Good afternoon, everyone.
The meeting of the Committee on Economic Capital Technology
developments call to order.
We now have a roll call to establish quorum.
Please use the iPads
provided to you and mark yourself present.
Note that your present response will be deemed a yes vote
when this quorum call is used as a reference.
Vote for later. Mr. Venegas, please open the vote.
Okay.
Oh, yeah. Let me, I can wanted to speak.
Yeah, go ahead. Go ahead.
Der Alman Hall,
alderman Chico, Al Woman Gutierrez,
alderman Lopez, Al Woman
Re, Alderwoman Cruz.
Alderman Cordona. Alderman Wapac.
Present Alderwoman mitts.
Alderman Napolitano Present.
Alderman Riley Alderman Alderwoman Man. H Alder.
Uh, chairman. We have a quorum.
Thank you. Ladies and gentlemen. We have a quorum.
Uh, there have no, there no
alderman have requested to participate.
Today's meeting remotely under Rule 59,
uh, blah, blah, blah.
For today's meeting, we did not receive a public comment.
Um, we do not have any public commenters at this time.
Anyone wishing to make public comments?
Alright, that concludes the public comment period.
Uh, portion of our meeting, the first order
of business is approved of the October, 2025 monthly report,
which all members of the committee should have received
via the shared drive.
And any questions or comments from the committee members
regarding the report may have a motion to recommend approval
of the October 20, 20, 25 monthly report.
By the same roll call vote was applied to determine Quorum
Alderman, um, Mitchell.
So moves here. No objections. So ordered.
Um, uh, ladies
and gentlemen, items one through 22 on the agenda are
ordinances, dealing with the scope of services, budget,
and management agreements
for different special service areas.
Item one on the agenda is an ordinance, uh,
regarding the scope of services
and budget for special service area number two,
Belmont Central Area Department of Planning
and Development has provided us with a substitute.
May I have a motion to accept a substitute
vice chair Mosey motion
to accept Substitute All those in favor, please say aye.
Aye. Any and the polls say, nay.
The chairman opinion of the chair
of the ayes have it substitute has been adopted.
Item two through 22 on the agenda
or ordinances regarding the scope of services, budgets,
and management agreements
for the following special service areas,
number one dash 2015 State Street, number eight,
greater Lakeview, east number 17 dash 2025 Central Lakeview.
Number 19, Howard Street, number 20,
Southwestern Avenue Number 21 dash 2016 Lincoln Square.
Number 24 Clark Street, Rogers Park, uh,
number 25 Little Village,
28 number 28 dash 20 14 6 corners Number 29 dash 2014
westtown number 31 Greater Ravenswood.
Number 38 North Center.
Number 43 Clark Street,
Lincoln Park Number 4403rd Street, Beverly Number,
4503rd Street, Halstead Number 47, cottage Grove, 48,
old Town Number 54 Sheridan Road
Number 56 dash 2022 Bronzeville, number 63, Chicago Albany,
Carla Number 75 Oak Street.
Um, item 23 is a term extension
and the boundary expansion for SSA Number 27 Lakeview.
Mark Roan, the Deputy Commissioner for the Department
of Planning and Development is here
to present in support of these items.
Will be available to answer any questions. Mr.
Roan, please begin.
Begin the presentation when you're ready.
Uh, before you start, Mr. Roan,
please let the record reflect that Alderman Cruz is here
for the purpose of Quorum as well as Alderman Cardona,
as well as Alderman Chico.
Good afternoon, Mr. Chairman
and me, members of the committee.
My name is Mark Roan,
an assistant commissioner in the
Department of Planning and Development.
There are currently 58 special service areas in Chicago
2026.
Budget ordinances for eight
of the ssas were approved in October.
The remaining 50 are on today's agenda.
23 were introduced to City Council in October,
and the remaining 27 are being introduced directly today.
All of these budgets have been reviewed by DPD as well
as the Office of Budget and Management
and department of Law DPD staff then works
with the local service providers to ensure
that all comments raised by OBM and law are addressed
and clarified prior
to preparing a budget ordinance for introduction.
Once approval is granted by OBM
and Law Ordinance packages are prepared
for introduction to City council.
DPD has received letters of support,
or at least no objections from affected alders of 48
of the 50 ordinances.
On today's agenda, the two ssas without full alderman
support are SSAS three
and 59, which are managed by the same service provider.
SSA number three on 63rd Street stretches over three miles
across six wards.
The most of any S-S-A-D-P-D reached out to all six alders
to confirm support and see if there could be a consensus on
how to proceed with the budget.
Ordinance DPD has received letters of support from two
of the six Alders, alders and Gutierrez.
Uh, the proposed levy
for SSA number three is 1,000,107 $685 would
fund services such as snowplowing, litter abatement,
landscaping storefront improvements,
and security for SSA 59 dash 2022.
DPD is concerned.
