Good morning. Good morning.
I want to welcome everyone to the meeting on the committee
on housing and real estate of the Chicago city council. And
we calling the meeting to order today. We have one item on
the agenda. We are going to first start with the Roll Call.
Will now go to the road. So please if you have your mic
ready going to start with a vice chair Mitchell.
Pastor Mitchell present
I want to spot them all my spot a present a present Allen
Robinson Robinson Preston Alderman Harris Harris present
album Queen and queen present album War.
Alma Brown Morneau present other women Taylor Taylor
Preston other women Scott
oldest elements card not present
alderperson Fuentes
Alabama Net Present Alderman biagas present illuminates the
present other than clay
automatically present a present and all the women had it
out of my head and pressing so that's
and when we talked so we got 12 members present. So that
makes a quarter. We have a route 49 that has been called
requested by all the person who enters the baddest
Rodriguez Sanchez i m Rosa
and other women artists going to get a motion to approve
buy persons to be to have a more participation other man
play absolute favorites. All those opposed to name on the
eyes of the chair that I have it so weak now would be
joining by the members the rest of the members via Zoom. We
have a lease other person Tavares on the line would be
waiting for the rest of the members to join us. We have a
total of 13 members present in before we go into the into
the public participation. We have one speaker present
today. Did you figure we have three minutes to speak on all
items on the agenda? And before we call the first Speaker,
I would like to just remind you of the rules to public
participation. We want to make sure that all commanders
know that doing to mention of the city council. They're
following us.
Permitted a profane or vulgar threatening abusive or
disruptor language are not permitted the meaning of
discriminatory of harassing behavior and its pitch directed
towards others is not permitted disruptive behavior,
including disrupted or disrespectful conduct during all
these presentations is not permitted Banner suppliers of
stagnant are not permitted back a large box of sharp
objects are not permitted and clear a clear back North in
color that are not exceed twelve inches by 6 by 12 inches
will not permit it and are subject to search food and
beverages including meet canisters and I permitted cell
phones must be placed on silent private to enter in the
meeting room individuals must remain seated table command
speakers are permitted to stand only when they're provided
by becoming a small handheld devices may be used only while
seated under users must refrain from interfering with a
view or the king of other individuals. So
I will make sure of course the council has the authority to
discuss these rules. At least at this point want to make
sure that we conduct productive conversation. So I'm going
to be first, the first Speaker. I would like to call mr.
George, Blakemore.
These rules are out of order and you are out of order.
Michelle Harrow Place those rules as a committee of a whole
with the first time that the body met everything must go to
the rules committee and at the rules committee, then when
the people would have an input we had no input in these
rules. You just got through reading the sergeant of arms
has no power to make roux only what how did Michelle can
eat that in?
She's unethical. She's a professional. She said the whole
Council was the committee.
I was sitting on my commode and get spanking new. I seen
that. How did she do that?
Why did she do it?
Because she didn't want to hear from the public Baby Alive
put toilet back and then do the lottery came in. It never
went to the rules committee.
Thank you, Miss. Jeanette Taylor for bringing up at that
issue with Finance. This could also be in the finance
department. You're not proving with the money all those two
buildings going to fail and we have a lot of lot of
building a city own vacant be housed there. Thank you. I'm
one of your best friend and your worst enemy when you do
something that's helpful to our citizen. I support you but
when you do something that I think it's not I'm against
you. So please on Earth all of you to vote against this
everyone who's here. You're not supported.
Jeanette Taylor you are just doing what is good job for me?
And you must protect the money.
The city money honey. It's about the money. So you heard
you next time you have these meeting make sure your
constituent come here educate them informed them
enlightened them what they would tell you what they want
you to do. But where other people you read these Ruth you
are to our gun.
too complacent
corrupt, you know the song about I have no power to make no
rules. Why did she do that?
Why did she do that? Why did we let her do that? It never
went to the rules committee did not come on Frank and I
think she made the whole.
Thank you. Mr. Blakemore that computer probably coming or
first order of business. And before that. I would like to
recognize a few of the persons that I just join us just for
the worst purpose of the Quorum recognizing other person
Scott as well as other person when I have been worth
welcome as well or first order of business is the rule 45
report from November 29th, 2023, which was handed out to
committee members. Can I get a motion to recommend approval
of this report? So move out of all them on the spot. I'm
all those in favor. Say aye all those opposed to name in
the eyes of the fate of the chair of the eyes have it the
roof 45 reported as being approved.
Now we will move on the first item and only item on the
agenda item number one is what does s o 2 0 2 3 0 0 0 5 7 3
1 third amendment to lease agreement with no LaSalle
Financial Associates LLC for additional Lisa space at Suite
1600 to service Community commission for Public Safety and
office of climate and environmental Equity doing the
build-out of the 94 at 2 North LaSalle Street, Mishawaka to
Chicago Department of assets information and services is
present who testified on behalf of this ordinance.
Good morning, honorable chairman and members of the
committee. My name is Michelle Woods. I'm on behalf of the
Department of ss information and services this ordinances
to request an amendment to the lease to North LaSalle to
provide office space for the community Commission on public
safety and accountability the ccpsa and the office of
climate and environmental Equity soon-to-be Department of
environment the city currently rent several floors at 2
North LaSalle Street from North LaSalle Financial
Associates LLC, which is managed by the Herndon company
Department's currently operating in this location includes
Ste. Housing Aviation a is a is it soon-to-be the
department of technology and the Department of Finance the
ccpsa and environment?
