Good morning, everybody. Happy Monday. The committee on
finance is called to order will now have a roll call to
establish quorum.
At this time, we will begin with Vice chair Conway.
Aldrin laspada.
All.
Alderman Hopkins.
All.
Alderman Hall.
All.
Alderman Mitchell.
All.
Alderman Harris.
I hear you all the man hairs.
Perf.
Perfect. Timing automobile.
All.
Alderman. Lee.
All.
Alderman Ramirez.
All.
Alderman Quinn.
All.
Alderman Lopez.
All.
All the more.
All.
all the more I hear you all the men Curtis
All.
Alderman. O'Shea.
All.
Alderman, Taylor.
All.
Alderman Mosley.
All.
all the
Alderman Rodriguez.
All.
Alderman, Scott Alderman, feature Lopez.
all the
Alderman Burnett's Alderman, Ervin.
All.
Alderman Taliaferro.
All.
all the
Alderman, Cardona.
All.
Alderman waguespack.
All.
Alderman, Rodriguez, Sanchez.
All.
Alderman Ramirez. Rosa.
Alderman Villegas Alderman, mid alderman. Pizzato
Gacha.
got you all them in Vasquez.
Alderman, Riley Alderman Knutson.
Alderman. Martin Alderman Silverstein
Jeremy.
German dolls. Here we have 16 present, we have a quorum at
this time, we'll begin the public comment period. The
public comment period, will be limited to 30 minutes out of
respect for everyone's Time. Each speaker is limited to
three minutes. We have no signers. No speakers that have
signed up to speak to us, remotely. So, we'll begin with
the in-person comment with Isabel Isabel.
Okay, great. Good morning, Cheryl and members of the
committee. My name is Isabelle doable and I'm here on
behalf of the Chicago Federation of Labor. The CFL is
United voice for a 300 Philly, ated unions in a 500,000
union members across Chicago and Cook County. We advocate
for good jobs that provide workers with benefits, or just
letting wages health care and retirement security along
with these projects in about along with this the projects
in development, that make these jobs reality, I'm here to
speak into
How to project?
Two projects.
Two projects first in support of items, three, a
Redevelopment agreement with an allocation of eligible Tif
assistance to be our Congress owner LLC. Also for the
Congress Theater located in the First Ward. This project
will restore the Congress heater into a state-of-the-art
live music venue. In addition to creating new retail, space
and affordable housing. The project is estimated to
generate, 125 permanent full-time, jobs and 200
construction jobs over the past several months to see if
Eleanor Affiliated unions. Have been advocating for a pass
to go jobs at the future Congress leader. And we are
thrilled to say, their thoughts and concerns have been
heard. We are confident this project, will provide a pass
to go jobs and help rebuild. The hospitality industry,
post-pandemic, the labor movement is hopeful and optimistic
about the opportunity. The Congress leader will provide
Chicago, our communities, and Chicago's tourism and
hospitality industry. And we encourage a yes, vote on the
Redevelopment agreement for you today.
I'm a.
I'm also here is because we're fighting for every
development agreement and provision of Tif funds to Hudson.
Michigan Avenue owner, LLC for 2222, South Michigan Avenue,
located in the Third Ward. The project would provide 10
million and $50, to a new hotel. / restaurant, / event
development located at 2222 South Michigan. To see if I won
the Chicago, labor movement are optimistic about the good
jobs. This project will be able to create a new path for
those two jobs and the opportunity for Chicago's tourism
and hospitality industry to grow and flourish as we emerge
from the pandemic, we're happy that this new development
will create a path to create quality career has taken up
with our communities, and we look forward to continuing to
support a world-class tourism industry in Chicago, that
provide
Go.
Good family Strokes.
Good family, structure and drives our communities and ask
for a yes, vote in support of item, for. Thank you. Thank
you, mr. Bell, want to acknowledge all the Mendenhall who
has joined us and we'll be counted towards Quorum. Our next
speaker is Lou weeks.
Good morning, sheridell and members of the Chicago
committee on finance. My name is Lou weeks, I'm the
Executive Vice President of United Here. Local one,
Chicago's Hospitality Workers Union. I'm here today to
express our Union, support for the Tif assistance for both
the Congress theory development and to 222 South Michigan
Avenue. We have met with the development teams and we are
confident that there is a path for both proposed
developments to create good, hospitality jobs for the
community because of this, we hope that you will support
both of these projects. Thank you for your time.
Thank you, Miss.
Thank you, mr. Weeks. Our next speaker is maintenance
Noriega.
Good morning. This is Marvin Noriega. Advocated for the
last two years to make sure that the Congress Theater
Redevelopment, created a path for a good job for the
community.
Sorry I grew up in Logan Square near the Congress Theater.
By the time I was sixteen years old, I was living on my own
and renting out a room, I travel an hour and a half each
way to get to my job. My wages were so low and I only had
enough to afford the rent. I was often hungry.
because,
because I
Because I couldn't afford for my cousins were either have
somewhere to sleep or eat a good meal. One day, I went to
the grocery store. I was so hungry and desperate, I walked
out with some chicken and some rice.
I will.
I was not interested.
I was trying my best to survive like many other young
people are today.
Luckily, two years later, I got a good job at a hotel
downtown. I'm a decent a decent wage and I called forward
to eat healthy and pay my rent. I never stole ever again.
I'm grateful and I found a good Hospitality job. It changed
my life. We need more good. Hospitality job for our young
people job where they can see a future for themselves. So,
respect and look forward to going to work just like I did.
I'm proud that there's a path to good hospitality jobs at
the Congress Theater Redevelopment. This is, this is the
type of economic development that will help our community.
I hope you will support this project. Thank you. Thank you,
mr. Noriega. Our next speaker is Joanna Chambers.
Good morning. My name is Johanna Chambers. I live in the
Third Ward. I am a Hospitality worker and member of Unite
Here. Local one, I ordered you to vote. Yes. On the Tif
42222 South Michigan because there is a commitment from the
developer to create a path to good jobs. In the Third Ward,
I know the impact good jobs makes I meant when I got my
good hospitality jobs at Navy Pier it changed my life. Now
as a bartender, I have excellent health insurance for my
family and I only pay $30 per month. I make enough where I
can pay our bills without stress, I have three children,
and one of them has severe asthma because of my great
health insurance. We work closely with her primary care,
doctor to keep it under control because I work one good
stable. Hospitality job. I have time to spend with my three
kids. We desperately need more good jobs in the Third Ward
that people can raise a family on the development at 2222.
South Michigan has a path to create those kinds of life
changing jobs. I heard you.
Vote. Yes. On the tip.
Vote. Yes. On the 5th for 2222. South Michigan. Thank you.
Thank.
Thank you, Miss Chambers. I'd like to acknowledge all the
men. Brian C. Chill Lopez and alderman ramirez-rosa for
with us in attendance and will be counted toward squirm.
Our last speaker for this morning is George Blake Moore.
I need.
My name is George, Blake Moore and I am a concerned Citizen
and I was watching the race of a speaker's. So seem like me
that I'm unique. Anyway, I'm anti pill
and all these developer space companies.
I'm focused on black people. Getting these jobs, good
contract, and service. These unions are racist to
I can.
I can always use the race card. The chip originally was for
areas that was plighted come by today. Flip the script on
the tip anti-tip
I am anti chip because you only making the rich richer at
the dispenser of a poor people and poor black people. If
you want to have a chip and you won't miss to Blake North,
and to support you, which I don't think you need me too.
But anyways, the ancestors told me to speak to you have
instead of fat on all these job union. Jobs, have a one of
these Burgers aside, 30% of these jobs will go to black
people. All black people want something for nothing. They
want to fuss at a time, you right? Cuz we was kind of sad
when you do all enslaved, us and brought us here and we can
get paid a guy in the hospitality worker, but they used to
be the black people working. These hotels and clean up and
in the kitchen and making up these be
call the
Call Denise Hotel today and see who's there. Something is
wrong with mr. Bake more. And perhaps something is wrong
with black leadership.
Santa.
Something.
Something that perhaps is wrong with them. If they are
solid, they know what I know. But why are they solid figure
it out. Are you going to guarantee that these jobs don't
people going to be working? There, is it a guarantee a set
us back a set aside? Because this was a crime against
humanity, when you America enslaved us, we can get paid.
Nothing for us to catch up. We need a set of fact, I'm anti
Thank.
Thank you mr. Blakemore this concludes the public comment.
We did receive one written public, comment from the
sustainable Englewood initiative, expressing their interest
in hearing more from the DPI, or the discovery Partners
Institute, team of its commitment to pursue link
development. Agreements in the South southwest region and
tomato Johnson's youth employment goals.
So we have a number of items before the committee. Today,
you received the amended agenda by email. I do want to also
acknowledge Alderman Silverstein and aldermen Riley who
have joined us and will be counted towards Quorum will
begin with the approval of the monthly 45 report of the
June 2023, monthly rule, 45 report, what you sent
electronically to everyone, if there are no questions, can
I get a motion to recommend approval of the June report? So
moved by Alderman, Riley, all those in favor, signify by
saying I opposed in the opinion of the chair, the eyes have
it, we have 14 items
Boof.
Booth 14 items on our agenda today. Item number one is from
the Department of Water. It's an ordinance authorizing. A
lease agreement with the Chicago Park District, regarding a
portion of Durkin park for the water supply project. This
is in the 18th Ward. We are joined today by Andria Cheng,
who is the commissioner of the Department of Water
Management. Can you guys start making your way up here?
Please, David Cone Deputy Commissioner Regional partnership
from the Department of Water Management. Joe Jaworski are
acting Chief Financial Officer, aren't delinsky who's the
assistant Corporation counsel supervisor, and the
Department of Law, Steve Lux, the Chief Financial Officer
for the Chicago Park District. Joseph Bornstein senior
counsel for the Chicago Park District and Beth tomlin's.
The deputy chief of operations from Chicago.
Park. The
Park District of the commissioner, commissioner Andrea
Chang will present, the slide deck to the committee.
Thank.
Thank you, chair. Good morning, everyone morning. Today, we
have a for you, this a Joliet please.
It's shop.
Right there, that this one right there.
Great apologies necessary happy for you. These Joliet water
supply agreement with the Chicago Park District lease for
darken Park. So just a little background here, you know, if
you already call the city of Joliet down the southwest
suburbs of Chicago is running out of water are in a ground
water system. Ultimately, the city of Chicago was chosen to
be the preferred water source for their, their new water
source. That was in competition with Hammond Indiana. That
was in January 2021, we negotiated an agreement and back on
April 19th of 2023. The Joliet water supply agreement was
approved by the city council. After that we you know we're
able to establish that this is a
Able to bring.
Able to bring in 30 million dollars of Revenue, a year,
starting in 2030, which is, when the we will begin pumping
water to City of Chicago city of. Joliet, this is the first
water in 40 years of this is very substantial.
And so you don't pass forward in June 2021. The city
council approved an intergovernmental agreement between the
city of Chicago and a Park District to authorize the
transfer of a portion of Durkin Park to the city for used
as part of the Joliet project of Durkin Park is right next
to the pumping station, where the infrastructure we built
for this project as part of that and pursuant to the final
water supply agreement, that was approved. This lease
organs must be approved by July 31st 2023 to be in
compliance with that lease. So I have Dave call in our,
Deputy Commissioner is going to go through the details of
this. Thank you commissioner and chair down members of the
committee. Happy to be here today as the commissioner
mentioned of the ordinance. Before you is the last step
legislatively required to bring the Joliet water initiative
to fruition and was part of the water supply.
And preview.
And previously approved by this body as well as by the city
of Joliet. This is further supported by the IGA in a
governmental agreement that was approved by the city
council and also was subsequently by the park district as
the commissioner mentioned. The city is requiring a small
parcel of land on Durkin Park, where new water
infrastructure will be constructed out of the city is going
to upon closing of that land transfer immediately lease
this property to the park district on a leash that will run
concurrently with the term of this agreement, which is for
100 years. So, the idea really is to facilitate this
property being used going forward by the park district for
recreational purposes and to serve the needs of the
residents of our city. There's really nothing new about
this particular ordinance again. It was envisioned an end
included in the war.
Supply.
Supply agreement. This was just the last piece of the
legislative staff needed to to bring this to complete
fruition. The other thing and it's okay, Commissioners?
Advancing that. Yeah. The, the city of Joliet is not the
only entity that is going to be receiving water from the
city and and paying us a for. It are, the city has reached
out to other communities that are in the southwest suburbs.
Jason to Joliet, and which have the very same, excuse me,
the very same challenge, the Joliet faces that is
underground aquifers that are rapidly depleting. And within
the near future will no longer be able to provide water
other five. Other communities that have joined with the
city of Joliet, to form a new Water Commission in the
southwest suburbs. The Grand Prairie Water Commission. Are
they are Chana Hahn. Cresthill. Minooka Romeoville and
Shorewood. So those communities via Joliet in this
commission, will also become customers of the city of
Chicago water system. It also makes possible even further
expansion of this commission going forward, because there
are other communities in that region that face similar
water challenges. And so therefore, they would now have the
opportunity to join with the city of Joliet. So we also
have a Representatives here as the chair mentioned
Alicia Carr.
the Chicago.
Chicago Park District. You are here to answer any questions
that you may have. But again, it's a relatively
straightforward matter. We ask for your favorable
consideration of the ordinance to facilitate this agreement
moving forward. Thank you.
Beef.
Before we go to question, is there any City money in this
agreement or is there any City money is it does a city?
Have any obligation to expend any dollars? Right? Thank
you. For the, the city is providing financing Upfront for
certain aspects of the infrastructure. But pursuant to the
water supply agreement, the city will be reimbursed in full
for any expenses over the life of the agreement. The cost
of the financing that the city is advancing which was
previously approved as an appropriation by this body will,
the city will be reimbursed for all those costs by adding
charges to the Joliet water rate. So at the end of the day,
Madam chair of the city's cost will be nothing. We are, as
I said, providing some funding up front to help Finance
certain aspects of the infrastructure, but the city will be
reimbursed in full for those costs.
Thank.
Thank you.
Thank you all the Mighty Quinn. Thank you, madam chair. If
you could go back to the slide of the park,
so,
So as you can see this is this hugs. The residential area I
think it is Kedvale. Once Upon a Time you should be in the
13th Ward. What are these structures going to look like?
And I hope you're going to be mindful that you are sharing
a street with residential area. I would hate for this
project to have an adverse impact on on those resume.
For.
For our residents. Thank you for that question. All of the
answer is that the infrastructure that's going to be
constructed? Here is not going to interfere or impede in
any way. The residents enjoyment of this park, the Pizza
Port, the parcel of property, that is the subject of this
ordinance is where an underground water. Reservoir will be
constructed and Joliet is going to pay for putting a brand
new natural turf field on top of that. So that it will be
open to the community for its use and enjoyment in all the
years going forward managed by the Chicago Park District.
The other two Parcels that you see on the right hand side
of the slide to the south of the South West pumping
station. Those are where two building two new pump stations
will be constructed that are similar in height and, and
look to the existing pumping station of that property is
not currently part of the park is part of the
Set.
City of South West pumping station footprint. And so
therefore, there's not going to be any impediment to the to
the residents enjoying that. I I should add that. As part
of this, the city of Joliet in addition to paying, for the
infrastructure is also providing funding to the park,
district to construct, new amenities and improvements. Not
just this park, but 23 surrounding parks in that
neighborhood rainy, Bogan and Scottsdale parks are all
Going.
Going to receive improvements and new amenities paid for by
the city of Joliet, and of course, constructed by the park
district, and park district has been engaged with the
community to ask the community residents, what they would
like to see. So I'm we're confident that this is not going
to win. Anyway, impede the enjoyment of the residents of
this so important Park, thank you. And when we do, have not
acknowledged him enough support from Alderman, Curtis
Alderman, Taylor all the way Moseley, I see you. We can't
you towards warm.
Thank.
Thank you, madam chair, and all them and Mitchell.
Thank you, madam. Share, can you tell me you, you talked
about the city being reimbursed? You never said the amount.
What is the amount that we're paying for upfront? The
initial appropriation authorized by the city council was 65
million dollars and that is upfront financing to pay for
certain aspects of the infrastructure. But again, of the
city will be reimbursed, reimbursed in full for those costs
through the Joliet water rate that they're being charged.
What type of improvements would happen? If with the park
district and do they are have they already started
conversations with the community because I was putting up
65 million dollars and will get reimbursed. And I got a
question for the water department after this.
I want to know what we're actually.
I want to know what we're actually getting. What is the
benefit of the community because to Alderman quiz on, you
will be disturbing those neighbors. As cuz it's going to be
some trucks is going to be something. And so what is the
community benefit, what is the park district in the
residents actually getting that somewhere in a
presentation.
Yeah.
Yes.
Yes, ma'am. The the answer is the, the, the park district
in the community, are receiving substantial funds from the
city of Joliet to build new amenities and improvements at
this park and the three surrounding Parks the image is that
amount. Pardon me, the amount of the amount of money that
and I should mention the 65 million-dollar appropriation
that I alluded to. That is not for parking permits. That is
just for the infrastructure, the park district is receiving
and I'll have to bet Tomlin. Yes, calling on you, the
answer this question.
Let me.
Level.
Hello, hello.
I think.
Thank you for the question. How about Amazon from the
Chicago Park District? There's three sets of money that
we're getting from the city of Joliet, part of this
project. The first is a 1.75 million dollar flat fee. And
we're also getting reimbursed for the cost of the
easements, which is beat will be around $500,000, and then
thirdly weren't their funding. The cost of the park on top
of the reservoir, which is still being calculated, but all
that will be covered by the city of joy.
It is. Well, we started working with the community and
2020-21 disgusting and a normal. I sort of what the
improvements that committee would like to see out here, we
did a survey, received over 160 responses from the
community and are now going through to prioritize, which
improvements. We want to do first, so they're, they're very
good. They'll be improvements that are very local to what
the community wants. A new spray future ball Field.
Improvements on those sort of amenities, but I'm we're
working very closely with the community and have a good
relationship. Our goal is to design and construct. I'm
starting this on next year so that the parts will be
improved before. The Durkin, the Joliet construction starts
is the
Is it possible for us to get a hold of some data from those
surveys? Just to see what the community is asking for. Next
question is for the water department. You talked about
these other local cities wanting water where we on,
receiving payment for water that we are already giving out.
I remember and one of the very first meeting, as we talked
about payment, we not get payment for water from other
districts that are getting water from us. This is a lot of
money in Seoul.
where,
Where are we with painting?
Where are we with payments from other areas that Olaf money
for water?
So, you know, there is obviously 47 DirectX that we have
contracts with. I think we can provide the updated ones of
the few that we've had a history of having trouble
connecting to the chair, but the city of Joliet, has a
excellent rating if I naturally. So I think we can count on
collections from that in the future.
and,
And we can provide the specifics in to you to the chair but
that was one of the questions that I raised in my
briefings. They are there are some communities that are
showing some improvement. But I don't think that you want
to reveal specifically those Suburban areas today in a
public forum like this. So we can get that information to
you through the shell, Madam chair with all due respect.
We're asking the city of Chicago to put up a 65 million
dollars. That's a lot of money that we can use other places
and why I get, we got to have some accountability for what
we're asking. Cuz we will go up on taxes, will do a whole
bunch of other things to, to counter what we're not
collecting. And so, the question that I'm asking is not
just for the co-workers is, it should be a conversation
that we have a, and this is not me beating up on other
suburbs, who can't afford it. It's us showing
accountability for spending the
So, that's why.
so, that's why I
So that's why I get that information to you through the
chair and you have between now and when we vote on whether
or not, you can support that. But there is information that
will answer your question directly. I don't think that the
Department of Water wanted to put those communities out on
blast in the public forum, but there have been some
improvements and we will get that information to you. Thank
you madam Scherer. That's my question.
All by Cher Conway sub. Just so, I understand. And you're
so it seems like a another benefit of the project as
business is, we're going to receive 30 plus million dollars
a year. As the city for 93 straight years. Is that, is that
correct? I just want to make sure I understand that piece,
right? Yes, that is correct. Thank you. Thank you. I want
to acknowledge all the monroes. Ana Rodriguez, Sanchez and
Alderman. Villegas bookworm.
is the
Is there a motion to recommend approval? Yes, all the
Masters Auto.
Thank.
Thank you.
Thank you, madam chair. Is that 30 million a year? Does it
go up? Or is it level at 30 million community? So that's
what we think our Baseline is so. He does have potential
increase if they add communities that they serve. Thank
you, thank you. And I'm sure.
Commence, Passat.
Commence pesado.
Commence pasado. Is there a motion to recommend approval of
this item?
Move by vice-chair Conway, all those in favor. Signify by
saying I I opposed in the opinion of the chair, the eyes
have it in the motion carries, we will report to do pass
recommendation at the next city council meeting. Thank you
all very much and want to introduce our acting.
