Cool.
What do you mean this is real? Yeah.
Apparently. Apparently she's, uh, she,
I'm like, this is really real.
Good morning, Daniel. I'd like the fresh cut. Looks good.
Morning everybody. Morning
Carl.
Know that. What's up?
RC Your name came up on
one of my comments,
actually.
Just more.
What
were you there?
Did you show?
Okay.
Elders.
Good morning everyone, and Happy New Year.
The meeting of the Committee of On Economic Capital
Technology Developments call to order.
We'll now have a roll call To establish quorum.
Please use the iPads
provided to, to you and mark yourself present.
Note that your present respons will be deemed a yes vote
when this quorum call used as a reference.
Vote for later. Mr. Benegas, please open the vote.
The voting is open. The all voted. Who wish
They All voted. Who wish?
No problem. We'll call you
Res. We've gotten ch video. Really
impressive.
No, you don't have glaucoma.
Just get my, yeah,
You can just do the Sergeant arms should
maybe get us better equipment.
Oh, I guess it's
Okay, right. Um,
I'll do Alderman Mitchell. Alderman Mitchell.
We'll go to Alderwoman Cruz.
Alderman Riley Present Alderwoman Mana Haworth. Alderman.
We have a quorum at this time. Thank
You. Ladies and gentlemen, we
have a quorum, aldermans Hall,
Napolitano, Mosley, Chico,
and Tabes have requested
to participate in today's meeting remotely under Rule 59.
May I get a motion to allow 'em to participate remotely?
Alderman Riley Motions to allow Alderman Hall Napolitano
Chico to participate remotely.
All those in favor, please say aye. Aye. Any opposed?
Say nay. And the opinion chair. The ayes have it.
Y'all, the persons mentioned are
permitted to participate remotely.
They'll be marked as present on the quorum call.
Um, Christian, can you verify that the alders
that have been allowed to participate remotely are online?
Alderwoman Tabba, are you on the call?
Alderman Barr is here. Alderman? Uh, Moseley.
Alderman Moseley's Present. Alderman Napolitano.
Alderman Napolitano is present. Alderman Chico.
Alderman Chico is present. Alderman Hall President.
Alright. Thank you, uh, for today's meeting.
We did receive, uh, one written comment,
which is available in the share drive.
At this time, we'll begin the public comment period.
Public comments are limited
to 30 minutes outta respect for everyone's time.
Each speaker is limited to three minutes.
We have two speakers that have signed up, um,
for the public comment within the applicable provisions
of Sergeant at Arms protocol.
We have, uh, Mr. Dennis White, followed
by Mr. George Blakemore.
Good morning. Morning. Um, this, uh,
economic development I don't fully understand,
but I'm gonna do what the best I can.
Can you,
can you hear me?
Yes. Much better. Okay. Sorry. Um, I don't know.
I don't know too much about it,
but the thing about it is this, uh, economic into the budget
and then we got a tax deficit
because CPS is approving this unnecessary tax,
and I'm gonna try and make relevant as possible.
Um, there is a spending crisis,
but there's not, uh, there's no solution to cut the spending
as far as everything else go.
My opinion is this.
When the mayor put a budget proposal,
and then next thing you know, he did, he wanted
to do a corporate head tax.
Nobody wasn't approving of it.
Now everybody been walking down State Street.
It used to been flourished.
It used to been, it used to been a business there.
It's looked like a ghost town.
Michigan Avenue now is turning into a ghost town
because business is leaving.
Why is that? Is it because of the taxes?
Yes, but also this soft on crime policy that pushing the,
but the business out these, uh, areas, especially downtown.
So who had to pay for it?
The taxpayer Because of that management of the, of the mayor
and the county pre precedent as well, and the governor.
We need to be more smart about it.
Now, the, not only the committee,
but the city council, you all have the responsibility
to propose a better budget instead
of you got one tax versus another tax.
It doesn't matter. We still gotta pay the taxes around here.
We don't have no money here in Chicago.
Chicago is almost bankrupt. It's gonna be Detroit.
If not, it's already another Detroit around here.
So we got either do better with the spending,
but we gotta spend money wisely to make sure
that we have everything we need to flourish.
Because I don't wanna leave Chicago
because of this right offhand.
But if I have to leave
because of all these unnecessary taxes,
and then you got the crime and you got everything else,
and nobody is doing nothing
but tax, tax, tax, you know, we,
we gotta do better people 2026.
It's going to be a very bad day if more taxes happen
because of CTU and CPS with Brandon Johnson.
Thank you Mr. White. Our next speaker is Mr. Blakemore.
Mr. Blakemore, use your eyes.
Use your eyes. I don't see many black men here.
I see a lot of white men and white women.
I don't see many black men here.
I wonder why. I wonder why
I see white men and white women,
but I don't see many black men here.
Anyway, Mr. Blake Moore, where are you?
I mean, economic technology and development.
What these ssas is nothing
but a a rip off these ssas
and some of these reappointment.
The first thing I would ask those that have been appointed
before, or what did you do?
And why do you want to be reappointed?
The whole system is broken with, uh, with these
ssas we have our police department.
Can they make our city safe?
The police department, we have streets and sanitation.
Can they make our city clean?
Why do you need a extra?
You can do your ears up all you want.
Why do you need a extra a, a, a scheme
to get more tax money from the people?