Currently and temporary space that they share with staff
from the Department of procurement services and the
Department of Business Affairs and consumer protection. The
department has received several requests for additional
space at 2 North LaSalle Street to accommodate feeling
Personnel. They can seize from multiple departments. There
are approximately 650 City personnel into North LaSalle now
and there's 90 vacancies at the Department's are looking to
fill in 2024.
the least 4 to North LaSalle was originally approved by
City Council in 2019 and Consolidated the leases for both
30 North LaSalle and the DePaul Center space improvements
to maximize the footprint and established a city standard
for employee Furniture was included and the project the
requirement was Define a property and close close to city
hall because of the collaboration with the departments in
City Hall the First Amendment adjusted the commencement
date of the lease the Second Amendment evidence that the
location of phase two and confirm the rentable square feet
or Phase 1 and Phase 2
The third amendment before you today will allow us use of
Suite 900 which has approximately 16097 square feet at
$36,271.91 per month, which is anticipated to begin in July
of 2025 when we would occupy the 9th floor the rent
schedule for the initial least started at 2450 per square
foot with a two and a half percent annual increase the
phase 3 rate will be at 2704 per square foot upon
occupancy, which is anticipated in July of 2025 and will
also have an annual increase of 2.5%
According to the jll office market report for Chicago
published on December 4th 2023 current market rates for the
Central Loop is $39.48 per square foot in River North is
3950 per square foot.
The raids have been charged in a seminar consistent with
the lease approved by City Council in 2019 and are
significantly below the office rate for downtown. This
amendment will allow offices for both the department of
environment and Community Commission on public safety and
accountability. In addition to the favorable rent for phase
3. The landlord is also providing 10800 square feet of
furnished temporary space.
16th floor for the ccpsa, which they can occupy upon
approval of the amendment at no cost until the ninth floor
becomes available. So the landlord is providing the 16th
floor for free. Both departments are filling existing and
new positions and office space is needed for additional
staff. The ccpsa has new hire starting this month and now
available work stations in addition. They share space with
other City departments and need to maintain private
conversations because of the sensitivity of the work they
do the new space has become critical for them the
department of environment as unable to post any positions
because of the lack of available workstations moving the
ccpsa to the 16th floor will free up workstations that the
department of environment can fill with their new staff.
Are we are working with both departments to identify
opportunities to have a presence in the neighborhoods in
the initial thought.
For the ccpsa was to potentially partner with the Chicago
Public Library and utilize Community rooms for meetings.
But we welcome your input on identifying other locations in
the neighborhood a recent survey of city-owned properties
with conducted and bake. It properties that are available
are not available to be occupied without significant
Capital Improvements, or they're on the department of
Planning and Development list of properties to be sold and
assessment of City Hall is also being performed.
By all the Bureau of architecture engineering and
construction to optimize the space in City Hall and this
report will be provided upon completion to North LaSalle is
located in the 42nd Ward and we've received no objection
from other Riley. I respectfully request your favorable
consideration of the amendment. This concludes my
presentation and I'm happy to answer questions the
committee may have and I also point out that we're joined
today by representatives from the Department of environment
and the ccpsa if you have questions for them as well, thank
you, mr. Chairman and members of the committee. Thank you
Michelle. Also like the right before we going to questions
just for the purpose of the Quorum. We've been going out
but all of them or I'll remember to get Sanchez and
aldermen ramirez-rosa. I believe Sanchez album is what's
about Remote Link. So you have you hang up.
Yes, I just wanted to be recognized under.
No, they think you all the time you being recognized for
the purpose of Quorum. Is there any questions or comments?
Please raise your hand all the men. Should I tell her I
will as well as been Queen for Belgium Quinn Elementary.
Thank you. Mr. Chairman. Thank you for the report.
There were a lot of questions around what we're spending on
this building and am I correct? It says today 28 million.
Is that correct? So 28 million dollars for a building. We
don't know. How can you tell me over how many years the
lease is for 15 years. So so the least that we're currently
going to sign is for 15 years. It terminates in 2035. Is
there some conversation after all that said that us not
having the lease for that long. So there is a termination
Clause Alderman and then that would there would be a fee
associated with that. So forgive sample, they've done a lot
of tenant improvements to move in the Department of Finance
and it out of the DePaul lease and consolidate I'm at to
North and so those cost of the improvements of an amortized
over the term of the lease. And so if we terminate early we
would have to pay a penalty for that.
I'm struggling with this. Can we talk to the Department of
environment and Department of the commission about what's
going on with there was what's the downfall about not
having a space and actually kind of what they need.
And we have yes, we do have representatives from both The
DaVinci Code for Centerville officer Jared and we also have
represented by the committee commission for public safety
record of bility mean iguana directed specifically explain
how not having his face cuz imma be honest. I think this is
wasteful but that's a fight for another day. I want the
public to know what is happening with suits. We fought for
both of these committees. And so we need to know kind of
what's going on with them with they're not able to get work
done cuz that's what I heard, but I want to go on public
record to say what is happening with the two committees
that we fought to build to have and city council not having
a space to to do work. Yeah we can be so maybe we can
drink. Thank you.
And we can turn on the mic.
I think she has been a constant struggle for our
commission. We have lost half I expected. I'm sorry. If I'm
Anthony driver president of the community commission for
Public Safety and accountability. Also expect us to lose
more if the things continue the way that they are we don't
have access to the very basic things a lot of it. I talked
about during the budget.
I'm Francis right now. We only have one person with an
office and that's our executive director. We have a staff
of 23 the district council members are not supported in the
way that they need to be for me personally has been a
constant struggle just typing that I received from the city
of Chicago to do this work. I'm in the hole every every
month and it's because there's no actual office space when
I leave here. There was a detective who reached out to me
what the following our commission has some concerns that
she wanted to share but I have to take her to a coffee shop
and I'm going to pay out of pocket as always do because I
think that's the appropriate thing to do but it's
inappropriate to be having those types of conversations in
a public space and I actually have an office of general
counsel who is a lawyer who gives a very sensitive
information that they have an office and we did the
superintendent search. We had 54 applications of police
leaders from all around this country. I was very worried
about a leak and in boats information being made public. I
was a top concern of mine, but we had no office space to
actually sit down and review though.
So that's rated very tough situation, especially considering
the fact that all seven of the people who serve on this
commission. I don't have full-time jobs are in school. So
we're trying to come in after hours and review application,
but we don't actually have a space to do that or even a
building to go into our staff is all jammed into cubicles
and shared space as we're having sensitive conversations
with organizations, like Copa cpd2 police board. We're
constantly reviewing different police word applications and
sensitive things that we have nowhere to do that many
times. Do I have to pile into our executive director's
office which is made for one person to have closed-door
meetings because there's nowhere else to have it or when
I'm having a conversation with our lawyers and or or our
research folks who are all of the sensitive nature
sometimes have to walk into other spacers into the shower.
