Make your payments.
Make your payments and stop opening new lines of credit
mortgaging. Your
mortgaging, your children's Children's future just to get
through.
through today.
Thank you, chairman.
Thank you Alderman Lopez, Alderman, Cardona.
I just want to be noted for being in person Madam chair.
That's it. All right. Don't note it alderman.
That's it. All right. Don't note it, Alderman, Wagers back.
Thank you.
Thank you chairwoman. Um,
first of all, I want to
First of all, I want to commend my colleague. Alderman
Quinn for this ordinance, that he has proposed here today
and the very detailed, uh, evidence that he
and the very detailed uh, evidence that he shows of what
the other.
the other municipality major municipalities.
the other municipality major municipalities in the United
States, do to make sure that any bond deal that moves
forward, um, has the support of not only their City,
councils in many cases, but also voter
councils in many cases but also, voter approval. And when I
first saw it, I thought, oh, um, you know, some people came
up and said we're going to do 2/3, vote and then we're
going to have an election.
to have an election of voter voter approval on each 1 of
these or a ballot measure. Um and
these or a ballot measure, um, and had to
Reassure them that they wouldn't have it to.
Reassure them that they wouldn't have it to go to vote on
each Bond issuance.
each Bond issuance, uh, in an election for each bond issue.
that we do, but it would just require the city council.
that we do, but it would just require the city council to
really dig in, uh, with the mayor's office.
really dig in uh, with the mayor's office with the
committee on finance with the Department of
on finance with the Department of Finance to make sure that
any bond deal that comes forward has.
any bond deal that comes forward has much more support than
um we've had.
um we've had in the past with just the 50% plus 1.
um,
we've had this discussion.
we've had this discussion in the past, I think about 15
years ago, uh, some of these issues came up. Um,
years ago, uh, some of these issues came up, um, obviously
a different time, a different mayor, but I think the
process over time, as we've kind of seen it.
process over time, as we've kind of seen it, uh, uh, stay a
little stagnant here. Uh, does need this new infusion of?
little stagnant here. Uh, does need this new infusion of a
2/3, vote to pass something.
2/3 vote to pass something. Um, I looked at the California
model that he put into this, uh, many of the California
cities that do it. It seems a little excessive to take it
to that next, uh, ballot measure.
to that next, uh, ballot measure but we don't need to do
that. Um, I think it's very important to make sure again
that our Council review these documents review. The
proposals to make sure that we're getting all of the
evidence uh,
evidence uh required all of the information required to
make.
make uh good choices for our tax.
make uh good choices for our taxpayers who bear the burden
as some of my
burden, as some of my colleagues have already stated for
decades to come.
Uh, the state of our debt and pension obligations.
Uh, the state of our debt and pension obligations requires
us to be more thoughtful and proactive.
to be more thoughtful and proactive in obtaining critical
information on each 1 of these Bond issuances. And I think
that the again, the 2/3 would help to do that. Um, when I
look at New York City, um, they do not have that step 1
Step 2
2 and step 3 uh that Alderman Quinn, provide the
information
the information that he provided for us in this document,
um, from yesterday, um,
but,
But New York City also had a financial takeover.
but New York City also had a financial Takeover in the
1970s because they were and the almost the same state that
we're in right now.
we're in right now which was financial distress that
required a financial authority to come in, take over.
required a financial authority to come in, take over the
city and put in, uh, new meth.
city and put in uh, new methods to balance their system
before.
Before they financially, they had a financial collapse.
before they financially, they had a financial collapse. Uh,
hopefully we won't be at that point. But all of you know
that our pension and debt obligations are growing and
growing.
growing and growing and we're making decisions in this
Council.
Council that don't meet the needs of, not only taxpayers.
Council that don't meet the needs of, not only taxpayers of
today. But for my children's,
today, but for my children's generation and generations to
come. We cannot continue to saddle them with uh,
issuances that don't meet the basic needs.
issuances that don't meet the basic needs of taxpayers.
Uh, so I agree.
Uh so I agree with the 2/3, um, without the voter approval.
Uh, so I agree with the 2/3, um, without the voter approval
and the subsequent election, I think this will help.
and the subsequent election, I think this will help Garner
the votes that we need to protect taxpayers. And am I I am
in full support of this ordinance today.
in full support of this ordinance today and hope that each
1 of you will look at it.
Uh, review it right now and vote in favor of protect.
Uh, review it right now and vote in favor of protecting our
taxpayers in this city. Thank you. Chairwoman
Thank you Alderman, wagon.
Vise chair Conway. Sorry. Thank you. You know?
Vise chair Conway. Sorry. Thank you. You know, we've had 3
major non-airport debt issuances, you know, in this term we
had the, uh,
had the uh, 1.25 billion housing Bond. We
had the, uh, 1.25 billion housing Bond. We had the sales
tax securitization bond, which I was for.
tax securitization bond, which I was for and the 830
million dollar infrastructure Bond.
And I know we are all.
And I know we are all for a lot of people are for that 830
million dollar infrastructure Bond.
830 million dollar infrastructure, Bond, it funds, police
cars and sidewalks that we discussed and as well as as well
as streets.
But I also need to remind everyone how terrible.
But I also need to remind everyone how terrible the
structure was on that.
2 billion dollars.
2 billion dollars in total repayments, and from 2049 to
2055, long after all of us are out of here.
We're going to be paying 137 million a year.
We're going to be paying 137 million dollars a year in
those 6 years totaling 82.
those 6 years totaling 822 Million by itself. This is long
after those police cars are out of service.
After those police cars are out of service. Those sidewalks
have been redone and had to be redone again. And those
streets have probably been repaved.
streets have probably been repaved multiple times but yet
we'll still owe that money.
Now, I know a lot of you voted for that for that
infrastructure.
infrastructure Bond.
and I suspect, it's because
You didn't, we didn't recognize?
You didn't, we didn't recognize the downgrade that would
come with.
come with from that. And frankly, we were misinformed with
regard to that.
Now.
Our fiscal situation is a mess that is no secret.
And you know, there is an old adage that
And, you know, there is an old adage that. How do you go
about eating, an elephant. Well, you take 1 bite at a time.
about eating, an elephant. Well, you take 1 bite at a time
and it's time that we, in this city.
Started taking some of those bites.
And as a result of that, we need to be more delivered.
And as a result of that, we need to be more delivered on
future debt issuances.
In this ordinance will ensure that, that happens.
In this ordinance will ensure that that happens. So I want
to, I am certainly for this and I want to thank
Uh, Alderman Quinn for putting it forward. Thank you.
Thank you Alderman, Scott.
Thank you, cheer.
Transparency and transparency.
transparency and transparency, and Trust our essential in
government and
government. And I support this ordinance, the 2/3 vote
which ensures that significant financial decisions rece,
which ensures that significant financial decisions receive
a more comprehensive review and approval from a majority of
elected officials.
This will provide accountability, it would help mitigate.
Financial Risk and aligns with best practices. And as other
major cities do,
As.
As Alderman alderwoman Alder person. My commitment is to
responsible, governance and serve.
responsible governance and serving the residents of
Chicago, particularly those in the 24th, Ward. Um,
Alderman, Quinn has helped me understand.
Alderman, Quinn has helped me understand um this ordinance
and has sent a bunch of uh
Follow-up to me. Because you know, I've I always question.
everything that I say or what I do. But I think that this
everything that I say or what I do but I think that this is
just great governance and I urge all of my
is just great governance and I urge all of my colleagues to
support this. Thank you.
Thank you Alderman, Scott.
Alderman laspada.
Thank you very much.
Thank you very much before you start. Um, Alderman guard
Thank you very much before you start. Um, Alderman Gardner.
Knowledge. You
Alderman.
Thank you very much.
Thank you very much chair. I, I just want to be clear
because we, we've been having conversations or at least on
the floor around.
Best practices.
It does appear. And I know there's been qualms around the
fact sheet in front of us.
But Chicago, New York Los.
But Chicago New York Los Angeles.
Houston Phoenix Philadelphia.
Houston, Phoenix, Philadelphia. Atlanta. Do any of these
cities currently?
cities currently require a 2/3, majority?
for the
For the issuance of new debt.
Um, Direct.
Um, direct that question to uh, Stephen Maher.
From the finance department. Yeah, Stephen Maher,
assistant, commissioner finance department.
To the best of my knowledge. No, all
To the best of my knowledge. No. All of those entities
require a simple majority of City.
require a simple majority of city council members to pass a
bond, resolution or ordinance.
Okay, I just want to make sure I understood it.
Clearly I I do understand the concern.
Clearly, I I do understand the concerns. I know what it
feels like to walk.
feels like to walk into a room and be told something and
for some of the folks over here to be told something
different.
I know about the desire.
I know about the desire for
transparency. Heck, like even
Transparency. Heck like even to know that when we vote for
Bond ISS,
Bond issuance that those dollars actually get out to the
door to projects.
door to projects in our communities, that matter to us, um,
There was a point when I thought.
There was a point when I thought that this was only about
General obligation bonds. I was
Closer to being comfortable voting for.
closer to being comfortable voting for this.
To have it. Apply to any new issuance.
Goes far above what I'm comfortable.
goes far above what I'm comfortable with for the city I
would say I'll close by saying 2 things quickly. I think
there's
when we talk about children,
when we talk about children in theory, I think about the
practicality of them and they're truly is No 1 who
practicality of them and they're truly is No 1. Who gets on
me more about the condition of infrastructure in the city.
than the uh soon to be 3 year old that I walk around.
than the uh soon to be 3 year old that I walk around with.
I am I am more comfortable than you.
I am I am more comfortable than you would think. Um with
the reality that you will be paying.
the reality that you will be paying this off over the
course of her life time because I
course of her life time, because I see on a daily basis.
How cual
quality infrastructure impacts the quality of her life.
I actually say 2 extra things.
We talk a lot about INF.
We talk a lot about infrastructure, related lawsuits and
liab.
liability in this chamber.
We talk about the street lights that have fallen on
people's.
people's Vehicles. We talk about as we did.
people's Vehicles. We talk about as we did minutes ago, the
condition of sidewalks and how they lead to suits that.
end up paying out.
To.
To me, it would be for me.
Dising.
Disingenuous.
To both call.
To both call out the condition of our infrastructure and
then make it.
then make it more difficult for the infrastructure to be
repaired. Um,
um,
I mean those were the key pieces.
I mean those were the key pieces for me, too. I appreciate.
I appreciate the intention.
I appreciate the intention and the desire for transparency
but also we'll just say that there's a political reality
that I recognize even if I don't.
that I recognize. Even if I don't agree with it that would
most likely under this ordinance mean that we simply would
not be voting in favor of new infrastructure investment
over the next 2 years.
and,
That's not something that I can support. Thank you, chair.
Point of information.
Point of information Alderman, Quinn.
Submit for the record. Um, LA's law on 2/3. Um, in Texas is
law that calls for um, voter approval. So I'm
law that calls for, um, voter approval. So, I'm going to
hand this to you.
1 of the information Alderman, sichel l.
1 of the information, Alderman, sichel Lopez information,
and I'm glad that they're being document.
and I'm glad that they're being documented submitted at
this point. But the happening any brief?
this point, but the happening any briefings on this so that
we can look at such documents like not.
we can look at such documents like not now, but ahead of
time, have we been able the opportunity to have
time. Have we been able the opportunity to have this? I'm
not aware of any briefings that were held on this.
not aware of any briefings that were held on this matter.
Thank you, point of information.
Thank you point of information alderman.
Lopez.
Thank you. Chairman just as a quick point.
Thank you. Chairman just as a quick point of information
when we have individuals from the Departments.
making statements about
Making statements about what we know.
True. Our, our Witnesses familiar.
With.
With chapter.
With chapter 1-21-22.
Which refers to making?
Which refers to making false statements.
And a testing to the things.
and a testing to the things that are knowingly, false as
being a crime, punish
being a crime punishable by the municipal code.
Uh, thank you. You
Uh, thank you you've given us notice on that all the men
bill.
Bill. Well, that's a question to ask if he's aware that.
Bill. Well, that's a question to ask if he's aware that
directed it to me, you directed to someone else. I'm, I'm
asking if they are aware of that.
Who's they?
Whoever's testifying before this committee as an employee.
Whoever's testifying before this committee as an employee
if they are aware of that. Because clearly
if they are making false statements, when
If they are making false statements, when that we know are
not true.
then we have an
Then we have an issue and it sounds as though we just heard
1.
Mrar. Are you aware of the, uh,
Mrar. Are you aware of the uh law that the alderman is
siding? I am. Yes. Thank you, Alderman. Bill.
Chair. Just real quick. I would just like, to know, um,
Chair. Just real quick. I would just like to know. Um,
where did you get your information from?
so, thank you for your
So, thank you for your question.
This information was pulled from research.
This information was pulled from research that the
Department of Finance did over the past couple of weeks.
looking at state laws and City Charters from the
Looking at state laws and City Charters from the various
cities and states. So you personally did not do the
research, you're you're basing off of some research,
somebody gave you know, actually I did the majority of This
research.
Thank you. Moving. Moving along Alderman, Urban.
Thank you. Uh,
Thank you, madam chair. Um,
this this real interesting, right? Um,
I'm gonna say this and uh, we'll move on.
I'm gonna say this and, uh, we'll move on. Um,
The bulk of the debt that.
The bulk of the debt that the city has on its books.
is from the time in which
many of the people that are advocating for this change.
didn't make pension contributions. Didn't do what was
fiscally responsible, then and now have had an epiphany
that now we need to move.
that now we need to move Beyond a simple majority.
That now we need to move Beyond a simple majority to a
supermajority, which basically means puts the minority.
supermajority which basically means puts the minority in
control. Um, if changes need to be made on how debt in, uh,
things are done those.
things are done. Those changes need to be done at the state
legislature because this is the rule by which everybody
else.
in the state of Illinois, decides to, uh, utilize, um,
essentially what they're the this ordinance would do is
Empower a small group of people to hold everybody else
host.
hostage and the last I checked in the democracy,
hostage and the last I checked in the Democracy, uh,
majority rules, we don't need, uh, 80% of the people, if
it's, if it's majority. And then it's majority.
so, I would
So, I would only only add to the fact that again.
So I would only only add to the fact that again this is not
designed to help.
not designed to help us is designed to empower.
designed to help us is designed to empower a very small
group of people that seem to be.
group of people that seem to be hell bent on driving us
over a cliff.
So, I'm
So I'm hopeful that we are in a position that we understand
and know the realities that are being laid out today. And
how what? This
how, what this can and will do for us that are trying to
move in.
move in a responsible Direction, trying to bring things to
the table.
the table that all of us can move forward and and work
with. And to the point to about how our inde
with, and to the point to about how our indebtedness works.
And how the
Port.
Portions of our debts that are paid over time. We do not pay
for a sidewalk in year.
for a sidewalk in year 80. Uh, when we're when that we
know,
that the, the useful life of a part particular piece of our
infrastructures, only going to last us so long. I mean,
infrastructures only going to last us so long. I mean, all
of these things have to be structured according to both
Federal
federal and state law. So ultimately I I think that there's
a lot of I'll call misinformation but let's be clear here.
Um this ultimately will will Empower a small group of
people.
people to hold everybody else hostage while the majority of
us.
people to hold everybody else hostage while the majority of
us would like to move on things. So let's just be clear
about what this lays out. And the fact that again this was
about what this lays out and the fact that again this was
portions of this was tried in the 80s.
portions of this was tried in the 80s, came back up again a
few years uh 10 12 years ago but again these same
conversations about what we needed to do. Our pension
situation, didn't just happen this way. Today, again, these
were decisions that were made eons ago that now
Come home.
come home to roots and we have to make these payments. So
and again that is the bulk of our debt is pens.
and again that is the bulk of our debt is pension
obligations. Not about the the Geo obligations or even the
revenue bonds for water and for sewer and for the airport,
those revenue bonds that are that are supporting that and
as well as the sale tax,
as well as the sale tax securitization bonds, which are
secured, uh, by by our sales taxes, again, all of these
different Nu
different nuances, ultimately, just go to empower.
different nuances, ultimately, just go to empower, a very
small group of people in our Council
Thank you, madam chair. Thank you Alderman, Hopkins.
Followed by.
Followed by alderman viegas.
Uh yeah, thank you. Madam.
Uh yeah, thank you. Madam chair. Uh, just listening to the
debate and discussion. Uh,
I wonder if any members of the finance committee remain
undecided, it sounds like we've all made up our minds but
if anyone is still undecided, I would just uh suggest that
you uh, make your decision.
you, uh, make your decision based on the merits of this
specific.
specific proposal, not necessarily on your person.
specific proposal. Not necessarily on your personal
feelings. About the fiscal stewardship of
feelings, about the fiscal stewardship of this
Administration. Uh, and I say that because what we're
deciding here has implications, well beyond, just whatever
this Administration is doing or has done uh, and In
fairness to them I just want to point out.
fairness to them, I just want to point out that, uh, the 10
years prior to this Administration taking office. We saw a
years prior to this Administration, taking office. We saw a
30% increase in per capita, debt, in the city of Chicago,
and that is considered by Financial officers to be among
the most, uh, revealing fiscal metrics.
the most, uh, revealing fiscal metrics of a municipal, uh,
government.
government's relative fiscal Health, we ladies and Gent.
gentlemen, in the city of Chicago,
Have the second highest.
Have the second highest per capita debt in the nation. And
again, that 30% increase in occurred over the 10,
again, that 30% increase in occurred over the 10-year span
prior to this Administration, taking office. There's plenty
of blame to go around for the mess that we're in today.
Some of it falls squarely on the shoulders of this body.
Some of it falls squarely, on the shoulders of this body,
uh, as my colleague Alderman Conway.
uh, as my colleague Alderman Conway, uh, mentioned the 830
million.
million, uh, infrastructure debt, issuance that passed by
this city council, uh, includes some of the most, uh,
egregious, delays. It's not even school, and
Delays, it's not even scoop and toss, it's toss and toss,
Deferring. The
Deferring, the interest interest on the interest.
Deferring, the interest interest on the interest for the
entire span of the debt.
Finance charges, uh, that that are simply. I
finance charges, uh, that that are simply, I popping that
I've never seen in Public Finance before and we passed it.
Not all of us. There were no votes here too, but some of it
is systemic when we look at these other
uh, governments, and some of them have
uh governments and some of them have 2/3, some of them are
simple majority, some of them require a public ballot vote.
Um, there's a variety of systems that are available for
municipal finance and the fact that we have gotten to this
point in the city of Chicago,
point in the city of Chicago suggests that ours needs
reform that
reform. That is why I am a yes vote on this.
reform, that is why I am a yes, vote on this ordinance.
It's time to tap the brakes on accumulating debt in the
city of Chicago. It's been far too easy for us to get to
the point that we are. My yes, vote is not an indictment of
this admin.
this administration's fiscal stewardship. I'll say my
criticism, uh, for the upcoming budget,
Hearings. But, for now,
hearings, but for now, this is a common sense measure and I
I, uh, commend my colleague Alderman Quinn for presenting
this to us. This is a common sense measure for us to stop
the bleeding.
the bleeding, and it's past time to do that for the sake of
our children and our grandchildren. Thank you. Madam chair.
Uh, alderman.
Uh, Alderman. Vagus
Thank uh, thank you. Madam chair.
Followed by Alderman Silverstein.
Houston, Los Angeles, New York.
Houston. Los Angeles, New York Philadelphia.
All those cities.
But they have in common is City charters.
in this city of Chicago, it's
In this city of Chicago, it's past time to implement a city
chart.
Charter so that way
we can put forward.
we can put forward the ground rules on how we're going to
govern.
Now.
Now there's a resolution that will be circulated this
Wednesday. I would hope.
Wednesday. I would hope that a lot of colleagues would sign
on to it, it's allowing or asking.
on to it it's allowing or asking for the general assembly
as 1 of my colleagues mentioned
As 1 of my colleagues mentioned to take a look at putting
forward, a a city Charter. Something that's
forward, a a city Charter, something that's well, like
again, it's well past its long.
again, it's well past it's long, past due,
With the only large city in the country.
with the only large city in the country, the only large
city in the country that doesn't have a
in the country that doesn't have a charter and a city
Constitution. So I'll start with that.
2/3.
Allows for more discussion to take place.
It allows for more ideas.
To be put on the table.
And it.
and it it, it it requires um the executive branch
To do a lot more have a lot.
To do a lot more have a lot more discussions. Uh, in order
to get things.
to get things passed as it relates to bond deals,
especially ones that last more than a decade.
Um, I I think that's a good thing.
Um, I I think that's a good thing to have those
discussions. Um, it's a very Democratic and transparent
process that would allow again for every Alderman, the
ability to find out what's in the bond and, and be able to
report back.
report back to its constituents what they're getting for.
The
the, for the, for this, for their
for the
For the consideration of the debt obligation.
We've had Capital bonds.
We've had Capital bonds that have been passed without
having hearings on them to determine what the body.
the, the body that actually has the vote on on these on
these, uh, Bond deals to see what's in there.
We've got to do a better job. They got to be more
transparency.
uh, and this allows for the
uh and this allows for the M 2/3 of the city, the
opportunity to have a robust discussion on the billions of
dollars that the city bonds
It's a transparent. It's a transparent discussion. So I
support.
support this, and I would urge my colleagues to do 2
things. Number,
Number number 1, on Wednesday, when the circuit, when the
city chart,
city Charter is being circulated, resolution to sign on to
it.
Let's really put forward a city Constitution that
Puts the ground rules on how we're going to.
puts the ground rules on how we're going to operate and
then number 2 vote in support of this, this
then number 2 vote in support of this. This is a 2/3.
Matter of fact, it doesn't go far enough
Matter of fact it doesn't go far enough, I think we should
have 2/3 on the budget 2/3 on leases.
have 2/3 on the budget 2/3 on leases heck, that's why we
have the parking meter deal. That's why the Skyway is in
place because it's a super majority.
So I think I think 2/3 more discuss.
So I think I think 2/3 more discussion, more transparency
is a good thing. So I I commend my colleague from the 13th
word for putting this forward, urge my colleagues to vote.
Yes, thank you. Alderman Silverstein
Followed.
Followed by Alderman Vasquez, thank you chairman. Um,
Followed by Alderman Vasquez, thank you, chairman. Um, I
just wanted to take a moment to also commend my colleague
Alderman Quinn, uh, for putting forth.
Alderman Quinn uh for putting forth this resolution. I am
extremely worried about the finances of the city and we
definitely need more oversight when I talk to
definitely need more oversight. When I talk to people
throughout the entire city. Um, we're always talking about
how we are so concerned about our next generation.
how we are so concerned about our next generation for a
whole host of reasons. And this is a good first step that
we should.
we should do to put our city. Not just
we should do to put our city, not just for us, but for our
children and our grandchildren.
children, and our grandchildren and a better path forward.
So um I will be voting. Yes for this Orden.
Thank you.
thank you, Alderman, Alderman Vasquez, followed by
Thank you Alderman, Alderman Vasquez followed by Alderman
kutson. Thank you very much, uh, chair.
kutson. Thank you very much. Uh, chairwoman I want to thank
uh, the sponsor.
thank, uh, the sponsor, uh, Alderman Quinn for introducing
this. I think it's an important.
this. I think it's an important conversation. Um, as
somebody who's now been here for my 60 year and having to
navigate through budget processes. I understand.
navigate through budget processes. I understand like I'd
say, every member of this Council does.
say, every member of this Council does how excruciatingly
challenging it becomes and how we don't often get the
results that are going to lead to a better Direction.
Um, it is why when we talk about charters,
Um, it is why. When we talk about Charters, I'm a proponent
for a city Charter, I think it would allow you to set up
processes for us to have an independent budget office for
example, and actually have the kind of data and information
1 would need to make right deck.
1 would need to make right decisions. Um I think when it
came to this piece of legislation, I I am a little
conflicted for a couple of reasons.
um,
last year was a good example of how this body.
last year was a good example of how this body works when it
pertains to budgets. Uh, we have agreement that when
talking to the administration, we can't always take them at
their word when it comes to what's being presented that
leads to hard decision making right.
leads to hard decision making, right. But what we also saw
that is that this body doesn't necessarily engage in the
way it should during a budget process. Heck, a majority
don't show up to all of the meetings. So when they want to
talk about how dig how they want to dig,
talk about how dig how they want to dig deep into these
numbers showing up, might be a requirement.
numbers showing up, might be a requirement of of that
process. Um, there was a large conversation last uh, year
About efficiencies. And there were a number of us in full
agreement about efik,
agreement about efficiencies because we recognize that when
you have a 17 billion,
you have a 17 billion dollar budget out of 5 billion of
which we can actually say anything about, it's not mandated
to somewhere else. 43% of that budget is 1 department and
we talked
we talk about efficiencies. No, 1 here wants to talk about
the department.
it's 1, that takes
It's 1 that takes up 43% of your spend.