So I intend to be loud.
I'm using my eyes to feel lily white men.
Lily white men, and a few. Well, where are the black men?
Where are they? Is something, are you playing the race card?
Yes, I am. So how many black men are here?
How many black men are sitting up here on this committee?
One. One.
And, and, and I wonder if this one is,
is really advocating for black people.
We have black faces in high places selling black people out.
Oh, yes, we do. Don't worry about that.
My voice is loud enough. I don't need the speaker.
My presence speak for justice and equality
and anti-racism.
So some of 'em said, oh, he's loud.
Can't you see what I see?
You don't have a problem with, with, with,
with no black males here.
But look, something is wrong
with us if we don't have a problem with that race center.
The first one that they hung on a poplar tree
was the black man.
That's right. Find race card. Mr. Play for Play.
Play. I did,
I played the race call.
Thank you Mr. Blakemore. That concludes a public comment
portion of the meeting.
The first order of business is approval
of the December, 2025 monthly report, which all members
of the committee should have received via the shared drive.
Are there any questions or comments from the committee
members regarding the report?
All right, um, alderman Riley makes a motion
to recommend approval of December, 2025 monthly report
by the same roll call vote as was applied
to determine quorum.
Um, hearing no objections so ordered.
Please let the record reflect that Alderwoman admits as well
as Alderman August back, are here for quorum.
Um, after a meeting took place with the department, um,
planning and development and Alderwoman Ramirez has been
determined that item 13 on the agenda will be deferred.
May have a motion to defer the tax incentive ordinance
for the property at 2 2 3 4 West 43rd Street.
Alderman, uh, la spot. A motion to defer item 13 here.
No objection. The motion passes and the matters deferred.
At this time, I would like the to invite the nominee
for the Community Development Commission to come up front
and please take a seat.
Item one on the agenda is the appointment of Sergio Kandela
as a member of the Community Development Commission.
Mr. Con, Mr. Canola, you may proceed
to speak on your nomination for the position.
Thank you, Mr. Chairman, vice chairman
and fellow committee members.
I am interested in joining the Community Development
Commission to help foster equitable sustainable growth
through strategic projects
and programs that contribute to our communities
and therefore our city.
I am proud, I'm a proud resident
of the 40th ward on the city's northwest side
where I've lived for the past 15 years.
I am currently working at Accenture, where I'm a director
of program and project controls.
And my background and capital program delivery gives me a
unique perspective to understand the nuances involved in
working within and with the community.
I look forward to contributing to the strategic growth
of our city through community development projects
that enhance and strengthen our communities.
If confirmed, I will serve with integrity
and transparency to fulfill
the requirements of the commission.
Thank you for your time this morning.
I'm happy to answer any questions you
may have at this time. Thank
You. Mr. Karia.
Uh, at this time are there any members of the,
the committee, um, that would like to ask any questions
of the, uh, CDC nominee?
Alright. Seeing, oh, I'm sorry. Um, AWA man, hopper worth.
Hi. I wanted to thank you for your call
and I'm sorry we weren't able to connect,
but I, I appreciate that you want to step into this role.
And, um, is there anything in particular
that you're most excited about to bring to this position?
Uh, I'm, I'm excited to bring my, my perspective, um,
from actually delivering capital programs, um, to
how they are executed, um, in, in the community
and how they, uh, fulfill the requirements stated.
Um, and I'm very excited to understand
and learn more about the process.
Thank you. Are there any other question from
members of the committee?
All right, alderman, um, Riley has made a motion, um,
to recommend approve this appointment.
All those in favor, please say, aye.
Uh, all those polls, please say nay.
The motion passes without objection by the same roll call
that was applied to deter quorum.
Thank you. And congratulations, Mr. Kal Laia.
We look forward to working with you at CDC.
Thank you very much. Uh, are there any special service,
uh, commissioner appointees
that are present may come up front.
Take a seat. If your name's called,
please indicate your presence to be acknowledged.
Following individuals are being considered
before the Committee Eve Morran Constantinos,
Vito Giannis, and a Thomas Pa Pala
as a member of Special Service area number 16, Greektown
Timothy s Klump as a member
of special areas number 18, Jay Moron.
Whitaker is a member
of special service area number 56 Bronzeville
and item seven and eight on the agenda
of substitute appointments of Ivy Spec
and Jennifer Dede's as members
of special service area number 17 20 25 Central Lakeview
Wrigleyville Commission.
If you could just, um, identify yourself
and, um, what SSA you're serving on
and then if there's any questions
from the committees, we'll go ahead and allow that.
Okay. I'll start.
Eva Moran. I'm with, um, SSA number 16,
which is Greektown.
Hi, I am Jen Deida. I am with SSA 17 Lakeview.
Hi, I'm, are we on? Yes.
Ivy Speck with SSA 17 business owner
for 30 years in Lakeview East.
Perfect. Our Alta three of you,
is this your initial confirmation or initial appointment
or are you, are some of you Reappointments?
I'm a Renewal. Renewal,
Renew. Renewal.
Initial. Initial. Okay. Excellent.
Um, are there any questions from members of the committee?
Alderman Lopez?
Actually for Thank you chairman
and good morning members of the committee.
I guess first off to you, chairman, we're everyone invited
to come be here, especially the REAPPOINTED members?