You can come to this building just to have conversations
because we don't have space at the last thing I'll say a
German dial mention that this would affect us for hiring
going for it. But the reality is is it's affecting you
Right. Now we have two people that while I think one just
started and one is supposed to start in the coming weeks.
We have nowhere for that person to go. So that person will
start and will not actually have a cubicle or dead space
let alone somewhere to actually close the door and do real
work and have conversations. You assume that I'm very
sensitive.
Thanks for the question. Older woman Jared Polis. Shake you
on the deputy chief sustainability officer. Angela Tobar
sends her regrets. She's stopping the mayor at a
tree-planting event actually this morning. Yeah, very very
similar to to watch the folks on the ccpsa said, you know,
first of all, thanks for your all's leadership. Like you
said we were in this position because of the leadership of
the council in in reconstituting the department of
environment and putting in the budget additional staff. So
we're in a position where I am right now. We we have 5
staff members many of y'all know all 5 or close to all 50,
but we we have nine additional ft. He's either that were in
the 2023 budget and we're in the process with the HR. We we
we are within days to weeks of several those positions
being ready to be posted or the rest of the positions will
kick in as ft.
in the 2024 budget and similar to ccpsa, we we have no
location for those for those folks to to sit once they're
on board it and yeah, I know I speak for 4C asoto Barbie in
her top priority in our top priority is building out that
staff as quickly as possible because we can't begin to
deliver on the agenda that you do you all want us to tow it
to be working on if
If we don't if we don't get those positions filled and have
a place for them to go I will also just say, you know, we
share your your interest in exploring at us Michelle
Halstead opportunities down the road for a present idea. We
presence outside the loop and you know, if you worked it
with us on our priorities that's very much in line with our
priorities. So we welcome that conversation. I think we're
also no position do it like like ccpsa wear today and next
week and next month. We also need a you-know-what
sufficient workspace to to work on all of the many things
that were working on related to the environment. So happy
to answer any other follow-up questions you have about our
stuff for the commissioner.
Why Captain here's why not? 5194. Why not because
28 million dollars could have fixed every vacant building
that the city owns in my ward and knows the spaces that I
could share with not only organizations. I wouldn't be
paying rent. I could use that to go back into the city. We
need to re-evaluate how we least because that's a very long
time and I don't care if he give us three floors free for
28 million dollars. We bought that building I would be
interested in.
Seeing how much that building access for cuz I'm pretty
sure we did about that building twice. And so because I
know how important these committees are. I'm going to
support this but I don't support it be in 15 years that
makes no sense to me. And that's that's a monopoly
out-of-this-world. It just it makes no sense. And we're
talking about how do we build a city that we actually that
we all I don't know that City Hall cost and support since
we invade and so I said, I'm going to support this because
I want these organizations that have a space that I don't I
don't want to leave them out. I don't know how hard we want
to have these committees, but we're going to have a real
conversation about how long we signed leases and I don't
because even if if it's a 15 years and it pay for up keeps
we paid for that and we're leaving it still the building.
They can only sell to the next person at the cost of
taxpayers and that's not fair to anybody. So that's all I
got. Thank you. Thank you Miss person. Thank You album by
show me who is the least 15 years or after a certain time.
Do we have the option to relate to renew?
I believe there are extension options as well. But the lease
is the term is 15 years and
We if we were to terminate early the longer. We wait to
terminate the less that the termination penalty would be
made to changes every year because of the cost of the
improvements being amortized over the cost of the lease,
but I can get that information through the chair. Thank you
for sure, And yesterday in the Sun-Times about a good
number of buildings Office Buildings being in distress has
is to North the sale in any distress.
Not that I'm aware of all their men should we know that
before we get into an arrangement leave because of the the
arrangement they have with us and occupying all of the
floors that it's in it's in good condition. It's not you
believe or you know, at least I get to Hilton Head weight
now.
And if it's in distress, how could this adversely impact
the agreement were prepared to vote on?
I'm not sure how to answer your question because I have no
It's been probably in distress because the city moved out
of it and it doesn't have any I don't know probably I don't
know. I don't know. I just want to make sure we understand
that there's been wide reports from going on yesterday's in
the sun times as much as 50% the office buildings down here
are in distress. How does that impact our lease?
Well, the lease was originally signed in 2019. So and the
real estate market has changed tremendously, but I have a
level of confidence and then I can't give you a hundred
percent certainty obviously, but I have a level of
confidence because of the agreement with the city of
Chicago that occupies half of the floors that the building
is and good standing. I don't know if that something here.
You can speak to we have you Murphy is here with jll and he
was part of the original deal and is our subject matter
expert on real estate and maybe he can speak to the level
higher level of confidence has our subject matter expert in
real estate.
Again, my name is Schumer fee. I work for Jones Lang LaSalle
and Executive Vice President. I worked on this project from
the beginning from trying to work through all the different
buildings that was looked at by the city to ultimately the
selection ultimately is the likes of shooting me though.
Please be approved by city council. The building at 2 North
LaSalle is not in distress at this point in time. There is
no one that can predict what will or won't be under stress.
The reason buildings are in distress. Typically today is
that they have loans they're due and each building has
different loan structures and it really depends from
day-to-day. What is going on your answer the question what
would happen if the building was in distress? It would not
matter to the city and wouldn't have met her to the city's
least. They would still be required. The building would
have to provide all the services that they have I been
contracted for and they would go on it's not uncommon to
question about 30 North 13th North that was part of a
series.
The building's on that was owned by that owner that end up
into the stress. I'm that was just one part of their
portfolio, but certainly having the city move out of that
did not help the situation for that company overall, but
they had other issues with other buildings. So, okay. So
for the record to the best of your knowledge to North
LaSalle is not in distress right now, correct at this point
and for the record
If it were to become in distress, it would not adversely
impact the agreement. We're going to go to Chicago and many
many buildings. There's many buildings that are in
distress. They actually do Lisa's every single day. It's
just a different approval process. The idea though is what
ends up happening is heading to recapitalize and everything
else if you go back and think about if you're around in
2008, there was a lot of buildings that that happened to
back then and they'll both saw all those buildings came out
of it and move forward. It'll either readjusting what's
going on. I'm not about to sit dick what'll happen with all
the different buildings along the South no further
questions other person's car.
