Good afternoon, everyone. The Committee on Finance will get started as soon as we have quorum.
We're close. Good afternoon, everyone. The Committee on Finance is called to order.
We'll have a roll call to establish quorum. Vice Chair Conway, Alderman LaSpada, Alderman Hopkins,
Alderman Hall, Alderman Beale, Alderman Lee, Alderman Ramirez, Alderman Quinn, Alderman Lopez,
Alderman Moore, Alderman Curtis, Alderman O'Shea, Alderman Taylor, Alderman Mosley, Alderman Rodriguez,
Alderman Ciccio Lopez, Alderman Burnett, Alderman Irvin, Alderman Taliaferro, Alderman Cardona,
Alderman Wagesbach, Alderman Rodriguez-Sanchez, Alderman Cazada, Alderman Villegas, Alderman
Mitts, Alderman Sposado, Alderman Vasquez, Alderman Riley, Alderman Knudsen, Alderman Martin,
Alderman Silverstein, Chair Dowell's present. We have a quorum. We have 23 members here.
Alderman Ramirez, that makes 24. I see Alderman Coleman and Alderman Fuentes have joined us
as non-members. Alderman Mitchell, Scott, and Harris have requested to participate remotely at
today's meeting for reasons under the provision of Rule 59. Can I have a motion to allow these
aldermen to so move by Alderman Cazada? All those in favor signify by saying aye. Opposed?
No Nick Sposado, huh? In the opinion of the Chair, the ayes have it and the motion carries.
I'd like to confirm that Alderman Mitchell, Scott, and Harris have joined us and are present.
Alderman Mitchell, present.
Alderman Harris and Alderman Scott.
Alderman Harris is here.
All right. At this time, we will begin the public comment period. The public comment period will be
limited to 30 minutes. Out of respect for everyone's time, each speaker today is limited to two minutes
because we have more than our normal share of speakers. We do have one caller that's called in
remotely, and we will call on Benny Chan to speak first. Mr. Chan, are you with us?
Okay. Mr. Chan is not here, so we will go with those in-person speakers. The first person to speak
is Michael Jacobson. Good afternoon, Chairwoman Dahl and members of the committee. I'm here today on
behalf of the Illinois Hotel and Lodging Association, which represents hotels throughout Chicago and across
the state. Great to see you all again. I'm here today to share IHLA's support for Prime Group's
proposed redevelopment of 111 West Monroe and the TIF loan associated with the project. The proposed
redevelopment represents an estimated $166 million investment in the heart of downtown Chicago.
Under the proposal, the city would provide a $50 million TIF loan to help move the project
forward. Importantly, this assistance is structured as a loan that will be repaid to the city with
interest. The project is also expected to provide a significant employment benefit, supporting
approximately 500 temporary construction jobs during the redevelopment and approximately 278 permanent
operating jobs once the hotel opens. For the hotel industry, projects like this represent more than an
investment in a single building. The successful redevelopment at 111 West Monroe will put a vacant
or underutilized downtown property back into protective use and create ongoing economic activity in the
heart of the city. Once operational, the property is expected to generate significant hotel sales and
property tax revenue for the city, while also supporting additional economic activity through its guests,
employees and day-to-day operations. Taken together, the project represents a substantial
private investment, hundreds of construction and permanent jobs, significant recurring tax revenue,
and a TIF investment structure to return funds to the city with interest. On behalf of IHLA and
Chicago's hotel community, thank you for the opportunity to provide our perspective on the
project here today. Thank you very much. Our next speaker is Marjorie Birch,
followed by Thomas Haley. Hi, I'm Marjorie Birch, longtime resident of the 48th Ward.
I'm here to express our complete and full support for the Vickerdijk development as an individual,
but also as a board member of the Edgewater Residence for Responsible Development. This
development has been in the offing since Alderman Osterman was in office. This has been ongoing for
like six years. It's shameful that it's taken this long for finally to get developed, but it's
something we sorely need in our ward. We, I mean, affordable development is what we need. Affordable
development, the type of Vickerdijk is proposing here, as opposed to 20% set-asides from developers
who really aren't giving us affordable housing, as the Fern Hill development is being thought of
right now in the 48th Ward. Yeah, so I just want to reiterate my full support and the ERRD as well.
We have always been in full support of this because it's been done properly and intelligently with
community meetings for like four or five community meetings, and I certainly hope you pass it today.
Thank you. Thank you. Thomas Haley, followed by Zoe Lay. Hello. Thank you for the opportunity to speak
today. I'm here today to talk about the redevelopment, the phase one development at Foundry Park.
As this development will include 11 stories, 200 key hotel, 13-story residential development with
approximately 220 units, 8-story residential developments with approximately 252 units,
42-story mixed-use developments in underground parking garage. Also included is an at-grade
plaza with a courtyard. Our organization, the IIFFC, is here today to ask the committee to approve the
redevelopment agreement for Foundry Park with expediency and without delay so we can get workers to work.
The funds, this fund's immediate term work right now that's going to create hundreds of real jobs,
and the infrastructure work that's going to be put in place throughout the Foundry Park RDA also unlocks
a flurry of vertical development that will create thousands of jobs over the next 10 years.
These projects are not possible without the infrastructure work of the RDA, and again,
the IIFFC asks you to pass that today. Thank you so much.
Thank you. After Ms. Leigh, Chantel Edward.
Hi, my name is Zoe Lee.
I'm sorry, Ms. Lee. I keep making that mistake.
Oh, yeah, it's cool, it's cool.
Tax increment financing, TIF, which is property tax money. I'm looking at how much y'all are going to pass or
may pass, and I'm pretty sure you guys will, because at the end of the day, y'all may act like y'all don't like each other,
but y'all still do this, y'all still will have each other's back because of the policies, the democratic policies,
so it is what it is.
The tax increment financing, the property tax money, you guys are passing like crazy amounts, 22 million, 12 million.
I remember my mother asked for 1 million, and instead y'all knocked it down.
And my godfather's been paying into that TIF fund for so long.
Why are you guys, if you guys have no, the deficit is $882.9 million.
There's no affordable housing going up.
It's all a racket to continue to launder the TIF money.
So why don't y'all use the TIF money to try to at least put the deficit down?
Because that is our property tax money instead of raising them and then blaming Trump when Trump don't have nothing to do with it
because he stopped the funding because y'all keep stealing.
Like, it's disrespectful at this point.
Danielle Carter-Walters for mayor.
Our next speaker is Chantel Edward, followed by Lucas Oates.
My name is Chantel, and I'm a resident of the South Side and the Sixth Ward.
I work at O'Hare as a bartender, and I'm a member of You Not Here Local One.
Working at the airport, I have to commute from a significant distance in order to get to work every day.
And I have coworkers that commute all over to Chicagoland and Indiana area,
most of us, because we can't afford to live near where we work.
I've lived all over the U.S., and I've chose to come home to Chicago so I can spend time with my family
and be surrounded by my vibrant community.
So seeing a development seeking $200 million in subsidies without a pat to good jobs feels personal.
When I've seen the effect of what happens when my neighbors are deprived of opportunities for quality jobs
and priced out of our own community.
I welcome guests from all over the world to this city, and I'm absolutely grateful to call Chicago home.
And I hope that we can continue to give world-class opportunities that match the world-class travel experience
that our tourists get to experience here from Chicago.
A pat to good jobs at Foundry Park must be a part of that vision,
which is why I urge the members of the Finance Committee to vote no on the tips for Foundry Park.
Thank you.
Lucas Oates, followed by Adam Natishan.
Good morning, members of the Finance Committee.
Oh, my fault.
Good afternoon.
My name is Lucas Oates.
I am a doorman at the Palmer House Hilton.
I'm also a resident of the 32nd Ward and a member of Unite Hair Local One.
For the last year, I, alongside my union brothers and sisters, have raised our concerns and opposition
for the allocation of TIF funds to support the Foundry Park development without a path to good jobs.
For months, we have voiced our concerns about the use of TIF funds to support a project
that does not ensure that there would be the kinds of quality jobs and benefits
that the residents of the 32nd Ward deserve.
But to this point, there has been no commitment to good hospitality jobs at the site.
Chicago is a world-class destination, and it's a hospitality industry is second to none.
I take pride in being the first phase people see when they arrive at the hotel
and the last phase when they leave.
City Council should stand behind me and the countless workers like me
that make this city's hospitality industry run.
Until there is a path to good jobs at Foundry Park, I urge the body to vote no on TIF funds for Foundry Park.
Thank you.
Thank you.
Our next speaker is Adam Natashun, followed by Isaiah Burr.
Hello, my name is Adam Natashun, Director of Operations at Preservation Chicago.
Preservation Chicago strongly supports the development of the Harris Bank building at 111 West Monroe Street
and urges this committee to support the proposed TIF loan.
A Harris Bank building is a perfect TIF use case, as it's a highly significant landmark building,
and we're thrilled to see this development team advancing this adaptive reuse proposal.
Long concerned about the Harris Bank building, Preservation Chicago has worked hard to support its Chicago landmark designation,
specifically included the Harris Bank bas-relief lion sculptures in the landmark designation.
At one time, these bronze lions were as important to LaSalle Street Financial District as Marshall Fields' Clocks
and the Art Institute Lions.
We're excited about the adaptive reuse of the Harris Bank building into a full-service hotel,
308 keys, a rooftop pool, a ballroom, restaurants, bar,
and reopening the long-closed, historically significant Monroe Club located on the penthouse.
The $50 million TIF loan is projected to generate a strong 16% annual return for the city of Chicago,
$8.3 million per year in hotel taxes and sales revenue,
with a projected $235 million over 30 years, plus $500,000 annual revenue into the Tourism Improvement District,
plus 500 construction jobs and over 250 permanent jobs.
And this doesn't take into account all the secondary benefits to vibrancy, retail, and heritage tourism.
This is a good deal for Chicago.
This redevelopment directly supports many of our core priorities on the LaSalle Street Redevelopment Project area,
including the rehabilitation and modernization of architecturally significant buildings
to enhance the architectural character of the area, promote a vibrant pedestrian environment,
and attract unique restaurants and retailers.
This project is directly aligned with these core visions.
This is also directly aligned with our vision, our mission at Preservation Chicago,
which leverages the power of historic preservation to create healthy, vibrant, dynamic communities.
Thank you.
Thank you.
Isaiah Burr, followed by Ahmed Ingram.
Good morning, members of the Finance Committee. My name is Isaiah Burr. I'm a cook at the United Center. I'm also a member of United Here Local One. I'm a lifetime Chicagoan. I grew up on the northwest side here. But due to concerns of affordability, me and my dad have been forced to move to the south side. We currently reside in Pilsen.
I'm here today to order you to vote no on the 10th allocation for Foundry Park until there are good paths to pass the good jobs, hospitality jobs. At this development, when I talk to people in my community, a lot of people raise concerns about where their futures are in the city based on how few good jobs are available to them.
Growing up in the city, I've noticed that just within the last few years, my rent has gone up due to the Chicago fires building the Endeavor, their Endeavor Health Performance Center. My rent has gone up due to that.
What else? It looks like the displacement to young people, knowing what their future in the city looks like. A lot of my family members also have been misplaced.
I hope to have a future here in the city, but I believe to have a future here in the city for me and young people, we would need better paths to good jobs. Thank you.
Thank you, Mr. Burr. Ahmed Ingram, followed by Andrea Rayla.
Good afternoon, members of the Finance Committee. My name is Ahmed Ingram. I am a dishwasher from the United Center and a proud member of Unite Here Local One. I am a lifelong resident of Bronzeville and the Third Ward. I am here asking this committee to vote no on the 10th for Foundry Park.
As a worker at the United Center, I have benefited from the job security and opportunity that has come through my good-paying job. I know that in Chicago, the cost of living has continued to grow. I have a two-month-old that I am raising in this city, and I worry that our future won't be protected if we don't have more quality job opportunities.
That is why I am here asking the members of the Finance Committee to vote no on the 10th for Foundry Park. Thank you.
Thank you. Andrea Rayla, followed by Jessica Jackson.
Good afternoon. My name is Andrea Rayla, and I, too, was a former member of Here Local One. But Here I'm a member of the Edgewater Residence for Responsible Housing, and we strongly advocate the Bickerdike redevelopment. It's taken six years. It's about time that the ground gets broken.
But most importantly, the TIF funds are actually put into the right place. We need this affordable housing. That 70% is going to be three- and two-bedrooms. It's families that need affordable housing with kids.
And 70% of that building will be two- and three-bedrooms. The former housing commissioner, Jack Markowski, supports this. The attorney, environmental attorney, Patricia Sharkey, supports this. We're all under this Edgewater Residence for Responsible Development.
Responsible Development means this kind of development with wraparound services in a great Edgewater community. I've lived in Edgewater for 52 years. Something like the Fern Hill that's going to be building a 23-unit, 600-luxury apartment and get a 30-year tax break, that is not what we need with just only 20% affordable housing. Thank you very much.
Thank you. Jessica Jackson, followed by George Blakemore.
God bless you.
Well, time is cut, so it's better to use this time with something that would be worthwhile.
I want to address the people from the hospitality group that came up here to speak.
If you all have to stop voting against yourself, you're complaining about not being able to afford where you live, you're complaining about having- that the jobs are not paying enough, having families, then you have to stop supporting policy that's contradictory to what you need.
You need to work more, so why would you support a party that's giving your jobs away to illegal immigrants?
You need somewhere to live, so why would you support a party that's putting illegal immigrants in your neighborhood and forcing you out?
Why would you continue to vote for a party that's putting a wall over your house and whether they're giving you opportunity for small business loans and creating your own businesses?
Why are you supporting a party that's willing to give illegal immigrants free education while they're sitting here watching you scrape the bottom of your pockets for a meal of food to eat for you and your family?
Vote for yourself.
Vote for yourself.
You know what's going on in your house.
You don't know what's going on in another country.
Vote for yourself.
Well, we're going to have a town hall tonight at 2239 Michigan from 6 to 9.
Come out and talk to Chicago Flips Red about what's going on in this city.
Chicago's next mayor, Danny Carter Walters.
Thank you.
Our next speaker is George Blakemore.
Excuse me.
George Blakemore, please get started.
Listen, listen.
Stop it, Pat.
Stop it.
Stop it.
I've been terrorized.
I've been terrorized today.
Terrorized.
With an illegal lottery.
You don't.
This is not the casino.
They wouldn't let me speak in this.
They said a lottery.
And you alt ones.
You black ones.
And you white ones.
You Hispanic and Asian.
Y'all saw them terrorize me.
And you didn't say a mummy word.
Something is wrong here.
And it wasn't because.
Huh.
It was these low-lighted black, Hispanic, white, Asian, Mexican, and all altamines right here.
That voted for illegal immigrants to come into our community.
To get goods, service, contracts, and jobs that black natives in faith in America could not get.
Why did you do this?
Why did you do this?
What motivates our black ones to do this?
On the plantation, a white man.
What did they make?
A nigga.
You use the term nigga.
This Puerto Rican altamines called the black people nix.
And did they put him out?
No.
They say, we forgive him.
Forgive me for using the N word.
Forgive me for using.
Do I look like a nigga to you?
Do I act like a nigga or smell like a nigga to you?
Something is in the hell and the road.
And it's not big head Trump.
You can't bring a fish into this country without going through agriculture.
You can't bring nothing into this country.
A plant or nothing without going by legal.
Legal.
Bringing an illegal that you know nothing about.
To compete with you blacks.
Moving in your neighborhood and getting jobs, goods, and contracts, and service.
There's something wrong here.
They all...
Thank you, Mr. Blakemore.
I want to acknowledge that Mike Kudzik, Joyce Velez, and Jackie Gallo left but wanted to
be on record that they're in favor of Boundary Park redevelopment agreement.
I also want to acknowledge Alderman Talia Farrow, who has joined us and will be counted towards
quorum.
Alderman Manah Hoppenworth, who is here as a non-member.
Alderman Hopkins has requested to participate remotely for reasons stated under the provisions
of Rule 59.
May I have a motion to allow Alderman Hopkins and Alderman Rodriguez to participate?
So moved by Alderman Talia Farrow.
All those in favor of...
Can I get...
You gave me the motion.
Thank you.
All those in favor of this motion made by Alderman Talia Farrow signify by saying aye.
Aye.
Opposed.
In the opinion...
You know, the chair, the ayes have it, and they are now in the meeting.
Alderman Mosley, got you, and you'll be counted towards quorum.
We have a total of 20 items on the agenda this afternoon.
Item number one on today's agenda will be held in committee.
The committee will hear this item at a reconvened committee on finance meeting scheduled for Thursday, September 24th at 10 a.m.
in the city council chambers.
We will now hear item numbers two and three on the agenda.
And they will be heard together, but we will vote on them separately.
Item number two is from the Department of Housing.
It's the substitute ordinance authorizing the issuance of multifamily program funds to 5853 North Broadway 4 LP
for the mixed-use redevelopment, a 4% project at 5853 North Broadway Avenue in the 48th Ward,
in an amount not to exceed $3,855,235.