Yes, they are, um, invited and sometimes, um,
because they may have a business, um, what we're trying
to do is make sure that, uh,
we're not putting 'em in a position where they're having
to potentially shut down the business, uh,
for a 10, 10 30 meeting.
Uh, so we're trying to accommodate those folks.
Are they encouraged to participate remotely?
Yes, they're encouraged as well.
And the four individuals that are not here,
did they respond to that invitation?
Uh, let me ask my staff, uh, please.
My, oh, okay.
Um, mark Roon will go ahead and, uh, be able to reply.
And while we're doing that, um, let's identify, um, allow,
uh, Alderwoman guttier to be counted towards the corp call.
So, DPD invited all of the, uh, both the reappointments
and the new appointments
to attend either in person or remotely.
Um, we especially, um, emphasized
that the new appointments attend.
Um, we reached out to, um, all of the Reappointments
and did not, uh, um, hear back, uh, from all of them.
But, uh, these are the ones that, uh, we're here today.
Thank you Albert Lopez.
Thank you. Mark. Um,
how many ssas do we have in the city of Chicago?
There are 58 ssas.
I think that we've had some discussion both in committee
and offline with regards to working to make sure committees,
providers, and, uh, excuse me, the committee, the providers
and the, uh, commissioners on ssas,
uh, are working together.
And I know I, I feel chairman,
that we've had conversations about having members
that are being appointed or reappointed show
up and participate.
And I know it's a constant question with regards
to public testimony, whether
or not individuals are showing up.
So that, um, as both in their duty and responsibility,
but also before this committee.
Um, and I wanna thank everyone
who made the attempt to be here today.
Um, because I think it's important that we see you,
you see us, and that we know how we can help you.
I think when we feel that showing up is secondary
to city Council, I think
that sends the wrong message, um, in my opinion.
So, chairman, I actually would make a motion
to divide the question separating number 3, 4, 5,
and six from the motion to approve until such time
as they show up either in person or virtually.
Can you, uh, repeat that motion? Sure.
I move to divide the question of approval,
separating items 3, 4, 5,
and six, um, from the main motion to approve
until such time as they show up,
either virtually or in person. All
Right, so there's a motion on the table.
Uh, if you vote in the affirmative,
then we will table those, um, those, um,
items that, uh, alderman Lopez is, has, um, has identified.
If you vote no, then you vote to proceed, uh,
with the nominations.
Uh, so with that, we'll go ahead and take a, a roll call.
Oh, Mr. Benegas, please do a roll call.
Alderman Mosley. Aye.
Oh, we're not doing it, sir.
You're not. Okay. No, we're not doing it right.
Alderman Lata. Alderman Hall.
Alderman Hall. We'll skip you.
Uh, alderman Mitchell. Alderman Chico.
Aye. Alderman Hall is a i Alder Alderman Hall is a I.
Alderwoman Lee Alderwoman.
Gutierrez Alderman Lopez
Aye.
Alderwoman Tabes. Yes. Alderwoman Cruz.
Alderman Cardona Aye.
Alderman Wapac Alderwoman mitts.
Al Woman mi. Alright. Alderman Napolitano
Is an I to divide the que.
Is it I to divide the question?
That's correct, sir. Aye.
Alderman Riley. Alderwoman. Mana Hoppen.
Alderman Viegas.
Aye. Seven, eight. Uh,
12 to five. The ayes have it all.
All right. So then, um, the question will be divided
and we will move forward with, uh, with the, um,
affirmative if a motion is made to confirm those
that are in attendance, and then hold the other nominees
until a time that they can participate in person
or participate remotely.
Given the option of, uh, remote participation.
Is there a motion? Uh, alderman Lopez makes a motion
to confirm the attendees that are in attendance, um,
and then, uh, hold those nominees that have been, um,
that are not here in attendance
and, uh, have not participated remotely,
but have been divided by DP.
All those in favor, please say aye. Aye.
All of the opposed, please say nay. All right.
The opinion, the chairs, the ayes have it. Um, thank you.
Uh, commissioners, uh, the affirmative, uh,
vote will be recommended to the full city council
and we look forward to working with, with all of you.
Uh, and if there's any, uh, ideas
or any, um, things
that you're seeing out there in the streets, uh, along the,
those corridors that you need assistance with,
please feel free to reach out to us.
Uh, we definitely wanna partner with you, given the fact
that you all are boots on the ground, uh,
in those business quarters.
So we're looking forward to working with you. Thank you.
Thank you. Yeah.
Mm-hmm. So they,
because, um, they were, uh,
substitute also
seven members.
Okay. Yeah. So you should make sure to write this to,
to read out this part
'cause they're substitute appointments.
'cause the ones that were up there were not. I respect Yeah.
Ivy benefit of both substitutes. Yep.
Okay. So just, did you read that?
I did. I did, yeah. Oh, yeah, I did
Ahead. Yeah,
I did.
Alright. Thank you.
Um, the EC
Rest of your, Uh, thank you.
Appreciate it. Thank you. Mm-hmm.
Just to, uh, clean something up.
Um, item seven and eight were substitute appointments.
Uh, may I get a motion to accept that substitute
Ultimate Lopez, uh, acknowledges the substitute.
All those in f favor, please say aye. Any opposed?
Please say nay. Dependen chair.
The ayes have it
about what?