So I just wanted to go on public record because you know, I
just think that when we have council members, you know, it
is important that we do look at the cost of how we can
effectively save for the city and the 26 million, you know,
it is kind of mind-boggling to all of us and the work that
the environmental and the community Safety Committee
everything is done in our community. So I know that there
I left rent that are paid like possibly in.
Logan Square the 24th Ward, that's how you create new new
neighborhood. And so sometimes you got to step out of your
box downtown is nice and it's the Elusive and it's lovely
but sometimes I think it's important that the work that
you're doing is and communities. It's not downtown. I come
downtown for committee meetings. Not might the
environmental impacts are not right here downtown there in
our communities. And so those are things that you know that
I guess this is already into fruition right now, but for
next year, this is something that we need to look into that
this doesn't happen again. So if your lease is not for sale
when you're negotiating a teeth at least then least needs
to come out of place and you need to come inside these
neighborhood because if if if if you doing the work for the
community, then you need to be in the community and that's
just how I feel. I'm in the community and I'm starving
where I live and it's so if you're starving us you need to
come inside of the community and set up and your safe space
for 28 million dollars that
We then in our communities have to answer to because you
want to office downtown because your office and what where
I'm not going to I can't say that I can support this
because I don't have I don't have new paint job in my
office or floors. And so I'm supporting 28 million and I
only need Paint and new floors in the office that I
inherited. So this is
And that I couldn't support application.
This is Anna.
The full cast of The 15-year lease for 28 million dollars
is not just for these two departments. Correct, correct. I
just wanted to put that out there right because it's not 28
million extra though. So this is we're talking about a
space where we're leasing. We're getting three additional
floors. We're going to expand we are we have a current
lease. We're going to expend our lease with this. I just
want to make sure people know they would be it would be
absurd if we were paying 28 million extra for two small
departments to have space. So but I also want to just
acknowledge. I also agree that 28 million over 15 years is
the cost of a building so want to acknowledge that too but
just wanted to clarify the other person's car. I'm totally
aware of that. But as a older person that sits and I have
to negotiate painting and floor, but we have rent over the
last couple of years. That is 28 mil.
asinine so
Thank you. Think of the person Scott album on Spotify.
Thank you so much. And I just want to make a couple
questions of the buildings that are in financial distress
the challenges meeting. Your mortgage payments comes from
high everything higher vacancy rates. Does that sound
accurate?
Well, that would be cracked because you're not getting the
income in theoretically to be able to pay that loan. So
it's like that that's exactly what would happen. It's kind
of what I figured in. So B by the city establish a learning
and expanding this least if it goes to figure it makes it
less likely that the building goes into financial distress.
Does that also send accurate it could but again it's a very
large building with a lot of other tenants so I cannot make
that prediction long-term what it what will or won't happen
with with any particular building. That's that's in
downtown again the process that we went through the city
wants you to look at all the different buildings and all
kinds of locations and come down to this person is going
ahead and take a look at the at the end looking at that
person's 30 North LaSalle. This was significantly less
expensive than going to 30 North LaSalle. That's why the
original lease was was executed, but you'd have a hard time
paying your bills.
That makes sense. No, I mean the only other thing that I
think about it, I appreciate the idea of leasing more space
in neighborhoods. I know that also for the amount of space
that we're looking for. I love the idea of public offices
in Logan Square, but Logan Square struggles to have this
much aggregated commercial space altogether and I can kind
of Imagine 44 organizations that departments that are
trying to serve the whole of the city.
There's a reason that you're downtown. I feel like it's
it's easier to get two more locations more quickly when
you're centrally-located and also as we kind of talked
about last time being able to collaborate with the other
departments that are either down the street at City Hall or
cold Lake located in the same building. That's kind of how
the lease makes the most sense to me. But those are those
are all of my questions. Thank you. Thank you. All the men
part of the answer. Is that our city staff live all over
the city? So how's an easy place for them to all converge
and downtown has all the different various modes of
transportation. So to get City personnel who live all
around the city and easy easier spot to assemble in charge
of it all the more
What's the total number of floors in the building your car
as this answered this already I was kind of late I
apologize we have AT&T phone number for was in the building
26 26 26 bullets we have how many we have the mezzanine
313. Okay, so I have to pay half the building and the
He may be able to answer this. We just paying the least
wouldn't know we have no other operating costs correct
beliefs, which also includes improvements that we were able
to negotiate in the 2019 agreement. And so that's the
build-out improvements that they they charged us work
orders for initial think things that happened in
overflowing toilets or things along those needs a long time
to charge what
work order fees. So if there's a broken toilet and the
plumber has to come and repair at those charges for things
like that. Okay. So what what are those cause looking like
by someone you saying the work order physics just to feed
because you're initiated the work order or are you paying
for that cost of the plumber?
We're paying for them to come and make repairs that we for
damages that were caused by city employees.
I don't know how to respond to that cuz I
How do we don't wear can't what estimate those cost right
order somebody can somebody tell me how to change depending
on if I can get you the the last year's worth of operating
costs. If you like I can provide that through the chair and
it seems to like, you know, the law department calls and
ask for people to hang the pictures up in their offices
things along those lines and I do push back because I'm
pretty cheap and don't want to have to make those cost to
have to have those costs incurred by the city. So nobody
hanging pictures and plumbing are two different things. You
know that those are cost that you know Plumbing car
something if there's a heating problem. So I don't I don't
understand these additional operation cars. And if you say
I'm Plumbing then it could have been hitting his welcome to
be a heating problem for work order. I don't know.
No heat is included. But what if it breaks if something
breaks and we call for work order if something breaks,
that's the fault of the building the building pays for it.
If something breaks because of City employee did something
to break it then then we pay for it. How do we determine
where the plumbing is not the fault of the building versus
that's why I'm lost that now has a case-by-case evaluation
Alderman. Give me that what we paid an operating cost.