Item number three is the substitute ordinance authorizing the issuance of multifamily program funds to 5853 North Broadway 9 LP
for the mixed-use development at 9% project at 5853 North Broadway Avenue in the 48th Ward,
in an amount not to exceed $5,967,690.
There are substitute ordinances which have been prepared and sent electronically to everyone.
Can I get a motion to accept items number two and three as substitute ordinances?
So moved by Alderman Moore.
All those in favor, signify by saying aye.
Aye.
And opposed.
In the opinion of the chair, the ayes have it.
And the substitute ordinance is now before us.
And that ordinance, all those ordinances, or those two ordinances,
will be explained by Ryan Slattery from the Department of Housing.
Good afternoon.
Good afternoon, Chair Dowell and members of the Committee of Finance.
For the record, my name is Ryan Slattery, and I'm a financial planning analyst with the Department of Housing.
I'm here today to present 5853 North Broadway.
Today's requested action before you today is the issuance of up to $19.5 million in multifamily mortgage revenue bonds,
the execution of a TIF redevelopment agreement for 5359 North Broadway 4 LP for $22 million in TIF assistance,
which $11.5 million will be ported from the Bryn Mawr Broadway TIF.
An issuance of up to $9,822,925 in multifamily loan funds.
Authorize the transfer of Illinois affordable housing tax credits or donation tax credits for the sale proceeds of this project.
And the disposition of a city-owned parcel at 5853 North Broadway to the developer.
The project's located, as I stated, at 5853 North Broadway in the Edgewater Community Area.
The site is within the Hollywood Sheridan TIF District in the 48th Ward, represented by Alderwoman Lenny Amana Hoppenworth,
who has provided a letter of support for this project.
The proposed project for the site will be a newly constructed mixed-income family multifamily building developed by Bickerdack Redevelopment Corporation of a former streets and sanitation lot.
The building will include 90 dwelling units, 100% of which will be affordable for households earning at or below 60% AMI, the area median income.
The amenities for the building will include 90 bike spaces, 16 parking spaces, community space, a fourth-floor gathering space.
And the construction will commence in the fourth quarter of 2026 and hopes to reach completion in June of 2028.
The lead developer, as I stated, was Bickerdack Redevelopment Corporation.
They are a 501c3 nonprofit community development corporation founded in 1972 that has developed more than 2,000 units of affordable housing across Chicago over more than 50 years of history.
Because the project's structure is a twin deal, a 9% and a 4% light tech transaction, ownership is split between two entities, 5853 North Broadway 4LP and 5853 North Broadway 9LP.
The architect is Landbone Baker Architects, a Chicago firm established in 1987, known for a community-based approach for affordable housing design and neighborhood planning.
The general contractor is Leopardo Construction, a Chicago-area firm founded in 1977, has grown into a nation's largest contractor, experienced across residential, healthcare, and municipal construction.
Applicate and Thornton Thompson serves as their legal counsel.
A Chicago firm founded in 1998 as a national leader in structuring transactions involving light tech, historic tax credits, and other public-private affordable housing financial tools.
Financing partners include Weston Equity Partner, a national light tech syndicator founded in 2007 with offices in Chicago.
J.P. Morgan Chase will serve as the construction lender, and then Cedar Rapids Bank and Trust will be the permanent lender.
Shown here is the neighborhood context of the map, highlighting the project's site's location within the Edgewater community area.
It's along Broadway, just south of the Chicago Park District Broadway Armory, and the Thorndale Red Line stop.
Shown here are renderings of the proposed construction.
Shown here, we have the unit breakouts for the 4% portion of the building, which will total 57 units, including 1s, 2s, and 3 beds at 30% and 60% AMI.
Then here is the breakout for the 9% portion of the building, which will total 33 units, which also will have 1s, 2s, and 3 beds at 50% and 60% AMI.
The total development cost for the 4% component of the twin transaction is $51,924,501.
On the source of size, TIFF is the largest component at $22 million.
Light tech equity accounts for a little under $17.5 million.
The home funds or multifamily funds will be $3,855,235.
There will be a seller note for $2.692,440.
The donation tax credits amounts for this portion are $1,869,750.
There is a common grant, a little under $550,000, and the first mortgage lender at a little over $3.5 million.
For the use of the size, predominantly is the hard cost at $36.7 million, the soft cost at $8.6 million.
There is a developer fee of a little under $2 million, contingency a little bit over $1.9 million, and acquisition costs of $2.75 million.
For the 9% portion of this project, the total development cost is $28,109,744.
Source aside, there's a less number of them.
The light tech equity, which is $20,760,424.
The home funds or multifamily funds will be $5,967,690.
There will be a seller note as well for this at $1,460,560.
Similar to the 4% deal, the hard cost will be the majority of the project at $19,960,192.
So the public benefits for this project include bringing 90 affordable units and generating approximately 120 construction jobs.
The developer will comply with the requirements of the Chacallus Affirmative Action Ordinance.
The developer will also comply with the city's city residency requirements, with at least half of the construction worker jobs being filled by Chicago residents,
and will also pay prevailing wage for all construction jobs.
Once complete, the project is estimated to generate eight permanent jobs of property management, maintenance, leasing, and community engagement coordination.
To recap, the proposed transaction before year requested the Department of Housing to issue up to $19.5 million in multifamily mortgage revenue bonds.
The executed TIF RDA in the amounts of $22 million, issue up to...
to $9,822,925 in multifamily program loan funds,
and to transfer Illinois affordable housing tax credit sale proceeds for this project.
And then finally, to dispose the city-owned parcel at 5853 North Broadway to the developer
in support of the redevelopment of the site into 90 affordable units in Edgewater.
Along with me today is representatives from the Bricker Deck Redevelopment Corporation
to help answer any questions you might have.
Thank you, Mr. Slattery.
Are there any questions from the committee members before Alderman Manal Hoppenworth speaks?
Alderman Laspata?
If I may ask one, I'll be very quick with the question because it's a great project.
Two- and three-bedroom units, hard to build in affordable housing.
Appreciate it very much.
I have one question.
Fifth bullet point here, approve the sale and transfer of one city-owned parcel.
With all of the city funding that we're putting in, we're essentially paying ourselves for our own parcel.
Was it ever considered to just fully make it up?
It is for a dollar.
The sale is for a dollar.
Yeah.
Asked and answered.
There you go.
There we go.
Yeah.
We're able to have a seller note based off the appraised value of it, and that's the numbers that you were seeing there.
So what's the deal with the acquisition costs then?
The acquisition costs.
So they're able to create a seller note based off the acquisition appraised value, and so they're able to put that within to the deal as well.
What is a seller's note?
It's an item that a developer has the capability of selling based off the price value of the lands to incorporate within the project.
So it's shuffling of papers, really.
But, like, the idea is we're selling for a dollar.
They're able to create the seller note that has this particular month of $3 million or whatever it might be.
That then can be put into the deal.
So the bank takes control of that seller note.
They then loan those funds into the deal, so we have to give less amount of money to the project.
I will save my curiosity for offline.
Thank you, Chair.
Thank you.
Alderman Villegas.
Thank you.
Thank you, Madam Chair.
Could you put the financial stack up again?
I'm just curious.
9% of the 4?
9 and 4.
And only equity of $100?
Yeah.
For our normal projects, the equity is $100 for affordable housing.
And then these are the housing equity, the head bonds or something like that?
There's no head bonds in this project.
So what is this mortgage?
Go back to the other one.
The other one?
No.
The one that you were on without a bullet point.
Oh, so that's for the 4% deal.
So those are the 4% bonds.
It's the multifamily mortgage revenue bonds.
Can you go back to the...
Sure.
So in order to get the LIHTC equity within the project, we have the bond capacity to go ahead and generate the funds based off of the 4%.
Well, I mean, what a stack.
Wow.
Okay.
Thank you.
Thank you.
Alderman Riley.
And just, if you could, what's the average cost per unit to deliver?
The overall?
Uh-huh.
890,000.
890.
Yeah.
Thank you.
Thank you, Chair.
Thank you.
Alderman Minah Hopperworth.
Thank you, Chair.
This is a development that our community has been very excited about.
I ask for this committee's favorable consideration because we have passed it through the land commission and zoning, and we can't wait to get it over the finish line.
Thank you so much.
That's all you had to say?
Well, there's a lot more to say.
You usually have a lot more to say.
I know, but it's been such a long day.
I will say a couple more things.
Okay.
This is a development that's right next to the...
This is a development that's right next to the train station at the largest field house on the north side.
It's an area in Edgewater that's had spiking rents and low vacancies for quite a number of years.
And our families are struggling to stay in the neighborhood.
People are telling me that their rents are spiking up to $250 a month now or more, and we need more housing.
We're in a housing crisis.
This is going to bring 90-plus affordable units, electric, accessible, more green space to Edgewater on Broadway, which needs a lot of love.
And I hope for this committee's favorable consideration for this.
Thank you.
Thank you.
I was glad to see that you were able to get 30% deals in here, too, 30% rental percentage.
Oh, that's good.
Is there a motion to recommend approval of item number two?
Ah, excuse me.
You wanted to...
You so moved?
Also moved by Alderman Cazada.
All those in favor signify by saying aye.
Opposed?
In the opinion of the chair, the ayes have it.
And the do pass recommendation for the substitute will be reported out at the next meeting.
I also need a motion to recommend approval of item number three related to this project.
So moved by Alderman Mosley recommending do pass.
All those in favor signify by saying aye.
Opposed?
In the opinion of the chair, the ayes have it.
And the do pass recommendation of this substitute will be presented at the next City Council meeting.
Mr. Slattery, thank you very much.
And congratulations, Alderman Manah Hoppenworth.
We'll go out of the regular order of the agenda and go to item number 17.
Item number 17 is from the Department of Planning and Development.
It's a substitute ordinance authorizing the execution of an intergovernmental agreement with the Chicago Housing Authority to provide tax increment financing funds for the Abla Brooks Home Infrastructure and Flood Mitigation Improvement Project,
located at 1300 through 1400 West 13th Street, 1300 through 1400 West 14th Street, and 1300 through 1400 West Hastings Street.
In the 28th Ward, in an amount not to exceed $12 million in TIF.
There's a substitute ordinance, which is prepared and sent electronically to everyone.
Is there a motion to accept the substitute?
So moved by Alderman Laspata.
All those in favor signify by saying aye.
I oppose.
In the opinion of the chair, the ayes have it.
And the substitute is before us and will be presented to us by Jeff Cohen from the Department of Planning and Development.
Thank you, Mr. Cohen.
Good afternoon, Chair Dowell and members of the Finance Committee.
For the record, my name is Jeffrey Cohen, Managing Deputy Commissioner in the Department of Planning and Development.
I'm here today to request your approval of an intergovernmental agreement between the city and the Chicago Housing Authority to provide tax increment financing for sewer and water infrastructure improvements to mitigate flooding,
and streetscape and roadway improvements to enhance accessibility and deteriorated conditions, all as part of the broader rehabilitation of ABLE homes.
The project is generally bounded by 1300 to 1400 West 13th Street, West 14th Street, and West Hastings Street.
It is located within the Roosevelt Racine TIF District, 98% of which is situated in the 28th Ward, represented by Chair Jason Irvin, who is in support of the project.
Showed here is an aerial view of the ABLE homes to provide context, provide additional neighborhood context.
ABLE is a historic CHA public housing site and is an acronym for the four distinct public housing developments that made up the larger site,
including Grace Abbott Homes, Robert Brooks Homes, Loomis Quartz, and Jane Adams Homes.
The full scope of the ABLE rehabilitation has been broken down into eight phases and includes renovations of 44 buildings, housing in total of 330 units,
and community plaza, including 11 parking lots and a community center.
The funding request for the current project is needed in order to improve infrastructure to complete the parking lots and community plaza before additional unit rehabilitation phases commence.
Shown here is a representative example of the current streetscape, and here is a closer aerial of where improvements will be made along West Hastings and West 13th Street.
The requesting agency for this authorization is the Chicago Housing Authority for their primary purposes to upgrade and replace storm sanitary water and water infrastructure
and provide parking upgrades with permeable barriers and walkways.
The current request is for $6 million and is in addition to a previously approved DRR request of $6 million.
The project is anticipated to start in September of 2026 and take 12 months to complete.
The primary source of funds and uses for the improvements will be $12 million funded via the Roosevelt Racine TIF District,
with CHA contributing funds for related soft costs.
The general scope is to replace the aging site's sewer and water infrastructure, which includes storm sanitary sewers and water supply lines,
and meet COC stormwater requirements.
This also includes ADA accessibility improvements.
Thank you.
I don't know.
for the entire campus and includes permeable favors in the parking lots and upgrades to the
walkway. With these improvements, flooding will be eliminated in the housing and parking complex,
and ADA and pedestrian access will be approved. The replacement of the water supply lines will
ensure the residents are not exposed to potential lead issues of the legacy infrastructure.
DPD is requesting your favorable consideration of this amendment. I'm also joined by Leonard
Langston, Interim Chief Property Officer with Chicago Housing Authority, and we're happy to
answer any questions the committee may have. Thank you, Mr. Cohen. Any questions from members
of the committee on this? Alderman Lopez. Good afternoon, Chairman, and good afternoon,
members of the committee. I have a question with regards to the substitute exhibit that was provided
to us with regards to pages 16, 15, and 14, Exhibit 4 of that, which provides the line item description
and costs of all the items that are going to be addressed. How is that determined, and who's doing
that work? I'll defer to CHA to answer that. Good afternoon, everyone, and thank you, Alderman,
for that question. Could you identify yourself? We know who you are. Yes, ma'am. Leonard Langston,
Chief Property Officer from the Chicago Housing Authority. Alderman, we've hired Millhouse Consulting.
They have been the architect on this job. They've assessed and identified and provided cost estimates
for all the work that needs to be completed. CHA, we're also in the final stages of our procurement
process, and for who's doing the work, we'll be able to share that information once our board takes
action in November. Okay. Thank you. Thank you, Alderman Lopez. Alderman Irvin.
Thank you, Madam Chair. As Mr. Langston has stated, this is a part of a multi-phased approach at Brooks
Homes, and for the record, I do not believe that people, if you've been to Brooks Homes and seen the
conditions in Brooks Homes, this is long overdue and much needed. The parking lots over there are
still flooded. This is a critical portion of the infrastructure that needs to be corrected as part of
the redevelopment of the Brooks Homes, which is, I think, about a $45 million overall development that
was partially funded through some other sources. But this relates to the infrastructure, not only on the
streets, but also for the green space in that area. So look for favorable consideration from the
committee. Thank you, Alderman Irvin. Is there a motion? I don't see any other questions from members
of the committee. Do you have a question? Move to pass by Alderman Wagesback. All those in favor,
signify by saying aye. Opposed? In the opinion of the Chair, the ayes have it, and the do pass
recommendation will be reported out at the next City Council meeting. Thank you, Mr. Cohen. We'll now
go back to the regular order of the agenda, item number four. We will hear item number four and
five together, but we'll vote on them separately. Item number four is an ordinance authorizing the
issuance of multifamily program funds to TCB Humboldt 4 LLC for the mixed-use development 4% project at
1417 North Tallman Avenue, 2620 West Hurst Street in the 26th Ward, and an amount not to exceed
$6,769,454 in multifamily money, and $32,860,59 of HED bonds. And item number five, an ordinance
authorizing the issuance authorizing the issuance of multifamily program funds to TCB Humboldt 9 LLC for the
mixed-use development 9% project at 1417 North Tallman Avenue and 2620 West Hurst Street in the 26th Ward,
in an amount not to exceed $1,826,242 in multifamily funds, and $2,830,405 in HED bonds. We're joined by Mark Daniels and Joe Lewis from the Department of Housing to explain this project.
Mr. Daniels.
Thank you, Chairwoman Dowell and members of the committee. For the record, my name is Mark Daniels, a financial planning analyst with the Department of Housing.
Today, I'm joined by Joseph Lewis, Deputy Commissioner at the Department of Housing, as well as representatives from the Community Builders, Chicago Housing Authority, and the Puerto Rican Cultural Center, who will be available to answer questions.
Today, I am presenting Humboldt Village, formerly known as Teacher's Village. This transaction will convert the vacant former Von Humboldt Elementary School into 103 affordable rental apartments, together with community programming and office space.
The requested actions presented today show that Humboldt Village is the redevelopment of a single building. However, it's being structured as two coordinated transactions using 4% and 9% low-income housing tax credits.
Each component will have financing structures and will close concurrently, so accordingly, the requested approvals are presented separately.
For the 4% project, the funding request entails a multifamily loan of up to $32,860,059, anticipated to be sourced from HED bond proceeds.
A separate multifamily loan of up to $6,769,454, anticipated to be sourced from home funds. Authorization to issue up to $22 million in multifamily housing tax-exempt revenue bonds, the use of which will qualify the 4% component for low-income housing tax credits expected to generate approximately $27.9 million in equity.
And for the 9% component project, we are requesting a multifamily loan of up to $2,830,405, anticipated to be sourced from HED bond proceeds, and a separate multifamily loan of up to $1,826,242, anticipated to be sourced from home.
These are the proposed authorization amounts. The final city loans will reflect the financing needed at closing, including reductions resulting from DOH's ongoing review.
