Oh, man, they've even got, they've even got Zapata out here.
(background chatter) He gets the special wagon.
(background chatter) Surprised he knows how to get out of
there. (background chatter)
Why
are you in the Zoom? It's killing
me. Oh, because on your computer is the sign-in.
So that, so it just says y- it just says your name on there, and that's
all. Okay. But- Also, you might have been the last one to sign in
under our accounts. Is that what I'm asking? Yeah.
That's all.
(laughs)
I
couldn't tell. It looked like, uh, I was gonna tell you, but I couldn't-
(background chatter)
Did you see? I couldn't s- I couldn't see his face.
(background chatter)
I thought it
said
when I sign in on the computer to find out who's supposed to be behind it.
Is that
who you are? Yeah, actually. Uh, completely.
Oh, I did this like last spring. Oh. (laughs) Oh, okay.
And now I'm going to be doing it.
............................ Perfect for you.
Yeah, like you're supposed to be on with, uh- Right. ...
Rich Clauder and Eli Piper right now.
(laughs)
Really, it's open. You know what
I mean?
It's not
always like that.
So it's about time and memory. And we should probably
consider that. What else is right for us to do?
Um, Mitch Taylor and Rodriguez Sanchez.
Now the, um. So let's face it, I mean, you know, I
think it's good.
Yeah. Well, I
guess so that people don't throw out
any money because that's what's happening.
And one of those things, I'll tell you, actually, there was another
point where they went yesterday,
and that's the thing. So I
think it's going to
be like sort of a three day event.
If somebody has to come together and probably
do that.
Well we're just at home and then you're going to tell me this
not real. So when they're already open to get involved.
Yeah. So there was dancing for $3. Okay.
There's something in there twice. Like why? Because she's got her.
These are
all the girls in here. They should get up there and now take them
home. And so that's how. That's how.
Right. But sometimes I manage to say
no. So yeah. Oh yeah. He starts somewhere outside. Really.
That's good. All right. So it wasn't. Oh yeah.
It sucks for them.
You know like you go home with your hands up here.
Right. But
without talking
about.
Glad
to see everybody make it out here to the 22nd
Ward.
I think you agree that we should do this more often.
Right. Uh, the Committee on Finance is called to
order. I would like to first thank
Principal Bernice Solon Rangel for opening up the
school today, the Academy for Global
Citizenship, uh, to the Committee on Finance in the
city of Chicago.
I'm sorry. This is tech support. We're not able to hear in live stream or
zoom.
Well, isn't that a shame?
Sorry. We are good now. We are good.
Okay. All right. So, uh, the Committee on Finance
is called to order. Um, as I said, I wanted to thank Principal
Bernice Salon Rango for opening up the school
to us and the finance committee today.
I want to thank all the members of the Chicago Police Department
who are here with us as well. Uh, thank you for being here and for members of
the community who came out, uh, to
participate in this afternoon's meeting.
Uh, today we will be holding a public hearing on the issue of a
boundary change for Chicago's Enterprise Zone
number two. The purpose of this hearing is to consider the
proposed expansion of this zone
in accordance with the Illinois Enterprise Act,
which is cited as 20 Illinois
Compiled Statutes 655-1
and the Municipal Code of the Chicago City of Chicago
Chapter 16-12. Uh, these
statutes require the Committee on Finance to hold a public
hearing within the affected enterprise zone to address
what local plans, tax incentives or other programs
should be established in connection with the zone and the
boundaries of the zone.
Notice of this public hearing was published on November 24th,
2025, on the website of the Office of the City Clerk of
the City of Chicago, and notice was published in the
November 26th, 2025 issue of the Chicago
Sun-Times. No votes will be taken during this public
hearing. We'll begin this afternoon with a roll call of the
members of the Committee on Finance Vice Chair
Conway. Alderman Laspada.
Alderman Hopkins. President. Alderman
Hall. Alderman Mitchell. President.
Alderman Harris. Alderman
Beale. Alderman Lee.
Alderman Ramirez. Alderman Quinn. Here.
Alderman Lopez. Alderman
Moore.Alderman
O'Shea. Alderman Mosley.
Alderman Rodriguez.
Here.
Alderman Scott. Alderman Sicho-Lopez.
Present.
Alderman Burnett.
Present.
Alderman Irvin. Alderman Taliaferro.
Alderman Cardona.
Present.
Alderman Waguespack. Alderman Quezada.
Present.
Alderman Villegas.
Present.
Alderman Sposato. Alderman
Vasquez. Alderman Riley.
Alderman Knudson.
Present.
Alderman Martin.
Present.
Alderman Silverstein. Chair Dowell is
here. We have a quorum, we have
18.
We have, uh, some aldermen that have
applied to participate remotely under the provision of Rule
59. Uh, those aldermen are Alderman Taylor, Alderman
Rodriguez-Sanchez, Alderman Curtis, and Alderman
Mitts. Can I have a motion to allow these aldermen to
attend remotely? So moved by Alderman Quezada.
All those in favor, signify by saying aye.
Opposed in the opinion of the chair, the ayes have it.
And we will now confirm. Alderman
Taylor.
Here.
Alderman Rodriguez-Sanchez.
Alderman Curtis.
Present.
(overlapped speech)
And Alderman Mitts.
Present.
