Good morning, everyone. The committee on finance is called
to order. This is our last meeting of the year. So it's
good to see everybody happy holidays all we will begin with
the roll call to establish quorum.
vice-chair Conway
all the middle spider
Alderman Hopkins Alderman Hall
Alderman Mitchell Alderman Harris
Alderman Beale
Alderman Lee
Alderman Ramirez Alderman Quinn Alderman Lopez Alderman
more
Alderman Curtis Alderman O'Shea Alderman Taylor
Alderman Mosley
Alderman Rodriguez Alderman Scott Alderman see Joe Lopez
Alderman Burnett
Alderman Ervin, Alderman, Taliaferro
Alderman Cardona
alderman waguespack
Alderman Rodriguez Sanchez
Alderman ramirez-rosa Alderman Villegas Alderman mitts
Alderman Vasquez Alderman Riley Alderman Knutson
Alderman Martin
Alderman Silverstein Alderman Scott, I see you.
German dolls here
We have 18 we have a quorum.
Also want to recognize all the minimum hoppenworth.
non-member
any other non-members I'm missing.
There are 18 members present. We have a quorum before we
get started. I just want to review the rules of conduct for
a public meetings. I would ask you to direct your attention
to the screen of pursuant to the city of Chicago's Council
Rules of Order and procedure rule 49. The sergeant in arms
sets forth the following rules of conduct to be followed
during the public comment period and the duration of our
committee and City Council meetings, profane or vulgar
threatening abusive or disruptive.
language is not permitted to meaning discriminatory or
harassing behavior and speech directed towards others is
not permitted disruptive behavior, including disruptive or
disrespectful conduct during others presentations is not
permitted banners flyers or signage are not permitted
backpacks large bags and sharp objects are not permitted
clear bags not tended and color that do not exceed 12 by 6
by 12 in will be permitted in an subject to search food and
beverages including in metal canisters are not permitted
cell phones must be placed on silent prior to entering the
meeting room individuals must be seated public comment
speakers are permitted to stand only when providing public
comment small handheld devices may be used only while
seated and the user must refrain from interfering with the
view or hearing of other end of
individuals or groups failing to adhere to these rules will
be asked to see some such disruptive conduct and failure to
comply will result in their being subject to removal from
the meeting by the sergeant of arms.
As a relates to rule 59.
Alderman Ramirez Alderman sposato and Alderman Harris have
all requested to be included in our meeting by remote
participation. Can I have a motion to allow Alderman Harris
sposato and Ramirez to attend this meeting. So moved by
Alderman Lee all those in favor signify by saying I opposed
any opinion of the chairs the eyes have it and they killed
in the motion carries. I just want to confirm alderman
sposato.
Yes, Alderman Ramirez.
Alderman Harris, good morning. Ramirez will be added to
corn.
At this time will be getting the public comment period
which is 30 minutes and out of respect for everyone's Time.
Each speaker is limited to three minutes. We do not have
any remote public speakers this morning and we have one
person that has signed up for in-person comments. And that
is mr. George Blakemore. Good morning. This is like more
Not a good morning for me.
It's not good.
When you only have one public speaker, and the people are
not involved in government, if not a good look.
For you and you are all talk.
Is it the timing?
Too early in the morning. Who's the problem?
What is the problem that Chicago is known as the most
corrupt city in America, Houston, Mr. Blakemore, New York?
No.
how to make
Thursday by the number of corrupt politician that have been
in prison indicted
Well, that's 50 ultimate here in New York. They only have
25 something is wrong here.
Is evil here corrupt in here?
going public participate turn on LED on.
Lego Hugh
each one of you
calls this to happen because you're not involved. You're
not engaged or not in life.
Is something wrong with the system she read the rule.
There are no rules here.
3 minute one minute. They make their rule. It's time for
all of us to step up and change this culture of corruption
here. Not only the ultimate the teachers Dupree took the
Unicorn way to buy milk break my your three minutes to
talk.
people like Walter Burnett in December
convicted felon has been in pain, but maybe eat a ripper.
Rich greedy elected official because we the people
something is wrong with us.
The people allowed to have fun.
10 that the head may be crazy enough to Blakemore.
We have one public speaker. I miss the George well with you
and you and you and all of us.
The timing is wrong physically worth Finance.
Thank you. Mr. Blakemore. We have also have all them in
Silverstein and all them in waguespack join us and they
will be counted towards dark warm this morning that ends
the public comment period we have a number of items before
the committee today and will start with our monthly rule 45
report are these reports was sent electronically to
everyone the October 2023 and in November monthly rule 45
reports if there are no questions. Can I get a motion to
recommend approval of that these reports so moved by all
the men?
Martin
all those in favor signify by saying I posed in the opinion
of the chair the eyes have it on we have 10 items before
the committee today on our agenda item. Number one is from
the Department of Planning and Development. It's an
ordinance concerning amendment number one to the Lincoln
Avenue tax increment Finance Area Redevelopment plan and
project spanning the 40th and the 50th Ward's we do have
letters of support from all the men Vasquez who has 43.1%
of the TIF district and from Alderman Silverstein who has
56.9% of the TIF district want to acknowledge that we've
also been joined by Alderman Vasquez, and he'll be counted
towards or I will join this morning by Tim Jeffries the
managing Deputy Commissioner of dpd. Hello Tim our last
meeting for the year.
And he will give the presentation.
You have to say thank you Tim for reminding me. I'm his
presentation this morning is also going to cover item
number two on the agenda, which is in order concerning
amendment number to to the greatest Southwest industrial
quarter East Redevelopment area project and plan.
Cated in the 17th and 18th ward of which all the men wore
has 13.3% and he has given a letter of support and Alderman
Curtis has 86.7% and he has provided a letter of support.
We will hear them together, but we will vote on them
separately.
Good morning, Cordell and members of the finance committee
for the record. My name is Tim Jeffries managing Deputy
Commissioner in the department of Planning and Development.
I'm here today to request your recommendation to approve
minor amendments up for the Lincoln Avenue and greater
Southwest industrial East tax increment financing districts
for the purpose of extending the life of those two
districts for an additional 12 years.
Both districts are currently set to expire on December
31st, but had extensions authorized by the Illinois general
assembly at the end of November's veto session. However,
these do not take a fact without additional approval by
city council to affirm the extensions the proposed
legislation before you today with a dress that requirement
for the districts and establish a new expiration date of
December 31st, 2035 or both looking closer at both
districts.
The first potential extension is the Greater Southwest
industrial East 5th, which is roughly bounded by 73rd
Street to the North Kedzie Avenue to the West 79th Street
to the South and Damen Avenue to the east lies primarily
within the Ashburn in Chicago Lawn Community areas as well
as the 18th Ward with a smaller portion in the 17th Ward
previously. The district has been used archery developed
infrastructure facilities improvements to Southside
occupational Academy and provide us with grants to support
small and locally based businesses should the district
extended its anticipated the funds will be used to used to
continue to make these infrastructure improvements,
especially around the numerous railroad crossings that have
clear safety issues continue the success of the area spiff
program and support the Redevelopment sites sport read
about besides a key opportunities areas.
Second district is Lincoln Avenue, which runs General on
Lincoln Avenue between Foster to the South and Devon Avenue
to the north. The district is primarily within the North
Park in West Ridge Community areas and is relatively evenly
split between both the 47th and 50th Wards in the recent
past. The Tif has been used to support the creation of a
city-owned transitional housing facility the development of
a non-profit Community Theater and $2000000 in space grants
have supported 25 small and locally based businesses. If
the extension is approved Lincoln at Bianca's Lincoln
Avenue tip will continue to be used to support those
ongoing infrastructure developments.
National projects that support the North Lincoln Arts North
Lincoln Avenue Arts District concept and the development of
affordable housing at Key opportunity sites throughout the
district.
Overall dpd believe there is a rationale to extend eat.
Both of these districts in would ask your favorable
consideration of your of this request and I'm happy to
answer any questions that the committee might have. Thank
you Tim. Do I have any questions from members of the
committee?
And if yes all them Espada.
Thank you so much for the commissioner. I'm just so curious
on the Lincoln to if there's like a Carvel in the middle of
the boundary of the Tif. Can you explain what that's
related to?
You can we go back to the map.
It's so curious to see a tiff with a donut hole. You know
what I mean?
That it so I believe this TIF district and I say this
because I can say it with increasingly less frequency. It
was designated when I was in high school, so I can't
definitively say but that looks to me to be a a residential
area. And so this was meant to be a commercial District. So
they likely just eliminated the residential portion of this
District either because it wasn't the intent or that area
maybe not couldn't meet the blatant characteristics
establish and that's a fact
This is for 12-year extension for correct. Thank you, sir.