Chief Financial Officer. Jill Jaworski. I know you're going
to come before us but this is your first time before the
city council, do you want to say anything? Or thank you
very much. Erin Dowell. Good to see all the members of the
committee. I really looking forward to working with all of
you going forward. This is a start of the position about I
guess 7 weeks ago. And it's very, very exciting getting to
know everyone. Some of you have gotten a chance to meet
with but most of you I have not and very much looking
forward to a collaborative relationship on my want. You to
know my door is open and p.m. please call reach out with
any questions you have. I'm happy to spend as much time as
necessary answering your questions and making sure that
when we appear before you you're as ready as possible to
understand understand the issues in front of you.
Thank you. Very
Thank you very much. Thank you. I'm I want to acknowledge
Alderman Cruz. Who is inanna member who joined us. Today we
will now move to the discussion for items. Number two and
three which will be taken together but we will vote on them
separately then so four items. Number two and three we have
presenting the department of Planning and Development item.
Number to is an ordinance concerning the Third Amendment to
the Fullerton. Milwaukee, Tif Redevelopment project and
plan in the first 26 30th 31st and 35th Ward and an
ordinance concerning a Redevelopment agreement with an
allocation of eligible. Tif increment financing assistance
to be our Congress owner, LLC Congress Theatres NFP for the
renovation of a facility called the Congress Theater at
2135 North Milwaukee in the First Ward.
Tell.
Tim.
Tim Jeffries from the Department of planning and managing.
Deputy Commissioner is with us today.
let's,
Let's see. Okay, either number 3 has a substitute
that's,
that's substitute with email to everyone. Can I get a
motion to accept the substitute so? Move by alderman,
laspada.
We will now consider item. Number three as a substitute. I
want to acknowledge all the main Curtis. We just passed the
Durkin water.
The.
Supply issue. So I'm glad to see you. It went well.
Got.
Got orange on today. And when you get a chance, can you
also talk to Alderman Taylor about some of the community
park improvements that you're expecting there? Cuz she
asked that question and I think your best man. Thank you.
Thank.
Thanks your devil and good morning, members of finance
committee for the record. My name is Tim Jeffries managing,
Deputy Commissioner and the department of Planning and
Development. I'm here today to request for approval of two
related ordinances. The first item number two, is a minor
amendments to the Fullerton. Milwaukee tax increment,
financing district with the primary purpose of extending,
the life of the TIF district for an additional term of
three years. Agenda item, number three provides Authority
for the city to enter into a Redevelopment agreement with
BR Congress owner.
I'll see. And
I'll see and Congress Theater NFP. No, authorized the use of
up to 27 million dollars into funding to support. The
rehabilitation of the historic Congress Theater. These
items are directly related to one another and the approval
of both is necessary to advance the Redevelopment of the
Congress.
I Stay.
I stated the first item is a short-term, extension of the
Fullerton. Milwaukee TIF district shown here are the
boundaries of that shift which is located in portions of
the first 26, 31st and 35th Wards in the Logan Square in
Avondale Community areas in Milwaukee is currently
scheduled to expire on December 31st 2024. Congress Theater
project, cannot however reasonably in cursive fishing tip,
eligible, costs or complete Construction in that limited
time. Remaining in order to address this, the Illinois
General Assembly authorize. An extension of the districts
in the most previous legislative session, although that
action allows the city to extend the district, by up to 12
years. It is the opinion of BPD that the overall market
conditions of the area would likely not warrants an
extension without these extenuating circumstances. Given
that DVD is requesting only to extend the TIF district 43
years of the time necessary to complete the Congress
Theater project.
The second item today is the approval of the Tif funds, for
the Redevelopment of the Congress Theater which is located
at 2135. North Milwaukee Avenue and is within the Logan
Square community area, and the first one
The subject property highlighted in red is located at the
corner of Milwaukee Avenue and Rockwell Avenue roughly
halfway between the cta's, Western Ave Avenue and
California. Blue Line stations, and the primary commercial
centers of activity in Wicker. Park in Logan Square
Community areas,
Show.
Shown here is the current exterior conditions of the
Congress Theater. The building was originally constructed
in 1926, as a 2900 seat. Movie Palace the loop winter and
Friends. One Chicago's largest cinema operators, the
Congress was built in a typical theater block style, which
combines a theater with ground floor retail and apartment
buildings. At one point, the Congress Theater was one of
more than thirty of these movie palaces of a similar size
but only a handful now or made the Congress was used
continually as a movie theater until around the 1980s, when
it began to be used more frequently as a concert venue.
Based.
Based on the building's architectural excellence and
historic nature. The Congress was designated as a city of
Chicago landmark in August 2000, the designation was
notable in that. It was not limited to the building's
exterior. But also included the auditorium itself which is
shown here as well as a theater Lobby and even some of the
historic lighting fixtures after a series of violations.
However, the former owner close the theater in 2013 and it
has been vacant since that time over the last decade the
teary rhaetian of the of the theater has importunately
accelerated significantly and has seen a great deal damage
in that time. The deterioration is evident in this photo
here, that's leading up to the second-story balcony, the
damage to the walls and the ceiling is obvious. These are
not cosmetic issues are the results of significant water
infiltration into the building as a whole
I further evidence of this, deterioration in water, damage
can see if it can be seen in one of the stairwells in the
interior Lobby, one of the historic elements. At the same
time though, the history of the building is obvious and
Ironworks. The Gilded columns in decorative arches.
Overall, though, the deterioration of the building has
reached a point where the future of the Congress as a whole
May soon be in Jeopardy. As recently as 2013, the facility
was operational. And it, 27, or 2015, rather a public
meeting was held in the building by the deterioration over.
The past, decade has been so aggressive though that neither
is possible. Today building conditions or simply not safe
enough to allow access to the General Public.
The car.
The current proposal before you would, however, fully
restore. The Congress Theater. Has a state-of-the-art 3500
seat. Live music venue will be operated by AEG presents.
The project would also include the construction of 13,000
square foot feet of retail space. Along the Milwaukee
Avenue, 23,000 square feet of office space. Dedicated to
nonprofits and Community groups and the development of 16
residential units, 14 of which will be affordable. The
scope of work includes a significant amount of exterior
stabilization and a roof replacement. The total rehab of
the Interior spaces including the building systems and the
restoration of the the theaters historic features including
the Marquis, the lobby spaces and interior fixtures. If
approved this Redevelopment project will be led by bomb
revision.
Well known.
Well-known chicago-based developer with a well-established
track record in successfully completing historic
preservation projects. They will be pursuing the project in
partnership with AEG presents who operate the theater
portion of the building after completion.
Obvious to me.
The estimated total project cost of construction. For this
project is approximately 87.8 million dollars up to 27
million dollars of that budget or 30.7% is supposed to come
from to the remaining funds include 20.5 million in equity,
and 23.8 million dollars in lender financing, a paste at
and 10.5 billion dollars in historic tax credits.
If?
If approved the Redevelopment agreement will will reimburse
the developer for up to 27 million dollars in tips.
Eligible costs are this reimbursement will be provided as
to equal payments of 13.5 million with the first made upon
issuance of the certificate of completion. And 2nd at the
one-year anniversary of the issuance of the certificate.
The city's investment will be protected by Provisions in
the RDA that require at least 75% of the retail commercial
and they are all units. Be at least an occupied and that
AEG continuously operate the theater for no less than ten
years. At least conditions are not met than the city has
the right to lean the property in order to recapture
previously disbursed in addition, to the affordable housing
units, the RDA also requires that the developer provide
commercial spaces, a trance. There are no greater than 75%
of the neighborhood market rate. Additionally, these races
must also be leased to locally-owned businesses
neighborhood.
Or local art.
Or local artists.
One.
Once.
Once complete, the project will see this Congress Theater
fully. Redeveloped with its historic elements are stored
including the Marquis shown in this rendering.
Set.
Similarly, the project will maintain the historic Integrity
of the Interior will still modernizing the facility. In
order to ensure that the building remains part of the
community for another hundred years,
Over.
Overall DVD. Believe the use of Tif is critical to ensuring
the rehabilitation of the Congress. Although the RTA
provides a developer with a significant amount of Tif, the
project is an extremely complex one with extraordinary
costs associated with the restoration of the historic
elements and the overall development, constraints placed on
the property from that designation of just wear contacts,
the cost to wreck lee attributable to the congress's.
Historic elements is an estimated 25.7 million dollars.
Give.
Given that DVDs analysis, found that the use of public
funds is a necessity and believes that this development
will not move forward without an investment of public
funds. Despite those cost, however, the project will still
deliver significant benefits to the community. And the
city, the project was first and foremost results in the
restoration of a city of Chicago landmark and the
reactivation of a building has been vacant for more than a
decade yardi. I also provides a significant number of
community benefits including the development of 14
affordable housing units, nearly 90% of the units in the
building as well as the creation of dedicated space for
local businesses.
Community organizations.
Community organizations at below-market rents. It's for
these reasons that the project has built a coalition of
support from both neighborhood of chicago-based
organizations, including the late, Logan Square, Chamber of
Commerce preservation. Chicago in the Chicago Federation of
Labor. Likewise dpd is also supportive of the projects,
requested you. So Tiff and we asked the committee for its
favorable consideration of both requests.
I almost.
I'm also.
I also joined today by Scott Goldman and Andrew Scott from
the development team, and I'm happy to answer any questions
you might have at this time.
Thank.
Thank you. Tim. Before we go to Alderman laspada, we have
some questions. You can wrap up, you want to be the last
speaker, the first speaker
Can.
Can you tell me that that tip district is a is in compass?
Has a number of all the men I want to make sure that all
the alderman, support the extension, all the affected,
automatic support the extension.
Yes, that's for you too. If we worked with some other than
the spot on he's spoken to his colleagues and I were there
also. OK, Google, a number of questions on on the
Chief portion of the of the ordinance. I noticed it looks
like that if its 195 million but the Congress Theater
portions, only 27 million is the other is the the Delta
there is already been spent, or can you explain that his
daughter 95? That's in the, the the first time we were
referring to is in the the designation by the right.
That number sets, the total amount of funds that can be
spent in any given Tif were allowed. The city is allowed to
change that to adjust for CPI plus 5%. So it's just the
cap. The theoretical cap, how much can be spent all of the
details of how we spent that money in the, in the past are
in are in a report. I can get those for you but essentially
you just fine with that involve past. I know it's there but
they're unrelated numbers is a huge. Huge Delta. They're
also in that I saw there was a it look like there was a
deferred interest subsidy for 7.19 outside daycare, hundred
million, which is the 1000, which is something I've never
seen. Maybe you can speak to, like, why should the city be
paying because
The valley.
Developer shows.
Developer chose to finance. This with debt instead of
equity for example. So the on the first part that those
costs categories, those are statutory in the act, so we
just matched them. They're allowed to shift once they're
set, but if you put 0 in them, you can never spend the
money on those. So for daycare, for example, the city has
never been able to quite figure it out that that the
requirements of the requirements of Tiff and the
theoretical ability to use them on daycare. They just don't
match operationally. So those are in there just to ensure
that if something changes in the future or protected, but
we don't intend on spending those monies in those exact
ways.
and,
Can I?
And I also saw the the on the Congress Theater part the
Deferred development fee of 5.9 million seems like a big
number for an 87 million dollar project. Can you explain
why when wild after Scott, Goldman explain it, but it is a
it's a way that they are able to maximize how much they
could leverage from from historic tax credits, but it's got
its name.
All right, there we go. By Amscot from The Velveteen, nice
to meet everybody so that if her development fee is
utilizing historic tax, credits that which we do a lot of
his work Redevelopment. What happens if there's a federal
tax credit created as a result of the improvements that you
invest in the property and included in that bucket is
something called a development fee, the development fee is
a statutory part of historic tax credits. You quote, about
10 to 13% of the total development cost is factored into
the bucket in the credit is a function that valda fee to
the incentive for everybody involved. To maximize it on the
kids actually not paid out the developer, it's just used to
maximize the credit credits been sold to a bank who
provides the equity to subsidize the project and so that
credit then gets re contribute to the project as a source
so it's really sort of like a journal entry in accounting.
If you think about it, ask that contrasted. It's not an
actual payment of DNA.
so,
set a
So the developer fee is not something it's paid to use the
developer, am I okay. That was the, that was the question
that uses animal sources. I'll just had, this is something
that's fairly common for are my colleagues in the
Department of Housing, but they maximizer there credits
like this, not so much for us, but we are using it here
over again. That's that's fantastic. The other thing, I
thought it was very unusual about this. This contract is I
saw the portion on PDF
30.
13, that's a
13 that said, if the price
13 that said if the project cost is less than 87.8 million
dollars, that the chief gets reduced that doesn't mean that
is literally disincentivizing Scott from finding
cost-saving. So I I don't want know why we include
something something on that's that has been in there.
Certainly never ERD. I've worked on I think it's it's a
fight with a lot of are the work they were doing it.
Speaking of fine balance? Yes, to your appointed, it seeks
it. But it also make sure that they're coming to the table
with a project that is defined as closely as correctly as
possible. So that when they go, They're not misrepresenting
something of a budget that hat. If we didn't have this in,
the baby are coming in for a two million-dollar. If asked
and they suddenly find 2 million dollars in savings. Do you
know what's
if I,
If that works.
If that were true why would the city participate in it? So
it's balancing the necessity of the financial analysis and
establishing the butt for but also making sure that were
given the project but it needs to maybe it's something we
should consider in the future changing but that that that's
what actually answered that. Madame chairman that's all the
questions I have in. Thank you. Thank you sir. Thank you by
Cher, Conway, Alderman, Taylor.
Thank.
Thank you. My
Thank you, Matt.
Thank you, madam chair. How are you? I was like, you are in
a building.
What?
What we're not currently control in a building to building
is currently controlled by a receiver, through the court
system. So that, you know, the previous developer, when do
the bankruptcy, and the receiver took over, there's a
property management firm that currently secures that it
manages. The building is secure and I'm just concerned
about more damage excited to get started right away. Right
after we get through this process, we're going to go and
secure the building. There's some openings on the roof that
have been a source of water damage that we've got guys
ready to go as soon as we can access it. How old is the
building in twenties? I think it might be 1926 or 29,
remember correctly.
100 years old.
Can.
Can you go back to the presentation where it talks about
the finances?
Finance.
Financing.
this is,
the his
The historic tax credit is this getting historical status
College Alderman, Urban, as an alderman Taliaferro, who
joined us. I see you back. Then was joined us, will be
counted toward squirm, and our next Quest.
Can come spray.
Comes from Alderman Villegas.
Thank.
Thank you, thank you, madam chair. Tim. What's what's the
property taxes on his property now and what are the
projected? Or every Texas months since I renovated? I'll
need to get you those both through the chair, I don't have
them now. I mean, it's the app to get them to you through
the chair. And then there is a m w b component. To this
Redevelopment vendors are yet with the prime vendors are.
As yet, as you may be aware, we're finishing up the
Redevelopment of the remote with you here right now and we
did we see mwbe is it the 26 and 6 oz of floor? Not a
ceiling. You know the only items with respect nwb for
vendors. That would not be locally, sourced would be the
very specific AV for the lighting equipment that age, you
will use and break in for a venue of this quality.
Pictures of the.
Pictures of 3500 person. Theater going to do Premier Events.
This is AG's Premiere episode in Chicago. So those vendors
they Source, typically internationally, but outside of that
we're very much committed and have you just said we have
another mother and Tim to the new documents reflect the dbe
goals that are that are just cancel past couple years ago.
And looks like we might pass on Wednesday to know because
if it goes with the
It doesn't.
It does not know. Okay goes with the code of the provisions
that apply to the certain sections that that are very
specifically near or around the mbwb. I like to talk to you
afterwards corporate debt until he's already a thank you.
Thank you all the way. In Vieques almond laspada.
Thank you so much. Dear colleagues. I really use me all
them Espada. Alderman, Lopez is racist and Alderman Lopez.
Thank you, chairman.
Actually.
I actually just wanted to ask with regards to comments at
two of our colleagues brought up with regards to updating
the language in these agreements. I know, even last time we
had numerous times we discussed bringing the language to be
more up to speed as opposed to just a routine matter of
usage. Is that something that dpd is actually looking to
ask to take a
On itself or is that something?
On itself or is that something that we need city council
action to move forward on?
Addicted.
Jen.
Jenna.
Generally DVD works with our colleagues in the Department
of Housing and construction compliance Division and they
follow what is in the code. It's, it's, it's difficult for
us to deploy these things on an ad-hoc basis,
project-by-project. So if we follow, it's in the code right
now. I don't think it's a matter of being an ad hoc. I
think we've heard over 28 plus years in this body Alderman,
ask for certain things to be incorporated are included. So
perhaps chairman, that might be a signal for us to maybe
have a working group together with the department so that
we can make sure that everything that were asking is
incorporated and we're not just using language from
23.
23 years ago in tips were first introduced. Thank you.
Thank you all the men Lopez alsman was starting to think
you so very much, appreciate the opportunity. Very much to
bring this forward, actually. I was a Residence Inn on
Alderman in the First Ward, The First Time, a developer
came to us with this project, I was in the community
meeting on the
And we are.
And we asked about what are the community benefits for this
development and the previous developer said to his, well,
the rehab of the theater is between the benefit is the best
we have to offer. They wanted to do on one side of the
building. Can you bring up the site that shows the actual
building for us?
if I do one more for
on the side that we're looking at your, they wanted to
create essentially, a staff list Hotel, staff list hotels
and not just not having a path to go down to pets and no
jobs on that side of the development on the retail spaces
of the building. The there was a handshake agreement for
offering them to local entrepreneurs. But then I I
personally asked in the meeting while what is, what's the
rent that you're going to be offering to folks? And they
said probably about $40 a square foot. Well, rents like
that in Logan Square, art completely opting out, local
entrepreneurs. So when we talked about putting things in
writing and actually putting new things in writing, that's
what we've done with this Redevelopment agreement, not only
asked him shared the whole side that we're looking at here
is going to be 14.
6.
60.
16 units as affordable housing. So if you work at your
Sika, Edgerton Elementary down the street. If you're
working at some of these cafes and restaurants will be able
to walk up stairs to your apartment if that's what you
choose. But on the side of the building, that were not
looking at their converting, the second and third floors to
meeting and work spaces for nonprofits and arts groups is
mean to organizations in Logan Square. How do I know that
we actually wrote that in to the RTA? How do we know the
rents are going to be a fordable? We wrote that in to the
RTA to the best of my knowledge into our conversations?
This may be one of the first times at PPD is actually
written enforceable language on commercial space,
affordability into a Redevelopment agreement. We asked for
these benefits because we actually held a community meeting
with our residents saying. We know that this is going to
take to to bring it forward. So what are the benefits that
make
Worthwhile to you. And so what our residents ask for is
what we are delivering with this project. And a lot of
folks brought up that, but for test, which goes back to the
idea of hay, but for Tif funding going into this does the
building get redeveloped. And it doesn't, we are we're on
two converging pad right now. Diverging paths. I should say
one leads to the demolition of this building. The other
What?
Which way?
Which we got to select today is for the complete rehab of
this as a genuine community development project. Those
those are the very start choices and I will just close for
you by saying, I really believe in what we're doing, and
I'll say, on the Tif piece, the Fullerton Milwaukee Tiff,
we are asking for time, not money, time, not much rain up
until a deadline, that we would not be able to get you were
completed on time. And so that is why we are seeking this
extension. So I hope that answers the full questions, you
all don't even see on this map. If you looked on any side
of this building, it is flanked by Massive vacant, lots.
And what we will do in part by energizing this is week,
capitalized, productive development, all up and down this
quarter. So I'm really excited for what we have. Now up to
me to do today,
Cute. Thank you all the men laspada. I drove by the
Congress Hotel Friday night. Just to see what I thought of
it. I admire you for taking this on because I can see if
this gets done that it opens up a lot of opportunity to
improve Milwaukee Avenue, which is looks better to the
South is at South and not as good going north.
Is there?
Is there a motion to write?
Is there a motion to recommend approval of item? Number
two,
turn.
The move by Alderman. Ervin was that?
All.
All those in favor. Signify by saying, I all those opposed
in the opinion of the chair, the eyes have, it will report.
The do pass recommendation of this ordinance out at the
next city council meeting. Now, is there a motion to
recommend approval item? The Substitute ordinance for item
number 3, which is for the theater itself.
So,
Some.
So moved by all the men Taylor all those in favor. Signify
by saying, I all those opposed in the opinion of the chair,
the eyes have it will report that matter out at the next
city council meeting. Congratulations, all venomous spider.
I'm on.