All right.
At this time, we will begin the public comment period.
Um, each speaker is limited to three
minutes. Uh, the first speaker we have is Joanne
Williams.
Ms. Williams, there's a mic right
there.
Uh, okay. Hello. Welcome to, uh, the Leclaire Hurst community.
My name is Joanne Williams. I'm, uh, present of the Hurst Community
Organization. I have resided in this community for 59
years. I lived in Leclaire Courts.
We moved in, in 1966. My mother brought her, brought her
home in the Hurst community in 1970.
Uh, the alderman has asked me to give a little bit of my background.
Um, I'm a US Army disabled
veteran. I've been active in the community for the last
50 plus years. Uh, I worked in Leclaire as
their economic development director, and I enjoy
community work. Uh, sometimes the alderman and I, we have a little bit
of a conversation about the community, but we always seem to work it
out.
My comment is, we'd love to have this here in our community.
I think it gives an opportunity for some small businesses
to, uh, start their businesses or enhance their business.
I'd like to see more small businesses in my community.
My question is the impact... What impact would this
have on the homeowners who live in the community?
How can the homeowners and the community in general get
involved, uh, to, uh, to use some of the
opportunities that are being offered?
So that's my biggest question. I know that, uh, that have to
be answered, uh, probably by the
alderman, but I would like to find out how this will impact
our community and how can we use, uh, empowerment
possible funds
to, uh, do something positive in our own neighborhood.
So I think that's it. Mike, did you want me to say anything
else?
(laughs)
Thank you.
Thank you, Ms. Williams. Our next speaker is Roman
Ruiz.
Good afternoon, everyone. My name is Roman Ruiz.
And oh, I'm so used to just being an
emcee, so I apologize for that. So I'm here to speak on,
on, on behalf of the possible expansion of the economic
zone. Um, I will first like to say that as an
individual that's worked in Little Village for over 16 years, I can see
that that community is a thriving community that is an economic hub for the
city. I can only imagine what an expansion would do
in terms of opportunity. So I am very curious to hear more
details. I am here in full support of this initiative.
I hope that what is right now a vacant lot in
K- on Kostner in Little Village
that is full of opportunity could be something that would be beneficial to
our residents. Expanding this would mean more opportunity for
development, more opportunity hopefully for mixed-use properties.
And again, Little Village right now is seen as an economic hub for the
city. I can only imagine what more could be done if this motion
passes. I'm very curious to hear more details. I thank you for your time.
Thank you.
Thank you, Mr. Ruiz. I don't see any, any
others that have signed up for public comment.
So this concludes our public comment period.
Um, we're joined today by Kyle Brandon, who is the Assistant
Commissioner of the Department of Planning and Development.
And Jeff Cohen, who is the Deputy Commissioner of the Department of Planning and B-
and Development, to give a presentation on the
expansion of enterprise zone number
two. It will go before the Committee on Finance for
a vote during the December 4th, 2025 meeting at 10:00
AM at City Hall in the c- council chambers.
Um, so I turn it over to you, Mr.
Brandon.
Thank you, Chairman Dowell.
Good afternoon to the members of the Committee on Finance, and very
importantly to the members of the public.For the record, my name
is Kyle Brandon, Assistant Commissioner for the Department of Planning and
Development.
I'm here today to present information to the public on proposed
legislation to amend Chicago's Enterprise Zone Two
boundaries. The proposed amendment would expand the Enterprise Zone
boundaries to include major development sites that will deliver
catalytic projects to Chicago. Next slide.
(pause)
Well...
Okay. The four proposed areas are centered on Leclaire
Courts, Bronzeville Lakefront, Ford City
Mall, and the 26th and Costner and Little Village Industrial
Corridor. The expansion will directly impact the 4th,
18th, and 22nd Wards. Alders
Robinson, Curtis, and Rodriguez have expressed their
support. Next
slide.
(pause)
The purpose of the Illinois Enterprise Zone Program is to revitalize
neighborhoods in economically depressed areas by offering tax
incentives and regulatory relief.
Accordingly, state and local governments offer a suite of benefits for
commercial and industrial projects located within a
designated Enterprise Zone. The city conveys
exemptions on retailer's occupation tax paid on building materials,
and exemptions on real estate transfer taxes for commercial and industrial
properties. Meanwhile, the state administers a range of additional
incentives, including sales tax exemptions, utility tax
relief, ICC fee exemptions, and construction jobs
credits. Next slide, please.
(pause)
One a couple back.
Can we see the slide?
Just go.
Hm?
See what
Excuse me, sir. Um, would you allow this gentleman to
do the slides, please?
Thank you.
In order to be eligible, an Enterprise Zone must demonstrate that the area has at
least three of the 10 qualifying criteria.
This proposed expansion satisfies the following four,
as it will result in the development of substantial employment
opportunities. It contains a labor market area that demonstrates high
levels of commercial or industrial vacancy, including widespread
vacant or demolished structures or facilities sitting unused due
to age, deterioration, relocation or
closure. It contains significant public infrastructure, in
addition to a plan for infrastructure development and improvement.
And finally, it contains high schools or community colleges located within the
labor market area that offer industry-based credentials that prepare
students for careers. Next slide.
Slide four offers a map of the existing Enterprise Zone Two
boundaries. The proposed expansion areas are noted by
diagonally orange striped patterns.