Con confirmed support from one of the three als
that being Alderwoman Gutierrez, the proposed levy
for SSA 59 is $185,033,
and would fund services similar to SSA number three, due
to the lack of alderman consensus, DPD has requested
to hold, uh, these two ordinances
until the next committee meeting in December.
This will provide additional time
to address any outstanding issues
toward reaching a consensus.
One available option is to substitute a levy only ordinance
to meet the county's fe uh, filing deadline
to ensure services are funded in 2026.
The service provider designation could then be
designated separately.
DPD has facilitated this process with other ssas
to address aldermanic concerns.
Um, as many of you know, DPD works to engage Alders
to get input when issues arise in local ssas.
We appreciate your assistance
and ask for the committee's favorable
recommendation of these items. Alright, thank you.
Thank you. Um, mark, um,
the alderman that represent these ssas have expressed
support or non objection to these, uh, items.
Are there any questions or
comments from members of the committee?
Alderman uh, Lopez followed
by Alderman Waga back, uh, Mr.
Al Alderman Lopez, before you start,
I'll let the record reflect
that Alderman MITs is joining as well.
Thank you. Alderman Lopez.
Thank you chairman, and good
afternoon members of the committee.
Um, just as a, a quick point of order first, are we,
did we already dispense with items leading up to 23?
Are we doing the No. No.
So We split 'em up from those who were introduced?
Yeah. So, uh, which, um, items 22
through 23, um, are items that were introduced
normally items, uh,
24 on SSA number three
and item 40 on SSA 59 dash 22 will be deferred.
Well, and we'll, we'll do that later on,
but he did mention it earlier
that we're holding those two items. Well, I,
I know Mr.
Rohan spoke to them, so I just wanted to make sure
that I'm speaking with what's on the agenda
because, well, if you'll indulge me since we're kind
of leaping around a little bit, uh, the two items,
24 and 40, which deal
with SSA three and SSA
59 dash 2022.
Thank you. 59. Um, I'm, I can assure you, chairman,
that it's not a matter of nonobject
because there are objections, um, from myself
and if I could be so bold, is
to actually say from Alderman Coleman as well.
And we've made this known to the department with regards
to the, the operator
of the SSA Greater Southwest Development Corporation
for its lack of connectivity, uh,
with our offices and our community.
Um, so I want to make sure that this isn't
because only one person wrote a letter, it's
because there are others like myself and Coleman
and who are very frustrated with this operator.
Um, so if you weren't going to hold it, I was going to move
to defer it, um,
because I don't necessarily see a need to proceed
with their budget with either
of their budgets at this time. Thank
You. Thank you. Um, ultimate
we are holding, um, that item
and I will allow, uh, you
and, uh, alderman Coleman the opportunity to speak with DPD,
uh, to see if there's a path forward for, for this issue.
Okay. Thank you, alderman wa back.
Thank you, chairman. Um, just, uh, as a general item
for all the items that we'll be passing today on the ssas
and then ones that were passed in, um, that will
have in the Rule 45, um, Mr.
Ro Rohan, could you provide us with, um, for all the ssas,
the A, any one of them
that had an annual budget carryover over the last three
years, what that carryover was for?
Whether it was a multi-year project,
so if they didn't finish the project
and it had to be carried over to the next year,
or if those carryovers went
to another line item in their budget.
If, um, if you can make that available through the chair
for all of these, I would appreciate it.
Thank you. Thank you.
Thank you, alderman. We expect any other members have
questions, uh, regarding item two through 23.
All right. Um, seeing no questions may have a motion
to recommend pass of these items.
Uh, strike that.
May have a motion to recommend these passes
of these ordinances by the same roll call vote
that was applied to establish quorum.
Uh, Aman Somos here. No objections.
So ordered the DO pass recommendation will report
out the next city council meeting.
Items 24 through 50 on the agenda are directly introduced
ordinances dealing with the scope of services,
budgets, and management agreements.
Department of Planning and Development has requested
that item 24, uh, SSA number three, as well
as item 40 on SSA 59 dash 2022 be deferred at this time.
May I have a motion to defer these two items? Altman Lopez?
Motions to defer here. No objections. So ordered.
The following special service errors are being considered
for passage number four 95th and Beverly.
Number five, commercial Avenue.
Number seven, KE Kedzie Industrial Park.
Number 10, back of the yards 13 stockyards.
Number 16, Greek Town number 22 Clark Street,
Andersonville number 32, 20 24, Auburn Gresham,
number 33, Wicker Park, Bucktown number 39, Brighton
Archer number 42 70 first Street, Stony Island, number 50,
Kelly Man Heights, Avalon number 51,
Chatham Number 52 20 21, 50 first Street number 55,
a hundred 11th and Kedzie number 60, Albany Park,
61 dash 2023, Hyde Park, number 69 90 fifth Ashland,
number 71 Rosalyn Number 72, the Village, Chicago Avenue,
cultural Corridor number 76 20 24 North Michigan Avenue,
number 77 West Garfield Park, number 80,
Englewood Number 81 87 Street Business Corridor,
corridor number 82 Division, uh, Dearborn, mark Rosin,
the Deputy Commissioner for Department of Planning.