Item number for is an ordinance, recommending a proposed
ordinance concerning Redevelopment agreement with the
provision of tax increment. Financing funds for the Hudson
Michigan Avenue owner LLC for the construction of very
income residential units commercial retail and event space
at 2222 South Michigan Avenue. In the Third Ward, we're
joined by Tim Jeffries managing. Deputy Commissioner of the
Department of Planning and Development will explain this
wonderful project to my colleagues. Good morning again.
Church owl members of the finance committee Jim Jefferies.
Managing Deputy Commissioner the department of planning and
development.
Dislike.
this is,
This item request your approval of a Redevelopment agreement
between the city and Hudson. Michigan Avenue owner, LLC for
the purpose of authorizing, the use of up to $10 in tips
Bonds, in order to redevelop the historic Hudson Motor,
Company building,
Something.
Subject property is located at 2222 South Michigan Avenue,
which is in the near side, near Southside Community area
and the Michigan Cermak TIF district the property subject.
Alder is the Third Ward.
Shown here is a overhead view of the neighborhood with
2222. South Michigan. Highlighted subject property is
located near the southeast corner of Michigan and Cermak
and is in close proximity to both place. And this ETA is
green. Cermak Green Line Station.
Other.
The property is the former Hudson Motor Company building a
contributing property in the motor row, Landmark District
by which is primarily located on Michigan Avenue, from 14th
Street to 25th Street by the property was originally
constructed in 1922 and was designed by Alfred alschuler a
prominent Chicago School architect who also designed the
London guarantee building and the former goldblatt's
department store building at 4700 South Ashland Avenue.
Turn on hue.
Shown here is the interior of the building's. Former first
floor showroom. As you can see, the historic features here
including the tiled floor, and decorative, columns, remain
largely intact. That said the building, the majority of the
building has experienced heavy deterioration and requires a
significant investment in order to bring it into a state of
good repair.
The pro.
The project will renovate. This 130,000 square foot. Hudson
Motor Company building its approximately 38 residential
units, 20 of which will be affordable and approximately
51000 square feet of commercial. Use of the space, will
include a restaurants and event space at 18 Key hotel as
well as a rooftop pool and bar. The scope of work for the
project is significant and includes a total replacement of
the existing Building Systems. A full interior build-out
Roof Inn masonry replacement as well as site work and
Foundation repairs. In total, the project is a full gut
rehab and Rehabilitation of the building.
Add a
A developer for this project is Hudson Michigan Avenue
owner, LLC, its principles or Israel, idonije, a former
player for the Chicago Bears and Tibor Kellerman from
kelemen Camano, Investments.
At the tow.
The total cost of construction is an estimated 62.5 million
dollars is approved. The agreement authorizes dpd to
provide up to $10 in Combined, Tif funds as both a grant
and a loan. In addition to these funds, the capital stack
includes $10 in equity, 37.5 million dollars in lender
financing and 5.2 million in historic tax credits.
As they.
Estate.
As stated the Redevelopment agreement is structured to
provide the developer with up to 10 million dollars in
tips, dispersant to discreet ways. The first is a 5
million-dollar loan will be provided to the developer
through an escrow with buns, made accessible during
construction. After all other sources have been expended,
this one will have a below-market interest rate of no
greater than 4%, and the develop development will begin
making payments on the loan after the issuance of the
certificate of completion. The one who have a 30-year
amortization schedule, but mature after 10 years at which
time, any remaining principal balance, plus accrued
interest will be do, the city's debt will be secured by a
mortgage on behalf of the city recorded against the
property of the remaining five million dollars. In City
funds will be provided us. Grants associated with the cost
of the restoration of historic elements, the funds will be
paid out into equal installments of 2.5 million dollars
with the first made on the issuance of the Sea of sea and
the second
The.
The one-year anniversary of the issuance both sources will
additionally, be protected by Provisions in the RTA that
require that the project be continuously. Continuously
operational for term of 10 years and they maintain
occupancy for no less than no less than 75% of both the
residential and Retail spaces. If the developer violates
these conditions or sells the property during the
compliance. The city has a right to recapture any
Obviously, the Spurs.
Obviously, disburse the funds.
What?
When?
Once completed the interior of the building specifically,
the ground floor restaurant is expected to look something
like this and have a speakeasy thing.
And they.
And this is the exterior rendering of the property which
maintains the historic terracotta facade. I you can also
see the roof deck with a pool and restaurant above and in
an effort to maintain the historic character of the
property. These elements will not be visible from the
public way.
Over.
Overall DVD is highly supportive of the proposed. Project
will not only restore a city of Chicago landmark and
maintain the historic Integrity of motor row, but it's also
also Advanced with a critical Redevelopment site that has
been a long-term priority for the neighborhood.
Additionally, has the support of a number of neighborhood
and chicago-based Community groups, including the two that
you heard from today, the Chicago Federation of Labor and
Unite Here. And finally, the project will build on the
broader Citywide goal of establishing motor row, as a bra
is an Entertainment District that supports and complements
McCormick Place for all these reasons, dpd is recommending
the use of Tif to support the project.
I'll
I like to thank the committee for your favorite. We request
of this item. I'm also joined today by Israel. Idonije,
Katie janky. Dale and amarone from the development team and
we're happy to answer any questions. You might have. Are
there any questions for my colleagues on this?
Yeah.
Yes, all the manly. Thank you for a woman and not a
question about a comment. I just want to pass on this
today. I'm excited for the opportunity for the area.
Obviously had lived near Brides neighboring on my ward and
looking forward to the addition and enhancement to this
area. So
that's,
That's why.
That's what. Yes, on this guy's thank. Thank you very much.
The other questions all the men, Hopkins, we record you as
being here for the Quorum all the way Mitchell and as usual
pack project, that's the only contact I Echo the sentiments
of but I would have been a great project. Thank you very
much.
All.
Alderman Villegas.
How?
How did how did this project? Why is it a loan versus just
a straight-up tipped in reviewing the project in the
overall budget? This is what we felt was needed. What was
The project needed to.
The project needed. 10 million dollars, gross five million
of our assessment was could be through a grant, the other 5
million dollars like a lot of developers. There's just
access to Capital challenge these days and when Capital can
be identified is incredibly expensive and so we felt that
we could Advance the project which was our goal, most
effectively most in a way that you know
Maximize our role as stewards by saying will give you the
money that you need. That you're missing right now, but we
believe that your project and carry it, carry this debt
without a grant. So it got the 5 million as the grant,
which we didn't think they could carry. The five million is
alone. Now, this is a good project. I was just wondering
how the process for determining whether a loan vs. The
straight up Tiff. But this is an exciting project and
congratulations to thank you, Sharon Alderman, more. Thank,
you know, there's some people's concerns about using self
money and what they called where they don't consider
blighted areas, but this is why I appreciate this being
alone. And that's something I can support. But I recall
something like this happened in our community over in
Inglewood. So how can we make sure that this long is paid
back and and, and not get lost?
Between MN.
Between administration's because I we had that happened once
before and I and I want to see what is in what documents
that say. This is a long and and and and and have to be
paid back within this time. And what is that time frame? So
it's the document. It's recorded in the document that is in
the Redevelopment agreement with your voting on today. So
it's in that, it'll be executed and after it's executed, it
will be recorded against title. So it exists in a
permanently on the title until the Redevelopment agreement
is, is satisfied for the timer 10 years. So it's so nice
and which this whole development makes up. And but if
somebody can pull that piece out on me, that would be
helpful and on, and off at my answer, my own question when
we do,
Project.
I dislike this, especially in the South Loop in downtown
area and all the stuff that come in a while cuz only new
construction right now, I don't have can be new
construction or rehab. Okay. So when does this qualify for
that? And if so, what estimated cost of nof contribution to
the NOS one will come out of this. I don't know off the top
of my head, if this isn't an nof qualifying area, my gut
says no
It's not.
If not, it's not.
If not, it's not a. So it wouldn't be an option for this
project, you'll guess is no my gut says no. Yes, I think
it's because it's I'll confirm and I get to the answer to
the chair, but I think thanks north of that. The highway or
not in the area. Thank you, thank you, thank you.
Almond Hopkins. Thank you, not a, not a question, but a
comment and just had my voice of full support for the sub
staining project and commend, you for your leadership and
just simply point out in a little historical perspective.
This is a great example of an idea that is too powerful to
die redeveloping. And branding, with the identity of
Motorola's, an idea that's been discussed for three
decades. It is not a New Concept and finally significant
progress is being made and it's exciting to see. This is
one of the many steps that will lead to the complete
economic revitalization of this community. Not only for its
longtime residents, but for new residence, new businesses,
it's really exciting to see and I'm pleased devotie on this
proposal is outstanding use of tip money. This is exactly
what tip money is designed to do. I'm to spark
Redevelopment and a create a beautiful neighborhood for
business and residents alike. Thank you. Madam.
Thank you. I Mr. Idonije. Would you please speak to your
project? So I don't have to I think you do a great job of
that.
Morning. My name is Ezreal down to say for the record that
Madam chair. The committee. Thank you, we embarked on this
Project's, 2017 on the South Loop Vision was to add value
to the Entertainment District, Motorola bringing
entertainment bringing new FM, be in life to the community,
were excited to to partner with the city and really a line
in their vision and with the Chairman's Vision in in
bringing something special to this incredible neighborhood.
I'm we're all so excited about bringing additional jobs
and, and bringing value to those in the neighborhood that
work hard to support their families and and contribute to
what makes your car go. So special also thank you for your
support in this project and we're happy to to be stewards
of the city's vision for growth and prosperity. So thank
you. Thank you mr. Thank you.
Can I go?
Can I get a?
can I get a motion to recommend a
Can I get a motion to recommend approval of item number
for?
So moved by all the men more recommended you pass all those
in favor. Signify by saying I oppose and opinion of the
chairs, the eyes have it and will report this out at our
next city council meeting item number five, is this from
the Department of planning and development and ordinances
concerning the extension for Luke Counterpoint Pace LLC to
retain their services, as program, administrator for the
property. Assessed clean energy program also call pace.
And Tim Jeffries will report this out as well. The managing
Deputy Commissioner for dpd members of the finance
committee once again for the last timer today. My name is
Tim Jeffries managing, Deputy Commissioner in the
department of Planning and Development said this item
request for approval to amend the city's existing
agreement. With Luke, Counterpoint Pace in order to
continue their role, as administrator of the city's
property, assessed clean energy or PACE program approved.
The ordinance would authorize dpd to extend the agreement
for up to an additional five years.
Give me.
Give me, the pace has a relatively newer program shared owl
has requested that I provide the committee with a brief
overview of the, of the program in brief cases of financial
mechanism. That provides private property owners with
access to private financing. That can be used to make
Sustainable Building improvements such as the installation
of high-efficiency building mechanics or Renewable Energy
Systems funds are provided as a loan that is secured by the
value of the building itself and can provide up to 100% of
the funding necessary to make these improvements Pace
allows Property Owners to make critical Green, Building
improvements without a large upfront payment, ikey,
disincentive for many building owners to make these
higher-cost sustainability focused improvements Pace loans
are also structure around the fact that sustainability
improvements often result in a net operational savings. So
that terms can be set to match either the useful life of
the approvement or the anticipated savings.
Example.
Example of how Pace can work is that imagine a building's
boiler breaks down an owner. Typically may just make a
lower-cost repair to this operationally expensive and
inefficient system with Pace however that same owner could
replace this aging boiler with a high efficiency system
with no upfront. Outlay of cash, the repayment of the debt
could then be sized to match the anticipated operational
savings.
Playing in a net neutral or even Revenue, positive
transaction for the property. Owner also just know that
pace does not use any City funds Paces, privately-held debt
with funds provided by a third-party financier. There is no
risk to the city and our role with the assistance of our
administrator is simply to facilitate the transaction in
accordance with state law.
Toothpaste.
Two pieces currently operational in 38 States and Illinois
program was originally authorized by the general assembly
in 2017, and subsequently approved the creation of
Chicago's program in October of 2018 as Ellen. Oi, the
first PACE program is part of that process state law
require the city to identify and retain a third-party
administrator to manage its program DVD solicited bids for
this role and pursuant to a competitive
request-for-proposals process selected Loop Counterpoint
Pace as the administrator. Luke Counterpoint Pacers a 50/50
partnership between loop capital, A minority-owned
chicago-based financing firm and Counterpoint energy a
national leader in paste. Lending similar to Pacers project
funds DVD, does not use City funds to pay Luke Counterpoint
Pace in their role. As administrator instead, they receive
fees that are applied to the principal balance of loans at
that are paid. When individual project Agreements are
executed.
Luke counterpoints agreement with the city was originally
executed in late, 2018 for a term of up to five years and
it will expire in mid August of this year. Should that
happen DVD would not reasonably have the kind of the
capacity, or the legal authority to administer the program
in accordance with state law and will be forced to go to
the program to avoid that dpd, is requesting authority to
extend the existing agreement for a term of up to five
years? No other provisions of the contract. Besides the
term lengths, are being adjusted and loop Counterpoint will
continue to administer the program in a, in a manner that
results in no direct costs to the city.
If?
It approved. The PACE program will continue to be available
in Chicago for the wide variety of eligible project. Users
that undertake Pace eligible building improvements in
general. These users include all commercial office and
industrial buildings, multi-family residential can also be
eligible. But it's limited to properties containing 5 units
or more eligible users. Can then use paste fonts to make a
broad range of building improvements provided. They have a
focus on conservation sustainability and resiliency some of
these could be for things like building mechanical systems,
like HVAC heat pumps are killers. It could also include
things that improve the overall Energy, Efficiency or
conservation of a building which could include automation
window, or door, replacement insulation, water
conservation, and even green roofs.
It's also.
This also includes.
this also includes the installation of Alternative Energy
Systems including solar and wind power base is not just
limited to the hard cost of these improvements but funds
are really soft cost can also be provided
Oprah.
Overall there are a number of benefits of the PACE program
of over traditional conventional lending. Most significant
is something I've already stated Pace can provide up to
100% of the project financing as a term that is rarely
provided for in conventional debt. Likewise space is also,
highly flexible and how it's structured and is able to
provide a wide variety of options to the property owners. A
long-term could be anywhere from 5 to 40 years.
Additionally, there is no prepayment penalties or fees
associated with the retirement of the debt. That's also a
stable and predictable form of, that loans are fully
amortized, interest rates are fixed. There are no balloon
payments. It's just a very what you see is what you get
with a debt. And finally, because Paces land secured
financing, it relies only on the property itself as
collateral. This means that pace. The pace loan can be
transferred or sold when a property is sold. And also means
that there is no personal guarantee requirements or liquid.
Requirement.
Requirements on.
Requirements on individuals associated with the project.
Both of those are very real hurdles to lending in
neighborhoods with access to Capital issues and pace could
be a good tool to help address.
What?
One particularly successful use and paste in Chicago to date
was the development of kitchens at 4801 West, Dickens
Avenue in the 29th. Ward. This was the location of the
former Zenith radio and television Factory. And a kitchens
redeveloped it as a hundred and eleven thousand square
foot. Commercial kitchen is used by a broad variety of
food-based Manufacturers, both large and small amp fuse,
4.6 million dollars in pesos to modernize this 100 year old
building and its mechanical systems. In order to make these
significant Energy Efficiency improvements the figures of
what they saved our up there. I I don't really know what
they mean streaming operation from a practical standpoint,
but from an operational standpoint, I do know that Aunt is
estimating that they'll they'll provide up to 13 million
dollars in savings over the life of their project.
Probably, even more importantly, is that this formerly
vacant property is now the site of 150 jobs and 30
different companies over, half of which are either my
already, or
Already or what?
Already, or women-owned businesses.
I've given all those poor.
I've given all those points dpd Bell.
I've given all those points dpd believes that pace is a
promising program, it isn't interested in seeing his
continued operations. In order to do this, I'd asked the
committee for its favorable consideration of the contract,
extension request with our administrator. I'm also joined
today by Jana Weasley and Erica leaning from the loop
Counterpoint team and I'm happy answer. Any questions you
might have.
Thank.
Thank you, Tim Wilson.
Thank you. Tim will start out with the vice-chair Conway
how much in this might be for for for you all in Chicago?
How, how often has the PACE program been used for? For a
bit of background, was a solar energy developer prior to
prior to becoming aldermen. And I don't recall ever hearing
about a project in Chicago, having Pace funding save, save
a kitchen. So I'm curious how popular the program has been
short. Answer is not that it's not well, used so far.
There's only been three projects to date part of that is
that I think this really when we got the contract in place,
it was almost 2019. And then we had a buzzsaw covid,
construction escalation costs Rising interest costs which
particularly its this program hard. So it just hasn't been
deployed that much. It's not for lack of trying. It's just
it's a it's a tool that
It.
It work.
It works better in a, in a more functioning construction
economy, which we have not experienced since 2019. Have you
found that the administrative fees applied by our vendor
have? Bill has been in line with the fees that are done
nationally from other piece fenders. I'll let one of our
administrators way in but yes, we've we've made adjustments
throughout and then tried to get them as low as possible to
be to be competitive. I suppose in and make it make sure
it's a tool available to everybody.
Hi, Tim.
Hi, Tim Erica. Laney from Counterpoint I yes, the fees are
in line with the rest of the nation. And in fact, we're in
line with Cook County who has a similar program for the
rest of the county.
What were?
What, what are they out of curiosity?
They did very depending on the size and shape of the size
of the project. So they'll go up to I think are capped at
about $150,000, but I will get you get the actual fees over
to Tim and then bring them over on a scale fee, Broadview
through the snow cap.
Thank.
Thank you, thank you very much. Are all the men Lopez
Thank.
Thank you, chairman and good morning members of the
committee. Can you provide through the chair, a list of the
projects done by Ward as well as who are the contractors
associated with those projects? Absolutely, thank you.
all the
Alderman Villegas, thank you madam chair or have to be a
clean energy component for this type of funding a good for
my eyes are kind of like an Eskimo wear your feet. Be the
funding entity is banking on the Savings in order to
capture some of their fees and stuff like that. Is that
accurate is that how all this is being funded, or how this
works? It need not specifically have a clean energy
component. It could be if the Energy Efficiency. For
example, you could swap out all your openings now that you
had a whole lot of glass or something, you're swapping it
out for high-efficiency. New windows, those Savings in
Newark to the to the, to the property owner. And that's
that might be how they pay for the, the debt associated
with the project. But it need not have that specific.
Cost-saving requirement.
why you're
While you're standing up there, can you talk about how you
Market this program?
My name.
My name is Jana Wesley, speak into the mic and say your
name again. My name is Jana Wesleyan with, Luke
Counterpoint Pace. We Mark, we have marketed the, the
program, a number of ways primarily to the stakeholders
Engineers Architects, energy conservation, Consultants.
We've org also marketed to organizations like us, minority
contractors to qcdc Boma. Other kind of organizations like
that and went and weave. We've tried really hard to educate
as many Property Owners as we can.
Thank.
Thank you very much for that.
All.
Ultimately, followed by all the men Riley, think you're
chairman. Several of my questions already been answered,
but just a follow-up on the marketing. I feel like this is
a really amazing program that I wish more people would take
advantage of 1 questions for Tim. How often are are we from
like Redevelopment agreement? If type programs, are we
actually promoting the west side project developers
Congress? Theater has paste and its capitals back and work
were constantly refer
People back.
People back to Jana to see how we can make it work.
And idea I didn't expect the short answer is. My next
question is around language accessibility have a large
number of constituents is not necessarily their first
language, that own a lot of properties to some of these
might be fighting units or more. I'd love to talk to you
about the availability of language, accessible marketing
pieces. And how do we get you all in our community? A
little bit more so that we can start utilizing this really
great program. That would be great. Thank you. Thank you.
Thank.
Thank you. Madam chairman, I do have a couple of follow-up
questions, one related to the marketing program so I'm not
quite sure, I understood the answer. How exactly is his
program being marketed? And on what platforms? Why is it
that most Altima not familiar with it? We get maybe a more
detailed answer on the marketing plan for
Did you first started? We started educating as many
stakeholders as we could including Alderman. We've met with
a number of aldermen in the very beginning when we went
when it was first approved. And then when covid head, we
kind of there was a law. There was no interest there was
there is nothing. And so now we're wrapping up the program
again and hopefully with the continuation of our contract,
we will be able to go out there and have as many meetings
and seminars and educational events as weak and to as many
stakeholders as we can to continue the project. The program
in addition on, when we first started, we had one approved
Capital provider and now we have 12. So we have 12 cap in
the private Capital providers that are out there looking
for projects to use paste as a funding source.
And the word stakeholder is a kind of a generic word. Could
you provide a bit more specific around who you consider to
be a stakeholder? Obviously ocean Community, seminar fries,
I can have the same result as engaging with property owners
in the folks actually in the business of managing buildings
or energy portfolio or these sorts of things. So, well,
qualified in your book is a stakeholder
Trying to focus on.