Next slide. Slide five contains a detailed map of
the expansion in the Leclaire Courts neighborhood.
Next slide. This expansion area covers the site
of the Chicago Housing Authority's 32-acre former Leclaire Courts
development, which is now subject to a redevelopment agreement with Carrera
Capital. Phase One is expected to start in early
2026 and provide 183 housing
units. At completion, the development will provide a total
of 725 residential units and retail
spaces. Next slide.
Slide seven contains a detailed map of the expansion in the Bronzeville Lakefront
location. This expansion
area overlaps with the former Michael Reese Hospital, a vacant
48-acre property and site of the proposed Bronzeville Lakefront
development. The project is expected to deliver 5,000
residential units and eight million square feet of mixed-use space,
including retail and office space.
The project is estimated to result in more than $3 billion of total
investment to the neighborhood.
Oh, one more note. The expansion area also includes the Insight
Hospital and Medical Center, formerly known as Mercy Hospital.
Insight purchased the hospital in 2021, and has star- and has stated that they
plan to make investments and improvements to the campus and surrounding
area. Slide nine contains a
detailed map of the expansion area covering Ford City
Mall. This expansion area covers the site of the
Ford City Mall, and for 20 years, the property has struggled to retain tenants
and is now more than 50% vacant. The site is subject of a proposed
redevelopment that would result in more than 900,000 square feet of
industrial space. Slide 11
contains a detailed map of the expansion area in Little Village's industrial
area. The area is bordered by the BNSF train tracks to the
north, Costner Avenue to the east, 35th Street to the
south, and the Belt Railway train tracks to the
west. This area contains a blend
of occupied residential properties, vacant industrial properties, and
adaptive reuses for civic facilities like Zapata
Academy. The area notably includes the former
StorCline Factory at 26th and Costner, which was destroyed by a fire in
2016. The property has been the subject of several redevelopment
proposals, including a retail concept in 2020, 12, and
affordable housing in
2016.Staff
recommend that city council support the proposed legislation to expand the
enterprise zone two boundaries, as doing so has the potential to
reduce barriers for major developments that will deliver job creation and
training opportunities for residents.
Just as notably, these major catalytic development
sites will serve as anchors for broader corridor revitalization and
economic stability. Thank you, and I'm happy to take any
questions.
Uh, thank you, Kyle. Uh, before we take questions, I would, uh,
turn it over to Alderman
Rodriguez-
That's, uh-
... followed by Alderman Curtis, if you want to say something
about this before we open it up to colleagues.
Thank you, Madam.
Yes, thank you.
Uh, thank you, Madam Chair. Can you hear me well?
Yes.
Very good. Um, so thank you so much for convening this meeting.
And first and foremost, to my colleagues, I appreciate you coming
out to the 22nd Ward. Uh, you are more than welcome
to come back at any time, especially if you're gonna spend your money at our
businesses here on the southwest side.
Uh, looking forward to treating y'all to some, some, some lunch soon.
Um, but the fact is-
You're, you're treating? (laughs)
My treat, of course. If you're, if you fly, I
buy. All right. This
space you're in now is an absolutely
beautiful gem of our community, the Academy for Global Citizenship.
I call it phase one of the redevelopment of, uh, this
area. Um, very gracious to the state
for, um,
putting in capital dollars to the city for significant work here.
Uh, our principals, uh, and our school here are
an amazing school of learning. The Academy for Global Citizenship, um,
has young people from throughout the southwest side of Chicago, and it's just an
amazing space, um, that I'm very proud of.
It's, uh, 100% more than LEED certified
building. Um, it's, I think, operates off of
100%, uh, renewable energies, and it's a great space.
So come in, check this space out. It's a beautiful, uh, campus, if you
will. But what you see to the east, uh,
to the east of us
is, um, a future rebuilt
community. Um,
I'm glad Joanne was here. She's so representative of the neighborhood.
Uh, Joanne says jump and I say, "How high?" Um, she is
the leader of our Hearst Community Organization and has done amazing work here, and
I wanna thank her for welcoming us into this community, which is a beautiful
community. Um, but to the east of us, you
see what is gonna be a beautiful new neighborhood, where along
Cicero Avenue we'll have two, uh, units of
housing, a grocery store just behind that,
and a number of other developments here that are gonna make the southwest
side of Chicago, uh, very proud for this, uh,
developments. Um, this enterprise zone, I'm very
excited. It includes two parts of the 22nd Ward.
Um, one, the 26th Street corridor anchor, uh,
west anchor to the neighborhood, um, that we look forward
to developing in the near future. Um, we're in the midst of a
corridor revitalization effort on 26th Street, and this will be the anchor to that,
and I'm so very excited. But here, uh, the Cabrera redevelopment will
be, uh, potentially the first to, to leverage the assets of this
enterprise zone. The ability to, um, create the
affordable housing, the new grocery store here.
We have, uh, significant investments in early childhood
education, a state grant of $10 million to the Ch- Chicago
Commons that'll, that'll, that'll support that development there.
And a number of small business developments, including restaurants, a
bank, uh, and other potential downhill kind of investments that
I think will meet the needs of all the community.