You've got.
You've got roads that we're talking about that need fixing.
We've got settlements that.
We've got settlements that, we're talking about gas
sidewalks on getting fixed, but no 1 talks.
sidewalks on getting fixed, but no 1 talks about
efficiencies as it really relates to the budget. So what I
saw last year, wasn't anyone talking about?
saw last year, wasn't anyone talking about efficiencies? It
was people. Issuing ultimatums, hey,
was people, issuing ultimatums, hey, let's spend what we
did in 2020. Why don't you cut this?
did in 2020. Why don't you cut this percentage off? None of
that is doing any of the homework.
that is doing any of the homework, its surface level
ultimatum at best. And so, the reason why that is
conflicting to me,
conflicting to me is it doesn't necessarily lead to better
outcomes.
Having an ultimatum doesn't mean someone's going to do a
better job.
better job or show up or look at the homework or get the
answer, right? And that becomes a problem. I've heard a lot
of people talk about transparency and ultimatum doesn't
make anything.
make anything any more transparent at all. It just changes
the
in the numbers of the votes at the end when it's time to
vote. If we really wanted to have more transparency, we
would do what I've been advocating for years now and
actually have a year-long budget.
actually have a year-long budget process actually have the
data transparently.
data transparently delivered to the public because not
doing so. And just having more votes equal a, uh, Passage
doesn't lead to the transparency or accountability that
people are
Talking about. Now, is there an argument to be had about
raising a threshold?
raising a threshold when we're talking about bonds? Uh, and
other larger matters.
other larger matters? Absolutely, I think what we've seen.
again in this body is that
A.
A 2/3. Might be something where it doesn't move anything.
You get nothing passing and nothing getting fixed 3.
You get nothing passing and nothing. Getting fixed 3,
fifths. Might be more acceptable. There might be something
where you're outlining a process.
where you're outlining a process along with the vote that I
think I'd be more in support of but if
think I'd be more in support of. But if it's just about
saying, hey we need a certain number to pass.
saying, hey, we need a certain number to pass. Um, I just
think there needs to be more homework done and it'll be
interesting that this ordinance seeks to pass with just a
simple majority while asking everyone for a larger majority
for a lot of other matters. Um, but yeah, I I think that
there's more work to be done. I am glad it's being brought
up. I do think we need to get better. It's not only the
executive branch that needs to get better at this process.
So does the legislative and I think that requires us being
more Eng
more engaged and outlining codifying processes not just
vote counts. Uh that's why I would not be in support at
this time. Thank you chairman.
Okay, thank you Alderman. Goodson followed by Alderman, C.
Okay, thank you Alderman. Goodson followed by Alderman, CEO
Lopez.
Thanks so much share. Um, I think everyone here has uh, the
understanding that we need to
the understanding that we need to be checked on the debt.
We take how we take it and how we pay it back? I'll say
that, this ordinance was not my first
that this ordinance was not my first choice and older
person Quinn,
person Quinn um, knows because even as a few days ago, I
couldn't tell him.
couldn't tell him how I was voting on this. Um, today I do
truly feel that, you know, Bond authorizing Bond can be a
smart debt instrument, it's no doubt.
Doubt.
Doubt funded really amazing things in our city. And
therefore,
for the past few months, I've worked with the
administration on.
administration on an amendment that I had filed that would
set in my mind. Moderate guard rails on how we pay back.
set in my mind. Moderate guard rails on how we pay back our
bond debt over time. Basically limiting the
bond debt over time basically limiting the interest from
what we saw, that could be projected in this last
authorization, where the projected potential interest, far
outweighed, the principal on what we were authorizing with
the bond.
I viewed.
I viewed this as a moderate route because it was a pathway
for Bond.
for Bond authorization, but in a smaller manner that gave
all of us on Council more faith that we'd be.
all of us on Council more faith, that we'd be, you know,
passing and and authorizing bond that we'd be paying back.
in a way that's beneficial to Chicagoans.
Through.
Through months of good faith and transparent negoti.
Through months of good faith and transparent negotiation. I
felt really confident that we were going to get somewhere
because it seemed like everyone at the table recognized
that we could set.
that we could set smart guard rails that were a win-win
here on.
here on Council to the administration and also for Chicago.
Chicagoans, I offered a lot of flexibility in how we could
get there, but in the again, in the end, we um, in working
with the cfo's office, we couldn't agree on.
with the cfo's office, we couldn't agree on anything that I
felt like was impactful enough to bring to colleagues. So
with this in mind, I'm
with this in mind I'm going to vote. Yes here. And I'm
going to vote. Yes. Because two
going to vote. Yes, because 2/3 at least we'll get us, you
know, potentially the kind of nighat
potentially the kind of nighat negotiation leverage that we
need in order to authorize bond with more of an assurance
that it will.
that it will be paid back in a more beneficial manner for
Chicagoans.
Chicagoans with that said, I'm going to keep EXP
Exploring ways with the CFO and the administration and how
we can have better best.
we can have better best practices to authorize debt. Um,
but this is why I'm voting. Yes on the ordinance today.
Thank you.
Thank you Alderman. Alderman, CEO Lopez.
Thank you. Um, thank you. Chairwoman I I
I appreciate the.
The discussion.
the discussion and the
Urgency to take on these.
urgency to take on these matters. Responsibly
And there's no secret that.
And there's no secret that the city of Chicago is facing
serious Financial.
serious Financial challenges. And I think that
serious Financial challenges, and I think that it is a
incumbent upon all of us to figure out a way forward.
I just
Um, concerned.
About voting on something with such implications.
About voting on something with such implications as
Alderman. Hopkins mentioned that will transcend, even the
extent of this body.
With an ordinance that did not even have.
With an ordinance that did not even have any subject matter
hearings. I do think that we can all agree.
That.
It is.
also, a
Also a pertinent conversation to have.
discussions with
the state of Illinois as well, because of the implications.
that this have
I agree out with Al.
I agree out with Alderman Irving also.
in terms of,
How?
How we got in here?
and um,
And um the need to change our ways. I mean just today.
And um, the need to change our ways. I mean just today we
talked about
How we?
How we may even need to fund?
This huge settlements.
With.
With potential deaf funds.
Yet the same stewards of this ordinance.
Yet the same stewards of this ordinance, often times,
continue to push for.
continue to push for bigger and bigger police budgets.
remind us all that 1 of the main issues that we have with
pensions actually comes with the Chicago Police Department.
pension the represents almost 35% of those debts.
so, I do think that it is critical for
So I do think that it is critical for us to at the very
minimum have a discussion.
minimum, have a discussion and briefings of the
implications of this because handcuffing ourselves
Will.
will not make this right?
Will not be.
Will not be good. Stewards are responsible management.
and budgeting, when we
and budgeting when we rushing on decisions because we have
certain views on the administration,
if we want to have a call,
Co equal.
partnership in this, I think it starts by
matters with adequate time.
matters with adequate time, the politicization of of such
of such a critical issue, as
Of such a critical issue as financing in a time like this.
It is irresponsible and I can lead us to serious.
It is irresponsible and I can lead us to Serious potential
harm.
to the very thing that we're
To the very thing that we're trying to do.
So, I will.
so, I will also
Uh, raise my hand.
Uh, raise my hand in support of working with alderman,
kuden.
khitan on working on ways to address the issues of
khitan on working on ways, to address, the issues of
financing including how we can pay quicker.
financing, including how we can pay quicker principle, um,
on that like Tiff.
on that like Tiff and so far but I don't think it will.
serve this. The city's best interest to look into this
rushing into something.
rushing into something without even having a subject matter
hearing without even having
hearing, without even having conversations with the state
of Illinois, that is also absent in all conversations
today.
we just handle a case because we have an infrastructure
need
for infrastructure. I think Alderman bagas have mentioned
this.
this as well. So I do think that we need to take our time
discuss the way of moving forward. And again I'm looking
forward to working with almond kuden and
forward to working with almond, kuden and others that are
interested in discussing better ways to pay to honor or
that which we should. But
that, which we should. But rushing into something for
political reasons when we are
political reasons, when we are here, at least in this, in
this cycle, trying to clean the mess that we inherited. I
find it.
find it problematic and very responsible to handcuff.
ourselves in a time like this. Thank you very much, Madam
chair.
Identified.
Identified as anyone else want to speak on this matter?
Alderman. Lee.
all right uh Alderman Reilly
Thank you, madam chair. Um,
Find it. Interesting. We're being lectured on.
fiscal responsib
Fiscal responsibility.
By someone contemplating a new bill.
By someone contemplating a new billion-dollar Tiff for his
Ward.
But I'm gonna get into some of the ISS.
but I'm gonna get into some of the issues raised by
previous speakers and, um,
previous speakers and um, to be very clear, this isn't a b
a debate over the
debate over the merits of Geo bonds. I think we all
understand
The importance of Geo bonds. Um, I'd also point out to
people who are referencing Springfield over and over again.
Uh, they also require a supermajority to issue debt. Um so
they they also are held to a higher standard than we are.
Um, I also want to compliment the Department of Finance for
the memo.
the memo they sent out. I think ostensibly to persuade us
not to vote for this.
um, but the chart that they provided us um, is illustrative
um while we see cities like La Houston,
illustrative, um, while we see cities, like La Houston and
Phoenix, requiring simple majority,
requiring simple majority vote by their legislative bodies.
Um, they go
legislative bodies. Um, they go a step further and take
this to the voters.
this to the voters, be uh, a referendum.
um, and
Um, and there are a lot of folks here who talked about power
to the people.
to the people and democracy with a small d. Uh
to the people and democracy with a small d uh and
soliciting from our constituents their input. Um that's the
best way to do it.
but,
But my concern would be.
That.
That we wouldn't see a whole lot of bonds issued. Um, if
that we wouldn't see a whole lot of bonds issued um if we
were asking our taxpayers who feel like they're under siege
and at the end of the day, this is not about a perceived
majority or minority vote on this city council. This is a
nonpartisan body.
nonpartisan body last I checked.
I think the previous speaker.
I think the previous speaker was not the previous 1. 1 of
the earlier speakers was referencing.
the earlier speakers, was referencing. Uh, the perception
that the mayor has a majority of votes on the city council.
And that there are minority of aldermen who raised concerns
about this administration's fiscal stewardship.
Um, at the end of the day, we're here.
Um, at the end of the day, we're here to vote.
On behalf of.
on behalf of the taxpayers, we serve
On behalf of the taxpayers. We serve at the pleasure of our
constituents, um, not the pleasure of the mayor.
um, and and and
Um and and and no 1 else. Um, it is our duty to the
taxpayer.
You know.
People mentioned.
People mentioned, rating agencies.
How?
How are the rating agencies looking at the city of Chicago,
these days?
Are they giving us big thumbs up on these?
Are they giving us big thumbs up on these moves? The answer
is no.
And in fact, they had something to say about the last Bond
issu.
issuance, we we put out, uh, and it wasn't favorable.
issuance. We we put out uh, and it wasn't favorable people.
um, I
Um, I can tell you I'm I'm scratching my head a bit.
When I hear people saying that.
when I hear people saying that requiring more transparency
and debate,
and debate over issuing even more debt, would somehow do
the taxpayers a disservice
That's insane.
and,
and the, the idea that this needs a
and the the idea that this needs a a subject matter
hearing, and
and and and briefings to help people understand what this.
ordinance would do. Um, unless you aren't good at simple
math and there are some folks in this room who aren't
but unless you're not good at Simple Math, you simp, this
all this does is require a 2/3 vote.
To issue debt.
Um, I don't need an hour-long briefing to understand that
in.
and either you're for this or you're against it.
and so,
and so if you're voting no on this proposal today, um, good
luck with the contortions and backflips, you're going to
need to go through to explain that to your voters. The
taxpayer who have been beaten to death
With taxes.
And debt.
Um, second highest burden in the country.
Um second highest burden in the country was mentioned. That
is absolutely correct uh, and that
That is absolutely correct uh and that is not something to
be proud of as a city.
So if you vote no on this thing don't you dare go back.
So if you vote no on this thing don't you dare go back to
your constituents in a year and a half?
When?
when you're trying to save your political butt,
And tell them that you're a fiscal steward.
Or that.
or that you're for fiscal responsibility, where they put
putting taxpayers first, those are all the buzzwords.
putting taxpayers first. Those are all the buzzwords that
show up in all these campaign mailings.
Well, this is 1 of those proofs.
This is 1 of those.
This is 1 of those roll calls that your constituents are
going to be directed.
going to be directed to look at there'll be others too.
There's been lots of bad votes here.
There's been lots of bad votes here the last year and a
half 2 years
but this is 1 of them, this tells your voters your
constituents where you stand on spending.
constituents where you stand on spending their money, their
children's money.
children's money, and their grandchildren's money,
and so,
And so I think this is a simple.
Simple vote. This is an easy. I vote.
More transparency about driving the city further into debt.
We need that and maybe this should have happened 30 years
ago.
Maybe people are questioning. Why are we doing it now? We're
doing it now because the rating agencies are stopping us
into the ground.
us into the ground.
And it's deserved.
So yeah, good luck. Telling the your con
So yeah. Good luck. Telling the your constituents. Why you
voted no on this? I wish you the best.
voted no on this? I wish you the best but I'd argue your
constituents a little bit smarter than you're giving them
credit for
so, go ahead and
So, go ahead and and vote to protect.
Fiscal irresponsibility.
Fiscal irresponsibility by voting. No, I'll be voting. Yes.
Fiscal irresponsibility by voting. No, I'll be voting. Yes,
and I encourage my colleagues to do the same. Thank you.
Madam chair. Thank you Alderman. Lee
All right.
No, you're you're fine. Um,
You know.
I listen to some of the con-vers.
I listen to some of the conversation on the way in, um,
today, and and we've had
today. And and we've had lots of conversations about um,
What it's going to take.
To get us through.
To get us through this current budget. Um, I I asked a
question just for clarification because I wasn't here
earlier.
earlier uh, with how does this Bond? Um, vote, count change
impact.
change impact. Uh, the budget, does it have any
the way I read this ordinance is that
The way I read this ordinance is that is specific to the
issuance of bonds.
and when there's bonds,
and when there's bonds associated with, because we've had,
Geo Bonds in the past tied to, uh, budgets as well.
Bonds in the past tied to uh budgets as well in the past.
Have we not? I've only been around 3 years. So I'm asking a
question.
question to anybody who can answer that question for me.
I,
Uh, Alderman IR.
Uh, Alderman. Ervin, do you recall? I don't recall seeing
bonds.
bonds and budgets, but
In your tenure, have you seen?
In your tenure. Have you seen bonds included in the city?
budget when we vote?
The, the levy components. Uh, well.
There, there are 2 components number 1, the levy.
there, there are 2 components number 1, the levy to support
whatever bond is done comes
whatever bond is done. Comes out of here and that's part of
the ordinance. That's uh,
the ordinance. That's uh that's generated. So you already
know what that repayment term is, that's why it's a general
obligation Bond.
obligation Bond, it's included in the budget process as an
expense because we know what that is when we
expense. Because we know what that is when we walk into the
when we do the bond issue but beyond that, once we once we
do it here, it's just put on as a expense and the
corresponding Revenue that's being levied, uh, via property
taxes or or whatever Revenue.
taxes or or whatever Revenue Source. We've assigned to pay
for the bond.
for the bond, got it. I just got confused because I know
the the first
the, the first budget I voted on the the Geo Bond was
passed.
passed at the same around the same time. So I wasn't sure
if they were tied together. I know we didn't do that this
last time or I just need a clarification.
last time or I just need a clarification on that.
No, no no. There are no those 2 things.
No, no no. There are no, those 2 things are not tied
together, okay, thank you. Um,
I haven't been around uh, as as
I haven't been around uh as as for as long a time as many
of my other colleagues have been.
of my other colleagues have been uh,
and I know that, uh,
We, we had a, we had a long slog of it last.
we we had a, we had a long slog of it last year, getting
the, the budget passed and I didn't vote for the
the the budget passed and I didn't vote for the 830 million
dollar Bond if she wants. I voted no on that, I thought.
that was way too big. Um,
I think my, I think many of my colleagues have made great
arguments today.
arguments today about uh, why we should
arguments today about uh why we should have to work
together more to get something passed.
together, more to get something passed. Uh,
and I can appreciate the, the
And I can appreciate the the urgency just given everything
that we're facing.
that we're facing, uh, but I have real concerns about the
potential of this legislation.
potential of this legislation to really just kind of gum up
the gears of government. Um, our trades people rely on bond
issuances to get paid. Uh, and as we've talked about,
issuances to get paid. Uh, and as we've talked about here,
too, as well, uh, infrastructure.
too, as well, uh, infrastructure, that, that needs to be
fixed.
had to came late today because my son got into a little
fender bender today, um, because because
fender bender today. Um, because because a curb wasn't
fixed in our in our Vita. He popped
fixed in our in our Vita, he popped the sidewalk. Um so I'm
feeling the, I'm feeling the the infrastructure.
feeling the I'm feeling the the infrastructure piece of
that for real today. You guys, um,
You know.
I'm just,
I'm just really not sure that we're going to be able to get
to 23 agreement. Actually, I didn't get a chance to take a
look at it.
look at it, but I would love to know how many times this
Council has.
Council has voted 34 votes, or more.
Council has voted 34 votes, or more for anything. That
wasn't just an honorific resolution. Um,
I'm a.
I'm I'm a pragmatic person when it comes to this stuff. Um,
I want more oversight. I want for their,
I want more oversight. I want for there to be more
transparency. Um,
I'm still pretty conflicted about where I'm going to end up
on this vote, you guys. But this is a, this is something
that I would love to have a little bit more time to think
about and I know it. Yes, I can do math. Um,
but I think that it's not just a question of simple math
about,
about the number of votes that it's going to take, there's
lots of implications to this.
lots of implications to this, um,
And respectfully.
And respectfully, I I would I would love some more time.
uh, to talk through this because 2/3 is a really high.
to talk through this because 2/3 is a really high. Uh, it's
a really high bar. Um,
And I know what other cities are doing in other cities are
not doing it. Um,
I'm just really concerned about.
I'm just really concerned about the the ramifications long
term, um, for Action like this to be taken.
That's all I've got. Thank you. Thank you.
Alderman, Taylor.
Thank you, madam chair. Um,
a lot of this.
a lot of this seems disingenuous
it really does.
It really does is this really?
About.
about us having control because I remember,
The last Administration.
the last Administration when Anthony bill was talking about
being more,
being more transparent, seeing having more control,
People didn't want to vote on it.
but,
But now we have to do something.
And out of all.
and out of all of the things that have been said,
I agree with Alderman OA. Saying there needs to be
I agree with Alderman OA. Saying, there needs to be more
conversation with everybody.
The administration shouldn't pick.
The administration shouldn't pick and choose who they want
to talk to.
We are all co-workers and we all owe it to the citizens of
the city of Chicago.
the city of Chicago to be able to do. What's right?
By all citizens no matter where.
by all citizens, no matter where you been
I think.
I think it's it, it's funny.
that some of the
That some of the same folks.
Who want to see this? Voted to sell the parking meters?
and while you say that's, that's
and while you say that's that's Bridge under the water,
it's not
Some of these same folks voted.
to kick the
To kick the bucket down of the pincher payment.
But now it's the sky is falling again. As
but now it's the sky is falling again, as usual and
ultimate Quinn with all due
ultimate Quinn, with all due respect, this was not
anything. I heard about before.
anything. I heard about before today, I would like to have
a conversation with you.
had a conversation with you. Um, I I would have liked for
us.
us to to get more and what your thoughts were behind it.
And that's me being genuine because that's what I try to
do.
when I, when I do this role,
absolutely, my constituents are not stupid but also my
constituents have seen time and time. Again the city.
constituents have seen time and time again, the city take
care of 1 side of town and say, forget the other. And now
that seems to be a change in a little bit.
that seems to be a change in a little bit and people are
having hole fits cuz we're actually taking care of those
communities who normally get counted out.
say what you want to say about all the woman Taylor
Say what you want to say about all the woman tailor, I've
always been open to the conversation, to talk to any and
everybody. And if we do more of that,
everybody and if we do more of that, then we could have a
city, we are proud of
yes, I
Yes, I want to have the conversation about.
yes, I want to have the conversation about rightsizing
government because I do feel like in some of these
departments we overspend, but let's not just look at 1 part
of our budget deficit. Let's look at the whole picture.
Thank you, madam chair.
Thank you, alderman.
Thank you Alderman. I will go to non-members now. Alderman
Tobar
to bars.
Thank you. Madam chairman.
Thank you. Madam chairman, I
I want to thank, uh, Al.
I want to thank uh, Alderman Quinn for taking the lead on
this. I'm in favor. I support this ordinance. I believe it.
makes sense for Chicago. Um especially and we're seeing
other cities in the US doing it. But it, it sets the
other cities in the US doing it. But it it sets the the
city of Chicago on the right path and it's a good
government ordinance. Um, it's the right.
government ordinance. Um, it's the right thing to do for
our city and as Alder,
our city. And as Alderman, we're elected to be responsible
for
taxpayers and their tax dollars, and
This increasing the threshold will.
This increasing the threshold will will help us address the
financial challenges.
financial challenges that that we're facing here in the
city such as the pension
city, such as the pension. And so we, we need to be having
more conversations with more Alders when we're discussing.
more conversations with more Alders when we're discussing
anything that is pertaining to the city.
anything that is pertaining to the city finances. So, I I
want to thank Alderman Quinn for his leadership. Thank you.
Madam chair, almond.
madam chair Alderman. Napolitano
Thank you, madam chair. Uh, appreciate the opportunity to
speak on this be.
speak on this behalf. Uh, I know, I'm not a member of the
committee but I, I like that. I get the
committee, but I, I like that. I get to at least voice my
opinion.
Um,
I uh, tip my hat to Alderman, Quinn. I think
I uh, tip my hat to Alderman Quinn. I think this is the
definition of good government. And uh, I'm proud to
definition of good government and uh, I'm proud to support
it. Um,
I have to say over.
I have to say over the past 4 years, I don't feel like we
enter into a budget talks anymore and August September and
October. Um, each year feels like we're we're stepping into
deficit.
deficit or or debt talks. Um and and that's
deficit or or debt talks. Um, and, and that's not the way
that it should be. We should be working budgets to make the
city of Chicago Prosper, a little bit stronger and do a
little bit better.
little bit better each year. Um, couple of my colleagues
have already mentioned.
have already mentioned that as well as myself as I'm
worried um, at what we're leaving the future.
worried um at what we're leaving the future generations of
Chicago. Uh, what
of Chicago, uh, what Chicago's destined to become or or to
be honest.
be honest, uh, or what we're
destined to not become due to our our debt and our, our
down our
down, our constant, uh, downgrades
um,
Um, what kind of gets me to in here too? Is it's it's
Um what kind of gets me to in here too? Is it's it's been
mentioned a couple of times and and that
That many people don't show up to these budget talks.
that many people don't show up to these budget talks and I
think it's more important that we should be talking about
even when
Even when you do show up, um, it should be discussed that
you're not heard.
Um, simply showing up, doesn't mean you're hurt.
as the numbers increase in our votes, the accountability
for the survival of our city increases,
we showed up last budget with large numbers.
we showed up last budget with large numbers and Concepts,
which force the administration to recalculate a budget.
Um, and retune
were 300 million.
Were 300 million in property, taxes after 3 revisions down
to zero.
um, because
The number of people that came out and had a had an
opinion.
Changed the concept of the last budget.
Um, increasing the number.
Um, to pass a budget forces, others to be heard as well.
Um, to pass a budget forces, others to be heard as well as
being held accountable.
I don't see how.
I don't see how this could be bad government or holding
more people.
more people accountable for this decisions made on what
we're doing with our City's budget. How could this be bad
government?
Um,
you know, in, in short of it,
This can only be seen as good government when 2/3 of
council needs to be.
council needs to be on board with how our budget is
managed. It's simply a lot better than
2.
26, persuadable people.
I just, I think.
I just, I think there's no reason we can't take this step.
I just, I think there's no reason we can't take this step
forward to make our city A Little Bit Stronger.
forward to make our city a little bit stronger as well as
hold a lot more people accountable.
hold a lot more people accountable for the decisions made.
Or.
Or our failures in this body. And how we're
Or our failures in this body and how we're spending money or
our debts or our downgrading. So I I fully support this.
To Alderman Quinn and all the other co-sponsors on this.
To Alderman, Quinn and all the other co-sponsors on this. I
think this is
Where Chicago?
where Chicago should be going as far as becoming better in
government and and, and making up for a lot of mistakes
that we made in the past.
that we made in the past that many of you have been here
trying to fix, I truly
trying to fix. I truly believe. You're trying to fix it. I
just don't think
don't think we've gone down the right path with a lot of
these decisions we made.
these decisions we made in my short ten years here. We
could do this better. So thank you for the opportunity to
speak Madam chair.