And, and, and developments here to present
and support, uh, these items
that will be available to answer any questions.
Mr. Rohan, please begin the presentation when you're ready.
Uh, Mr. Chairman, I have no additional comments.
Thank you. Are any
questions from members of the committee?
All right. Uh, seeing no questions from any members
of the committee, um, uh, for the record, we, uh,
the alderman that represent these ssas have expressed
support or non objection of these items.
Uh, seeing no questions may have a motion to recommend pass
to these ordinance by the same roll call vote.
Those apply to established quorum Vice Chair,
Mosley sole moves hearing no objections
to ordered do pass recommendation will be reported out
the next city council meeting.
Thank you. Items 51
through 53 on the agenda are series of tax incentives.
Item 51 is a Class six B tax incentive
for property at 4,000 South Racine
and accompanying redevelopment agreement.
Shavan Patel Financial, uh, planning analysis
for the Department of Planning and Development is here
to present in support of the item
and be available to answer any questions.
We also have members of the development team available
to answer any questions I would ask the development team.
Please step forward at these chairs here,
or the representative, Mr. Patel, when you're,
when you're ready, please begin.
Begin the presentation.
Okay. Uh, good morning.
Chairman Viga, the members of the Committee on
Economic Capital and Technology Development.
For the record, my name is Chauvin Patel, um,
from Department of Planning and Development.
I'm joined today by Robert Laar on behalf of Chicago,
N-L-M-L-L-C,
and Toby Beberg, vice President
of Operations at National Safety Apparel.
I am here today to request the approval
of an ordinance supporting a second renewal
for a Class six B property tax incentive
for 4,000 South Racing Avenue for the purpose
of its investments into 140,000 square foot facility.
So the project is located at 4,000 South Racing Avenue in
the New City community area.
It's in the Southwest planning area,
and it's represented by Al Women, Nicole Lee,
who is in support of the project.
Um, here's a view of the neighborhood context.
Um, it is outlined in red along Racing Avenue.
Um, this slide depicts the current conditions
of the interior of the building since being purchased in
2021 by the current owners.
By the current owners. This apparel manufacturing plant has
been brought up to code
and made usable for its current tenants
National Safety apparel for its current tenants,
sorry, national Safety Apparel.
This site has already has an existing six B property tax
abatement and renewing It will help lower operating costs
for the tenant.
And this slide depicts the exterior of the facility.
So a little bit about the occupier.
So the current tenant National Safety Apparel was founded in
1935 as a family business producing safety gloves
for steelworkers in Cleveland, Ohio.
And now it operates eight manufacturing
and distribution plants across the Midwest.
NSA produces American sewn, flame resistant
and arc rated clothing, high visibility apparel, thermal
and heat protective gear, and specialized pp
and e through a portfolio of brands
for use in the utilities, manufacturing, construction, oil
and gas defense, and military sectors.
NSA is committed
to a diverse workforce employing sewing operators from over
40 countries, representing a global workforce culture.
And they are committed to US manufacturing with majority
of its products being American Zone
reinforcing domestic supply chains.
The applicant, Chicago, N-L-M-L-L-L-C,
is seeking a second renewal to its six B tax incentive.
The current owner and tenant have invested $6.7 million
to rehabilitate the long vacant
140,000 square foot industrial warehouse Improvements
included a new 14,000 square foot,
80 DA accessible office space, lighting
and door replacements, egress updates, interior painting,
expanded restrooms, and compressed air
piping to support operations.
Tenant improvements included new equipment such
as scissor lifts, vehicle lifts, and sewing machinery.
The tenant plans an additional $5 million investment over
the incentive period, including,
but not limited to upgrades
that will enhance production capacity, infrastructure,
building systems, and site aesthetics.
While this is a request to support a second renewal
for the Class six B incentive,
this is the current owner's first application for, uh,
the renewal, um, since it was purchased in 2021,
and it would directly benefit the tenant under the
triple net lease structure.
The total tax savings are estimated to be
around $1.8 million with a net present value of 1.3.
Construction started in 2021, and it was completed by 2023.
So the project budget is split into $11 million of
acquisition, $5.5 million in hard costs,
600,000 in soft costs,
and around 600,000 in equipment purchases for a total
of 17.7 million.
And that was funded by 6 million in equity
and 11.6 million of debt.
Again, the property tax savings will be 1.8 million
with a $1.3 million MPV.
So the public benefits one is including the site activation
and sustained investment.
Since purchasing the then vacant property
for $11 million in 2021,
the owner has invested $2.6 million in building improvements
included two, but not limited to HVAC lighting, fire systems
and plumbing systems, while the tenant has invested
$3.9 million in furniture fixtures and equipment, machinery
and equipment, including vehicle lifts, scissor lifts,
and other sewing machines
and equipment, NSA plans
to invest in additional $5 million over the next 12 years
to increase their capacity in the space.