So, it's rare that you get to think about a former
CHA, uh, space. You know, we know that public housing
throughout the country was disinvested in as far as the '80s and
'90s, um, but we're really rethinking the way in whi- in which
we engage public housing and, and, and diverse housing and the
diverse housing needs of our city.
And what you see to the east of us is gonna be ground zero for all that
redevelopment. And how we put affordable housing in
a space that's complemented by, um,
the comprehensive needs of a community, a beautiful new school, a grocery
store, complementary, uh, economic development
efforts. And all this is done with community
investment, with the kind of government investment that
comes from this type of enterprise zone.
So I'm very excited about this. I'm very excited to have my colleagues here.
Thank you very much for being here.
Um, our two principals are here with us today.
Our park district supervisor, Cooper's here with us.
Uh, Hearst Community is well represented.
Our, our folks from Little Village are also represented through Roman.
Uh, so I wanna thank them all for coming out today, and thank, again, all my
colleagues for making quorum here today.
And we're actually well over quorum, Em- Emily, good job.
Thank you, Madam Chair.
Uh, thank you, uh, Alderman Rodriguez.
Alderman Curtis,
want to Alderman Irvin,
and we'll add them to quorum.
I'm sorry, Alderman Curtis, you're ...
No, uh,
thank you. Thank you, Madam Chairman.
And, um, I wanna apologize to my colleagues, I'm actually
sitting right outside in the parking lot.
I wanted to be here, uh, to make sure we had quorum for
this, this great and exciting, uh,
project that, uh, the City of Chicago is getting ready
to, uh, take on. Uh, my
family, uh, my children, they all grew up right here in
Leclaire Courts, um, oh my God, uh,
almost their whole lives until, uh, they tore down,
uh, the housing projects, which was a beautiful,
beautiful community in itself. Uh, I am
so fortunate-... to be right down the street,
uh, uh, at, at starting at 71st
to 87th and Cicero,
uh, where our Ford City Mall, uh, stands.
Uh, in 2015, my ultimate goal was, was
to, to revitalize and, and, and make
sure that the only indoor shopping
mall, uh, would stay open, uh,
in the City of Chicago. Uh, and, uh, unfortunately
(laughs) , uh, we, we, we tried our best, but we could not do
that. Uh, actually, right now it's
less than 50% occupied.
Uh, from 2012 to 2019,
uh, the bank owned it and they operated it, uh,
uh, very well, until they
sold it to a New York investor, uh,
Namdar from New York. Um,
unfortunately, uh, all of our stores are leaving,
uh, JCPenney is the only store that's left.
Uh, uh, right now,
we have a opportunity, uh, with the Enterprise
Zone
for investors from Chicago base to
invest $250 million
into Ford City, and I'm so
excited. Uh, and, and, and, and bringing over
500 jobs, uh, for industrial site.
So I'm very excited about this, uh, I'm glad.
Thank you, uh, Chairman Rodriguez and Chairman Dow for
bringing this forward, and, uh, I'm praying that my
colleagues all support this effort. Thank you.
Thank you, Alderman Curtis. We'll begin questioning with Vice-Chair
Conway.
Okay, he's stepped out, so we will start with Alderman
Quezada.
Thank you, Chairman. Uh, thank you, Madam Chair.
Um, uh, my question, uh, is for, uh,
for Kyle. Um, this is mainly around, uh, the housing.
Uh, so for the Leclaire Courts area, um, I see that, uh,
phase one will provide the 183 units.
Uh, how many phases are there and what is the timeline for the completion of the
full project?
I don't know the number of phases. I believe it's two, but I can
connect with Cabrera Capital. I don't know if they are here
or... I don't see anyone from the development team, but,
uh, yes, I can get back to you through the chair with the number of phases-
Yep.
... and your se- and your second question?
Well, beyond the phases, what's the timeline, the estimated timeline for the
project?
I know that phase one is imminent, which is part of the impetus
for this expansion. Um,
again, without knowing the number of phases, it's tough to say the timeline.
But, um, we're focused on phase one and, and providing
this expansion so that they can get shovels in the ground.
Got it. Um-
Alderman Que- Alderman Quezada, I believe Alderman Rodriguez can answer your
question.
Oh, sure. Yeah, thank you.
Well, essentially, um, phase zero was this school.
So phase one, uh, in my eyes, um, are the construction
of the two units, um,
and also with, um, they're gonna get started with foundations
on the subsequent businesses as well.
But phase one has already commenced.
We have a $8 million water project that's wrapping
up, um, and once that gets done, I expect them to get in the
ground. Uh, the subsequent housing units, however, will
require expanded funding. Um, you know, Cabrera will be looking at
various funding sources. Um, so we, we do have
a complete deck, to the best of my knowledge, on, on phase one, however.
So those 183 units will be s- will be starting in 2026, and we're
hoping to have people in, in homes sometime in, you know, '27, '20 s-
late '27, early '28 is my hope.
Great. And then, um, do we know how many eligible former
residents would be allowed to return? Do we...
Has there been outreach already to figure out how many folks would be able to
return to their homes?
Not from DPD's side. I would rely heavily on the development team,
uh, to respond with those questions, and we can definitely connect with them and
get back to you if that's, that's appropriate.
Yeah, that'd be helpful. Just out of curiosity, just wanna know, you know, these
are impacted residents, we wanna...