Trying to focus on organizations that property managers for
small small multi-family unit, building Property Owners
Community organizations, trade organizations contractors
that do business across the city.
And does an actual marketing plan exists on paper.
We?
We are revising, our marketing plan right now, revising it
updating it through the chair. We could get a copy of the
existing on updated plan. That would be awfully helpful and
correct. The queen of planning. We've had a total of 3
project take advantage of this program since its Inception,
is that accurate and what were the fees collected by the
program administer? Administrators sorry. For each of those
three projects. I don't have that in front of me but I can
provide it in the the perhaps Counterpoint can because they
receive that money.
I'm asking what fuse you collected for the three projects
that you've administered the PACE program for here in
Chicago. What's the total amount and fees that you all have
been paid? I don't have the total but I can get it to 10
going to be helpful through the chair. We're being asked to
renew a contract essentially and granted the circumstances
of covid. Pandemic other circumstances, we've all endured
the last several years could explain, why? So few people
have participated but it does beg. The question is the
marketing program robust enough? Are we getting a return on
investment? The fees were paying for the provider of value
to us as fiduciaries for the taxpayer. I'm so these are the
kinds of things that I care about. So if it's true, the
chair planning and Counterpoint to get us, those answers,
I'd greatly appreciate it.
I will.
I watch.
I will absolutely do. So I just do would like to affirm
that the fees that are paid or not City funds, they're paid
by the, by the actual agreement agreement holders and they
are stacked on. God does not City funds directly, not tax
dollars per se, but it's a program that we administer that
be very helpful. Thank you, madam chair. Thank you. And
Riley.
Saint.
Say no more questions. Can I get a motion to remove item
number or is this? Thank you Alderman Lopez item item five
all those in favor signify by saying I opposed in the
opinion of the chair of the eyes have it, this will be
reported out at our next city council meeting. Thank you
mr. Jeffries item number 6 is from the Department of
Transportation, in ordinances, concerning an amendment to
the tip of procreation ordinance for the University of
Illinois, Discovery Partners Institute infrastructure at
West 15th Street and South Clark Street in the Third. Ward
with us, has danburg managing, Deputy Commissioner
Department of Transportation and and Zane the Deputy
Commissioner from the Department of Transportation.
Damn.
Dan good morning. Trudel members of the committee. My name
is Dan Burke Mansion. Deputy Commissioner chief engineer.
With the Chicago Department of Transportation. Request city
council approval for administrative changes to the Tif
appropriation ordinance, approved by city council December
12th 2022 for the enabling infrastructure for the
University of Illinois, Discovery Partners Institute
at the,
At the chairs request in providing just a high-level
overview of the discovery Partners Institute for the new
council members. University of Illinois is in the process
of building a 250 million dollar Innovation Hub to 1501
South Wells Street. The house of Discovery Partners
Institute or DPI. This new building will be approximately
200,000 square feet in size and include Laboratories
classrooms mini space University. His participation goals
at 25%. Amby 5%, wben 3, % be beyond the facility next
line.
Over to.
Overtime to DPI Innovation Hub, will support in the Jason
Campus of technology-oriented developments DPI is expected
to generate 200 million per year in public and private
sector technology research and development investments in
Focus areas including technology Talent Development,
applied research and development and business building.
Next fight
ADP.
The PPI Innovation Hub is committed to equity of
opportunity as a primary purpose of its of connecting
residents. From underrepresented groups with quality
education and job opportunities in Information. Technology,
Healthcare transportation and Logistics and Manufacturing
is expected to facilitate training of 7000 individuals
annually.
Turn public infrastructure is needed to enable the operation
of the DPI Innovation Hub. This includes a new segment of
West, 15th Street that will connect South Wells Street, and
South Clark Street, and provide access to DPI sites for
people driving, taking Transit, walking or bicycling, a
safe and effective. New 15th, Street connection between
Wells and Clark will also require realigning. The railroad
a structure used by Metro long is Rock Island District in
creating a new rail, grade, separation structure, over the
new 15th Street. These public infrastructure improvements
must be ready, concurrently with dpi's opening in 2026 and
information implementation to see that is necessary to meet
this time frame.
The ordinance was approved by City Council in December.
Authorized to see that commission to go. She ate execute
deliver in a governmental agreements, with both the
University of Illinois and Metra to design and build
components of the public infrastructure in close
coordination. With see that the ordinance also calls for
the city to apply enhanced 30%, MB 10% w b. Commitments on
this infrastructure rather than the ordinary 26 and 6
goals. This includes any work to be contracted by the
University or by Metro next line.
DP.
DPI ordinance passed Council, December 12th. 2022, Jordans
considered here. Today will provide one an amendment to
clarify that the tip project funds are excluded from the
definition of incremental taxes. In available incremental,
taxes in the RTA.
Set.
Second item on the madman, trying the commissioner
authority to restore these three infrastructure items to
the original developer rtaa. If they are not completed by
the University of Illinois and by Metra
Also additionally amendments separating the University of
Illinois and Metro IGA, so I think they may proceed
independently and an amendment revising metres. M & W, B
participation requirements to 30%. Be much as DBA programs
mandated. By its neighboring statute, the RTI Act
Thank.
Thank you for the committee's consideration in particular
that you're down for her support and guidance as a DPI
project and its infrastructure needs have developed as this
work. Progresses C. D P D & D P. I will continue our
ongoing coordination with the jet with you Jason Community.
I'm happy to answer any questions that committee may have
an ulcer with me here today is an Zhang the Deputy
Commissioner from C. Kumar can't I sleep Innovations Health
director and Ebony White's assistant director of capital
projects and programs with the University of Illinois and
Shanta Williams assistant. Deputy director with Metra
Thank.
Thank you very much, Dan Burke, all the middle Espada, thank
you so much Jared and this is very much to you through the
tear request but I would love to understand the design, but
they're particularly any pedestrian and cycling
infrastructure. Attached to the design.
Thank.
Thank you for women and older women spot. I actually took a
tour of the new wells Wentworth connector, on the bike lane
is off the Streets Raised and on the sidewalks. Beautiful.
Once it's open, everybody will love it. I'm a big fan of
this project. So if there's so much going on in Third Ward,
you're making the rest of us. Look bad. Actually we share.
And then again this is something else that we're very
excited about this, but basically ching chong parks and I
want to compliment that the team is Epi. I've been involved
in several phone calls, they've got they've been great
about reaching out to the community and really being very
collaborative. So I'm excited for the opportunity for all
of our communities to take advantage of this. Really
state-of-the-art research and development facility. Quick
question for you, explain what that means Amendment.
Providing commissioner authority to restore these three
tourist infrastructure items to the developer Rd.
Not completed by the University.
Not completed by the University of Illinois in Metro what
does that actually mean? What it means to remove these
infrastructure items from the original to go partying and
complete them. Now, working through these working through
the intergovernmental agreements with my trailer in the
University of Illinois. If for some reason, those those
components are not completed, we don't anticipate highly
improbable. But if for whatever reason, I did cut that did
happen. It gives a commissioner authority to restore those
components to the developer RDA. It was a condition from
the developer to releases from remnants from the RDA, they
just beating assurances that they will get done. Okay, got
it. Thank you for. Thank you.
Thank you. My
Thank you, ma'am. Yeah, this is a very exciting project and
I'm glad that it's moving from Champagne up to the Chicago.
So be interested in these type of dollars are being used
for the infrastructure, improvements sewer, water streets,
excetera that was being used for. Yes, yes it is. Yes, they
are. And then the actual construction of the building is at
University of Illinois, murder capital development board.
Kappa.
Capital.
Capital development, thank you. We got to stay on the
capital development board again.
Okay. Are there any other questions all the men Hopkins?
See, you sitting all the way over there? I can't stay here,
but I hope it doesn't happen. But in the event that the RDA
has to be amended again to fold these projects back in.
Obviously, that all of me, something will have gone wrong,
will they then be funded by Tif proceeds again at that
point?
If?
If they were destroyed, although highly unlikely, these
were not even a complete and it would be restored to the
original RDA. The original already ate terms, would would
be in in effect for the completion of those items.
Okay, so the answer is yes, then it would be done. Found it
at that, okay. Thank you.
Oak.
Okay, is there a motion to recommend approval of item?
Number 6?
All.
All the man was spotted recommends to pass all those in
favor signify by saying, I opposed and the pinion of the
chair. The eyes have it will report to do past motion at
our next city. Council meeting item number seven, is also,
it's from the Department of Water Management. It's an
ordinance amending.
Ain't.
A November 7th 2022, ordinance with respect to the authority
to execute documents for proposed 350350 million-dollar
wifia loan to the city from the from the United States
Environmental Protection Agency. This is a direct
introduction that was emailed to everyone else and because
it is in a direct introduction, I would ask the
James, my
James McDonald. Okay, we didn't have your name. Brendan
Brendan White. From the from the finance department will be
reporting out on this and giving you the reasons why this
is a direct introduction because we don't like direct
introduction. So we have to have a reason for it. I mean,
we have a good reason today. Mr. White. Good morning. My
name is Brendan White. I'm an assistant, commissioner in
the Department of Finance. Thank you Tim and I'll take you
other members of this committee. The ordinance we have
before you today is a purely. Administrative mending.
Ordinance would amend article. 3 of an ordinance passed in
November 2020 to authorize the city centre into
low-interest loan with the United States. Environmental
Protection Agency alone would be for three hundred
thirty-seven billion dollars and would help fund the
public.
Love.
Of the Department of Water May.
Of the Department of Water Management Service line
replacement program. The scope of this ordinance ordinance
is limited to expanding the list of City officials who are
authorized to sign the loan agreement on behalf of the
city. The original ordinance, has written only allowed for
the Chief Financial Officer to execute the final loan
agreement. This ordinance would expand that authority to
the commissioner of the Department of Water Management, the
city controller and the mayor passed. This ordinance would
allow the city in the United States Environmental
Protection Agency to close on this loan in short order. If
we were to do this as a introducing it in July in passing
in September, that would run up against the federal fiscal
year ending of September 30th. So I'm we're asking to
previous ordinance so that the city and the EPA can close
on this loan in short order.
Not to mention that that is not the reason that we have
this as a direct introduction though. Can you explain the
reason why this is a direct introduction? Brendan
Yes.
Yes, so the the current Chief Financial Officer before she
joined the city of Chicago, had some involvement with one
of the financial advisors who work City on this loan
agreement and So to avoid any possible issues with the
ethics ordinance. The current Chief Financial Officer will
not participate in the negotiation or execution of the
necessary documents. So and amending ordinance is necessary
to expand the list of City officials were able to sign the
documents on passes City.
Thank.
Thank you.
All.
Alderman. Ervin.
Thank.
Thank you, think about a chair. So you're expanding to the
mayor, the Comptroller and the commissioner
So two things, one traditionally, these have been done by
the CFO. Why was the decision made to put a vested interest
in the department? That's actually doing the work is well,
why was the initial decision maker? Why are we trying to
expand it now? Why are you trying to expand it into the
department? It was a little different when that was handled
by the financial side. The house because that is, who is
handling the financial transactions. Now, you're moving,
that decision-making, Authority into the department. Where
is the oversight between the department and everybody else
in this conversation?
Again.
Again there if it's in the department is one thing versus
someone outside the department, reviewing and doing some
things with that. So that's why I'm asking a question why
the decision to invest in the authority in the department
itself
so, the
so this the Department of Finance is still going to
maintain full oversight over this loan. The loan terms have
essentially been fully negotiated already. So under this
circumstance, we're not. This is a very unique
circumstance, and unfortunately, I'm just not able to sign
the loan documents in my position as CFO, given that I had
a former involvement with this, when I was at the F&M
financial advisors who's one of the firms that did some
work on this and and has done quite a bit of work. But
yeah, we're not setting a precedent here, saying that going
forward when the city does with your loans or other water
revenue bonds at this is going to be the choice going
forward. But for the ability to easily and quickly executed
along the pinion, was it, it was a good idea to add
multiple signers including the department. Such that we can
get it done quickly while the market is favorable.
We have some.
We have seen interest rates move a little bit more favorably
for us. And would like, to be asked you quickly into this
is a really about having available additional available
signers, so we can execute without further delay. It's not
going to be a president though, for going forward is most
satisfactory manner of Marcus moving in. Such a way that
one person is going to hold the whole city hostage. I just,
I philosophically just disagree with the, the issuing
department is having the ability to sign off on things to
that to that magnitude. Even though the Department of
Finance makeover, see it. That could be after the fact, I
mean, we do need to have some level of separation and these
particular conversations, and if it's the if it's, if you
aren't able to do that, then if the Comptroller, if it
would, the control in the mirror I wouldn't I wouldn't
object.
Would give.
Would give invest in that Authority into the issue and
apartment. I do have some some Channels with. Now, I'll
just leave that, leave that alone. That's Point number one.
All Point. Number two, is, this is in relation to the last
service line replacement process and what is the plan? I
guess the I'll call it to buy a plan for lack of a better
term and how we including smaller NBC premiere the African
American contractors into this conversation,
Let's go.
Is good question. We have a commissioner chain with the
Department of Water Management, who's able to address that?
Thank you. I think you the question, so we're doing a lot
in that realm. Is, you know, that's a lie replacement. A
huge opportunity for to bring diversity and Contracting
spring Equity into our program. So in terms of these
programs, we start out with some regular contract and then
grown and evolved with our latest grouping of contracts
bar, breaks and leeks related, LED service line replacement
to divide up. The city into eight zones, including six out
of medium sized, into a small to try and bring diversity
and as well. We also work with the risk management section
to find some very reasonable insurance requirements, things
that bad a lot of the smaller, more diverse businesses are
looking for, in terms of changes, to the contract
requirements. And so we were actually able to is in the
process of signature right now, but
It is.
It is a war.
It is awarded shortly in the next couple of days on nine of
those 16 is a geographic zones with an A and A B9 of the
16th have Prime that are MBS. So we are getting their next.
How many of those problems are African-American in Asian
right now. So you mean to tell me you about to spend $330
and not one negro is going to get a dime? That is not
correct. We have no black Prime contractors on this job.
None, we have Subs, but let me finish all of them. Please
there's multiple contracts in the next round is the sense
of space tracks contracts next year that our block level
and with the way that the state has changed the EPA funding
the funding mitsuba census tract. So we're really excited
about that because it's based on environmental justice
metrics. So the folks the census tracts that have the
highest scores for environmental justice. Get the hot, get
the the funding I told be able to issue some
fairies.
Very small direct contracts in areas that have the most
environmental justice needs to be expect that to really
bring some additional diversity as well.
Oh, so you're asking us.
Let me.
Let me, let me, let me, let me just hold back at it. So
like, hold on. So you're asking us to say, wait next year,
or contractors to be included in a, on a, on a hope and a
prayer. When we have something on the table today that
could generate significant economic benefit in the black
community in the city and we're being told to come next
year because we going to have some crumbs coming down the
pipeline next year. That doesn't work for me. I mean I mean
this is to me to what is this is what I look at. Look at a
less service replacement job is for 500 small jobs and
there is a great opportunity to bring in small contractors
to do this working on maybe they need some oversight, maybe
they need to know. We have to be intentional about how
we're going to help our communities in the city. And to
say, the whole third of the population of the city isn't
available to participate as a prime contractor. I got a
challenge with that. I mean, not alone with this.
Difference.
Difference of having the ability for department head to
sign off on a contract this magnitude. But again, and I'll
tell me now that I can't even participate. Hell, what the
hell are we here for? I mean this, this this is not a
child. I'm sorry. But this this, we need to, we need to
rethink this way. This is being done cuz 44 334. My million
dollar project to go and out of a zones is not one black
Prime contractors.
Does.
That's just crazy. But would you have 9 million dollars? And
African-American is just not a billion dollars and
thirty-five million dollars supposed to be happy about
that? It's a start. We also had we have multiples of
I'm done. Go ahead. Thank you. All them and Lopez followed
by all the men Curtis, Philemon Villegas.
Thank.
Thank you, madam chairman. And again, good after good
morning, members of the committee.
Why was the wording just not in inclusive of the phrase, or
your designate?
As opposed to adding two different department, two
additional departments, two addresses.
I believe.
I believe is you said oversight when crafting the
ordinance?
I'm
I mean we have bigger issues here than the how the
ordinance is worded in. So I think that's her job so that
already being amended to take out the commissioner of the
water department. And so they question that you raised is
also something that we're going to ask the law departments
to look at it as well.
Turn.
Tell Madame chairman, if it's going to be corrected or we'd
tabling this item. Not I'm haven't made that decision yet.
I'm still going through all of the questions from my
colleague but I'm just telling you that's one thing that I
know the law department is prepared to do.
Sorry, I must have missed. I must have not heard that
because no, I'm just, I would, if I was going to say that
in in in response to your question, I just wanted you to
know that that was already in the works.
so, they
So then Madam Madam chairman then, can I move the table
this item to we see what the actual final version is,
that'll be from The Works, will get to that point, but I
want to get the rest of my colleagues. I want to hear what
the rest of my colleagues have to say about this issue. So
will you hold your motion? I will hold my motion to table
until after all comments. Thank you. Now I do have actually
question with regards to this matter, that's at hand,
understanding my colleagues frustration about
participation. I think the other question with regards to
our
LED replacement, is the fact that how much work isn't
getting done on this matter and if we could have the
department, explain how many millions of dollars in
projects are pending from our iepa litigation and all of
the other unresolved issues before we can move forward, I
think that would be very beneficial as well.
So,
So I think you're asking about water, mains and Sewer
Mains, but the that is a different funding bucket. I think
the, the amount of work that we're doing with my service on
replacement actually. I'm just so we had six programs. I'm,
I think everyone got, they hand out, but this takes
programs involve for the equity one. That everyone's heard
about the homeowner initiated won. The daycare in
low-income neighborhood program at then they, we also have
let service on replacement alongside water, main, and Sewer
main. So, we no longer do water, Manor, just sewer main
because they have those connections. So we have about 3,000
that are there completed or scheduled and process process
of our 4500 goal for the year. So we're actually on track.
So in December Madame, chairman the Sun-Times reported that
only 280 out of 390000.
Service lines.
Service lines have been switched. Led Led water pipelines.
Have been switched.
So, I think that there is plenty of work that is in
question is not getting done and understanding that we are
now offering priority for leaks cracks in daycares. I think
that we're still far from where we need to be. And
What?
Would like to know if we can have Through The Chair by
Ward. We're all of these service lines are so we could see
in each Ward. How many service lines? There are, how many
have been replaced and the total cost for a replacement /?
Ward?
Thank you, and I'll wait to renew my motion. Thank you all
them and Lopez good questions on the info to the chair
request. He's also questions that will make sure that
everyone gets this information when it comes out. One of
information all the McQueen. Thank you madam. Sure if I
could just add one item to that list and that's the time
for restoration. So parkway's in the 13th. Ward are ripped
up and they're not get restored in a timely manner. So
that's something I'd like to know
all the
Alleman Curtis.
Thank.
Thank you. I'm not a chairman of commission, do you know?
This is near and dear to me. We always talk about Live
Water replacement program.
Is being done correctly as if it's a we talk about it all
the time but I want to piggyback off of this is one thing I
don't like about it. And again you know we talked about it
all the time and I'm going to piggyback off of girvin.
You know, this this this program needs jobs forever. It
means careers for a lot of people is going to stay every
all the men and their constituents will probably the next
25 30 years.
Go.
The only issue I have with this right now, as well as
written the the company's that's that's that's bidding.
You asking them to bond like 50 to 70 million dollars,
which is way too high, especially for minority companies. I
like that. So, how can we lower that number?
I think.
I think you back question. That's something. We've been
working with risk management. Exactly on that. This last
round of funding. We were able to lower it but I would love
to see it. Go even lower cuz 100% agree with you. Yeah,
50-50 seven million dollars. I mean, I'm with all the
manner, I mean, there's, there's no way you'll get the
participation.
add a
Out of this program, if it's not like that. Was it. Thank
you old man, Curtis. I want to wake knowledge Alderman.
Burnett will add him to the Quorum count for today. All the
men Villegas followed, by all the men Mitchell followed by
all them in Burnet,
Thank.
Thank you, madam chair. Commissioner
Our goal is 4500 a year from lip service line replacement.
That is it?
Bicycle for 2023 that goes up. As much as nine thousand
a-year in the coming years, 4,500 a year will be done by
2111. So obviously I hope that we can speed up the process.
I mean Chicago is number one in LED service lights in the
country. Number one almost 400,000 LED service line
Replacements and I can tell you that right now, the city
has not been aggressive in dealing with this issue. Getting
the let out, all you have to do is look at Newark New
Jersey where they were able to completely remove their last
service lines in less than 5 years and up.