The property is located at 1417 North Tallman Avenue and 2620 West Hirsch Street in the 26th Ward, represented by elder person Jesse Fuentes, who strongly supports the project.
The site is located in the West Town Community Area near Humboldt Park and within the city's West Planning Region.
This project has a lengthy development history, and I want to briefly explain how we arrived to the structure that we bring before you today.
The former Von Humboldt school closed in 2013. Illinois Facilities Fund, also known as IFF, subsequently acquired the property through CPS's competitive disposition process.
RBH Group, a New Jersey-based real estate developer, proposed Teacher's Village through the city's 2017 funding round as a mixed-income redevelopment of the school property.
RBH acquired the property from IFF in February 2019 and refinanced this holding in December 2020.
RBH worked with Alder La Spada and the department to advance that mixed-income proposal.
Over several years, the team completed substantial entitlement, environmental design, and pre-development work.
Construction pricing challenges required value engineering and rebidding in 2022, followed by drawing revisions in 2023 to address code changes.
Following war boundary changes, which shifted the site from the first ward to the 26th ward, discussions with Alder Flentes and DOH, the RBH Group,
began modeling a fully affordable redevelopment in the fall of 2023.
CHA approved support for 61 project-based vouchers in 2024, and throughout 2024, the team continued revising construction pricing and financing assumptions.
In 2025, the community builders, also known as TCB, became the lead developer.
Under the proposed transaction, RBH will exit at closing, and TCB will complete and operate the development.
Through an approximately $95 million project, the community builders now proposes to rehabilitate the school into a 103-unit affordable apartment community,
serving households with incomes ranging from 30 to 80 percent of area median income, known as Humboldt Village.
The development includes studios, up to three-bedroom apartments, with 27 family-sized apartments and 61 apartments supported by CHA vouchers.
The approximately 152,000-square-foot building will also accommodate office and programming space for the Puerto Rican Cultural Center, along with on-site property management.
Resident amenities include a fitness area, lounge, and party room, as well as a dog wash.
Outdoor improvements.
include landscaped space, a playground, and 53 surface parking spaces.
Closing is anticipated in December 2026, with construction completion expected in June 2028.
To give you a brief overview of the neighborhood context,
the property is located in Westtown near the boundary of the Humboldt Park community area
and approximately three blocks east of Humboldt Park.
Residents will have access to the park's recreational facilities and open space
and nearby corridors, which include Division Street, Western Avenue, California Avenue, and North Avenue,
providing access to shopping neighborhood services as well as bus transit.
This slide shows an additional picture of the existing school property
with information presented and recapped in the adjacent table.
Once construction is complete and the building is placed into service,
the development will retain the school's exterior character as shown in this image
while adapting the interior for apartments, resident amenities, and community programming.
The community builders will lead the development and manage the completed property.
TCB is a national nonprofit developer, owner, and manager of affordable and mixed-income housing
with more than 60 years of experience.
TCB today owns and manages more than 14,000 apartments nationwide.
TCB also has substantial experience delivering complex mixed-income developments
in partnership with the Department of Housing, the CHA, and other public agencies.
Its Chicago portfolio includes Oakwood Shores,
the long-term redevelopment of the former Madden Wells public housing site,
Southbridge, the redevelopment of the former Harold Icke's homes
into a mixed-income, mixed-use community planned for more than 800 homes,
and the canvas at Leland Plaza, a mixed-use, equitable, transit-oriented development
in Lincoln Square that provides 63 affordable apartments,
including 16 supported by CHA rental assistance, along with commercial space.
Whiten Company is the architect, and Leopardo Construction is the general contractor.
The Bank of America will provide construction financing and tax credit equity,
and Stiefel will serve as the bond underwriter.
The total development costs for this project are estimated at approximately $94.97 million.
As previously mentioned, the project is structured as a 4% and 9% low-income housing tax credit
twinning transaction to maximize available equity.
Two separate entities are controlled by the community builders
to carry out the transactions concurrently as one coordinated redevelopment.
The city will serve as conduit issuer for up to $22 million in tax-exempt bonds,
cash collateralized through Bank of America's construction financing.
This structure supports access to the 4% low-income housing tax credit.
The bonds and related bank-funded construction loan provide financing during construction
and will be repaid following the conclusion of construction.
Tax credit equity will provide approximately $48.4 million, covering approximately 51% of total
development costs.
TCB is bringing favorable equity pricing to the project through Bank of America,
approximately $0.90 per credit for the 4% component and $0.86 per credit for the 9%,
attracting substantial private investment.
While the $100 GP contribution in each component is a nominal capital contribution,
TCB's responsibilities as sponsor extend beyond that amount, which includes arranging the limited
partners' tax credit equity investment and providing a construction completion guarantee
to support delivery of the projects.
The department will provide approximately $44.3 million in multifamily loans across the two components.
The budget also includes approximately $2.3 million in projected interest earned on funds
held in the bond collateral account, which helps offset financing costs shown on this slide as
collateral earnings.
The combined city loan investment is equivalent to approximately $14,300 per apartment per year
over an assumed 30-year affordability period.
On the use side, approximately $60 million, or 63% of the budget, is for construction, including
contingency and non-residential space.
Approximately $16.6 million is for acquisition, including pre-development interest and carrying costs.
The remainder covers professional services, financing, and other construction-related costs,
a $2.5 million developer fee, and approximately $1.3 million in reserves.
Total development cost is approximately $922,000 per unit.
Several factors contribute to that cost.
First, this is the conversion of a school building that is more than 100 years old.
The building was constructed in three phases using different construction methods, adding
complexity to the rehabilitation.
Second, the existing hallways, stairwells, and gymnasium and auditorium result in a substantial
amount of space outside of the apartments.
Those areas require rehabilitation, even though they do not generate residential rental income.
Third, the project's expended development period generated significant pre-development interest
and carrying costs, which are included in the acquisition category shown on this slide.
The department has been reviewing those costs and negotiating reductions where possible
before closing.
Any resulting savings will be incorporated into the final budget and used to reduce the city
funding required.
This slide provides a brief overview of the apartment and affordability mix.
The development will include 17 studios, 59 one-bedroom apartments, 17 two-bedrooms, and
10 three-bedrooms.
All 103 apartments will be income-restricted, including 17 apartments for households earning up to
30% AMI, 36 units for up to 50% AMI, 36 units for up to 60% AMI, and 14 apartments for up to
80% AMI.
The CHA will support 61 apartments through its Restore-Rebuild Project-Based Voucher Program.
These vouchers will support a portion of the one-bedroom apartments and all two- and three-bedroom
units.
For the voucher-supported apartments, the rents shown include the subsidy, and residents' payments
will be no more than 30% of their income.
These charts show the separate ownership structures for the two tax credit components, TCB Humboldt 4
LLC and TCB Humboldt 9 LLC.
Each entity will have a TCB-controlled managing member and a tax credit investor member.
The separate entities accommodate the two financing structures.
TCB will oversee the development and management of the building as a coordinated undertaking.
Now moving to the public benefits, as West Town and Humboldt Park experience economic change,
maintaining affordable housing options remains a priority for these areas.
According to DePaul's Institute for Housing Studies, using 2020 to 2024 census estimates,
approximately 32% of renter households in West Town and 58% in Humboldt Park spend more than
30% of their income on housing.
Humboldt Village will help address that need by creating 103 affordable homes, including
61 voucher-supported apartments and 27 two- and three-bedroom apartments suitable for larger
households.
The development will also return a school that has been vacant for more than a decade to
productive use.
The Puerto Rican Cultural Center plans to provide after-school programming and adult education
for residents and the surrounding community.
The project is expected to generate approximately 75 construction jobs and five permanent full-time
jobs.
The development team will comply with the applicable city MBE and WBE participation, Chicago
residency, and prevailing wage requirements.
To conclude, the Department of Housing requests approval of the financing authorization shown here
for both components of Humboldt Village, including the authorization of up to a total of $44,286,166,000,
in city loans across the 4% and 9% components, and approval to issue up to $22 million in
multifamily housing tax-exempt revenue bonds supporting the 4% component.
This concludes the presentation.
Representatives from TCB, CHA, and the Puerto Rican Cultural Center are available to answer
questions.
Thank you.
All right.
Thank you, Mr. Daniels.
Alderman Fuentes is asked to open the discussion, and following Alderman Fuentes, Alderman Beal.
Thank you, Chairwoman.
And, you know, thank you for putting this item on the agenda today for consideration.
I have been involved with the Teacher's Village project for over 12 years, when Von Humboldt Elementary
and Roque du Prey were schools that were up for closure, and many families in the 26th Ward were
concerned about the community boundaries that their children would have to cross with schools
not being in this portion of Westtown.
Then we had talked to Alderman Joe Moreno, who had had many conversations with RBH development
around what this development would look like.
You know, we had several town halls that would pack that auditorium with over 200 residents
concerned about what would become of the building that once held young people and provided them
quality education in our community.
Daniel Espada had assumed the seat of the first ward and took on...
the project and got it to a place where it was feasible. I inherited the project after the remap
in which this portion of West Town now resides in the 26th Ward. I inherited a 50% affordable
housing and 50% market deal. After many community meetings, residents were extremely concerned
around the rising rents in the 26th Ward. You know, the average two-bedroom is almost $3,000
now in my neck of the woods. And folks were concerned about what the rental increases would
look like with a half market deal. And so with community support, we had pushed for this to
become a 100% affordable deal, giving working families in the 26th Ward an opportunity to stay
in a community that they call home. Now, this particular project has been in the pipeline for
over 10 years, making it extremely expensive. And I know folks are going to raise concerns today
about the financial stack and how much money per unit this costs. And I'd be the first to agree,
it's super expensive. But this project can't afford to stay in the pipeline any longer. And it also
cannot afford to remain abandoned. This building right now is TikTok viral. If you go on TikTok,
you'll find individuals who are breaking into this building, stealing copper fixtures, and having
full-on gatherings and parties in this building, we have to bring this building back to use. And we have
to break ground as soon as possible so that we can restore safety for the residents in and around
this project. Affordable housing, without a doubt, has been my number one priority as an older person.
I represent a ward that is rapidly gentrifying. People every single day are putting up their homes for
sale, or they're moving out of Westtown and Humboldt because they just cannot absorb the increases. This
project allows for people to stay in this community to continue to call it home. And I ask for my colleagues'
favorable support. Thank you, Chairwoman.
Thank you, Alderman Fuentes. Before we go to the questions here, Alderman Mosley, Alderman Rodriguez-Sanchez,
and Alderman Martin have requested to participate remotely under Rule 59. Can I have a motion to allow them
to participate? Alderman Cozada, who's making the 59 motions today, has given us a motion to allow these
Aldermen to participate remotely. All those in favor signify by saying aye. Aye. Opposed. In the opinion of
the Chair, the ayes have it, and those Aldermen are in the meeting. The next question is Alderman Beale,
followed by Vice Chair Conway. Thank you, Madam Chairman, members of the committee.
Let me first start by saying that, you know, we have a responsibility to move this city forward.
We all have developments in our wards that, you know, some of us may like, some of us don't like,
but we support each other. And I hope that, you know, people
in this body realize that, you know,
sometimes we have to support each other in spite of
because what's best for my ward, you may not agree with.
What's best for your ward, I may not agree with. But, you know,
that's your ward. I get that.
However, the only questions I have, and I'm going to support your project
because I think it's a good project, but
$922,000 per unit.
Let me just explain what that could do
for wards like mine
where we have so many vacant lots.
We can triple the amount of units
for this amount of money.
We can build single family and two flats.
I can build 320 units
for this amount of money.
That is ridiculous.
But it's the, all the hidden fees
that go into these projects
that we have to get a handle on.
Now, I built some units,
some artist housing in my ward
a couple of years ago.
And we didn't pay $400,000 per unit
on that particular project.
And that building is absolutely gorgeous.
What is causing these properties
to go to $922,000
is our question.
This project and the project before this one
was $890,000 per unit.
Are we paying developer fees that much?
Are we paying legal fees that much?
Are architect fees?
I mean, all these fees on top of fees.
You know, if the city decided
to just go into business
of building homes,
we can make a department
for this kind of money.
We can have a department
to construct homes
cheaper and faster
than it takes
to get this stuff done.
So I just wanted to go on record
that, you know, again,
I support the project,
you know, and hopefully
people understand that,
you know,
it's not a one-way street.
This street goes two ways.
So when we have projects up,
when we have items up
and we need support,
we're going to be looking for it.
That's all I have, Madam Chairman.
Thank you.
Thank you, Alderman Bill.
Well, I agree with the point
about supporting one another
when projects come to us.
To answer your question
on the reason for the 900,000,
I will venture to guess,
and I'm going to ask Mr. Lewis
to give more detail,
that this is a school
and it's really hard to rehab
for housing, but...
Yes, thanks for that, Chair Dowell.
And just for the record,
Joe Lewis from the City's
Department of Housing
to supplement that comment
from Chair Dowell.
The cost is primarily driven
by the complexity
of converting a school
that's 130 years old
and including all the
attendant rehabilitation
of substantial
non-residential space.
And that is also compounded
by the, in this instance,
by the carrying costs
accumulated during the project's
extended pre-development period.
It is a sizable amount
on a per-unit basis,
but the school is
a significant facility
in terms of comprising
the better part of a city block
with over 100,000 square feet
in total building area.
It would be a large-scale project
no matter which way you cut it,
whether it were affordable housing
or market rate
to redevelop this property.
But yes, just to recap that,
that complexity of building
something that was not
purposely built
as a residential use
and converting it
to a residential use
when it's such an old facility
and have, you know,
taking that plus the fact
that the extended
pre-development period
has added some additional
carrying costs
as the seller has maintained
the property
over the past several years.
It presents unique challenges
as reflected
in the per-unit cost
for this one
compared to some of our
other new construction projects.
Alderman Beal.
Thank you.
I'm glad you hit on that.
Knowing that we're looking
at 61 units
that are going to be hood,
correct?
61 Chicago Housing Authority
supported units, yes.
How much money
are they putting in this?
The Chicago Housing Authority
is not directly investing
direct cash capital
into the project.
That is typically reserved
for CHA redevelopment projects,
such as the Madden Wells
redevelopment
or the Ickes Homes
redevelopment
at Southbridge,
where the CHA owns the land,
has previously demolished
property there,
and needs to reconstruct
new housing
to replace that
demolished property.
Did we ask them for money?
We have not asked
the Chicago Housing Authority
to put capital funds
into this project,
knowing that those
capital funds
are usually applied
to their own
redevelopment projects.
Vice Chair Conway?
Well, I think an additional
part of the answer
on the expense
of the unit
would have been
all of the common areas
that are being rehabilitated,
like the gym and whatnot,
and those are being
separated out
among the units.
But can you go back
to slide,
not that even still
it's an astronomical number,
but can you go back
to slide 10, please?
So the,
starting at the top
on the sources,
the $48 million,
is that the $0.86 on the dollar
the developer negotiator,
or is that the $0.00 on the dollar
that they're getting?
So, Joe Lewis
from the Department of Housing,
the $48,412,000,
approximately $48,412,600,
about top-line amount
on the sources,
reflects the equity
that the developer
has brought to the table,
reflects,
earlier in the presentation,
Mr. Daniels mentioned
$0.90 pricing
and $0.86 pricing.
The higher pricing
applies to the 4% project
on that left column,
equity figure,
and the 80-something figure
applies to the 9% project.
So, yes,
the...
The short answer is the $48,412,000, approximately, is the equity that the developer is bringing to the table through a limited partner investor.
So the blended 9086 rate.
That's right, yes.
In other words, that's a reflection of like a blended pay-in rate.
We call it a pay-in rate, that pricing, across the two deal components.
Now, the next two items, well, I'll start with the home loan.
Is that something that will be on the balance sheet of the city or just with the development?
So the city receives allocations of home funds from HUD every year, approximately $15 million by formula the city receives every year.
When we are authorized to make loans and grants to support rental development projects from that allocation,
in this instance, we are looking to provide that $6,769,000 amount as a loan to the project owner,
who would then carry that amount as a liability on their balance sheet.
On their balance, okay.
And our housing and economic development, I know that's from our bond, but are they assuming that debt,
or is that a grant from us from the loan fund?
It would be a loan from us from those bond proceeds, and similar to the home funding structure,
it would be provided in the form, that investment would be provided in the form of a loan in favor of the city
that's carried on the development's balance sheet as a liability.
Understood.
So the approximately, I mean, I'm doing my head.
So the approximately $44 million of debt the project is going to take,
noting that all 103 units are low income, is it going to be able to support that debt load?
Yes.
So as the permanent sources of funding are represented here, the city home and HED loans would be structured
with repayment terms that would call for cash flow-based repayment to provide for the circumstances
you just described, Alderman, to ensure that debt service requirements on the city loans,
knowing that margins, operating margins on affordable housing projects are generally fairly thin,
that the debt service will not be a liability that can go, that will, you know, negatively impact the project.
The city will have provisions to share an upside.
Yeah.
But if there is minimal upside, given the tight margins that often exist for housing projects,
especially projects that serve a range of income tiers, such as this one,
there won't be a, you know, unfunded mandate, if you will.