I think it, it's also good for us to measure, you know, the, the impact of, uh, of
the loss of public housing and what it will mean for us to move
diligently to move people back into the homes that they were displaced out of.
Certainly.
Um, for the Bronzeville area, um, the 5,000
residential units, will that be 20% ARO on site, or more or
less none on site?
Actually, more than the ARO. I have that figure right
here. Uh, it will be 20% up to 1,000 units
that are gonna be set aside for affordable housing.
That's great. And then, do we have an estimated timeline for that
project?
N- no. I, I do not. I... This is a project that DPD has worked
on for several years now. Um, it's, it's tough to
say given the, you know, competing interests for that
site. Uh, I know that they are eager to move forward with
phasing, but there hasn't been any communication or certainty
around what that timeline looks like.
Okay, thank you very much, Kyle.
Yeah.
That concludes my questions.
Uh, thank you, Alderman Quezada. Alder by- Vice-Chairman
Conway.
Mic check.
So... Hey, oh, hey. Um, I guess
to, to back up and ask a, uh, a simpler question,
where does the money come from?
It's an exa- it's an exception. So, so, the money, the money
doesn't come from the city. It's, uh, it's something that we
otherwise would not collect. As we issue buildings material
exemption certificates, uh......
you know, uh, a vendor will go to the hardware store and
show the certificate, and they don't have to pay sales tax on that.
The city's portion is at one and a quarter percent of the broader
10.25, so we're giving up very little to get a
lot in return.
Okay, so it comes from reduced sales tax payments, is-
Sure.
... is the vendor goes?
Yes.
Is, is sales tax the only thing affected, or does it come from...
I want to make sure we didn't come out to these nice people's community and make
sure we're not raising their property taxes or somehow lowering property
tax revenue.
We are, we are certainly not doing that, no.
Okay, so sales tax exemption is the on- is, is how this, uh, this pays for
itself?
There's a sales tax exemption, and there's also a real estate transfer
tax exemption that's issued by and managed by the Department of
Finance. Uh, but from the city's perspective, those are really the
only two, uh, revenue sources that would otherwise be
impacted.
How much, uh,
real estate transfer tax revenue are we due to lose?
That is really tough to calculate without knowing the full value of all the
developments that have yet to occur.
Okay, so there'd be a counterfactual 'cause it obviously is going to be some amount
of s- city revenue that's lost here, and I think it's important that we have some
idea what, uh, how much that is. Now, maybe you would say, "Well, it's made up
based on the increased economic development," but I
don't... I hope that the marginal cost and marginal benefit
analysis is being done by somebody.
Y- yeah, but again, it's, it's really difficult to, we don't have, uh, we
don't have a project to estimate the economic impact on quite yet to understand
what that real estate transfer tax may look like.
I mean, it would, it would be very, very, very hypothetical.
But again, if we focus on the, the, the building materials exemption
certificate, the sales tax that we would otherwise be collecting,
that's what we're here today for. That's, that's what these
developers need in the very near term.
So, is the real estate transfer tax not part of this?
It, again, it, it is part of it, but they're-
Okay. ... they're not really transferring real estate quite yet, um, if there's
no development.
So, the presumption is that
prop- like, property wouldn't change hands if we didn't approve this?
Is that, is that kind of what we're presuming?
No, property would change hands. It's just that we, they don't get the benefit
of the, uh, the e- exemption, the incentive.
And, and we don't, and the city doesn't get the benefit of that revenue.
I'm just, I mean, here we are, sitting here trying to balance a budget with a
billion-dollar deficit. We're obviously giving up some kind of tax revenue here,
and I think it's important that we have some idea what that is, as we, as we
look at this. I mean, it seems like a wonderful project, but as we compare marginal
cost to marginal benefit, we should have some idea what the marginal cost
is.
You... It'd be, seems to me it'd be hard to calculate-
Yeah, it's, it's-
... because there's no development.
Right, there's no development. It's really, really hard to calculate something that
doesn't exist yet. Um, I, if I told you a number, I'd
be lying to you, you know?
Well, how would you recommend that we un- on behalf of the taxpayers of the City of
Chicago make, make the decision whether this is a good
idea or not?
Uh, hi, Jeff Cohen, Deputy Commissioner, Department of Planning and Development.
Uh, to kind of answer your question, um, um, I believe that the real
estate transfer tax will be, although a point of
revenue, it is going to be in a negligible amount that would affect
overall revenue, um, in conjunction with the redevelopment
of these areas. I think the idea and the way that we should be looking at these
types of projects is not necessarily what we'd be losing from a transfer
tax standpoint, but it is an incentive to help induce getting additional
development in these areas to get jobs going, as well as, uh,
the additional housing as well. So, I think there's going to be both a quantitative
and a qualitative, uh, benefit or negative approach
here. Uh, but I do think that in order to create the type of
development that we're asking for is that these, uh, particular
revenue sources are not gonna be as detrimental, uh, to the overall
city revenue sources.
Well, I, I do think it's important as we determine how best to move
forward in city government that we look at not only what the community
benefit will be, but also what the cost will be to the city in this, in this
situation. And I mean, based on some of the things you said, it sounds like the
marginal benefit will far exceed the marginal cost.
But I do think it's important that we do that analysis when we're making this
decision, or frankly, any other decision on behalf of, uh, on behalf of
the City of Chicago.