Antichrist.
Anti Creek great opportunities for minority women do
contractors that are no contractors. Also allow for the
ability for minority women, to get exposed to the trades
and allow for great opportunity. So I would, I would think
that this is a huge opportunity. Great job opportunity in
the city needs to move expeditiously to, to get the LED
out, but also have an opportunity to create generate
generational wealth. As we see that this program's going to
probably last me 10 to 20 years if we get more aggressive
in the removal process.
The.
The 350 million that we're looking for. Is this a match at
the federal level? Cuz I know that at the federal level,
our own Illinois, senator Tammy Duckworth advocated for 15
billion in the bipartisan for infrastructure. Bill, just
wanted to know where the 350. Is this a match of some sort
or houses? 350 million would be used.
Answer.
So this would be a loan from the federal government as
opposed to a grand of money so we would pay it back over. I
think the last time it would be in 20560 and the way it
works is that we present with you with a project and they
will pay for up to 49% of the total project. So I think
this loan amount would represent about 39% of the total
project amount and the remaining 63% would be funded from
other city water bonds or federal grants the weather
Time zone.
X or other loans with the Illinois Department of
Environmental Protection Agency. So right now the funding
source to pay back to buy, these loans will be through the
water bill lessons will be repaid with a waterex
commissioner, you mentioned that nine of the 16 were mwbe
that have the, how many of those are let you know? Asian,
we know the African-American number which is 0, but
We have of those nine.
I'm sorry.
I'll go.
I'll get.
I'll get details to the chair but we have is cereal.
What was that?
Are you a?
Are you at?
Are you asking for Prime's? Yes. Yeah there is a 9 of the
16 primes or MB is that that was a question as to how many
a Hispanic will get that to the chair.
Point of information Alderman Vasquez.
Will.
will get all of the MBE wbev ethnicity through the chair
that
We have a great opportunity to rectify and really create
some great opportunities for minority women old vendors but
I don't see the department. I don't want to say the
administration cuz they've been here 16 days but I think
this new Administration has a great opportunity to really,
really grab this and Get the Led Out. We've been talking
about this for 4 years for years and MN. The fact that the
fact that we have this, we have this huge jobs bill here,
just ready to go just frustrates the heck out of me and so,
you know, I have and I have an ordinance that I introduced
and then I'll be sending around to my colleagues and take a
look at it and really kind of mirrors what Newark New
Jersey did. Not obviously, we can't get it done in 45
years, but I can tell you will get it done before 2111 if
we're able to do that. So thank you manager. Thank you. All
the men. PA gets all them and Mitchell, followed by all
them and Burnett and I actually want to Echo the sentiments
Auto cheat.
Auto chairman Irving for the last eight years. Since I've
been here, we've been Champion, nbw guitarist participation
by myself, Irvin Gilman, and yourself chairman, and on to,
to, to, to hear what we just heard about, you know, from
the commissioner who's been here for the last over 4 years
and know that we actually focus on that. And to not have
something put in place, like a very thoughtful about doing
this before we proceeded. As it's kind of a slap in the
face. So I I, we, we need to get this on track. I think
that's where is usually, we have 9 million out of 350 that,
that's, that's absolutely unacceptable and that, that
shouldn't even have been stated today. But one after those
sentiments I understand, we're going to get information to
the chair, so I'll be looking forward to that. The second
thing
With.
with respect to the lead service line replacement, that's
six different programs and
I'd
I don't think that.
We as Alderman, let alone, our constituent. I really
understand what's going on here. I know one of the
program's, the homeowner initiated at the daycare is the
least. And I don't, I don't I know that this has not been
adequately discussed, or laid out because we're having a
lot of issues in our Wards one, we don't know who's coming
or not.
Are.
and we don't,
And we don't know when we don't know what program is under
because one understands the program has the truck each
program has a certain circle Consulting. Like I know Cabo
is under one one, one of these six and others other than
other firms on other one week week we have to know that as
all them in that this, this position even come in at Wards
without us understanding thoroughly, how do you say is to
Alderman? Quinn's plant restoration, the Restoration in my
War has been such that it has caused a public safety issue
because somebody just thrown asphalt down to just just
cover it up. That is totally unacceptable. And I think
commission we we use you probably already know about that
good. So I definitely do not want to see that and I
wouldn't want anybody. See that Mia Ward. We have menu.
This has.
This has to be coordinated. What I mean, you we are people
gas projects. Should be coordinating with people. Guess we
have, I've had fiber optic for a project with my ground. My
streets are getting brake broken up. None of this is being
coordinated and it makes us look look like the most
inefficient city in the world. So I think we need to take a
step back and stop, just just throwing darts at the board.
We're better than that. And I definitely and I think my
ties to share the same sentiment
Set.
Saturday. I visited one of my street that
Saturday. I visited one of my street. They just got
resurfaced to 3 days ago. They just cut it up with LED
light replacement. That makes absolutely no sense.
Particularly, because when it from what I understand, when
I start, when the street has resurfaced, it automatic has a
two-year moratorium that should have never happened.
So I can go on for days about this, but please don't, but
it's frustrating, but I got, you got to tell me you threw
me off there, but you got to get where I'm going to
Inverness followed by ottoman Vasquez. Thank you very much,
Madam chairman, first of all commission, I want to thank
you very much for coming to my office. Making sure that we
were up-to-date on her on the flooding incidents and I was
shocked that you came that personally. So I really
appreciate it. And I concur with my colleagues on some of
the concerns that they have in particular, in reference to
the minority contracting and I kind of came on the tail end
of it. I know you said that nine million dollars of the 350
million would be for minorities.
and,
And I know I'm kind of confused cuz I know that Alderman
Irving asked about prying. She asked how many primes, how
many? How many minorities in a particular African Americans
aren't even subcontractors that all of the m d w, b e is 9
million. I think there's three hundred and twenty nine
million in all the contracts Beyond just the the 16 for
breaks in lakes that are mbwb or BB feel like over all the
the the service line programs. Not just brakes. At least is
329320000000. WB.
In.
MB E320 9 million. So he was asking about the primes and
the primettes is 9 million.
I'm so of the primes for specifically for breaks and legs,
which is what I was wearing was referring to that nine of
those 16 zones are MB.
so,
Turn.
So none of the 16 zones imbe. Okay, fantastic. I just
wanted to ask
And in reference to the lead removal. And I, I think I just
had Joe and the other young lady on my cable show. And, you
know, I learned a lot but can you tell me how, how the lead
program?
In reference to this flooding. That's going on how
replacing the LED pipes, does it has anything to do with
helping with it with this natural situation that we have
going on.
You don't.
Unfortunately, the light service line program, doesn't
really impact that the flooding other than sometimes. When
we do it, let service on replacement. If their privates
rain is broken or we may have to replace the Private Ryan
at the same time which could potentially help. But for the
most part, he's not related.
Oak.
Okay. And in how. And, and I understand my, my colleagues
concerned because hopefully outside of us, trying to get
this loan and I don't know how much interest interest we
going to pay on this long. Can you tell us how much
interest do paying on the lawn?
So the interest rate has not yet been set the last time I
checked it would be around 4.15% in May the city issued
publicly offered water, revenue, bonds or new money
projects and that rate was about 4.9%. So this is
I'm more.
A more favorable interest rate than the public Bond offering
would be okay.
So any of that any of those federal grants that we may be
getting with that cover any of this?
What?
Would that be able to help to pay off some of these loans?
So where we have federal grants, what they would even be
used to pay off this loan but it's it's all part of the
bigger picture of LED service on replacement. We have the
cdb, text me, early development block, grants for the
equity program and then we also have a small bit of
principal forgiveness for the day care program from the
Illinois EPA. But then eventually next year are the other
night. You pay will be finally releasing some of the IGA
money. And that would come potentially July 2024 where we
would see some principal forgiveness, cuz I have to look at
Alderman Lopez. When you talk, can you stand up? Cuz he
keep he's so Adam, ate it over there. And
Nicki.
It came.
And keep moving around.
Do just that to recap that. So, we have the bigger picture
of Lights Riverside replacement, and where we're getting
grants or principal forgiveness, which is essentially a
grand is equity program through the Community Development
block. Grant a little bit about four million of principal
forgiveness for the daycare in low-income neighborhoods
program.
I'm a.
I meant next year. Finally, Illinois EPA should be ready to
release you. Anyone in Illinois by J Money in July and that
would be at the Forum in the form of principal forgiveness,
for a portion of the work they've been so. So we talked
about 350 million now or 320 something million, whatever,
and overall, how much is it all going to be? How much are
we trying to spend on all of this with the grants and
everything else that was trying to get from the federal
government? What we was going to be the total spend
well, if
Well, if you're looking at the entire, let's overtime
program, right? And replace all four in 2002 saying, so
that would be about eight billion. Dollars were hoping to
decrease a projection as we go find a fishing. Please note
that in theory is the total amount. And then how many, how
many years do we project that this may take us to, to deal
with? I'm so right now through the state, we have 50 years.
If we were to ever hit the fifth at the level of concern
elevated for the federal government, we have 33 but we have
Federal legislation that's coming. In the most likely
enough, all they will probably change that yet again. So
somewhere between those two ranges hopefully will never hit
the maximum for the federal but fifty is is a good estimate
for what we have right now is regulation. So average, you
think
Whatever.
on average, how
On average. How much you think that the department will be
spending on this per year? How much worth is a ramp up to
when we get to 9004 year? So, I guess if we do 9000 *
approximately $25,000, during the night in my head right
now, but, you know, you kind of get your wrapping up to it,
and then we'll have a somewhat steady stay after that. So,
we came through provide that same grapple, we have the
dollar, the number in dollars,
Abby.
A b.
A billion dollars, 500 million a year. What?
Approximately.
Approximately how much a year I have to double-check the
numbers? I don't want to give you something to correct, all
the rent in 55 years. For a portion of the work on the
public side. This does not represent the majority of the
funding that were getting and then federal government state
everyone to, to be prepared. So, I've always been concerned
about doing these lead pipes and not having people ready to
work, right? And not having people ready to to do the work.
So this is a great opportunity for us to try to prep people
or these things before more
Money come.
Money come down and we find ourselves in the position. We
don't have enough folks to be ready to do it. So we need to
do something aggressively with prepping people do training.
I know you all got that program going on with the laborers
right now and prepping people for the training. But also
trying to help other folks to become contract in
relationship to this because it's going to be so much work
and too, to keep an equity going on. We have to make people
ready, right? Or you going to find you or you going to find
yourself getting beat up every year or whomever is in your
position. Going to get beat up every year because it won't
be enough equity because we haven't brought people to be
ready for this.
Abdullah.
Absolutely. And actually at the state level, the
discussions are going on there. That's just simply not
enough for the entire state of Illinois. For how many let's
of reminds me of not plumbing contractors, not minority
plumbing, contractors to Workforce Development key. And we
know we've been meeting with folks, like fire 360 to try
and get the word out because it is a great time to become a
plumber. Thank you. Commissioner. Thank you all the men
Burnet, Alderman, Vasquez filed by Alderman, Riley chair.
Yeah, I want to add my voice to the other very real
concerns about this. I mean, one, cuz if I would have
imagined for this kind of conversation, the counselor had
briefings to talk to a lot of us information, which we have
not,
I'm concerned.
I'm concerned about just how we regularly track progress, is
it quarterly? Is it monthly? You know, we haven't had a
meeting a number of months ago when twn where we kind of
got a sense of where it was playing out in our Ward, but I
think, you know conversation about regular Cadence as far
as reporting makes sense. Because if we're saying it might
take fifty years to get this done the sea level. The thing
I can't can't escape me is that you're talking about a kid,
who is born now still haven't drink that water for fifty
years or however long you're going to be in that home
without finding real solutions and in Ruston that have the
tracking to understand the progress on a more regular
fashion. I think it's just generally something that I think
we need to have more conversations of the council I think
before some like this comes to a committee we need to have
the necessary briefings and that did not occur just to
double-check something cuz you mentioned something like. So
I can make sure. $25,000 per each of the LED light
replacement at nine thousand of them a year is out the
number. You kind of a
Jenna.
General, Matthew stated.
Crack sex 225 million a year, we're talking about 350 and
alone to recover. Some of that was feels like a huge Delta
as to where you're going to need to cover that house that
bow down to your taxpayers.
so, I
So on the public site so it is two different, really
buckets, write the public and the private time you have to
drive really be from different you know areas for those
funding sources on the public side. We think we're good for
a little while. We you know think that water rates will
call right given the existing, PPI the Consumer Price Index
on the private side, there is definitely tell that we are
continue to Advocate at the state and federal level for
things. Like does IGA find that you know, everyone thinks
we have already but we don't. So those are on the private
side is where we have to continue to be creative. Look at
cdbg funding. Look up. Principal forgiveness. Take him to
your phone that because they want to keep these programs
for a little while. What is that time like a little while
that's subjective measurement?
I have to double-check, I will leave with you at least two
decades but again subjective just about work getting done
ottoman Mitchell. Had a really great point about sometimes
streets being and taking forever to see any replacement of
water main work. I have sometimes the opposite where we
have menu fun, we're looking to resurface rotors that have
been torn up completely and then we're told we cannot
because Department Water Management has a a block on it and
it was Tiffany's 2 to 3 years. But now I haven't been there
a term 23 years of past and nothing is occurred in. So I'm
trying to figure out what the process is when when we don't
know how long it's going to take for actual work to happen
from Department Water Management. So we can actually get
these roads research
is the
It's got to be one or the other and if we're just in a
holding pattern in the Middle, where the ones that are
front-facing when it comes to constituents and they're not
happy with either answer. So what does that look like? It's
a process. Yeah I think you. So as we had to answer pivot
and incorporate let service line replacement in some of
these projects that has been challenging with time frames.
Apologies and as we continued our source, the fun day, like
this with you for some of these projects as well. So those
have been at hold. So, you know, I always encourage post
it, if you are have other plans, please let us know, we
will release the hold and it for a project. If that makes
nine to know, we'll evaluate how old the main is, where the
break-in League's history, can we wait a little bit and you
know just to make sure that we're doing things, right? We
don't want to hold up a bunch of other work in the city.
Okay. Yeah. Just want to make sure like we're just having
more regular communication that's when the experience. And
again we're the ones that they like answer to our
constituents. And sometimes it's just not me saying
apologies to them in an email in helping I do think
something that
Tell.
Desmond voice, and I had to see my last comment. I know
time is
I'm
and,
Every single time anything happens as far as money, whether
it's a loan or somebody asking for a tax break or anyting.
The first question that comes out of this council is where
is the money going? As far as our mberwa bees? And so it is
completely unacceptable, not exclusive to you. But anyone
comes here asking for any level of money to not have those
answers on the front end, is it completely unacceptable by
the council? And tell me? We hear about all the time until
I just
I know how much are.
I know how much half we have to broadcast it. If you're
going to ask for money and asked for the council to vote on
things. Have those numbers ready? Thank you. Thank you. All
the best kiss, all them and Riley.
Madam chairman. And I want to thank the water department
for the PowerPoint slides, they distribute their then, like
that goes from my colleagues, said, and I'm debt-free
thing, would have been helpful on this, but I'm trying to
piece this together with my lack of reading glasses and I'm
trying to understand. I'm looking at the chart that shows
monthly LED sign that, sorry that led service line,
Replacements across all programs and it notes where
daycares are taking advantage, homeowner initiated Equity,
cumulative, lslr, and then leaks and breaks. And I noted
that we really hadn't been doing any leaks and brakes
reporting placements.
and,
And they.
And this requires residents are owners to report leaks.
Brakes repairs to Water Management through 311 Down to the
program. I noticed we couldn't see any work done in that
area until November 2022. Is there a reason why it wasn't
until that date that we started to see the implementation
of that replacement program? Clearly it's ramped up quite a
bit since why is that sure? I'm that way.
Call Tyler.
Pilot month.
Pilot month, are we began a pilot for lease and breaks
November? And then the state laws took effect January 1st
2023. And, you know, we were trying to make sure that we
had the funding set aside, okay? With y'all, to be able to
help fund that program the future. And I also noted that
the homeowner initiated Replacements, remain relatively
flat. And I know that the homeowner initiate a program that
the benefits homeowner, is that the program waves to
standard permit fees up to $5,000 for any property owner.
So excluding the fees
What were?
What would the typical property on? Homeowner need to spend
to replace those lines?
I asked.
I asked people about the same as what we see about $25,000.
It depends on how long their service line is, you know if
your home is far away from the street or short, but that's
about the average. So we're going to save up to $5,000 in
fees, but the homeowner could be on the hook for as much as
$25,000. Correct, we do not expect a lot of people to be
able to do that. To be fair. That what that program is
mostly for the pr, rehabbing a home here, you'd already
have a plumber there, and you don't want to wait to see
what programs you qualify for that. The people that do
that, we thought we'd get 50 to 100. Surprisingly, we got
about 200, but that's not the main way. They were going to
get leftovers X and
Can.
And I just wanna make sure I'm understanding all this
properly, leave the grants that you all have assembled, so
separate from the loans, but the grants total about 65
million is that is that correct across all the different
programs? I'm looking at cdbg, I'm looking at srf grandson
at Granite Propst ARP grants program and you're also
working to secure a low-interest, long-term financing. And
I bet that stuck with me, I understand why two and what is
low interest? Could you explain to all of us with low?
Interest means what would I know of no interest is but
there's interest so far today. So the rate on this pretty
girl alone yet, but once we are within a week or two weeks
of being ready to close, we would set it based on the
federal state and local government securities rate, + 1.
This point. So last time I look at that that was about
4.15% which compares to what were able to achieve is a
public offering of water, revenue bonds and water revenue
bonds in May, and that interest costs was about 4.9%. So
there's about a 70 basis point difference or benefit from
going with silver. 45% is what is going to need to go back?
Yes. Okay. And again just so we're all clear here to service
these low-interest state and federal loans will water race
need to be increased for consumers here in Chicago.
In The Current financial plan that incorporates this loan.
We would not have to increase water rates beyond the
automatic, PPI increase every year.
The.
Beyond the automatic CPI increased every year and that's
based on a projection, where were nailing CPI at what in
the next 10 years on average feeling just been struggling
with an awful lot of places around here. Yeah, the
long-term Federal Reserve CPI, projection is about two and
a half percent, that's what we've been assuming. Despite
the recent couple years of obviously, higher than that, the
two and a half percent is what we're projecting to be the
10-year average on CPI and that's based on the Federal
Reserve forward. Okay, thank you, madam chairman. Thank
you, Riley, Alderman Lopez. I would ask if you could table
or remove drop your motion because the chair Madame,
chairman, I withdraw my motion to thank you very much. And
as chair of the committee, I'm going to ask that, we hold
this matter because it all them in urban.
Can.
Can you let me finish?
Can you let me finish this matter so that we can have more
discussion on it and it is apparent that this program is a
little bit off the rail and we just need to focus on some
concerns related to more conversations on minority.
Participation the timing in the process of the stop program
in the workforce, preparation and anything else that would
come up
We?
We all.
We also need to have additional briefings on this almond
Irving to add to that. And I'm not sure if that's in our
purview not but also dead. No contract being awarded in the
zones that have been contemplated by the department until
we get either. A something has to change in this respect,
but that no contracts. Being awarded for this work
currently, right? That's what this ordinance was directed
to do to execute to allow someone other than the CFO to
execute this particular contract. And by holding that, we
are taking a look at the people who can execute in the
future, on this particular contract and the other issues
that were raised it today, okay?
all the
Alderman Villegas followed by all the men Mitchell, I'd like
to move on. If we can process go through the CPR was a
procurement. That was led by the CPO that want to find
ourselves in a position where there was a public built of
public bidding process. And then now we're saying hey we
get the public bidding process. We want to do something
different, that's all. I'm I'm trying to find out what the
process is here.
Yeah.
Yes, it was a probably bid contract for the court reporter.
Yes, it was publicly B set of contacts.
if I,
The brakes in like stuck or what you're referring to a
publicly bid process and the results of the results. I
think that we want to make changes. And then we need to
find a different way to do. What I don't know how the
contracts being already advertised low bid and then now we
want to change the results. That's all I'm saying.
I thought.
I think that we're not trying to change the contract at
this point, I think we're trying to have more conversations
about how that that money is going to be expanded and
allocated. Once the contract before the contract is fine.
All.
Alderman. Ervin.
I mean also to the city does always reserve the right to
rebid and throw out beds and come back with a different
solution if it so chooses. That's well within our right?