Secondly, there is the long-term economic sustainability
renewal will help subsidize
or stabilize, I should say, operations, ensuring
that the property continues
to generate long-term tax revenue rather than facing vacancy
or reduced utilization.
This renewable also allow for future expansion of production
and additional job creation,
which brings me to my last point.
Job creation and retention.
National safety apparel employs 250 Chicago residents
who are a part of the UFCW local union
and plans to hire an additional 30 to 40 employees.
If the six feet is retained, 95%
of those reside in a 20 minute commute
area from the facility.
Thank you for your favorable consideration of this request.
I, as well as representatives on behalf of Chicago, NLM
and National Safety Apparel's team are happy
to answer any questions the committee may
have about this renewal.
Thank you. Uh, Mr. Patel, also for the record, we have
a letter of support provided by Alderman Lee.
Uh, any questions from members of the committee?
Alderman Napolitano.
Thank you, chairman. Um,
I just have really quick question for you.
I think you mentioned it, but I
apologize I wasn't paying attention.
Uh, it's a savings or a tech,
a tax incentive of, of how much?
1.7 million at
One point. 1.8.
Okay. And what, what did you say
that money's gonna be used for?
How's it gonna offset your cost?
So the, I mean,
so the current tenant has already invested 3.9 million on
top of the 2.7 by the owner,
but they plan to invest another 5 million moving forward,
and that's gonna be for capacity, um,
enhanced production capacity, infrastructure,
and building systems, as well
as like site aesthetics for that property. Alright.
So it's gonna help out the growth of the company?
Yeah, immense. Okay. And how many employees do you have?
They said they have 250 in Chicago residents,
and then plans for 30 to 40 additional two over the next
12. Two. Okay. It's
over a hundred, yeah. Employed. Okay. Okay.
Well, I hope this tax incentive helps you
because there might be one on the way that doesn't help you.
So I appreciate you being here today. Thank you.
Any other, any other questions?
Any other questions for members of the committee?
Alright, uh, Alderwoman Lee. Oh,
You Thank you. Chair. Oh,
I'm sorry.
I'm gonna throw something at you. Um, thank you Chair.
Um, I have, uh, had the privilege of, uh, getting
to know national safety apparel since they were located in
the older part of the ward, um,
which is now in the 25th Ward.
But when I was first, uh, appointed, uh, they were one
of the first businesses I visited, uh, they employ,
I would say the majority of your employees are
constituents of mine, actually.
They're seamstresses Chinese, uh,
American seamstresses from my community, um,
and their tenure.
These are not, uh, transient employees.
These are seamstresses who are, um, masters at their craft,
and they've been there, I think the average tenure
of your employees is about 10 years, uh, 10 plus years.
And that says something about the
kind of company that you are.
Um, so I wanna share with my colleagues how, um,
this company is the kind of company that we want.
I think everybody would want in their communities.
Um, they, uh, they care about their employees.
They, they take care of them, um,
and they invest in people and the community.
And when the opportunity for them to grow came, uh,
they wanted to stay in 11, so they moved to the stockyards.
Um, and they invested millions
of dollars into this facility, um, despite the fact
that they are behind a rail line,
which was also a challenge.
Uh, so I, I ask the, uh,
the committee's favorable consideration of this renewal.
Yes, it's a renewal, and I know, you know, that comes
with some, uh, uh, some controversy sometimes.
But this is not a renewal, uh,
for this tenant or for this owner.
This is their first time applying for this,
and I think this is exactly what the six Bs are billed for.
Um, I'm excited for the fact that they're gonna be able
to potentially increase the number of employees
by another 30 to 40, um,
and that they have room to grow in this facility,
which is even more exciting for me
because they're gonna continue to do that.
They've already talked about a potential
of an additional $5 million in investment over the next,
um, several years.
So, uh, I think they're great.
I think this is a great use of the six B.
Um, and, and hopefully you don't have something else coming
at you soon because you got over a hundred
employees. Thank you, chair.
Thank you Alderman Lee, any other questions for,
um, alderman Napolitano?
Hey, guys. Um, lemme back up a little bit.
I didn't wanna scare you with what I said, um,
but I'm, I'm glad you chose Chicago to grow.
I, I'm, I'm, I'm glad you're bringing
jobs to the city of Chicago.
There's a lot of people in this room fighting
for the opposite side of what I, what I just said.
So hopefully we can help you out on the back end of this.
So thank you for choosing Chicago.
Thank you. All right.
Seeing no other questions, uh, may I have a motion
to recommend pass this item by the same roll call
that was applied to established quorum?
So moved. WO Lease. So moved hearing no objections.
So ordered to do pass recommendation,
be report out the next city council meeting.
Thank you, gentlemen. Thank, thank.
Sorry. You wanted what?