Are you, are you able to provide the committee with information
about, uh, how, um, what
benefits, what the beneficial value has been
since this, like, in the last two or three years in
terms of real estate transaction and sales tax?
Mm-hmm.
Do you have that information?
Department, Department of Finance would have that information, as they're the ones
that administer that exemption, and we can definitely connect with them to
see
what the, what the pattern has been for other enterprise zones and other
real estate exemptions so we can get a sense of some comparables.
Yeah, I think, I think that'd be helpful if it's possible to get something like
that before, before Thursday.
Not, not just other enterprise zones, but also this particular zone,
which has existed, I mean, which
exist already. I mean, we're looking at expanding the zone, so
there must be information about what has occurred within the zone over the
last two, three years.
We'll, we'll be able to get that through here.
Right, and I, and I absolutely understand the
added leverage of the facts. On the sales tax side, we're only giving
up 1% while we're giving a 10% benefit.
I, I recognize how that, um, is a, is a significant
benefit we're giving, and the cost to the city is only one-tenth of the,
of the benefit. I, I get that piece of it.
Just want to make sure we're ge- making a good decision on behalf of the taxpayers.
That's all I have, Madam Chairwoman.
Thank you.
And thank you, gentlemen.
Okay, thank you, Vice Chair. Um, Alderman Irvin, followed by Alderman
Vasquez, and want to acknowledge Alderman Moseley, who will be counted towards
quorum...
Oh, thank you. I didn't have a on-off switch.
Um, I, I think part of, uh, what Alderman, uh, Conway
brought up, just trying to understand what the zone has done thus
far, um, as well as, um, has anyone taken
into account any environmental impact, uh,
bringing this forward? I know some of this area has had some,
um, some challenging, uh, from an environmental standpoint or what is
planned on top of, we know what's happening at Leclaire, we know what's
happening potentially down in Ford City, but the, uh, Little Village Industrial
Corridor, uh, what, what do we have planned there? That's number one.
It sounds like you guys don't know the financial projections of it, uh, fully at
this particular point in time. Uh, have you all made any estimates as
to what the uptick in economic activity will look like
going forward for the developments that you guys have, uh,
that you're delineating today?
We have estimates from the developers as they
provide, you know, their proposals.
For example, again, uh, hold on a second.
Uh, Insight- Insight investing $50 million, uh, in
the Bronzeville lakefront area. Uh, the,
uh, one
second.
It's- it's the- the Little Village industrial area, I should note, does not have...
The Little Village industrial area and the Ford City Mall, those are
less, uh, progressed than, say, Lakefront, uh,
and also the, um, the Leclaire
Courts housing development. Uh, but again, these are, these are estimates that
we're relying on developers for. Um, we can certainly provide them through the
chair. Um, and to answer your first question around
environmental remediation-
Well, I think that question... Because you don't know what's going on at, in the
Little Village industrial area, you can't answer that question.
Um, have you all just made some as- educated guesses in your
professional capacity as to number of jobs, uh, potential tax
revenue, uh, that would come with this, uh, with this expansion
of the, uh, enterprise zone, and, um, a more or less
cost-benefit? And it sounds like part of it you don't know, but I- I would
assume that you do have some idea as to what this should or
potentially would generate o- over the life of the rest of the EZ?
Sure. So in the Bronzeville lakefront development area, we're looking at upwards of
20,000 temporary construction jobs, uh, and full-time permanent
jobs. In the Ford City mall, they're looking at 90 con- 90
construction jobs and over 150 full-time permanent jobs.
And the Leclaire Courts development, uh, there's going to be an on-site community
center that offers job training and programming.
Okay. And so again, the only thing we're giving up is- is a- a piece of our
sales tax dollars and a potential on a real estate transfer,
uh, should that occur, even if it's a non-exempt transfer?
That's correct, Alderman.
Okay. All right, very well. Thank you, Madam Chair.
Thank you.
Uh,
Alderman Vasquez followed by Alderman Moore.
Okay. Is this on? Yes. Okay, thank you very much, uh, Madam Chair, and everybody
here. Um, I appreciate the conversation.
I think when you look at parts of the city that need the investment and
development, clearly we understand why there's a lot of promise here and
opportunity. So I think hearing that what leads to that
is rather than us putting money in, not collecting a certain
amount, I think is actually good strategy.
Because Lord knows we need the money we have to cover our own holes.
So, um, that part I appreciate. But I think something that I've
just learned through my own experience here in my limited time in- in city
government is
hope isn't a strategy
and promises aren't always kept. So
my concern is more about execution.
Like, how are we holding accountable or making sure we have regular
check-ins? What are markers to make sure that the development is happening as it
should if we're creating that kind of opportunity?
I think it's fair to figure out what deliverables look like, what
reporting looks like. How do we know that it's on pace to do what it needs to do?
Because, um, I- I think I have less
concern about the sales tax exemption, uh, the real estate
transaction tax. If we don't got anything that's doing well, we're not going to see
any of it anyway. So I think being able to build something makes sense.
But then there's always the piece about delivering on what that promise is.
And so how do you hold that accountable?
Uh, Jeff Cohen, uh, Deputy Commissioner.