Thank you, sir. Thank you. All them and Vasquez. Did you
have something you wanted to add to this just kind of give
a little back and I think it actually looking at it because
that's that green right? There is Mather don't correct. So
I do believe to Tim's point that is part of residential it
buy it. I just want to articulate my support we did some
work to get it extended. And in the main reason we're
looking to do something for the f is for really a sole
purpose of affordability. Then we look at the 40th Ward. It
is a low affordability area and the only way we've been
able to get any affordability is to looking through subsidy
our site acquisition my fear is that if you don't have
anybody to do so those rates are going to keep going up
which further segregate the city. So what we've done is
made commitments and every development. We've been having
along the area to increasing affordability. And this has
been one of the few tools we have to do such
Here in the ward. So I think as we talked about different
models besides Tiff just something I kind of high like that
in order for us to have more affordability. We do need that
kind of intervention to do. So, thank you. Thank you all
and Vasquez. I want to acknowledge all the men Hopkins has
joined us and will be counted towards Quorum. How can I get
a motion to recommend approval item? Number one? So moved
by all the men mostly all those in favor signify by saying
I all those opposed any
Meaning of the chairs the eyes have it and the motion
carries and the do pass recommendation on this matter will
be reported out at the next city council meeting on
Wednesday item number to which we also heard a presentation
on for the Greater Southwest industrial quarter. Can I get
a motion to recommend approval of item number two?
Motion made by all the more recommending do pass all those
in favor signify by saying I opposed in the opinion of the
chairs. The eyes have it and the motion carries the do pass
recommendation on this side and will also be reported out
on Wednesday. Thank you, Tim.
Item number three is an ordinance concerning the execution
of an amended Tif Redevelopment agreement with in 4300
Roosevelt with 4300 Roosevelt LLC for the construction
project located at 4300 West Roosevelt Road and 4343 or 1
West 5th Avenue in the 24th Ward. This project is in mostly
in supported by all that if that is 73% in all the mascots
Ward and 27% in Alderman Taliaferro Award of which both of
these individuals support this project. We're joined by a
Terrance Johnson the assistant,
Who will report this project out to us? And we've been
joined by Shreya singe of related Midwest AJ Patton of 548.
And Susan Bergdahl of crg, and I thought I saw a pastor
jurrell here from black men United, sees me Terrence.
Good morning to add all the members of the finance
committee for the record. My name is Terrence Johnson as
his commissioner and the department of Planning and
Development. I'm here today to request for approval of an
amendment to a previously approved rated between the city
and 4300 Roosevelt Partners LLC for the purpose of
providing Tif funds in order to develop a 21 Acres of City
own vacant land with 350,000 square feet of industrial
space and 10,000 square feet of space for use by
community-based organizations, as well as the sale and
write down the city-owned property.
Subject property is located at 4300 West Roosevelt Road in
the north Lawndale community area the Roosevelt Cicero TIF
district and the 24th Ward.
Is a closer look at the site within the north Lawndale
Community. The 21-acre site is bounded by Fifth Avenue to
the North Kildare Avenue to the East Roosevelt Road to the
South and Kostner Avenue to the West.
The site is most notable because the silver shovel
operations starting in the late 1980s and we're hundreds of
thousands of cubic yards of construction debris for
illegally dumped on the property in the aftermath of that
Scandal the city acquired the property in 1996. And
although there have been a number of Redevelopment proposal
that remain vacant since that time.
These are the current conditions of what the site looks
like today.
It September 2020 DVD release the request for proposals for
the property the result of that process and the related
Community engagement effort was a selection of The Proposal
from 4300 Roosevelt Partners a partnership between related
Midwest and minority-owned 5:48 development that would
develop the property with both industrial and
community-based uses.
This is a sight of what it look like during the Civil shovel
again.
Cubic tons of debris was dumped on the site illegally.
In December 2022 city council approved a Redevelopment
agreement with 4300 Roosevelt Partners LLC for their
proposal. The scope of work has not changed since that time
and the development team still intends to construct
approximately 360000 square feet of industrial space and to
5,000 sq ft. Innovation centers will serve as community and
Workforce training spaces.
Since that time however, the development team has sought to
secure Equity financing at 10. It's for the site and order
to start construction. Unfortunately due to Rising interest
rates construction costs and the overall slowdown in the
demand for industrial real estate that have been
significant challenges and doing so despite these
challenges. The developer has secured financial support
from crg Acquisitions, LLC West shown an interest in
providing 90% of the equity contribution for the project.
I would enable the product to move forward in order to
secure CID acquisition LLC partnership. However, some
amendments to the Redevelopment agreement are necessary
specifically they include
Roosevelt Partners, LLC would be allowed to sell their
stake in the project within three years rather than 10
years that said they do not they can do so only after the
product is fully complete and has created no less than 250
jobs on sight if the developer fails to create these jobs.
They will be required to repay the city $100,000 per job up
to after the 48 million dollars in tips.
The project was additionally have an occupancy rate of at
least 50% across both the completed industrial space and
The Innovation centers.
The amendment will also add a profit-sharing provision to
the RTA which allows the developer to achieve a 25%
internal rate of return on their investment in the project
after which 30 cents of every dollar above that return
threshold is to be shared with the city is showing that the
city can realize a portion of return on its investment
should the deal be exceptional exceptionally successful.
All this time, but not necessarily to tpd believes they
blame the challenging market conditions with significant
importance of the site and they project that will become a
robust Center of employment on the westside of Chicago most
critically agree to these terms will allow the development
of fully Finance the project and proceeded to closing and
construction within nine months.
Generally all the other project details and terms remain
unchanged that includes the budget with a total project
cost is still estimated to be sixty two point three million
dollars. You mended are they would not modify the
previously approved Capital stack which includes up to a
million active or 13% of the total project cost additional
sources of the project include 37.4 million in debt and
16.9 million and developer equity.
Outside the amendment previously described the existing
terms of the agreement will remain largely unchanged the
silly book will continue to provide developer funding as a
reimbursement of $50 bill cost as two payments the first of
four million upon the issuance of the certificate of
completion and the remaining funds are formally on the
first anniversary of the issuance of the certificate of
completion.
The developer is also still required to construct and
convey at no at no cost then.
Convey at no cost at 10,000 square feet of office and
community space to buy Man United and New Covenant CDC for
their use has provided services to the north Lawndale
community.
What's completed this rendering shows the proposed project
that will finally lead to development on the property after
30 years of bacon given its history. The development of
this site would be catalytic indicating to the developers
and the community. I like that development is possible even
out sites with with story pass.
Those reasons GPD supportive of the proposed amendment to
the Redevelopment agreement with 4300 Roosevelt Partners
LLC. What's complete the project proposal return the site
to the job to use and provide employment for Westside
residence along with Scott has expressed their support for
the amended RDA.
I'd like to thank the committee for your favorite
consideration of this request. I'm also joined by a j
Patton Trace Lane and Susan Bergdahl and we are happy to
answer any questions that the committee may have.
I thank you Tim. Tim Terrance on my mind this morning want
to acknowledge all the men Villegas Alderman Irvin ottoman
Mitchell and Alderman O'Shea was joined us for the Quorum
and David and Scott. I'm going to take questions first. I
assumed you would want to close Alderman vice-chair Conway.
Terrence thanks for the presentation. It's clearly has some
unusual and creative terms in and in this one the on the
jobs portion do the wolf construction jobs be counted
towards that 250 numbers a full-time jobs on site at the
completion of of construction the 250 jobs or permanent
jobs after construction, and I need to be on the 25
percentile are our portion, which I think it's great that
the city can I can't speak in the enjoying enjoying the
upside on some level is it weird that i r r be calculated?
On the 16.9 million of equity or on the total project cost
a return on Equity. Okay. Thank you my questions. Thank
you. Thank you vice-chair Conway. Can someone speak to the
250 jobs in the extent to which North Lawndale residents?
Will that will be a focus or they get first right of
refusal if that's possible.
Good morning. My name is my name is a shape and not
representing the development team. I'm joined by Ronnie
Brown with the New Covenant and Pascarella black men United
also come to capacities both as part of the development
team as well as the founder of 548 Foundation, which is the
workforce training partner also associated with this
project to the question about the job creation part of our
strategy moving forward. Now that we've secured the equity
is to sequence the workforce training development with the
timing of us starting construction so that North Lawndale
Community residents as well as the extended Westside
residents get first access to the jobs both on the
construction side and on the permanent job placement
Thank you very much for that.
Alderman was Sparta.
Thank you very much. Sweetheart Terrance. I really
appreciate you sharing the history of the site the
certainly a great number of folks associated with the
project that I I trust their work. I was wondering if you
could go back to the condition side particularly as we were
talking about because it is a unique benefit to see listed
this profit sharing peace, but I wanted to ask a 25%
internal rate of return feels like a relatively High number
at least compared to the kinds of projects that we
traditionally
will see move through the first Ward.
How does that compare to the usual irr that we'd see for a
new construction industrial project? How much time do you
think it will take to get to reach that level of irr?
the
25% irr is not out of whack in terms of what we've
determined or were able to gather from Market participants
on the industrial pricing given with the increase in
interest rates and the cooling off of the other industrial
Market a bit. We call some of the folks that we've done
some of the 60s.
In the past with in terms of one of their singing and they
they did confirm that you know, low twenties mid-twenties
is about right in terms of return on Equity. So that's how
you know, the increase in interest rates have been
relatively fast. So you looking at in terms of where we
were nine months ago. It's very different than where we are
today. Which again is this is borne out by the fact that in
terms of getting actual tenants funny the equity first and
then actual tenants books are coming in unless it's it's
under construction. So have the equity part of bringing
them out so that we can get under strict instructions so
that we can at least miss the space. It's Escape.