Thank you Alderman. Um, I intend to call a roll. Call vote
on this matter, but before,
on this matter. But before I do, I wanted to first. Thank,
uh, Alderman Quinn for, uh, putting forward.
uh, Alderman Quinn for, uh, putting forward this, uh,
Uh, ordinance. And I know it didn't think I was going to
hear.
it in committee but uh here we are.
it in committee but uh, here we are. Um, but I, I want to
say that, you know, I
I think we're moving.
I think we're moving in the wrong direction in the first
place.
Uh, and when you look at section 1B,
uh, and when you look at, section 1B of the ordinance,
um, we're actually setting a precedent here, where
Um, we're actually setting a precedent here where we're
saying that.
We?
we cannot resend or
We cannot resend or amend this ordinance.
Where have we ever done that?
An ordinance has always had to be ability to be amended.
An ordinance has always had to be ability to be amended or
resend it. Uh, we're basically.
resend it. Uh, we're basically casting something in stone
and we're never going to have.
and we're never going to have an opportunity to revisit it
or relook or look at it. So I have a problem with that.
I think.
I think the second Point, um, which Alderman viegas
actually addressed, is that I think we're putting the cart
before the horse.
um, most of the cities that have, uh, been
Um, most of the cities that have uh, been discussed today
have you know, very elaborate Pro.
have, you know, very, elaborate processes and all of those
cities have City charters.
We do not.
and if we want to,
and if we want to spend our time and pursue a city Charter,
so be it, I mean that's another discussion. But
so be it, I mean that's another discussion but we should
not start legislating as if we.
not start legislating as if we have 1.
so, um,
So, um, I just wanted to express my thoughts on this.
So um I just wanted to express my thoughts on this and with
that, we will take a roll call.
Vice chair Conway.
Alderman.
Alderman laspada.
Alderman hop.
Alderman Hopkins.
Alderman Hall.
Alderman Hall know.
Alderman Mitchell.
Alderman Harris.
Alderman. Harris know.
Alderman Beal.
Alderman. Lee.
Alderman Ramirez.
Alderman Quinn.
Alderman Lopez.
Alderman Moore.
Alderman. Curtis
Alderman. O. Shea
Alderman. OSHA
Alderman, Taylor.
No.
Alderman MOS.
Alderman Mosley.
Alderman Rodriguez.
Alderman.
Alderman Scott.
Alderman, CEO Lopez.
Alderman brunette.
Alderman. Talia Farrell.
Alderman, Cardona.
Alderman waguespack.
Al.
Alderman Rodriguez. Sanchez know.
Alderman Quezada.
Alderman. Vagus.
Alderman mitts.
Al.
Alderman spaz.
Alderman Vasquez.
Al.
Alderman. Reilly
Alderman. Kuden.
Alderman. Martin.
Alderman Silverstein. Yes.
President pro.
President pro Tim Nugent.
Chairman Del votes, no.
There were 16 years and 17 Nays.
There were 16 years and 17 Nays this motion fails.
Um, Alderman, Martin.
Um, Alderman, Martin asked me to uh, take his item out.
Um, Alderman, Martin asked me to uh, take his item out of
order. So we're going to uh he has a, you have a committee,
you have to chair, so we're going to move.
you have to chair. So we're going to move to item number 6.
from the
From the Department of planning and development.
and,
And ordinance concerning the execution of a Redevelopment.
agreement and issuance of tax increment.
agreement and issuance of tax increment financing Tif funds
to Black Ensemble.
funds to Black Ensemble. Theater Corporation for
improvements at the Black Ensemble Studio Theater.
improvements at the Black Ensemble Studio. Theater located
at 44440 through 44.
at 44440 through 4450. North Clark Street in the 47th Ward.
We're joined today by.
We're joined today by uh Jeff Cohen.
I,
I need to thank you too, for Friday.
Um, Jeff Cohen, Deputy Commissioner from the Department.
um Jeff Cohen, Deputy Commissioner from the Department of
Planning and Development uh who will give this
Planning and Development uh, who will give this
presentation
Jeff.
Excuse me before you start um, Alderman Bern.
Excuse me, before you start. Um, Alderman Bernett wants to
participate by Me by remote due to rule 59. Can I get a
Approval.
Approval to allow him to participate. So,
Approval to allow him to participate. So moved by Alderman
laspada. All those in favor signify by
laspada. All those in favor. Signify by saying I oppose and
the opinion of the chair of the
the opinion of the chair, the eyes have it, um,
Alderman Bernett.
Okay, Mr. Cohen, you make proceed?
Uh, thank you Sherrod, Dello.
Uh, thank you Sherrod. Dello H. Good afternoon chairman
chairman dowel and his team members of the committee on
finance for the record. My name is Jeffrey Cohen. Deputy
Commissioner within the department of planning and
development.
Development. I am here today to request your approval of a
Redevelopment agreement between the city and Black Ensemble
Theater.
Theater Corporation for the purposes of authorizing the
use.
use of up to 2.4 million dollars in Tif funds.
use of up to 2.4 million dollars in. Tif funds for the
proposed activation of dark vacant space.
proposed activation of dark vacant space within the current
Black Ensemble Theater property.
The proposed project is.
The proposed project is located at 4450, North Clark within
the Uptown.
the Uptown community area within the 47th Ward and Clark.
the Uptown community area within the 47th Ward and Clark
Montrose, TIF district uh Alderman. Martin
Montrose, TIF district, uh Alderman. Martin has provided a
letter of support
uh, shown here is
Uh shown here is the neighborhood context. The project is
located on Clark Street.
located on Clark Street between Sunnyside and Montrose
Avenues. The area is well served by public transportation
with several bus lines.
with several bus lines and walkability to the Wilson Avenue
Red Line. There are also many nearby businesses, that would
be supported by this Edition.
uh,
Uh, shown here is a street view of the existing black
enthal.
enthal Ensemble, Theater building, uh Black Ensemble
Theater was originally opened in 1976 in a nearby.
Theater was originally opened in 1976 in a nearby space on
Beacon Avenue. Uh, however in 2011,
on Beacon Avenue. Uh, however in 2011, uh, opened up this
larger improved theater,
improved theater uh and was unable to complete the space
that is
That is part of this proposed project.
Here are Interiors of the existing space.
The construction work to be performed will turn this
currently.
currently dark unusable space into a smaller black box
theater.
theater and rehearsal space.
The applicant Black Ensemble. Theater Corporation plans.
The applicant Black Ensemble, Theater Corporation plans to
activate the approximately 5000 square feet of space.
activate the approximately, 5000 square feet of space
located on the second floor into a 15.
located on the second floor into a 150 seat blackbox
theater and a rehearsal Studio.
uh, in addition to expanding on the
Uh, in addition to expanding on the current performance
offerings, the 150 seats performance.
offerings, the 150 seats, performance space, and new
rehearsal, space will assist with incubating.
rehearsal, space will assist with incubating, new play
rights, host readings and workshops and
rights, host, readings, and workshops. And also, uh, assist
production.
production process readings and workshops for Productions
and progress.
and progress, as well as allow for additional programming
support for the theaters mission.
Black Ensemble Theater has a has been a community anchor
for almost 50 years with over.
for almost 50 years with over 150 performances annually,
drawing visitors from across the city, to the Uptown
community,
uh, in addition, they also partner with the Chicago public
schools and Community organizations to provide impactful
youth programming.
A black.
A Black Ensemble. Theater Corporation was selected as an
awardee of a medium Community Development, Grant during the
second round of 2024,
the second round of 2024, the funding amount of 242.4.
million in support of the 4.9 million total project cost.
million in support of the 4.9 million. Total project cost
was approved by uh the Tif review, Tiff request Review
Committee in May of 2025 and CDC in June of 2025. Uh the
project is anticipated to begin in the third quarter of 25
and be completed within the Q3 of 2026.
Here are the spa here. Is the space upon completion? The
first picture is a space that will be developed into a
rehearsal room and the section Picture Show.
rehearsal room and the section picture shows a play being
performed in the new Studio Theater.
uh, the project budget uh, is that
Uh, the project budget uh is that is uh totaling of 4.9
million of this.
million of this, the city intends to provide the developer
with Tiff assistance in the amount.
with Tiff assistance in the amount not to exceed 2,434.
with Tiff assistance in the amount not to exceed 2,434,955
or 49% of the total project budget. The remainder of the
Project funding is coming.
Project funding is coming from state federal and a Illinois
Arts.
Illinois. Arts Council, Grant, all grants have been secured
the
secured. The majority of project funds will be spent on
hard cost constructions for
constructions for the vacant space.
uh, the
Uh, the development team consists of Black Ensemble Theater
Corporation. Morris architect planners ugama as general.
Corporation. Morris architect planners ugama as general
contractor as well as Taff law firm and BMO Harris.
the Tif assistance in the amount, not
The Tif assistance in the amount, not to exceed 2.4 million
or 49% of the budget.
or 49% of the budget will be provided as from area wide
increment in the Clark.
increment. In the Clark Montrose TIF district, the funds
will be dispersed as a reimbursement.
will be dispersed as a reimbursement and a structured as 3
Milestone payments at.
Milestone payments at 3060 and 90 completion with the
remaining 10.
remaining 10% of funds issued at certificate of complet.
remaining 10% of funds issued at certificate of completion,
the project will also have ongoing operations
The project will also have ongoing operations covenants,
operation and occupancy covenants that Ensure
operation and occupancy covenants that ensure the developer
will continuously operate the project.
will continuously operate the project according to the
terms of the RDA.
Uh, this will also be subject.
Uh, this will also be subject to typical construction
compliance requirements for prevailing.
compliance requirements for prevailing wage mwbe and City
residency.
Uh, the expansion will strengthen will strengthen uh, the
economic Vitality of the area as well as allow Black
Ensemble Theater to continue.
Ensemble Theater to continue to serve as a community
anchor.
The new theater.
The new theater patrons will frequent area restaurants and
other business.
other business businesses, and the project is additive to
the goals and Obi.
the goals and objectives of the clock mantras TIF district.
The Studio Theater space will also allow for an expansion
of the youth programming that Black Ensemble. Conducts in
partnership with Chicago public schools, and local
community organizations. There is programming during the
school year in theater production, as well as their summer
programming, where young people are hired as interns, uh,
The Studio Theater. Uh, will also increase the number of
production stage annually from approximately.
production stage annually from approximately 150 to 180.
dpd is in support of this project and we ask for the
Dpd is in support of this project and we ask for the
committee's favorable consideration. I'm also joined by the
Black Ensemble development team, including Jackie.
Black Ensemble development team, including Jackie Taylor
president and CEO of Black Ensemble Theater. Uh uh be
Black, Ensemble board member
Black, Ensemble, board member, Helen Schiller and Moroni of
recent Johnson research.
of recent Johnson research Marcus Evans of yuja and Liz
Butler of
of tasks. We are half happy to answer any questions.
Uh, thank you very much. Uh, Jeff, uh, former Alderman
Schiller, I just wanted to make sure that was acknowledged.
Um,
Let's see. Where am I going with this?
Um oh, I wanted to apologize to
Um, oh, I wanted to apologize to, uh, the former Alderman
and Al
also to Jackie Taylor and her group. Uh,
also to Jackie Taylor, and her group. Uh, you've been
waiting around for a long time. Thank you.
waiting around for a long time. Thank you, uh, started
questioning, with alderman viegas,
questioning with Alderman viegas, uh, with closing by
Alderman Martin.
thank you, madam chair, and congratulations to my colleague
from the 47th Ward. My only question is, I see that the
slide had MW? Are we also including veterans?
slide had MW? Are we also including veterans this part of
that, um, part of that requirement.
that. Um, part of that requirement veteran business
Enterprise
uh,
I would.
I would ask the development team to respond to this
question. I mean, I would assume that we are only bound
question. I mean, I would assume that we are only Bound by
the wmbe portion of this for this re.
the wmbe portion of this for this re development agreement.
Um what um, why
Um what um why why is that it's a city city ordinance that
passed
that passed that now requires uh, veteran business,
Enterprise program, as it relates to procurement.
opportunities.
Uh, I'm not sure if that actually is in reference to
construction comp.
construction compliance. I know that it was for CP or for
other vendors, but we can respond to the chair and make
sure that we are acknowledging that and yeah, yeah, I need
clarification on.
clarification on that because that's not what the intent of
the ordinance was it was to allow for any procurement
Construction Services.
Construction Services goods, and if I need to amend it, I
need to do that quickly. So
need to do that quickly, so thank you.
and Jeff, could you let us know the
And Jeff could you let us know the answer to that before we
vote on this on Wednesday? Absolutely. Okay, Alderman.
Martin?
Congratulations.
Thank you, chair. Good afternoon.
thank you chair, good afternoon colleagues and thank you to
all of you for um allowing uh me to go out of orders. We
head.
head over to the Ethics Committee after this, um,
acknowledge Jackie Taylor, uh, is a tremendous
to acknowledge Jackie Taylor, uh, as a tremendous leader
for this organization, Uptown in the entire
this organization, Uptown in the entire city. Uh this is a
real gem in our uptown.
Uh, this is a real gem in our Uptown Community. Um, if
anyone has been to Clark Street North of Montrose, you
know, that we've got some work to do in terms of,
that we've got some work to do in terms of feeling, some
vacant storefronts bringing more development more.
generally to that Corridor, that prompted the Clark Street.
Corridor study that identified lots of improvements uh over
a several Mile Stretch and this is going to be the Hub uh
upon which all the activ.
upon which all the activity um in that area uh builds from.
Um this has been a permanent location at that site. Since
2011, the city has supported a number of occasions. Um I
hope that we're in a position to continue doing so because
we all know how much Jackie, you and your team continue to
support our.
support our uh neighborhood and city. Um, so
Thank you again for allowing.
thank you again for allowing us to go out of order and I
would ask for your favorable consideration. Thank you. Uh,
thank you. Uh, Miss Taylor. Is there anything you'd like to
add or say since you are?
add or say since you are here?
Madame, chairman, I
Never.
I never turned down.
I never turned down the opportunity.
To take.
To take the microphone.
so,
This studio theater is.
so, vitally important
Black.
Black Ensemble Theater serves 10,000.
Black Ensemble Theater, serves 10,000 young people a year.
This Studio Theater will allow us.
This Studio Theater will allow us to serve more.
Because our community's special.
Because our community's specialy.
The young people.
Need.
Need help.
Our mission is to eradicate racism.
Where we're all equal?
As 1.
And we teach our young people.
How to navigate racism?
How to maybe turn.
How to maybe turn turn it around.
In terms of personal.
Opportunities.
And the studio.
And the studio is needed.
So, I'm
So I'm asking, please Council.
Say yes.
I feel like singing, no, I'm kidding.
Thank you. Thank you. Madam chairman. Uh, thank you uh,
Miss Taylor. Um, I also want to acknowledge that we have a
support letter in it from uh alderman.
support letter in it from uh Alderman clay. And I know her
staff are just
her staff are just the order is here on her behalf. I want
to thank you for support
thank you for supporting this project as well. Can I, uh,
uh, Alderman Vasquez? You're moving to make a motion to do
pass.
pass or you have a question? Uh, I had a statement and yes,
I would absolutely move at the end of it. Thank you,
chairman. Um, I think I also share some of that Tiff and
absolutely in full support.
absolutely in full support um, for some of that work, I
don't know if we had gotten a letter to you or not but just
in case want to make sure it was on the record. Um, I
thought I thought she was going to say that she's never
going to turn on the opportunity to get this money.
gonna make sure
We're making sure you're getting this money. Uh, I
appreciate all the work that you all do. Um, not only in
the long term goal of ER
the long term goal of eradicating racism but really helping
to address.
to address some of the segregation we've had in the city.
historically. So to be able to have such such an
institution on the north side of town, I think, opens up
more Avenues and opport
more Avenues, and opportunities as well. And so, um, really
glad and want to commend all the remark for all his work as
well. Thank you.
well. Thank you all so much and I'll be in
And I moved to pass.
And I moved to pass motion made by Alderman Vasquez, moving
to pass.
to pass on this item, all those in favor. Signify by
saying, I
I I opposed and the opinion of chair of the eyes,
have it and the do pass recommendation was reported
and the do pass recommendation was reported out at the next
city council meeting Mr. Cohen, thank you so much.
Our next item going back.
our next item going back to the regular order of business
item number 3,
item. Number 3 is a communication from the mayor's office.
item. Number 3 is a communication from the mayor's office,
concerning the appointment of Michael belsky.
concerning the appointment of Michael belsky as the city
controller.
Is Mr. Belsky here.
Wow.
Okay. We've been joined by, uh, Michael.
Okay, we've been joined by uh, Michael belsky appointee for
the city.
the city controller position, Mr. Bilski,
I think, uh,
can I introduce my?
Can I introduce my, yes?
You can tell us who's in the Box.
You can tell us who's in the box with you, okay?
I just want to introduce, uh,
my staff 1 of the things that, uh, they
My staff 1 of the things that uh they tried to prep me for
a question is why do you want to work?
a question is why do you want to work in this job and um 1
of the things I would say after,
of the things I would say after 5 weeks is because of the
individuals, you see?
individuals. You see here uh Joe Flores
individuals you see here. Uh, Joe Flores first deputy
Elena Herman.
Ela Herman, a managing deputy.
Uh, Chuck bill.
Uh, Chuck Billows. Deputy controller Ramona.
Uh Chuck Billows, Deputy controller Ramona. Alahan deputy
and Karan coca, deputy director and
and Karan coca, deputy director. And if you will, um,
there's an Athenian.
there's an Athenian oath. Uh, and the last sentences is
that thus in all these ways we will,
That? Thus, in all these ways, we will transmit, not only,
not less, but greater better.
not less, but greater better and more beautiful city than
was when we came here. And I, I believe that about these
people, so
Um, good morning, uh, chairman Dal.
Vice chairman Conway.
uh,
Uh, and distinguished members of the committee on finance,
thank you.
Thank you for the opportunity.
uh, to
Uh, to appear before you as you consider my nomin.
Uh, to appear before you as you consider my nomination for
City controller.
I was honored to.
I was honored to have spent time with many of you over the
last few weeks.
People of Chicago are fortunate to have such capable and
devoted public servants.
for those who have not met, I hope to
For those who have not met, I hope to after today have that
opportunity.
so, the as you know,
the city controller leads the department of
the city controller leads the Department of Finance with
many responsibilities including Revenue collections,
Utility Billing.
Utility, Billing, tax, and parking enforcement
administering employ.
administering, employee payroll benefits to safety.
employee payroll benefits to safety risk management and
accounting and financial report.
accounting and financial reporting.
The department also collects.
The department also collects and disperses City revenues
and all funds required.
and all funds required to be held in custody, by the
treasurer.
Our.
Our goal is to perform its core operations.
Our goal is to perform its core operations efficiently,
while being transparent and abduct.
while being transparent and abduct adopting policies that
take into consideration.
take into consideration any challenges faced by City
residents and businesses.
I don't take lightly the fiducie.
I don't take lightly the fiduciary responsibility. We have
to the citizens of Chicago.
to the citizens of Chicago and look forward to working with
this body as we strive to improve the services. We provide.
If you indulge me, I would like to share a bit about.
If you indulge me, I would like to share a bit about myself.
I moved to Chicago when I was 17.
I moved to Chicago when I was 17 years old and about
years ago, that was about 20 years ago, I'm just
prematurely Gray.
I,
I lived in the city from age 17 to 19. I moved to the
suburbs due to family reasons and then returned 5 years
ago. And I'm here to stay.
Living in this city.
set the
Set. The trajectory of my life's work. My idea of a city
was the
the Bronx where my parents were raised and Detroit where
the Bronx where my parents were raised and Detroit, where I
spent my formative years from 11 to 17.
I watched both places decline.
I watched both places decline, I not only witnessed, but
experience.
experienced firsthand the scourge of job losses disc,
discrimination segregation racial, ethnic and religious
hatred. All of this Bo
hatred. All of this bothered me greatly by contrast.
Chicago is a much more prosperous City but is that you are
all well aware.
This city.
This city faces, many of the same challenges. I mentioned
previously.
This motivated me to pursue.
This motivated me to pursue, uh, undergraduate degree in
urban.
urban studies from Lake Forest College and a master's.
urban studies from Lake Forest College and a master's in
public policy with an emphasis on public.
public policy with an emphasis on Public Finance at the
University of Chicago. I pursued this area of study because
of Professor once.
of Professor once said to me, if you want to understand
local government, you must understand Public Finance.
Upon graduating. I embarked on a 35 year care.
Upon graduating. I embarked on a 35 year, career devoted to
helping cities.
My expert.
My expertise over those years is fiscal management.
My expertise over those years is fiscal management and
budgeting pension reform economic.
budgeting pension reform Economic Development and
environmental social and governance issues. I started my
career at Northern Trust in the municipal Bond department
where I helped cities raise Capital Cities County School.
where I helped cities raise Capital Cities, County Schools,
special district through, issuing debt.
I then accepted a position as the head of Public Finance at
mezro Financial where I did the same.
mezro Financial where I did the same along with other
people.
uh, the bulk of my career was spent at Fitch ratings and
that's where I went from mezzero. That's 1 of the 3 major.
that's where I went from mezzero. That's 1 of the 3, major
Bond rating agencies. I worked there for 16 years. I
oversaw a 100 municipal.
oversaw a 100 Municipal Bond analysts. Uh, these people
rated
a creditworthiness of cities.
A creditworthiness of cities, counties States, housing
authorities, higher education.
authorities, higher education, mass transit and publicly
owned utilities.
owned utilities to name a few
I was responsible for business.
I was responsible for business development, support staff
profit loss. Strategic planning criteria development.
profit loss, strategic planning criteria development, uh,
to name a few of the responsibilities.
to name a few of the responsibilities 1 of the
accomplishments though. I'm most proud of is
accomplishments though, I'm most proud of is the addition
of best financial management practices.
of best financial management practices as a rating
criteria. So in the past, the rating agencies would look at
your economy, your finances, your budget, uh, for instance
and debt,
after studying the low level of defaults, uh, we concluded
that management and best practices drive all of these other
other factors such as long-term revenue and
other factors such as long-term, revenue and expenditure
forecasts debt planning pens.
forecasts, debt, planning, pension, funding efforts and
long-term capital budgeting.
the category of management is now weighted in the rating
assignment and has caused local governments to
assignment, and has caused local governments to adopt, best
management practices.
under my
Under my leadership, the department, grew by 46%. Um, we
also when we acquired a rating agency in Chicago became
head of that office. Uh, during my time I was named 3
head of that office. Uh, during my time, I was named 3
years in a row by Smith's research and ratings review as
the top executive at a rating agency.
Uh, while working there.
Uh, while working there though and working in in uh credit.
analysis and ingrained to me that when preparing financial
statements
The key pillars to gain.
The key pillars to gaining public trust and transparency
are transparency.
are transparency, accuracy and accountability to me the
are transparency, accuracy and accountability to me. The
actor is the people's document is the score.
actor is the people's document is the scorecard of the
budget. If it's not timely and accurate, it will make it
difficult for all of you to do your job and gaining the
trust needed to construct.
trust needed to construct future budgets.
if confirmed as controller, I will continue to prioritize
these pillars across the entire department.
And maintain clear.
and maintain clear lines of communication with all of you
so that our financial practices are accessible and
understood. Not.
understood. Not just by this body. But by all we serve
after working in the bond industry, I pivoted to
After working in the bond industry, I pivoted to Academia
teaching a class on municipal.
teaching a class on Municipal Finance to graduate students
in public administration and public policy at Northern
Illinois.
Northwest.
Northwestern and University of Chicago.
I also start.
I also started and ran a research center on Municipal
Finance.
Finance, uh, at the University of Chicago, the center.
focused on the fiscal, sustainability of cities and states,
focused on the fiscal sustainability of cities and states,
uh, during my tenure, we studied, how cities dealing with
Legacy liabilities such as pens,
Legacy liabilities such as pensions Fair during the Great
Recession and Co 19,
1 thing. I'm proud to say as many of my students Walk The
Halls of this building and the halls of many of our sister
governments. And I would say this that while some are piss
pessimistic about our future, I'm not having encountered
uh, the commitment and intelligence of these young
the commitment and intelligence of these young people.
I also served as a part-time city council member and mayor
of Highland.
of Highland Park from 1995 to uh 2011.
of Highland Park from 1995 to, uh, 2011, uh, where we
worked on a lot of innovative Pollock,
worked on a lot of innovative policies that I think are
still, uh, of interest to, to Chicago affordable housing
Environmental.
environmental sustainability, Public Health, Economic
Development,
Development promoting the Arts,
School Finance, uh, and infrastructure maintenance and
encouraging.
encouraging racial diversity.
so, 1 thing I would say about that, I appreciate uh you
know the mayor and the suburb
the mayor and the suburbs is not a a strong mayor with
executive.
with executive powers. That's a city manager, but I
appreciate
the importance of you being resp.
the importance of you being responsive to your constituents
because I had to do that for 16 years. So you know, when
you call me, you're going to have that.
you call me you're going to have that perspective behind
it.
um,
Um, as a mayor, I was named humanitarian a year.
um, as a mayor, I was named humanitarian a year by the
city's human relations commission for obtaining funding for
children of military.
for children of military personnel, received an award from
the US conference,
the US Conference of Mayors for developing a climate
protection plan. And an award from the, uh, American
planning.