Well, that's kind of what I was getting at, knowing it's 100.
And do, strike that, and do, well, I will merely say $922,000 a lot per unit,
but noting that a lot of it is going on the debt of the, is going on the books of the developer,
and a lot of it is tax credits, I think is something we have to, we have to also help make that number easier to stomach.
And I say that as somebody that has asked this body to approve some pretty expensive units on LaSalle Street as well.
So, and it, of course, looks like a beautiful building that has a lot of ancillary community benefits as well.
So, big number, Jesse, but I want to commend you on this project,
and it looks like it's going to be a great one when it's finished.
So, thank, and thank you, thank you, sir, for letting me really dig deep into this.
Thank you, Vice Chair Conway.
On the reserves, it seems a little low for building of this complication.
Could you comment on that?
Reserves requirements are usually set in partnership with the tax credit investor.
The tax credit investor actually provides the funds that capitalize the reserves at construction completion.
I would turn to representatives from TCB to speak more about the terms of the syndication provided in terms of the, you know,
reserve requirements there, but it is usually something that we take, you know,
we certainly take into account the investors' requirements when sizing the reserves' capitalization in these projects.
Hello.
Would you speak to that?
Sure.
It just seems to me that the reserve number is low for this kind of building,
given the fact that it's an old school and you've got common areas.
Yeah.
For the record, my name is Charlie Johnson.
I'm with the Community Builders.
That's the only thing anyone has said is a low cost on this project so far, so thank you.
The reserves are, you're right, it is an old building.
Part of the cost of the, part of the reason the cost is so high is because we're putting a lot of high quality materials in there.
It's 15 to 20 years before we can go in and do any sort of rehab, just based on the income that we're going to bring in.
But we do have, I believe it's $450 a unit in replacement reserves here.
The other part of those reserves are operating expenses and tax reserve and insurance reserves.
As Joe said, those need to be capitalized in the beginning, and then they're replaced every year in the OPEX as well.
All of the reserves have, are paid annually, are replaced annually in our operating expenses.
All right.
Thank you.
Alderman Rodriguez, followed by Alderman Riley, followed by Alderman Vasquez.
Oh, I'm sorry.
Alderman Rodriguez, followed by Alderman Moore, followed by Alderman Riley.
Thank you, Madam Chair.
I'm assuming you can hear me okay?
Yes, we can.
Yeah, I'll try to be quick since I'm online.
Just one question.
I think it was Joe who mentioned a per unit cost of $14,000 per unit over 30 years.
Is that accurate?
And could you explain that a little bit more?
Sure.
Joe Lewis from the City's Department of Housing, the figure that the Alderman reference relates to the approximate cost per year,
the approximate city investment, how it equates to, on an annual basis, to the 30-year affordability period.
In other words, there are 30 years, minimally 30 years of required affordability here.
If we think about the amount of the city's cash investment as on a per apartment per year over that 30-year period,
how much it's basically taking to, you know, secure that affordability for 30 years, it's $14,300 per apartment.
Okay, I got it.
Thank you.
And that helps me understand this a lot more, and maybe for some, maybe some make it a little bit better.
Just another question.
What is the role of the Puerto Rican Cultural Center in this endeavor?
Alderman Fuentes?
Yeah, when this project was first initiated by RBH Development, the concern was that community would lose access to the space from when it was a school.
So the Puerto Rican Cultural Center had become the community organization that was selected to provide the type of resources that parents were receiving when it was still in the jurisdiction of CPS.
So the Puerto Rican Cultural Center would utilize the community space to provide programming for young people, particularly after-school programming.
It can both benefit families.
They may move into the building, but it would benefit kids in the entire community.
You do not have to reside in the building to benefit from that type of programming.
And then there would be programming for parents.
It can include things like bilingual education, mental health services, things of that nature.
And, again, that is not restricted to the families that live in the building.
It would be provided community-wide.
And so that was to keep intact some of the services that we had seen Vaughn Humboldt Elementary and Roque Dupre provide our families when it was a school.
Well, generally speaking, Madam Chair, I'd just like to say that historically housing in general has been put on the other side of the tracks and disinvested in for decades, bled to death in many ways.
And I think that this type of investment, the way it's been thought through, 100% affordable, it's gone through various administrations, we've got a school that's closed.
And to be so comprehensive in thinking about how you're going to place a community anchor inside of the space as well as invest long-term, make this 100% affordable, I think this is very well done.
I, as well, would sign up for the committee to figure out how to get these costs down in some way.
But regardless of that, we have before us...
a rather productive development, taking a community eyesore, a closed school, a space
of hurt, and created a space of chance, and done so very comprehensively.
I've got to give all credit to those who have brought this to this point, particularly
my colleague from the 26th Ward, Alderwoman Frontis.
I am looking forward to supporting this, and I'd like to move to pass at the appropriate
time, Madam Chair.
I'd be honored to do so.
Thank you.
Thank you.
Alderman Rodriguez.
We've got a couple of other questions, and I will acknowledge your motion for due pass.
Alderman Riley.
Thank you, Madam Chair.
And most of my questions have already been asked by other colleagues, and I don't think
it's fair to pile on this project regarding the average unit cost to deliver an affordable
unit in Chicago.
I think that's a problem across the board, regardless of what geography we're looking
at.
So I'm not going to hold that against my colleague.
And I also know how important this project is to my colleague to the right, especially
the fact that this is a building that's sat vacant for nearly a decade.
And I understand the public safety issues that that brings to a neighborhood.
So this really does have the potential to be a win-win.
Longer-term goal, we need to get these ridiculous unit costs under control if we're ever, ever
going to make a dent in our affordable housing crisis in Chicago.
So I want to compliment my colleague for bringing this project forward, and I do look forward
to supporting it.
I'll join Alderman Rodriguez in making a motion due pass.
Thank you, Madam Chair.
Thank you, Alderman.
And I just want to say that, you know, many of us have raised this question about the
per-unit costs, and we ought to think about in the budget process, putting in the management
ordinance, a requirement for a committee to do this work that no one seems to be able to
do as part of our deliberations.
Thank you very much, Madam Chair.
Yeah, I just wanted to also voice my support for the project.
I think I really appreciate some of the questions my colleagues are raising up as to how this
all got put together, how much is being put from the different fund sources.
And I think there are plenty of opportunities across the city to similarly do the same, but
I want to give credit to Alderperson Fuentes, because it is also the ability to work with
the departments to identify and kind of carry that through, that I think it would be beneficial
if there's time, and Lord knows we can't always find time, to meet separately and kind of learn
some tips on how to have those conversations with departments and where those funds are cobbled
together in a way that might help our colleagues similarly put projects like this together.
Because I think there are plenty of schools across the city that, if they're not going
to become something else, could become something like this.
And so I just think it's very commendable and wanted to just voice my support.
Thank you, Sherwin.
All right.
Thank you.
Seeing that there are no more questions.
Oh, Alderman Moore, did I forget you?
I'm so sorry.
I love you.
I love you too.
No, just following the line of questioning that Alderman Conway was on, first of all,
when is this project expected to be completed?
Estimated construction completion is in the middle of 2028.
2028?
Yeah, around summertime, 2028.
Okay, so from the financing from the city that's a loan, at what point do they start paying
that back?
Loan repayments usually are something we would assess after the building is constructed and
operational, because the building would need to generate any operating income before we could
consider, you know, approaching the, we would typically build the building, it would be placed
in service, rented up, and generating income before we assessed any payments on any city loans.
So there's no, there's not even a predicted, like?
I would say middle of 2029 is the earliest, because the property would have to, you know,
finished construction will take several months to lease off after that, all 103 units.
And, yeah, I would say mid-2029 is the earliest forecast we could think about turning to any
sort of debt service.
Chairman, and maybe this is something to be provided through the chair, especially if I'm
looking at over the past, let's just say, 10 years, and I don't know if we do that, do
we keep, like, records of how much loan money have been paid back from projects?
Because I'm trying to see, I know we passed a bond, right?
But then if we're getting money back, I just want to make sure are we recirculating that
money.
So do we keep any records of that over the past 10 years?
Like, based on these projects that we've done, we've got an X amount of money back that we've
reinvested or something like that?
Sure.
So the city's housing department and finance departments coordinate on loan income that
has come in on a quarterly basis, as well as on an annualized basis when it comes time
to think about our, you know, our budget process for the Department of Housing.
Income that we receive for historical loan payments can be reused to fund new projects.
Typically, it's not, you know, that we can get a check on a Monday and then on a Wednesday
lend the money back out.
It might be the next year that we lend it back out because of, you know, the budget process
for that money.
But we do keep ledgers of all of our home and CDBG loans in particular.
Those represent the vast majority of the city's affordable rental housing loan portfolio.
We systematically track payments received and, you know, repayment in full when applicable
for those loans as well.
And so on these projects, you just talked about some, I guess, some additional funding.
So there's an interest on this, or is this not them paying the principal loan back?
There's an interest on the loan that the city provides?
It depends on the circumstances.
Sometimes we will attach an interest rate to a city loan, especially if it's a loan that's
being restructured.
So it's an investment we made historically, and the developer, for example, wants to refinance
with their bank-held debt.
In those cases, they have to seek our consent as another lender on the property for refinancing.
Chairman, I don't know if that's being reported out anywhere.
Is that something we can look at just over the years, like what's being repaid and what's
being recycled?
Because I never even thought to ask that or even, you know, I would just, you know.
We will look into that and give you a through-the-chair request answer, which we'll send to everyone.
Right.
Thank you, Chairman.
That's all.
Thank you.
Alderman Vasquez, did you go?
Okay.
So I want to break it up.
Alderman Rodriguez and Alderman Riley wanted to make motions for this.
So Alderman Rodriguez will motion for item number four, recommending do pass.
All those in favor signify by saying aye.
Opposed.
In the opinion of the chair, the ayes have it, and the do pass recommendation will be reported
out at the next city council meeting.
And Alderman Riley makes a motion for approval of item number five.
All those in favor of the motion signify by saying aye.
Opposed.
In the opinion of the chair, the ayes have it, and the do pass recommendation will be reported
out at the next meeting.
Congratulations, Alderman Fuentes.
Item number six from the Department of Housing.
Thank you very much.
Thank you.
From the Department of Housing is a substitute ordinance amending the original ordinance by
replacing Chicago Neighborhood with Leslie J. Raffel Foundation as the developer and amending
the original redevelopment agreement to include revisions to the project at 30 North LaSalle
Street in the 34th Ward.
There is a substitute ordinance, which has been prepared and sent electronically to everyone.
Alderman Lee moves to pass on accepting the substitute.
All those in favor signify by saying aye.
Opposed.
In the opinion of the chair, the ayes have it, and the substitute is in front of the committee
right now and will be explained by Dina Wayne from the Department of Housing.
Thank you, Chair Dahl.
So this project is one that was brought before Finance Committee January 21st, 2026, and the
project was approved.
It is the 30 North LaSalle Rehabilitation, which is obviously one of the LaSalle Street
projects that we've been working on for a few years now.
The reason this is coming back before you is because after the project was passed in last
January, the Developers Tax Council advised them that it would be best to have a 501c non-profit
developer to receive the TIF rather than just simply another non-profit.
So you saw a project like this about a month ago when 135 South LaSalle came before you for the same reason.
Both of them had previously had the Downtown Chicago Neighborhood Council, NFP, as their nonprofit.
And now each of them have chosen different new nonprofits.
And in this case, like the chair said, it's Leslie J. Raphael Corporation.
So that's the only change to the ordinance.
It's replacing that.
We are changing the ARO unit mix.
They had a weighted average of 60 percent AMI before, which is what's required.
But they didn't have 70 percent units, which our ARO team wanted.
So that's a change to the redevelopment agreement.
But again, the reason the ordinance is before you is to change the nonprofit partner.
I think otherwise, this project is probably fairly well known.
I'm happy to go into more details.
And otherwise, that's the presentation.
Thank you.
Can you tell us a little bit about the new partner?
Yeah.
The new nonprofit is a local nonprofit.
And let me see if I have here their annual.
It was founded in 1999.
It's based in Grunee.
It's a private foundation with assets of $9.1 million.
Their grant-making focus generally is in education, philanthropy, volunteerism, and grant-making, arts, culture, and humanities.
And they funded projects in New York, Indiana, and Illinois.
And their typical awards for this foundation are anywhere from $500 to $305,000, give or take.
Okay, thank you.
Any questions from members of the committee?
Vice Chair Conway, do you have anything you want to add?
No, no, no.
This is a pretty perfunctory change.
I ask you all to support it.
All right.
Move to pass by Alderman Riley.
All those in favor, signify by saying aye.
All those opposed, in the opinion of the chair, the ayes have it.
And the do pass recommendation will be reported out at the next city council meeting.
I am taking a chairman's prerogative and going out of order to item number 16,
which is from the Department of Planning and Development,
an ordinance amending the land sale ordinance and approving the redevelopment agreement
with Deeply Rooted Productions, Inc., to provide housing and economic development bond funds
for the development of Deeply Rooted Dance Center project at 5339 through 5345 South State Street
in the Third Ward in an amount not to exceed $10,500,000.
Michael Carey will be giving the presentation from the Department of Planning and Development.
Thank you, Chairwoman.
Good afternoon, Chairwoman Dahl and esteemed members of the Committee on Finance.
For the record, my name is Michael Carey, Financial Planning Analyst with the Department of Planning
and Development's Bureau of Economic Development.
I'm joined today by the Bureau's Managing Deputy Commissioner, Jeffrey Cohen,
Assistant Commissioner of Underwriting, Kyle Brandon.
We are also joined by members of Deeply Rooted Productions, Inc.
We are here today to request the Committee's favorable consideration of an ordinance authorizing the City of Chicago
to execute a redevelopment agreement with Deeply Rooted Productions, Inc.
for the use of up to $10.5 million in housing and economic development bond funding
to support the construction of their new permanent home, the Deeply Rooted Dance Center at 5339 through 5345 South State Street.
Deeply Rooted Productions is a cultural institution that has been operating in the city for 30 years.
The project site consists of city-owned vacant lots located at 5339 through 5345 South State Street
in the Washington Park Community Area, Southeast Planning Region, and the Third Ward represented by Chairwoman Dahl.
The Chair provided a letter of support for the project in June 2026.
City Council approved the ordinance to authorize the sale of the lots to Deeply Rooted in 2023.
Here is the immediate neighborhood surrounding the Deeply Rooted Dance Center site, highlighted in red.
To the west is the XS Tennis Complex, opened in 2018.
To the south is the Court Theater Production Company, the University of Chicago Fossil Lab, and the former Schultz Bakery Building.
To the east and north is residential.
The project site is located near multiple CTA bus routes and the red line that connects it to the rest of the city.
This bird's eye view looking northeast provides additional context to the project site consisting of two city-owned lots.
These lots have been owned by the city since 1990 and have been used as a storage lot.
The images here highlight the current condition of the site facing westward and southward.
These conditions reflect decades of non-utilization and highlight the need for redevelopment.
The developer and future occupant is Deeply Rooted Productions Incorporated, co-founded in 1996 by Kevin Iaga Jeff, Gary Abbott, Laverne Jeff, Diane Schober, and Linda Spriggs.
Deeply Rooted has reimagined and diversified the aesthetics of contemporary dance by uniting modern, classical, American, and African-American traditions in dance and storytelling for the past 30 years.
Deeply Rooted has performed in Chicago institutions including the Auditorium Theater, Harris Theater, Logan Center, Dance Center at Columbia College, and many more.
They have collaborated with partner dance companies such as Ballet Chicago, Joel Hall, and Forward Momentum Chicago.
The action under consideration will establish a wholly owned and permanent location for Deeply Rooted.
Deeply Rooted is currently based in and shares space and time with Ballet Chicago's facility located at 17 North State Street.
A new dedicated space will allow Deeply Rooted to expand its current offerings to the community, most notably its youth-centric programming, which is constrained and limited.
This new venue will provide a permanent home for Deeply Rooted Productions, allow them to grow their youth programs in a community where many of their students live, and vastly expand their impact into historically disinvested communities.
Since 2023, Makeda Creighton has served as executive director and is leading the development of the dance center for the production company.
Assisting Deeply Rooted with the development is Gilead Management, his owner's rep, Toro Construction is general contractor, and Johnson & Lee is architect.
Deeply Rooted proposes to construct a 33,270 square foot permanent facility featuring six dance studios, a performance venue, a rooftop garden, and an event space.
The center will serve as an international hub for professional black dance, arts education, and community-centered cultural programming for all ages.
The total project cost is $20.9 million, supported by $10.5 million in CDGL funding.
Construction is anticipated to begin in Q4 of 2026, with completion expected in Q1-2028.
The project budget is expected to be financed through several funding sources, including equity and private donations, new market tax credits, additional public subsidies, and the $10.5 million grant through the City's Large Community Development Grant Program.
These funds will support the $20.9 million budget for the construction of the new dance studio.
This slide shows the proposed site layout, illustrating placement of the building, outdoor areas, access points, and streetscape improvements with State Street to the east of the site and East 54th Street to the south.