Understand it. And what is the term of the Apothecary? I
can't believe it's for the life of the the development know
so it's it's what's a capital events happened such as
either a a full-on refinancing or a cell that would that's
what would trigger the the the the profit sharing. So at
that point in time, we do the calculation because sales
proceeds are included in the irr calculation that is what
would potentially trigger the profit sharing at that point.
Once that happens. It's it's no longer attached to the land
anymore because it's specific to this group of developers.
So that only comes into place at the point of either are
right we financing or the sale.
Of the development correct in general you wouldn't get to a
25% irr without that type of cap really been happening.
It's it's it's going to take a sale or something in order
for the cash flows to the Equator. So we are then
participating. We are receiving 30% of the profits from
that sell not like of the the profitable earnings of it.
It's we're receiving is 30% of the price of the profits in
excess of that 25% return. They get the 25% return anything
above and beyond that that's what we share with them. But
7030. This is helpful to understand. Yes. Thank you. Thank
you. Thank you, I'll demand laspada and Terrence the
profit-sharing revenue that comes back to the city and the
case of the capital of men or sale is that being returned
to the Tif and the residence of North Lawndale or does it
go into the city's General coffers as long as the TIF
district is still open and active it will go back to into
the TIF district. And how long is that TIF district?
I didn't I didn't bring that.
Okay, just I'd be curious just to know but it's good to
know that it can go back to the community 2031. Thank you
very much. All the man Urban ottoman Burnett.
Thank you. Madam, chairman and Terrance and I commend my
colleagues on that question one. I wanted to and I just
drove down Roosevelt. I think it was this weekend. And you
know, it's interesting when you drive down Roosevelt
because I can mend all the mascot of all of the things that
she have happening over there. I know that Peoria Peoria
meats is moving over over near there. There's a couple of
the new buildings that are over there, but when you get to
this lot
It's so desolate. It it really you can't even notice that
there's new things over there. Right because this this this
land is so badass and so bacon and it's been like that for
a long time. And I think it's really having an adverse
effect on all of the other properties in the area and I say
that to say that this would be a big enhancement to this
community. I venture to say that property.
News will continue to go up over there and more businesses.
We moved to this neighborhood. Once this property is
develop. I can mend related and and all of the other folks
involved for having a joint venture with African-American
contractors. I also commend them for having a
not-for-profit arm right with with an organization is doing
things in our community not just on the west side, but all
over the city of Chicago. I think this is a great thing in
and we talkin about on the city in about eight million
dollars that's going to the West Side that's going to the
black community. That's that's eight million dollars is
going to our neighborhood, right? And that's a good thing
that that that the city is spending money on the west side
and I think we get ready spend some money on the south side
to I think that's great because it is is sorely needed in
and is spending money. That's that's going to be
And I know when we first set up to it wasn't to get profit
sharing but that's great that we're potentially going to
get some profit sharing back. And I know we did spend a lot
of money early on in dealing with this property because it
was dirty, right we had to spend a lot of money. We got
some help from the federal government in the past been
dealing with this property for since I've been Alderman
actually, so it's good to see something happening with this
property, but the tip wasn't initially to get property.
The tip was initially put in to get profit from how is
going to enhance everything else in the area with jobs and
has other properties and attractive to businesses to the
community. And I think and I think that this development is
is going to do that. I did have one question for mr.
Patton, who whom I admired a lot for continuing to do
business and in all of our neighborhood and some of our
neighborhoods across the city, you know, I'm taking risk
cuz it takes risks to go and some of our neighborhoods. I
wanted to ask the the other company with with the arm of
your
set up. What are they going to be doing there? What are
they going to be creating or manufacturing over there? So
the the other partner is a non-profit off the 540
Foundation of what we're going to do as you guys see on the
top here is that will be the largest community solar
project in the city limits. And so we already have two
cohorts of people training on the west side now in North
Lawndale in all the mascots War. They will be the graduates
that actually do the installation here and that roof will
power almost 400 homes on the westside at a 50% discount
and sew sequins this so that those supposed to get those
jobs and I know I think I read about that before.
In the newspapers, I think that that's very important that
we we let everyone know that this is an investment not only
an economic investment but it's an environmental investment
in the city of Chicago. And not only is it going to create
jobs and attract businesses, but also help people to save
money on their electricity on the west side. So I think
that's a big deal. Are you going to give us some profit
sharing? So I think this is like a triple win-win for the
city of Chicago along with having all those look at shop
those brothers look up there man, you know, my brother is
being Partners in this and I mean, it's just a it's a
wonderful thing very inspiring and I just want to commend
you all the mascot for keeping the ball moving. I mean you
you keeping it moving in and you moving in Fast and hard
and and and things are happening in your neighborhood and a
lot of Investments are going on over there.
So I just want to commend you and commit Administration for
allowing it to happen. Thank you very much. Thank you all
the men for all the men more followed by before you go home
and more Alderman Curtis and all of my ramirez-rosa have
joined us for Coram. It's on you all the more, but I was
going to touch one and I appreciate you bringing that out
all the way bring that because that's very
Critical and I want to try that internet and with 548
Capital who I think all the money I owe you a large voice
on there since I'm up others and making sure that we get
some new people in here developing and I appreciate 5:48. I
think it's only been almost what 78 years. Do you know that
they, you know been doing a lot of work here in the city
and it's already Burnett stated not just focusing on the
west side, but throughout the city of Chicago morning
things. I'm excited about is that as we just finished the
development and it's 17th or that they did a project. There
was a 29 units totally rehab but the butt remember that
touched on is the
Purposeful and intent that they put in two interns of
energy-efficient homes and that type of technology and but
even more important than our president is you don't have to
pull a teeth for them to hire people that look like the
community and now only hire but put people who are from a
construction standpoint ownership people who owned
companies to have those subs on there. So I appreciate them
at work and I look forward to this development being done.
My question is in terms of the partnership.
What is the percentage in terms of 548 on related in any
other partners? Can you bring those percentages down
ownership percentage?
I haven't.
In Ellijay can correct me if I'm wrong. But related as in
related ncrg are both in for 40% + 548. Is it at 20%
related and who and who you say a r g e r g e r g that's
that's the only part of that this coming in. Okay at 40%
Okay, and so on the related and if you could just provide
through the share unless 5:48 is heading this whole thing.
I'm trying to understand the terms of the
percentage of making sure that we got the percentage of
contractors if that's already already been established
already. I'm not sure.
Pretty pretty rtad. It's it's it's at the standard 26 and
6, but the thought with related in 548 that will likely
exceed that but okay just passed through the chair what
we're looking at now, like, you know the contractors that
you got on board now, I know you going to play me Lenny
some other side.
To what extent to whatever information you have now that
you put together if you can provide that through the chair,
I'm not going to I would appreciate it. Can you break that
up by Soft costs and hard cause I think that's something
all the menfolk at 4 as well. Thank you. Thank you, Matt
and Taylor.
Thank You, Cher is this the same related Midwest that owns
Parkway Gardens
I believe so. Yes.
I digress who in the department is responsible for
monitoring the RDA. It seems like when you all do our DEA
there is there's no report or with an RDA that I'm I'm
having issue was in my ward. Nobody seems to do the
follow-up are sending out monthly reports who is
responsible for that and are y'all you all sitting now
reports as far as our DEA numbers are concerned.
What are the numbers in terms of number of hires? Can you?
ESO who do does the follow-up to make sure that these things
are actually happening. And is this everything in the r d a
This this this is not everything that's in the RTA. This is
this is what's driving the amendment is what was showing
here this year? Can we get all of us an idea that's been
part of the package.
It's supposed to mean you have it in the Ordnance package
that you received.
This way it's in the Ordnance package that we emailed to
you.
But to answer your question we within BPD we do have a
monitoring compliance team that is responsible for
monitoring the rta's making sure we get the compliance
reports make sure they've done what they need to do in
order to get payments price of this one they don't get
payment until after its complete our monitoring compliance
team is the one that will make sure that everything that
has been required for the RTA. Is it been at here too and
that is not given to the Other Woman?
Gestalt reports it is just
Aspera is it's an internal document. Yeah, I mean, let's
just be straight. It's an internal document and if you want
to get the information you have to call up the department.
I'll call up two more Terrance at Terrance with Tim and sit
down with them and they'll go through with you all of the
elements of a particular RDA that you might have an
interest in. They don't generate a report. They should they
can take that back and that's something we can ask him when
the new commissioner comes down to be confirmed as
something that we can post to her.
We will thank you madam chair. Thank you. All the men
Taylor all the men waguespack followed by all them in
Irving.
Experiment actually all the women Taylor just asked and had
those questions answered. Thank you. Say thank you all them
in Irving.
Reply all amendments been thinking about you. Don't take
this the wrong way. Why is there a need for profit sharing?
So the need for the profit sharing in this instance is
because of the the shorter compliance. It's part of the the
RTA typical car the other day. We are allowing them once
they've hit the 250 jobs and hit 50% occupancy to sell
that's that's what's driving this amendment. So as part of
that and giving up that with be included the profit-sharing
to to offset that shorter compliance. Potentially. What is
what do you consider to be a typical compliance. Versus the
compliance. Here?
Dip Cartier's what would have ate at in your compliance.
And what is the compliance. Here?
The compliance. Technically for the RTA still 10 years, but
we are also allowing them to sell before that. So if they
sell before that, that's when the the profit-sharing will
kick it so that's why that that piece was added.