Oh, yeah. Oh, strike that. Uh, no, no. Go.
You, you guys can go. It's our, our item here.
Um, we're gonna, we're going to, uh,
rescind Alderwoman Lee's motion.
We're gonna allow for Alderman Cardona to make the motion
to recommend passage of this, of the item, um,
with the blah blah.
Hold on a second out,
Boys. Thank you.
And this by the same roll call that was applied
to establish quorum here.
No objections. So ordered
to do pass recommendation would report
out the next city council meeting.
Item item two, item 52, rather is a Class L tax
and Center for property at 1 35 South LaSalle Street.
Uh, Deanna Cavalo, assistant commissioner for Department
of Planning is here to present in support of the item
and will be available to answer any questions.
We also will have members of the development team
available to answer any questions.
Uh, when you're ready. Uh, Ms.
Cavalo, please begin the presentation.
Thank you. Chairman Viegas for the record.
My name is Deanna Cavallo, assistant Commissioner
with the Department of Planning and Development.
The ordinance before you is in support
of a Class L property tax incentive for the field building.
The property is located in what,
35 South LaSalle In the 34th ward.
Alderman Conway has provided a letter
of support for the project.
The project is one of the RFP finalists chosen as part
of the DPDs LaSalle Corridor Rev Revitalization Initiative.
The Landmark 44 Story Field Building is an early 1930s Art
Deco Tower designed by Graham Anderson probes
and white that was constructed over a period of six years,
completed in 1934.
The field building was the last major downtown construction
project built between the stock market crash of 1929
and mid 19 1950s.
When development resumed the development partners from
AmTrust Riverside
and DL three Realty have submitted detailed architectural
plans, which were reviewed
and conditionally approved by the permit review committee
of the commission on Chicago Landmarks.
The team proposes
to substantially rehabilitate the historic office building
in phase one for residential and commercial uses.
Shown in red on the diagram to the right,
the basement level, ground floor,
and second floor will accommodate commercial retail uses.
Uh, green levels three
and four will become enclosed parking
access from the North alley
and the orange colored floors five
through 14 will be converted into residential apartments.
Roof levels five
and 25 are designed to serve
as re residential amenity spaces.
The remainder of the building,
which has historically been used as offices,
would remain available for future development
and re occupancy.
In addition to Class L,
the applicant is pursuing federal historic tax credits in
coordination with the state historic preservation office.
Exterior work includes repair of the granite building base
and upper floor masonry units.
A dedicated residential entrance on LaSalle elevation will
be created obscured.
Window openings will also be restored to clear glazing and,
and trimmed with metal frames
to match the historic openings window sashes on the bottom
four floors will be retained
and restored on the residential floors.
Five through 14 windows replicating the appearance
of the historic double hung sashes will be installed.
Cast aluminum spanel panels will be preserved in place.
Certainly in red are non historic mechanical penthouses
that were constructed above the four corners
of the 25th floor.
These housings will be removed, new roof surfaces installed
and outdoor amenity spaces created in their place.
As part of the 1994 landmark designation,
the interior arcade was identified
as a character defining feature to be preserved.
Several display windows will be minimally altered,
but the remainder of the arcade's materials
and finishes will be preserved.
The location of these display window modifications is
indicated on this floor plan
by the five blue dots toward the top
of this image in the northern side aisles,
horizontal red bars indicate locations
of new clear glass security turnstiles to be installed.
The project will comply
with the sustainable policy requirements.
The minimum investment required for eligibility
for Class L is just over 17.1 million.
Exclusive of other incentives,
the applicant will be spending over 190 million on
qualifying rehabilitation expenses.
Total project costs are estimated to be two, uh, excuse me,
2 41 0.6 million, including acquisition costs.
Separate pins will be assigned to the commercial
and residential floors,
and the class cell in incentive is to be applied
to the commercial floors only.
DPD has estimated its total tax abatement to the applicant.
Over the 12 years of the incentive is a little over
4.4 million, which is three point
just under 3.3 net present value.
The city's share of that tax abatement is estimated at
a little over 1 million, which is 757 7 28
in net present value.
After the Class L period, the property is estimated
to generate annual taxes
of $953,038
or 460,696
more than if the building were not rehabilitated.
The Commission of Chicago Landmarks has reviewed the budget
and scope of work for the project,
and along with the Department of Planning
and Development recommends approval.
Representatives of the applicant are here
to answer any questions about the project. Thank you.
Thank you. Uh, Ms.
Ello, um, uh, alderman Conway has
provided a letter of support for this item.
Um, are there any questions
or comments from members of the committee?
Alderman Mitchell.
Thank you, chairman. Um, refresh our memory.
This, this, uh, this came across finance
committee a few months ago, correct?
Yes, sir. Um, please
Identify yourself. This
is Alex Barock with DL three Realty, one
of the partners for Field Building revitalization.
Um, and when it came across finance, what was the amount
of money for from tiff?