This is the first rendering of the proposed exterior.
This shows deep design investments that will provide the neighborhood with a new architectural landmark dedicated to arts engagement.
There are plans for a rooftop patio, providing views of the north, west, and south sides of the city.
The interior design concept presented here highlights the unique flowing design of the wood paneled walls for the studio and program spaces along with the natural light.
Additional interior renderings illustrate flexible spaces for rehearsals, performances, and gatherings.
As part of the redevelopment agreement, city funds will be dispersed on a reimbursable basis at milestones of 30%, 60%, and 90%.
The final 10% will be subject to deeply rooted meeting all requirements of a certificate of completion, including compliance with typical construction, compliance goals for MWBE participation, city residency, and Illinois prevailing wage.
Deeply rooted will also be subject to a 10-year compliance period following the issuance of the certificate, where the developer will be held to a flip provision, along with operational and occupancy covenants.
Taking all of this into account, the public benefits created by this project will be felt immensely by the residents of the Washington Park community and the city.
This includes site reactivation of a long vacant city-owned parcels, critical investment in support of a cultural mainstay, and history.
historic institution in the city, expanded youth engagement in the arts, and needed community
space. This investment will not only support Deeply Rooted, who just celebrated their 30th
anniversary, but also its continued impact within the city for the next 30 years and beyond while
continuing the development of the State Street Corridor. For these reasons, the Department of
Planning and Development supports this project and respectfully requests the committee's
favorable consideration. I want to thank you all for your time today. Myself, DPD, and
Representatives from Deeply Rooted Productions, Incorporated are present and available for
questions. Thank you, Mr. Carey. Any questions from members of the? Seeing no questions. I am not
going to say anything. I would ask for my colleagues to support this, but I do see
Deeply Rooted here, and I just want you to say a few words. Thank you, Chairwoman Dowell. My name is
Makeda Creighton. I am the Executive Director of Deeply Rooted Productions, DBA Deeply Rooted Dance
Theater. And as a Chicago native, I understand all too well how hard it is for young children on the
South Side to get access to the arts. I had to travel all the way to the North Side to study dance.
And coming back to Chicago, working with this organization, I want to make sure that children
children on the South and West Side have access to arts in their community. This is why we find it
important at this juncture, 31 years of having a community-based organization that has been located
downtown to now come into the community that we serve. As much as we love our partnership with
Ballet Chicago, we have been growing over the years, and we find that access to studios when
Ballet Chicago does not use the studios is suboptimal for our clientele. Typically having to
have dance classes for kids from 5 p.m. to 11 p.m. at night is not optimal. And so in order to grow our
programming, we must have our own space now. And I think it's more important to have it in the
community where they live so that they understand and they see, even if they are not part of our
program, just walking past that building, they'll see the possibilities of what could be. It's also
not a space just for us. We think about other small organizations like ours who can't afford their
own space, who by being subtenants in our building will also be able to grow their programming.
Community Garden is our version of thinking about wellness as a whole. So we dance and we use our
bodies, but what do you put in your bodies? We wanted to contribute to the entire ecosystem
of Washington Park and the South Side, and we hope that you support this project.
Thank you. Okay, great. If you haven't seen a production of Deeply Rooted Dance Center,
I would encourage you to check out their next production. It is something to see and very
uplifting. Can I get a motion to do so moved by Alderman Beal? All those in favor of the motion
signify by saying aye. All those opposed? In the opinion of the chair, the ayes have it, and
the ordinance will report it out at the next city council meeting. Congratulations, Alderman Dowell.
All right. Going back to the regular order of agendas, and thank you, Mr. Carey. To the regular
order of the agenda, items seven, eight, and nine will be taken together. However, the committee
will vote on each of those items separately. Item number seven from the Department of Planning
and Development is an ordinance approving amendment number six to the redevelopment project and plan
plan for the Central West tax increment financing redevelopment project area in the 27th, 28th,
and 34th ward. And an ordinance designating, number eight is an ordinance designating the expanded
Central West TIF redevelopment project area pursuant to the Tax Increment Allocation Redevelopment
Act in those same wards. And number nine is an ordinance adopting the tax increment
allocation financing for amendment number six to the redevelopment plan for the Northwest
Industrial Redevelopment Project area in the 27th, 28th, and 34th ward. We are joined by Michael
Carey from the Department of Planning and Development who will give that presentation. Mr. Carey?
Thank you. Good afternoon, Chairman Dahl and members of the Committee on Finance. For the record,
my name is Michael Carey, Financial Planning Analyst with the Department of Planning and
Development's Bureau of Economic Development. I am joined by the Bureau's Managing Deputy Commissioner,
Jeffrey Cohen, Assistant Commissioner of Underwriting, Kyle Brandon, and Anne Maroney from Johnson Research
Group. We are seeking your favorable consideration of items seven through nine on today's agenda
to approve amendment number six, designate the expanded area, and adopt the use of TIF in the
expanded area for the Central West TIF District. The Central West TIF District is located in the
near west side community area and west planning region. The district was originally designated on
February 16, 2000 and is set to expire on December 31, 2036. The TIF District primarily overlaps two city
wards with the 27th ward encompassing 81.83 percent and the 34th ward encompassing 17.06 percent of the
Central West TIF District. The 28th ward makes up 1.1 percent of the TIF District. Aldermans Burnett,
Conway, and Irving have been briefed and are supportive of amendment number six. There are four goals of
amendment number six. Removing 2,798 tax parcels primarily located in the west loop, which have been
have fulfilled the goals of the redevelopment plan. Adjust the boundaries of the Central West TIF
District by adding 55 new eligible tax parcels. Update the land use plan to reflect the adjusted
boundaries of the district and update the redevelopment plan budget to reflect the adjusted boundaries to
accommodate future expenditures. The goal of the Central West TIF District when it was originally
established in 2000 was to reduce or eliminate blighted conditions that qualified the Central West
redevelopment project area as a conservation area and to provide the direction necessary to create a
cohesive and vibrant mixed-use community. Amendment number six continues to comply with these goals
by first removing parcels within the developed west loop area that has experienced a significant
reduction in blighted conditions over the past 20 years, limiting the overall uses of TIF funds within
this area. The removal of these parcels from the Central West TIF District would return approximately
$28 million in annual property tax revenue to the general tax levy benefiting all taxing bodies
without affecting funding for current proposed projects within the district.
Second, the amendment will include 55 new tax parcels that meet the necessary conditions per
the TIF Act. These parcels include underutilized parking lots on both privately and city-owned parcels
for the purposes of continuing the evaluation of a new CTA pink line station. The 55 new parcels will
capture future incremental tax revenue to reinvest into capital projects that benefit the near west side
community area. This slide depicts the current boundaries of the Central West TIF District
and its context within the greater near west side community area. The exterior perimeter is roughly bounded by
Lake Street and Madison Street on the north, Ogden Avenue, Ashland Avenue, and Peoria Street on the east,
Van Buren Street and Florinoy Street on the south, and Damon Avenue and Western Avenue on the west.
The United Center, its adjacent office and practice facility, along with the Henry Horner homes,
are within the excluded area in the middle of the district. This slide depicts past boundary
modifications as well as the modifications under consideration. As mentioned, amendment number six
would modify the current boundaries in two ways. Removal of nearly 2,800 parcels in the original Central
West boundary that are located within the dotted lines, and then adding 55 parcels surrounding the
excluded area and highlighted in yellow. The proposed expansion area in yellow is focused on the
surface parking lots surrounding the United Center and underutilized or city-owned parcels
that are being evaluated for a new CTA pink line station. The excluded area represents the United
Center, its adjacent office and practice facility, and the Henry Horner homes, which will be unchanged.
The second area within the dotted lines would be removed from the district. As previously stated,
these tax parcels are entirely within the west loop, which has experienced significant growth in
development and reduction in blighted conditions over the past 20 years that limits the use of TIF funds
in this area. Amendment number six is presented through a lengthy approval process subject to multiple
public notices via direct mailings, public filing of the plan, community meeting, and open public comment periods.
selected, but if you look at the vacation, you can see a big amount of periods of time,
and you can see a huge amount of periods on that can be removed from even at the top of 1860.
And we will see that this will be repeated coincide with a lot of periods of time for the majority of the
CoAW team which was used.
The amendment was also presented and approved by the Joint Review Board and Community Development Commission,
all of which were supportive of the amendment and approvals necessary prior to today's requested action before Committee on Finance and subsequent City Council approval.
When adding new parcels to an existing TIF district, the expansion area must meet eligibility requirements per the Illinois TIF Act.
The proposed expansion area consists of parking lots, which under the TIF Act are categorized as vacant land.
To qualify for designation under the Act, the subject expansion must exhibit at least two of six specific blighting factors.
The proposed expansion area demonstrates two blighting factors due to the meaningful presence of the need for environmental remediation
and a persistently lagging property tax growth rate at a rate below the Consumer Price Index.
This map shows the current and future land uses within the amended Central West TIF district.
The area has a diverse blend of uses, including residential, commercial, mixed-use, institutional, public, and parks.
The proposed expansion area is designated as mixed-use.
Amendment No. 6 also includes updating the Redevelopment Plan budget to reflect the increment that will be collected as a result of the amended boundaries.
The updated budget will increase to $630 million, representing the maximum amount of TIF assistance capacity,
which cannot be changed without further committee action and City Council approval.
Amendment No. 6 was presented at a public meeting with residents of the Central West TIF district on January 29, 2026,
where residents were afforded a forum to have questions and concerns addressed.
With support from Alderman Burnett, who attended the meeting, residents were assured of the benefits of this amendment
and that the purpose was not to increase taxes.
By the end of the meeting, residents understood how capturing future incremental taxes from the proposed expanded area
would benefit the Near West Side community.
No further public objections or opposition to the amendment were presented at either the Joint Review Board
or Community Development Commission hearings.
The increment generated by the 55 added parcels will be captured in support of future economic development,
municipal, and infrastructure projects, including but not limited to the construction of a new Pink Line station at Madison Street,
improvements to public parks, and affordable housing projects.
The district has and will continue to support current economic development and community-centric projects.
Past projects include a new splash pad and baseball field at Tuohy Herbert Park,
affordable housing at West Haven Park Station at the corner of Damon and Lake,
and road and infrastructure improvements within the district.
In addition to the evaluation of a new Pink Line station, future projects could also include affordable housing
and the continued redevelopment of the remaining vacant parcels at the former Henry Horner homes,
improvement at public facilities like Union, Skinner, and Bartlemy Park,
additional allocations to the Small Business Improvement Fund, which assists small business owners.
Any new authorization of TIF funds would be subject to established process and procedure,
including potential approvals by this body and City Council.
At this time, DPD is not in receipt of or actively reviewing any proposals for TIF assistance.
The Department of Planning and Development is in strong support of Eventment No. 6 of the Central West TIF District
and respectfully requests the committee's favorable consideration.
We would like to thank you for your time and are happy to take any questions regarding the proposed amendment.
Thank you, Mr. Carey.
Alderman Burnett?
Thank you, Chairwoman.
Appreciate the department for all the hard work.
I know this was delayed a little bit more than we want it to be, but this is truly exciting for us
in the 27th Ward for what the United Center is expecting to do with that land and what it means for our ecosystem.
As noted, this TIF is going to be beneficial to the surrounding area, which most people don't realize
is primarily CHA public housing or public land, to which the consent decree outstanding is around
building affordable for-sale housing, to which they haven't been able to complete in any capacity.
So this will help us fund that initiative as of right with this TIF on some of those land parcels
near Washington, near the West Haven sites, but it will also help us with our parks.
Union Park is one of the most utilized parks in the city for concerts and also just everyday usage
and needs updating.
And so to be able to redraw the map and take some of the well-off portions to give back
to our tag space, but to include the potential growth to most importantly add another train station
that we expect to be highly utilized with the success of the Damon train stop being an example
of that, this is really exciting for us to just continue to build what our community has asked for.
So I'm super excited and I thank my colleague, Alderman Conway, for the work and effort to protect
the park in his portion of the West Loop neighborhood and supporting this as well as we try to continue
to support our local community as well as parts of the medical district.
Thank you, Alderman.
Vice Chair Conway, did you want to add to that?
Yes, I do.
So thank you, Alderman Burnett.
Yeah, the 34th Ward is the primary victim here of this adjustment.
But here in the 34th Ward, we're a benevolent people.
And my initial objection was the fact that in the previous amendment, Mary Bartlemay Park was
being removed from the TIF.
And Mary Bartlemay Park, a little two-acre park that was built by this TIF, may be the
most used park per square foot in the city.
So I appreciate that DPD and Alderman Burnett heard my concerns about removing Mary Bartlemay Park
from the TIF and were able to find a way to put it back in while still allowing the 34th Ward
to show its benevolence by removing a lot of our parcels back onto the city property tax rolls,
which is why this has my begrudging and benevolent support.
So thank you all very much.
I'm glad you're so benevolent.
All right.
Can I get a motion to recommend approval of item number seven?
So moved by Alderman Lee recommending do pass.
All those in favor signify by saying aye.
Aye.
Opposed?
In the opinion of the Chair, the ayes have it.
And then the do pass recommendation will be reported out at the next City Council meeting.
Can I get a motion to recommend approval of item number eight?
So moved by Alderman Knudsen recommending do pass.
All those in favor signify by saying aye.
All those opposed?
In the opinion of the Chair, the ayes have it.
And the do pass recommendation will be reported out at the next City Council meeting.
And is there a motion to recommend approval of item number nine?
So moved by Alderman Wagesback recommending do pass.
All those in favor signify by saying aye.
Aye.
Opposed?
In the opinion of the Chair, the ayes have it.
And the do pass recommendation will be reported out at the next City Council meeting.
The next items are 10, 11, 12, and 13.
They will be presented together and voted on separately.
Number 10 is an ordinance approving amendment number one to the Avalon Park South Shore Redevelopment Project Area Tax Increment Financing District.
Eligibility Study Redevelopment Project Eligibility Study Redevelopment Project in the 7th and 8th Wards.
And an ordinance approving amendment number three.
Item number 11, an ordinance approving amendment number three to the Central Park, Chicago Central Park Redevelopment Project Area Redevelopment Project and Plan.
And item number 12, an ordinance approving amendment number one to the Commercial Avenue Tax Increment Financing Redevelopment Area and Project Plan in the 7th, 8th, and 10th Ward.
And 13, which is an ordinance approving amendment number one to the Roseland, Michigan Avenue Tax Increment Financing Redevelopment Area and Project Plan in the 9th Ward and the 21st Ward.
To present that set of ordinances, we have Jeff Cohen from the Department of Planning and Development.
Jeff.
Thank you, Chair.
Good afternoon, Chair Dowell, members of the Finance Committee.
For the record, my name is Jeffrey Cohen, Managing Deputy Commissioner in the Department of Planning and Development's Bureau of Economic Development.
I'm here today to request your recommendation to approve minor amendments for the Avalon Park South Shore, Chicago Central Park, Commercial Avenue, and Roseland, Michigan Avenue Tax Increment Financing Districts with the purpose of extending the life of those districts for an additional 12 years.
These districts were identified for extension under the TIF extension framework presented to this body in December 2024.
Affected alders worked in close conjunction with state representatives and stakeholders, along with the city's state intergovernmental affairs division, to successfully approve each district extension at the state level.
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currently set to expire on December 31st of this year, but had extensions authorized by the Illinois General Assembly during the spring legislative session.
However, the proposed extensions do not take effect without additional approval by the committee and City Council.
The proposed legislation before you today would address the requirement for the districts and establish a new expiration date of December 31st, 2038 for all four districts.
Looking closer at each district, the first potential extension is the Avalon Park South Shore TIF District,
which is roughly bounded by 79th Street from East End Avenue to Brandon Avenue, with extensions running south along Ridgeland and Exchange Avenues.
It also runs north along Exchange Avenue to 77th Street.
The TIF is within the Avalon Park South Shore and South Chicago community areas and is approximately two-thirds in the 7th Ward with one-third in the 8th Ward.
Both alders have provided letters of support for this extension.
Previously, the TIF has been used for the improvements of streetscapes, lighting, and accessibility along 79th Street.
The district has also supported the Small Business Improvement Fund and Workforce Solutions, formerly known as TIFWorks.
A notable recent project funded through the district is the Thrive Exchange, an affordable housing property,
recently celebrating a ribbon-cutting and grand opening.
Should the district be extended, it is anticipated that funds will be used to continue to make infrastructure improvements,
especially along the 79th Street Corridor, continue the success of the area's SPF and Workforce Solutions Program,
and support redevelopment of underutilized vacant space, including Phase 2 of the Thrive Exchange development.
The second district is Chicago Central Park, which generally runs down West Division Street and West Grand Avenue to the north,
North Kedsey Avenue to the east, West Lake Street to the south, and North Pulaski Road and North Keeler to the west.
The district is primarily within the Humboldt Park community, with a small portion within East Garfield Park community areas.
With nearly 60% situated in the 27th Ward, 24% in the 37th, 14.5% in the 28th Ward, and the remainder in the 36th Ward,
DPD has received all letters from alders with more than 7.5% and notified and briefed all alders that were affected by this extension.