Yes. You can make the motion to approve
Ivy Spec, which is in person.
The other one we're holding. Yeah. Yeah.
We already did that already. Yeah. We're good? Yep.
All right. The EC TT team has confirmed a support
or non objection from the following council members
with appointments or reappointments within
their respective warts.
Uh, alderman Woman, clay Conway, Dow Lawson, if any
of the appointees, we, we did that already.
I'm sorry. It's the new year. I apologize even back into,
I'm going to the director service.
Here we go. Yeah. Okay. All right.
Items nine and 10 of the agenda are direct introductions.
Uh, ordinance number nine is an ordinance designating the
Greater Southwest Development com corporation
as an interim service provider
for special service area number three.
And item number 10 is an ordinance designating the Greater
Southwest Development Corporation as
as interim service provider
for service area number 59 dash 2022.
At this time, mark Rohan, deputy Commissioner
for the Department of Planning and Development is available
to answer any questions on these ordinances.
And, and Mark can explain, uh, the timeline around, uh,
a um, RFP process.
Good morning, Mr. Chairman and members of the committee.
My name is Mark Rosin, an assistant commissioner
with the Department of Planning and Development.
We are requesting support for ordinances
for designating the Greater Southwest Development
Corporation as the interim service provider for SSAS three
and 59 dash 2022.
This action will allow services to resume in these SSAS
until a permanent 2026 service provider can be identified
and selected through a formal RFP and community process.
This organization was selected by the affected alders
who joined a meeting with DPD on December 18th, 2025.
These ordinances are the first step in the agreed upon
process to designate a permanent service provider for 2026
on January 2nd, DPD posted a request
for proposals on its webpage
for any non-profit organization interested in becoming the
permanent service provider for 2026.
Applications are due by January 26.
A community meeting will then be held
during the first week of February.
Each applicant will have the opportunity
to outline their organization's capacity
and expertise to manage SSAS three and
or SSA 59 dash 2022.
Following the community meeting
and with input from the affected alders,
DPD will seek consensus on the selection
of the permanent service provider for 2026.
Once the decision is reached,
the service provider would be designated
in separate ordinances.
Our goal is to have the permanent 2026, uh,
provider ordinances approved by City Council in April
with a May 1st starting date.
In addition, responding
to Alderman concerns DPD is requiring
that SSA number three go
through the SSA reestablishment process in 2027.
This process will require the SSA go
through the same process that all other renewing ssas must
do, including conducting community meetings
and collecting signatures
of support from at least 20% of the PIN owners.
DPD remains committed to working
with the six affected alters to address any ongoing concerns
and to ensure the best outcomes for their communities.
We ask for the committee's
recommendation on these ordinances.
Thank you. Uh, mark,
are there any questions from the members of the committee?
All right. Seeing no questions from members
of the committee, alderman Lopez made a motion
to record approve these ordinances
by the same roll call vote
that was applied to the term quorum.
All those in favor, please say, aye.
The do pass recommendation will be reported out at the next
City Council meeting.
Uh, items 11 and 12 are tax incentive ordinances.
Item 11 on the agenda is an ordinance
where a Class six B industrial property tax incentive at
1 0 4 59 South Muskegon Avenue.
Aaron Fogle, the financial 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.
Mr. Fogle, please begin the presentation when you are ready.
Uh, for the record, all Ma Chico has
provided a letter of support for this item, uh,
and is on the call, uh, to respond
to any questions from members of the committee
and provide a comment if necessary.
Good morning, uh, chairman Viegas
and members of the Committee on Economic Capital
and Technology Development.
For the record, my name is Aaron Fogel,
financial Planning Analyst in the Department
of Planning and Development.
I'm also joined today, uh, by Patrick Gonen, John Fitzgerald
and John Fitzgerald II from the development team.
I'm here today to request the approval
of an ordinance supporting a Class six B property tax
incentive renewal for Rose Dev portfolio I-L-L-L-C
for the purpose of preventing the vacancy of
and enabling additional development at an approximately
236,000 square foot manufacturing
facility at 1 0 4 5 9 South Muskegon Avenue.
The project site is in the 10th ward,
the South Daring Community area, the Lake Kame area,
industrial TIFF District, the far south planning region,
and the CME industrial corridor.
Alderman Chico has provided a letter
of support for the project.
The subject property is an irregularly shaped site,
generally level, and at grade
with the fronting streets located on 20,000 acres
of land just off the South Kme River.
The property improvements include a single story two
building industrial complex containing a total building area
of 236,202 square feet.
Built in stages between 1901
and 1990, it was once home to a General Mills plant.
The facility includes a deep water barge slip,
interior rail car, and bulk truck transfer,
and approximately 3 million pounds
of dry bulk storage in the silo facility.
Several improvements have been made throughout the years
to ensure quality
and optimal efficiency of manufacturing operations,
including a major capital expansion
of an isolate system completed in 2021.
The current owner of the property is a subsidiary
of Rose Dev, which purchased the property in 2017.
Rose Dev is a prominent Canadian real estate organization
with over 50 years
of experience across the real estate sector.
The prior tenant, the prior tenant liable
for tax was Oro Corporation,
but that firm entered Chapter 11 bankruptcy
and assigned its lease
to its successor interest Element Food Solutions in 2020.