Planning Association for having a model affordable housing.
policy
I know the the lands.
I know the the lands The Current financial landscape for
Chicago is challenging and I'm committed to helping this
body.
body navigate the difficult road ahead.
I look forward to.
I look forward to doing so in partnership with our budget
director, and
director and CFO.
if given the opportunity, I will
If given the opportunity, I will use my experience to
further streamline the department.
further streamline the department of finance's operation to
ensure that we
to ensure that we are always providing the highest quality
service to all of you.
service to all of you and the people we serve.
My vision is.
My vision is to implement innovative solutions to improve
our billing and collection.
our billing and collection processes. Ensure that
departments and vendors. Have the training and tools
necessary to facilitate.
necessary to facilitate prompt payment. I never want to
have that. Have you feel that delegate AG?
have that. Have you feel that delegate agencies and
vendors, uh, in your
vendors? Uh, in your communities are going to have a
problem meeting payroll
and we need to work with all of our departments to make
sure uh they get paid on a timely basis.
um, I also want to expand
Um, I also want to expand the use of technology to further
enhance David data.
enhance. David data-driven parking enforcement and to make
sure that we are helping to contribute positive revenues to
the city.
The decisions we make today.
Impact on how well we meet the needs of our Cit.
Impact on how well we meet the needs of our citizens in the
future.
And I look forward to.
And I look forward to working with every member of the city
council towards.
council towards the sustainable Financial Outlook. That
reflects our shared commitment to all of Chicago residents
and businesses. Thank you for allowing me this opportunity.
I'm now happy to answer any questions. Thank you, Mr.
Bulski. We'll start with Vice chairman Conway.
Thank you.
Thank you, madam. Chairwoman I would I would just say it's,
it's very clear.
it's very clear that Mr. Bulski is eminently qualified. If
not overqualified for this job. I appreciate some of the
things you said about processes you've set up in the past
and other places about fiscal health.
Clearly.
clearly at a time when that that is badly needed,
clearly, at a time when that that is badly needed here in
the city of Chicago, so on
city of Chicago. So on behalf of myself, the 34th Ward,
perhaps the city of Chicago. I appreciate you taking this
on and I'm happy to support his uh his nomination. Thank
you. Um, thank you.
you. Um, thank you, Vice chairman, uh, Alderman. OSHA
Thank you, chairman.
Good afternoon, sir.
Um,
You have a very impressive resume, um, as we talked.
You have a very impressive resume. Um, as we talk about
your work with the uh, Harris School of public policy.
at UFC
And your former position.
And your former position with Fitch ratings.
Uh, something we talked about
uh, something we talked about frequently here in this room,
as we've seen recent Dow grades,
and the
And the very significant.
Uh, fiscal issues.
Uh fiscal issues, our city faces uh for years to come.
Um, what?
Um, what would you say?
Is your top?
Is your top priority?
With.
With the Department of Finance. Your first well,
With the Department of Finance. Your first. Well, as a as
it relates to the the ratings, um, I I think 1 of the
things that's great about this department, you know, as you
know, we were merged with the Department of Revenue,
several years.
several years ago and a lot, a lot of our positions.
several years ago and a lot, a lot of our positions, our
Revenue positive and right now.
Revenue positive. And right now we have 55 unfilled
positions. Uh, that could be Revenue positive and if you
look at things like tax Auditors, parking,
Enforcement. The return is like 5 to 1.
So, for every dollar we send spend, we get
So for every dollar we send spend we get 5 dollars back.
Did you say 55 55
Did you say? 55 55? Right. And we we need to move with the
lacquer to get those.
lacquer to get those positions approved. And I think even
in the worst of times if something's Revenue posit,
in the worst of times if something's Revenue positive, you
need to, you need to fill those positions. When I got here,
we had, um, 8
Or 10 open parking.
Or 10 open parking enforcement officers, since then we've
closed. Uh, 8 of those positions, we have 8 of those
positions.
positions and we're and we're filling all of our tax
auditors.
Auditors. Um, so, you know, 1 of my goals is how can you
Auditors. Um, so, you know, 1 of my goals is, how can you
contribute? I mean, the city needs the revenue on a
continuing basis. I mean the what the rating agencies
continuing basis. I mean, the what the rating agencies will
tell you is that you need sustained.
tell you is that you need sustainable revenues that meet
expenditures. If you're always kind of running a deficit
and have to run around and Scramble for 1 time fixes,
you're always
always going to have a low rating and that's going to
affect your ability to borrow
to affect your ability to borrow. So to the extent that our
department.
our department can generate revenue on a regular basis.
department can generate revenue on a regular basis. Um, we
will do that and we and the only way we can do that is make
sure we're fully.
sure we're fully staffed.
In your short time.
Have you been able to get any of those positions?
Have you been able to get any of those positions filled?
Yeah, we're as I said, we had 10 open parking.
Yeah, we're as I said, we had 10 open parking enforcement
positions. We now have 2
um, we have, we are in the process of
Um, we have, we are in the process of of um, hiring tax
Auditors. They work with businesses that are, you know, not
paying, uh, taxes or license fees and things of that
nature. So, you know, more people, we have, the more
ability we have to, to kind of find people that, you know,
need to make good.
need to make good on their obligations to the city.
Well, for those
well, for those that are listening, and I'm sure there are
many in the building. Uh let's fill, those other positions,
they are
positions, they are Revenue generating positions and Lord
knows we need the revenue. Um,
you have a very impressive resume and, and
You know, I had the opportunity, several weeks to go to
speak with you.
speak with you and
and after that meeting, I I made a few phone calls with
people that have formally served in leadership Finance
positions in this building.
positions in this building and
every single 1 of them.
Said, we were lucky that you were willing to take this on.
And uh, I just appreciate your willingness to try.
and uh I just appreciate your willingness to try to help get
us back on track uh, in
us back on track uh in closing uh you mentioned 3 pillars
of public Trust.
pillars of public trust transparency, accuracy and
accountability.
To be very honest.
To be very honest, I think we've been lacking in that here.
And I hope that you can work with.
Director Guzman.
And CFO Jaworski.
and,
and get us back on track and specifically to identify any
Revenue generating.
Um, things to help.
Um things to help ease this pain. Uh what will most
certainly be.
certainly be a very difficult budget season.
certainly be a very difficult budget season uh Michael
happy to support you. Thank you very much. Thanks chair.
Thank you. Thank you, alderman.
Thank you. Thank you Alderman, Alderman, vas. Followed by
Alderman, Ervin.
Thank you. Uh,
Thank you uh, Madam chair.
I also.
I also echo my colleague, very impressive, uh, resume
Um, glad to hear you talk about technology.
Um, glad to hear, you talk about technology. That's
something that we've been talking about for quite some time
and
time. And I, and when we and we spoke, I gave you some
low-hanging fruit around time and attendance, yeah, which
the county has had in place for, uh,
About 4 years now and has saved the saved, the county 40
million a year. Yeah. Um and so I want you to definitely
take a look at that.
um,
Also around, uh, prompt payment. Um,
also around uh prompt payment. Um, that's tied to the Erp
system.
and the, ER,
and the Erp system, um, has not
And the Erp system. Um, has not been implemented. Matter of
fact the
Procurement office and the administration have been.
negotiating with the vendor for 2 years.
2 years to get a deal finalized.
2 years to get a deal finalized, which is just
mind-boggling, because there's Millions if not
mind-boggling. Because there's Millions, if not hundreds of
millions of dollars in savings to recognize, but the full
implementation of the Erp which in turn would allow you to
implementation of the Erp, which in turn would allow you to
modernize your department because your department was 1 of
the first departments to be included in the Erp, right?
Right. And so I hope that uh, in your new position that
you're going to push on the administration finalized this
deal. Yeah, this is just taking too long. Well we we talked
about that a little bit when we met and I I would say first
of all, on the, on the time and attendance, you know, we
did have
have I think 207 million dollars and over
have I think 207 million dollars in overtime last year. So
you know the audit is a backwards looking document. It's
like what happened in 2020 for and there was uh, cost
overruns with overtime and
overruns with overtime. And so 1 of the problems is we have
a fragmented system of timekeeping and, and our department
has been trying to test technology facial recognition
has been trying to test technology, facial recognition, uh,
you know, fingerprint recognition and
Make a uniform throughout the city, um, and I think that
will solve some of the problems. Um, the the problem is we
need to get Buy in from other City departments. So I'm, I'm
intent, you know, I'm I'm not a hammer over the head type
of guy, I I like
of guy. I I like to sit down and collaborate and and
negotiate and I think, you know, we need to get across the
department.
Departments that are not aligned with the uniform system
that the cost of that.
that the cost of that, you know, you have to realize when,
when you don't have control over that and you have costs
you are you're hurting the city. So, um, and then, um, with
respect to your question about, uh, Erp the first, uh,
module in Erp is going to be time and attendance, but it's
a year away. So my feeling is, we need to, we need to fix
that over the course of the year. So if there's ways that
we can make it more uniform if there's any sort of
technological fix that can integrate into the Erp.
We want to do that. Um, and then
We want to do that. Um and then just technology in General
on our department.
on our department on timely payment, um, you know, we're
working.
working for with um something called chai wallet.
working for with um, something called chai wallet chai pay
where people can have a 1 Stop where they can make all
sorts of payments. Uh so, you know, think about all the
sorts of payments. Uh, so, you know, think about all the
things people pay whether its finest or licenses, uh,
parking stickers or or I'm sorry vehicle stickers. So
we're, we're trying to make the customer
Experience, very easy for people to pay.
Experience very easy for people to pay and as you know,
we've had a lot of relief on F.
we've had a lot of relief on fines and fees and we hope you
know that I mean,
know that. I mean, while that's reduced, what we collect is
probably also has increased
in some way because, you know,
In some way because you know half a loaf is better than no
loaf at. All right. But
no loaf at. All right, but in general I think we have to
always be exploring.
always be exploring embracing technology on all these
processes because
processes. Because, um, it's here.
processes because, um, it's here other people are using it,
they're implementing it quickly. I think we need to figure
out ways to do that with the IT department, you know.
really see. Can we incentivize people to to to work
faster, right? So, um, I'm I'm with
work faster, right? So, um, I'm I'm with you on that. And,
and another thing to recognize, is that the number of
people,
That are of age to come.
That are of age to come into government, that's declining.
And we've also had kind of the great uh, resignation right.
Well the only answer to that is to do more.
Well the only answer to that is to do more with less and
that's technology. Yeah. Well, um,
that's technology. Yeah well um those are the Departments
need to get on board the real.
need to get on board. The reality is that technology is a
utility. Yeah we look at light and gas technology. Utility
back in the day technology was looked at as a luxury.
back in the day. Technology was looked at as a luxury, it's
no longer there. It's how we operate government. We don't
manufacture a sell, widgets we provide a service. We got to
figure out.
figure out the best way to do it. Um, given
figure out the best way to do it. Uh, given. Um, the budget
constraints.
Um, prompt payment.
so,
So uh, again another solution that techn.
So uh again another solution that technology can help with.
Um, because if I'm
um because if I'm a vendor doing business with the city and
I know that's going to take me.
I know that's going to take me 3 to 6 months to get paid
and I got to tap into
paid, and I got to tap into a line of credit, right? I'm
going to add that to my bid.
going to add that to my bid because, you know, I left to
work for the city, but I'm not going to pay
the city but I'm not going to pay to work for the city. So
um, that's something that I hope.
So, um, that's something that I hope you take a look at
quickly as well because the
as well, because the our contracts typically with the prime
and as a result of that, the sub gets paid when the prime
gets paid. And so if there's a delay to the prime, that
means that that delay to the m,
means that that delay to the mwbe firm, veteran business,
firm plus 15.
firm plus 15 days. Because the prompt payment says you got
paid within 15 days but it's usually when the city pays. So
definitely take a look at that because that'll help.
Incentivize more vend.
Incentivize more vendors to do business with us. Because
now there's some predictability around
there's some predictability around payment um and It
ultimately lowered a cost. Yeah. Uh, associated with the
service or or to Contracting opportunity, that's being
provided. Yeah, you're you're absolutely right. I mean, and
I think you know our what
I think, you know, our, what I've surmised is that we take
5 to 7
to 7 business days to process an invoice, but we need to
collaborate with, you know, not look at it as us and other
departments, it's just the city and how can we reduce that
timing? Well, if you need help, you know, giving you that
Authority, there has to be some type of streamline of this
process. Um, and then lastly um uh, being a, a former
professor.
Professor mayor fits, uh, fits rating person,
Professor mayor fits, uh, fits rating person. What's your
opinion on pension obligation bonds?
Pension obligation bonds. Um, well I I mean 1 of the issues
with them.
issues with them is
It's the sort of thing, I mean.
it's the sort of thing. I mean, what you're trying to do is
take
debt.
You know, re make it a hard.
You know, re make it a hard liability. So, pensions are a
soft liability and that's why we're in the problem, you
know, the state and other places because you don't have to
make the pension the full.
make the pension the full pension payment today, right? You
just have to make sure it's available.
just have to make sure it's available when people are
retired so you can pay pension
retired, so you can pay pensioners. So that's like a pay as
you go type. Yeah. Well well, not just even making your
actual required contr.
actual required contribution. I mean, we, you know, for
many years I mean, even the state statute has a very long
period.
to do that. I mean most places have a 30-year.
to do that. I mean most places have a 30-year fixed
amortization and so when you issue bonds, you now have the
discipline of having to pay the bond holders. Right? Every
you know, you
you know you you're on the hook to pay Bond holders every
6.
months, principal and interest, right? Interest 6 months,
principal interest 6 months
So when you, when you take the proceeds of a bond.
So when you, when you take the proceeds of a bond issue and
you put it in the pension fund, you?
you put it in the pension fund, you've reduced the unfunded
liability now.
liability. Now, what you have to do is hope the interest
earnings on what set aside in the pension fund are
adequate.
to repay that debt, right? So,
to repay that debt, right? So that's how pension bonds work
and what happens?
and what happens is if the rate of return
On the the invested fund.
On the, the invested funds for the pension fund.
Falls below. What you're paying on the debt. Now, you have
a risk of this. You have this difference that you have to
pay. So
so you know that that's the major concern.
pay. So, you know that that's the major concern you have
to, you have to hope, you know, bonds are long.
to. You have to hope, you know, bonds are long term.
They're usually, you know, when you do pension bonds,
you're usually trying to match the life of an a, a, a
career.
career, right? So 30 years, um, you know, a
career, right? So 30 years um, you know, a lot can happen
with interest rates over that time. A lot of people issued
pension bonds when interest rates were very low because it
was very easy to earn a rate of return that exceeded, um,
what you're paying on the bonds, but I would say today that
might be different, right?
that might be different, right? So yeah, I think you have
to really evaluate
really evaluate um, them as part of a whole
really evaluate, um, them as part of a whole plan to solve
your pension problem. Gotcha cool. I
solve your pension problem. Gotcha, cool. I appreciate it.
Thank you. Thank you. Madam chair. Thank you.
Thank you. Thank you. Madam chair, thank you. And thank you
for that. That was the
You thank.
You thank you for that. That was a good answer.
Um, Alderman, Ervin, followed by Alderman Curtis.
Thank you, madam chair. Um, let me say,
Thank you, madam chair. Um, let me say this, um I've had an
opportunity to speak with the uh,
opportunity to speak with the uh controller design. I think
that uh from an experience standpoint.
think that uh, from an experience standpoint uh, and from a
practical uh
practical, uh, government standpoint. I think that he meets
everything that, that we need.
everything that that we need here. Um, the fact that you
actually set on the gasb is actually interesting.
actually set on the gasb is actually interesting, um, I
don't know too many people have said on the the
don't know too many people have said on the, the Standards
Board that gives a accounting pronouncements for our uh for
our line of
for our line of work here. And I and I know that is, uh,
not an easy.
not an easy thing to do. So, uh, being a CPA myself,
not an easy thing to do. So, uh, being a CPA myself. So,
uh, I don't know how you actually like dealt with it
because I mean Gatsby work is not uh, not sexy.
because I mean Gatsby work is not uh, not sexy is not, uh,
hyper technical. So from that perspective, I think that we
are, you know,
we are, you know, in solid hands and 1 of the things that I
will say is we have to get as as I as I told you.
will say is we have to get as as I as I told you this about
back into the nuts and bolts of our
about back into the nuts and bolts of our accounting, um,
system because the things that uh, many
system because the things that, uh, many of us have been
talking about
about, um,
About um, our driven by the fact that we don't have.
about um, our driven by the fact that we don't have timely
information and if we don't have people in place to you
know, run the numbers due to
know, run the numbers, do the journal entries, for the
timely information information,
timely information, information can be accurate but if it's
untimely, it does
it's untimely, it does not help us in in the in the greater
sense. So uh, in the in making sure that
That we get.
Accurate timely information.
accurate timely information, that in my opinion is the
first and foremost goal of the
and foremost goal of the office, is to get that information
to the respect.
to the respective parties. Be there be they in Department.
uh Council whatever. Um and some of the challenges that
we've experienced about not being able to do stuff in a
timely manner I think cost us
timely manner, I think cost us money and it also cost us.
Uh, cost us poor decisions. So again,
Uh, cost us poor decisions. So, again, uh, those Focus um,
that you know,
that, you know, chairman Vie has brought up about, you
know, payroll something as simple as you know.
knowing what our payroll costs were for the month of we
just got into July the month of June. You can't answer that
question today, but the money went out the door. I know
that much. Um, so I think it's those types of things that,
you know, bringing those types of changes to the
department. I think will be very, uh, very helpful. Um,
from, you know, as I say from everything that I've seen,
and from our discuss,
and from our discussions, uh, you've been, uh, you know,
timely on responding.
timely on responding and, and getting things moving
forward. So appreciate that. And uh, I think that, uh, this
has been a great choice.
has been a great choice, uh, by by the administration. Uh,
someone that has not only um, booked knowledge, but
practical experience. Uh,
practical experience, uh, in the field and also, uh,
actually being an elected does, uh, help us too. So, you
understand the pains that uh, that we feel as it relates to
finances, and the information that we need,
finances, and the information that we need to be successful
in our job, so thank you madam chair.
in our job. So thank you madam chair. Yeah, um, thanks,
just just to address
Just just to address a couple of those issues 1 is um,
I, I do believe that you should be providing interim
Financial
financial reporting. I know there's information about the
budget that that is presented.
budget that that is presented uh you know budget to actual
on a regular basis of the council and estimates but I also
think you can provide in term un audited Financial results.
So you
so you kind of have a picture of where we are at.
so you kind of have a picture of where we are at that point
in the year. The other thing I would say is I I would lay
that on gasby about some of the Tim
that on gasby about some of the timeliness, they have.
They, they're their concept.
they, they're their concept statement is about. And and for
those of you who don't know,
for those of you who don't know, gasby sets the standards
on how your financial statements have to be prepared. Um,
they're all about account.
they're all about accountability. They you know, that's why
you have fund the counting in separate funds. Um they are a
um what do we call it a solution in search of a problem. So
So they they change these standards so often, it's very
difficult to keep up with it. It ALS makes it very complex
for,
for the public and
For the public. And so 1 of the things I would like to do
and other cities have done this.
and other cities have done, this is do what's called a
popular report where you really kind of present your
financial results for something, that
financial results for something that the public can
consume. So they kind of really know our financial
positioning and it's all in plain English, right? So um, I
I'm committed to that.
I'm committed to that, you know, resources, you know, not
with
notwithstanding resources being available, um,
notwithstanding resources being available. Um, because I do
think it asby is kind of works. Contrary to the goal of a
Accountability, because the statements are so complex.
Thank you Alderman. Ervin it is
Thank you Alderman. Ervin, it is 1:30. We have a lot of
other items. Um, so
if you could keep your questions to like the most Germaine
and important and I'll I'll
and important, and I'll, I'll I'll I'll curb my answers,
you're not as bad as uh,
You're not as bad as uh, commissioner rwi.
People say people.
people say people say, uh, pardon me for speaking Mike
while you were interrupting me.
all right, um,
All right. Um, Alderman. Curtis, followed by alderman
waguespack
All right.
Thank you. Madam chairman uh,
Mr. Basket, first I want to apologize because we did a lot
of phone tag. Um, then I'll get you on the phone.
of phone tag. Um, then I'll get you on the phone and I have
to rush off, but, um,
I I, um,
I I um I appreciate this is a great, a great appointment.
I I, um, I appreciate this is a great, a great appointment.
Uh, you have so much respect, uh, people. Um,
Uh, you have so much respect, uh, people, um, really talk
about you, uh, on the outside as much as they do on the
inside?
inside of City Hall? Uh, I I do want to say that, um, I
think you already have a great team in place and, uh, they
just needed more guidance. Um, uh, long term.
just needed more guidance. Um, uh, long term guidance, I I
would say of, uh, what they were.
would say of, uh, what they were lacking. I mean, we, we
haven't had a control in in, in
haven't had a control in, in, in some time, I think you
over
Qualified, perfect for the position.
Qualified perfect for the position. Um, my only interest uh,
I was
uh, I was glad to hear that you hired more um,
uh, inspectors and and
Uh, inspectors and and uh, people to get out there on the
streets.
streets uh because 1 of my biggest issues which
streets uh because 1 of my biggest issues, which will
definitely talk about is semi trucks park.
definitely talk about is semi trucks parking on the
residential streets again. So,
residential streets again. So uh I appreciate it. Uh I am
so excited that you hear and you decided to take the
position and I look forward to working with you. Thank.
position and I look forward to working with you. Thank you.
Madam chair. Thank you. Curtis Alderman. Wag
Madam chair, thank you, Curtis Alderman, Wagers back.
Followed by Alderman Moore.
Thank you, chairman.
Thank you chairwoman and I'll be short as well. Um, just
uh, want to say that I do support this appointment and um I
hope that and I've had conversations with Mr.
I hope that and I've had conversations with Mr. Bielaski, I
think. Um, I've uh, there's a
think, um, I've, uh, there's a lot of good ideas that he
and I talked about,
and I talked about in, um, our meeting. I've heard a lot of
good things here today. Um, I really want to see that, uh,
some of the things he's done. Come into practice, the
financial practices that are accessible to and understood
not just by this body but the city that we serve that is I
think a statement that
I think a statement that really Rings true uh with a lot of
people in here and I hope you can carry out that mission in
years to come. Thank you very much. Thank you. Al
Moore, followed by Allman Riley.
Thank you. Um, chairman um,
first of all, and I definitely don't take this the wrong
way because well,
because well I ain't gonna say nothin the wrong way. But
Don't take it so much.
Don't take it so much personally. I don't know you.
Don't take it so much personally, I don't know you. I don't
think we had a chance to talk on. I don't know people. Well
I um, talked to people that
Well, I, um, talked to people that I trust, um,
Well, I, um, talked to people that I trust um, and some of
the people that I trust, um, you know, was concerned,
concerned, um, with some things and, uh,
concerned, um, with some things. And, uh, that makes me a
little concerned and so,
And so, I'm, I'm going to support this, um, because, um, we
have a beast of a
um, because, um, we have a beast of a CFO. We have a great,
um, budget director and
um, budget director. And, uh, when you talk about, uh,
rashma Sony, Chase Ryan Winkle who've come before you
rashma Sony Chase Ryan Winkle who've come before you. They
were like, just
were like just Unstoppable in terms of the information that
they share with us um the knowledge that they had. Uh but
I'm always get willing to give someone a chance and and my
My.
My drive to us, if there's something you don't know.
My drive to us if there's something you don't know or that
you're not strong in get strong in.
you're not strong in get strong in it, know it. Because
when we get to budget, um, I'll be the first to say great
job, uh, controller, but I also be the first to say, man,
I'm not feeling this, you know? Um, because we've had,
we may not have extensive knowledge of everything, you
know, but because we had people like rashma and Chase, I'm
telling you, I know what to look for and I think my
colleague as well.
I don't know. I wasn't fully.
I don't know, I wasn't fully. Um,
happy with the
Happy with the answer that you gave give viegas. And you
can try again, if you
try again if you want I think he was saying how do you
personally feel about? Um um um these
you personally feel about? Um um um, these um, bonds for
pensions I think that's what he was.
pensions, I think that's what he was asking and you gave us
the quote, unquote, in my opinion. Um, the text
the quote unquote, in my opinion, um, the textbook think of
how they work. And I get that part and
how they work. And I get that part. And so um, those are
the things that's going to come up in
things that's going to come up in budget that if I don't
feel like I got the answer or still, you know, if somebody
asked a question that I got to
somebody asked a question that I got to answer that
question, then I think somebody is, you know,
think somebody is, you know, just blowing smoke smoke at
us, you know?
smoke smoke at us, you know? But um, I think the mayor has
done a good in this.