India
okay, if the if it is so prior to the
good to hear. Then this profit sharing kicks in at 7030
after what?
After they've gotten a a 25% return.
And it's 70.
also 70.
70 them 30s on on the back end just just on the upside
after their their return.
Is this all end at a certain amount or is it Perpetual does
it up to the 8 million or is it Beyond a million?
Salon usual but I understand your understand the logic and
in your in the way that it is structured. So but but thank
you. This is not the first time you've done this to me to
follow up with you all in Irving. I don't think this is the
first time the city has entered into a profit sharing
agreement and you elaborate a little more on that. Yeah. So
we
What we started going using a profit-sharing probably back
in 2017 is on a few RDA some of some of the larger has gone
away from it up a little bit in terms of cuz folks are
committing the two holding on to his two properties for 14
years. So if in instances like this, which we don't
anticipate doing a ton of these what weather comprised.
Could be potentially shorter, that's where you would see a
potential profit sharing being included in the are
typically what we generally see is what we normally refer
to as a claw back is what we generally we seeing into
compliance. Is sometime and advertisers or examples are
yellow bananas still two didn't advertise right? So,
sometimes it it advertises over overtime and it in to some
extent and I understand what you're getting at but
it sounds like there is no amortization of the
Agreement where they normally could have been an
amortization of the of that amount that is due back to the
city only thing I want to make sure is that these guys are
getting a fair deal and that the fact of the profit sharing
and the potential of the all call it a re-imagined clawback
doesn't put people at a disadvantage and others aren't at
that same disadvantage. That's my that's my concern.
definition of fair deal
Thank you, all the manor of an alderman mitts.
Thank you madam. Chairman. I just want to ask him and
Burnett Sentiments of the developers and the team that they
put together. I look back and I saw.
Pastor Robert Wilkinson over there in 37 War doing this
thing back on business on Chicago Avenue stuff that we
haven't seen before. Thank you and I'll see you partnering
up again. So that tells me we getting some movement and
that's what we want to see movement. There's no way I can
manage you should be looking as if we don't live there and
we can't take care of business. So there is a APA.
Pastor real doing your thing out there making sure we
provide is that you wasn't good so I can make a ju working
on a project Chicago Avenue 548 getting ready to build a
new black over here. We just passed it. This did account.
It's not unusual. But I know you all do a great job and
what you do working hard trying to bring in and help those
two.
Didn't know where to go to get the opportunity and they are
certainly providing that and we want to see numbers move
up. So having said that in construction payout used to be
an issue, is there can you explain how payouts and go
Lupe's these contractors once they get the subject. I'm
sure Monique don't want to call in and tell her office
then.
I haven't got paid they put me in. Can you talk a little on
that issue for me? Sure. So what with the Tif funds the the
Tif funds are reimbursement, so
Jelly, that the developers Woodbridge. Those funds are with
Linda funds or equity. And then once the project is
complete that's when the Tif funds would would come through
but the project would be fully funded at closing either
through Equity that and then some Bridge financing or any
other grants that they may have and then again once it's
complete is when the the city's Tif funds will go into the
project. We went close unless it's a hundred percent 100%
funded.
in terms of a compliances
I think that.
I'm Monique you need to make sure that you have somebody
out there is capturing that data has to hear Internet site
and making sure that you get the participation that we need
from the community and then also your surrounding areas as
well.
But it gives you a opportunity to be able for you to know.
I don't know who from planning I wouldn't rely on just a
department. I will put that in the budget to put a person
on that site become particularly track your compliances for
yourself so that you know, you'll get a better number to
get better communication by doing that that just my
recommendation but gentlemen, so proud of you, you know,
that site have been vacant for a long time and it's been
Get them basket that the area has been there from the time
that has been in office. And I think there's well over time
or they project to be moving forward. Kudos to you and
started under your predecessor, but you get to finish it up
and I'm looking forward to working along with you on it
because it also connect all of us over there on the
westside of Chicago and trying to bring economic
development areas that have not been looked at over years
and and we have a lot more work to do. So thank you madam
chairman. Thank you all them and miss them before we go to
do all them is Scott Aukerman Mitchell.
Who has also indicated he wanted to speak on this project.
But before we go to all the men Mitchell, I wanted to give
pastor jurrell and maybe someone from New Covenant CDC and
opportunity to speak about the Innovation Center and how
you're thinking about that the use of those buildings.
First time a preacher has ever been shy of a microphone.
But I'm just grateful I grew up in that Community went to
Marshall High School down the street. And so I know so
often that I communicate I've been disinvested and all we
trying to do is just bring Workforce Development violence
reduction and some food and security to our community and
this facility black men united only 3 years old. And so
this facility will serve as a hub. They asked me what did I
see when you come down that street? I simply said I said
United Nations of not-for-profits because wherever there is
a need. We just want to be able to meet that need making
sure that will prove who we are but not anti nobody else
and so I'm just grateful for the Partnerships the
relationships the most importantly
I'm extremely excited about who my neighbor is going to be.
So God bless all of y'all. Thank you. So kindly thank you
Pastor Monroe. Thank you and you'll be paid for that
comment. My name is Rodney Brown a new cabinet CDC. We're
going to build something that's going to be substantial for
business owners in community on Roswell Road for me is
truly remarkable. I'm really appreciative of the
partnership. We have here appreciated ventilated by 48 know
the other part is connected with this program. This program
for us was better by the community to two years before the
Spartans even hatched. So this is on the committee is
looking forward to we want to look at how big is support
small business owners and also the community as it relates
to understanding how we going to create Legacy
opportunities in North Lawndale eye vision includes looking
at how we rebuild this community using small business. And
so we talk about rebuilding committee received this as a
key part of that process for so again, thank you officer.
Thank you very much. All the Mitchell. Thank you. Jamie
first. Let me say this. This is an absolutely amazing
project. I'm so happy for you Monique and my friend AJ over
there. No, I'm very proud of him. Look forward to working
with you in the future. Just a piggyback on something
chairman Irving talks about ask questions about the
profit-sharing. Okay. So the 30% will be paid back until
the 8 million.
Is recover the element that money will be returned back into
the tip providing that the tip is still open, correct?
What's it what's it? Like, what's the length of time
remaining when it says 20-31? Okay, so, okay. So we'll make
it the reason I asked that question because in the event
that the tip was closed I wanted to know where would that
money go with a Puerto Rico what's going on do I would have
returned back to the community? It would because because
they are different than it to return of the Tif funds. It
would have to go back to the respective taxing bodies.
Okay. Thank you for the information. Okay, who is the who
is the who is the Prime?
We have not announced the prime contractor yet. We're still
working through the some of those details. Okay? Okay. I'll
I'll keep up with Monique then. All right. Congratulations
guys. Beautiful project. Thanks Jim. Thank you. I too want
to congratulate the team and AJ. I see you're all over the
city of Chicago. So I'm also claiming you in three as well.
I want to congratulate all the men Scott on this project
because this is been like a eyesore as you know in North
Lawndale for decades and finally something's going to be
done. So I want to congratulate you on that and ask you to
speak to your project.
So this is Pastor the Scots and you know, this is like I
can't take credit for all the credit. I can take the credit
for the clothes cuz we have worked through this for the
last year-and-a-half now just going back and forth with
this project. But you know kudos to Michael Scott Jr.
Former Alderman and the former Administration for the
vision that they saw in the beginning. I've lived in this
community for fifty-two years and the last 30 years. This
has been an eyesore and the mountains of rubble that you
saw you'll get that every now and again and then I have to
call streets and saying to come out to come and pick it up
because it's still a Dumping Ground. They tell the cameras
down and still dumb. So when you think about revitalizing
and reclaiming this is just the opportunity that I think
that this community needs as Emma stated that it borders
her neighborhood tellifero neighborhood. It's just the
right push that we need.
We need for other developers to see hey, they took a risk
and we can take a risk on this community as well. You know
what the amount of jobs and it'll bring in the amount of
the 4,000 vacant lots to sit in this community. It is just
a
Wealth of opportunity to grow our community and so I am
proud that this is happening because now we don't have to
see this I so it's not really about a eyesore. It's the
economic impact that this will bring to North Lawndale and
I'm proud I think that my parents will be proud because
this is no to us is Mount Henry, you know it though. The
lack of disinvestment the lack of disenfranchisement ship
that has taken place in the on the westside. This is an
amazing. I think it's historic that the city is taking the
risk today that can lead to so much more in the future for
my child and other children in the community. You know, I
don't it it's it's
It's hard. When you have to drive your your child through a
rabbit's community and you don't see much and so this is
just I think the push that we need because I do I mean I've
lived in this community my entire life and I want to stay
there and I want to keep my child there so that she can
know about family and Legacy and stewardship and giving and
just paying it forward. And so I appreciate you guys. Thank
you, everyone that has
Taking part of this project and put the that we needed to
move the 24th ward in North Lawndale forward. Thank you.
Okay. Thank you all in the sky. We have a motion made by
all the member not recommending to pass all those in favor
signify by saying I suppose in the opinion of the chair the
eyes have it and they do pass recommendation will report it
out. Congratulations.
Item number for is from the Department of Housing. This was
on our agenda last month. All the men Taylor asked us to
hold it and she asked us to bring it back at this meeting.