Alderman Alderman in German. So two things 1 I want to ask
jol. So with the show, this is a a a net lease. So this is
a lease that so this release includes do it include this is
it a triple net lease that didn't want him to 2450 is a
triple net lease. That's correct on a ride. So it includes
the taxes the rent that's the rent and the red and then
there's taxes and operating costs are paid. So so with the
operating costs include like the water bill.
The water bill. So the typically what happens in Chicago
and downtown Chicago is that the water in the electric car
bill directly to the tenants so the tenants so we the city
that's pay the water electric the taxes the insurance to do
that would be crushed. So we paid all of those things,
right that's all part of the rent and that right. So you
have to do is run two operating costs and taxes. It's it's
at total the total that Michelle is is talking about the
$39. She made mention of that actually included everything
the rent they operating on the taxes. So so the city so so
part of part of calls are cost that we put on
that we both were right we both want well that when taxes
go up rents go up when the water bill is go up, you know,
it affects us too. So we pay for it all so that would be
correct all them into the city. Don't get a pass on we
don't get a pass on like water. No no resupply Wallin out
the water got the water is one little correction on that.
The water is billed by the by the building and is part of
the overall expenses. The electric is is is billed
separately to the city. So I wanted to grab that was Miss
statement on the water a prom dress for that. Okay, and
that would be like any way you moved in the city you have
to do this.
I think those things most likely would be included in to
correct with the rent out of space the taxes the insurance
the water the other Utilities in the building right by
okay.
So so some of these some of these costs are costs that we
kind of.
But the burden on so in the in the building you say there's
there's a demeza Maine to the 27th floor.
And that's a so that's how many floors as is that 20? We we
rent the space l a space and all that stuff. Okay, and so
in and so I know my colleague was asking about
Maintenance stuff like like if the elevator breaks that's
part of it, you know, and I know I know in a lot of these
buildings cuz they they have to be Union if somebody had to
hang up a sign that has a union carpenter union electrician
Union all that stuff, which this app is a cost thing also.
Alright, so
Got this is interesting. Cuz I never remember getting in
the weeds are these things like this before in my 28 years,
but this is interesting that we're moving in that
direction, but it's a lot to learn cuz I do know as you saw
in my ward is $43 a square feet right to rent so you can't
so I we won't have the convenience of having those folks in
my ward unless we moved into a city building right now
unless we spent the money to fix up a school or whatever
anything that we may have. I think all the things that we
have in my would we accept one school? We can split it so
we can cuz if you made a lot of money off of this up to
your Police Academy why they can't move in the police
academy.
The police are actually using the police academy.
The old one on Jackson. Yes, but there's no room in there
for them. I have not been in there myself Alderman. I'd
like to go see it and see how they're using it. So how much
space do they need?
How much space do we need?
What we're getting is 10000 square feet.
On the 16th floor temporarily and then the 9th floor is
16000 square feet and what will be it'll be divided between
both departments. So they'll each have their own was the
other department Department of environment and on the
commission of public safety building at one-time award. So
what do we do with that building sell it now that building
is being used currently by the Department of Transportation
and Jared Jared Pacheco deputies CSO. Yeah, we're familiar
with all your talk about all them, but we just began
exploring. You know why I believe it's being used by
greencore, but Angela gray and green course part of
Department of environment.
I'm not at the moment though. They're not part of it from
Department of Transportation ever since the disbanding of
deal. We so greencore should be back incorporated into the
department of environment. So what so if it's back
incorporate into apartment environment, why can't
Department environment move in there with greencore? I
think our challenge is needing space as we see, you know,
as we sit here today. I'm not get it but just
Think about the future and that's what I'm thinking about
how we can save some money, you know, personally, I would
like the police academy to be there the 13th District
police station, right? Cuz we need you now the police
station back on the west side because we got the 12th is
too big make it back 13 again, but that building is enough
space. I don't know what the police are. You know, they
keep saying they wanted they keeping it in there using it.
What are they doing? It got that big old building that we
just built out west. I just don't get that. I like to see
what they doing in that building. I want to see what they
doing in that building is like how much are they building?
They had the whole Police Academy in there that it got a
whole new police academy that is saying he still need that
building what they need before. I don't get it in the
community. I'm tell you my community my command me and used
to be set your but they all want to make it up. I got to
fight over there for that Building B.
Landa Park District building, right? So I need to know what
they doing in that building but but futuristic Lee the Des
building on Sacramento has has a lot of space. It's a lot
of space. And I'm not talking about in the building behind
the building and all that stuff. What would it cost us to
retrofit another space to build owed out and you know, add
another building to add some more offices with that be more
cost-efficient than doing triple net leases with landlords
downtown. You know what I'm saying? Maybe we should think
about some of those things cuz we had existing building
right? I get it to be downtown. You got to pay triple net
leases, you know, and at the same time we may be helping
build and stay alive, right and some of the burden that
they having us some of the birds that we're putting on the
band crease and taxes and in
The water bills and all the stuff that we do down here. All
right, but but we should think about how we save money to
with the existing properties that we are. So I just was
wanted to put that out. Thank you.
Thank you. I just wanted to raise this in the in the public
forum and just put it on the record. I did review the Eds
and I can't tell who were paying 28 million dollars to get
that's an annual amount, right?
Is that a new now? That's two days 15 years that's to date.
We've paid 28 million. The annual fee is is I believe 10.1
million. Okay will 10.1 million whatever it is. It's a lot
of money and to not know whose pocket that money is going
into is troubling. So I noticed in the ordinance that for
disclosure information that we're only required to get
certain information from an individual or entity, but we're
not required to understand who the entity is what makes up
that entity and what is percentage of ownership in that
entity and I like to just posed the question maybe for the
Law Department to come back to us and say why this is why
we can't look behind the curtain of the entity to see who
it is on the sea who were paying our money to
Thank you. Would you like that or if they can answer that
here? That would be great. Do we have police key? Maybe you
can answer that Thank You by Arthur galinsky for the city
of Chicago water department. Right. Now. The economic
disclosure statement is consistent with Section to 15040
10A one of the municipal code, which just requires that we
get this closure of ownership interest from each individual
or entity having a beneficial interest of more than seven
and a half percent in the applicants. So it's not seven and
a half percent or more in each entity up the chain, but
just in the applicant, so if the code word to change we
would definitely revise the 80s accordingly Friday. I
understand the section. I want to know why we cannot look
behind the curtain to see how the entity is made of.