Administration has done a good job um, of selecting
selecting people to leave this Finance team. Um,
selecting people to leave this Finance team, um, like I
say, um, up with our CFO and our budget.
say, um, up with our CFO and our budget director and, uh, I
want to make sure that they're supported well. Um,
um, and so I'm going
Um, and so I'm going to support this, but I think you
hearing what? I'm
hearing what I'm saying and um, you know, I I I I
hearing what I'm saying. And, um, you know, I, I I, I look
forward to supporting this but
I think.
I think based on some conversations that I had with people
that I trust, I just want you to be a stronger.
that I trust, I just want you to be a stronger and um a
stronger.
controller, especially when we when
Controller, especially when we when we've come and had
Chase and, um, rashma. So, but I'll give you a chance to
um,
answer. Uh, Villegas question because I felt like it was
more of a textbook answer more than what he had asked, you,
right? Well,
You, right? Well, I, I think what I was trying to explain
is like it.
like it, it depends on the market and the circumstances.
So if you can issue, you know, pension bonds,
So if you can issue, you know, pension bonds or taxable,
they're not, they're not tax.
they're not, they're not tax exempt. They sell at a higher
rate and if
rate. And if, if you could sell them, when interest rates
are historically, low and consistently low.
are historically, low and consistently low, uh, then they
can be really successful in reducing,
can be really successful and reducing your pension
liability.
I would say if, if
I would say if if, um,
You know the my environment.
You know, the my environment is uncertain. I probably
caution against it because you're going to be paying
negative Arbitrage. You're going to be paying out money
rather than
just paying off The Debt Service. You're going to have this
difference.
difference between.
What the pensions funds?
what the pensions funds earning and what you're paying and
that's just cash out of your pension fund and that's going
in a negative Direction.
Thank you, Tim. Thank you.
Thank you Tim. Thank you. And and I would say this if you
uh
you know, usually I'm pretty straight forward with people.
You know, usually I'm pretty straight forward with people
and if someone has a problem with me, they should come and
speak to me about it. If you have some issues from people
ask them to come, speak to me about it. If you have some
issues you and I will speak about it.
And I will address them. I'm committed.
And I will address them. I'm committed to doing a good job
for the city. This isn't about me.
for the city. This isn't about me or anybody else. It's the
city of Chicago so I hope.
city of Chicago. So I hope to have a good working
relationship with you and I'm I'm up to the task of winning
your trust. Thank you. Thank you.
Alderman. Reilly
Alderman Reilly followed by Alderman Hopkins.
Thank you.
Thank you, madam chair and good afternoon.
Thank you, madam chair and good afternoon, Mr. Bulski. Um,
I don't have a lot of questions which is good news for
everybody in the room. Um,
everybody in the room. Um and as someone who is known to be
an O critic of this,
be an O critic of this Administration, I have to say how
pleasantly surprised I am that they've put forth your name
for consideration for this very important job.
for consideration for this very important job, especially
this year,
Um, as others have.
Um, as others have said here uh you were more than
overqualified for this.
overqualified for this position.
And uh, I'm thrilled.
And, uh, I'm thrilled that that you're before us for
consideration today. Um, we're going to have some really
choppy Waters to navigate.
choppy Waters to navigate uh, for this Administration over
the next. Um,
2 years.
and,
And the idea that we're going to have a fresh set of eyes
on these.
on these old problems is to me uh,
on these old problems is to me, uh also it's encouraging
that you have experienced uh, as an elected official and
understand the pressures that this body, uh, confronts when
when dealing with difficult budgets. So for all of those
those reasons but especially for your resume,
and,
and strong endorsements from folks who
and strong endorsements from folks, who used to have big
leadership positions here on the financial team. Um, all of
that tells me.
that tells me, this is an excellent appointment and I am
enthusiastically supporting it, uh today. So
enthusiastically supporting it, uh, today. So I wish you
well, I look forward to working with you.
Well, I look forward to working with you and I think the
council and the mayor's office.
council and the mayor's office will benefit tremendously
from your experience.
from your experience and uh, and your talent. Thank you,
madam chair.
Madam chair. Thank you Alderman, Alderman, Hopkins.
yeah, thank you madam chair and
Yeah. Thank you madam chair. And I, I too joined the chorus
of strong support for this endorsement. I commend Mayor
Johnson, uh, for putting your name forward, Mr. Bells
Johnson, uh, for putting your name. Forward, Mr. Bulski
the, you're an outstanding candidate. Uh, I won't reiterate
you're an outstanding candidate. Uh, I won't reiterate the,
uh, Litany of your qualifications. That all my colleagues
have. Uh, referred to, uh, simply to say that. Uh, you and
I have traveled in the same Circle since the early 90s in
Springfield, and we recently had an
Springfield and we recently had an opportunity to, uh,
revisit a lot of that and some some discussion of nostalgia
actually. Um, but
nostalgia actually. Um, but having been, uh, able to
reacquaint myself with you, a few
reacquaint myself with you a few years ago, when you first
met with me in my office and some of the things we
discussed I didn't expect it would lead to this moment but
I'm
but I'm delighted that it has uh really look forward to
working with you.
working with you in this capacity. I know what you're going
to bring to the table.
to bring to the table um Alderman Moore, I just want to
reassure you uh that you are going to be very very
reassure you, uh, that you are going to be very, very happy
uh, with this appointment as you get to know,
uh, with this appointment as you get to know Mr, belly in
his capacity. So, uh,
his capacity, so uh congratulations in advance on your
pending confirmation.
pending confirmation vote. Great. And thank you for
being my alderman.
So that's what it's all about, huh?
All right, alderman.
All right, Alderman Lopez.
Thank you, chairman and good afternoon.
Thank you, chairman and good afternoon members of the
committee. I will just be brief. I want to state.
committee. I will just be brief, I want to state that I
fully support this appointment, I had the Great
fully support this appointment. I had the great pleasure of
uh, having the controller.
uh having the controller and his team join us last week.
uh having the controller and his team. Join us last week
and see firsthand many of the challenges that we
on the southwest side, particularly to issues near and dear
to my heart, which is enforcement.
um, and seeing how, uh, the department which
Um, and seeing how, uh, the department, which generates
money should be fully fund.
money should be fully funded and supportive of our
communities, and our boards to
and our boards to ensure that the laws that we pass and the
revenue is expected to be generated are actually generated
to lessen. The burden on all of Chicago. And so I
appreciate you.
appreciate you, uh, kandare on the subject.
I appreciate you, uh, kandare on the subject, our
discussions on History, just want to let you know,
on History. Just want to let you know, I've already bought
4 books on your recommendation list. So,
already bought 4 books on your recommendation list, so my
reports will be ready lately later in the year. Uh, but
look forward to working with you, sir. And as always,
look forward to working with you, sir. And as always a
calm, my compliments to your team.
calm, my compliments to your team uh, for addressing many
of the constant calls for help and assistance that we have
in the 15th Ward. Thank you.
Alderman, CEO Lopez.
Thank you chairwoman and um, just be brief. I just want to
Thank you chairwoman and um just be brief. I just want to
thank um um
I think they,
I think they met for this important appointment. I, uh,
your background as an elected official and uh, as someone
who deeply cares about the financing of
deeply cares about defining of or cities across the state,
I will say will be a tremendous asset. Um, just want to
reemphasize
re-emphasize in our conversations the important to do more
re-emphasize in our conversations, the important to do more
uh especially to provide some relief for seniors for
low-income families, where people who are struggling.
low-income families, where people who are struggling and to
show, uh, a heavy weight rather for those
show, uh, a heavy weight. Rather for those who are
betraying the trust of the public who are using predatory
practices,
And to look that continues to look to enrich.
and to look that continues to look to enrich themselves
corporations and those who are profiting, you know, have a
responsibility and we must call them accountable. So look
forward to working with you together, to ensure that
Chicagoans continue to see in the controller, a, a
Chicagoans continue to see in the controller, a a partner
to make sure that the city especially homeowners.
to make sure that the city especially homeowners small
businesses, who are suffering and struggling,
businesses, who are suffering and struggling seeing your
office, a partner for Relief and that we work together to
ensure that the finances of the city uh,
ensure that the finances of the city uh are in good hands.
And I I'm confident that your appointment goes
direction so I'm happy and fully support your appointment.
Thank you. Madam chair.
um, Mike, I just want to say that uh uh, I think this is
Um, Mike, I just want to say that uh uh I think this is a
great appointment by the mayor. Um,
when I talk to people about you, the words,
when I talk to people about you, the words that come out
from many are problem, solver.
Straight shoot.
Straight shooter.
And Workhorse.
And I think you're going to have to add traffic.
And I think you're going to have to add traffic cop.
to uh, that
To, uh, that list of just that description. So,
To uh, that list of just that description. So I wish you
well um you have my full support.
well, um, you have my full support. I think you are
tremendous, you have something to say now on the spot and
you're late
Okay. All right. Um, so
Okay. All right. Um so um,
I wish you the best and I think that your qualifications
speak volumes about what you would be.
speak volumes about what you would be able to do for the
city of Chicago. And I wish
city of Chicago and I wish you. Well,
um, all the
Um, all the minimalist spot is going to be brief and
Alderman. Curtis
Alderman, Curtis has made the motion of due pass, I will.
will be glad to vote on that motion, but it would be
other service to my very new relationship with our
Other service to my very new relationship with our
controller. If I didn't say Plus
controller. If I didn't say plus 1 to everything that folks
shared. But also to say,
shared. But also to say you you bring her over here but
essential cual
essential quality to government, which is curiosity.
which,
Which I deeply appreciate.
and so far, every
and so far every meeting that I've been in with you, I have
either learned something new about government or you've
shifted how I think about government.
And that's a, a privilege.
And that's a a privilege and I deeply. Appreciate it. And I
hope also that I have the opportunity to be a good partner
to you in seeing this city. Be fiscally.
to you in seeing this city. Be fiscally stable and healthy.
Thank you, sir. Thank you. Thank
Thank you sir. Thank you, thank you, cheer. You're welcome,
motion, made by Alder
motion made by Alderman, Curtis, recommending do pass all
those in favor. Signify by saying I I opposed and the
opinion of the chair is the eyes have it and the do pass
recommendation will be reported out at the next city
council meeting. Thank you.
We're.
We're going to take a uh, 5 minute recess.
We're going to take a uh 5 minute recess. So the court
reporter can move her fing.
reporter can move her fingers around more.
5.
5 minutes.
The committee on finance is Recon.
The committee on finance is reconvened.
And we will move on now to item number.
And we will move on now to item number 4 from the Department
of Finance.
of Finance and ordinance, amending the municipal code
section.
section 7-28-22
is Katherine wheeler here.
You know, how to use the
Used it before.
It has a new sequence.
Forward back. Okay. Thank
Miss wheeler, who's the Dy?
Miss wheeler, who's the deputy director of the Department
of Finance?
Um, good afternoon, chairwoman Dow.
Um, good afternoon, chairwoman Dow and good afternoon
members of the city council. Um, my name is Katherine
wheeler, deputy director, of Department of Finance, over
the
utility billing and customer service division. Um, I'm here
to talk to you about this clean.
to talk to you about this cleanup, ordinance related to
senior alignment,
senior alignment. Um,
In the budget cycle last fall.
in the budget cycle last fall, the municipal code was
modified already to align the eligibility for the senior
sewer discount or I'm sorry the senior sewer exemption and
the senior garbage discount. And the changes went into
effect uh July
effect, uh, July 1st of this year, the purpose of this or
ordinance that's uh, before the committee today is
ordinance. That's, uh, before the committee today is a
cleanup effort, um, to allow seniors to keep their senior
garbage discount when enrolling in the utility billing
relief program. Um, the reason this is important is because
when customers, when seniors enroll in the utility billing
relief program, um, they temporarily lose their senior
sewer exemption. And so now that the eligibility
requirements are aligned, they would also lose their senior
garbage discount.
Um, there's no cost to implement the changes in this.
proposed cleanup ordinance.
So to just sort of walk through an example. Um, the impact
of this ordinance would be uh, with the passage of it
senior
Senior citizens, who enroll in ubr will not have to
experience.
experience, uh, the potential of their monthly bill
increasing after enrollment in ubr. The reason for that
increase would be because they would be losing the senior
garbage discount. Um, without passage of this ordinance,
So um, in the example you can see on the left.
So um in the example you can see on the left portion of the
chart. Um, an example.
chart. Um, an example of what a senior's Bill might look
like,
like when they have the senior sewer exemption and the
senior garbage discount before they enroll in ubr. Uh, you
can see that we do charge for water.
can see that we do charge for water with the senior sewer
charge. I'm sorry the
charge. I'm sorry, the sewer charge is Exempted by the
senior sewer exemption
we charge for water tax, uh,
We charge for water tax uh, and in the amount proportionate
to the water charge.
to the water charge and the sewer tax is Exempted the same
to the water charge and the sewer tax is Exempted. The same
as the sewer charge. That's why the sewer
as the sewer charge, that's why the sewer charge and the
sewer tax are zero there. But we see a charge for water.
sewer tax are zero there. But we see a charge for water and
water tax.
And then the garbage.
And then the garbage charge is reduced by 50% due to the
garbage.
garbage discount. So that is um, the First Column there.
That's labeled prior to ubr enrollment.
in the middle, there in the column that says
In the middle, there in the column that says uh in ubr
ordinance not passed. This is an example of what will
happen. If
happen if, um, the ordinance is not passed and seniors
lose. Uh, the garbage discount when they enroll in ubr,
so here you can see that when a customer
So here you can see that. When a customer enrolls in ubr,
they're charged for each of water, sewer, water tax, and
Sewer tax.
Sewer tax, but each of those are reduced by 50%. Thanks to
ubr. So,
ubr. So on the water line, you can see that instead of
being charged $20,
being charged, twenty dollars the seniors being charged,
ten dollars, they
dollars, they are charged for sewer and Sewer tax.
Uh, the Water tax is.
Uh the Water tax is all each of the sewer, the water tax and
Sewer tax are also 50%.
Sewer tax are also 50% of what they would um be charged if
they were not.
if they were not in ubr and did not have the exemption.
Um, and but then you can see for the garbage charge the
garbage.
garbage charge actually increases, um,
garbage charge actually increases um, if this ordinance is
not passed because they would not be able to keep their
garbage discount either so you can see in the total
that the customer's bill has actually gone up from $30.75
per month to 35 dollars. And
per month to 35 dollars and 50 cents per month.
If?
if this cleanup ordinance is passed, uh, you can see in the
If this cleanup ordinance is passed, uh you can see in the
column furthest to the right. An example of what that would
look like. Um, you can see that
look like. Um you can see that pretty much everything is
the same with the water.
the same with the water sewer water tax and Sewer tax
charges. There's 50% off on those charges thanks to being
in UB
in ubr
and then, you can also see that the
And then you can also see that the garbage charge, um,
they've retained their 50%.
they've retained their 50% discount um, for their garbage
charge, which keeps their monthly charges, the same and
keeps them from.
keeps them from increasing.
Uh, so that is what I had to share with.
Uh, so that is what I had to share with you today. But if
anyone has questions, I'm happy to answer those.
All right, Miss Willow.
All right. Miss Willow. When we met uh there was a question
raised about uh retroactive refund.
question raised about uh, retroactive refunds. Can you
explain to my
colleagues? How that does not apply sure. So,
explain to my colleagues? How that does not apply sure. So
right now, um, we're hopeful that this ordinance.
right now, um, we're hopeful that this ordinance will be
passed and right now we have not been
passed. And right now we have not been removing the garbage
discount. Um, if the Ordnance is not passed, we would have
to, uh, we would have to start doing that. But right now,
there's been no negative impact to any seniors who are
enrolled or are have enrolled in the program. Um, July 1st,
or later.
Thank you, alderman laspada.
Thank you.
Thank you very much cheer. Um, would you mind going back to
the previous slide real quick? Sure.
There's this 1 Thing.
There's this 1 thing that.
confused me, which is why prior to ubr enrollment,
Confused me, which is why prior to ubr enrollment sewer
charge would be at zero.
charge would be at zero and Sewer tax would be at zero.
Sure. So the in this hypothetical the customer has both the
senior
the senior sewer exemption and the senior senior garbage
discount.
discount prior to enrollment in ubr, the senior sew.
discount prior to enrollment in ubr, the senior sewer
exemption exe exempts. 100% of the
exemption exe exempts, 100% of the sewer charge, and then
the tax ordinance um allows for
the tax ordinance, um, allows for a proportionate exam.
Exemption. So both the sewer charge and
Exemption. So, both the sewer charge and Sewer tax are zero
because the senior has the senior sewer exemption prior to
ubr enrollment.
thank you, but then both of those rates
would go go.
would go go up.
regardless of whether this Orden,
Regardless of whether this ordinance is passed or not
passed that, I guess that's what's confusing to me.
passed that. I guess that's what's confusing to me. Yeah
sure totally understand that. Yes, they do go up um, the
sewer and the sewer tax.
sewer and the sewer tax go up when the customer enrolls in
UB
sewer and the sewer tax go up when the customer enrolls in
ubr because they lose the senior sewer exemption. However,
that's basically offset by the 50,
that's basically offset by the 50% discount that they get.
When they
when they enroll in ubr. So, the water charge and the water
tax, go down as the sewer and the sewer tax.
tax, go down as the sewer and the sewer tax go up and they
offset 1 another. Yeah, but then you're like,
offset 1. Another. Yeah, but then you're like back at zero
I I guess it's raising the question to me, do.
I I guess it's raising the question to me. Do we have to go
back and
Think about an Orden.
Think about an ordinance related to the, the sewer
exemption.
think about an ordinance related to the the sewer exemption
because it feels like
It feels like it, like you're losing the benefit.
It feels like it, like you're losing the benefit in that
sense.
So, I understand why it.
so I understand why it might feel that way, um, the benefit
to seniors,
to seniors of enrolling in this program is that ubr offers
debt forgiveness. So there there's no um before
debt forgiveness. So there there's no um, before before
this change went into effect July 1st, there was
change went into effect July 1st, there was no real benefit
to on a monthly
benefit to on a monthly basis to seniors enrolling in the
program because they
because they were sort of losing something and gaining
something and it was it was neutral but ubr does offer.
something and it was it was neutral but ubr does offer debt
forgiveness. So there is a Time still a benefit to seniors
to enrolling in the program. Okay,
I I have thoughts but I will.
I I have thoughts but I will mow them over myself. Thank
you, thank you cheer, thank you.
you. Thank you cheer. Thank you Alderman, Lopez.
Thank you.
Thank you, chairman and good afternoon members of the
committee first. I want to actually, uh, state that I agree
with my colleague. Um, it seems like a lost benefit when
you are going from zero and trying to recoup it on the back
end. Um, as it as this diagram shows, if there was a way to
make this, if you, if you cual
make this, if you, if you qualify for zero sewer tags.
make this, if you, if you qualify for zero sewer tags, then
that should be something that remains constant, regardless,
if you're enrolled.
if you're enrolled or not. And I think that's the question
at hand because just like we're seeing with like the
grocery tax, you can't take.
grocery tax. You can't take. You can't give someone a break
and then take it away from them. It's that's
and then, take it away from them. It's, that's kind of get
the same feeling that I get with this.
Um, so hopefully we could take a look and see at how to
amend that. Um, but the other question that I have is
amend that. Um, but the other question that I have, is this
model that you have here,
model that you have here this is for a single family home,
correct.
This.
This is just a hypothetical example, it's not neces.
This is just a hypothetical example, it's not necessarily
any specific property class.
Well.
no, because
if this was a 2 flat owned by a senior, this would not be
the savings that they would be seeing correct.
so, this is
So this is for a single family home. Yeah. That that is
true. If uh, as
Sin.
Senior, who owned and resided in a 2, flat. Would not
qualify for the senior sewer exemption so they wouldn't
have the senior sewer exemption or now the garbage discount
in the first place. So for a senior who is in an owner
in the first place. So, for a senior who is in an owner
occupied building that many of us see
What is the?
What is the discount that they have currently?
Are you saying dollars?
I'm sorry, you're saying out outside of the um, single
family context.
Right.
Okay, so
So, it's $50, correct.
The $50 discount.
The $50 discount on their on their bill in a multi-unit
building. Correct.
Are you asking about the rebate? Yes. Okay, yes, for as a
senior on their bill,
They don't get any of the discounts. All they get is a
fifty dollar rebate. Correct and a multi-unit building.
fifty dollar rebate. Correct, and a multi-unit building,
right? So in a multi-unit building, um, seniors, who own
and live in, it's usually co-ops.
live in, it's usually co-ops town homes with shared
services. Uh
services uh Condominiums with shared utility bills. Um,
services uh Condominiums with shared utility bills. Um it
does not appear on their utility bill but they are eligible
for.
for an annual $50 rebate. That is a check that's made.
for an annual $50 rebate. That is a check that's mailed to
them separately. So does this change impact?
them separately. So does this change impact them in any way
that it does not. So
1 of the issues that we've seen.
1 of the issues that we've seen time and time again. Um,
with this is that we have many seniors across the entire
city of Chicago.
city of Chicago, living outside of those examples. You just
provided in 2, flats who oftentimes do not rent. The second
floor or the apartment. That's also part of their property.
In essence, they turn their 2 flat into a single family.
home.
However, their bills.
However, their Bills remain almost at 100% minus the $50
rebate.
For the year.
as we're looking at ways to make sure that
As we're looking at ways to make sure that we're maximizing
the benefit to our seniors. Both in terms of billing
discounts and the utility bill relief
What is the?
What is the department doing to try to ensure that those
seniors?
seniors who are in those living arrangements that I just
described are not left?
described are not left, putting a bill that any other
senior would be paying 50%?
senior would be paying 50% of in those situations?
Yeah, thank you for that question. Um,
Low-income seniors in 2 flats, definitely can apply.
Low-income seniors in 2 flats. Definitely can apply for
utility billing relief their potentially eligible if
they're in.
they're in the scenario that you described. Um,
they're in the scenario that you described um, seniors who
are not low income, um, I appreciate that feed.
are not low income. Um, I appreciate that feedback and I
think we can take that back and and discuss that.
think we can take that back and and discuss that internally
and have some conversations about it. Well, I would hope
that um,
As we have.
as we have now just approved, these new city controller and
I have half of Revenue sitting
I have half of Revenue, sitting behind me that you hear
this message, loud and clear.
this message loud and clear because we know that there must
be some relief to many of those seniors.
This, the south and west side in particular.
All.
all have 2 flats that are
Maybe.
maybe at best 30% occupied, which means
maybe at best 30% occupied which means oftentimes, you have
buildings who if
have buildings who if it were only a matter of
verification, should be
Should be considered single family homes. They might have
should be considered single family homes. They might have
separate meters but only 1 person paying because nobody
else upstairs is paying and that is an unfair.
else upstairs is paying and that is an unfair and arduous
burden on many of the seniors.
burden on many of the seniors who could use real help. And
if we were able to cut thousands of seniors,
if we were able to cut thousands of seniors bills in half
because they are rightly
Not using their property.
Not using their property as a rental, but simply living in
it themselves.
it themselves Alone, um, in a 2 flat then that is something
that I think would probably have unanimous.
that I think would probably have unanimous support in this
Council because all of us care.
support in this Council, because all of us care about our
seniors. All of us, know, many of our seniors are afraid to
rent, so they don't, but at the same time, they are not
getting the 50% discount on their garbage, they're not
getting the 50% discount on their water. They are still
paying their sewer and they're doing it on incomes that.
paying their sewer and they're doing it on incomes that are
putting them in Jeopardy because they simply don't have
enough money to pay.
enough money to pay for all the all the bills that they
have. So, look,
have. So, look forward to working with the department and
you chairman to help make this a reality because I know
this is something that we have brought up time.
this is something that we have brought up time and time
again.
And oftentimes it.
And oftentimes it all just boils down to the verification.
that they are not renting. So there's a where there's a
will to figure that out. There's a way to make it happen
and I hope that this is the year. We can make it happen.
Thank you chairman. Thank you Alderman Lopez. Um, who's
moving emotion? Recommending.
moving, emotion? Recommending do pass of this ordinance.
Um, all those in.
Um, all those in favor. Signify by saying I
Opposed.
opposed, in the opinion of the chair, the eyes, have it,
and this
this do pass a recommendation will be reported out at the
next city council meeting. Thank you, Miss wheeler, thank
you.
item number 5 is from the Department of
Item number 5 is from the Department of Planning and
Development, the substitute.