In the recent past, the TIF has been used to support the creation of new affordable housing,
including Humboldt Park passive living apartments and conservatory apartments.
Economic development projects, such as Revolution Workshop and support of the Small Business Improvement Fund,
as well as infrastructure and municipal projects, such as Kells Park Fieldhouse improvements,
and Chicago Avenue streetscapes were also previous uses of TIF funds.
If the extension is approved today, the Chicago Central Park TIF will continue to be used to support ongoing infrastructure improvement,
as well as the Ave, an affordable housing project, including and also water main replacements.
It will also support the SPF program and any additional projects that advance the district's redevelopment plan goals.
Oops, sorry, one sec.
Third District is Commercial Avenue, which is generally bounded by East 83rd Street to the north,
South Commercial, and South Chicago Avenues to the west, East 95th Street to the south, and extending toward Metro Rail Lines.
The district is primarily within the South Chicago community area,
with smaller portions within the Calumet Heights and South Deering community areas.
The district is almost split evenly between the 10th and 7th Ward, with a small portion situated within the 8th Ward.
All alders have provided letters of support.
In the past, the TIF has been used to support infrastructure, streetscape, and roadway improvements,
and economic development projects to reoccupied shuttered grocery stores.
It also supports the Small Business Improvement Fund and Workforce Solutions Program,
as well as improvements to Bessemer Park.
If the extension is approved today, the Commercial Avenue TIF will continue to be used to support ongoing infrastructure improvements,
a new affordable housing development called Gallery 89, and continued support of the SPF program.
Lastly, the 4th District is the Roseland, Michigan, TIF District, which is generally between 100th Street to the north,
Indiana Avenue to the east, 118th Street to the south, and State Street to the west.
The district is primarily within the Roseland community area, with the southern portion within the West Pullman community area.
The district is 99.9 percent situated within the 9th Ward.
In the past, the TIF has been used to support viaduct underpass rehabilitation,
as well as the Small Business Improvement Fund and Workforce Solutions Program.
If the extension is approved today, the Roseland, Michigan, Avenue TIF will continue to be used to support infrastructure improvements
and a recent RFP project consisting of an affordable housing project at 115th and Michigan.
Overall, DPD believes there is a strong rationale to extend each of these districts
and would ask for your favorable consideration of this request.
At this time, I'm happy to answer any questions committee may have.
Thank you, Mr. Cohen.
Any questions from members of the committee?
Do you have a question, Alderman Beal?
No, I don't have a question, Madam Chairman.
I just want to commend the department and the commissioner on working with me on extending this TIF on Michigan Avenue.
So it's very badly needed, and I support it wholeheartedly and move due pass on that one.
All right.
We have to take them individually.
I put you down for 13 since I didn't have a letter of support.
I want you to move the motion.
Is there a motion to recommend approval of item number 10?
So moved by Alderman Moore.
All those in favor, signify by saying aye.
Opposed?
In the opinion of the chair, the ayes have it.
Is there a motion to recommend approval of item number 11?
So moved by Alderman Moore.
Recommending due pass.
All those in favor of the motion, signify by saying aye.
Opposed?
In the opinion of the chair, the ayes have it.
Is there a motion to recommend approval of item number 12?
So moved by Alderman Ramirez, recommending due pass.
All those in favor of the motion, signify by saying aye.
Alderman Bill moves the motion, recommending due pass of item number 13.
All those in favor of the motion, signify by saying aye.
Opposed?
In the opinion of the chair, the ayes have it.
And the due pass recommendation for all of these ordinances will be reported out at the next city council meeting.
Thank you, Mr. Cohen.
Item number 14 from the Department of Planning and Development, an ordinance improving amendment number 3 to the Bryn Mawr Broadway redevelopment project area tax increment financing program redevelopment plan and project in the 48th Ward.
We're joined again by Jeff Cohen, who will give the presentation.
Thank you again.
Good afternoon, Chair Dowell, members of the Finance Committee.
Again, for the record, my name is Jeffrey Cohen, Managing Deputy Commissioner in the Department of Planning and Development's Bureau of Economic Development.
I am here again today to request your recommendation for approval of a minor amendment to the Bryn Mawr Broadway Tax Increment Financing District for the purposes of adding new affordable housing construction as an eligible cost category and increase the redevelopment plan area budget.
This minor amendment serves two related purposes.
It adds affordable housing new construction as an eligible cost category under the Bryn Mawr Broadway redevelopment plan, which is not currently authorized to fund this type of eligible cost.
It also increases the RPA's overall budget authority by the consumer price index plus 5% to accommodate that expanded eligible use, raising the total from $17.4 million to $37.9 million.
A minor amendment under the Illinois Tax Increment Financing Allocation Redevelopment Act, or the TIF Act, is authorized, which does not add parcels, change land use, or otherwise trigger the statutory requirement for a public hearing before the Community Development Commission or Joint Review Board.
As a result, this amendment can be presented at Committee on Finance and proceed to City Council without those additional review steps.
DPD's immediate reason for pursuing the minor amendment of this TIF is to enable the port of TIF and increment from the Bryn Mawr Broadway TIF District to the neighboring Hollywood Sheridan TIF District in support of the affordable housing new construction at 5853 North Broadway, which was presented earlier.
Without this amendment, the funding for the project will not be available to construct.
The Bryn Mawr Broadway TIF encompasses a 15-block area centered on the intersection of North Broadway and West Bryn Mawr Avenue and extends west on Bryn Mawr to Sheridan and south along Broadway and Winthrop.
The district is located entirely within the 48th Ward, represented by Alderman Hoppenworth, and located in the Edgewater Community Area.
DPD is requesting your favorable consideration of this amendment, and I'm happy to answer any questions the committee may have at this time.
Thank you, Mr. Cohen.
We do have a letter of support from Alderman Manah Hoppenworth.
Any questions from members of the committee?
Seeing no questions, Alderman Cijo Lopez recommends do pass.
All those in favor, signify by saying aye.
All those opposed, in the opinion of the chair, the ayes have it, and the do pass recommendation of this ordinance will be reported out at the next city council meeting.
Thank you, Mr. Cohen.
Item number 15 is an ordinance from the Department of Planning and Development approving Amendment number 4 to the Pilsen Tax Increment Financing Redevelopment Project and Plan in the 11th, 12th, 25th, and 28th Wards.
Michael Carey from the Department of Planning and Development will present the case for this ordinance.
Thank you, Mr. Cohen.
and you're on. Thank you, Chair. Good afternoon, Chairwoman Dahl and members of the Committee on
Finance. Again, for the record, my name is Michael Carey, Financial Planning Analyst within the
Department of Planning and Development's Bureau of Economic Development. I am joined by the Bureau's
Managing Deputy Commissioner Jeffrey Cohen, Assistant Commissioner of Underwriting Kyle
Brandon, and Anne Maroney from Johnson Research Group. We are seeking your favorable consideration
of item number 15 on today's agenda to approve amendment number four, increasing the redevelopment
plan area budget for the Pilsen-TIFF district. The Pilsen-TIFF district is located in the lower
west side, McKinley Park, and Bridgeport community areas, along with the west and southwest planning
regions. The district was originally designated on June 10, 1998, and is set to expire on December
31, 2034. The TIF district primarily overlaps three city wards, with the 25th ward encompassing
51.52 percent, the 12th ward covering 29.87 percent, and the 11th ward having 18.56 percent of
the Pilsen-TIFF district. Alders Sichu Lopez, Ramirez, and Lee have been briefed and are supportive
of amendment number four. The overall goal of the proposed amendment is to update the redevelopment
project area plan budget to allow TIF funding for public improvements in economic development
within the Pilsen redevelopment project area. In addition to the updated budget, the proposed
amendment will update the land use plan and goals and objectives, along with bringing the
redevelopment plan up to current city ordinance and policy standards. The updated goals and
objectives include strengthening the Pilsen industrial and commercial corridors by encouraging
rehabilitation to existing buildings that support economic development for the area, continuing
to create new open spaces, including rails to trails, prioritizing pedestrian, bike, and other civil
infrastructure, as well as new affordable housing and city capital investment programs, such as the
Small Business Improvement Fund. One project supported by the Pilsen-TIFF district was Whittier Elementary
School's new playground, enhanced library, science classrooms, and computer classrooms. Other notable
projects include improvements to Juarez High School, Walsh and Perez Elementary Schools, as well as Dvorak,
McGuane, and Palmisano Parks. Shown here are the current boundaries of the Pilsen-TIFF district that include
portions of the Lower West Side, Pilsen, and Bridgeport. The current TIFF district is in a regular area
generally bounded by the Blue Island Avenue, Cullerton Avenue, and 16th Street on the north, Chicago River
and Stort Avenue on the east, Stevenson Expressway and 33rd Street on the south, and Western Avenue
on the west. No modifications to the current boundaries are contemplated with the requested
action. The next map highlights the current land uses within the Pilsen-TIFF district. The area has a
diverse blend of uses including residential, industrial-commercial, mixed-use, institutional, public,
parks, and right-of-way. The land use plan has been updated to reflect current land uses since the district
was established in 1998. Updates include the development of Palmisano Park and parks along the river, residential
areas adjacent to the parks, consolidated intermodal yards, and industrial commercial properties. The primary goal of
amendment number four is updating the redevelopment plan project area budget to reflect the current
increment generated by the district, as the budget has not been amended since 2003. The proposed budget
will allow projects to move forward that have not been able to proceed due to hitting the original plan's
budget ceiling of $115 million. With the proposed increase, the Pilsen-TIFF district can again be
utilized to fulfill redevelopment project area goals and the use of TINF-TIFF funding to support those goals.
The updated budget will increase to $830 million, representing the maximum amount of TINF assistance
capacity the district can utilize and cannot be changed without further committee action and city
council approval. The original proposed amendment number four was presented at a public meeting with
residents of the Pilsen-TIFF district on May 4, 2023. The proposed amendment number four at that time
included revised boundaries that would have shifted the northern border north to 16th street.
This revised boundary would have included the residential area of the Pilsen community area.
Residents were concerned that the revised boundaries over the residential area would lead to massive
gentrification and voice their opposition to the revised boundaries. DPD, in conjunction with the affected
alders offices, altered the amendment to only update the budget, land use plan, and goals and objectives
of the redevelopment plan. The district will always continue to be used as a financial resource for
community projects. What those specific uses are depends on what the community believes is a priority
as opportunities arise. But we believe that some of these could include affordable housing,
rail-to-trails programs including further development of the El Paseo, continued improvements at local
elementary and high schools, small business support, and infrastructure and roadway improvements
such as the Western Avenue and Halstead Street bridges. The Department of Planning and Development
is in strong support of amendment number four of the Pilsen-TIFF district and respectfully requests the
committee's favorable consideration. I want to thank you all for your time today and we will take any
questions regarding the proposed amendment. Thank you, Mr. Carey. Alderman Ciccio Lopez,
do you want to add anything or Alderman Ramirez? Alderman Ciccio Lopez. Yeah, you can go first. I can
do at the end. You want to close? Okay. Alderman Lee. We'll go whatever this is left to right. I'm fully
supportive of this amendment. I wish we would have done this a year ago. We could have been spending
money out of this TIF. I know we're still working through the boundaries piece of this, but there
was no reason why we couldn't approve an amended budget amount so that the funds could be spent. So
fully supportive of this. Looking forward to further conversations about what the boundary
conversation will be down the road. But look for my colleagues' favorable consideration and support on
this amendment. Thank you. Alderman Ramirez. Yes, thank you, Chair. So this amendment is really
exciting for the 12th Ward. It's not just regular order of business for us. It opens up, as Alderman Lee
said, TIF funds that have been long awaited specifically to fix the Western Bridge in the 12th Ward.
And I do want to mention that in November of 2023, we were working with CDOT to look to further
restore the Western Avenue Bridge and that was all because of the funds within this TIF. And then
later in April 2024, our office, the 12th Ward office, hosted a public meeting and we were excited to
share that the project was going to begin just a few months later. And due to the amendment that was
made around this TIF, the 12th Ward and really people all over the city had to wait nearly two years
to not just for this project, but as mentioned in the presentation, many projects that have been on
hold. So this isn't just a win for the 12th Ward, but for folks all over the city, because this bridge
quite literally connects so many of us commuting north and south down Western Avenue. So I'm happy to
finally to be continuing a project that we had announced in 2023 and later in 2024. And I want to let my
residents know that this project has always been of importance for us. And so it's a happy day.
And we're really excited to further announce details on when the project will begin. So thank you,
Chair. Thank you, Alderman Ramirez. Alderman Sichel Lopez. Thank you. Thank you, Madam Chair. And I
want to just provide a little bit of context on this effort. The Pilsing Industrial TIF used to be
entirely on the 25th Ward or 95% on the TIF Ward. And this has been an eight-year process that has
started before my tenure when Pilsing was, or the previous administration was pushing a landmark
designation of 1,000 homes. This proposal landed as I was barely coming into office. And our office was
very worried about the effects that this will have. The landmark designation, including a remap
that came from the state of Illinois. This was, again, something that we inherited, something that
we discussed for a long time in our community. After a lot of review and discussions with homeowners,
it was decided that the landmark designation could not be supported. 95% of the people said that this was
not something that the community will support. At the same time, and this was during the pandemic,
you know, 1,000 small homeowners could have been affected. The community decided that it was
important to do take action because, as you know, property taxes increased severely. That's where you
see the results of a very robust funding that goes into the TIF industrial allocation.
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In March 19, 2024, right after the meeting that we hosted at Benito Juarez and we were consulted,
residents organized in one precinct and asked that the city ask and use stiff dollars to help the small homeowners
that were struggling with an average increase of over 40 percent, way above the average across the city.
At that point, 90 percent of the people supported such plan and looking at ways to help the small homeowners.
That's what you see. This is the reflection for the TIF, which used to have just an industrial use to be able to create affordable housing.
One of the main projects that was used, the TIF dollars were used, was to make sure that we settled a case with a developer on 18th and Peoria.
We have come to planning commission. We have continued the development of 434 units of all affordable housing that will remain a top priority for our community.
The affordable housing for families that have been displaced is critical for Pilsen to now go from an industrial use to a preservation use.
We also have, of course, and in a process that is driven by the community, participatory budget so that we will collaborate with Aldiwomen Ramirez and Aldiwomen Lee
so that we can continue discussions around the use to preserve the communities, to use it for housing, as we've seen in many occasions for public schools,
like Withier Elementary, Ruiz and Benito Juarez, that ended up without a pool or pool usage for two years.
We could not use the pool. Bridges that remain unattended for also a long time.
So we needed to come up with an agreement that was ultimately discussed with the community.
This is the culmination of this process that always puts and centers the community and the community's needs.
That's why we will continue to prioritize, help to the small homeowners, help to the small businesses,
the creation of affordable housing, not only with 18th and Peoria, but also to help the small homeowners that live in the area.
Our schools have been seeing enrollments decline every single year.
The enrollments have declined by 40% now in our schools.
We hope that the use of this TIF for affordable housing and public works will help us repopulate some of our schools
and create more housing that is urgently needed.
We're also glad to see the Western Bridge finally being done and other bridges that also need urgent attention.
This compromise is a plan of preservation for 100% public works, for participatory budgets.
And again, a change in direction with a plan that could gentrify our community.
And today we have the opportunity to have housing, affordable housing that is badly needed,
and focus on investment in public works, the school park districts, and so on.
I appreciate the collaboration and looking forward to our participatory budget process with the 28th, 11th, and also with the 12th Ward.
Thank you, Madam Chair.
Thank you, Alderman.
Alderman Rodriguez, followed by Vice Chair Conway.
Thank you, Madam Chair.
I just have two quick questions.
My residents of the 22nd Ward have significant interest on two projects that have relevance here.
First, Alderman Ramirez, I'm pretty excited about the Western Avenue Bridge.
My residents use it to go north and south.
I'm assuming this is the bridge over the sanitary and shipping canal at Western Avenue
that serves as a vital transportation hub for the southwest side of Chicago.
Is that right?
Is that that bridge?
Yes, it is.
She is acknowledging that you're correct.
Congratulations.
I'm so excited about that myself.
And if I was running for the election, I'd be campaigning on that myself.
And then I just have a quick question for either the city or the 25th Ward.
I'm assuming the – so the Ruin-Lazano Library, I have a number of constituents who are very interested.
Should we talk at length about the Ruin-Lazano Library in committee, at council?
I'm assuming it's still outside of this – in the TIF district.
And if so, how far out of it is it?
Yes.
So the Ruin-Lazano Library, and I'm glad, Alderman and Chairman Rodriguez, you asked about that.
And the Latino community – and I know this is really relevant for Hispanic Heritage Month – remains to be a community that doesn't have archives of our history.
The Mexican and the Latino community don't have an archive of our history.
The plan in this TIF was originally to incorporate this as a priority.
It is still several blocks away from the boundaries.
However, we have discussed – and I think many leaders of the community came to testify in the amendment process – to still make it a priority and perhaps discuss other ways.
I know the state and the federal government have made allocations up to $5 million.
We conducted a feasibility study back in 2020 to expand the library and include the archives.