And that's why I asked that that specific question because
I don't want to see your contracts awarded and then the
contracts awarded and now we're stuck. So if part of this
conversation, I don't want to see any contracts. Awarded
that wouldn't come with these fines and that's that's my
point. We decide that we want the city decides that it's in
the interest of the city to rebuild or come up with a
different solution. The city does reserve that right to do
that. Regardless, if he's publicly beer that's clear under
the under the statues of the state. So I'm asking that
those that those contracts not be awarded because again,
there's a, there's a definite amount of inequity and knelt
in the contract. So,
If?
If we don't replace the LED this year, we don't replace it
because we're not going to replace lead and black folk, not
be involved in it. So
Do I want to be clear and commissioner if you can answer
this yes or no? What was the what this dock? What this
ordinance is for today is 4 to give the city, the authority
to enter into a loan. A loan agreement for the LED
replacement service line. You have not awarded contrast
relative to the 350 million at this loan would secure
Bad.
That is correct. This this is for the authority to add the
extra name because the with the authority was passed
previously in general, but they're supposed to add the
extra name. And then the contracts related to this are I
think to have two of the 16 have been signed but the rest
have not been signed. They're in the process. There was an
error.
Okay, so we will look into that ASAP as we table this
matter. Yes. All the red Mitchell. Okay. So as they are
there, six different programs that the live service online
replacement encompasses. I want to make sure that
and,
And I know me I'm not and I'm under the understanding that
each program has its own criteria, has its own. Contractor
contract is awarded in each one of these programs based on
certain criteria. So I want to make sure that we look at
this holistically going for work. So when's to tell all
them a chance to Sheraton. Urban request that not just
everything everything we're looking at from leaks and
brakes Equity other, so I block level daycares, everything
hold up. And we look at this holistically because a lot of
these contracts I have been awarded and to quote, all the
chairman Irving black hole is not a sin.
We will hold this particular matter in committee today and
my request is for you all to urgently get together with the
Department of Water and the CFO office and have this
discussion.
All.
Alderman Burnett's. Thank you. So see if, or when I'm
sorry, I don't know if I met you before. What's your name?
My name is Brenda wait, I'm an assistant, commissioner in
the Department of Finance. Are you to tell if your ski
Toyota commissioner UCF, nice meeting you. You haven't said
anything since I've been okay before I came. Okay, but
anyway, nice meeting you and I like to meet with you
personally, but I just want to ask so we talkin about. So I
always want to ask two things. One
Do.
Does the timing have anything to do with the interest rates
that we are getting a loan for? Will, will the timing
affect the interest rates one? And then two, I want to ask
Bar.
borrow the money and doing the contracts, aren't they like
separate those two separate things? They don't happen at
the same time, right? Can we borrow money and then deal
with the contract stuff on the side?
An error, you know, if it's affecting the interest rates
that's what I'm concerned about. It was going to cost the
city more money to borrow the money. You know, I want to
know if that's the Cerny. Ask to see if a question before I
decided to table this. And I was told it was, it would not
have an impact or the penalty, my desire is to have a
discussion about this.
Move.
Moving forward before we actually sign off on this loan
agreement because that's our leverage right now. But let me
clarify one thing. We don't know what the impact on the
interest rate will be interest rates move around and we
will not set the interest rate on this loan until we close
it. We, my understanding is that and commissioner police
Repair, Broadway, understanding, is that bass.
Find the cash position.
Find the cash position that gwm has. And the fact that
there are other Bond proceeds available that Dido and can
continue to move forward with its projects for some period
of time before we close this loan. If there's expenses that
are incurred, that they can be reimbursed from the loan
after is closed but you are correct that the authorization
to enter into this loan is separate from entering into the
construction contracts.
Thank.
Thank you.
All the way.
All my Mitchell, you had your hand up. I like to move on if
I can. Okay, you finish. Okay, so we will hold item number
8 in committee. I'm sorry. Number seven in committee and
move on. Item number 8, which is the ordinance concerning
the granting of
The Department of Housing Authority Department of Housing
Authority to seed excess and unallocated volume cap to the
Illinois. Housing Development Authority from the city of
Chicago, tax-exempt, private activity, volume Bond cab. I
thank you. See if old Jaworski and mr. White, we now have
joined by Tamara Collins from the Department of Housing.
Vlogging.
We walked.
B Walker in.
Good afternoon, Madam chair, and members of the committee
for the record. My name is Tamara Collins with the
Department of Housing bureau of Housing Finance, today is
ordinances requesting approval to see, volume cap over to
us, over the next three years and in an amount of up to 150
million dollars.
Who is?
What does it mean to see volume cap the city of Chicago
receives an annual allocation of tax-exempt, bonds of
approximately 270 million dollars and has on occasion
seated cap to Ida and ch8 the authority to see volume cap
allows the city to allocate all or a portion of this excess
and unallocated bonds to our partner agencies for the
development of affordable housing.
Enter.
In 2022, the city through the Department of Housing,
seated, volume captcha c. H a for the rehabilitation of two
senior housing developments. The first one was Albany
Terrace which receives an allocation of 67.2 million
dollars in bond cab and then the second one was Irene McCoy
games for Rehab as well. That was about 30.5 million
dollars and volume captcha c, h, a and collectively that
got us a preservation of 500 units of senior housing
without any additional funding resources from the city.
Historically we were, we had about $200,000. In volume
Captain would expire, every single year in 2019, we saw
some up, check on the use of volume cap for the tax-exempt,
bonds due to the qualified. Allocation plan also known as
The Cure p.m. changes in their allowed us to see some more
but on projects come to the table. However we still have
about 50 million dollars. The volume Captain goes expires
each year. So as a result, we are requesting approval to
see this excess unallocated volume capture, item each year,
the volume cap expires, volume Capital spires every three
years. So, for example, buy you a 2020 will expire at the
end of this year, if it is not use.
So instead of allowing the bio cap to expire, we're
proposing that seat to see that volume cap to generate and
preserve more affordable housing than we otherwise would be
able to bonds are generally always paired with some other
resource whether it's home cdbg or chest. In this case with
me, see the volume capture either or just chaa, we don't
have to spend valuable resources. We can use those from
other projects within the city as well and in
Are.
Areas that are most in need.
I'm
How many of the proposals that Idol does in the deal in the
city are at cost us nothing extra Ida, did about 1.2
billion dollars worth of bond deals in the city.
Between 2018 and 2019 between 2018 and 2022 and most of
those the preservation or the new construction of
multifamily affordable housing, just some examples of Bryn.
Mawr apartments at 1703 East 72nd, that was a hundred
units. Either provided 20 points is a 20.6 million V,
Leiden, provided 12.3 million dollars a box button, volume
cab. If we had done this deal, typically idle allows about
10% of the total development costs and cash resources on
their deals. So that would have cost us probably another
two or three million dollars to pair with this. So we were
able to say that and I could do the deal because they
obviously have a lot more resources than the city.
and I,
Another example, is the oven, say one, which was both
scatter sites and a 92 unit building. That was a 35.5
million project. I just need a volume of 17.3 million
dollars and that was at no cost to the city.
and then,
And then of course it was 900, West Randolph. This is a 300
unit, 60 of the units which were affordable 215 million
dollar deal for which I did a hundred and Seventeen point
five million dollars.
The Wrecker.
The recommendation if approved as to allow us to see volume
cap of up to 150 million dollars to Ida over a three-year
period. If approved by this Council will pass, and by by
the finance committee will pass city council also in July,
and then we will begin negotiations with Ida on specific
deals on which they would need volume cab. That concludes
my presentation. I'm happy to answer any question.
I see.
I share Conway, just to just to clarify. So we would see
250 million dollars over three years, and we would get
approximately six hundred million dollars of that. You said
about two hundred million a year. So, is that we would see
it about a quarter, or we would see up to 150 million
dollars to Ida per year till now.
and it'd be a
And it'd be over a three-year. So they can come in and say
hey I have three projects, I need 60 billion dollars and
then volume cap we would see 60 million dollars or 50
million dollars in various instruments. But the total would
be 150 million hours and not end in for a limited time for
what? Three wonderful didn't damage. The seems like a a
wonderful project that I want to commend commend you for
for essentially activating an asset that we're not using to
activate a hundred and fifty million dollars of affordable
housing finance and it sounds like a wonderful thing will
do and it will get no press and it's a fantastic thing. So
thank you. Thank you. And Lopez.
They?
Thank.
Thank you, man, chair and good afternoon members of the
committee. A couple quick questions. Are private entities
allowed to access this funding source. I'm sorry for
private entities allowed to access this funding source.
Nothing.
not the
Not. This is private equity in a private developer would
take to take the volume captivia specific project and there
would be a developer that would develop do the development.
So they would then just like us where they will be. Conduit
is actually dead on the project. So I guess can the city of
Chicago serve as a conduit to private developers. While we
are in possession of these of this volume, can we do that
already? So then I guess my question is, why are we not
doing it to its fullest so that we do
I have a hunch.
Have 104.
I have 150 million dollars in excess unused volume cap
because we don't always have the additional resources to
pair with it. So when we do
Search.
Such as what a day. It may cost us us us anywhere from 2 to
10 million dollars in additional resources to do the deal.
So that means we may be additional chicken the deal and
maybe it just you know, home or cdbg and the deal when we
see the volume capture Ida, we don't have any money in the
deal. I do will take either has more resources, they can do
the Deal completely themselves.
so,
So, why would we forgive me? So why would we
See.
Proceeded to them when we can just as easily do it? Is
there a benefit to them doing it? So what resource are we
missing? I guess the question we need more cash. We need
more more CDG. We need more home. We need more money that
we are doing. That's certainly a resource, but we are
limited in the amount of resources that we have. So, are
those agencies able to request this money directly from the
rectus directly accessed from the state as well? Or does it
have to come from us?
Or wherever they get a.
Or wherever they get it from.
which,
Which agencies Ida c h, a Everett, everyone that's going to
stand to benefit. So they have their own, they have more
resources to pair with a like to get those deals out. So
then I got your ass because we have by your path has
expiring instead of letting expire, can we give it to them
to do more deals? The question that I am asking is because
of the fact that every year, I hear about how we're giving
away
Is.
Is volume cap cuz we don't have the resources to use. What
we're given right and far be it for me to give anything
back to anybody. But I think it's some point, someone's
going to ask us what? Why do you need so much? If you don't
have the capacity to do with it, I will give you right? So
I guess the question I would have is what is it? You would
need for us to be able to hold on to our volume cap so that
we can actually address those housing issues that everyone
says, in that all of your recitals mention. But yet we have
no way of actually impacting without turning it over to
somebody else to handle on our behalf.
Suppose.
Supposed.
Some of the department Department of Housing. If we had
those additional resources that I just named Annex in
excess of what we currently at, we can certainly do more
Bond deals. We would only see this volume cab if we
actually had the excess volume cap, if we don't have it,
obviously want to see that. But what I say is since 2020,
17 regard from letting two hundred million dollars of all
your cab expire to now about 50 to 60 billion dollars of
all. You've got bit by a so we are using it more, but we
still have volume Captain expires for us. It doesn't make
sense to allow it to expire when we can get a lot more
affordable housing in the city that we otherwise would. So,
would we have to increase our Resources by 50% to be able
to maximize that?
Are.
Or do.
Or do you have a, is there a breakdown? You can provide
through the chair of what we put our dollars to versus
where we need to be so that we could be a hundred and 100%
usage of our volume cap. I could provide the chair a list
of projects in which we've done over the last few years,
that show how much we how much additional resources have
gone to the sub on deals that we've done in the house? And
maybe if you a spread up with that increase has been over
the last couple of years and where it needs to go, I think
would be very helpful, especially as we know that housing
is an issue that this Council many members take seriously,
and especially, if we're getting ready to prepare for
Budget sees.
Budget season probably would be great to see what you would
need. I have no issue with giving.
The.
The volume Captain agencies that are going to use it.
Obviously you want to see, use it or lose it, but I don't
see. The reason why we necessarily have to always turn it
over to somebody else. Cuz I know we have the ability in
the will, maybe just not the capacity yet. So I'd love to
see that answered and we're in the ordinances at say, this
is over three years cuz I couldn't find it. 23 years, 3
years, in the actual ordinance. You said, it's a all of the
volume cap will be spread out over three years totaling 150
million. Where was that in the ordinance?
I actually don't have a copy of the ordinance with me, but
I believe this
If I do.
Cuz I don't see a date in the.
Order.
Ordained section other than from December 31st to February
something-or-other. When you decide how much to feed.
What does a?
It doesn't say how long this is going to be going on for.
unless,
Amazon.
Unless, I'm missing it.
It should.
It should be in section 2.
the last, the last where I saw from the first page where it
says, that effective,
3025 F-35.
so,
So it's in the recitals. Not the be ordained park right
now. Thank you, madam chairman. I just want to make sure
that no generally the whereas is just State the facts of
what we're talking about as opposed to the be ordained
which is what we're going to do. So I was just curious if
it had to be down there as well but maybe I'll leave for
the Law Department. Thank you. I'll get Lopez almond
Taylor.
Thank you, ma'am.
Thank you, madam chair. I wanted to eat, you had on the
screen. I think it says from 2018 to 2023, 22, can we get
through the chair every project that was done with the
money by Ward?
I think.
I think so, I have a list of the actual projects with the
address is so we can sort that out by Ward. Thank you.
Thank you so much sister Tamara. So it mentions talks about
this being a can transfer to Ida but our our one-pager
makes a lot of reference to the c. H a y, no offense to you
before. But is there, is there any relationship to cata
projects with the Ida? A forward-looking? Yes, actually.
One of the projects that you saw, what she was acting.
Commons, that was actually a c h. A deal that was between
chani to the city. Was not a participant in the deal, so
yes I do and say AJ could work together but there's still a
developer on hand for a master developer for those PHA
projects. So that is the private part of the deal could
share with us. Is this going to be a few things related to
projects being considered in rqap for this year projects
that are maybe now so the purpose of feeding by and Pat is
lidocaine do.
Their own deals with.
Their own deal that they work on in the city separate and
apart from the city of Chicago. So we'd still have our own
volume half as part of our Father by the allocation plan,
which we will do on our own. This is separate. And apart
from that, is there any kind of coordination with them on
like to know you felt like you made reference to this book
projects? We would be expecting to see close or 9 to close.
Yes. So in order for them to get the buy, you have to have
to identify to us which projects they're going to be
working on and the timeline for which they would be
closing. But they would that those project would not be
receiving anything from the city. The only other point that
I was curious about and again, it's a c h a point. So I
don't know what that it applies to Ida because you
mentioned in terms of the benefits that the CHC does not
assess the 1.5% Bond issuers fee for its own projects. Is
that also true with Ida or do they issue that fee and if
they withhold or waive the fee
Are.
Are those savings that are passed on to developers? I need
to check that for I too, I know for sure. I know for sure
is CH a does not charge the fees. The city charges is on
fees for this one up his mind. But when we have to pay her
our resources, ripping it pales in comparison. You may see
a $300,000, but if I have to give you three million dollars
in comparison to what we're providing to the deal, I can
check that so I can get that information so much. Thank you
very much, thank you.
Thank you. I
Thank you. All the man was spotted. I see you. No more
questions. Can I get? Yes. All the more I thought you so
much and I apologize. I don't even have enough for me and I
apologize that I stepped out for a second cuz then I just
heard you say, you talked about the funds that it can be
paired with. Can you provide that list of type of fun, is
that it can be paired with. You said grant or loan funds
typically. Typically many, then they are other things that
it could be a woodchuck. Can you provide that list of the
chair so I can see what those ones? I can be paired with
and then for the ones we do for the cities are for right
for us to keep, you know, try to keep this money. So I know
what's going on is that needs to be paired with. So we're
not sitting it to anyone and I know you said, you want from
250, 250, route, 250 million on average so you not
expecting really
100.
105.
150 million, it could be. So that's why you just asking up
to 150. So it could be another. It could be 50 million. You
probably expecting this year again.
so, they
So this is a one-time request for 150 over 3 years. So
whatever 150 / 3 is been in any of those given years. We'd,
they could request that amount up to 150 million over three
years or but we seeded it in one full amount. This time,
we're taking a little step back and saying, you know, we'll
do it over a three-year. Let us see which project you going
to be doing, and then we will see the volume half as it is
necessary. And has made it. And then one final question is
that as you're providing that list could that include any
City, surplus funds, that we have took that we could pair
that up with
if we have surplus funds, We compare that with the with the
volume cap is right. So we so we're not losing it and
feeding it to Cher anybody else.
I'm a.
I mean, if we have excess funds sure, I mean it is a matter
of when we get them in the matter of timing though. I mean
we're doing, we have to underwrite, bond deals, to take
some time to do it. So that, if that money is not available
right away, it may take a little bit longer to to get those
deal but if it is available, but if it's bad, if it isn't,
thank you so much.
Thank you.
Thank you all very much.
Thank you. Audrey Moore augments teacher Lopez. Thank you.
I really appreciate the information for the Department of
Housing within generally is a positive development. I hear
some several colleagues other one Taylor on the spotted one
of them or with some questions. So, becomes the Department
of Housing can do a follow-up so that we can work together
and provide some of these answers. And we can analyze, of
course, it's all the longing back analysis. So, perhaps we
can work with Department of Housing to address some of the
questions official in the long-term. Thank you, madam
chair. Thank you all the mens teacher Lopez sing, No More
hands up. Can I get a motion to recommend approval for
item? Number 8, Alderman Rodriguez? So move all those in
favor. Signify by saying, I all those opposed
and,
in the event.
In the opinion of the chair, the eyes have, it will report
this out at the next city council meeting. Thank you and
Collins item number nine from the Department of Housing and
ordinances concerning financial assistance of a loan or
Grant funds for multifamily program, or the stsc bond funds
to Boulevard Apartments preservation, LP for acquisition
and Rehabilitation of affordable housing at 1930 through
1938 North Humboldt, Boulevard 929 to 935 North Sacramento.
Avenue and 2212 to 14, North Sacramento Avenue in the First
Ward and in the 26th, Ward, we have with us, the John Lewis
and
Also, in the audience is Joy, our arketi, the executive
director of bickerdike. Hello Joy. Good to see you and fake
and Kenneth Figueroa the project manager.
This is a substitute ordinance and so can I get a motion to
accept the substitute ordinance? Which was emailed to
everyone?
so, move by Alderman, Knudsen all those in favor, signify
by saying I
Pause, the substitute is now before us.
Thank.
Thank you, cheer, Dowell members of the committee for the
record. My name is Joseph Lewis. I'm a financial planning
analyst with the city's Department of Housing.
A boy.
Before.
Before you today is an ordinance for the Boulevard
Apartments preservation development. That request
authorization for the issuance of up to 12 million, seven
hundred twenty five thousand dollars and multi-family
longer Grant funds as a chair mention, this is substitute
ordinance when compared to the original to substitute more
fully provides a description of the project at hand in its
exhibit a as well as a more complete description in the
same exhibit of the manner in which funding may be
structured is these elements for of the ordinance were
inadvertently omitted by clerical error in the
Receding four.
Receding Persian.
Properties that are the subject of this ordinance are three
separate vintage multi-family buildings distributed across
the Logan Square, and West Town community areas. One of the
properties is in the First Ward represented by elderly
spot. And the other two properties are in the 26th, Ward,
we represented by Alder Fuentes.
Shown here is the property at 2212 to 2214 North Sacramento
Avenue in the First Ward which contains 26. Excuse me which
contains 14 rental units.
Show.
Shown here is the property at 929 to 935, North Sacramento
Avenue in the 26th Ward which contains 26 rental units.
and,
And shown here is the property at 1930 to 1938 North
Humboldt in the 26th Ward, which contains 30 rental units.
In total, this is 70 units of multifamily housing. In 3,
vintage buildings with 60 units, serving families, in two
bedroom or larger units. All 70 units of households earning
under 60% of the Chicago area, median income. In 27 of
these units are supported by rental subsidies. From either,
the Chicago Housing, Authority or the Chicago low income
housing, trust fund the owner and developer Northwest side
based. Housing development, not-for-profit bickerdike.
Redevelopment Corporation
we have the
We have these buildings in the early 1990s with financial
assistance from the city after 30 years, many Building
Systems, and components that reach the end of their usable
lives and require replacement to this end. I submitted an
application, India wages 2021 funding round with the goal
of the long-term, preservation enhancement of these
buildings used as affordable, rental housing, that will be
available in communities that are experiencing
gentrification pressures,
if I,
The project consists of the rehab of all three buildings
and all 70 units in these buildings with new Roofing &,
Masonry, repairs energy, efficient appliances and energy,
efficient furnaces and central air conditioners where there
are currently no central air conditioning.
O l.
OLED lighting packages. New windows new, hot water service
and improve indoor air ventilation provisions.
There.
There will.
There will be in approximately 12 months instruction. What
construction occurring at separate times with respect to
each building, the scope of work, shall necessitate the
temporary, displacement of the existing residents of these
buildings for. The blessing 12 months.