Development. The Substitute ordinance, amending Municipal
Code section. 2-, 44-14,
Code section, 2- 44-1 142-4.
Code section, 2- 44-1, 142-4, and 14 a-3.
Code section, 2- 44-1, 142-4 and 14, a-3 D, 313.6 regarding
regarding lean assignments. Uh, there is a substitute or
ordinance which has been prepared and sent electronically
to everyone Alderman. Laspata moves that we accept the
substitute ordinance. All those in favor. Signify by
saying, I I post and the opinion of the chair of the eyes,
have it, and the substitute ordinance is now before the
committee. And
committee and will be explained by kalpana.
committee and will be explained by kalpana hullman. Deputy
Commissioner of the Department of planning and development,
Thank you, chair.
thank you, chair Del, good morning, members of the
committee for the record. My name is kulpa. Plowman deputy
Commissioner with the Department of planning and
development.
development and the Department of Housing.
I am here today to seek your approval of 2 tools that will
help get privately.
help get privately owned neglected or abandoned vacant.
property back into productive use
Hi City, debt on undervalued.
Hi City. Debt on undervalued property. Hinders development,
primarily in certain areas of the South and West.
primarily in certain areas of the South and West sides
often. The debtor owner has no means to pay off the city
debt and get out from under it.
sometimes these properties are
Sometimes these properties are abandoned with no owner in
sight.
This ordinance gives.
This ordinance gives dpd or do if the end use.
This ordinance gives dpd or do if the end use is
affordable. Housing, 2 tools to get these properties back
into productive use
the first tool, the debt lean assignment
The first tool, the debt lean assignment would allow an
existing owner to get out.
existing owner to get out from under City debt by selling
the burden.
the burden, property for $1 to an unrelated.
the burden, property for $1 to an unrelated buyer, with a
plan for bringing the property back into productive use
dpd.
dpd or do would vet the project and the
Dpd or do would vet the project and the buyer along with
the affected. Alder,
do collections would determine if the
Do collections would determine if the debt is
uncollectible.
uncollectible, OBM, would agree that the projected Revenue
can be deleted from the city's books.
Concurrently with the 1 dollar sale, these Department?
concurrently with the 1 dollar sale, these departments
would work with doof to release the old lean and replace it
with a new lean.
it with a new lean in the amount of the debt.
Once the project is built, the lean will be released.
The second tool.
the second tool, the demo lean assignment will provide a
path to productive use for a vacant lot.
path to productive use for a vacant lot burdened with a
city, demolition lean.
city. Demolition lean where the property has been
abandoned.
per its demaline, the city has the right to
Per its demaline, the city has the right to acquire the
vacant lot for no additional.
vacant lot for no additional cash. Outlay, based on the
cost of its already. Paid demolition.
The.
The right to acquire the property for no cash. Outlay is
the right assigned to the new.
the right assigned to the new owner, to bring the property
back into productive use
These tools are needed.
These tools are needed, in certain low-income low moderate
in.
income areas. As that term is defined in the
income areas as that term, is defined in the city's Aro.
The propert.
The property would need to be vacant for, at least, 6
months.
The Departments will collaborate.
The Departments will collaborate with the affected. Alder
on the end.
on the end, use and end users. The Departments will report
to this committee quarterly on the details.
to this committee quarterly on the details of these tools
being used.
In.
In response to feedback from members of this committee.
In response to feedback from members of this committee, this
substitute makes explicit the cities.
substitute makes explicit the city's policy of requiring
building permits and proof of financing prior to closing.
construction completion within 3 years,
construction, completion within 3 years and a 2-year. No
flip provision.
in addition to Vertical development, The Substitute allows
the property to be maintained as a side yard.
Finally, in response to the members of this committee, this
substitute bars, the initial burdened owners.
Whose property is trans.
Whose property is transferred in connection with this
ordinance from receiving.
ordinance, from receiving City benefits, like land or
financial assistance for a period of 3 years.
financial assistance for a period of 3 years, which is in
line with typical debarment time frames.
these tools, which we
These tools, which we anticipate will be primarily used in
under.
undervalued areas of the South and West sides.
undervalued areas of the South and West sides will allow
unproductive, lots to get
unproductive. Lots to get back into productive, use
allowing our city.
allowing our city land sales and city funding efforts to
have more of an impact.
Thank you.
Uh, thank you. I would like to uh thank uh alderman.
Taylor Lopez and be for having
Lopez, and be for having some input into the creation of
this.
this, uh,
Ordinance. Thank you.
Ordinance, thank you. Um, we'll start with alderman viegas
Thank you. Thank you. Madam chair. Thank you. Just have a
couple of questions. Get clarification. I I think.
To allow the Commissioners many tools.
to allow the commissioner as many Tools in our toolbox as
possible to get development proponent of just
possible to get development. Proponent of just want to make
sure we're addressing a couple of things.
Um, how exactly will the reassignment of?
Um, how exactly will the reassignment of liens work? How
does that work?
So E, I could describe it or I could hand you over to um
David Hull.
David Hull Camp. Who is from do collections who
David Hull Camp who is from do collections, who would be
able to give you a a slightly more technical, probably
explanation.
sure, um, thanks so when when we're talking about
reassignment,
reassignment of leans, uh, I think it's easier to uh,
reassignment of leans, uh I think it's easier to uh think
about it and and maybe not and uh, reassignment
Of Arlene's term. So,
Of Arlene's term. So when we're talking about, uh,
Transferring property to the, to the new owner.
Transferring property to the to the new owner, we're
actually talking about.
Is the city's lean.
Is the city's lean will be uh, imposed on the new own.
Is the city's lean will be uh imposed on the new owner. So
the new owner will take the property.
the new owner will take the property uh subject to that
lean and if they develop the property, you're going to
develop the property.
Uh, that lean is going to remain on.
uh, that lean is going to remain on the property until um,
until the development is is complete the other opt.
until the development is is complete. The other option
which is is more of a, I think, I guess, uh, a true
assignment would be is if we bring uh, foreclosure or
uh, legal proceedings to um, to make sure the the
Uh, legal proceedings to um, to make sure the the property
is transferred. We will do there is or
is transferred, we will do there is or what we can do.
There is, we will
There is we will transfer our right to
credit.
credit bid on the property. Uh, so say at a foreclosure
proceedings we're um
We're.
we're for closing on the property and uh, at the end of
We're for closing on the property and uh, at the end of
foreclosure proceedings, what happens is there's a sale.
foreclosure proceedings, what happens is there's a sale,
uh, average foreclosure proceeding or supplementary
proceeding where we're going to do a, a transfer. There's
going to be a sale. So our lean rights, our lean.
going to be a sale. So our lean rights, our lean rights
that we have that are probably worth more than the propert.
property.
We get to credit bid that.
And Buy credit. But I mean, we bid our debt, so, no money
comes out.
comes out of pocket. We can bid up to the total amount of
our debt to acquire the property, we either.
our debt, to acquire the property. We either bid that and
assign that winning bid to the person that dpd picks or
assign that winning bid to the person that dpd picks, or we
assign before, we bid the right.
assign before, we bid the right to bid our debt. So during
that legal proceedings, instead of the city having to fit
its debt, take the property in its own invent.
its debt, take the property in its own inventory, right?
And then transfer it out, we during that preceding the the
the city's debt would allow this this entity. Can I get an
example? Because now you got me more confused. I mean yes
and and and and listen I it's probably complex but I just
give me an example of of because the way the commissioner
told me was, yeah.
told me was, yeah, I I can jump in and okay. Yeah. I I
told me was. Yeah, I I can jump in. And okay. Yeah. I I can
give you kind of a Layman's explanation. Yeah. Do you want
the uh, demo lean assignment or
the, uh, demo lean assignment or the debt lean?
Assignment or both both. Okay. So the um, debt lean
assignment. Let's just say we have a property and it's
valued at about say, $1,000,
valued at about say, $1,000 and it's got City leans.
valued at about say, $1,000 and it's got City liens in the
amount of 30 or 40,000 dollars on
amount of 30, or 40,000 dollars on it, um, say the
existence and
and those liens would be like, you know, uh, UNP
and those liens would be like, you know, uh unpaid. Tickets
water Etc, right? Okay, could
water Etc, right? Okay. Could be also a demo.
lean of like, say 30,000, you know,
lean of like say 30,000, you know, okay um and the existing
owner has no means of paying that.
owner has no means of paying that debt. They they just it's
it's just like squeezing water from a stone. Yep.
or, yes, or we can't find them with especially
or yes, or we can't find them with especially with respect
to the demoing assignment, but staying with the
to the demo lean assignment, but staying with the debt lean
assignment for a minute. Say there's
assignment for a minute say there's a potential buyer who
spoken to that current owner and is willing to buy the
property.
property but doesn't want. This can't pay.
property. But doesn't want, this can't pay 50,000 for
You know, 10,000 lot.
They could come to, they would likely come to the Alder.
They could come to, they would likely come to the Alder and
the Alder would likely come to dpd.
and the Alder would likely come to dpd and say, hey, this
new buyer has an idea for the property, whatever it is. I
like the idea and the seller.
like the idea and the seller is willing to sell for a
dollar, so we don't want that existing debtor to profit in
any way. Um, so they're they'll get their debt.
any way. Um, so they're they'll get their debt waived but
then we'll replace that lean that old debt lean with a new
lean in the same amount of the debt. But once that, and
would obviously be working with DOL collections who has an
interest in,
interest in saying? No, no, that leans that debt that money
is collectible. We're not going to wave it so that's a bit
of a check.
of a check on us and then as long as they say,
Its uncollectible and OBM.
its uncollectible and OBM says,
We're okay, waving that.
we're okay. Waving that debt from our books? It's not
money. That's going to come back to.
money. That's going to come back to the city, then we would
work with Doof.
work with doof to and DOL to basically put this new
work with doof to and DOL to basically, put this new lean
on the property in the amount of the debt and that new lean
would get replaced or
would get replaced. Or I'm sorry, it would get um, released
as
released as soon as the projects built or whatever oblig
We've agreed to with the new buyer are met. So that's how
the debt link ordinance would work. And the way the demo
lean ordinance would work.
lean ordinance would work very very much in layman's terms.
Not you know, the technical parts that David
terms. Not, you know, the technical parts that David
explained, but pretty much the city.
explained, but pretty much the city has the, um, right when
they demo a property and put a lean, a demo lean on the
property.
property to acquire that property for the amount.
property to acquire that property for the amount that they
paid to demo the property. Um, unless
a, a
A a higher debtor, a higher bidder, come or a higher
creditor.
creditor comes in and bids more. But, um,
creditor comes in and bids more, but, um, in most of these
cases, there's no other interest.
cases, there's no other interested parties. And the city is
able to acquire the land for the amount that it already
paid to demo the building. That was
paid to demo the building, that was on the property and
that is how we've acquire.
that is how we've acquired.
10,000 Lots.
10,000 Lots um, primarily on the South and West sides.
10,000 Lots um primarily on the South and West sides, we
don't want to continue to acquire properties in bulk. The
way we had in the past, but for these, and for these 1-off
way we had in the past, but for these and for these 1
offset out a way particular
offset out, a way particularly, as a chair said with a lot
of these demo l.
of these demo Lanes, there might be an absentee or Beyond.
absentee, and abandoned property and no.
absentee and abandoned property and no owner around. So we
want to be able to figure out a way to get it in the hands
of a new owner and this is the way to do that. We could
assign our right to step.
assign our right to step into the city's shoes to a new
potential buyer. And so, we basically now have a new
taxpayer on on record. Um,
They?
They step, they're the new owner, they're going to take
care of that property.
care of that property, if there's an issue with the
property, you know we have
property, you know, we have somebody to go to um and so
that is how that demo lean
assignment.
Assignment would work. So we're holding,
we're removing the lean from the current.
we're removing the lean from the current owner.
Placing it on the new owner.
Placing it on the new owner once that project that they
agreed to is complet.
agreed to is completed, then we remove our position and
that right? That's the debt lean assignment. That's what
we're calling the debt lean assignment and and with these
liens on the new owner how do title
on the new owner how do title companies how will title
companies um
Yeah, how how will title? How how, how will it work?
Yeah, how how will title? How, how, how will it work with
title companies? Because I mean, when you, when a title
company is Eng
company, is engaged, it's a to clear, clear note
company is engaged, it's a to clear. Clear, note of any
liens, how's this going to work? Not necessarily. I mean,
the a new buyer can take subject to a lean normally they
don't want to take subjects so the new
don't want to take subjects. So the new buyer is trying to
clear the lean and say I'm not going to take subject.
clear the lean and say I'm not going to take subject to it.
What can you do to either? Clear what what documentation
does the city need?
does the city need to provide to clear the lean in this
case, it's different
case it's different. The new buyers agreeing to take
subject to this new lean. It's like it's almost like taking
subject to a new mortgage that you're putting on the
property.
And that.
And that because they know exactly how they need to release
it. They need to release it by meeting the obligations.
it. They need to release it by meeting the obligations that
they're agreeing to with the city in order to get this
property for.
property for by paying a dollar to the Old owner, okay?
property for by paying a dollar to the Old owner. Okay. Um
you you you've had this discussion has the city has these
discussions with the title companies, the kind of let them
know that this is something we're doing in order to so that
way.
way when these new documents do come into play, I mean this
is a new Orden.
is a new ordinance that's being proposed, right? But but
their we're not asking the title company to clear the
title. We're not asking them to endorse over the
encumbrance.
just in the same way that when you buy a property and you
take out a mortgage,
And you're buying subject to that.
And you're buying subject to that mortgage. Like that's
your mortgage. This would be like an encumbrance that the
new buyer is.
new buyer is putting on the property. So they're taking
subject.
subject to it. The title company is not ensuring
subject to it. The title company is not insuring over that
encumbrance. Gotcha. And then lastly. Um,
See I'm I'm I have every intention.
see I'm I'm I have every intention of building what it is
that I want to build, but
that I want to build but then the deal falls through on my
side as the new owner.
And those liens.
And those liens follow me now, or is it just they do? They
do. And what?
do. And what the way we try are trying to.
do. And what the way we try are trying to ensure projects
get built and we haven't done this, you know, in the
distant past but we've been doing it more in the more
recent past. Um we don't close
On.
on land sales or, you know, funding
on land sales or you know funding and now with these
assignments we wouldn't move forward until we have building
permits in place and proof of financing in place. And if it
is a loan that loan needs to close,
is a loan that loan needs to close in conjunction with the
land sale and so those are
land sale. And so those are kind of our um, in assurances
that the project really will be built. Could it still fall
through? It could
through it? Could the risk is lower by requiring?
through it? Could the risk is lower by requiring, um,
building permits and proof.
building permits and proof of financing as closing
conditions. But if it did,
conditions. But if it did fall through
that debt, that lean is now on the
That debt that lean is now on the land and it would have to
be guaranteed.
be guaranteed by the new owner, so we'd have 2.
be guaranteed by the new owner. So we'd have 2 security,
interests both the personal guarantee.
interests, both the personal guarantee, that's not
recorded. And then the lean that would be recorded on the
property and run with the land. Got you. And then lastly
what's the fiscal impact by
fiscal impact? By we're we're removing that correct. Which
means that's not
correct. Which means that's not coming to the to the
government. So what's that number?
government. So what's that number look like. So you know,
it's hard to say, um, it's we don't we don't anticipate,
this would be kind of a broad.
this would be kind of a broad brush, you know, using it all
the time. This this would really be used maybe a couple
times a year but right now we have no tool.
times a year, but right now we have no tool to um,
Really kind of get these. Get out of the way of these.
Really kind of get these. Get out of the way of these 2 of
these private transactions and this
these private transactions. And this gives us 2 tools for
the city to kind of say. You know what?
the city to kind of say, you know what, this debt is not
collectible. We've got
collectible, we've got 3, departments agreeing, it's not
collectible. Um,
Let's get out of.
let's get out of the way and let's write this off as
Let's get out of the way and let's write this off as we're
never going to see it. But at least now we either have
never going to see it. But, at least now we either have,
we'll have a project. We'll have a new owner, we'll have a
taxpayer, we'll get rid of that. Like
taxpayer. We'll get rid of that. Like, I sore that's part
of the community. Okay, so
the community. Okay, so it's really trying to take a lemon
and create lemonade. Gotcha. Thank you. Thank you. Madam.
Miss Plowman have. Have you been approached?
Madam Miss Plowman have. Have you been approached or do do
H or dpd?
dpd from anybody within this body?
That.
That this tool would be useful to them.
Yes. Um, I I think about a year ago. I had a conversation
with Alderman Talia.
with Alderman Tali Aero about, um, a couple Lots
with Alderman Tali, Aero about, um, a couple Lots in his
Ward, that a developer was interested.
Ward, that a developer was interested in that had City debt
on it. And the developer was interested in, um,
on it, and the developer was interested in um constructing
affordable housing on them. And, you know, we we didn't get
to the, we started to
to the. We started to kind of vet the project, we didn't
get a lot of debt.
get a lot of details on the project and so it we didn't
move forward in any way but that would be an example. Um,
there was an example, um, in I, I
there was an example um in I I want to you don't have to
say the word but I I'm just curious if if uh
you're seeing people,
You're seeing people come to you saying that this kind of
tool.
tool is something that they could utilize.
tool is something that they could utilize in their Wards,
not frequently. But in the 3 years,
not frequently. But in the 3 years that I've sat in this
seat, we've seen it 3 times. Come to us. Okay, thank you.
Alderman. Beale.
Thank you. Madam chairman.
um, first, I want to thank the commissioner for reaching
out and, um,
and um, brainstorming on this particular ordinance. Um, and
you know, we came up with a couple of key items that were
crucial and that, that were added in the amendment. Um, but
I I still have a couple of other
You know, questions about you know what?
you know, questions about, you know, what if and I know
this is going to be sparingly
is going to be sparingly um, you know, 3 times in a couple
of years. It's it's
years. It's it's nothing really up and down about uh but
what
about uh, but what if I'm a
Slum, Lord, bad.
Slum Lord. Bad investor. And Craig you know racked up a
bunch of debt on some land that I have and you know and
bunch of debt, on some land that I have and you know, and I
go and find a buddy to say hey man.
You want to buy my land and right? And, and he fronts the
the, you know, the person next to him.
the, you know, the person next to him, right? Right? His
buddy. I mean, there's nothing in the Prov.
buddy. I mean, there's nothing in the provision that will
stop anything like that because that's
stop anything like that, because that's digging too much
into the weeds or well, no, I mean, we
into the weeds or well, no, I mean we we've put language in
the Pro in the ordinance that it has to be to an unrelated
unaffiliated.
unrelated unaffiliated buyer. We would be doing our best to
vet.
vet the buyer. We would be
Working closely with the subject. Alder, we'd be working
closely with dool OBM doof. We would be
closely with do OBM doof. We would be requiring, an EDS,
we'd be doing Scofflaw checks. We'd be doing our due
diligence could.
diligence. Could. Somebody finagle something,
diligence. Could somebody finagle something, maybe, but we
would be doing our best.
would be doing our best to address that, okay? And and the
other piece as far as the indebtedness.
other piece as far as the indebtedness, um, to the person
who owns the land. There's only a 3 year provision that you
guys put in we did and we we really put it in. We just
followed what's in line with typical.
followed what's in line with typical debarment. Um, typical
debarment. Um really isn't, I mean, it really has to be
very, very egregious for it to be like a lifelong.
very, very egregious for it to be like a lifelong ban, and
a typical ban is 3.
a typical ban is 3 years and that's the ban that both.
a typical ban is 3 years and that's the ban that both dpd
and dpd are, do have
And dpd are do, have agreed is reasonable for
Other kind of similar.
Other kind of similar issues. Um, and so we just went with
that.
that same time frame. Well, I mean 3 years
that same time frame. Well, I mean, 3 years is not a long
time for, you know, like a developer or somebody uh to wait
you know.
wait, you know to um get back in the groove with the city.
wait, you know, to um, get back in the groove with the city
of Chicago. Um, so I'm I'm always of the mindset of not
rewarding bad behavior.
rewarding bad behavior, correct? And you know, if we could
ban them or flag, their
ban them or flag their name, or their company, their
business, you know, indefinite that, you know. Hey, if you
look
Looking to make money over here. You know, we waved 60,000 a
couple of years ago and now here you are trying to make
millions or hundreds of thousands. Um, you know, I just
don't, you know, I just wish there was a way we can flag
them, you know? Well, in addition to the 3 year debarment,
You remember, they're selling their land for a dollar. So,
they're giving up their land, they're not making any kind
of profit off.
of profit off of the sale and then secondly, in order to
get city land or City money, they'd have to go through the
city process. So they would have to prove themselves, get
edzes, you know?
edzes, you know, sub submit edzes, scoff law.
And go through that whole process and show that.
And go through that whole process and show that they're in
a different position now. So those are some of the checks
on that. Okay, well I know it's going to be an uphill
battle. Um,
battle um and definitely a challenge for us to bird dog
these Bad actors. And I I get that
these Bad actors and I I get that. Um, but I do appreciate
the effort that you all are putting forward.
the effort that you all are putting forward to, you know,
continue to move development. Thank you.
Thank you Alderman. Uh, Alderman Lopez
Thank you again. Chairman and good afternoon. We're almost
good evening. Members of the city council, uh, committee
Thank you, commissioner for reaching out a quick question.
What is the total?
Amount.
amount of debt liens held by the city of
Amount of debt liens held by the city of Chicago.
Um,
I'm looking at do collection.
I'm looking at do collections but David, but I don't think
that's, I don't know if David,
The.
The dollar amount to be specific.
We, we don't have a dollar amount, everything's kind of
kept in different systems. So you know, water debt would be
in the water debt.
water debt system. Demolition debt would be be recorded.
water debt system. Demolition debt would be be recorded uh
you know judgment liens would be
you know, judgment liens would be in a different system so
we would have to look you know uh
In a lot of different systems. And, uh, some of those
Systems are a little older.
Systems are a little older and are all of these liens.
Subject.
Subject to this ordinance? Or is it just
is that just for debt anything? That's
Is that just for debt, anything, that's anything that
encumbers the property. So anything,
encumbers the property. So, anything personal to that.
Debtor owner who
Um, might own lean.
um, might own lean might have liens on other properties or
might have unsecured debt. I'm sorry. Give me so these
might have unsecured debt. I'm sorry. Give me so, these 2
categories, debt, and demo leans.
categories, debt, and demo, liens, debt, lean encapsulates.
Everything that he was just referring to,
everything that he was just referring to. If it's
city-based,
Well sorry, so so yeah.
Debt would Encompass everything that's owed to?
Debt would Encompass everything that's owed to the city
that would be, I would call that un.
that would be, I would call that unsecured debt. And then
there's liens that support or encumber the property, so
there.
there would be liens that would be the demolition liens and
then there'd be separate.
and then there'd be separate lanes for judgements other
types of of things.
types of of things but those are all debt liens on the
property. So these simple answer is yes, the simple answer
is yes. Okay. Um, so okay
can you provide through the chair, all the various silos
upon which
Debt.
debt liens, and all the
Various categories. What those?
various categories, what those total liens amount to, um,
so that really wouldn't be relevant because that
that really wouldn't be relevant because that would be
probably a huge number. I'll decide what's it would be a
huge number and we wouldn't be waving that huge number. Um,
commissioner commissioner, I was just trying to figure out
what the
Landscape is and what it looks like. He's
landscape is and what it looks like he's not uh I just want
to know what the debt is. Just wants to know the most
categories. Thank you, chairman.
as well as desmoulins, because those are
As well as desmoulins because those are different and not
and not categories in the categ.
and not categories in the categorized, excuse me, in the
same manner, as
same manner as general debt Lanes. So demo lanes are very
specific. They're for the and are those for
Department of building or do those incorporate all? So,
streets and sanitation like garage desmoulins.
So, it would be all.
So, it would be all all liens on the prop or all demo liens
on the propert.
on the property. Demo liens, are statutory liens. So they
arise, as soon as the property is is demolished, it doesn't
matter if we record them or not. And so dob would have
The.
What demolished?
what demolished properties but dob doesn't take out the
What demolished properties but dob doesn't take out. The
doesn't pay for the demolition. So I want to make sure and
I'm specifically saying this that this Inc, this
incorporates both garage and
yes.
yes, so then if you could provide through the chair as
well, what the total value of all the Dem,
well, what the total value of all, the demo lines are
I,
I would appreciate that.
Um, the other question I have with regards to lines and I
and we did talk.
and we did talk and we did address a number of these
issues.
Um,
I want to be clear on something, uh, almond Lopez you're
asking for the demolition?
asking for the demolition lines whether they're for a
building or for a garage of properties. Yes.
Real estate. Yes.
Real estate. Yes, total correct. Okay, the total value.
Real estate. Yes. Total correct. Okay, the total value.