Um, I think with the majority of these projects, which have, all have
some sort of city approval, uh, whether that's a planned development or
potential incentives from a monetary standpoint, that a
lot of those projects are gonna be subject to the- the standard city
compliance, um, metrics. So from that perspective, they will be
monitored and tracked. I think what you're asking from a
longer term vision of multi phases and whether these groups can
be able to perform, um, past what we've, uh, already are
looking at that these, um, that the expansion is looking to help,
um, I think that's a little bit more difficult.
Um, but I think that if the city is positioning itself
to assist these projects, that it becomes more
likely that they will be able to succeed in the future and would
be likely to start multiple phases down the road.
Um, I know that we can track and we do track, um, everything that has
been approved to date. So some of this stuff might also be subject to further
city council approval and there could be additional, uh, metrics that we
incorporate into those projects as well.
Yeah, I think too, chair, kind of sharing what those metrics and how you're
assessing that would be super helpful.
I think my other question is, in a world where a curveball happens,
developer's not executing, they decide they want to do something completely
different. I know there's a planned development there, but is there like a clawback
of the exemption or anything where they end up having to have a penalty for not
executing?
Um, at this time, I don't believe there is something like that.
Okay. So those, those are things that for me, and I think this is a lot of how I'm
viewing government at this point, is like everyone's got a lot of great stuff
they're selling. If they're not showing me how it's getting executed on and there's
not things in place to make sure it's delivering, I'm gonna be dubious of it.
There are a number of great ideas we've had in government that we're waiting still
for delivery on that I think that's central to my questions.
I think separately, this is more related to transportation.
Uh, we know that there's always opportunities for larger developments to increase
the access to transportation, whether we're talking,
uh, public transit to just multimodal trans-
transportation. And so I was curious as to whether there's any conversations about
how transit transportation can be improved when you're doing something this
big.
Uh, I'm not privy to any conversations with that.
But I would imagine that a lot of those developments who have a lot
of engagement with CDOT, uh, transportation is obviously something that
is paramount to a lot of these larger, uh, developments.
So I would have to imagine that those conversations have been had.
Um, I don't have anything specific, but we can look into those
specific conversations for any of these sites about the transportation
aspect.
I would absolutely appreciate that 'cause I don't think that should be left to the
imagination. I think, um, uh, in my experience, even with
smaller developments, if CDOT's not brought to the table early enough, they then
end, end up causing changes after that cost way more money to all of us because
they've got to fix things that they never discuss on the front end.
And so I think having that kind of forethought is important and
understanding what CDOT sees when they look at the potential
here and what they might propose or not is super helpful.
Like we see sometimes they put in a bike lane and then realize it's messing things
up and you got to make adjustments.
(clears throat) I think some people know about that. But that's a reality.
We are on the ground and then have to deal with repercussions that aren't even
thought through. So I think having those conversations with these other departments
that are gonna be, have a part to play is also important and something we should be
informed on. So, uh, again, I,
I really appreciate the idea and investment in a part of town that needs it.
I am all for getting that developed.
But it's also how we do it, so we're not just selling people dreams.
We're also executing on them. So thank you very much and thank you, Madam Chair.
Uh, thank you, Alderman Vasquez. And Jeff, um, we
have clawback. I mean, when you bring TIF
projects before the Finance Committee, there are
clawback stipulations written in that, and I
think that needs to make sure he understands that as
well.
Yeah. Uh, for any dollars that are spent by the city, uh, such as TIF,
uh, the Housing Economic Development Bond, we do protect ourselves that if a
developer does not perform per the standards of the redevelopment agreement,
we have the ability to recuperate funds as well as, um,
enforce other actions.
Sorry. Through the chair, if you could show examples of where you've actually done
that, I'd appreciate it. Thank you.
Thank you. Alderman Moore, followed by Alderman
Curtis.
Thank... Oh man, this voice. Thank you, Chairman.
Uh, I know we're focusing on the enterprise zone this morning, but they...
You still didn't answer my question about... But I want to be clear.
So the project specifically for LeClaire, I know we got things
going on in the 18th Ward as well. But for LeClaire, that project
had been approved already, correct?
Yes.
Okay. And, and I know at one point, w- with the land we
were on, there was a l- because it was public housing, it was
exempt. This is gonna be for, for sale stuff that's gonna have to pay
taxes, correct?
Correct. These will be brought back to the tax rolls.
It'll be... That's my point. They're gonna be back to the tax roll, and we're gonna
get revenue from that. And I just wanted to make sure as we're talking about the
other things that we made that clear that we're putting, you know, getting
things back on the tax roll.
Yeah. I appreciate that point as well.
I think it might also, uh, help, uh, uh, answer,
uh, Vice Chair Conway's question earlier is that we will be bringing these to the
tax rolls. So there will be additional revenue created from real estate taxes that
could potentially create a net benefit, um, above just the, the
exemptions.
And what's the timeframe, or is it just by vote of the council
that it takes to implement a imp- enterprise zone?
I think it, it's getting the vote.
It's getting the vote. And once it's done, then, uh, the enterprise zone is in
place.
We then need to ap- We need to apply to the state.
And the state then affirms the enterprise zone
expansion. But we have a very close relationship with the state, and they take
our applications and process them very quickly.
So month, two months,
three?
I want to say two months.
Okay.
Yeah.
All right.