It's an ordinance concerning the issuance of multifamily
housing revenue bonds and other financial assistance to New
City Redevelopment limited partnership for the
rehabilitation and development of the United yd one area
fordable housing project located at 1515 West 47th Street
and 1635 through 1643 West 47th Street and the 20th Ward.
And we have with us Miss vonetta Jones the financial
planning analyst for the Department of Housing. Good
morning, Miss Jones. Good morning. Thank you share woman
Dow in the members of the committee for the record. My name
is Benita Jones from the Department of Health Department of
Housing.
Before you today is the ordinance for the benefit of the
United yours one a transaction. This ordinance establishes.
The city's intent for approval to issue bonds up to 22.5
million approval to issue 14.5 million and Tiff and grab
the sale of one city on lot at 1515 West 47th Street for
the purchase of $1 and also to establish new city
Redevelopment LPS developer.
The developer is New City Redevelopment LP the development
team consists of Celadon and Blackwood. This is an 80/20
joint venture settled on LLC consist of both Scott Henry
and Aaron Weisner and Blackwood LLC of both Jose Duarte and
Rafael Hernandez, which is by apocalypse.
The proposed transaction is an investor Southwest
development located and the 20th Ward and the Back of the
Yards New City community area.
This upcoming phase will produce 51 new mixed-income rental
units located on two separate sites. Like one being the
city online at 1515 West 47th Street will be at 6 story
building the ground floor of site one will consist of an
opportunity Hub, which is it a technology training and
business support center specially targeted to support youth
for Committees of color. No income will be charged for this
face and it will be managed by a local nonprofit partner.
We all cold with strategic support from Chicago
neighborhood initiative situ will be located at 1635
through 1643 West 47th Street, consisting of two separate
three flat modular units.
This project was split into different phases here are
pictures showing what the new commercial spaces will look
like inside of the gold pass building and phase 1B. This
phase was submitted to the council in October and pass and
Council in November. We are here today for a passage of
phase 1A on it.
This is the mass rendering showing the 4 project once it is
completed.
This phase will consist of 51 units for both sites one and
two site one is a six-story building consisting of 45 units
reserved for households earning 50 15 to 80% Ami with 19
parking spaces of the 45 units to applicants will receive
subsidies or 6:15 % and 6:30 % units do the Chicago low
income housing trust fund site to consist of a total of six
two-bedroom units reserved for households earning sixty to
eighty percent. Am I along with eight parking spaces?
The proposed total development cost for this phase is
approximately 42 million. The project will generate
approximately 18.4 million and 4% Equity from tax-exempt
Bonds. In addition to tax-exempt bonds, the city will
provide 14.5 million and 10 fun and 7 million and CRP
Chicago recovery program fun.
we are requesting approval to issue up to 22.5 million and
tax-exempt bond approval to issue 14.5 million and Tiff
grab the sale of one Chicago City on lot at 1515 West 47th
Street for $1 and to establish new city Redevelopment LPS
the developer
Today, I have Aaron Weisner of Celadon and Jose Duarte and
Rafael Hernandez of Blackwood to answer any questions you
may have we also have Jesse an inquest from Back of the
Yards coffee as well. We are here to ask for your approval
and support this concludes my presentation. Thank you very
much for Neta I don't know if there are any other questions
from members of the committee cuz we had this last month
all the way more is was this packet here that she just
presented is that in our email as well? Say it again, I
didn't hear you say yes sir. It is so I can go to my email
and then I can get this presentation is on. Okay, it was
said last month when it was on our agenda and also resent
the for this month's agenda. Thank you all the Man Taylor.
Thank you madam chair.
This is the result of months of meetings. I'm excited about
this project has too often. Our communities really don't
get away in we we just checked the box and this was not a
check the box project. This actually was part of invest
Southwest on that happened with the last Administration in
a community really fought for what this face is going to
become if you think about 47th and Ashland goldblatt's a
lot of us used to shop at goldblatt's has been there for
years and it is a beautiful building but it did need some
restoration and I'm excited to know that Jesse from back of
the yard coffee is going to go on the space on Jessie is
born and raised in that Community. He knows everybody and
even when he didn't know me, he reached out to Olive Branch
is so I'm excited about this project.
Too often, we don't get to see the folks in our community,
you know move up and so for whatever reason just he closed
his coffee shop cuz of course doing covid and other things
that happen, but I'm excited that he is going to be in the
space. I'm also excited that they're going to build
Apartments because anybody knows anything about this
community is to a Latino and black community. There's a lot
of houses.
A lot of old housing stock. And so young people who came to
these calls said that they wanted to see this and so I'm
excited that this is going to happen apologies to the
group. In this with this is what happens when we don't talk
to each other before beating it. So thank you Matt
Michelle. You're welcome Alderman Taylor. Can I get a
motion to recommend approval of item number for move by all
the men Cardona recommending to pass all those in favor
signify by saying I I suppose in the opinion of the chair
the eyes have it and they do pass recommendation will
report it out on Wednesday. Thank you for letting thank
you. Congratulations on him until
Item number five is an ordinance concerning the execution
of a loan modification agreement with revive crusty Center
for housing and healing and Illinois not-for-profit
corporation located at 1660 through 1674 West Ogden Avenue
and the 27th Ward. We do have a letter from the alderman
Alderman Burnett and we're joined by you mon Desir a
financial planning analyst with the Department of Housing
for the presentation is to mon Desir.
Good morning, Charming daughter and members of the committee
for the record. My name is Eve Monday Seal Financial
Planning analyst for the Department of Housing. I am
presenting the ordinance for the Subaru ignition of the
city is in SimCity build-it lawn to revive Chrissy House 3
story building with 28 units of permanent housing
development in the 27th Ward. Alderman Burnett's they
provide support for the project.
We-Vibe Center for housing and hearing was founded in 1915
on the near west side of Chicago to sell the Twins and
homeless and hungry. It was founded out of the Episcopal
Cathedral of Saint Peter and Paul and was known as the
capital of shelter of Chicago for the first entry in 1958
the Panda Express Halfway House in Illinois for those
suffering from alcoholism in 1970. The property at 1668
West Ogden was acquired Lauren additional housing.
In 2007 2007 we've I began working with hard on permanent
Supportive Housing and in November of 2013 S5.
Go back to Sky one.
Thank you, and in November of 2013 revive Center for
housing, and he didn't change his name for Cathedral Church
of Chicago to reflect its expanded Mission and increase
impact in the communities.
Requested action to see buddy. Did you watch note and
mortgage of the new to the new senior financing provided by
Ida to explain the deal which note and mortgage for up to
an additional thirty years to be contaminated with the new
senior financing provided by Illinois Housing Development
Authority.
It's in the wind, you know, we are pretty house. The
property will be with nobody to improve Energy Efficiency
and a great units and immunities. The building is always
with one elevator and Ankle two floors of residence is
comprised of 28 units 18 Studios it one bedroom to two
bedroom.
Leupold scope of work with August unit to a six accessible
unit of which two units a focus on what century Empire the
building common area will be Revitalize in Plymouth area in
the parking lot would be resurfaced and a sexy book parking
spaces will be upgraded and we strive to ATA American
Disability Act standards. They are 14 of street parking
spaces and I have to emphasize this no new city fund has
been provided. This is the map as you can see the property
is in Chicago near West Side Community area.
Decide is at the corner of Ogden a lana Dickerson's house
is called the owned by the Weaver Center.
They didn't even see him consist of the following only
develop a revised standard for how is inhaling development
consultant Performance Group G C B Construction Corporation
architect design Bridge midlander, Ida attorney Winston and
Strawn the property manager the same as a revised standard
for housing and healing
Saucy's the IDOC 4.1 million dollars is 2 crore for
construction and Willy building expenses improvements
apartment. 148 Cape Air unit. Our loan is a subordination
to the new Ida loan and with extended hours to match
either.
They went over unit profile with the project has a total of
28 or 40 book permanent supportive Supportive Housing units
all at 30% Ami. It's in Studio unit 8 one-bedroom units to
two-bedroom unit at Chris's house at set in accordance with
called requirement for her subsidized Supportive Housing in
Kansas of the portion that is paid by the tenant and the
portion that is paid by hold subsidy. The tenant. Went went
from zero to Apartment 2.
350 payment
so today I'm here to ask the
the committee to approve the Subaru nation of the city cdbg
Supportive Housing loan, and also to approve 30 years
extension of the loan, and I would like also to introduce
to you the development team. Here in case for further
question we can address to them. We have to stop when we
have it when mayor and Peter Lane. Thank you for your time.
I'm just going to grab my presentation.
Thank you. We have a question from first form of Masada.
Thank you, Jared. Number one love the project my hats off
to my colleague in the 27th. Those older brick buildings.
Those are notoriously tough the heat so being able to do
with the Energy Efficiency there feels great the
affordability that were talking about number one great that
we're getting that 30% Are we meeting income affordability
the affordability I imagined the term of that matches the
30-year extension of the world. Would that be correct?
What images of how long the units will be affordable?
Are the unit going to be affordable?
War.
30 30 years 30 Years. Thank you, sir. Thank you very much.