Uh, 98,000,009 million.
And in that meeting, and I,
I don't remember you seeing you,
but it was, the question was raised about the MBE, uh,
participation, the plan for hiring
and things like that, which we have not seen.
I have not seen it. So if anybody else has seen it, then
I'll concede to that, but I have not, I have not seen it.
And I, I made a very specific request, not just
for the 1 35 building, but one 50 as well.
Uh, so we have a, uh, we've engaged, uh, a joint venture
between WE O'Neill and GMA,
and I think we are still scheduling our intake for our, uh,
MBWB compliance, uh, meeting.
Uh, we've been through this, uh, DL three.
We've been through this process many occasions.
And, uh, we've, uh, exceeded,
You're very familiar with deal obligation.
What is DL three's percentage for the development of
This? Uh, 25%.
What is, uh, gm GMA?
Uh, so D three is on the development side
and ownership side, but GMA is, uh, I believe it's,
I alderman, I, I apologize.
I'm gonna have to get back to you. It's, it's a, it's a, uh,
it's a minority stake, but it's a significant sake. Mm-hmm.
Mm-hmm. Has the whole plan has been started
for the MBE participation.
Uh, so we have not submitted a utilization plan today,
but, uh, we are fully aware of the process, uh, to, to me,
to exceed those thresholds.
Alderman? Um, yes, ma'am.
As part of the, of the TIFF
Senator for yourself for the record, please.
Oh, I'm sorry. Bridget O'Keefe with Marshall Brown.
I'm the attorney for the applicant.
Um, as part of the TIFF
and the Class L, there's gonna be a requirement
to put together the plan that has to be submitted prior
to closing, uh, prior to cons commencement of construction.
So it is something they are going to be working on.
They have not yet identified the subs, so
that's why they haven't yet come in with the absolute plan.
But it's something they're definitely committed to.
And I just wanna point out that this Class L just applies
to the three commercial floors,
and that will be controlled by DL three.
That's their portion of the project.
Yeah. Thank you for that info. I'm, I'm well aware.
So, um, you, you mentioned that, you know,
you, you guys are working on the plan.
Um, then if that, if everything is being done in good faith,
then you guys shouldn't have a problem
with holding off on this class sale until we see that, see,
see what direction is this is going.
Uh, so I, I understand
that the utilization plan is due prior
to closing on the RDA.
I think the goal is to get through Class L process as
Class L is not, it's not a hold up.
Well, the Class L, the importance of the Class L is
to help, um, provide assurances
to potential capital financing that this will be in place.
Oh, okay. And it helps make, uh, the package more attractive
to potential lenders, which will then lead,
lead to closing, right.
Which will allow us to then put together the plan.
So it is an essential piece of the puzzle.
So is my vote. And,
and we greatly appreciate your support.
We would greatly appreciate your
support for the project, sir. Yeah,
I, you know, I, I hate the Conway is not here
because I'm inclined to request to hold it
because, you know, we, we approve a lot of money in Tiff
and, and through my travels, you know, we hear, we hear,
you know, you guys, not you guys in particular,
but people come and say the same thing
and then don't, don't, don't carry out, uh,
the necessary activity to ensure MBE participation
or adequate NBE participation.
And Mike actually really frustrated with that, so, well, I,
I, I, I will.
So you hear me. Um, You
and I have been through this Yeah. For
12 years. So, alderman
Mitchell, um, you
and I, we passed an ordinance that a allows
for a clawback if the, uh,
developers don't meet their requirements.
So, um, if you,
if you, if you like, um, we could, um,
have them put forward a plan now to see if it's something
that would satisfy, uh, your questions.
And after, uh, it, if it does satisfy your que,
if it does satisfy what you're, uh, trying to accomplish,
um, then we can move forward.
If it doesn't, then, uh,
we could just hold it and not report it out.
But at the same time, I do wanna, I do wanna remind members
of the body that, uh, alderman Mitchell
and I did work on a ordinance that allow for the ability
for DPD to claw back incentives if, uh, some
of these goals are not met.
Uh, so I think, um, based on, um, the, um,
developer, uh, uh, 25% minority African-American owned,
GMA African-American owned, I think that the team has, um,
provided, uh, a good faith right now.
But, uh, if you'd like to see it in writing,
I'd be more than happy to, to get them to submit that
to you, to the, to the, to the committee through the chair,
so that way we can, uh, move forward.
But I will, um, listen to what you have to say.
Mr. Chairman, can, I can address one. Of
Course, Bridget, Just a couple things.
Thank and thank you. And we understand
and definitely appreciate the
sentiments that you've expressed.
Um, as part of this ordinance with the Class L, we have
to go for final certification after the project's done.
And we don't get our incentive
until the final certification's
approved by the Landmark Commission.
The ordinance as drafted, provides that we have to submit
our actuals, our actual numbers to the committee, uh, prior
to final certification being granted.
So you all have the ultimate authority at the end.