Yeah.
And, and, and in order to do an enterprise zone, do you have to be working on a
project normally, or do, do they expand it to
attract, um, developers to bu- build?
Do we do that as well? Is it... It has to always be a project in place
already, or can we do, can we do it to attract
businesses?
There has to be a project in place. Um, so businesses that
are applying for an enterprise zone exemption, whether it's the real estate
transfer tax or the sales tax, uh, there are three
qualifications. One is that a business is investing at least $5
million in a qualified property and makes minimum of
200 jobs. Uh, a business can be investing at least $40
million in a zone and retaining at least 2,000
jobs. And third, a business can be investing $40 million in
a zone and retaining 90% of the jobs
in the local labor market area.
All right, that's good. Thank you so much.
Mm-hmm.
Thank you. Point of information,
Alderman Mitchell.
Can you guys... Okay. Um, I, I, I want
the response to Alderman Moore's question
clarified. I thought he was asking
does...
Does a, does a enterpri- can an enterprise zone exist
without any, any prospects of development
prior to a development?
Yes.
Okay. Okay.
I mean, an enterpri- we have, the city has six enterprise zones.
Already just-
Already right now. And there are parcels, as we all know, that are
undeveloped.
Okay. I just wanted that clarified. Thank you.
Sure. Yeah, sorry.
Uh, thank you. Alderman Curtis.
Uh, thank you, Chair. Uh, man, it s- it sounds like, uh, some of
my colleagues need to be sitting next to me 'cause sound like they have a, a
really bad cold also. But I, I wanted to
mention, um, with the redevelopment of
Forest City, and I don't know what the entire,
uh, enterprise zone would look like, but I do know
w- with my meetings that we've been having, uh,
with the Forest City, uh, redevelopment, uh, just
that project alone after it's redeveloped will
bring, uh, it'll put, uh, on our, on Chicago's
tax roll, uh, about $2 million per
year. Uh, I just wanted to mention that
also.
Thank you, Alderman Curtis. Um,
Kyle or, or Jeff, one of the criteria
you mentioned was, uh, high schools or community
colleges that have ACT
WorkKeys, I think, and manufacturing skills
certification. Can you tell me what schools are in
this particular enterprise zone?
Sure. So I can, I can give you a list of high schools that are
in this enterprise zone, uh, that are public CPS schools.
Uh, we have Air Force High, Back of the Yards High School, um-
No, these are the ones that have-
... the programs.
... the programs-
Oh, sure, sure. So-
... that are tied to this enterprise zone.
Yes. We have, uh, a list of, a short list of that.
We have Dunbar, uh, and they have programs that
are through CPS's Career and Technical Education program, which
is an industry-based credentialing program.
Uh, they offer programming in architecture drafting, automotive
tech, cosmetology, culinary arts, TV broadcasting, and medical
assistance. At Richards Career Academy, they offer programs in
culinary arts and business accounting.
At Tilden, they offer a CTE, again, that's Career and Technical
Education, summer internship program where seniors
enrolled in a CTE course for at least two years are matched to a
position with an employer and paid $15 an hour,
120 hours, and six-week internships.
And finally, Back of the Yards Prep offers pr- uh, programming
in broadcast technology and digital media.
I know of three of the four schools.
Where's Richard?
Richards Career Academy?
Yeah.
Is it in any of-
It's in 20.
5009 South Laughlin Street.
(crosstalk)
We pulled, it's very likely sometimes when we pull these
lists from GIS, the coding does not accurately
reflect, uh, the actual mapping, but at
least three of those four are definitely within this enterprise zone and offer
programs that match the eligibility criteria.
All right. Any other questions from members of the
committee?
Seeing no more questions...
Alderwoman, my hand is up.
Uh, yes. That's not good alderwoman.
I'm sorry, Alderman Taylor.
It's okay. Um, Richards is in 20. It's one of
my schools. Um, my question was about
Leclaire Court. Is it all CHA housing?
'Cause that is CHA land, correct?
Can you clarify the... S- sorry. Can you clarify the question maybe?
She's asking if all of the development that's to occur on
Leclaire Court's property, which is CHA
land, is it going to be CHA
units? Alderman, can you answer
that?
Um,
check one. All right. Um, Jeanette,
I think I'm coming out to your ward with Rod pretty soon to talk through, uh,
Leclaire and some of your efforts there locally.
Um, but this will be, the first phase is
90% affordable, so it'll be a 10%,
um, market rate component, but over
50% of the first phase will remain public, and
then subsequent phases will maintain, uh, a
mix of, uh, of development. But we'll talk more in
person, uh, Alderwoman,
And when you say public, you mean CHA?
Yes, ma'am.
Um,
is it houses or apartments?
Phase one-
'Cause those used to be like a mix of both.
Phase one is all apartment units. Uh, the subsequent
units are, the subsequent phases, um,
uh, we're still working on those.
That's all I got. Thanks, Chairwoman. Thanks. Thanks, Mike.
Thank you, Alderman Taylor.
You got it.
Uh, there being no further business before the committee, can I get
a motion to adjourn? So moved by Alderman Quinn to adjourn.
All those in favor signify by saying, "Aye." Aye. Oppose?
In the opinion of the chair, the ayes have it, and the Committee on Finance meeting
is
adjourned.