All the men Burnet. Congratulations. Yes. Thank you very
much Madame chairman. So this is a building that that that
was put together right after I was elected in 96. So it's
been there for a while. I was right around the corner from
my home and gives a lot of folks an opportunity to be able
to stay in the community under a lot of people that need
help, you know, openness over this area rents are going for
about $3 to $4 a square foot. So it's about 4000 square
foot place about $3,000 a month to $4,000 a month, you
know, this gives an opportunity for people who don't have
money and can afford to be at places like that like that to
be able to stay in the community. But also this extension
of the loan and them
Being insubordinate on this loan with the state and I want
to come in the state of Illinois. And I also like to
commend my state representative representative javahery
Omar Williams, but his help in the state with this but this
this loan also what does does also it gives them an
opportunity to use a first floor in their building to have
a space where they actually help people who are homeless,
right? They come in they help them and they have case
workers and everything and they helped them to get
Apartments everywhere else not just there but all over the
city. So so not only is it a building a house people is
going to be a building that also help people to get housing
and other places and so it's it's a service for the city in
the state. So
I'm encouraged by this I support this 100% We need more
buildings like this and I'll be remiss if I did not say
this all started with with the Episcopal church, right the
Episcopal church start at this. This is connected to Saint
Leonard's House Church of the Epiphany all of those folks.
I want to come in that that denomination of religion or
having a heart for helping homeless. People are in the city
should
Chicago, so I support this 100% and ask for everyone else
to support. Thank you.
Advise your Conway. So this this project is is across the
street from my War.
I understand the the subordination of the debt that piece
of it but I see on the sources and uses page. There's a lot
of you do a lot of construction cost. What is other than
the part that the vice mayor Burnett mentioned about the
downstairs. What else is being constructed as a as a result
of us?
Referral nice to see you. This is actually going to be the
rent in identifying yourself. I'm sorry Teresa friend from
Lawrenceburg from the development Consulting on this
project and we have the interim executive director Aaron
Meier here Irwin Meyer here and former executive director
Peter Liang I'm this is going to be the renovation of the
property that was initially renovated in 96 and it now due
to wear and tear needs to be renovated and Ida provided the
original financing as well along side of the city and so
they are providing the additional actually those numbers
were a little bit they're providing.
An additional $9 in capital to renovate the building.
Can you talk about what the renovation what kind of
renovation I think that was your question all the
vice-chair Conway was that or something being subordinated
behind 9 million dollars worth of debt that make we may
have to fix the record or something and make this legally I
defer to you and the legal folks on that Teresa. Would you
explain the kind of work that's going to be done to improve
my computer later. All 28 of the apartments will be
completely renovated new kitchens new bathrooms.
All of the HVAC in the entire building will be change. The
elevator will be updated basically everything in the
building.
New windows almost everything in the building will be
renovated is is the unit count of 18 Studios 8 one bedroom
to two bedroom. Is that changing it? All is that sting sing
staying the same?
Estero
Play answer to the question regarding if there's a change
in the amount of dollars received from Ida.
Good morning, Esther Sorelle assistant commissioner for the
Department of Housing.
We've been updated most just recently so we haven't had
time to update our numbers, but we will correct the numbers
on the presentation and for them to the chair.
Thank you very much.
Hearing no other questions. Is there a motion to recommend
approval of item number five. So moved by Alderman Urban
recommending to pass all those in favor signify by saying I
I proposed in the
All right, all the mcconway is DNA in the opinion of the
chair. The eyes have it the do pass recommended
recommendation of the ordinance will be reported out at the
next city council meeting on Wednesday.
Item number. Thank you very much. Cheese.
Item number 6 a proposed ordinance authorizing the payment
of various small claims against the city of Chicago. The
list of those payments approved was sent electronically to
everyone and if there are no objections the committee will
recommend passage in the Omnibus.
I Am Number 7 was the proposed order denying the payment of
various small claims against the city of Chicago in the
list of payments denied was also sent electronically to
everyone and if there are no objections the committee will
recommend passage of these items in the Omnibus.
Item number 8 are two proposed orders authorizing
charitable solicitation on the public way tagged a permit
for the nature conservancy and their focus will be the Loop
West Loop River North streeterville Lake Shore East South
Loop Gold Coast between January 1st, 2024 and December
31st, 2024. The second tag, they permit is to the American
civil liberties Union Inc for Citywide Focus from January
1st, 2024 through June 30th, 2024. If there are no
objections, the committee will recommend passage in the
Omnibus.
Item number nine the department from the Department of Law
a communication transmitting reports of cases in which
verdicts judgments or settlements were entered into for the
month of November 2023. These reports were provided by the
Department of Law and was sent electronically to everyone
and if there are no objections
We will place these reports on file with the city clerk's
office.
Item number 10 or three proposed orders authorizing the
corporation counsel to enter into an executed settlement
orders in the following cases of the first case. We will
look at is 10 a James Mundo versus City of Chicago at all
case number 2020 CV 2562 in the amount of $515,000 for
that. We are joined by the department of laws Deputy
counsel, Ken Roebling Mr. Hendrix here to give a preamble
or on 10 a mundo versus City of Chicago. Good morning share
woman to Island members of the finance committee. I am 10
rolling on the deputy of the employment litigation division
of the city of Chicago Department of Law. The Department of
Law is
recommending settlement in a workplace harassment case
involving Fire Department Personnel in the amount of
$515,000
The case is James Mondo versus the city of Chicago. And
then Deputy Chief of the fire department Janice Hogan. The
case is pending jury trial in federal court.
When is identifies as a gay male and he alleges that
between 2016 and 2018 while working with defending Hogan in
the cfd Labor Relations Division? She subjected to unwanted
and offensive remarks at the sexual nature has made a
formal complaint to the city and fall of 2008 about the
alleged harassment and he went on a medical leave and has
been out of work since the city's Department of Human
Resources conducted an investigation of mr. Mando's
allegations and determine that Miss Hogan did engage in an
appropriate conduct contrary to the city is eeo policy Miss
Hogan did receive discipline as a result of the incident.
Department of Licensing the settlement to settle the case
to mitigate potential Financial exposure to the city at
trial the parties will present very different versions of
events, including whether any harassing conduct occurred if
it occurred, whether it interfered with the planets work
environment and whether the city took prompt and
appropriate steps to address. Mr. Mundos complaint
plaintiff is seeking over three million dollars in
compensatory and emotional distress damage.
At trial he would support his testimony by economic and
medical expert Witnesses. If you were to prove his claim to
trial in addition to any damages his attorneys would likely
seek reimbursement from the city of his attorneys fees
which we assess to be over $500,000 at this time taking all
the risks associated with trial into account Department
believes settlement is the best way to avoid the risk
uncertainty with trial and to limit the financial exposure
to the city.
That concludes my presentation. Thank you. Mr. Roebling all
them in Irving a question. That is the accused is the
accused is that person still with the employ of the city of
Chicago? She has since retired from her employment with the
fire department. Okay, if there are no question movie but
we have another question without vice-chair Conway. I think
I may have misspoke. When was the initial complaint made in
this in this matter October of 2018. Wait, if that's it.
Thank you, ma'am. Thank you motion made by Alderman Irvin
recommending to pass all those in favor signify by saying I
I opposed the opinion of the chair of the eyes have it and
will report to do pass recommendation out at Wednesday city
council meeting our second case 10B is Gary.
At all versus City of Chicago at all case number 2016 CV
7319 where join for this case by John Hendricks is the
managing Deputy Corporation counsel for the Department of
Law and By Carolyn also with the Department of Law.
Thank you Jared. This is a case that we presented once
before. It's a lawsuit that was filed in 2016 based on
events that took place in 2014. It's a police shooting
case.
the plaintiffs are the mother of the deceased and two
others who are representing the children of the deceased
and basically this is a case in which there was well put it
in some context those of you may remember it but all of a
preview the facts
On August 14th in 2014. There were four officers driving in
an unmarked vehicle. I noticed a bicyclist the
Good to see you soon. As name is Jerry Cole Garrett. He was
21 years old. They encountered him after a tip that there
were people running weapons from a certain part of town to
another part of town. This happened on.
130 3rd Street and it fits Police District 10th Ward It
Shine the Light on the bicyclist. He ditched the bike ran
they stopped the car two of the officers began to pursue on
foot.
ultimately
there was a
firing one of the officers fired 11 shots another officer
fired nine shots killing, Mr. Call Garrett.
There are up until that point multiple disagreements or
multiple facts in dispute about what took place very
different versions of the story radically so that the
Buenas claim there was actually no gun. The police officers
claimed that in fact a gun was pointed at one of them, but
then there are conflicting stories among the police
officers about that particular fact you short this is
difficult case factually, there is only one eye eye witness
who claims to observe the shooting and that was a person
who supports the deceased version of The Facts or no other
eyewitnesses supporting the officers version the facts we
have
spend a good bit of time on this case previously and have
worked it up as best. We can we think it is in the city's
best interest to resolve this matter and recommended
settlement amount of $2000000.
I'm responding to you have anything you want to add not at
the time? Thank you will take questions from the committee
will start with all them in Taylor and then vice-chair
Conway.
When I was trying to let you know it's still good morning.
Have the officers ever had complaints?
involved in this case
Yes, but there were I think so. The officers that are sued
in this matter or James bantley and Matthew O'Brien author
of Brian has total of 64 CR complaint registered one of
those was sustained.
Walter bansley total of 18 complaints one of those who
sustained
What is if we don't settle how much is this going to cost?
Well, that's that's uncertain, but the
Yeah, the amounts could.