And it's our hope that maybe with the finance chair – I know that in Planning Commission I mentioned this – that the community will continue to push for this project.
That perhaps through maybe general bonds or maybe other ways of financing, we can still finalize this project, again, that goes back to 2020 when the feasibility study was finalized.
So we hope that we continue to work with the administration to allocate the funding that, unfortunately, these TIF boundaries is not incorporated.
Yeah, and thank you for saying that.
I, too, I think it's high time and long overdue that we have a Latino archives in the city of Chicago at the Rui Lozano Library, a library named after a legend in our community.
So I think that to the extent that this project will not address that per se, I think we need to continue to work on that.
But I'm glad that all three, four alders are on board with this and, you know, will be supportive.
Thank you, Alderman Rodriguez.
Vice Chair Conway?
Yeah, perhaps these – my questions are simplistic.
Noting that the boundaries of the TIF aren't changing and the dates aren't changing, what is the source of the increased budget, assuming that's also increased revenue of some kind?
So the source of the increase in the budget stems back to it hasn't been updated since 2003.
So we're talking about adjusting it for inflation and then adjusting it towards accounting for future inflation within the district so that these projects can be funded.
It is a hard budget ceiling, so it's just making sure that we have the funds available through 2034 to be able to fund these projects.
So are we actually approving these physical projects right now or just planning to do that one day?
No, we're just approving the increase in the budget to $830 million.
The line items presented in this presentation are just for planning purposes to highlight what they could be used for.
So the function of this will essentially, like, prevent TIF sweeps?
No.
It won't?
Okay.
Okay, what is the purpose of this?
I guess I don't understand.
I didn't.
Yeah.
If we're not approving these projects, then we're not.
All right.
So I'll take a shot, and then DPD can keep me honest on this.
When the TIF was renewed, there was already something in the works predating Alderman Lopez where the boundaries were supposed to be reconsidered.
And I think that the expectation was that the boundaries would be updated at the same time that the ceiling was lifted on the adjusting the budget.
This TIF has been collecting increment consistently in this time.
But we hit the ceiling over a year ago, and so nothing has been able to be spent because we have to give ourselves the authority to do that.
So all we're doing today is giving ourselves the authority to up to the ceiling that has been calculated by DPD for the remaining life of this TIF.
Am I right?
Jeff Cullen.
Jeff Cullen, managing deputy for DPD.
Yes, Alderman Lee, you are correct.
This is a statutory amendment that increases the ability to use TIF funds within the Pilsen TIF district.
It's based on the increase, not just by CPI and other metrics, but mainly on the EAV and where that calculation comes in in terms of what the TIF district can generate, both on an annual basis and through the extended life.
Thank you, Mr. Cohen.
Thank you, planning professional Alderman Lee.
Alderman Ramirez recommends due pass of this ordinance.
Item number 15, all those in favor, signify by saying aye.
Opposed, in the opinion of the chair, the ayes have it, and the due pass recommendation will be reported out at the next meeting.
Thank you, Mr. Carey.
Item number 18 is from the Department of Planning and Development, a substitute ordinance authorizing the execution of a redevelopment agreement
with Foundry Park Properties KP7 LLC to provide tax increment financing assistance for the Foundry Park Mixed Use Development Project at the 31.
Acre site bounded by West Dickens Avenue, North Branch of the Chicago River,
and North Kinsbury Street, and North Southport Avenue in the 32nd Ward,
in an amount not to exceed 201,589,396.
There is a substitute ordinance which has been prepared and sent electronically to everyone.
Is there a motion to accept the substitute?
Motion made by Alderman Riley to accept the substitute.
All those in favor signify by saying aye.
I oppose.
In the opinion of the chair, the ayes have it, and the substitute ordinance is before us
and will be explained by Jeff Cohen from the Department of Planning and Development.
Jeff.
Good evening, Chair Dowell and members of the Committee on Finance.
Again, for the record, my name is Jeffrey Cohen,
Managing Deputy Commissioner in the Department of Planning and Development's Bureau of Economic Development.
I'm also joined by Kyle Brandon, Assistant Commissioner,
and Billy Graham's Financial Planning Analyst, representing the Underwriting Division.
We're also joined today by representatives of JDL and their council.
We are here today seeking your approval of a redevelopment agreement between the city
and Foundry Park Properties KP7 LLC and its affiliates in support of the Foundry Park Infrastructure Project.
The Foundry Park Infrastructure Project is located around the intersection of West Cortland Street
and North Southport Avenue.
The site is located entirely in the 32nd Ward, represented by Scott Wagesback,
in the Lincoln Park Community Area, Cortland and Chicago River Tift District,
and the Central Planning Region.
Alderman Wagesback has provided a letter of support for the project.
Here is an overhead view of the neighborhood context with the project site outlined in red.
Located along the north branch of the Chicago River
and squarely between the Lincoln Park and Bucktown neighborhoods,
the site was mostly occupied by the A. Finkel and Sons Steel Mill until it was demolished in 2012.
The site was to be the northern portion of the Lincoln Yards development.
While Lincoln Yards North did not materialize as envisioned,
Foundry Park represents a rethought and more appropriately scaled approach
for this portion of the north branch,
one that focuses on deliverable infrastructure, realistic phasing,
and a scope that fits the site and the surrounding neighborhoods.
Foundry Park is governed by Plan Development 1439,
which was approved by the Chicago Plan Commission in January 2026
and received full city council and committee on zoning approval in February 2026.
Here is a bird's eye view aerial looking north,
showing the current conditions and demonstrating the need
for a comprehensive infrastructure plan for the site.
The developer for this infrastructure project is a joint venture
between JDL Development and Kane Anderson Real Estate.
The project will build out roadways, sewers, water, electric,
and other utility infrastructure at the site
in support of immediate vertical development
and connecting the site with neighboring Lincoln Park and Bucktown communities.
Additionally, the project will rebuild the river wall
to include natural barriers where possible,
provide a privately funded state-of-the-art river walk,
develop more than six acres of new publicly accessible,
privately operated open space,
and facilitate a connection to the 606 Trail.
The total cost of the infrastructure project
is approximately $234.9 million,
with $201.6 million, or 86%, to be reimbursed by TIF.
Construction is anticipated to begin in the fall of 2026,
with completion of the full master plan in 2034.
Foundry Park Properties KP7 LLC is the entity created by JDL
and Kane Anderson to carry out this project as a joint venture.
JDL Development was founded in 1993 by Jim Lettinger
and is a leading Chicago-based residential and mixed-use developer,
known for its hands-on creative approach
to infill and entitlement projects.
JDL has developed more than 3,500 units,
totaling $2.5 billion,
primarily in the city of Chicago.
Past projects include One Chicago and Number 9 Walton,
and they are currently leading the North Union
mixed-use redevelopment of the Moody Bible Institute campus
on the near north side.
Kane Anderson Real Estate was founded in 2007
as the dedicated real estate private equity firm
of Kane Anderson Capital Advisors.
This entity has approximately $21 billion in assets under management
across opportunistic equity, core equity, and real estate debt.
The vertically integrated firm brings experience
in all aspects of real estate investing and management to the project
with an operator-oriented platform
that partners closely with established local developers
and operators via joint ventures.
Architectural services were provided by Hartsthorne Plunkard Architecture,
an award-winning full-service architecture,
an interior design and urban planning firm based in Chicago,
and legal counsel provided by Dykema,
a 100-year-old full-service law firm,
experienced in counseling developers on utilizing TIF funding
and public-private partnerships in Chicago.
The general contractor is still to be determined.
Shown here is the budget for the project.
The approximately $235 million project
will be funded with a combination of private equity and city assistance.
201.6 million, or 86 percent, of the infrastructure costs
will come from TIF,
with the remaining $33.3 million funded by the development team.
The project budget consists of approximately $99 million
dedicated to new roadways and utility improvements,
$46 million for new parks,
$65.5 million to the riverfront,
$18 million for the 606 Trail,
and approximately $6.7 million for site prep and general expenses.
The city will be reimbursing eligible incurred costs
of the new and improved public roadways and utilities
to be conveyed to the city upon completion,
six acres of new parks subject to a development management agreement,
or DEMA, as well as the 606 Trail extension
and 50 percent of the cost toward riverfront features.
This slide shows the master plan for the site.
Once fully developed,
Foundry Park will include more than 3,000 residential units,
with 20 percent dedicated as affordable for a 30-year period.
It will also feature a hotel, office, and retail spaces,
public parks, and a public river walk along the Chicago River,
and a future extension of the 606 Trail.
The project will commence with the build-out of the roadway
and utility infrastructure that extends down Dominic Street
and Southport Avenue into the site.
Additional infrastructure improvements include a new public alley
and streetscape renovations to Kingsbury Street,
Cortland Avenue, Dickens Avenue, and Elston Avenue.
The development plan also integrates the potential for a future bridge
to be constructed over the Chicago River via Southport.
This slide shows Triangle Park with its central square,
which will be developed as part of Phase 1 of the vertical development.
This park will be accessed by four wide pedestrian dedicated landscape entryways
and will offer program activities such as a farmer's market
and a winter skating rink.
The associated vertical development will be within the triangle formed
by Cortland, Kingsbury, and Southport,
and will be comprised of an $800 million privately funded investment
that will not receive TIF funding.
The vertical development of Phase 1 will include an underground parking garage
with 777 stalls and four buildings, including a 183 key hotel,
three residential buildings totaling 709 rental and condo units,
including 95 on-site rental units,
which will comply with the Affordable Residential Ordinance,
also known as the ARO.
The developer will also make an in-lieu payment of $7 million
to cover the remaining ARO requirement
into the Neighborhood Opportunity Bonus Fund.
Additionally, approximately 125,000 square feet of ground floor retail
will activate the streetscape.
The next two slides show renderings of the central square in Triangle Park,
and this slide shows a cross-section rendering of the riverfront portion
of the development.
To the extent possible, the developer will be utilizing a naturalized edge to the river,
which will provide immense ecological benefit
and an enhanced sense of connectedness between the river and the development.
Finally, the following slides highlight renderings of additional riverfront and park space
that will be developed as part of Foundry Park Master Plan.
The proposed TIF funding structure will first be drawn from existing increment
in the Cortland and Chicago River TIF district,
with subsequent funds backed by anticipated future incremental property taxes,
minimizing bridging costs and reducing the overall TIF request.
The landholding venture structure delivers shovel-ready development pads
to vertical developers, accelerating the pace of development
while ensuring the site advances in a coordinated manner.
The redevelopment agreement require enhanced minority
and women business enterprise participation of 30% and 10% respectively,
above the city standard thresholds,
and mandates that 50% of construction hours go to city residents
at Illinois prevailing wage.
Park maintenance obligations are legally binding and governed by a DEMA
and the zoning parameters per planned development 1439.
The project will deliver substantial long-term benefits.
It will deliver over six acres of program public parks across the 29.5-acre site,
accessible as public spaces open to the broader community.
It will also restore the Chicago River's natural edge
through naturalized riverbanks where feasible,
and a new privately funded riverwalk that exceeds minimum study standards,
representing one of the most significant riverfront improvements
in the North Branch Corridor.
At full build-out, the project will deliver over 3,000 new residential units
across all phases, 20% of those units being designated affordable
at 60% of area median income.
Additionally, the project directly advances the goals
of both the Cortland-Chicago River TIF Redevelopment Plan
and the North Branch Framework Plan,
which have guided community investment in this corridor since 2017.
Thank you very much for joining us today.
Thank you very much for joining us today.
Supporting this redevelopment agreement today is critical to the future of Foundry Park.
The project activates 29.5 acres of historically vacant riverfront land on the north side
and unlocks approximately $3 billion in total private investment.
The infrastructure funded through the TIF reconnects this land to the city grid,
solves a complex infrastructure challenge, enables coordinated development across the full site,
and is the first step to a pathway for hundreds of new permanent full-time jobs.
The public benefits are immediate and concrete.
Chicago River Access, six acres of new public open space, an expanded river walk exceeding city standards,
a new 606 trail extension towards the west connecting the Bucktown and Lincoln Park neighborhoods,
as well as enhanced 3010 WMBE commitments along with standard city construction compliance metrics.
This is not just construction compliance or city standards.
This is new non-property tax revenue – in addition to those will be new non-property tax revenue streams beyond just real estate taxes.
And the long-term benefits are significant.
Again, over 3,000 new residential units with 20 percent affordability commitment,
900 permanent jobs at stabilization, and a fully activated riverfront,
all of which stand on the foundation of the investment being asked to approve today.
For the numerous reasons detailed in this presentation and testimony,
the Department of Planning and Development is in strong support of this project
and respectfully requests the committee's favorable consideration.
I thank the committee for its time,
and I'm joined by representatives from JDL and the council to answer any questions the committee may have.
Thank you, Mr. Cohen.
We do have letters of support from both the 32nd Ward and the 9th Ward –
I mean, excuse me, in the 2nd Ward, Alderman Wagesback, would you like to close?
Yes, Chairman.
I think there was another question.
Alderman Beal.
Thank you, Madam Chairman.
Madam Chairman, I'm going to tell you, when I first looked at this,
and I saw 201 million, I said, oh, my God.
But I totally understand.
That was a very good presentation, you know, improving the river walk and everything that goes along with that.
I think this is a phenomenal project, and so I commend my colleague from the 32nd Ward on bringing this to light,
and congratulations.
But I do have one quick question.
Seeing that the majority of this is being spent out of TIF, did we look for any state or federal funding,
seeing that we were doing the river walk and some other stuff,
were there any avenues to possibly do some joint ventures with the state or the federal government on this project?
Jeff Cohen, DPD.
I'm not aware of any additional state or federal funding that would have been able to be invested in this at this time.
However, we do have members from the development team here to see if they had made any outreach,
if there's somebody from JDL who could potentially comment on their outreach for state or federal subsidies.
Jim Lechinger, JDL Development.
We did not approach any state or federal bodies to see if there's additional resources.
This TIF was put into place almost 10 years ago,
and it was created for the purpose of building infrastructure in this area.
So that's where we started with the project,
and we did receive support from the neighborhood, from the aldermen,
so we never looked for any other sources.
Okay.
All right.
I'm just constantly looking outside the box.
I mean, we do have other levels of government that we need to be looking to partner with
because they take advantage of all these amenities as well.
And so let's just, you know, from a department standpoint,
when these developers come to you guys,
I think you should ask them to start looking to see if there's some state or federal government money out there
that can help offset some of this.
But great project to my colleague.
Congratulations.
Thank you, Alderman Beal.
Alderman Lopez.
Thank you, Chairman, and now good afternoon, members of the committee.
I have a question with regards to such a large project.
Obviously, we know there are individuals and groups that are concerned about workforce development in the future.
With regards to namely the hotels,
what are we doing for workforce development for many of the infrastructure projects that I saw?
If you could put it back up,
there was a slide that showed how much was being spent in that one.
So, for example, for roadways and utilities,
almost $99 million is being spent to create those roadways.
What is our WNBE targets?
And who are the partners going to be like for all of those various categories?
So, the target MWBE requirement for this that would be legally binding for the redevelopment agreement is 30% minority business enterprise
and 10% women business enterprise.
We also are instituting the aspirational 3% veteran business enterprise goals as part of this redevelopment agreement.
In terms of the utilization plan for that,
we are still in the kind of contracting phase where GC needs to be selected and then subs engaged as well.
But the developer has provided significant outreach to the construction community,
as well as provided notice to all the MWBE firms who represent local trades prior to the Community Development Commission
as part of their requirements to be heard there.
And the team that has been put together so far,
has that also been reflective of the greater city's demographics?
I believe that the demographics of the development team are not as diverse as the city, but the workforce.
I hear that right behind me.
Can we have them answer that question?
Thank you, Alderman Lopez.
Mr. Lechinger?
Our, actually, the JDL, Jim Lechinger with JDL Development.
Our team is not a particularly diverse team.
We're actually a small group.
We do source all sorts of services from different communities, MBE service providers, as well as contractors.
And that has been the process from the beginning.
We have not yet selected the actual general contractor for the infrastructure work.
The ones that we have spoken to are aware of the requirements that we are, that not only the city has,
but that we have to provide the proper MBE and WBE support.
And are there waivers incorporated in this ordinance?
Excuse me, Alderman Lopez.
Are there waivers incorporated in this?
Is the language for receiving a waiver incorporated in this ordinance?
The development team is not seeking any waivers.
However, the redevelopment agreement does have the ability for waivers in the event that during the subcontracting and contracting process,
that they're able to provide the Department of Housing's construction compliance team the appropriate information and proof that a specific trade was not going to be able to be met by some WB or veteran business enterprise.
So there are specific procedures in place that in the event that there are no trades that can participate under the MWBE program, there are ways to exclude those.
However, I don't believe that in this case the developer will be seeking any of those.
Because we have heard from many of our union partners that many of these multimillion dollar developments and projects in numerous wards,
not necessarily involving you, but just overall, that oftentimes waivers are being requested after city council is told of all the great virtues of what we are seeing and the expectations that we have.
And then we find that waivers are being given by the administration or sought by the developer.
So I just like to make sure that we are on record as saying that we want to stick to what is required by law.