Its lease goes through 2030 AL Food Solutions licensed use
and occupancy of the property to a PS GPA
through the term of the lease.
A PS GPA operates two divisions at the property.
First, its food ingredients division
that manufactures over 150 million pounds
of ingredients annually using a variety of food,
pharmaceutical, and animal nutrition products.
And secondly, it's pro soy division,
which focuses on environmental and cost-effective solutions
and engineering innovative applications for replacement
of traditional chemicals, as well
as new uses in emerging markets such
as echo friendly laminated products.
A PS GPA completed a build out of a state-of-the-art protein
and extraction system.
In 2021, the firm invested a total
of nearly $13 million from 2020 to 2024.
They also planned to build a second soy protein processing
system costing about $7 million
and estimated to create, uh, between 15 and 20 jobs.
However, they have the option to relocate adjacent
to the supplier's plant in Iowa.
The six B renewal would be a determining factor in a PS
group's plan to expand in Chicago or relocate.
Applicant for the incentive is rose Dev.
The property is a 236,000 industrial complex used
for the manufacturing of liquid
and dry industrial grade products
for the pharmaceutical and food industries.
The incentive type is a Class six B property tax incentive.
This would be the second renewal.
In addition to preventing the tenant's relocation
and vacancy of the property,
the incentive would help the tenant build a second soy
protein processing system at an estimated cost
of $7 million.
Over about a one year project timeline,
the estimated tax savings to the applicant passed through
to the tenant is approximately $1.3 million over 12 years.
The potential 7 million, uh,
soy processing system would be comprised of, uh,
$4.7 million or two thirds hard costs
and 2.4 million of soft costs.
A PS Grpa has indicated
that this would potentially be funded 100% with equity,
but they can also borrow necessary funds
to support the project through a banking relationship.
Uh, a total of $74,936 was paid in property
tax on the combined pens in the last full year.
We estimate that the property taxes over 12 years without a
renewal of the six B would be about $2.5 million
and about $1.2 million with a renewal
representing a 1.3 million abatement value
to the tenant liable for tax
or $963,000 on a net present value basis.
The city's share of that abatement value was estimated
to be approximately $305,000 over 12 years,
or $221,000.
N-P-V-D-P-D is in support of this project
that will keep a significant manufacturing company in the
city preserve 130 full-time jobs
and potentially create 20 new full-time jobs.
The project would also bring, uh,
an estimate over $7 million in investment
to the far south side of the city.
Thank you for your favorable consideration of this request.
I, as well as members of the development team, are happy
to answer any questions the committee may have.
Thank you. Mr. Fogel.
Uh, are there any question
or comments from members of the committee?
Alderman Lata.
There we go. Hey, thank you so much, chair.
Uh, I had, so it sounds like a great project
and I'm glad to see us keeping a manufacturer in the city.
I had a question 'cause it, it looked like on one
of the slides, the current lease
expires it at the end of 2030.
Is that accurate? Correct.
What is, what is the plan post 2030, particularly
as we're considering a, a 12 year class
and b incentive? The incentive,
Do you want me to answer that? And
I'm sorry. I'm Patrick on from a PS.
Um, that is a really good question.
Our lease contains two options to renew at our,
at the tenants option.
So we have, we can go to 2035 and then again to 2040
and, um, which we fully intend to do.
Oh, okay. Fantastic. I I just was
very curious about that point.
Thank you, sir. I had one other question.
Can we go to the, the sources and uses slide?
Okay. So it was, how are we differentiating building costs
from hard costs and soft costs?
Us, usually I would associate building costs
and hard costs are the same thing.
Can you explain that just for my own notification?
Sure. Um, the, the project costs,
so the 4.7 million has already been bid,
and that's solely the equipment cost that'll be
delivered to our facility.
Um, roughly half of that is install costs,
platforms, electric, et cetera.
It's a lot that goes into putting that equipment in,
Asked and answered. I really
appreciate it, sir. Thank you. Thank you.
Thank you chair. Yep.
Thank you. Al Spoto, alderman Lopez.
Thank you Chairman. And again,
good morning members of the committee.
Good morning to you both for being here. This is the sec.
This is going to be the second renewal, correct?
Or the parameters for the,
the first application and the first renewal.
I can answer that. Um, um, the parameters for the first,
for the first application were job creation,
which we did do.
Um, we exceeded the original job creation.
I think the original one was eight to a hundred, uh, 80, 80
to a hundred jobs, which we did do.
And the second And the second one we're gonna add, um,
approximately 20.
With the second system, the differentiation
between those jobs, they're all very high skilled,
high paid operators.
So our lowest wage that we would pay,
an entry level person kind
of walking in the door is $17 an hour.
The operators on this system start at 23.
They do go to about 30.
And then all the support staff are, um,
electrical technicians, process
techs in our maintenance group.
They're anywhere from 35 to $40 an hour plus.
And the $7 million investment
that has not taken place yet. Correct?
That has not. And the, on the capital, on the sources
and use, and on that, there's a portion of equity
and there's a portion of bank debt from CIBC,
which is our primary lender.
Thank you Alderman Mitchell.
Um, and to piggyback on, uh, alderman Lopez question,
can you provide a little bit more details
around the parameters of the job creation For the first,
for the first application, more detail around it.
Are, are all those jobs from Chicago?
How many were from the local, from the neighborhood,
local hires that, you know, that kinda information?