Be somewhat infeasible to require seven and a half percent
of each entity up the chain just because of the amount of
disclosure we need and I think we'd also get pushed back.
But if it's something that the city council requires we
could point to that. I would certainly like to know who's
in who's pocket the a bank that this City's money is going
into just want to follow the dollars. Thank you. Mr.
Chairman. Thank you. Thank you all tomorrow. Maybe we can
work with a is on that and making sure that that he's this
close and make sure that that's procedural. I like to
recognize other person Jesse Fuentes for the Chrome and
also number Alderman and the colleague was here with us to
welcome before we would have all day, but should I meet
you?
Alright the temporary space on the 16th floor. Are there
any costs associated with getting prepared for that for
Staffing is making sure that they're on the city's internet
service. So it's a different section of the elevators that
were in on 1 through 13 or One Bank of elevators and the
16th floors and a different ones. So we have to run a
circuit up so that they can use the the city's internet
cost.
To run the connection 13 floors that we're going to occupy
in a few addresses already. I apologize for the redundant
question I have is a has it already been designed for the
build-out and we know how many I'm in Cuba cause I don't
know how was arranged how many as part of the original
lease. They worked with an Architecture Firm to come up
with a city standards. So that Commissioners get a certain
size office deputies get a certain size office. I'm certain
titles get office has other titles get cubicles all of
those criteria were established and then the furniture was
in establish their that all of the furniture is uniform and
optimizes the space. We're getting as many people in the
footprint as we can cuz we can in upstairs.
And we can provide those standards through the chair to try
and sell them as the the lease began. They started doing
the tenant improvements so that we could get the space
build-out and phase one was moving the expired Tylenol
Lisa's from 30 North into the building and now we're in the
middle of phase two as we're coming to the end of our
agreement with the DePaul Center.
And we're moving out by t.i. And financed. And so I
literally last Friday we moved a group from financed into
the building and we're moving another group this Friday. So
I'm all set up and situated in their new office space. Are
there any have you done to determine if there's any future
needs her space and how and how we going to incorporate
that into this is something I struggle with apartments that
are hiring more people DPS is hiring more people in and
says that they don't have enough space in their City Hall
office. But this goes to the point of let me walk through
the offices and see that make sure that you're optimizing
the space as much as as possible and don't have cubicles
where you could fit people filled with documents and
records or do you know that we're using the space most
efficiently
I'm glad you you said that cuz I said wasn't going to one
of my other question with respect to space in City Hall.
And we done what have you done and I must say you seem like
a pretty thorough Samsung you done it there on Alice's of
the space within the city hall building and you can
I'm going and do it then getting in with this with this
move. We've had exhausted what we have in our own would
like a better way to phrase an inventory of State current
situation with City Hall is that is it's at capacity over
the way it's currently configured. There's another Bureau
the Bureau of architecture engineering and construction who
had that expertise on are doing an evaluation of City Hall
to make sure that we are optimizing the space as much as
possible and again to to take these newer standards and
Implement them in City Hall in a lot of the offices here in
City Hall are very old and very very large much larger than
what we would provide today. So I went to a lot of the
cubicles know it would it's just they're very spread out
and saw this new it's much more condensed for optimizing as
much space as possible. And so that's being looked at but
it's not by my Bureau.
Farm Bureau and so that report will be available at some
point we can get that okay with your old architecture
engineering and construction.
Okay. Well you said goodnight and we need to we need to get
whatever information you have about that. Let's just review
that.
now there was a lot of of
very thoughtful questions and statements post here today.
All too many times. We we we go through all of this and
then it stops after the vote. I think we need to look at
this going forward because I would say particular Autumn
his name, but you everybody's playing this, you know,
whether it be too much or do we exhausted so our what was
paying for this we need to see we need to see that we got
to do a better job at that end in the last thing I
mentioned that business case and I think we got to do a
better job at that in
We can help with that because you have some you have some
you have to specials in the room David Mora County of Marty
Quinn coldly myself, you know, who be the biggest thing? I
would not miss anybody but their backgrounds lend itself
well to kind of sitting down at the table and presenting
and coming up with how we proceed going for it. And I think
that that can also be worked on with different apartment. I
mean different committees. Do you know the budget committee
and its other part of that as well as Government operation
everything was talkin about here how we function as a baby
as a as a body and soul. I think chairman Urban need to be
bought into that. You have Finance chairman down as you
can.
I want her questions very thoughtful woman knows what she's
talking about, you know, bring the shamen mixing with a
contract with me. I don't like coming and having these
conversations and he's made a lot of this could have been
exhausted before we even got here or some type of document
could have been prepared so we could all reviewed it and we
didn't review it. That's that's on else. But at least I
would have been there and it'll take pressure off you need
to go through all this, you know at this time, so, I don't
know how we move forward with that kind of effort but I'm
open to been down with that operational standpoint. We are
not city of Chicago's not the it's not a well-oiled machine
and I think we should get there. I think it'd be great if
we can say that we we know, you know, it was for doing at
least this is what the time frame is that we're not
spending more than a certain amount of money on tenant
improvements for a short-term lease or you know that
Part of the challenges that you know, when we get these
requests from departments to get office space or to get
Space. Nothing's always nothing's a hundred percent
TurnKey. And so even just putting it the it infrastructure
in place at all costs money and to save it we're going to
be in this lease for 5 years how much you know, like so be
great if we have a policy that all of you feel comfortable
with and we can all point to and it helps us negotiations
with an individual landlords have a nice week. It got to be
tremendous and everybody that asked the questions in this
room should be at some point at that table. So we so we can
have the input and not have to go through dispatch because
I have a lot more questions. I'm sure yeah sure and I know
and I talked with
we not going to get everything answered in this meeting and
then we're going to turn around and wrote on it and then
something years later the crime that's going to change. How
do we adapt to things that move that you do going forward
because we think this Lisa and I think I'm trying to figure
out when when the whole covid thing and was that a what
covid a factor okay with that and now what's going to
happen is now we're returning back to 22 office place
people coming back downtown, you know.