Once the project is done, we have to prove ourselves.
Mm-hmm. The, the challenge we have right now is,
it's just a little premature
because we have the general contractors,
but we don't have the subs, which is really where the,
the metal will meet the road on this.
And, and it is important for us to work our way to closing,
um, to make sure that we can make this project a reality.
Our minimum requirements are 17 million.
We're investing 190 million in eligible costs.
We've made commitments
to provide the information at the commencement
of construction and at the final certification.
Um, we definitely are sensitive to the council's concerns,
and we would, and we really do wanna make sure
that we address them, but there is a reason
for this going forward now,
and we would ask that you keep that in mind as you vote.
Yeah. Um, thank you for you, um, chairman,
um, outta respect for the ottoman
of the 34th Ward, which I have not talked to about this,
I will not make a motion to hold it.
However, I, I, I would like to, couple of things.
One, I'll, I'll reach out and talk to 'em myself.
Number two, uh, finance committee,
when we are, when we've approved the, uh, financing for,
this was a few months ago.
Nobody has said anything.
So just keeping us abreast on the progress
or having any, you know, making an ability
to have these kind of conversations
before makes it to committee kind of,
it helps out the effort.
So, you know, outta respect for the Alderman,
and I understand totally what has to happen.
Um, but I, I would appreciate, you know,
you guys being a lot more forthcoming with the progress,
the plan, um, so we can review it got, and, and have a,
and feel a lot better, um, about, you know, the amount
of money from Tiff and the, the class, this Class L.
Um, so please make good faith effort
to get that information.
Um, and, and I'll leave it at that. Thank
You Alderman. Mitchell,
any other question from members of the committee?
Um, uh, attorney O'Keefe, if you could, um,
when these utilization plans are being formulated,
if you could submit that back to us, um, for our information
so that way, uh, we understand what your company did
as it relates to trying, uh, make, making efforts to comply
with the 26 and six.
Um, 'cause we wanna make sure
that this is not gonna be your only project
ever in the city of Chicago.
We thank you for the investment, uh,
but we wanna just wanna make sure that, uh, a reflection
of the city of Chicago
is participating on some of these projects.
So to that extent, when you get
that utilization plan completed, if you can submit it
through the chair and I'll make sure to get it
through the members, we'd be happy to do so.
Sir, thank you. Thank you. Thank you. Thank you.
Uh, hearing no other questions
or any comments, may have a motion to recommend passes
of this item by the same roll call vote
that was established, that was, uh, taken
to establish Quorum.
Adam LaSpada makes the motion, uh,
to approve hearing No objections.
Um, hearing no objections, so ordered.
The due pass recommendation will be reported
out the next city council meeting.
Thank you. Thank you very much. Thank you.
Um, item 53 is a Class L tax incentive
for property at 10 32 West Fulton
and a company redevelopment agreement.
Uh, Deanna Colo, assistant commissioner for the Department
of Planning and Development here to present support
of the item will be available to answer any questions.
We also have members of the development team
available to answer any questions.
Uh, when you're ready, Ms.
Cavallo, please begin the presentation.
Thank you, chairman Again.
Uh, for the record, my name is Deanna Cavalo,
assistant Commissioner with Department
of Planning and Development.
The ordinance before you is in support of a Class L property
tax incentive for 10 32 West Fulton Market.
The properties is located in the 27th Ward in the near West
side community area.
Alderman Burnett's office is indicated.
Their support, the Fulton Randolph Market District was
designated as Chicago Landmark District in 2015.
The subject property identified
by the Red Star at the corner of Fulton
and Carpenter Streets is a
contributing building to the district.
The owner, Senator International Property LLC,
is the applicant for the Class L Incentive.
Senator International Manufacturers designed forward
office furniture.
They're based in Ohio,
but this location is meant to serve as a showroom
for the Chicago market.
The three story brick brick warehouse was designed in 1905
by the AL Architectural firm of Shock
and Swanson for Austin resident Fred c Beeson,
a former manager of the Chicago Veneer Company.
The building is currently vacant on the interior.
Many of the 1905 warehouses, walls
and ceiling surfaces have been covered up
and obscured by an extensive network
of mechanical panels util utility chases and HVAC duct work.
As the previous owner created four separate utility systems
for each level of the building.
The formerly open timber frame interiors now have
complicated duct work, exposed conduit
and freestanding utility closets
scattered across all levels.
The project will consolidate the mechanicals into a whole
building system, which will allow for the removal
of visual clutter, the creation of open showrooms
for the tenant, and the chance to reveal the timber framing
of this early warehouse building.
Exterior improvement to the building will include removal
of the rooftop compressor units from the four split systems
repair of the roof membrane and coping repairs.
Select areas of storefront glazing will be replaced
and metal grades will be removed.
Mainstream spot repair and pointing will be performed.
The project will comply
with the sustainable development policy.
The Class L improvements are estimated to be completed
by February 26.