Yes. The, um, a hundred percent from, uh, Chicago
and pretty much a hundred percent from the,
the surrounding area, um, in the neighborhood.
And the same thing will happen with the new jobs.
I mean, we're, our preference is there's some
of the installation, the equipment is very
technical and very specific.
Um, so we'll put that out to
as many local contractors as we can.
Um, and then what we've been doing is try
to internalize a lot of the work that we do.
So we just hired two young people from local, uh, coin, uh,
uh, trade school and Tesla trade school.
So what we're doing is we're taking these young folks
with electrical and mechanical training,
and we're marrying 'em up with the outside contractors
to learn how to take care of this equipment.
Then we internalize that.
So we're kind of looking to upsize the job, you know, the,
the skillset as well as the earning potential
for the new hires.
So these 20 people all be targeted for, um, you know, 20
to $40 an hour jobs, which is, which is important for us.
I mean, job retention's a lot better with, you know,
higher skilled, more interesting jobs,
and certainly with higher paying.
Okay. Thank you for that. Appreciate it. Sure.
Thanks Chair. Thank Mitchell.
Any other question from members of the committee? All right.
Seeing not, oh, um, alderman Chico, would you like to,
um, make a comment?
Thank you, chair. I, I stand the support.
Um, this facility was once occupied
by General Mill as a mainstay in the community.
And to see, uh, a PS take this up, continue to develop,
continue to bring jobs to the community, um,
and be a, a good partner of the community, uh, I support,
so looking for the committee's
favorable consideration on this.
Thank you Alderman Chico, we have a motion
to recommend PLA m pass.
Commend passes this ordinance by the same roll call vote
that was applied to establish quorum No moved
Alder Mitchell, uh,
makes the motion hearing no objections, so ordered.
The do pass recommendation will be reported
out the next city council meeting.
Thank you. Thank you. Thank you.
Um, item 12 on the agenda is an ordinance
for a class six B tax incentive at 1532 West Fulton Street.
Uh, Mr. Robert Bunkers, the financial planning analysis
for the Department of Planning and Development is here
to present in support of the item
and will be available to answer any questions.
Mr. Bunkers, please begin the presentation when
you're ready for the record.
Alderman Burnett has provided
a letter of support for this item.
Good morning Chairman Viegas
and members of the Committee on Economic Capital
and Technolo Technology Development.
For the record, my name is Robert Bumpers,
financial Planning Analyst, and the Department
of Planning and Development.
I'm here today to request your approval
of a redevelopment agreement between the city
and 1532 West Fulton, reverse LLC for the purpose
of authorizing an initial six B property tax incentive.
I'm joined here by members of the development team,
Stuart Harris of 1532 West Fulton
and Mark Rogers of San, uh, sorry,
Uh, Liston and San Tills.
My apologies. The subject property is located
at 1532 West Fulton Street within the near West Side
community area and the 27th Ward.
So the central planning region
and Alderman Walter Red Burnett supports the project
and the incentive property is located at the
northwest corner of West Fulton and North Justine Street.
Shown here. The property is current condition, exterior
current condition, interior.
Again, the project team is led by Phil Stuber of 1532 West
Fulton, reverse LLC.
This is a single purpose entity created for this endeavor.
The team also includes GC TW Chicago
and Mark Rogers of Liston San Tillis.
And the occupant will be
corporation DBA Coffee Unlimited.
The, uh, 1532, uh, west Fulton.
Reverse LLC was the contract purchaser of the approximately
20,600 square foot building in June of 2025.
The owners plan to re renovate the property
and lease it to the related entity, Stuber Corporation,
DBA Coffee Unlimited.
To expand its Chicago operations.
Rehab will include masonry, fire, sprinkler upgrades,
roofing, plumbing, and HVAC.
The total project cost is approximately $4.8 million
and will be financed by a combination of equity and debt.
This will be the main floor plan.
The estimated abatement
to the applicant will be approximately $1.1 million
with an NPV of approximately 834,000.
The city share that is gonna be 253,000 with an NPV
of roughly 188,000.
Overall, DPD is highly supportive of the proposed project.
The incentive will aid the community in the creation
of jobs, activation of the vacant building,
and increasing property taxes.
Thank you for your favorable consideration of this request,
and we're here to answer any questions
that you may have. Thank you.
Thank you, Mr. Bumper.
Is there any questions from members of the committee?
Alderman Lopez, followed by Alderman Ada.
Thank you again, chairman. And welcome question.
So this construction begins
December, 2025. Has it already begun?
Um, no, it has not begun yet.
And construction will deal
with local hiring, local opportunity, all of that?
Yes. Um,
this is a new application to get the coffee,
uh, uh, unlimited.
Is that what it was? Coffee on the day? Yes. Yeah. Okay.
Okay. The only question that I have,
and I congratulate Alderman, is this new to Chicago
or are they relocating from somewhere else?
They're relocating. They're on a lease right now,
and they have purchased a building to establish their, um,
longevity here in Chicago.
They've committed to staying here
and that's why they purchased the building.
Okay. I have no other further questions, uh, for this,
but I do have one question overall for DPD.
And if we could get this through the
chair, I'd appreciate it.
What is the total value
of all the ab abated taxes from fiscal year
2025 and 2024?