Those things we got to be ready to to respond to and make
the most prudent financial decisions possible different
ottoman name that can add value to this conversation will
be will be in contact. So thank you. Thank you. Thank you.
So what I don't want us to do is punish.
These committees for the city's bad practice cuz this is
bad practice. This is this is horrible and so through the
chair. I want to see what buildings we've been leasing for
the last 10 years what we're paying for him on an annual
basis of where there are they because what I want you to
understand is when you put committees and services in a
Ward and brings businesses and brings traffic and it
actually could kick the economic base and communities that
too often don't have those things. So I live in the war
were there not a lot of businesses, but I also got six
vacant either CPS or City on buildings that I'm interested
in making sure that we re purpose and why not have city
services in there. It's we pay people good money. And so
the thought that you just want to be downtown to be
downtown. Stop telling me that cuz this is not easy for me
to get to it takes us 45 minutes every day depending on
traffic for whatever time you want.
Cuz you actually have your office in here and so stop
telling me that's the convenience cuz if not, it's
inconvenience. And then the salt listening to all the more
we we pay for water. We pay for lights we pay for gas. Are
we serious? Do we know how much that is and that's not even
in the sheet. And so in that report that you send us, I
want to see how much will I pay in for like gas and water
disease the same people who use our streets we give lines
to the we have to give Allie access to and we got the
audacity. So I hope when y'all renegotiate his contract
when people Gas & Light company that there be some real
conversations about what they should give to the city them
giving us a free floor. Don't that don't move me? I am not
moved by him get 128 million dollars we ought to have the
entire building is so I want you all to really work with us
and we're going to do some work ourselves to say what does
leasing look like and fifteen years is
I need a mathematician that ain't what I went to school for
what I wants to type, but I know that we spending way too
much money.
Cuz they'll be quiet cuz an and what are we getting out of
it? Other than some space you said that if if it's if we
break the plumbing am I know we not paying nobody to put no
pictures on the wall like yeah, y'all y'all y'all do very
comical things.
I can understand it, but I don't feel like we should punish
them but
Common sense says not to sign the lease for 15 years that
is common sense. And I know Common Sense is not coming but
that Nick and I don't know who who who in the department
made that decision but y'all probably need to fire that
person that makes no sense whatsoever. We are paying for.
Of 15 years. He's guaranteed $136,000 just for one floor.
do we
Able to get out of the calculator cuz that's a lot of
money. It's wasteful and it's wrong but I'm not going to
punish these two committees for work, but we will I want to
say I can speak for a bunch of folks in here. We're not
signing another lease for another building that you all
need until we have a conversation and we will evaluate what
we actually have we're not going to do it cuz this makes no
sense. It's wasteful are y'all have to remember what we
doing Chicago people follow suit, and so let's do the
thing. That makes sense.
We could save so much 28 million dollars and it doesn't do
you say how long that was we bought that building and its
thing about being down to let let me say that I hate the
traffic we too close together. Like nothing is convenia
hear nothing. It's all this thing about people want to be
downtown you live in the community you live in do you want
to work on your community? There are plenty of spaces that
we can repurpose. So I'm going to say this publicly. Please
do not bring me back another lease with somebody come out
they need to move without growing his face cuz they going
to be in the 20th Ward on the community with me. We all
refuse to do this to anybody else, but I don't want to be
unfair to them because these are conversations. We asked in
the last Administration about what we're paying for it and
we got no answers and so make sure through the chair that
for the last 10 years. We look at every building we Leasing
and the cost and I don't want I don't want to see the
leases. I want to see
Everything we pay for so what does the water look like a
month? What does the lights look like a month? Are we
paying to clean? Cuz that ain't even in the conversation
who is who is keeping a maintenance is that people from the
city? Is that somebody we contract and who we contracted
with it? So let's do stuff to make sense. Thank you share.
Thank you. Thank you. Thank you for my sisters are all the
men Taylor and Altima Scott and their point about running
in the community. Could we
Please through the chair have the criteria that determines
get Space downtown and why they would need to get Space
downtown and why they could not have space and other parts
of the city. So if the department could give us a clear-cut
criteria on why we have the need to bring so many people
downtown other than where the mere fact they were saying
it's convenient. So if we can get that criteria through the
chair,
thank you. Mr. Chairman. Thank you think you're the woman
before we make the motion want to think of the committee
members for for such a robust conversation around the least
practices as you I mean we have heard here from multiple
locations is at Lisa's that go back to 2019, but I'll do
other member not mention. There's a practices have gone for
four decades. So as we are committed to turn the page and
make sure that we have checks and balances look at cost
benefit analysis Criterium policy and processes so that we
change that we have the commitment of IMA is to work with
us. This is the first time that we go through the weeds. So
before we take the motion we're committed to make have
these conversations with the members of the committee and
to provide strategic input so that we have better choices
that also go to utilize its Paces in our neighborhood as
well. So that point is
Taking other person going to happen Westbrook. Nothing. You
have a question. Thank you, sir. Thank you so much for all
your work and for those in the Box to be available for for
us. I share so many concerns is Alder Mitchell nicely put
it all together and I want to clarify what motioning right
now and but before we do that, I want to understand that
how often do opportunities like this come about that. We're
doing something like this every year every 15 years. And
this is the first occasion where I've done an amendment to
a lease and it is a result of the new departments that are
being formed but that have been doing work for the last
year year-and-a-half two years and finding space for them
and initially for example
Jared and the Environmental Group, we're out of the mayor's
office. And so we move them out of office space there and
into to North LaSalle where they're in the shared space
with the ccpsa and then some overflow staff from d a c p &
D P S. And so they have an opportunity with the building to
say that they have a vacancy on the 9th floor where we
could occupy more space is the first time this is happening
in my car.
I'm since during this what I think is also a great benefit
and I hear that you don't think it is, but that getting the
16th floor for free while they're doing the build-out is
also a nice perk to have for this agreement. Thank you. And
also appreciate all that other woman Taylor is bringing up.