Yes. So there's no way. We'd have the Capac
So there's no way. We'd have the capacity to
Use these.
use these tools for
Anything. But a fraction of those.
Anything. But a fraction of those liens and there'd be.
There needs to be a willing buyer. A willing, he knows
that.
he knows that he's just trying to get the total picture the
total number. It's it has nothing to do with you and your
or
Ordnance, it has more to do with uh
Him, having a need to know.
Right. And in a matter of, yes.
Right. And in a matter of, yes, I need to know the number
we're talking about but to be perfectly clear. Chairman I
feel as though, this ordinance, with respect to everyone,
who put it together is a solution in search of a problem.
if in 3 years,
If in 3 years, you've only dealt with this 3 times, this
isn't a high priority for us.
isn't a high priority for us when we have hundreds of
millions of dollars of outstanding, liens out there.
Dragging our budget down.
And to be honest, if you wanted to activate properties, I
personally still don't think this is the right.
personally still don't think this is the right way because
if you wanted to unburden ourselves,
and allow for Economic Opportunity and neighborhoods where
like in Greater Anglewood we have thousands. I have 256 in
my portion of West Anglewood alone then
just simply waive the properties.
Liens.
and take possession and sell them accordingly in
And take possession and sell them accordingly in a, in a
coordinated manner, you know, we are right now.
coordinated manner, you know, we are right now trying to
manipulate markets and pay someone a dollar who we haven't
been able to identify for 50 years.
When, if we just vacated the property took possession as we
normally would do, and
we normally would do in an install, a reverter clause on
the sale to ensure what we
the sale, to ensure what we wanted, but was built, then we
would have more control over what's going on and more
readily available. Lots. And as we already have done in the
past and continue,
past and continue to do to this day,
The reason I'm asking about.
The reason I'm asking about this is because I want to know
what volume of leans. We
what volume of leans we have as well as what's applicable.
And when it comes to liens because we also offer a number
of program,
of programs chairman
That are.
that are lean based all of our senior programs for home.
that are lean based all of our senior programs for Home,
Remodeling for roof and porch repair for emergency housing
assistance, for all of those things that we do for our
seniors.
seniors are forgivable lean based. And if those are also
included in this, then you are now opening up many.
included in this, then you are now opening up many seniors
who may be forced into this.
who may be forced into this program. If you have an
Alderman who chooses to try to push forward with that,
because you've said that, if d,
because you've said that, if dpd or housing or the, this is
not a program.
not a program, this is
this is not a program and this is
This is not a program. And this is, this is an absolute
voluntary, private transaction.
voluntary, private transaction between a private seller and
a private buyer means that we have in place and they are on
a prompt to us saying we want to do that. We are not
forcing anyone to sell their property.
We wouldn't be. This is not foreclosing.
We wouldn't be, this is not foreclosing on someone. This is
working with a willing buyer, a willing seller.
working with a willing buyer, a willing seller or an an
abandoned.
abandoned property and a willing buyer private real estate.
estate. Not sitting on real estate, 100% understand.
not sitting on real estate, 100% understand that you're
talking about that which is why I'm stating that. If you
wanted this to be something that
wanted this, to be something that we are that we are a part
of in terms of selling.
of in terms of selling property.
Which is a constitution.
Which is a constitutional.
Protection, and guaranteed.
Protection and guaranteed issue, the right of property.
Protection and guaranteed issue. The right of property that
what you are doing now is forcing.
what you are doing now is, forcing individuals, know.
what you are doing now is forcing individuals know, hold
on, hold on. I am well aware because I'm trying to get to
what I'm trying to state which is if you were trying to
create a specific outcome using our liens, then you should
take ownership of the property.
take ownership of the property, vacating a lien.
Go ahead.
Vacating a lean. And then adding
Vacating a lean and then adding it later on.
In a private 1-on-1.
In a private 1-on-1 sale.
Is not the.
Is not the right way to go.
I still.
I I'm not quite finished. Thank you.
if you have an individual,
if you have an individual who you haven't been able to get
in contact with,
How are you then taking possession of those properties?
how are you then taking possession of those properties? If
so again, we'd be working with do collections to ensure
that you be taking them to court, correct. The debt is
unco.
uncollectible. I mean, their goal is to collect the re
uncollectible. I mean their goal is to collect the revenue,
that's not what I asked. I said how are you
if you cannot get a hold of an owner, because you keep
If you cannot get a hold of an owner because you keep
switching back and forth between the 2. So if you can't get
a hold of a private owner
How are you, taking?
How are you taking possession of the property?
Through Court action.
Through Court action, correct? Like we would any other kind
of property that we are owed debt that we have debt on.
The city is not.
No, I don't. Um, Alderman Lopez. I don't think that you
have a clear understanding. I'm pretty sure I do.
have a clear understanding. I'm pretty sure. I do know. I I
don't think you do. Then how do you have? Because you're
dealing with the the property is not
dealing with the, the property is not coming into the
cities inventory. Then how do you how do you negotiate a
sale between 2 people?
sale between 2 people when it's not in our inventory and
you don't know who the owner is. That's why it's not you.
That's why this tool is not going to be utilized more than
2 or 3 times.
2 or 3 times a year but they still haven't answered how it
could be utilized. Leave it once. It's right. It's a
private transaction with someone. You cannot identify an
obstacle to the sale and we're getting out of the way. But
if you have someone, you cannot identify how do you have a
private sale?
private sale with someone? You cannot identify.
If you cannot.
if you cannot find the owner, if you don't know who the
owner is or that we can't reach them. How do you have them?
Sell a
sell a property because the new owner,
Steps into the shoes.
Steps into the shoes that he's asking me, so the person
that's interested.
that's interested you jumped the step.
you jumped the step because
You jumped the step because I'm gonna, it's my property. I'm
gonna I'm gonna stop
gonna, I'm gonna stop this line of questioning right now
because we got a lot of, uh, but questions, if you have
some comments or want to get a clear description of how
this is going to work, please meet with her after the
meeting.
meeting chairman. I've also, I've had vacant property calls
the question.
no, we've got, uh, the
No, we've got uh the court other people that have questions
when the moment comes.
questions when the moment comes, I have uh, Alderman Moore
on my list, okay?
So do you have a question because you were next with?
So do you have a question because you were next with
questions?
My question is more than resolved.
My question is more than resolved fine all of them and more
actually chairman.
more. Actually. Chairman, I like to call Purim, please.
How many do we need?
I don't need to do it out loud. I heard your question when
we have a quorum, I will
we have a quorum? I will tell you. We have a quorum.
I know you did.
I mean.
We are 15. Yeah.
Give me.
I share Conway.
Alderman laspada.
Alderman.
Alderman Hopkins.
Alderman Hall.
Uh, excuse me. He's on Virtual.
Alderman Mitchell.
Alderman Beal.
Of course, Bill walks out.
Um, Alderman Conway.
Yeah, Lopez is walking out to
Shenanigans.
Um, Alderman Ramirez.
Alderman. Lee.
Alderman Quinn.
Alderman Moore.
Alderman. Curtis
Alderman. Oh,
Alderman. OSHA
Alderman Rodriguez.
Alderman Scott.
Alderman. Sichel Lopez.
Alderman brunette.
Alderman. Ervin.
Alderman. Tally Farrell.
Alder.
Alderman, Cardona.
Alderman wag.
Alderman Wags back.
Alderman.
Alderman, Quezada Alderman, vagus.
Alderman Spa.
Alderman Vasquez.
Alderman. Reilly
Alderman kutson.
Alderman. Martin.
Chair dowels here.
We have a quorum. We have 16 alderman,
We have a quorum. We have 16 Alderman, o? Shea just walked
in. We have a quorum 17. Let's move. Let's move.
Alderman.
Alderman Moore.
Um, thank you. And honestly this was 1 of my questions but
I asked it a little different. Um,
Because I've been working on this heavily.
because I've been working on this heavily and been involved
in this and, um,
in this and um I know judge Linda Murray is the housing.
in this and um I know judge Linda Murray is the housing um,
Court judge.
court judge. And so you know, so for the past almost
um, court judge. And so, you know, so for the past almost
in like 2 years, I've been having this discussion with
everyone.
everyone and I'm glad we're getting to this point.
So how what is the role?
of the
um, the
Um, the judicial system now. So I mean, so,
Um, the judicial system now. So, I mean, so you're
referring to the um, provision in
referring to the, um, provision in Municipal Code 2-44,
which is the current provision for do to go through housing
court and
court, and be able to waive City leans.
court, and be able to waive City liens based on properties
in housing court and then they go into property forfeiture.
Correct? What we call them, right?
correct? What we call them, right? So this broadens that
provision.
provision and um, gives do the same rights that the new
provision in. The ordinance would give dpds Commission.
provision in. The ordinance would give dpds commissioner to
work with work on.
work with work on buildings, properties outside.
work with work on buildings properties outside of the court
system. So it wouldn't have to be
court system. So it wouldn't have to be limited to
properties. Going through the forfeiture procedure.
It would be repeat that.
It would be repeat that last statement. We, what we
wouldn't have to be limited right now that
wouldn't have to be limited right now. That provision of
the municipal code is limited.
municipal code is limited to properties. Going through
forfeiture.
forfeiture, right? And it wouldn't be limited to that. You,
you might
You might have a property in your ward. Um, and a neighbor
might know that this owner died had no heirs um
might know that this owner died had no heirs. Um I would
like to acquire that property you could come to to the city
and we would work. This is a multi-d department kind of
Um, ordinance in a way we would work.
Um, ordinance in a way, we would work together with you to
then release.
then release that lean or assign.
then release that lean or assign that lean, but without
going to the court,
going to the courts, we wouldn't have to go through the
court system the way we do now.
court system. The way we do now for Doh. Okay.
All right. Thank you. Okay. Thank. Thank you.
Thank you. Um, I hear a motion from Alderman laspada. Oh
I'm sorry Alderman. Ervin.
I'm sorry, Alderman, Ervin, I didn't have you on my list.
No, no, no problem, man. Uh, thank you mad.
no, no problem man. Uh, thank you madam chair. Uh, 2
things. Number 1. Um
The city of Chicago needs to get into business.
the city of Chicago needs to get in the business of
foreclosing on lanes that had that it has, especially those
foreclosing on lanes that had that it has especially those
demolition lanes and water Lanes. Uh, we have a lot.
demolition lanes and water Lanes. Uh, we have a lot of
quote, unquote zombie properties that we defacto are the
Property Owners because we're cutting the grass, we're
cleaning.
cleaning them up the flying up on them. Uh, we need to take
possession.
possession of those properties. I think the position that
we take of just kind of Liz Phair and leaving it be, uh,
doesn't, you know, does not help our help our communities.
Like if this app becomes a city,
Like if this app becomes a city asset, then it it becomes
part of a process but it just
part of a process, but it's just sitting out there, uh,
just all on its lonesome,
just all on its Lonesome. Um, that's not helping
communities. And I think the point that, uh, both ottoman
Lopez and ottoman more,
Lopez and Alderman Moore making, is that, hey, we need to
get involved.
get involved and not necessarily wait for somebody to come.
and say, hey, we got this lean that we just need to that.
need to take that's Point number 1 Point, number 2. Um
need to take that's Point number 1, Point number 2. Um and
and I don't know how this is uh how this has been discussed
but
um,
Will.
will there be any? Um,
Pieces about what's going to happen to the property.
meaning that you may have, we may we have a position.
meaning that you may have, we may we have a position in the
property.
We're giving up our position.
We're giving up our position in the property to give to a
third party. Um, what what do we are? We like vetting
projects. Are we underwriting? Absolutely. What are we?
What else are we?
What else are we doing? Yes. Make sure that this is
something that
that actually makes sense. Other than just giving up our
position in the property. Oh no, we're absolutely vetting
property.
vetting property, just the way we do. Um, when we are
selling city land through, sh
selling city land through shy, block Builder or um, you
know, giving a city Grant or, you know, working on some
kind of financial incentive. We would have a vetting
process in place.
process in place and um, you know, like I said, 1 of the
things that's implicit once the the project is vetted.
things that's implicit once the the project is vetted, do
you end use and the end user is vetted with
either, whether it's Department of Housing or Department of
Planning and Development, that's leading they would
Planning and Development, that's leading. They would be
working with the subject Alder they'd be working with do
collections with Obi
collections with OBM with doof. But then also not
proceeding with the assignment until we have building
permits in place if building.
permits in place if building permits are applicable
financing. If there's a need for financing proof of
financing, um, we'd be vetting that new buyer, we'd be
vetting the project vetting, the new buyer,
vetting the project vetting the new buyer so we really
don't we would not be just waving debt for a new owner.
A new owner and a new use.
a new owner and a new use, and
in initially, it was just vertical projects but we added
open space inside yards as like maintaining the property is
also sufficient and that was in response to um some um
aldermanic input.
Okay. And, and
Okay. And and so I had 2 final questions number 1, uh,
Okay. And and so I had 2, final questions number 1. Uh,
what happens when whatever that project is while you all
have the administrative Capac
have the administrative capacity to wave, wave the debt,
following your internal,
following your internal processes. What if that does not
line up with the vision of the community?
I mean, that is really where we would look to the Alder to,
you know.
Kind of vet that project.
Kind of vet that project with the community and just follow
the process.
the process that you have within your ward for ensuring
that this is in line with what your community wants. So
again, going through that process,
again, going through that process in the community doesn't
doesn't want whatever it is that
doesn't want whatever it is, that is contemplated to
happen. How does that? How does that get hand?
happen. How does that? How does that get handled? Yeah, I
mean if the, if the
mean, if the, if the Alder City Alder, and the community is
against the project, that would definitely play a role,
against the project, that would definitely play a role in
the vetting of the project.
To find that.
I mean, I think the way that we um, issue grants and
I mean, I think the way that we um issue grants and um
select the um select
select the um, selected applicant for city-owned land would
be very similar. We work in collaboration with the online
is a little different because City on land has to make his
way through this chamber. Um,
The lean release.
The lean release theoretically has to make its way through
this.
this chamber, what you're asking for is Administrative
approval. And my question is, how does that work with? You
have community members? That may be opposed to what the
department May deem to be.
department May deem to be a feasible or reasonable project.
That's my question in practice. We will likely
Hear about.
Hear about this transaction or this project through the
sitting.
sitting Alder that's how those these 3 projects that we
know of have come to us. It's been through the Alders.
Was generally means that there that there's something the
community wants to.
community wants to see, right? I was the example that you
gave was about affordable housing.
gave was about affordable housing in in Austin, right? And
that's something, I think all all.
that's something, I think all all of the altars in Austin
support, right? But if it's not something that is, that has
the support of the aldor or the community, how does the
department handle that?
Um,
I don't think we would move forward with a project.
I don't think we would move forward with a project that
isn't supported by the community.
isn't supported by the community and by the Alder, that is
not something.
not something that that's not how we work.
not something that that's not how we work, generally.
Well, let me let me just say this. I I think that
Well, let me, let me just say this. I, I think that, uh, we
have a process in place. Um, I I think you, if, if time is
of the essence that, that is 1 issue and I don't see,
necessarily being of the essence in this conversation.
necessarily being of the essence, in this conversation per
se. Um, I think that this this may require a little more.
um,
Um the more nuancing as it relates to, how does this work
within?
within the frame of the local community? I can understand.
uh the idea of trying to be quicker on this but I but I
what I don't but I haven't grasped is um, the role that the
community is allowed to play through their local
representation on.
representation on dealing with these waivers of leans. Now,
if again, there was money set aside in the budget to
Acquire. Uh, I want I want well, like I said, it is a form
of acquisition but to foreclose on liens that that exists.
and
To date really haven't heard a lot about.
To date really haven't heard a lot about that. And so I I
am concerned that
concerned that. While we do have a process, we have set
aside funds.
aside funds, just if not executed on on the acquisition or
the Foreclosure of
any liens and that's
Any liens? And that's a, that's a concern.
Thank you, madam.
Thank you, madam chair.
Thank you.
Uh, no other questions uh, alderman.
Uh, no other questions, uh, Alderman, Alderman Moore, thank
you. I'm sorry. We just real quick because
thank you. I'm sorry. We just real quick because I I forgot
to ask um, these 2 1 has to do.
to ask um these 2 1 has to do with um because I'm dealing
with a situation now in terms of if there's a tax
with a situation now in terms of, if that's a tax buyer and
I got that guy next door that that say
I got that guy next door, that that said, Miss Jones. She
been dead for years but you got a tax buyer in there too.
How does that? No I mean that's really where
How does that? No, I mean that's really where it's such a
collaborative effort where we would be
collaborative effort, where we would be working with you.
we'd be vetting that
We'd be vetting that buyer. So the end use is important and
the buyer is important. No, I get that part. But what I'm
saying there's a tax by who already.
saying, there's a tax by who already purchased the taxes on
the property, but you have a end user.
the property but you have a end user. Um and and some of
these people buy taxes trying to get money out of that,
right? So how does that?
right? So how does that operate does? I'm just trying to
understand, do that.
understand do that. Yeah, that, that Neighbor Next Door who
wants to buy that property on their block. And then there's
a tax buyer that already.
a tax buyer that already owns it. They own it, they own the
taxes or they own.
taxes or they own the taxes. It, it really wouldn't address
that situation.
that situation the situation that these tools address.
that situation. The situation that these tools address is
where there is
An owner, um, it doesn't address.
An owner. Um, it doesn't address. I get. So he would have
to deal with the tax buyer on his own. That's the answer to
that question. He had to deal with that, that person next
door on that block.
door on that block would have to deal with that tax buyer
separately separately. So all we can release is the city
leans.
liens and we wouldn't be involved with that.
That tax buyer. And by the time it came to us, it would we
would hope that it would be that the only obstacle to the
private transaction moving forward is
private transaction. Moving forward, is the city lean. That
is the Hope but that that's part but
is the Hope but that that's part. But that's, that's
really, that's really our only role here and chairman my
last name because I saw affordable 1 here, does it so
last name because I saw affordable 1 here, does it. So do
do we have to only do this for affordable? Can somebody
have it?
have it converted to do it for market rate? Yeah,
absolutely Market. A retail if it was
Affordable.
Affordable housing, it would be vetted by the Department of
Housing, okay? But if it's anything else market rate
housing, um, you know, commercial space.
housing, um, you know, commercial space, any kind of
development, open space a side.
development open space, a side yard, those would all be
vetted with through dpd.
vetted with through dpd, okay?
Thank.
Thank you. Thank you all men more. Um, do you renew your
motion?
motion Alderman? Le
All those in favor. Signify by saying I
Opposed.
And the opinion of the chairs. The eyes, have it and
And the opinion of the chairs, the eyes have it and uh this
do pass recommendation.
this do pass, recommendation will be reported out at the
next city council meeting. Um, I would ask if you could
spend a little time with Alderman Lopez, and
spend a little time with Alderman Lopez and um, maybe
follow up with chairman IR.
follow up with chairman, Ervin, definitely. Okay, thank
you. Appreciate it.
Thank you.
Uh, item number 7.
an ordinance authorizing the
An ordinance authorizing. The bond inducement for the home
and Square Apartments.
and Square Apartments phase 4 project at 367.
and Square Apartments phase 4 project at 3673621364.
and Square Apartments, phase 4 project at 36736213645 West
Polk Street 906.
Polk Street, 906 and 908, South Central Park Avenue.
Polk, Street, 906 and 908, South Central, Park Avenue, and
921 South Lawndale Avenue.
921 South Lawndale Avenue in the 24th Ward. Um,
921 South Lawndale Avenue in the 24th. Ward, um, we have a
me Craton.
me Craton from the Department of Housing as the presenter.
along with Ryan, Slattery Financial
Along with Ryan, Slattery financial planning analysts.
Good afternoon chair.
Good afternoon, chairman Dal and members of the committee.
My name is amei Kratts.
My name is amei Creighton and I am a financial planning
analyst for the Department of Housing. I'm joined here with
Joseph Lewis assistant
Joseph Lewis, assistant, commissioner, and we also have
Eden heard Smith of our, um, a development team for iff.
I'm sorry.
I'm sorry, Mr. Lewis, I didn't even bother to look over
there.
there, see, who was who, but
no problem.
No problem chair. Thank you.
I'm here today to present a bond.
I'm here today to present a ban inducement for the home and
square project, phase 4.
square project, phase 4 of the home and Square Apartments
involves the rehabilitation of the development located at
3673.
367 3621 36645 West pulk Street.
367. 3621 36645 West pulk, Street, 9006, and 9008, South
Central Park.
Central Park Avenue, and 921 South Lawndale Avenue. The
development is located in the 24th. Ward represent
development is located in the 24th Ward represented by
Alderman. Monnique, Scott, who is in full support of this
project.
the, the developers of home and Square Apartments,
The, the developers of home and Square Apartments submitted
an application during the 2023 Q.
an application during the 2023 qap round and were selected
to receive financial assistance. For the
to receive financial assistance for the moderate
Rehabilitation originally built in.
Rehabilitation originally built in 1999 as part of a
broader revitalization.
broader revitalization strategy. Follow following the
closure of the Sears headquarters in North Londale. The 107
unit 100% affordable multi-family development.
unit 100% affordable multi-family development formerly
known as Westside Village face for has provided deeply
housing to the community.
for our 2 decades, the project is part of a multi-phase
Redevelopment initiative, led by the found
Redevelopment initiative led by the foundation for home and
square which has transformed the
and square which has transformed the former Sears campus
into a mix-use community.
The existing buildings feature, masonry Exteriors.
the existing buildings feature, masonry exteriors, shingle,
roofs, natural gas, HVAC systems,
roofs, natural, gas, HVAC systems and no elevators,
amenities include laundry.
Amenities include laundry rooms intercom entry and basement
storage.
basement storage. The proposed project includes interior
upgrades with energy, star appliances LED lighting, low
flow, Plumbing, new Cabinetry, and new flooring.
flow, Plumbing, new Cabinetry, and new flooring, for the
exterior, there will be new roofs and windows.
exterior, there will be new roofs and windows masonry and
tuckpointing and stair repairs or stair. Replacements site
upgrades include parking lot repairs EV charge changing.
station sidewalk improvements and exterior.
station sidewalk improvements and exterior mailboxes.
the requested action seeks authorization, for the
The requested action seeks authorization for the issuance
for up to 20 million in bonds as part of the proposed.
transaction.
Displayed is an aerial image of the development site with
multiple.
multiple Parcels outlined in red, the site includes.
multiple Parcels outlined in red, the site includes 6, 3
story, walk-up buildings with 3 buildings on West.
story. Walk-up buildings with 3 buildings on West pulk
Street 2 on South Lawndale.
I mean, 2 on South Central Park Avenue in 1, on South
I mean 2 on South Central Park Avenue in 1 on South Lawndale
Avenue, all buildings are arranged in a compass style
layout surrounding Boiler Park in in the north Lawndale
East, Garfield Park neighborhood.
Displayed is the current ekster.
displayed is the current exterior condition of the building
located at 36 uh,
located at 36, uh, 367 West, pulk Street all 5.
located at 36, uh, 367 West, pulk Street. All 5 remaining
buildings within the development share identical.
architectural, design structural characteristics, and
overall condition
Home.
Home and Square Apartments. Phase 4 will be fully
affordable housing.
affordable, housing development, comprising of a total of
1072.
housing development, comprising of a total of 1072, and 3,
bedroom rental units, the unit mixes.
bedroom rental units, the unit mixes designed to serve
households and families across a range of income levels
with 12 units, reserved for residents,
with 12 units. Reserved for residents, earning up to 30% of
the Ami 11.
to 30% of the Ami 11 units, for those up to 50% of the Ami.
and the remaining for 84 units. Allocated to households
earning 2, uh, earning up to 60% of the Ami.
The project will be supported by multiple.
The project will be supported by multiple permanent
financing sources that total 34 million.
financing sources, that total 34 million to fund the senior
construction period financing the city.
construction period financing the city of Chicago issue, 20
million in bonds, which will be privately placed with BMO
Harris Bank.
Harris Bank upon completion. The financing will be
converted.
converted into a permanent loan of approximately 5.3.
million. In addition, the project will utilize taxes.
million. In addition, the project will utilize tax exempt
debt which will generate approximately 12.7 million
debt, which will generate approximately 12.7 million Equity
with a price per credit of 8.
Sets the existing data 5.5 million.
Sets the existing data, 5.5 million accounts for
approximately 16% of the total project.
approximately 16% of the total project financing and is
comprised of 3 sources in the current version of the
financing plan a home loan.
financing plan, a home loan amount of 4.5 million a loan
from um the Chicago low income housing trust fund totaling
about.
about 367,000 and 700,000.
totaling about 367,000 and 700,000 in existing reserves Tif
funding of 9.9.
Tif funding of 9.9 million will represent approximately 29%
of
29% of financing and lastly, 575,000 of the developer fee
will be deferred. Now the the the total development uses
include the acquisition of land and buildings for 6.9
million and hard Construction.
million and hard construction costs estimated at 18.5
million.