Double triple on Bingham verdict in this case 2016 we
brought various motions. We failed on this motion to
dismiss the city for example.
So we're in position now where we produce we've done a lot
of what's called Discovery both sides and we are I think
pretty close to when it when it says trial scheduled it
yet.
After these settlements is there some type of disciplinary
action that happens to officers after the settlements.
There was there are disciplinary investigations into these
things that have gone on concurrently. The first was done
by April, which is the predecessor of Copa.
Your brother found I'm not sure the date but quite a while
ago that they thought the shooting was justified based on
their investigation, has indicated that it might have a
different conclusion, but that report was filed by April.
Was there a weapon recovered it was a weapon recovered it
was found 20 ft from the deceased it was it was tested or
yeah, it was tested for fingerprints problem is that the
the prints were not adequate according to the state to
provide an identification?
So one of the big disputes here there there were obviously
officers who allege they saw the gun and saw it aimed at
least one officer.
But there are other Witnesses who claimed there was no gun,
and that if you know the presumption is it maybe it was
planted.
Do we know who that gun was registered to?
I don't think we have a registration on it now.
Thank you. Thank you. Thank you. What's the worst case
scenario if we don't settle?
Well, we could go to trial the city could be found liable
for.
You upwards of?
I don't know two or three times, but we're asking settle
for an addition the officers in this case could spot could
face punitive damages.
Based on findings. They were acting outside the scope of
their Duty. So so I mean it could be it could be a very
good be a very young.
EIN number for the City could be additional damages
Financial damages to the officers when Martin King of
Damages potentially being at issue for officers. Can you
provide a high-level summaries 2 how those
Would be calculated based on your experience and prior
cases. I think it's totally up to the Jury Inn in those
cases in these situations. Actually. I mean, there are
numbers that can be based on a calculation of the
compensatory damages. But that in this case is a little
different because good Satori damages in this case would be
sought against the city people recognize that individual
officers generally in a don't have three or four times that
amount of money, but it could it could be a significant
amount of money that could do, you know.
resulting dissolution of the officer
can they be discharged in bankruptcy sticking with the
Punitive damage arguments are you do me like against the
officers themselves and that would happen if they were
deemed to be operating outside their scope of Duty that
would be damned if a jury found that the officers actions
deemed punishment.
Acting maliciously they were with these officers the time
operating were they in uniform at the time they were they
were and what type of vehicle where they have worked police
vehicle and and the you describe that the handgun was
recovered at the scene.
It was you was it automatic semi-automatic single shot?
What was it a semi-automatic handgun? Is this the same case
that our city council rejected the settlement July 2023.
Thank you.
Alderman Taliaferro, that was my question. This is been
before it's how many times just before this once before
what happened in between those two times? Were there any
talks of trial between plaintiff and defendant? So the
plaintiff's Counsel on this case filed a motion to enforce
the settlement agreement essentially asking the judge to
bypass the city council and enforce the settlement
agreement. The city has filed a motion to oppose that and
say that we essentially did comply with the settlement
agreement and that we have presented the case to city
council. However, we decided to represent the case for your
review. I am happy to speak with anyone else that wants to
hear.
The facts in this case, if you if you would like to discuss
them with me bypass the city council. I don't believe so.
This is a settlement agreement. Essentially that was signed
subject to approval of city council. The judge is already
reviewed it.
Take a shower woman. That's all I thank you all them and
Lee.
Thank you madam chair just to go back to this malicious
intent. He said we were just talking with you. Is there
something that you can talk about to describe a little bit
more how that may or may not have occurred in this case.
Since she's actually on the plants story in this case is
that the police officers encountered the deceased earlier
in the day?
Another fact in dispute, by the way.
That's all I want to thank you. Thank you all them and lay
all them is pasado.
Thank you. Madam. Chair can hear me. Okay? Yes, we can
question for Council if we win the case does it cost us
nothing? We said 80
It doesn't you know, it doesn't cost us in terms of
damages.
So I guess the answer to your question is yes Buster's your
room.
Okay, and and they were on duty and a gun was found and the
only reason you couldn't find Francis cuz it was handled
multiple times and was Prince on top of Prince on top of
Prince, correct?
They could not identify friends because there were too many
smudges. So thank you. Thank you madam chair. I'm still in
all thank you. Thank you all the messages. I do all the men
Hopkins followed by Alderman laspada followed by Alderman
Vasquez. This is a difficult case in a difficult decision
is many of these cases are if we choose to reject a
settlement and require that our attorneys to go to court
and they come back and we lose, you know that's on us. I
will have to bear the responsibility for that decision in
the added cost and that weighs on me is I consider this,
but I do have one question.
That I think might help make that decision in that is with
planets Council taking the very unusual step of trying to
compel a settlement when you know settlement is both
parties agree. You can't compel agreement. I mean that's
clearly standard and I thank you for standing up for a
council has ultimate Authority and making that decision but
the fact that they want the settlement in seem to be
adverse to a trial is that a possible indication that the
planets Council does not have as much confidence as they
would like us to think and their chances at prevailing a
trial since the evidence and in my opinion and many of my
colleagues and I share that opinion is we have a very
strong case to make it a trial if it comes down to that.
I'm so the fact that the plaintiffs counsel. Perhaps
doesn't feel that way. Is that a suggestion that we do? In
fact have a strong possibility to Prevail at a trial?
Speculate on what latest Council thinks about his case.
He's required to bring settlement offers to his clients and
his clients accepted that offer contingent on city council
approval.
Cancel if I can add if I can add it is in a we can't we as
as Caroline says but keep in mind where this case is this
case.
There was a lot of negotiation going on before we reach the
settlement.
so
I think both sides have an investment in doing what they
have already seen to be a wise decision at some point, you
know, the point we're at now is whether or not the council
can approve our view of the case. And so it's difficult.
It's difficult to say whether opposing counsel really
abused this as a great opportunity or not because we have
pushed pretty hard to get where we are already.
Ottoman was Sparta.
Thank you so much. I just want to speak into the points.
Of the case that you're making to counsel are clear and
there are even I I would say clear for those who are able
to attend settlement briefings the point that you raised
about the case cost zero if we Prevail. That's a confusing
one because it feels like it would take a lot of Law
Department attorney H time in fighting that case.
Go to try. I want it to me. That doesn't sound like 05 Comet
good boy, in terms of resources. This case has already cost
quite a bit of time and resources for the Law Department.
Certainly, it would be heavy left to go forward and trial.
So I took I took Alderman was out of the question to be one
about your monetary damages payout, but you're absolutely
right. This would be a very heavy lifting a lot apartment.
We currently represent. We are the trailers on this. This
is not that we don't have outside counsel doing this case.
And that would be I mean an even higher costs I would
imagine I appreciate that the spirit and what you were
responding by this one to broaden out. Our our definition
of costs that were considering thank you. I will add you to
the count for the non committee members we see you. I'm all
done Vasquez daycare woman appreciates that this is coming
back for the committee. I know when it came up before there
were a couple questions that we had gotten in the in the
actual meeting internal briefings at I think I wanted to be
reiterated. So I'm glad that other womanly kind of asked
the point that like the officer had actually had an
encounter with the individual fire in the day. So there is
some concern about
10:00 or earlier Point by maliciousness that I think could
be corroborated in a trial and they were spotted as well as
question. I was going to ask about the cost to retake on
what I didn't hear and it might be my fault. I apologize
how much we spent so far as a release in this case?
I actually don't have that data for you, but I can provide
it and get it through the chair. If you did It win any
award award. However, we've already paid the amount of
Labor necessary even have the case. So we are at a loss no
matter what is easier to calculate if we have outside
counsel. Everybody wants to know with you, you know, the
fees are at that point in the case, but if suffice it to
say we worked on this case since 2016 has been an enormous
amount of time spent and most of that has been born by
federal civil rights litigation division who is already
heavily burdened and I appreciate it. When you think about
the time being spent on a funds being spent on the fact
that in the best case scenario, we're not gaining any funds
were losing no matter what and where stand to lose more.
If we were to take it a try I think it's that old man just
makes fiscal sense. And so I appreciate that. We're talking
about it. Now the committee again. Thank you very much
Erin. Thank you all the Vasquez. I just wanted to weigh in
here to live. I believe that it's in the city's best
interest to settle this, you know, this is not like
black and white kind of case. There's you know, for those
of you who attended the briefing there was additional data
that was presented that also gave us an indication about
how difficult this case would be to win a lot of
outstanding concerns. And so I would ask that we maintain
our fiduciary duty as the council and past this settlement
agreement. So I will entertain a motion
Excuse me.
I will entertain a motion to so move by Alderman Mosley
recommending to pass all those in favor signify by saying I
I all those opposed know. Okay, so I hear Nae from Alderman
Taliaferro Alderman Conway Alderman O'Shea Alderman
Silverstein and Alderman Quinn pasado pasado.
Thank you Alderman Curtis. I got this and Hopkins.
Thank you very much.
This will be reported out at the next city council meeting.
Patrick Jenkins Tennessee, Patrick Jenkins vs City of
Chicago at all case number 2022 CV 5396 in the amount of
8750000 dollars.
Thank you. All who have that By Carolyn Franklin hanky
chair. I'm Caroline. Fronczak. I'm one of the deputies and
the federal civil rights litigation division. This is a
federal lawsuit that was filed by the plaintiff Patrick.