And sadly, having that language in there also gives them the opportunity, even down the road, to go down that path,
which is something that I think we've, I know I have brought up numerous times about addressing the waiver issue.
And that still remains a concern, even as we move forward on this item.
Thank you.
Thank you, Alderman Lopez.
Alderman, Vice Chair Conway.
Yeah.
Dovetailing off Alderman Lopez.
I know he was asking some questions about workforce development and mentioned the hotel.
You know, looking here at the numerous buildings, do we have an idea how many of them are going to be a hotel?
Is it one or is it multiple?
I believe there's only plans for one hotel building of 183 keys.
And a question for Mr. Lechinger, just on where you're at with the hotel.
Do you have financing for the hotel yet, knowing a lot of these dollars are infrastructure?
Alderman, we're still putting together the financing package for the first phase, primarily, namely the hotel.
We do not actually build or operate hotels as a company.
So we are seeking a hotel partner, which we do not yet have.
We are planning on starting construction on the underground parking, et cetera.
But we do not yet.
to have the financing in place for the actual hotel.
Well, okay.
I mean, noting our Unite Here folks that are here, you know, obviously, Mr. Lechinger,
you're a prominent developer in this town.
You've been here before.
You'll hopefully be here again at some point.
And obviously, we're spending a significant amount of tax dollars here in this project.
And I certainly hope that you will heed the concerns that Unite Here has brought
should you end up going forward with a hotel on this property.
Understood, Alderman.
And we are very much aware of their concerns.
We're concerned for everybody that works within our community.
That's why we pay the highest wages of anybody in the residential apartment business.
We're proud of that.
That's all why we are everything that's being done here that is committed is 100% union.
And, you know, we're strong believers in the Chicago unions, strong supporters of them.
Thank you.
Have you had any conversations with Unite Here?
We did.
And I explained the exact same thing that I stated here,
which is that I can't really make any commitments for the hotel as I'm not the hotel operator.
And once we get it financed and get a hotel operator in place, that conversation can take place.
And should the hotel not become real, does your land use, or I assume this is a PD, right?
So you have other uses that you could replace that with?
Yes, we do.
That could become a residential use.
All right.
Thank you.
Vice Chair Conway, you have anything else?
No, that takes care of me.
Alderman Riley?
Thank you, Madam Chair.
And I just wanted to pick up where Alderman Conway left off.
And thank you, Mr. Letchinger, for clarifying the fact that you're not a hotelier,
nor do you intend to operate the one that may be built on this property.
But in the event that a hotel project does move forward,
I think the expectation of folks within this chamber is that the operator, you know,
yourself will sit down with Unite here to discuss the possibilities of things like a card check neutrality agreement
and these sorts of things.
As was noted, this is a union town.
And as someone who represents a tremendous number of hotel properties downtown,
it is very important to myself and others that we do our very best to do right by the folks that work so hard in these properties.
So we'll take you at your word on that.
And thank you, Madam Chair.
I move due pass.
All right.
Before we move due pass, I have one other question, and then we'll go to Alderman Wagesback.
On the plan commission, do you have to come back to get any kind of approval for any of the other phases of this?
We will come back for site plan approval for each phase as we move forward.
The massing, the FAR, the unit count is already finalized.
That can move around from building to building,
but we will have to come back for site plan approval on the plan development side as we build.
Thank you.
Alderman Wagesback.
Thank you, Chairwoman.
I'll start out first going through some of the questions.
Alderman Beal mentioned the federal funding,
and we have been working with Congressman Quigley on a couple aspects of the funding.
One was the nearby metro station that has been in disrepair for many decades,
and it also would help with the extension of the 606.
So we are securing federal funding there.
And Alderman Lopez, just to tack on, Jim Lechinger had also talked to me previously about working
or at least having discussions with Unidos to talk about the minority contracting there.
And I believe in the original plan from several years ago,
we did talk about this with JDL that we wanted to see the highest participation on minority
and women-owned contractors to make sure that they were heavily involved in this project.
And we have those assurances from JDL as they've done in other projects.
On Unite, we've made it clear to JDL from the beginning that should a hotel operation come together,
first of all, he has to have a potential partner in that as well as a potential operator.
But I don't think it's appropriate to make those commitments or have him held to those commitments at the moment
when we're talking about the TIF that is going not to private entities as it was under the original agreement several years ago,
but going simply to public infrastructure.
But we have made that commitment very clear to him that he needs to be involved in those discussions,
and he has agreed to do that when the time comes.
As everybody knows, the overall Foundry Park project is for 3,500 new residential units,
20% affordable on-site, and commercial space.
And this will add significant revenue to the city coffers in terms of property taxes.
I also want to put into the record, Chairwoman,
I believe you have two letters from CDOT and DPD outlining the infrastructure goals that were sent to Alderman Hopkins.
And to me, in preparation for this committee meeting.
So I want to make sure that we have those in the record.
Annette talks specifically about the site plan approvals where JDL would have to come back to either zoning,
landmarks, finance, or city council committees for specific portions of that.
So, yes, overall it is $201 million.
That is significantly less.
I believe it's more than half less than what was originally approved under the Lincoln Yards proposal.
And, again, it goes to infrastructure for this area, which essentially would be, as Mr. Cohen said,
for the roadway, sewers, the new park spaces, the riverfront, the bridges, and infrastructure for the extension of the 606.
Not to legal fees, not to marketing, not to a lot of things that were done in the original agreement.
And with that, I think I would just ask for the committee's favorable plural of this item today
and make those commitments that have been put forth today happen in the future for the minority participation,
for labor, and for not just the city council to come back and go through these items,
but for the residents of the city so that we move forward on a project that's been waiting for close to a decade to come to fruition.
And with that, I'll hand it back to you, Chairwoman.
Thank you.
Thank you, Alderman Waggisback.
We heard about those two, I believe, two letters.
If you get them to us, we will make sure they're incorporated into the record.
Alderman Riley made a motion recommending do pass of item number 18.
All those in favor, signify by saying aye.
Opposed?
In the opinion of the Chair, the ayes have it,
and the do pass recommendation will be reported out at the next city council meeting.
Thank you, Mr. Cohen.
Appreciate you.
Item number 19 is the substitute ordinance authorizing the execution of a redevelopment agreement with 111 West Monroe Hotel Landlord LLC
for a repayable term loan to support the Monroe Hotel Office to Hotel Conversion located at 111 West Monroe in the 34th Ward
in an amount not to exceed $50 million in TIF.
There is a substitute ordinance, which has been prepared and sent electronically to everyone,
and Alderman Knudsen makes a motion to accept the substitute ordinance.
All those in favor, signify by saying aye.
Opposed?
In the opinion of the Chair, the ayes have it, and the substitute ordinance is now before the committee
and will be explained by Jeff Cohen.
Thank you.
Good evening, Chair Dowell and members of the Committee on Finance.
For the record, again, my name is Jeffrey Cohen, Managing Deputy Commissioner with the Department of Planning and Developments,
Bureau of Economic Development.
I'm also joined by Bailey Mitchell, Financial Planning Analyst with the Underwriting Division.
We are also joined by representatives of the development team from Prime Group and Capri Interest.
We are here today seeking your favorable consideration and approval of an ordinance authorizing the execution of a redevelopment agreement
between the City and 111 West Monroe Landlord, LLC, a joint venture comprising Prime Group and Capri Interest,
to provide TIF assistance in the form of a $50 million repayable term loan for the purposes of rehabilitating
and converting the low rise of 111 West Monroe into a 307-key boutique hotel.
The Monroe Hotel is located at 111 West Monroe, situated in the 34th Board, represented by Vice Chair Conway,
within the Loop Community Area, LaSalle TIF District, and Central Planning Region.
Alderman Conway has provided a letter of support, as well as Alderman Riley of the 42nd Board.
The LaSalle Central TIF District was established in 2006 and expires in 2030.
The LaSalle Central TIF is characterized by older commercial buildings and mixed-use structures,
many possessing excess vacancies due to ongoing economic and structural shifts involving the Central Business District office properties.
The TIF was designated to provide resources for the rehabilitation for current and new uses, especially projects that involve the district's numerous historic structures, including 111 West Monroe, also known as the Harris Bank and Trust Building, which was designated a city of Chicago landmark in June 2025.
Here is an overhead view of the neighborhood context.
The project is located at the southwest corner of Clark and Monroe Streets, with the primary entrance that will be between Clark and LaSalle on the south side of Monroe.
Here is a photo of the existing exterior of the subject property, known again as the Harris Trust and Savings Bank, built in 1911.
The building was designated a city of Chicago landmark in June 2025 as an excellent representation of two architectural styles, the first being the traditional classical revile skyscraper and an East Tower edition from 1960 designed in the modern idiom.
These are reflective of many other landmark properties within the loop and surrounding neighborhoods.
The lead development entity for the project is 111 West Monroe Hotel Landlord, LLC, comprising of Prime Capri Interest and Prime Capri Interest, a 50-50 joint venture between Prime Group and Capri Capital Interest.
The project architect of record is Stantec, with the general contractor being a joint venture between McHugh and Boa Construction.
Legal counsel is being provided by Marshall Brown and Applegate and Thorne Thompson, and development team is being advised by Heritage Consulting regarding historic tax credit eligibility and compliance, and will work with merchant banks as the lead historic tax credit syndicator.
In addition, CPACE, or commercial property assessed clean energy financing, will be provided by Nuvian Green Capital, a leader in the CPACE industry.
The scope of the project consists of converting 250,000 square feet of vacant, obsolete office space located in the low rise of 111 West Monroe and reactivating nearly 25,000 square feet of previously unused roof area into a boutique hotel flagged by the W, reestablishing the brand's presence in the heart of the loop.
The hotel will contain 307 oversized rooms and has the ability of up to 327, and will feature a 2,000 square foot ballroom and meeting space, two fine dining restaurants and a bar, a world-class spa and fitness center, as well as the reopening of the historic Monroe Club on the penthouse floor of the property, reactivating 21,000 square feet of previously unutilized outdoor space.
The financial incentive request was submitted to DPD via the large community development grant program in spring of 2025, and received Community Development Commission approval in May 2026.
The decision to provide TIF funds as a repayable term loan was reached through a traditional BUT4 test and an assessment of the economic impact of the project.
The decision was further guided by the development teams conducting an extensive outreach process to the lending community, which found the complexity of the project too hard to underwrite.
The property also received a Class L tax abatement, approved in summer of 2026.
Furthermore, the development team uncovered a gap in the current capital markets with their outreach as part of their debt financing strategy,
and there was no additional lenders who were willing to take on the senior loan to fund the $166.5 million project.
The request before you today is to approve a TIF loan not to exceed $50 million or 30% of total project cost.
This approval will complete the capital stack and allow the project to move toward construction commencement immediately.
The project was projected to break ground in August or September of 2026, with major construction to be completed by September 2028 and stabilized operations achieved in the summer of 2029.
The following five slides provide renderings of the proposed project.
Here is the finished rooftop with hotel amenities and food and beverage services, as well as the restored facade of the historic Harris Savings and Bank building.
Here is a rendering of the completed lobby atrium and additional amenities and food and beverages in the rooftop bar and restaurant.
Here is an example of the oversized rooms for the hotel and additional amenities, including an interior pool and fitness center.
The proposed TIF loan will be funded by not more than 30% of total project costs, or a total of $50 million, completing the capital stack,
and will be accompanied by $48 million of developer equity, $18.4 million of historic tax credits, and CPACE loan of up to $50 million.
What's CPACE? Explain CPACE.
So CPACE is the Clean Property, Commercial Property Assessed Clean Energy Financing.
This is a form of financing that is based on the improvements of properties to help with green allocation,
such as upgrading of water, energy efficient systems, and other improvements that create a more greenified building, so to speak.
Thank you.
The proposed TIF loan will fund not more, sorry,
The TIF loan will be dispersed on a quarterly basis upon receipt of requisitions and vetting of eligible incurred costs
by the Bureau's Monitoring and Compliance Division, with regular loan payments commencing upon the receipt of the Certificate of Completion.
The project will be subject to operational and occupancy covenants that require the property to be operated and occupied as a hotel
during the 10-year compliance period.
Furthermore, the project will be subject to standard construction compliance goals for MWBE, City Residency, and Illinois prevailing wage.
Represented here are the economic terms for the TIF loan.
The loan will be structured as a senior interest with subordination to the CPACE financing, given its secondary tax lien status.
As mentioned, funds will be provided on a quarterly basis once eligible costs have been incurred and vetted.
The loan will have a term and compliance period of 10 years, starting from the issuance of the certificate,
and during construction, no interest will accrue, with an interest-only payment commencing upon the receipt of Certificate for a five-year period.
The loan was structured with a balance of providing economically feasible terms and accelerated repayment
to repatriate funds back to the district and taxing bodies.
To achieve this, upon the expiration of the interest-only period, principal and interest payments will be commenced in year six
following a 15-year amortization schedule thereafter.
The interest rate for the loan will be equal to the lesser of the 10-year Treasury yield,
or 10-year SOFR swap rate plus 30 basis points, but will not exceed 5%.
The interest rate will be fixed at the time of RDA closing.
Furthermore, the loan will be memorialized via a mortgage and promissory note between the city and developer,
providing standard non-recourse carve-outs to protect the city's interests.
Furthermore, loan proceeds will only reimburse TIF-eligible costs and will not include the acquisition costs of the property.
DPV supports the project as it will reactivate vacant and obsolete office space,
provide the first new lodging option in the loop in years, support further reactivation of the loop with additional tourists and business travelers,
and will complement the ongoing initiatives in the area.
In addition, the project will create an estimated 280 new permanent jobs and 500 temporary construction jobs,
hire a diverse workforce similar to existing operations on LaSalle Street,
continue to support hiring of a unionized workforce and organized labor represented by existing neutrality agreements with local trade unions,
and it will also invest $166.5 million in total investments, $115 million from private sources.
It will rehabilitate a Chicago landmark, remove 250,000 square feet of obsolete vacant office space,
and address immediate needs for LaSalle Street corridor activation, as well as complement LaSalle Street reimagined initiatives.
This will also generate additional revenue for taxing districts from hotel rooms, sales, and real estate taxes.
Hotels are large generators of tax revenue,
and the department has estimated hotel and sales tax revenue per year of approximately $8.3 million,
equal to almost $250 million over 30 years.
The $2.7 million of real estate tax revenue per year equals about $81 million over that 30-year period,
and $4.8 million annually will be repatriated to the district and taxing bodies from loan interest and principal payments.
In addition, the project will also generate approximately $500,000 to help fund the newly established Tourism Improvement District.
For these reasons, DPD is in support of this project and respectfully requests your approval.
Thank you for your time and consideration.
I, as well as the development team, can take any questions the committee may have.
Thank you, Mr. Cohen.
Any questions?
Alderman Lopez?
Thank you, Chairman.
I moved.
Noticeably absent from the WMBE was the veterans.
Is there a reason why that they are not part of this?
No, they will be.
The 3% aspirational VBE goal will be incorporated,
and I believe the development team could say that on the record.
This ordinance was created prior to the approval of Alderman Villegas' ordinance earlier today.
Okay.
Thank you.
Thank you, Alderman Lopez.
I see you.
With Prime Capri interest,
and I'm happy to confirm on the record that the 3% aspirational commitment to veterans is agreed.
All right.
Did you get his name?
His name is Michael Reshke.
R-E-S-C-H-K-E.
R-E-S-C-H-K-E.
Okay.
Vice Chair Conway.
Thank you, Madam Chairwoman.
Remember a few hours ago I was very benevolent?
Well, now I've come to you asking for a $50 million loan as part of my thing.
That's why.
Yeah.
So what I really do...
I commend DPD here on the structure of this deal in the sense that it is a
construction loan to get the project going.
And then five years from now, once it's stabilized,
the fact that it essentially has an accelerated amortization of 15 years
really incentivizes the developer owner to take out that loan at that point.
And in the meantime, the fact that, I mean, noting that it is a loan,
and then it's also going to be providing tax revenue beyond that.
So I really think it is a great structure.
And Mr. Cohen, by the way, if I didn't explain that very well,
please feel free to clean up the record.
But beyond that, I would ask my benevolent colleagues to support it.
Thank you.
All right.
Motion made by Alderman Conway, by Chair Conway, to approve item number 19.
All those in favor signify by saying aye.
Opposed?
In the opinion of the chair, the ayes have it.
And the substitute ordinance will be, or the do pass recommendation,
will report it out at the next city council meeting.
Thank you, Mr. Cohen.
Item number 20 is one proposed order authorizing charitable solicitation on the public way,
a direct introduction for Amnesty International citywide from September 26 to December 31,
2026.
If there are no objections, these permits are approved and will be placed on file with the clerk.
Can I get a motion for the committee on finance to stand in recess until Thursday, September 24,
2026, at 10 a.m., and reconvene on Thursday, September 24,
2026, at 10 a.m. here in the council chambers?
So moved by Alderman Lee.
All those in favor signify by saying aye.
Aye, opposed?
In the opinion of chair, the ayes have it.
And the committee on finance hereby stands in recess until Thursday, September 24, at 10 a.m.
Thank you.