Soft costs total approximately.
Soft costs. Total approximately 5 million which encompassed
Professional Services loan interest.
Professional Services loan interests, environmental
expenses and required reserves.
expenses and required reserves a construction contingency
of 1.8.
of 1.8 million is included to address unforeseen
conditions.
conditions, along with the de developer fee of 1.8 million.
The development team will.
the development team will be a collaboration of home and
housing LLC in the foundation for home and square home and
housing.
housing LLC is an affiliate of if informally known as
housing, LLC is an affiliate of if informally known as the
Illinois facilities fund, which is a Chicago based
nonprofit organization, that was established in 1988 as a
cdfi and developer.
cdfi and developer IFA provides loans to nonprofit
agencies.
in the community development Acquisitions and construction.
construction, and refinancing in 9 States, if has
previously partnered with the city of Chicago on several
projects, such as
projects such as home and square Phase 1 Phase 5 and
projects, such as home and square Phase, 1 Phase 5 and
Phase 6 and the late 2010s.
Phase 6 and the late 2010s, if was soon the role of real
estate developer and designate asset manager for the home
and Square rental Housing Development
Square rental Housing, Development succeeding, the shaw
company now the foundation for
company. Now the foundation for home and square established
in 1995 is a nonprofit.
in 1995 is a nonprofit organization that serves as the code
of developer and project.
of developer and project advocate for re revitalization
efforts in the home and square neighborhood. The foundation
aims to create a holistic campus for the community
following the
Following the closure of Sears headquarters in the area
FHS.
fhss actively involved in Prior phases of home and Square
Apartments.
Apartments and continues to manage several Community
assets.
WJ Architects is a Chicago based Arch.
WJ Architects is a Chicago based architectural firm that
focuses on Community Development.
focuses on Community Development and affordable housing.
The GC will be a joint venture between Burlington Builders
and solely Construction in both of which are bip Park owned
firms.
Bond Council will be provided by husch Blackwell.
Bond Council, will be provided by husch Blackwell and the
lenders, uh, be mo. Harris red.
lenders, uh, be mo. Harris Redstone equity in Cedar, Rapids
bank will provide additional financing for the project.
Here's the developer.
Here's the developer organizational chart that displays
ownership interest.
ownership interest for your viewing.
uh, the if Florida directors, comprises a diverse group of
senior Executives and strong Community ties across the
Chicago area in the broad.
Chicago area in the broader, Midwest region, many also
maintain Direct affili
maintain direct affiliations with the foundation for home
and square reinforcing a shared commitment to Equitable
Community Development.
the board of directors for the foundation of home, and
square is comp composed of a diverse group of community.
leaders leaders professionals and residents.
leaders leaders, professionals and residents who bring deep
rooted connections to North Lawndale neighborhood.
rooted connections to North Lawndale neighborhood and the
greater Chicago area.
greater Chicago area, their Collective expertise and
long-standing commitment to equity and inclusion.
foundation's mission to Foster sustainable community.
growth.
The community.
The community advisory Council comprised of home and square
residents business.
residents business owners and local leaders plays a
critical role in shaping.
critical role in shaping and guiding the foundation for uh,
home and squares community.
uh, home and squares. Community Development initiatives,
the de the development
the developments further supported by a strong network of
local organizations.
network of local organizations, small businesses, that
contribute sign.
contribute signi significantly to the Vitality of home and
square campus as core Community Partners iff and found.
for home and square, collaborate to align Civic and
and Commercial interests with the neighborhoods.
Priorities, the collective
the collective afterward is bolstered by on campus service
providers such as Lawndale Christian health and death
Dental Clinic.
dental clinic sign a medical group, the YMCA
dental clinic sign a medical group the YMCA and Green
Garden Cafe.
In addition.
in addition as we stated before alderwoman monnique Scott
has provided a letter of support for the Redevelopment.
In summary, the requested action seeks.
In summary, the requested action seeks authorization for
the issuance of up to 20 million in bonds as part.
the issuance of up to 20 million in bonds as part of the
proposed transaction. Now, this concludes my presentation,
please let me know or if anyone if you have any questions
for me or anyone in the development team. Thank you for
your time and consideration.
Thank you. I know, uh, Alderman Scott will close, but we'll
go to question.
go to questions first from alderman, viegas.
Thank you, madam chair. Congratulations to my
from the 24th W. I saw the slide on there where you broke
down, uh, cost per unit.
Can you go to that slide? Sure.
Right there, so it's about 316.
Right there. So it's about 316,000 per unit.
How'd you get it that low?
How'd you get it? That low? How because we've seen deals
come here.
come here, where in some cases units were 700,000 800,000
even 900,000 per unit,
How are you? How was this deal able to get done at
How are you, how was this deal able to get done at 316,000
per unit? A lot of the costs are a slightly lower just
because this is a re rehab as opposed to new construction
which would lead into a much higher cost it so it's a an
acquisition.
acquisition versus a new construction.
Correct. Okay.
Correct. Okay, all right, perfect. Okay, thank you,
appreciate it. Thank you.
Seeing no.
Seeing no other hands Alderman, Scott.
Thank you.
Thank you, chair.
Um, I would just ask if you all could give me your most
favorable uh, vote on.
favorable uh vote on this. Uh, it's always
um,
a good thing to go back and reinvest in the community. Uh,
Especially after some time. Property starts to um,
I don't know. Get
I don't know, get bad over time. Um, and you want?
I don't know. Get bad over time. Um, and you want wear and
tear ya, the wear and tear. And so, um, this was, this was
great on home and square.
great on home and square part to kind of hold the
community, uh, together. I know that there are 10 units
that are unoccupied, which so the
the removal will be kind of great, because
the removal will be kind of great because you move 10 up,
move 10 and then you fix 10 right now and then you move
them down. So I think that the way that they've structured
this is going to be great for the people that are already
living there. And I just I think iff for their vision.
living there. And I just I think iff for their vision, for
the 24th Ward, always, thank you.
Thank you. Uh, Alderman, spaz moves due pass.
Thank you. Uh, Alderman, spaz moves due pass, all those in
favor. Signify by saying, I
opposed, and the opinion of the chair of the
opposed and the opinion of the chair of the eyes have it,
and this will be reported out as a due pass at the next
city council meeting. Uh, thank you and congratulations
Alder.
Alderman Scott.
Thank you.
Thank you, Miss Creighton.
Item. Number 8 is the substitute ordinance.
Item. Number 8 is the substitute ordinance authorizing. The
execution of a redevelop.
execution of a Redevelopment agreement and the issuance of
tax increment financing Tif funds to Southbridge 1C
housing, LLC.
housing, LLC and the convenience of city-owned property.
housing, LLC and the convenience of city-owned property to
TCB DS for the project.
TCB DS for the project at 2311 through 15, South State.
Street also known as 3 through 5 East 23rd Street in the
Third Ward.
with us, uh, to present is
With us, uh, to present is uh, Ryan, Slattery.
With us, uh, to present is, uh, Ryan, Slattery. Yes.
And Joe Lewis.
If the substitute.
All right, excuse me. Thank you. There is a substitute
ordinance. Um which was sent electronically to everyone is
ordinance. Um which was sent electronically to everyone. Is
there a motion to accept the substitute so moved by
Alderman B?
Alderman Bernett? All those in favor. Signify by saying I
Alderman Bernett? All those in favor. Signify by saying, I
all those opposed
any in the
Any in the opinion of the chair, the eyes have it and the
substitute.
substitute ordinance is now before the committee.
Thank you.
Good afternoon, chair D. Members of the
Good afternoon, chair. D, members of the finance committee
for the record. My name is Ryan, Slattery, and I'm a
financial planning list in the multifamily finance
division. Uh, in the Department of Housing today, I'm here
to present South Bridge phase 1C.
today's requested action for the finance committee is to
approve and refer the South Bridge. 1C. Transaction, to the
city council for the following,
city council for the following authorized execution, of a
tiff Redevelopment,
tiff Redevelopment agreement with Southbridge 1C housing,
LLC for the use of 11 million 8,
LLC for the use of 11 million 870,154 in.
LLC for the use of 11 million 870,154 in the 24th uh, in
Michigan TIF district.
Michigan, TIF district and to approve the sale and transfer
of 3.
transfer of 3 city-owned um, Parcels at 2311 to 15.
transfer of 3 city-owned, um, Parcels at 2311 to 15 South
Street Street, also known as 3 to 5,
Street. Street, also known as 3 to 5 East 23rd Street,
Uh, the project site is located at the far Southwest.
uh, the project site is located at the far Southwest uh,
portion of the near South community area and the city, uh,
the city-owned property.
um,
Um, the location, and this is in the 24th, uh, in Michigan.
Tif Districts The Third Ward, the near Southside Community
area.
area in the central Planning District.
Project proposed for the site, uh, is a Southbridge phase.
1C. The third phase of the Redevelopment of the former
Herald. I
Harold ickes homes cha Community Phase 1 C.
Harold ickes homes cha Community Phase 1. C consists of a
new construction of a Transit served.
new construction of a Transit served High, um, high-rise
mixed use. Um, building containing 80 total, um, units.
mixed use. Um, building containing 80 total, um, units, uh,
consisting of Studios, 1's and 2 bedrooms.
um, 10 and a mini space and then
Um, 10 and many space and approximately 1500 square feet of
ground floor. Commercial space.
Construction of the approximately 52 million dollar
project.
Construction of the approximately 52 million dollar project
is expected to commence in the fourth quarter of 202.
is expected to commence in the fourth quarter of 2025 and
expected to conclude in mid 2027.
The developer.
The developer um Partners sponsoring this project are the
Community. Builders
Community Builders um and mcaffrey interests TCB.
Community Builders um and mcaffrey interests TCB uh
Community Builders is the majority stakeholder and control
of this project specific uh development entity.
of this project specific uh development entity, Southbridge
1C, housing LLC and
Southbridge 1C, housing, LLC and the key member of the
day-to-day decision-making. Um, in key decisions for
providing Financial guarantees of this project.
TCB is a nonprofit uh, real estate development.
TCB is a nonprofit uh real estate development established
in 1964 and headquartered in Boston.
in 1964 and headquartered in Boston, Massachusetts with
Regional Offices in Chicago Columbus.
Regional Offices in Chicago, Columbus, New York City, and
Washington DC.
Tcb's ownership and management portfolio includes 14,000
Apartments.
apartments across 15 states. His mission his
apartments across 15 states, his mission. His mission is to
build and sustain strong communities where people of all
incomes can Thrive TCB is operated Chicago for over 20
years and has done.
years and has developed over 1700 residential units in the
city.
city, tcb's recent projects of the city of Chicago,
included the oak.
included. The Oakwood Shores of Redevelopment, the former
man, and well cha Community across several phases. Uh, also
South Bridge phase 1A, and South Bridge 1 B.
um, and then also canvas at Leland's, um,
Um and then also canvas at Leland's um Plaza.
uh,
Uh, TCP has over 500 employees. The staff is operations in
real estate.
real estate development in, uh, in-house Legal Services,
Finance.
Finance asset management, and compliance code developer
partner. Mcaffrey interests. Was founded in 1990 and
they're probably owned full service commercial real estate
development investment firm. Before 3 Decades of experience
this portfolio includes
experience, this portfolio includes mixed use commercial
residential and Retail propert.
residential and Retail properties uh within Chicago
Washington D.
Washington DC, Pittsburgh and Denver markets.
Gensler is.
Gensler is in partnership with Nia Architects for the
design.
design team for this project again, so there's a global
architect design.
architect design and planning for our known for its
innovative. Human,
innovative, human centered approach to shaping spaces in
cities.
cities, founded in 1965 operates over 50 offices worldwide
and works with cross um sectors incl
and works with cross. Um sectors including commercial
Hospitality workplace education.
Hospitality workplace education and Urban Design near
Architects is a Chicago.
Architects is a Chicago based architectural and design firm
known for
Amendments of socially responsible and community center,
community center project.
community center projects, founded in 1995, any
community center projects. Founded in 1995, Neo focuses on
affordable housing, mixed-use developments educ.
affordable housing, mixed-use developments, educ
educational facilities and Civic spaces. The strong
emphasis on improving under underserved.
emphasis on improving under underserved communities and
participating in design of other.
participating in design of other city, funding projects
developments, including the prior phases of South Bridge.
The fifth City comma and project in Garfield Park.
The fifth City comma and project in Garfield Park and then
the under construction 52 unit project,
the under construction 52 unit projects, um, known as the
app.
The general contractor is a joint venture between Hugh.
The general contractor is a joint venture between Hugh
construction and power, and Suns, you specialize.
construction and power, and Suns. You specialize this is in
high-rise large scale Urban um, projects with major
developments like, Nema, Chicago Wolf Point. And
developments like Nema, Chicago, Wolf, Point and Wolf
Point, West power and Suns is a 5 decade old.
Point. West power and Suns is a 5 decade old firm.
Certified MBE with a construction.
Certified MBE with a construction, practice focusing on
affordable housing, Civic and Community projects.
affordable housing, Civic and Community projects, including
the city planning projects, Legend, South north,
the city, planning projects, Legend, South Northtown,
library, and apartments rosanil, Court Apartments, develop
library, and apartments rosanil Court Apartments developed
and was all Sports Development projects.
and was Sports Development projects, McHugh and Parsons
have previously joint venture.
have previously joined ventured to construct projects at
Navy, Pier and projects.
Navy Pier and projects related to 2024 Democratic National
Convention.
Applicate Thor and Thompson is a Chicago based Law Firm
naturally, recogn.
naturally recognized for its expertise and affordable
housing.
housing community development and tax credit financing
found in 199.
Found in 1998, The Firm focuses on structuring complex
transactions.
transactions involving, um, low-income housing tax, credits
histor,
historic tax credits, and New Market, tax credits.
uh,
Uh, the site is situated in Nexus of Chinatown and South
Loop neighbor.
Loop neighborhoods. Approximately 1 in 1 half miles south
of the
the Central Business districts and 3/4 of Mile West.
the Central Business districts and 3/4 of Mile West of
Lake. Michigan mcore place is 3 blocks.
Lake. Michigan mcore. Place is 3 blocks uh to these the
Roosevelt Road Shopping districts.
Roosevelt Road Shopping districts is a mile and a half to
the North and the shops.
the North and the shops and restaurants of Chinatown are
approximately half mile to the West.
the site is well, served by public transportation including
The site is well, served by public transportation including
uh the MCM Marketplace, Green Line Station.
uh the MCM Marketplace, Green, Line Station, several, high
frequency CTA bus lines as well as walking distance to the
CTA Red Line.
Uh, except for the subject.
Uh, except for the subject property and honor develops
Southbridge sites. Uh, the property neighborhood is an
urban and fully developed with wide variety of land uses
and considered, um, considerable residential density.
The city.
the city has owned the subject property um, since 1982
The city has owned the subject property um since 1982 and
is a uh and has a vacant except for some Electric.
is a uh and has a vacant except for some electrical
infrastructure that powers the CTA
Uh, shown here is a rendering of the proposed development.
the building will be constructed, utilizing the Deep
concrete case on Foundation system with a slab on grade.
But the first floor and poured in place concrete frames for
concrete columns, and flat plate, Concrete Construction and
above.
interior, uh, demising walls will be
Interior, uh, demising walls will be uh, steel frame
non-bearing, uh, partition walls.
non-bearing. Uh, partition walls. Windows systems will be
prefinished aluminum window walls. The first floor will
contain approximately 1500 square feet of commercial space.
The billion menus include a gym. Club room, Penthouse deck.
Uh,
uh, bike storage. Um,
Residential units and the retail space will also assess.
excessive view. Um will be accessed via separate entrances.
entrances, and State Street. Many spaces are located.
the ground floor and top floor. Uh, there is no parking.
the ground floor and top floor. Uh, there is no parking
included in Southbridge 1 uh 1C development.
included in Southbridge 1. Uh 1C development program.
A plan development Provisions that this project?
A plan development Provisions that this projects were
created in alignment with the Chicago Housing Authorities
plan.
Plan forward to establish a mixed income mixed-use.
Community with stakeholders engaging um in this.
Community with stakeholders engaging um, in this since the
early, 2010s and shaped the master plan.
early 2010s and shaped the master plan development has held
monthly meetings with the South Bridge.
held monthly meetings with the South Bridge, working group,
a group of public housing, residents a Representatives with
the interests of the Redevelopment, former ikis home
Community to discuss projects since the plan development.
Inception in 2017.
Current to design.
Current to design evolutions for 1C came through recurring
committee stake.
committees. Stakeholder meetings that have started in 2020.
And then we could get some other renderings of the exterior.
Of 1 more, I think. Yep.
Uh, the project includes transfer of property at the scale
of market value. Um,
of market value, um, to market value. And we'll be financed
from various sources, including to funds from the city. Uh,
Ida will be a senior lender for the permanent financing of
approximately 6.2 million. CA will provide soft funds and
so warrant loan of approximately $10 million and then ID
so warrant loan of approximately $10 million and then Idaho
will also provide subordinate financing of up to 5.9%.
million and 9% litec. Um,
million and 9% litec um, tax credits, which will raise
Equity of approximately.
Equity of approximately 13,647,000.
Equity of approximately 13,647,000 for the benefit of this
transaction.
So be funding this
So be funding, this of up to 11 million 8.
So be funding, this of up to 11 million 870,000 8 7, 1.
So be funding, this of up to 11 million 870,000 87,154 from
Area Wide in
area wide increment from the Reidville and project area
where that represent approximately 23% of the total project
costs.
costs, the Tif funding will be used to reimburse the
developer for Tiff eligible costs um including 50% of the
cost of the construction.
cost of the construction of the low-income and very low
income units.
income units, uh related to soft costs and Remediation uh
uh, remediation costs that provide to funding and will not
be used to.
be used to reimburse developer for a market rate or the
acquired land.
Uh, other funding will consist of comma energy.
uh, other funding will consist of comma energy grants and
proceeds from sale of the um, IA, tax credits donation, tax
credits,
um, allocate by Ida and uh,
um, allocate by Ida and uh generate by the don donation of
the city on land donation uh can be in the form of
the city on land donation, uh can be in the form of lands,
land leases or actual cash.
Land leases or actual cash, are used to encourage private
investment in housing transactions by providing donors of
qualified donations a 1-time tax credit of their Illinois,
state income tax, equal to 50% of the value of the
donation.
donation, donors can choose to transfer the credits to the
project with uh which creates additional project financing
through the sale of those credits.
through the sale of those credits, thus raising additional
Equity, the benefits, the transaction this is for developer
fee um and then there's also a contribution related to the
transfer to the uh donation tax credits along with.
transfer to the uh donation tax credits along with a
hundred dollar general partner Equity, contribution rounds.
um out of the finance team.
Uh, Southbridge phase 1C will provide 80.
Uh, Southbridge phase 1C, will provide 80 mixed income, uh
Studios 1 since 2-bedroom?
Studios 1 since 2-bedroom rental units, available to
households at 3060.
households at 3060 80% median incomes as well as market
rate households.
rate. Households in total, there will be 13 units for cha
housing households with incomes between um up to
housing households with incomes between, um, up to 30%,
Ami, and then 16 units.
Ami, and then 16 units for cha households with incomes
between 30 and 61%,
between 30 and 61% um, Ami and then 15 years.
between 30 and 61%, um, Ami and then 15 years of households
meeting, um, low-income housing tax credits
meeting. Um, low-income housing tax credits, which includes
the no more than 80% Ami. Um, but not reserved for CJ
households and their
households. And there will also be 36 units that are least
without rent.
without rent restrictions or income restrictions.
uh, unit sizes will range from 435 to
Uh, unit sizes will range from 435 to 459 square feet for
the studio.
the studio 626 to 778 square feet for the 1-bedroom.
the studio 626 to 778 square feet for the 1-bedroom and 934
square feet for a 2-bedroom.
square feet for a 2-bedroom unit. The 29 units reserved for
CJ res,
CJ residents will have a resident, will have rent subsidies
sub.
subsidized by project-based vouchers, such as the tenant,
will pay 30% of their income as their contribution for the
rent. The voucher will cover the difference between the 30%
of the tenants, um, income and the monthly rents for the
relevant for the relevant units market rate.
relevant for the relevant units market rate, units will be
set in accordance with the supply and demand the market.
set in accordance with the supply and demand the market,
and the 4 billions that are not subsidized with.
and the 4 billions that are not subsidized with vouchers
have rents that are Limitless. Calculates regarding the
calculated income limits in effect for Chicago metrop.
area.
Oh, the projects, see funds. Uh the project City funds will
be.
be structured in 3 installments during the development
period and 1. Small amount released the certificate of
completion.
completion uh because Tif funds are reimbursable. Um, there
will be no Tif funds.
will be no Tif funds available at closing. These payments
must be bridged with a loan during construction.
The development will deliver 4.
The development will deliver 44 affordable, rental units
targeting households earning between 30 and 80.
targeting households earning between 30 and 80% of the
area's main income and these units will remain.
area's main income, and these units will remain affordable
for at least 30 years. The project also meets the standard,
um, city of Chicago construction compliance,
um, city of Chicago construction compliance requirements,
including prevailing, wage minority and women.
including prevailing, wage minority, Women Business
participation, and City residency.
as the key to projects, outcome the
As the key to projects outcome, the project will deliver 80
units of housing with 44 of those.
units of housing with 44 of those units being affordable
for households, earning between 30 and 80%.
for households, earning between 30 and 80% of the area
median income, um, as mentioned of those
median income. Um, as mentioned of those 29, those units
will specifically set aside for, um, cha households the
development will return,
development will return a tax exempt property to the tax
rules. Generate a new property, taxes revenue for the city
and we estimate
And we estimate that there will be, um, create about 90
construction jobs and 7 permanent jobs.
uh, the
Uh, the project is anticipated to commence in Q4 of 202.
and complete construction is expected to conclude in mid of
2027.
uh, to
Uh, to recap The Proposal transaction. Before you request
Authority.
Authority for the Department of Housing. Um,
The for a tiff free development agreement and the land.
The for a tiff free development agreement and the land sale
of Southbridge 1C LLC. Um, located at 2311 uh,
of Southbridge 1C LLC, um, located at 2311, uh, to 15 South
State Street. Uh, and also
State Street, uh, and also also known as 3 to 5 East 23rd
Street.
Street uh with us today is wool Woodley senior
Street uh with us today is wool Woodley, senior vice
president of um TCB and we also have cha represented here
as well.
Thank you.
Uh, thank you very much. Any questions on this 1?
Yes, Alderman. Lee
Question. Just comment just Cong.
question just comment. Just congratulations on this. It's
right next door to the 11th. Ward, as you mentioned
neighboring, Chinatown, so excited to see further
development in that area you have
development in that area. You have my full support. Thank
you. Thank you. And I thank you for your support.
you. Thank you. And I thank you for your support as well,
Alderman, Lee and also Alderman Robinson.
Alderman, Lee and also Alderman Robinson who supported
that. Uh thank you move to pass uh by Allman Riley. All
those in favor. Signify by saying I
Opposed, in the opinion of the chair, the eyes have it.
Opposed in the opinion of the chair, the eyes have it. And
the do pass, recommendation will be reported out at the
next city council meeting. I thank you all.
All right, item number 10 is.
All right, item number 10 is uh, proposed order.
Authorizing the payment
the payment. Thank you. Thank you guys. Authorizing the
payment of various small claims against the city or direct
introduction that was sent.
introduction that was sent electronically to everyone. If
there are no objections these
there are no objections, these will be placed on the
Omnibus and item number
Omnibus and item, number 11 is a proposed. Order denying
the payment,
the payment of various small claims against the city of
Chicago? Also, a direct introduction sent electronically.
Chicago, also, a direct introduction sent electronically to
everyone, and if there are no objections,
everyone. And if there are no objections, these 2 will be
placed in the Omnibus item. Number 12 is a miscellaneous.
Uh,
uh, 2 proposed orders authorizing charitable.
2 proposed orders authorizing charitable solicitation on
the public way.
A direct introduction for Knights of Columbus City.
A direct introduction for Knights of Columbus Citywide,
July, 31st, 2025 to.
31st 2025 to December 31st 2025 and the
July, 31st 2025 to December 31st 2025 and the American
civil liberties Union Citywide July.
civil liberties Union Citywide July, 31st, 2025 to
December.
civil liberties Union Citywide July, 31st 2025 to December,
31st 2025, if there are no objection.
31st 2025. If there are no objections, the permits are
approved and they will be placed on.
approved and they will be placed on file with the clerk.
There being no further business.
There being no further business before the committee
alderman.
Alderman, spaz moves to a journal
Alderman, spaz moves to adjourn all those in favor of the
motion signify by saying, I I opposed and the opinion of
chair of the eyes have it and the committee on finance is
hereby.
hereby adjourned. Have a great afternoon, everyone.