I'll
Also Tree location activity shall occur in accordance with
the requirements of the federal uniform relocation act and
other relevant. Law, tenants will be entitled to in
temporary, displacement benefits and their relocation
temporary housing accommodations that are safe. Sanitary
and decent. She'll be monitored by d o h.
At 3.
I briefly mentioned a moment ago, the developers bickerdike
Redevelopment corporation that was the 1967 bickerdike is a
member base, not-for-profit Community Development
Corporation, based on the northwest side of Chicago and
serving low and moderate-income Chicago 1s with a
particular focus on the communities of West Town Humboldt
Park. Logan Square Avondale and Hermosa mission is to
provide high quality affordable housing. Confirm
gentrification in displacement promote Economic Development
by creating and preserving jobs navigating for an equitable
allocation of resources. Bickerdike Apartments, the
property management arm of paper. Dyke Redevelopment
Corporation has continued its management of this property
and overseas a portfolio. That includes approximately 1,200
affordable units has the recent projects completed by
Picard. I quit, toh assistance include the Nelson Mandela
apartments in 2018 and the Lucy Gonzalez Parsons
Apartments, a deeply affordable transit-oriented
development at the Logan Square Blue Line Stay
Completed.
Who played it in.
Who played it in 2022.
Photo development costs are approximately 43 million
$570,000. The rehab is to be undertaken As One financing
plan utilizing cities or 9%, low income housing tax
credits, as well as soft on from the study of up to $12 and
$725,000. In addition to the city assistance, the
development will also be financed with private First
Mortgage Debt.
Aqua.
Equity generate.
Equity generated by the use of of historic tax credits and
seller financing in relation to the transfer the project.
Excuse.
Excuse me.
Don't.
So I'll just recap the financing particulars totaled and
costs are 43 million $570,000. The rehab is to be
undertaken As One financing plan using city-source 9% low
income housing tax credits, as well as soft buns of up to
12 million, seven hundred and $25,000. In addition to the
city assist in the development, will also be financed with
private First, Mortgage Debt Equity generated by the use of
historic credits and seller financing in relation to the
transfer of the project.
In.
In conclusion. Which supports the preservation of
family-oriented, affordable rental housing in the Logan
Square in West Town communities contemplated by the
Boulevard, Apartment preservation proposal. Do they send
toh respectfully request? The committee? Favorable
consideration of the act of the action described on the
slide. Emily issuance of up to 12 million, seven hundred
and $25,000 in multi-family program funds. Spot of the
First Ward and older Fuentes of the 26th. Ward are both
supportive of the project with your approval and city
council. Passage closing on the financing, may occur as
early as September 2023 would like to thank you for your
favorable consideration of this request and I as well as
staff and Picard Ike, Redevelopment Corporation are
available to answer any questions.
Yes, I'm by sure Conway. This is not enough Joseph. This
isn't he does not know TIF district. None of the three
properties that comprise. This project is located in the
geography of a tax increment. Financing district. Is this
if you could go back to the sources and uses
Five nights.
The next one.
is that is the
Do you?
Toh funding as is listed on there, is that where it fits in
the capital stack, just behind the first mortgage there.
Yes, that's correct. The senior loan would be the
privately. Sourced First Mortgage dad. Audio H, funding
would be junior to that and secondly, wonderful. Thank you.
Thank you. I won't thank you very much, sir. I will only
say, like, not only do, I really appreciate the Energy
Efficiency of the project, as almond Conway points out that
the challenge of creating affordable housing without this
is very challenging. So, to see, a project like this
happening is great, but the fact that we're not only
building 3, bedroom unit, but preserving four-bedroom units
that are deeply needed better. Deeply challenging
challenging to do with new construction.
This.
That's fantastic. I really love what we're accomplishing
with this project. Thank you sir! Thank you. And I'm just
going to take the chair prerogative. Enjoy you been. If you
would just speak to this project you figured I could have
been around for over 50 years. You've got to be the oldest
housing affordable housing, developer in the city. If not
second oldest.
We?
We are the oldest and the city and one of the oldest in the
country as a matter of fact. And so we've been doing this
for quite a few years and Boulevard Apartments is one of
the first low income housing tax credit projects that we
did without Section 8. So it's a 35 year old development
and the residents that live there are our happy but these
buildings are in need of upgrades and you know affordable
housing runs with a very limited budget. So there you know,
if you run into a moment where there isn't enough money in
the reserves to fund the capital worth it, really needs to
be done. And that's the moment that were a lot of projects
don't get to 35 years before, they're at that moment, but
I'm happy to say that we were able to operate for that
long, residence, really do? I mean we would never be
New Year of the housing about.
New Year the housing without air conditioning today, it
would be considered economic obsolescence and so you know
it'll be all electric, it won't be any gas in the
development. You know, it's part of the decarbonization
efforts and so we're really trying to utilize the
opportunity to create better housing and preserve it for at
least another 35 plus years. Thank you very much joy for
your time this morning and your service, to the city of
Chicago. And before I ask for a promotion, I just want to
let you know that all the men Fuentes is also in support of
this. She has given us a letter of support for this item.
Can I get a motion for item number 9 on our agenda today?
Do.
So moved by all the men laspada, recommending to pass all
those in favor signify by saying I posed in the opinion of
the chair. The eyes have, it will report this out at our
next city, council meeting moving. Right along to item
number 10. Thank you all very much. Thank you. Thank you,
everything onto item number 10, which is a proposed
ordinance, authorizing. The payment of various small claims
against the city of Chicago. This was a direct introduction
and the list of payments approve, was sent to everyone
electronically, and if there are no objections, they'll be
placed in the Omnibus.
I'd
Item number 11, a proposed ordinance 29. The payment of
various small claims against the city of Chicago, also, a
direct introduction, and this list of payments denied was
electronically sent to everyone. If there are no
objections, these will be placed in the Omnibus. I'm an
item, number 12 to proposed ordinances or Thrice in
charitable, solicitation of the public way or tagged a
permit. We have one from the Salvation Army North and
Central, Illinois, division Citywide from November 1st,
2023 through December 24th, 2023 excluding Sundays and the
second from the American Society for the prevention of
cruelty to animals against Citywide August 1st 2023 through
December 31st 2023.
Honesty.
If there are no objections, these will be placed in the
Omnibus.
I'd
I do.
Item. Number 13, Action, unication. Transmitting reports of
cases in which verdicts judgments or settlements were
entered into for the month of June 2023. At this report was
also provided to everyone electronically and if there are
no objections, this report will be placed on file with the
city clerk office.
I'd
Item. Number 14 is from the Department of Law. We have for
proposed orders authorizing, the corporation counsel to
enter into an executed settlement orders in the following
cases. The first one is a Vincent Tucker versus City of
Chicago. Carlos Jimenez Jr. And Julian Rodriguez case
number 2019, LS400. Two were joined today by assistant
Corporation counsel James Ormond.
it's
This case involves a police motor vehicle pursuit in which
the flame offender vehicle struck a civilian car. Resulting
in significant bodily injuries to be entirely innocent a
civilian driver 61 year old Vincent Tucker
The accident occurred on Sunday, August 19th, 2018 at 2:21
p.m. at 76th Street and Harvard in Defender vehicle. A
black Audi, A4 travel the wrong way, Southbound on Harvard
Street and entered into the intersection striking. Mr.
Tucker's vehicle, which was traveling eastbound with the
right-of-way on 76th Street. At the time of the Collision
Chicago police officers, Carlos Gianna's Junior and Julian
Rodriguez were in pursuit of the Audi based upon suspicion
that it was stolen and being used for Narcotics
trafficking. I miss your talker sustained multiple
traumatic injury.
12 Day.
Spent 12 days at University of Chicago, hospital and another
20 at Shirley Ryan abilitylab, rehabilitation hospital with
medical bills of $331,000 for past injuries. He is also
seeking $93,000 for a future hip replacement surgery, and
the department of Le recommend settlement for $750,000
the plane.
the plaintiff alleges, in this case of the city of Chicago,
through its officers, Carlos, Gianna's, Junior, and Julian,
Rodriguez were willful and Wanton in pursuing. The Audi in
an unsafe Manner and in violation of CPD, general orders,
causing it to continue to flee and crash into the vehicle
driven by Vincent Tucker.
At least.
The police officers were assigned to an unmarked Ford
Explorer encounter Dowdy and pulled it over to
approximately 160 West 73rd Street base, upon it having an
invalid, South Carolina license plate.
Night.
Neither the driver or passenger could produce a driver's
license proof of insurance or registration the officers.
Noted, an odor of cannabis and that the driver Antoine
lock. It was handling a bundle of current. The interaction
was recorded by the officers on their body, one cameras
after lockup failed to produce identification officer Yanez
asked locket to exit his vehicle at which time lock, it
started to open his door, but then he immediately fled and
sped away in the in the howdy oxygen is in Rodriguez, then
return to their vehicle and initiate Pursuit.
Pursuit lasted approximately fifty-three seconds traveling.
Through mostly residential streets with little big dealer
traffic and little or no pedestrian traffic. The officers
called in to dispatch notified that they were pursuing and
gave the streets and locations, they were on. But did not
give the reason for the pursuit as required by the general
order, a supervisor went on here immediately prior to the
crash and a that's why the officers were pursuing in
addition while the officers use their emergency lights and
briefly toggle their siren during the pursuit, they did not
turn on their emergency Sirens continuously as required to
do. So by the general order governing Pursuits until after
they observed the Collision,
Bring.
During the pursuit. The Audi disregarded stop signs and
continue to accelerate away. Turning the wrong way, down a
one-way Street at 74th Street. And then turning to travel
Southbound on Harvard, which is a one-way Northbound Street
or the officers observed, a block of vehicle crash into mr.
Tucker's according to an Accident Reconstructionist
retained by the city, the highest rate of speed for the
officer's vehicle was approximately 52 mph during the
pursuit and averaged approximately 33 mph.
Bring the car.
During the course of the pursuit, which involved five turns
in the longest distance between any turn being a single
block after the Collision Ops is yanis. And Rodriguez
approached the crash site and Rodriguez got out of the
vehicle and attempted to chase. After lock it, lock it
initially evaded Rodriguez but was apprehended nearby by
another police officer. After fleeing from the site on
foot, lock it later admitted that he'd swallowed ecstasy
pills and that he that he had on him when he fled from the
officers
He pleaded guilty to leaving the scene of a motor vehicle
accident, involving personal injuries, aggravated fleeing
or attempting to elude a peace officer, and aggravated
driving under the influence of drugs and was sentenced to
two years.
In.
In their Pursuit report. After the fact, the office has
indicated that they pursue daddy. Based upon suspected
narcotics trafficking, citing the strong odor of cannabis
in the drivers, holding a bundle of currency. However, off
Rodriguez, I'm sorry. Yes officer Rodriguez can be heard on
his body, warm camera. After the incident, telling a
supervisor at the pursuit was for a traffic offense. No,
cannabis is found in that out of your on your fenders. Do
do you like it for lock it turned up a cannabis
metabolites. The plaintiffs police procedures expert will
testify that the office had no basis other than not
non-hazardous traffic offenses for which to initiate
initiate pursuit of the Audi and that their Pursuit was
there for prohibited under the police department.
Are lawyers. He also criticized the officers for failing to
use emergency sirens in continuing to pursue when the
offender's vehicle traveled, the wrong direction, down
one-way streets, creating a danger to the public that
outweigh the needs. You immediately apprehend the
offenders.
It's your Tucker sustained. A flail injury to his chest,
which consists of multiple rib fractures in more than one
location between the sixth through eighth ribs. He also
sustained a hemothorax were blood macavity. Surround you a
lung, the respiratory issues caused by these injuries,
complicated is Hospital, course of treatment. As he
developed hemorrhagic shock, that required him to be
sedated. And intubated for much of his 12 days at the
University of Chicago Medical Center.
He also sustained a left acetabular or hip socket fracture
and pelvic fractures as well as a compression fracture at
the t7 T8 vertebrae. These fractures did not require
surgery and fully healed. He did. However, have an extended
rehabilitation program at Shirley Ryan and required a home
home. Nursing during the months following his release by
the plaintiff retain, an expert witness who examined him
and has opined that mr. Tucker has traumatic arthritis
caused by this accident, and that he will require a future
hip replacement surgery. Mister Tucker also claims that he
suffered ptsd-related to the incident with nightmares
concerning driving and collisions and the inability to go
back behind the wheel of a car.
Following.
Following the accident. He also had head trauma, including
claims of minor cognitive deficits the plants past, and
future medical bills related. This incident total
approximately $425,000. If the matter were to proceed to
trial, a jury could award damages for past and future pain
and suffering, emotional distress and disability. In
addition to the claims medical damages La Department,
therefore recommend settlement for $750,000
Alderman Lopez, thank you. Madam chairman was the Audi
stolen.
There was no no, I reported it. Having been stolen. It was
completely unregistered. Was it? His was in Mister lockets.
They?
There it wasn't registered to mr. Lockett or to anyone?
So they're responding to a report of a stolen vehicle.
Convert.
Could very well have been legitimate.
50.
53 seconds. Mr. Lockett decided to go down the wrong way.
At high speeds to evade capture after being stopped because
of the, the drugs, and cash in his car. And yet we are on
the hook once again because we happen to have the biggest
checkbook because of criminals, correct.
You don't know.
You don't have to answer that.
You.
You are a B. I am. Sorry. Be the reason for the potential
liability. In this case, is that the law recognizes that
officers, you are in pursuit of a vehicle, have a duty to
do so and in a manner, that's not willful and wanton and
the
Obvious.
Obviously the offender carries responsibility for its kind
act as well, but you know how much is his responsibilities
costing him.
He's?
He's not taking part in the settlement, is the one
responsible. Thank you for the understanding. The merits of
the case, seems like it revolves around the conditions of
the chase happening outside of what the general orders for
officers will be in a case like this. There are two
violations in terms of not providing the information based
upon which you know, the options were pursuing initially
and then the lack of using Sirens continuously that were
alleged and you know what? Those obviously Earth.
Sometime.
Sometimes.
Sometimes happen as the pursuit develops but they did not
happen in this case. So that is part of the, the basis for
the liability analysis. Thank you, sir. Thank you. Dear,
thank you. All the men laspada, is there a motion to
recommend approval of item number 14a?
Call for roll call by.
Of course.
Bike. Share Conway.
All.
All the middle spider.
All.
Alderman, Hopkins, Alderman Hall.
Yes, or no.
All.
All the
Auburn Mitchell.
Alderman Harris.
all the
Automobile. Ottoman Lee.
All.
All the Ramirez Alderman Quinn.
All.
Alderman Lopez.
All.
Alma Moore.
Alderman. Curtis
All.
all the men of Shay, all the men, Taylor, all the memos,
Lee Alderman Rodriguez,
All.
Alderman, Scott Alderman, Seashore Lopez.
all my
Almond Burnett.
All.
Alderman, Ervin Alderman, Taliaferro.
All.
Alderman, Cardona.
All.
Alderman waguespack Alderman, Rodriguez Sanchez.
All.
Alderman Ramirez. Rosa.
All.
Alderman Villegas.
All.
Alderman, mid-autumn in sposato.
All.
Alderman Vasquez.
all the
Alderman. Reilly
All.
Alderman Knutson.
All.
Alderman. Martin.
All.
Alderman Silverstein.
Sure.
German dolls. Both side.
Set.
17 3B item passes.
All.
Hoffman Urban v. I 18 3.
The item passes will now move on to 14b. Thank you. Miss
Dorman will now move on to 14b.
Oh, I'm sorry, we have to give our court reporter, five
minutes of recess. I know those little fingers are hurting,
appreciate you.
By.
5 minutes.
No.
We will. Now we go back about that forward to our agenda
14b, which is Bernard Parish versus the city of Chicago
office of Gerald Williams case number 2020, l15 18 for
$750,000. We're joined by
I deaf.
I definitely Corporation counsel Victoria Benson Miss Benson
a plaintiff. Bernard curse or $750,000. This is a state
court. Lawsuit arising from officer. Gerald Williams has
use of an emergency takedown of plaintiff Bernard Kirsch on
November 28th, 2019 plaintiff alleges willful and wanton
contact with officer Williams. And the City of Chicago
officer Williams was not equipped with a body warm camera
on that date. However, the events were captured on a
cellphone video. By a passerby, as well as security cameras
of nearby businesses. The passerbys video was widely
disseminated on social media, local news outlets as well as
national news outlets
I know.
On November 28th. 2019, Thanksgiving Day at approximately 4
p.m. officer Williams and his partner were traveling
westbound in an unmarked squad car near the intersection of
East 79th Street and South Cottage Grove Avenue as part of
routine Patrol officers initiated an investigative stop.
When they saw the plane to drinking from a bottle of vodka
and entering a c, t a bus stop.
Off.
Officer Williams approached plaintiff, who appeared
intoxicated and began to swear officer Williams advised
plaintiff. He was receiving a ticket or an ordinance
violation for drinking on the public way. Officer Williams
was pointed at the side of the squad car. While his partner
remain inside the squad, car to run the plane is named for
a background and warrant check prior to issuing a
non-custodial ticket.
Longest word, officer, Williams, and generally became
non-cooperative. Also, a lick or attempted to lick officer
Williams officer. Williams did not request any assistance
from his partner, instead of Sir, William's howl on the
plane. So, stressed to prevent him from turning around
officer Williams, his partner, having to step out of the
car to check the liquor bottle for details for the ticket.
And at approximately the same time officer, Williams told
us that he was under arrest for the liquor attempted, lick
believing that officer Williams. Had the situation under
control. His partner, return to the squad car.
Play the
length of the
Think of them became agitated began to stiffen his body and
pull away while threatening officer Williams officer
Williams did not change a hold of plaintiff or request. Any
assistance from his partner, quickly thereafter the plane
to spit, phlegm and saliva into officer Williams eyes.
Officer William.
Officer Williams testified that his vision was compromised
by the spit and that he believed that the plaintiff was
going to further attack him.
Off.
Office.
Officer Williams been executed in emergency take down to the
plaintiff, a takedown involves officer, Williams wrapping
his arms around officer Williams live. I'm sorry. Wrapping
his arms around the plaintiff, lifting him up off of the
ground and then forcibly taking the plaintiff on to the
ground out of the street and curb area.
App.
After the takedown plaintiff was treated in a in an
emergency room where he was diagnosed with a concussion
symptoms, and acute, alcohol, intoxication. He was really
simple. He's custody following treatment there after the
plane was charged and arrested arrested and charged with
multiple crimes including a felony count of aggravated
battery and was issued a citation for drinking alcohol, in
public about a week after playing his arrest. Reverend
Jesse Jackson hosted plan to fail and plaintiff has
released from Cook County Jail.
Stop playing.
now playing at,
Now playing at the nice looking and spitting on Officer
William, however, he pled guilty to a misdemeanor battery
charge for doing. So according to Plaintiff, he only plead
guilty as a compromise, to get out of jail. Play In Flames,
I have suffered an exacerbation to an already serious eye
injury cognitive and memory issues because of a concussion
and a shoulder injury, causing him to continue to suffer
from ongoing shoulder pain.
Call.
Copa with a concurrence by the superintendent then
superintendent Brown found officer. Williams is used to
force his emergency, take down in this matter. Be not
compliant, with Chicago Police Department policy, given the
risks associated with proceeding to trial in this matter.
We recommend settling this case for $750,000.
All.
Alderman.
All.
Auburn and sposato.
but,
I am but I guess you just know. I'm I'm always right,
sorry? Sorry. For being efficient and showing up to these
meetings and asking good questions of Victoria. I'm glad
you said that I think to me, was where label on this, an
emergency take down, but yet he got time for using
emergency takedown. I thought the video was pretty clear
that he spit in his face. You said, he's been eyeing. It
wasn't it pretty clear in that amature cell phone video
that they spend his face or a lick. I even looked at it for
a couple years. I know it's all over the internet and all
over the news would be a defensive officer Williams
switches that he spit in his eye, but the playoffs, the
planet tonight is doing. So, that's all that was pretty
clear to me, he's been his face and even though he's going
to get it, I mean you can't deny a video thank you. Thanks
Victoria. Thank you ma'am. Thank you, all
Thank you.
Thanks Jim. You mentioned that then-superintendent brown
stated that after further review Herman Copa that they
agreed, that it was excessive use or no against policy
would have been an appropriate reaction to that. Anybody
State wood would a wood, would have been an appropriate
action to to that.
Okay, thank you.
Thank.
Thank you all them and Mitchell.
Augment baskets.
Thank you sir. I just had a quick question cuz I know and
I'm part of the briefing was mentioned is that the officer
did not have a body camera or you turned it off? Can you
put down a little more wet with a body camera? Was this
prior to body camera motion? To recommend approval of item.