Because I'd love to see what the impact of all
of these abatements are, uh,
when it comes towards the revenue not being collected
because of these abatements.
So you'd like the dollar figure for each of those years?
Yes. Okay. Alright. Thank you. Yeah.
Could you, could you also add, um, what the, uh, positive,
uh, economic impact is as well?
So if we're abating a million dollars,
we're getting X amount in job opportunity investments,
et cetera, because I think that's a fair,
uh, analysis there.
Actually, chairman, I'd go one further if possible if we
could break that down by region since these are always
broken down by regions.
Show what the abated values are by region, as well
as the economic impact by region,
because I think that will tell the full story of
where we're actually emphasizing growth
and development through tax abatement. Thank you.
Certainly we'd be happy to do that if we, if, uh,
I'm not sure right now if that data in
that in depth is available,
but we'll do it the best we can to get it to you.
W well, I mean, you, you, you, I mean, at some point the,
um, applicant is agreeing to,
to do something in exchange for the abatement.
Yes. And so they, that information should be there.
'cause DPD should be tracking to make sure
that they're meeting those goals over the
course of the abatement.
Certainly. Okay.
So that you could somehow try to put that together, uh, to,
uh, to show what the ROI is for the taxpayers.
Excellent. Yes, we will do that for you. Thanks. Thanks.
Uh, alderman LA Spotify followed by Alderman Howorth. Hey,
Thank you so much, chair.
Uh, I will say I, I love the project.
I love the continuing evolution
of the Kinsey Industrial Corridor.
The kinds of businesses that continue to open, expand,
create jobs there.
My my only question was why fund this work through
a class six B rather than the Kinsey
industrial corridor tiff?
'cause the, the TIFF continues to be rather healthy.
Can you explain that choice?
Um, yeah,
I think I can take this. Um,
so the tiff is you identify in, oh, who's that?
Did you identify yourself? Oh, I'm sorry.
Uh, Mark Rogers Liston and San Tillis.
Um, so the TIFF is, uh, very valuable
and essentially you might get to the same spot eventually,
but the TIFF is pay in payout here.
Um, that tax dollars are automatically cut off just
by the reduction in, um, level
of assessment from 25% to 10%.
So you're not waiting for any reimbursements.
You see the reduction automatically
on the next year's tax bill.
It's fascinating. And a, you open up a curiosity
that I will explore outside of the committee's time.
Thank you so much. Thank you, chair.
Thank you all. Name, uh, hold.
Is that a point of information, Mr. Yeah.
Um, I'll you on a point of information that
That response came from the attorney that's, I think
that should be better coming from DPD.
Why did DPD choose to further, uh, go
for a tax in abatement versus the tiff?
Well, the tax abatement is from the county
and the taxes that are paid to the county.
Whereas the TIFF is money that would be paid out as,
uh, a reimbursement for their investment in the property.
So instead of doing it initially right there,
after they've done the project,
the tax abatement is a 12 year incentive instead
of all the money being paid to them.
Right. Then once they finish the project. Okay.
The reason, the reason, okay, Tim,
You wanna Jeff expound on it?
Sure. Tim Jeffries, department of Planning and Development.
Um, I think we also think of our incentives as sort
of a pyramid, um, with the, you know, the benefits
rise commensurate with the level of complexity for these,
I would put these PTI somewhere in the middle.
They're not actual hard cash going out the door, uh,
because that's real money.
Obviously this is opportunity cost
and we think that opportunity is worth it
or else we wouldn't be here in front of the committee today.
But, um, I think from a, the, the applicant asked
for this incentive, and then B, this is, this is a, a,
a program that gets the job done while letting the city
retain it's, it's, it's funding and cash.
And that is generally a, a better outcome than, than
to put out hard cash for a project.
Yeah. Okay. Lopez, you have a point
of information on that as well, or,
I think you knew what separate question
that Tim No, I'm sorry.
I'm, I'm finished.
Go ahead. Almar Lopez.
Thank you Chairman. And again, um,
and I first off, these questions are not directed at your
project, so you could take a deep breath, not breath.
Um, but I think the real, real question
that I think my colleagues
and I are trying to ascertain is this isn't
a TIF district, correct?
Yes. I'm looking at DPD,
not the lawyers looking at DPD.
So we have projects like spiff, right?
Small business improvement funds and things of that nature.
What's the total of this project? Of, of
4.8 million Done.
Million dollars. $4.8 million.
Right. So we could have theoretically done 4.8 million in
TIF to help this along, correct?
Theoretically, yes.
Yeah, I see you fidgeting. No,
No, But I also know that if we're going to
cost the city, because you're saying this is cash
out the door, right?
But it's also cash that's not coming in
for the next decade or so.
And as we've seen in other projects
that you guys have brought before us as a department,
once they start struggling because of crime, homelessness
and whatever, then we're gonna continue down this path
of lowering and suppressing tax
valuations to keep them here.
Whereas if we had focused on giving them the money from the
tiffs that aren't surplused for a billion dollars,
then we could actually help spur development.
Is that, that would be the opposite
of this coin that we're talking about today?
I think it's, it, it's very project
dependent in this case.
Can I get a yes or a no? In this case,
We could have, if they, to do the spiff done this
project fully correct. If
They had applied for spiff, if SPIFF was available.