The minimum investment required for eligibility
for Class L is 1.64 million.
The applicant will be spending a little, a little over
2.67 million on qualifying rehabilitation expenses.
Total project costs for the project are estimated
to be about 4.1 million.
DPD has estimated that the total tax abatement
to the applicant over the 12 years
of the incentive is 1.9 million,
which is 1.4 net present value.
The city's share of that tax abatement is estimated at
443,561,
which is
$329,555
net present value.
After the Class L period, the property's estimated
to generate annual taxes of just under 400,000
or 148,780 more than
if the building were not rehabilitated.
It is anticipated that the rehabilitation project will
create 120 construction jobs and 13 permanent jobs.
So, uh, the commission on Chicago Landmarks has reviewed the
budget and scope, and along with the DPD,
uh, recommends approval.
And we do have representatives
of the property owner here if you have
any questions. Thank you.
Thank you. Um, Ms.
Colo, um, for the record, alderman Burnett has
provided a letter of support for this item.
Are there any questions or comments
from members of the committee?
Alderman Beck.
Thanks, chairman. Um, Dianna, what was the,
what were the businesses that were there before,
before it was vacant?
Um, you know, I don't know offhand
who was the prior owner of this.
Um, oh, sorry. It's Paul Hobson from Center International.
Uh, I'm not absolutely sure,
because when we went to visit the building,
it was pretty much vacant.
It was, there was, I know someone still owned it,
but there was no one physically working
in there. Okay. It was just
Himself. So there weren't
any employees in there. There
Was no one in there working at all.
They've, they'd gone elsewhere, so.
Okay. And then it's 13 permanent employees, uh, all doing
sales or what do they do? No,
But the, the idea really is that
we currently have a showroom in the merchandise mar we gonna
move that showroom outta the merchandise up to Fulton.
We believe that's the direction of travel.
The idea of this application is that we want
to turn the building into our North American, uh, sales
and marketing headquarters, uh, which this
grant would allow us to do.
Uh, and that would generate additional 13 jobs,
which are across predominantly marketing, uh,
sales management, and, uh, product, you know,
general product selling activities. Yeah.
Okay. And what was the purchase price of the building?
Um, I think it was
8 million. One. 8.2 million?
Yeah. Correct.
Okay. Um, okay. Uh, that's all I had.
All, uh, chairman, just wanted to thank you.
Make sure there was, I was looking at it
and it did seem empty beforehand,
but I wasn't sure how long.
So thank you very much. Could,
Could you also explain your company, right?
I mean, you're headquartered in the uk so
Yeah, so we're the company, uh, Senate International.
They're family owned, business based in the uk.
We employ around 1200 people in the uk. Uh,
How many was that? 1200?
200.
Um, in the US we're a much smaller business.
We have a factory in Moreo, Ohio that employs 120 people
with a turnover of around $50 million.
Uh, the plan really, uh, you know,
we see our growth coming in the American market,
and that's why, uh, we wanna be here.
Um, and as I say, the idea is to manufacture here, um,
from our factories up in Ohio, um,
and use Chicago as our kind of central hub
to support that activity.
Can you also talk a little bit
about why you picked Chicago?
Um, uh,
for us it's, it's really seen as, as the kind of the center
of the, you know, the design and the furniture community.
Um, for America it's a, it's, you know,
O' Air it is a great location.
And in terms of what we're trying to do around the whole
of the Americas, because we have customers up in Canada
and we have customers down in Mexico,
it just makes a great central location for us to be able
to invest and have one place where everyone can get to.
And the furniture industry, as you know,
from the activities at the Mart,
is used to traveling to Chicago.
You know, it's, it makes sense for us to, to be here.
It's Canada, the center of, of the,
what we believe is the industry, uh, and the future. Yeah.
Some, some of us think it's the center
of the universe, but I digress.
Well, as a side part, I don't want to be sycophantic,
but I do particularly like being here myself,
which is another reason why I've always recommend,
Uh, alderman Mitchell.
Thank you. Jim. Has, has this project been reviewed
with the new Burnett of the, uh, 27th Ward?
Yes. Uh, Katie Dale for the record.
So yes, we met with the previous Burnett, uh,
Derman Burnett, and then I also brought the new Burnett, um,
up to speed on the project as well. Okay. Got the letter
From him. Yep. That's
all I have. Thank you.
Cool. Are there any other questions
or comments from the committee?
Right. Seeing none may have a motion to recommend pass
to this item, but the same roll call that was applied
to established Quorum Alderman Napolitano.
So moves here. No objections to ordered
to do pass recommendation be reported out the next city
Council meeting you.
All right. Um, ladies
and gentlemen, the ECDT committee will be recessed
until Wednesday, November 12th at 10:00 AM in room 2 0 1 a
for the purpose of holding a subject matter hearing on the
proposed 2025 to 2029 Capital Improvement Plan program.
No vote will be taken on that matter.
This meeting is recessed until Wednesday.