Jenkins is the administrator of the estate of Michael Craig
are seeking to recover damages arising from the fatal
shooting of Michael Craig by Officer Alberto covarrubias on
October 4th of 2021, the plaintiff alleges claims of Fourth
Amendment violations for excessive force and unlawful
seizure against covarrubias for the shooting death of Craig
plaintiff also filed Illinois state law claims under the
domestic violence act wrongful-death back to survival act
the Family Expense Act under willful and wanton conduct
Illinois state law indemnification and respondeat Superior
against the city. This matter is being handled in-house by
Department of law attorneys.
The law is recommending that the city authorized a
settlement in the amount of 8750000 to fully settle all
claims. In this case. The shooting was captured on
body-worn camera by the shooting officer Alberto
covarrubias Sergeant Jeffery West who was also present
during the incident did not have a body One camera sign
that day, but provided a statement to responding
Detectives.
Officer covarrubias was dispatched to Craig's apartment
after two separate 911 calls which both indicated that the
wife was threatening the husband with a knife that morning
when officer covarrubias and Sergeant West arrived. They
encountered the minor child. He was standing outside the
apartment waiting for them as directed by his father
Michael Craig. They asked the minor child what was
happening and the boys confirmed that his mother had an ice
and was threatening his father the officers gathered
information on which apartment to go to an officer crew
covarrubias had his taser in his right hand as he ascended
the stairs to the second floor apartment immediately upon
entering there was an altercation and covarrubias through
his firearm the body One camera video shows two individuals
fighting and shots are fired immediately. One shot is fired
while the two individuals are standing close to each other
at a struggle. The second shot is fired as Michael Craig
lays on the ground in approximately two seconds after the
first shot.
Both Craig and Willis play on the ground after the shooting
Craig was fatally shot. He also had injuries that included
defensive stab wounds to his body and two gunshot wounds
and his wife was ultimately charged with aggravated battery
and ended up pleading guilty to five years in prison for
stabbing on Michael Craig.
Latest damages are from the loss of Craig as a father to
both Patrick Jenkins, who is the adult son of mr. Craig and
his minor child Patrick Jenkins had a strong relationship
with his father. And the minor child was just too young
child of seven when mr. Craig died both Copa and CPT have
both recommended discipline that is currently under review.
In this case. The Department of Law believes the potential
exposure in this case is reasonably High given the 911
calls identifying that the female was the one that was
threatening the husband with the knife and an eye of the
potential risks and litigating this case. We recommend
settlement in the amount of 8750000 based on a
recommendation by the court to settle this case without the
expense of further litigation.
Alderman laspada Fall by Alderman Taylor
so I want to
I'm going to have a barbecue Sherry Duty and I'll be
confidential confidentiality of our briefings respect that
even as there's things that we shared last week make me
deeply angry about this case.
I don't want to speak into one thing that you said though
because I want to make sure that I'm clear on this back the
second shot that was fired was fired while mr. Jenkins was
on the grounds. Did I hear that correctly? Mr. Crack a
sister Craig.
Think I'm going to let that sit in my head for a bit. Thank
you. Thank you, sir.
Alderman Taylor. Yeah, y'all lost me. So he was he was
stabbed and shot. So they 911 calls that were called where
that the wife was threatening the husband with a knife. He
even indicated in one call that she had a knife to his
throat the officers responded to those calls and then also
encountered their minor child was standing outside the
apartment building waiting for them that child indicated
that his mother had a had a knife to his father's throat
the officer entered the apartment and immediately fired
shots the which ultimately struck Mr. Craig who was the man
involved in this altercation when the medical examiner
review the injuries to mr. Craig there were multiple stab
wounds on him that she characterizes as defensive as well
as two gunshot wounds, which were obviously for mr. Officer
covarrubias.
So all indications are that in fact, the the woman was in
fact threatening and actually stabbing a man with a knife
at the time of Officer covarrubias is arrival.
So the officer shot at the officer fired shots at mr.
Craig.
how to make a way
if you cheat.
So they went in the so they knew the situation and went in
shooting so they saw two individuals babe. I should say
only one officer actually saw the two individuals in the
altercation. He saw them in a struggle. He believes that
the man was the aggressor towards a woman. However, it is
supposed to be investigation indicates. Otherwise, so even
after the child stated what was going on the common sense
was to go in and still shoot or there any guns in the
situation know it was a knife.
Can I add can I add a fact and he went up the stairs with
the taser in his hand?
The officer yes.
Thank you. I appreciate us. I'm trying to wrap my mind
around the not everything. So is that why it's is this a
million-dollar one? Is that what we've had $1000000?
Thank you. Thank you all the men Taylor any other
vice-chair Conway.
You mentioned a autopsy report. Is there any also mentioned
that the the deceased had multiple stab wounds? Was there
anything in that report regarding cause of death? Whether
was the gunshot wounds or the stab wounds at that point? It
would have been the gunshot wounds.
Did the autopsy report say that or is it kind of and none
of that stab wounds that the he sustained would have been
fatal.
Thank you. Thank you by Cher Conway Alderman Curtis.
Thank you. Thank you madam. Chairman.
This is a no-brainer for me. I mean, I think it's in our
best interest to settle this case, but I do have a
question.
They have many cases that we settled at the city settle or
they'll get outside counsel. My question is and maybe we
need to bring our director of the Law Department here do
the city have their own individual investigators at all. I
haven't seen any of the book. Yeah. So we and we have
members of the Chicago Police Department that are detailed
to our office and they act as investigators for us, but I'm
just I don't know what you mean. And in terms of what type
of investigation are these parties also thoroughly
investigate the cases as well when they're you know,
litigating them.
Okay. Yeah, because we've got think we settled more cases
than than anything. So that was my question. Do we have our
own individual investigators that's handling a lot of our
in-house case?
Yes, but like I said attorneys when they are responsible
for letting and in case they're also responsible for doing
their own investigations as well. Also, as we work up a
case the lawyers, we will hire experts not outside counsel,
but experts to
Or investigations who has a specialist in that sort of
thing. So we we we would do everything outside counsel
would do in that circumstance. Thank you. Thank you. Thank
you. I'll demand Curtis Alderman O'Shea.
Thank you trimmer.
What type of
History of d.c. There two officers that responded that
right.
The officer involved with discharging his weapon.
What type of History does an individual have one case where
he received one day for an unlawful taser discharged and
then he also had a fire incident an off-duty incident that
resulted in a police Board hearing. He was off duty under
the influence of alcohol refused a direct order by a police
Sergeant to do a breathalyzer or so the police City moves
to separate him based on that. It went to a full police
Board hearing. He indicated that he was going to rehab so
the police board decided that once he completed the rehab
he could be reinstated with the Chicago Police Department.
Nothing further. Thank you.
Alderman Taylor, did you have another question or glad?
At any point do we have a conversation? Cuz a lot of this
seems to be
Unchanged behavior. And so when you all realize that this
is the second or third or fourth. Is there a time when
there is a conversation about them paying for this cuz we
this this is $8000000.
So the City by law is required for the toward immunity act
to indemnify police officers that are acting within the
scope of their employment. So this officer was on Judy he
was wearing uniform he was responding to a call. He was
there for acting within the scope of his employment taking
police action. So therefore the city would be required by
law to identify the officer for this kinda as we discussed
earlier. We were talking about punitive damages earlier.
Those are obsessed by a jury. And those are assessed based
on what they feel whether or not the officer was being
malicious by law to City cannot pay it and punitive damages
on behalf of any City employee nor those amounts
dischargeable in bankruptcy. So if a city employee is
assessed punitive damages,
They live with those damages for the rest of their life
until they pay them who works with you all to say that this
is the second or third in fraction and we are not paying
anymore. Maybe this officer needs to be discharged whose
work is that so that is responsibility for separation from
an apartment lies with the superintendent Copa make certain
recommendations to the superintendent and the
superintendent acts on those recommendations or doesn't
that's why I indicated earlier in this matter that the CPD
on Copa have made certain recommendations, but they're
still under there still under review. This is the case.
It's going before the police for it. I mean, yes the police
report. Thank you Matt in Jenison.
Yes, all women with spotting. I mean all them in Lazada
mixed up views are quite in line with each other. Thank
you, ma'am chair. I Caroline just a few. I know. I know the
answer to the questions, but I'm going to ask you anyway,
so first of all, I just want to preface this by saying I
support the settlement but how how old was the child that
was reading the police officers when they came up the
stairs there? He was 7 years old.
And what kind of history did the victim have?
So Mr. Craig, he asked a couple of convictions and a 1989
conviction for murder and unlawful use of a weapon by a
felon and a 1981 conviction for rape and aggravated
battery.
Thank You Caroline, thank you madam chair
Thank you. All them in. This spot is Otto and I think I
have all the men was spotted on my mind because the motion
made by all them in the spot him at recommending to pass.
Thank you very much all those in favor signify by saying I
opposed.
In the opinion of the chairs the eyes have it and the do
pass recommendation will report it out at our Wednesday
city council meeting there being no further business before
the committee. Can I get a motion to adjourn?
So moved by Alderman Cardona all those in favor signify by
saying I owe eyes have it waiting on finances at your and
have a great day everyone. See you Wednesday.