And doing a broad assortment assessment across the city of
our all of our public buildings that are empty right now
would be really helpful for me and I'm not comfortable
making any motion today because not because I don't want
you to do your work because I think it's wrong that you
have to what out-of-pocket to have private meetings with
people to have sensitive conversations. And I and I also
want you to be successful in the
opportunity that we have right now, which is to build a
better Chicago, but we need the structure to do it. And so
one thing is to create the office and then the other thing
is to staff and then the other thing is to actually have a
place to go to me. That's what we did as new alter people.
We had to start from scratch because all of our leases
weren't given to us so that there needs to be standards not
just what you do.
But at the ward office is two and two other women Taylor's
point and end to your point to you know, the district
council's needs space to do their work. And so I think that
conversation is not being highlighted enough in this moment
because that's the struggle as well because they are our
points of contact.
I am concerned that as we are building and you better way
of governing in Chicago that we don't understand this space
and opportunities that we have not just downtown but across
all of our neighborhoods and it and it and it puzzles me
why we're not concerned about empty buildings in our
neighborhoods that are being underutilized that are not
being seen as opportunities.
Yeah, I'm happy to work with you on that Alderman.
Definitely.
And again, I'm not I'm not really comfortable. I don't I
don't know what the motion is going to be today. But I I
feel like I want them to get to work and they are doing the
work but this is a huge commitment and I I don't feel
comfortable getting did was there a response to why we did
a 15-year lease?
legal
I was not part of the original negotiation and I got it. I
hate to assume but a lot of times in the negotiations, it's
they want a minimum amount of years the landlord wants the
minimum amount of years and especially for us to amortize
but Improvement have those spread out over time with
probably part of it, but you I don't know if you remember
the exact
So basically she had been a 30 North LaSalle for 20 or 25
years under a lease on that's what had been extended
numerous times. And then it's part of the negotiation
trying to make the most sense the 15 years him about
looking at is what exact with Michelle and said amortizing
the build-out so they are providing is part of this lease
$180 per square foot to build out the space, which is
allowed the city to go ahead and put in all new desks new
wiring and new computers at everything that's necessary. We
also have a a my courtroom over there for the Law
Department. There's a hearing room over there for the
police board. There's a number of things that were
Incorporated is part of this on one that when the decision
was made to go forward back in 2018 actually is when the
decision to go forward with it would approved by City
Council in 2019 under two different ministrations.
thank you and
so
do the 50 going to stand in the Big Driver behind 15 years
been good because we wanted to advertise the build-out at a
number or cost to us that we can live with right Walker the
actually the owner who is playing at so the owner is the
one who had who is giving the city a hundred eighty dollars
per square foot to build out to space so that if you do the
math and everything that's over 40 million dollars that
were given to the city to go ahead and filled out the
space. Okay, so that's how it was done. And then the idea
is the landlord needs to sign for at least that he believes
he or she believes they will recapture some of that
investment. They made over the long-term. The times that's
where the 15 years comes there is also the ability to city
has the ends of the leaves to go ahead and terminate and or
extended that makes sense and that it had happened with the
30 North numerous times in the in history. So what was
there an option or or any discussion around well that we
sweet we do we divided.
Or have some split where the city we would do our own build
out of some part of the build-out. It was that and it's not
it's not efficient. So what ends up happening is that this
is not efficient way of doing it city has a really great
staff that theoretically can build stuff and I've seen that
firsthand myself, but the truth is the building hires that
the contractor they go ahead in the end and build-out the
space to the specifications that
Acquired the other thing is that when you look back in
2018, the decision was made to go forward with this the
city was using basically about 250 ft per person is how the
space was kind of setup and in the past the space over
there is more like 138 person and that space it's over
there. So you using having more people in and smaller space
actually is what it's a that's part of that report that
Michelle she's going to provide to the chair that talks
about the history and now the spaces to utilize how the
offices are assigned how cubicles are signed size of those
things that nature something. I have so many more
questions, but I want to reiterate we we we all need to get
this and get a better handle on how we proceed.
Is this is a tough stuff? I think Jim Napolitano new
members. Welcome as well. Tell the other person might not
have been worth has some concerns as we have discussed on
the thing that's being you know, several members of the
council longer than many of us. This is a process that must
be revised that does not only impact this particular
project proposal that how we are utilizing our existing
assets as well as exploring new opportunities in our
neighborhood.
So we are clear that it has to be a revision on the process
and I think their commitment to the chair is that we would
not have any additional Lisa's without a review of such
policy. So they council members and especially the housing
committee. You have a full overview or the procedures and
criteria that include that includes proper and full
disclosure as well as operating cost alone other important
measures that the council members are asking and I would
just want to repeat this is not something that the council
committees have taken them before but absolutely speak for
him because I'm several chairs like chair Dowell on the
importance of Oz. Going through the Weeds on these kind of
leases so that we maximise the benefits to the public. So
with that said, I want to reiterate our commitment as a
commuting to work with you. I know if I should meet you at
we have a standing with her monthly meetings so that we can
discuss housing vacancies in or
so understand again that disease a process as a structural
issue that will require us all to work together with a is
and the many other in all departments involved. So I just
want to reiterate the motion is on this specific item
today, but the emotion we go with our commitment or not
having any additional Lisa's without the review session
with the support of that is welcoming the feedback of the
council members in the housing committee without said and I
hope I'm able
To clarify the motion today is on these specific items so
that we can have not only did the office of climate and
environmental Equity. But as well as if the committee
commission for Public Safety and accountability to be able
to start operating all the male star in favor say aye all
those opposed say nay in the eyes of a chair their eyes
have it. Thank you so much for the council members for such
an important conversation. They do pass recommendation with
these orders will be reported out of the next city council
meeting on Wednesday December 13th, 2023. I also want to
recognize before we adjourn I'll do all the women in my
Meats for the corn. Thank you for reminding me. Are there
be no further business before the committee? Can I get a
motion to adjourn?
The move all those in favor say aye the meeting of the
committee on housing a real estate is adjourn. Thank you.