Yes. And it still is an option
for them on a move forward basis
for the SPIFF program specifically,
I just am very concerned when we start
devaluing consistently when we have opportunities in funds,
the Kinsey TIFF is not one lacking for money,
has plenty of opportunity.
And I just think that saying that we need to hold onto cash
in tiffs and that we're going to use the incentives
as a different means is done
for very different purposes other than
spurring neighborhood investment.
Because we have seen in other wards where
we are not fully using tiff,
we are not fully using the SPIFF program
and all these other options that are available simply
because we're continuously trying to use this
unassigned TIFF surplus as a means for people
to balance budgets and do things like that.
So I I I just wanna point that out
because this isn't the only tool.
There are other tools and I think
that they also are very much, uh, more worthy of our,
in our, uh, usage
to get these projects done. Thank you, chairman.
I wanna clarification. Auto Admits mitts,
Um, Ottoman Lopez or you signed Tiff or Smith?
Which, which one?
The Smith which one are you speaking of? Both.
Both, Okay.
Because the spiff would be operated through the tiff. Okay.
Anyway.
Alright. Alright. Uh, now we have, uh, all, uh,
Thank you chair.
This project seems great. So I, I hope that we will pass it.
And congratulations.
I, I find this conversation interesting
and I hope that we continue it in some way.
I, I wanna clarify, when you a when Alderman asked about,
um, getting data per region,
is it region per township?
Like Tax Township?
I, I'm trying to understand from the perspective
of a property owner. So say the
Yeah. Yes. So,
um, sorry about that.
So the region would be, DPD breaks up the city into regions.
So DPD would, um, provide
that information per region in the city of Chicago.
Got it. Right. So it'd be central, north, south, west,
east regions.
Yeah. Um, could you show the map, uh, Mr.
Bumpers of the city?
And that's also knowing that a project like this
helps the whole of the city, right? Yeah. Development.
There's s on the screen right there, right?
A project such as this helps the whole city, right?
If we develop one part of our community,
then it helps wholly.
So I'm interested in the regions,
but also just to clarify, we,
we want development in the city of Chicago
because it brings jobs, it brings it, it brings investments.
It's better than empty lots.
Yeah. Yeah, I agree. I think we all agree with that.
It's just a matter of given, um, the, the abatement,
um, and the, the fiscal issues that the city's facing.
I think we just wanna make sure that there's a good
ROI for the taxpayers.
And since there's an abatement over a 12 year period,
we wanna make sure that, that, uh, the developer
and the the owner are fulfilling their part
of the obligation, uh, as we,
as we approve those abatements.
So that's all we're asking for.
And Alden, uh, alderman Mitchell
and I passed last term in ordinance,
and we're looking forward to hearing that information from
DPD on an annual basis.
DPD will come back to the co to the committee
to provide information on all the incentives
that were passed in the previous year to make sure
that they're on track with
what it is that they committed to.
And is that gonna reflect back how these developments help
with folks?
Property tax taxes as well? No, no, no.
It's not reflective of that.
Okay. No, I, I do wanna emphasize
that we want development in the city of Chicago
and that it will help all of Chicago
by lifting up communities
that have been disinvested, right? Yeah.
And we wanna underscore that, we wanna underscore
that we all, we're all in agreement with that.
We just wanna make sure that as,
as we're providing the abatement that, um, the other side
of the table is fulfilling their obligation as well.
Correct. Thank you. Alderman Lee.
Thank you Chairman. Um, as, uh, an alderman who recently,
uh, supported a, a second renewal in her own ward,
I would say, um, I know
that there have been questions raised
about additional renewals.
I I think this is a great use of the six B.
Um, I see coffee unlimited trucks all over the place.
Glad that you're staying here in Chicago.
Um, you know, we, there's a lot of competition.
I have the Stockyards Industrial corridor.
I share that with, uh, alderman Lopez as well.
Um, and we know that, uh, other municipalities are actively,
um, recruiting, um, and really trying to steal folks away.
So I'm glad that we have, uh, the six B as one
of the tools in our, in our, uh, toolbox to use as a city.
Um, but I do think that we, we wanna continue to make sure
that, you know, we are getting the most bang for our buck
and that we're doing what we can to, to support, um,
continued growth and expansion.
Um, I, I know there was a, a lot
of conversation in our last budget conversation about,
you know, um, companies potentially mass
exiting, um, from the city.
But, you know, I, I was always more concerned about the
potential for companies to grow
and if you wanted to grow, could you do that here?
So I'm glad that we're able to do that here today.
I'll be supporting you on a I'll, uh, move. Do pass on this.
Thank you. Uh, alderman Lee.
Alderman Lata has already beat you to that motion.
No problem. Are there any,
are are there any other questions?
Uh, from members of the committee,
is Alderman Burnett on the call?
I do not see Alderman Burnett.
I do not see him in the, in the building.
Uh, alderman LaSpada has made a motion
to recommend passive this ordinance by the same rule, Val,
that was applied to established quorum.
All the favorably say, aye. Hearing no.
Uh, and appear the chair of the ayes have it.
The Due Pass recommendation will be reported out at
the next city council meeting.
Since there is no further business.
May have a motion to adjourn by the same roll call
that was applied to establish Quorum Derman Lopez.
So moves hearing No objection.
So ordered the meeting
of the Committee on Economic Capital
Technology Development Adjourned.
Thank you everyone. I.