Number 14, B.
All.
Alderman, Rodriguez, so moves to pass to pass motion. All
those in favor. Signify by saying, I
All those opposed was. Okay all the men pizzato anyone
else.
and,
And Alderman Mitchell.
and,
Anne, Curtis and Quinn.
Are.
Cardona.
All right, we will talk to do past recommendation with the
nose identify at the next city council meeting.
I'm moving on the 14th. See Garrett at all versus City of
Chicago at all case number.
Yeah.
Yes, Alderman Rodriguez.
3130 will commence several minutes after the conclusion of
this meeting. Thank you. Thank you, my bad. I should have
said that after break, but you got it.
Case.
Case number 2016 CV 7319 on the in the amount of 2 million
dollars were on 14 ft. We're joined by Victoria Benson
again from the court count. Thank you, share. Good
afternoon again, committee members. I'm here today to
request for approval to settle a federal lawsuit filed by
plaintiffs arising, from the fatal shooting of Darius, Cole
Garrett or two million dollars on August 14th.
20.
2014.
2014 to Chicago police officers, officers Matthew O'Brien in
office for James, bantley discharge their firearms. At Cole
Garrett, ultimately killing him, a federal claim of
excessive force against the officers of state law, claim of
loss of society, against the city, and the officers, and he
monell policy claim against the city of Chicago, alleging,
that the city failed to properly, train supervise and
discipline its officers, such as it was the moving force
behind the alleged constitutional violation body-worn
camera does not exist for any of the events at issue events
leading to the shooting are contested by the parties.
On.
On August 14th, 2014 at approximately 9:30 p.m. officers
bands. Leanne O'Brien, along with two, other officers were
on patrol in an unmarked. Chicago police SUV on the far
Southeast side of Chicago, near the intersection of East
133rd Street and South Mooresville Avenue near that
location the officers encountered. Then twenty-one-year-old
Cole Garrett who is riding his bike. According to the
officers, they had received a tip about a week earlier. The
gang members in the area were transporting Guns by bike, so
they wanted to investigate. Whether call Garrett was such a
courier when they saw him, the officers drove East on East
133rd Street and approach call Garrett and their vehicle
from behind him. When they were about fifteen to twenty
feet away from him, he also shown their vehicle Spotlight
on to call Garrett.
according to the,
according to the officers, if
According to the officers at this point call Garrett. Got
off of his bike, turns were the police vehicle and pull the
firearm from his waistband. The officers. Testified that
Cole Garrett, then took a tactical stance, swearing his
feet toward the officers, and pointing at the, the gun of
the officers with his arms, extended out in front of him,
according to the officers call, Garrett then turned
abandoned the bike and fled without firing.
One.
Once call Garrett began to flee officers, dancing O'Brien
accident, the police vehicle, which was still moving to
pursue. Call Garrett, on flight officer, O'Brien was
driving and failed to place the vehicle and park before.
Exiting this, let another officer inside the vehicle to
jump into the driver's seat to place the vehicle in park
while the other officers pursued, gold, Cole, Garrett on
foot as a result. This officer did not see anything that
occurred there after because he was busy, just trying to
stop a police vehicle from Rolling away. All he heard was
gun shots as the officers chased call Garrett, they yelled
for him to drop the gun according to officer O'Brien during
the chase when the officers were approximately 10 ft away.
From Cole Garrett, he saw Cole Garrett turn and point the
gun directly at officer bansley.
Officer.
officer O'Brien will testify that he yelled officer bansley
to Warren officer bansley that he was going to shoot before
firing his gun 11 times at call Garrett officer bands,
leave fired his gun five times beginning after officer,
O'Brien's has first or second shots,
Office.
Officer.
Officer bansley testified that he did not see Cole Garrett
points, a gun at him the second time.
Author.
A third officer who participated in the foot pursuit was
running behind officer O'Brien testified that he believed
call Garrett actually pointed the gun at him and officer
O'Brien. A firearm was recovered from the scene,
approximately 20 feet from Cole Garros final resting place.
Plaintiffs claimed that the shooting of Cole Garrett was
premeditated murder sparked by an encounter earlier that
day, according to plant, is the officers. Drove a police
vehicle onto a basketball court. For Cole, Garrett was
playing in front of him and made good on their threat. When
I saw him on Forest Hill Avenue later, that day, non-party
witnesses will testify that there was a confrontation
between the officers and plaintiff the officers. However,
deny encounter in call Garrett earlier that day, given the
risks associated with proceeding to trial in this matter,
we recommend settling this matter for 2 million dollars.
I seen.
I see no hands up for questions.
Can.
Can I get all the messages I do if some other people a
chance but what can I say? You know, we know you have
questions. I know the answer to a cuz I was actually at the
briefing so a couple quick questions. I don't think you
mentioned it this time that you mention it before in a
report that these officers didn't get any time and it gets
suspended or anything like that or Copa didn't find him
guilty of anything. This was investigated by Empire on the
shooting was found to have been Justified. Okay. And I have
to leave in the briefing. You said they saw him pointing a
gun Runner things buddy. So I'm planning on it. On the
first time I took a taxable stand, but they didn't see him
punch a gun at him. A second time when they shot him, as
I'm one of the officer said, he didn't see it the second
time. One officer said he was Rob Ryan says, he saw,
Old.
Olga.
Call Garrett point a gun at officer bandley. The second
time Officer bansley says, he did not see that a third
officer who was there. Behind officer O'Brien says that he
believes that Cole Garrett. He saw Cole Garrett, went the
gun at him and officer O'Brien rather than officer bansley.
I don't know, Ray was in proximity to the end of the
shooting or whatever so I mean if you wasn't looking and I
obviously wouldn't see him but they two of them Sade
I buy.
I break going to break it down for me to one time and a
two-time. How many guys are too tight, guys. Lunch sure all
officers in the car. Saw the first time when there was
still inside the police vehicle officer. O'Brien is the
only officer who says that he sees whole Garrett point, a
gun at officer bansley the second time. A third Officer
says that he saw whole Garrett point the gun at him and
officer O'Brien rather than officer bansley, which was the
second thing.
when you got,
When you got shot. Correct. Posture. O'Brien off so badly,
are the individuals who actually fire their weapons.
Officer bansley said that he did not see Cole Garrett,
point the gun. The second time.
Thank.
Thank you, Victoria. Thank you man. I'm sure Victoria just
a question. I have or any bullets or casings, whatever from
Cole Garrett, supposed to gun. Follow found on not that I'm
aware of. There's no obligation or suspicion that in fact,
quite the opposite.
All right. Can I get a motion to recommend approval of
item? Number 14c, move by Alderman Rodriguez all those in
favor. Signify by saying I I all those opposed
Okay. We're going to take a roll call vote on this cuz I
can't tell her tell me. Who's the no.
All right, all the mens bicycle Conway.
All.
Ottoman with spider.
All.
Alderman, Hopkins, Alderman Hall.
All.
Alderman Mitchell.
All.
all the
Alderman Harris Alderman, Beale, Alderman, Lee.
All.
Alderman, Ramirez Alderman, Quinn Alderman Lopez.
All.
Alderman Moore.
When?
What did you say? Okay, I'll drink artist.
All.
Alderman, O'Shea, Alderman, Taylor Alderman, Mosley
Alderman, Rodriguez, Alderman, Scott Aukerman, seashell,
Lopez Alderman, Burnett's all the urban Alderman.
Taliaferro Alderman, Cardona Alderman, wagons back. All the
men Rodriguez, Sanchez.
All.
Alderman Ramirez. Rosa.
All.
Alderman. Villegas Alderman, alderman. Sposato
All.
Alderman, Vazquez Alderman, Riley Alderman Knutson.
All.
Alderman. Martin.
All.
Alderman Silverstein v. I
that's,
Vasquez. Both Albany basketball. I all them incardona V. I
know. Okay, hold on a second. Okay.
So, I'm 10 I-10 knows the item passes and will report to do
pass.
I see.
I said that 10 eyes and 90's.
The item passes and will report this out at the next city
council meeting. Thank you very much item. 14d Darnell
Smith at all versus City of Chicago at all case. Number
2015, CB 3, 6 4, 7, 4, 4, million, nine, hundred and
$87,500. We have Jennifer Bagby from, from the Department
of Law.
Citicorp.
Corporation counsel of,
Corporation counsel of the public safety reform division,
I'm here today. Requesting that you approve settlement
Authority in the matter of Darnell Smith at all versus City
of Chicago at all. This is a class action lawsuit that was
filed in federal court in 2015, alleging class claims that
the city maintain a policy or custom of unconstitutional
stops of individuals, by Chicago police officers, without
Reasonable articulable Suspicion there for in violation of
the Fourth Amendment and the principles of Terry versus
Ohio. The underlined claims were brought under section 1983
of the Civil Rights Act,
Stop.
some of the unconstitutional stops raised in the Smith
lawsuit include investigatory stops conducted specifically
in enforcement of the city's gang and narcotics-related
loitering ordinances the department of Le recommend
settling Smith to the following by adding pedestrian.
Investigatory stops to the existing policing consent,
decree to dress revision to CPT policies and procedures
regarding investigatory stops, as well as the monitoring
reporting review Community engagement training and
accountability measures related to an in-basket. Rory stop
procedures including specific revisions to enforcement of
the law during ordinance to ensure that all stops are
properly documented and conducted consistent with the
Constitution.
Addition.
Additional.
additionally, and the
Additionally and negotiated monetary damages and attorney's
fees and costs in the amount of 4987500 dollars. The Smith,
plaintiff's originally sought declaratory relief that the
city's policies practices, and procedures, involving
investigatory stops and protected pat-downs as well as
enforcement of the war during ordinances were
unconstitutional. And discriminatory we applied this. The
damage has also sought compensatory damages on behalf of
each of the individual plaintiffs for their specific stop,
as well as class-wide compensatory damages for all stops in
the designated period of time. Which would be all
individuals stopped since 2013, which would be over 2.5
million documents tops.
The play.
The plaintiffs also sought injunctive relief in the form of
their own consent. Decree whereby a court-appointed monitor
would oversee cpd's loitering enforcement practices and
investigatory, stop and protect a pat-down policies
training supervision and discipline the plaintiff. And
Smith also sought punitive damages on behalf of each
plaintiff as well as attorneys fees and costs under Section
a 1988 of the Civil Rights Act that would likely have
amounted to 10 million dollars that the matter proceeded to
trial.
Through.
through the
Through litigation. The city was able to significantly
narrow the claims and issues including reducing the
original named plaintiffs from 35, to the current existing
5 named plaintiff. None of whom have any reportable
criminal history. Additionally, through litigation the city
was able to prevent certification of a monetary damages
class that could have covered. All of those individuals
stopped since 2013 for their own monetary award and this
allowed the city to engage and settlement discussions and
reach the proposed settlement by lowering the previous to
me. And it was only through this earlier litigation that we
were able to reach this proposed agreed settlement,
although the city was successful in limiting, the class the
court did certified two classes for declaratory and
injunctive relief. That would be the subject of any
litigation at trial. The first class is a fourth amendment
class. Consisting of all persons who have been since April.
give to
If 2013 or who will be subjected to an investigatory stop
and the second class being a fourth amendment. Subclass
specifically involving stops related to the enforcement of
the gang and narcotics loitering ordinances by certifying
these classes, a federal judge has determined some evidence
of unconstitutional investigatory. Stop practices including
in the enforcement of the gang and narcotics loitering
ordinances
The benefits.
The benefits of the settlements are that the city would
otherwise have to litigate five separate trials. If this
matter which proceed to trial and would risk a declaratory
finding that the city's policies practices and procedures
involving investigatory stops and protected pat-downs, as
well as the specific enforcement of these ordinances are
unconstitutional and discriminatory the attorneys fees and
costs should the city not Prevail a trial could reach ten
million dollars. If we were to litigate all of these
matters as well. Bye-bye, this settlement there will be
consistent oversight and monitoring of investigatory, stop
policy, training and review that will ensure that cpd's.
Investigatory stops are constitutionally conducted
well-documented through the consent. Decree, which has an
established mechanism for the development and review of
policy and training and a process to help the city and see
PD ensure consistent data collection and Analysis.
This.
DeSoto.
The settlement does not prevent the enforcement of the gang
and narcotics bordering ordinances. The only change in the
enforcement is in the documentation of the initial contact
through a dispersal order, as required by the ordinance and
not through a contact card or an investigatory. Stop
report.
I just know.
Additionally, the
Additionally, this settlement ensures that enforcement is
consistent with the ordinance as written and the
Constitution, and that officers have the necessary tools to
conduct enforcement in a manner. Consistent with the
Constitution and for these reasons, the Department of Law.
Is recommending me the settlement. Thank you.
All.
Alderman Lopez, I'll give Nick a break.
Your way.
You're welcome. So good afternoon again. Madam chairman
good afternoon, Collies. So couple questions if I may
The original settlement for the two-point, the original
settlement request for the 2.5 million dollar 2.5 million.
Arrest in question, was what?
and,
Unfortunately, I given that we're in a public public
hearing settlement discussions and negotiations are
confidential under the federal Rules of Evidence of the
federal rules of civil procedure. So the original I can
just say that the original demands on the original case. As
file before it was Daryl down was a significant higher than
a negotiated amounts that we were able to agree to subject
to your approval, based upon that litigation that's a
place. So we are ninety-nine percent difference.
where we were, when they
Where we were when they first filed with this 99.7% roughly
so I don't get in trouble for saying anyting why is there
no effort to push even further?
Consider.
Considering that we've seen the the ask change dramatically
not once, but twice. Now, we've seen it changed
dramatically. Also with the reduction in the number of
class action. Participants to the fact that there were
numerous motions to dismiss that we're litigating in the
course of of establishing and certifying the class, the
judge was able to weigh the evidence before her of what
cleans would withstand. And that's the claims that were
left additional Aid that there were significant settlement
measures taken, there was a mediation and settlement
discussions through both the court as well as the use of a
retired federal judge who acted. So all of this stems from
2.5 million arrests from that time, span of which racial
profiling is being used as the basis for
The.
This.
This lawsuit arrest. These are these were about to get
worse. So 2.5 million investigatory stops and we're being
accused of racially profiling 2.5 million, people or 2.5
making 2.5 million racially profile investigatory stops in
Owosso. Now, when the Law Department review that did we
Weather.
Were there any of those 2.5 million stops? Did they
actually produce people who were
in possession of illegal illegal drugs, in possession of
illegal guns, possession of anything that would warrant
enjoy.
and justify a stop Pandora.
Rizal.
Result in arrests. Remember, first of all, obviously, in,
in the open meeting such as this protecting what privilege
than what would be considered, work product, and
deliberative, in terms of how I lost it touches offended
but the focus of this lawsuit is on
What the city?
What the city can prove in terms of would be able to prove
that this matter where to go to trial in terms of those
stops, it occurred some, as far back as 2013 without stay
body cam video without saying, the documentation that made
this today. So again, it's a focus on how we would defend
the claim. So let me ask then, one of the things that we
are constantly it with is that ever delightful monell case,
would that have been applied to this lawsuit as well, would
still be standing. There could still be litigated if this
matter where to go to Trump.
I'm
I know that it was requested or what the specific changes.
What's?
What does specific action changes? Because of his class
action will result to in terms of the general orders?
What's?
was a
Was that provided to us?
No.
Will.
Will that be provided to us?
We?
We've made the request through the chair. When you attended
the briefing Alderman Lopez, we have not received a
response yet so I can't say yes or no. We did make the
request for waiting to hear back. So chairman may I ask
when we have a situation like this for example and I
appreciate you making the request of the department.
Why are we not given the answer when we have to decide on
whether or not our department is in the writer in the wrong
and we specifically say that you are party to a lawsuit.
They can quite literally changed the way. We engage
individuals who often times are infecting loitering. When
you are now telling us that are police officers, cannot
visit someone for 12 hours. How are we supposed to make an
informed decision when the department refuses to cooperate
and which department is refusing cooperates? I don't want
to assume it's the police that might be the Law Department
not cooperating with us.
He's refusing to cooperate, certainly.
Is refusing to cooperate. Certainly you're well aware of
what the watering ordinance requires in terms of dispersal
order. That that is what the the change ncpd policy is
supposed to be is the requirement of the dispersal order
and not any form of an investigatory, stop to gather
information. Individualize information from people that is
what is the source of the problem or the issue raised in a
lawsuit? So the the proposed changes to cpgs policy are
consistent with your ordinance as written and provide
officers. The tools to enforce the ordinance without
unnecessarily running into an opportunity to unnecessarily
mean, someone go get their information about gang
affiliation or other things like that which are all useful
tools to us. Thank you, Sharon.
Ice.
Ice chair, Conway, followed by all the mrs. Oh, thank you
madam. Chairwoman obviously Miss Bagby. We work together
for a long time, the State's Attorney's office. So, I first
want to say that I appreciate the hard work of you, your
department, as well as outside counsel, in this matter, in
the in a 99.7% reduction in and potential liability here to
quote, My Collie out of the proposed settlement of what was
it 4.987 million.
What is?
What is the is the approximate breakdown between that they
will go to attorneys as well. They will go to the
plaintiff's in question, both the awards to the individual
plaintiffs and the proposed attorneys fees were negotiated
with the assistance of the retired federal judge who act as
mediator and the breakdown is $112,500 amongst the plane
test and 4875000 dollars to attorneys fees and costs.
So perhaps if you could give us just a a very short, one
paragraph primer on how section 1983, 1988 attorney fee
Awards, may go in federal court, based on that. Savage Lee,
that is tracking certainly. As I stated in earlier, on the
presentation at this matter where to go to trial under
Section 1988, it's likely that the attorneys fees and costs
to the plaintiffs attorneys. If they prevailed on even a
portion of their claims could reach ten million dollars. So
under section 1983 and section nineteen eighty eight of the
Civil Rights Act where plaintiff prevails on those Federal
claims the defendants and that would be the city is liable
for and is responsible for paying fees and cost.
and I know,
And I don't want to get too much in the realm of
speculation. But if say the plaintiffs prevailed on one of
the five claims outstanding, would it be possible for there
to be a judgment of exceeding? The $5000000 it? Is she
here? Yes, especially in light of the fact that this case
was filed in 2015. The number of motions to dismiss that
were litigated and the cost of them would have gave him a
case of trout. No further questions here, all the men
laspada. I mean, I have to say I have all the members spot
on all the mens pizzato Wilkin.
Alright, thank you answer. I don't want to disappoint the
no girls so I know what she's heard about me. So we have to
I think I think I heard you answer a question from Vice.
Your kind of how many people do you say got to 110,000? Was
a 45? I hear you say 10 or 5. Okay, so five people got 110
and the rest is just off and it and they went from
1025000000 to 5 million against the specifics of settlement
discussions are only a Madam chair but yes, I do support.
Thank you all the mister Sato. The letting the cat out the
Alright, can I get a motion to recommend approval of item?
14d move by Alderman Vasquez, recommending to pass all
those in favor. Signify by saying, I
Alderman Lopez.
As we?
As requested a roll call Alderman Conway.
All.
All the middle spider.
All.
Alderman, Hopkins, Alderman Hall.
All.
David Mitchell.
Alderman, Harris automobile all the men lie.
All.
Alderman, Ramirez, Alderman, Quinn.
All.
all the
Alderman Lopez.
All.
Alderman Moore.
all the
Alderman. Curtis
All.
Alderman, O'Shea Alderman, Taylor Alderman, Mosley Alderman
Rodriguez.
All.
Alderman, Scott, Aukerman feature Lopez Alderman. Burnett
Alderman, Alderman, Burnett. I heard you. Okay. All the men
Irvin Alderman, Taliaferro.
all the
Alderman.
Tell.
Taliaferro Alderman, Cardona.
All the
Alderman waguespack Alderman, Rodriguez, Sanchez. All the
men ramirez-rosa
all the
Alderman Villegas.
All.
Alderman mitts ottoman sposato.
All.
Alderman Vasquez.
All.
Alderman, Riley Alderman, Knutson Alderman, Martin Alderman
Silverstein
The roll, the roll call, vote is 18 years and two days. We
will report item 14d out at the next city council meeting
in the affirmative before we adjourn. I wanted to take a
moment to introduce committee on finance staff. I want to
introduce Audrey. Wade, who is the attorney for the
committee Rene Barrera, who many of, you know, from
From.
from the budget Department, Brian Friedman, who you all
know from the budget committee and Lucy macedo
Are.
And my intern Micaiah.
Who is going to USD?
So there be no further business before the committee. Can I
get a motion to adjourn?
Iron on the budget.
Belt.
That way.
That was, I'm getting to filling out my staff. This is not
the full staff in the, all those in favor of a German, say
I in the opinion of the chair, there is no nase. So the
committee on finance is hereby adjourned.