city council Rules of Order and procedure rule 49 the ser
sergeant-at-arms sets forth the following rules of conduct
to be followed during the public. That's all I got.
If I'm not here.
the city of Chicago City
the city of Chicago city council rules of conduct for public
meetings 2023 to 2027 pursuant to the Chicago.
meetings 2023 to 2027 pursuant to the Chicago city council
Rules of Order and procedure.
Rules of Order and procedure rule 49 the sergeant-at-arms.
sets forth. Good morning everyone to be followed.
finance is called to order.
Welcome.
Welcome back. I hope everyone had a good weekend.
Um, Happy
St. Patty's Day to those who celebrate it
um, we will now have a roll call to
Um, we will now have a role call to establish a quorum.
Vice chair Conway
alderman laspada
Alderman Hopkins
Alderman Hall
Alderman Mitchell
Alderman Harris
Alderman Beal
alderman
Alderman Lee
Alderman Ramirez
Alderman Quinn
Alderman Lopez
Alderman Moore
Alderman Curtis
Alderman OSHA
Alderman alderwoman Taylor
Alderman Mosley
alderwoman Alderman Rodriguez. Oh, he's on remote. Excuse
me, all the woman Scott.
Alderman seicho Lopez
vice mayor brunette
Alderman Talia Ferrell
Alderman Cardona
Alderman wag is back.
Alder
alderwoman Rodriguez Sanchez
Alderman row Ramirez Rosa
Alderman Spa
Alderman Vasquez
Alderman Reilly
alderman condensin
Alderman Martin
chairman dowels here
We have a quorum with 18. Mehm.
We have a quorum with 18 members. Um, we have requests. Uh,
Alderman Rodriguez Alderman IR
Alderman Rodriguez Alderman Ervin Alderman viegas Alderman
mitts.
mitts Alderman Silverstein and Alderman Mosley.
requested remote participation under the Prov.
requested remote participation under the provision of rule
59. Can I have a motion to allow these?
59. Can I have a motion to allow these Alderman to attend
the meeting by remote means
so moved by Alderman spaz
So moved by Alderman spaz, I mean alderman laspada.
all those in favor signify by saying I
post and the opinion of the chair of the eyes have it and
the motion carries. I'd like to conf.
the motion carries. I'd like to confirm that those aldermen
are with us this morning.
are with us this morning Alderman Rodriguez.
Alderman Ervin
Alderman vagus
Alderman viegas president
Alderman mitts
Alderman Silverstein
Alderman Mosley
is present
Okay. Thank you.
Ottoman Miss present. Thank you Alderman mitts.
At this time, we'll begin the public.
At this time, we'll begin the public comment period which
will last 30.
will last 30 minutes if if we have that many speakers.
will last 30 minutes if if we have that many speakers out
of respect for everyone's Time Each speaker is limited.
of respect for everyone's Time Each speaker is limited to 3
minutes. Um, the committee has been informed that we have
no callers remotely.
no callers remotely, but we do have uh in-person callers.
and the first speaker is Wallace Gator Bradley.
Oh.
Oh, good morning chairman. Good morning, and your uh
August Finance body.
first off I want to say
I thank God I want to say to God be the glory that.
the finance committee
came to a conclusion to settle.
the case for the 5.5 million
because
Of police, Mis.
of police misconduct
where
our police detective or officer
or hers the individual
to implicate someone else and a murder knowing that
To implicate someone else and a murder knowing that he
didn't do it.
and behind
all the thing that's been in the news how the
All the thing that's been in the news how the private
attorneys that the city was hiring.
was defend
Was defending cases that they know.
or knew that they couldn't
Or knew that they couldn't win.
I'm glad that.
I'm glad that there's a new corporate Council. I'm glad
there's a new Finance chairman.
that understand
That understand that you have to stop the bleeding.
from the taxpayers because at the end of the day is
taxpayers money that's coming out the budget that y'all put
together and in order to defend these cases.
together and in order to defend these cases that they know
that they can't win. I know there's a lot of other Birds
cases.
that may be stacked up to here now chairman since you got
That may be stacked up to here now chairman since you got
there, you know, it's been going on that long. So I just
pray that this robust buddy.
pray that this robust buddy body.
Which is the finance committee?
do everything that they can
To write the wrongs that's been going on.
To write the wrongs that's been going on all the time that
some of the ordinary never.
some of the ordinary never knew what was happening until
that laquan McDonald.
that laquan McDonald case came out and everybody was
wondering how could they hurry up and want to pay 5
million?
but
moving forward
I'm glad that y'all came.
to that conclusion
because I believe it would have cost the city more money if
you didn't settle.
If you didn't settle, you know what I mean? You got James
Gibson.
Gibson's case up there mark Maxon case up there.
A couple of others. I'm just saying that the people in the
city of Chicago is paying attention to the new
Administration and the new people.
Administration and the new people that had a responsibility
to help.
to help right wrongs. I just want to say I appreciate you.
And you know my favorite words from gate.
And you know my favorite words from Gator Bradley. I'm glad
that y'all listened, but thank you.
Thank you, Mr. Brad.
Thank you, Mr. Bradley. Um, I want to acknowledge alderman.
Harris and vice chairman Conway have joined us.
Harris and vice chairman Conway have joined us for Quorum
count and
Alderman Co Lopez
Our next speaker is George.
our next speaker is George, Blakemore?
Good morning, Mr. Blakemore. It's not a good morning.
It's not a good morning and it's not a good look.
over
Over and over again be settlement.
Over and over again be settlement for when police abuse
black.
black people.
if
If not a good morning, when will it stop?
When will it stop?
When will it stop John Burke and they continued doing the
same thing?
same thing over again?
if not
a good morning
if not
So gonna go there.
It's not a good morning when I see ate about black ultem.
vote for Sanctuary when all black behind me sanctuary.
It's not a good morning.
And it's not a good look.
somebody I heard
Somebody I heard Mr. Tim video the young man that come up.
here and speak and he said this is not a antib South.
Yes.
Yes, it is. It's worse than Jackson, Mississippi.
It's worse.
It's worse than Houston, Texas, Atlanta, Georgia.
It's not a good morning with these settlements over.
hundreds of millions of dollars every year.
hundreds of millions of dollars every year go for this.
Holy shall be John verse.
Holy shall be John verse it continues go on because we have
poor black leadership.
Where are the black people here when?
Where are the black people here when hundreds of millions of
dollars are being spent for?
dollars are being spent for illegal immigrants and these
people are?
people are empty of black men and women it's not.
these people are empty of black men and women if not a good
morning.
Don't go there with me.
And you was 1 of them that.
And you was 1 of them that voted for Sanctuary. Why would
you do that?
What motivated you if you hate to do that?
When your people need good?
When your people need good job contracts and serve. How can
education?
Why would you do that?
What motivates my black lead so-called leadership to?
like you act?
Why did he do this?
is
It's not a good look. This is worse than antib.
It's not a good look. This is worse than antibiotic down.
He's Sam.
He's sambo Angel mama house.
is
Is not a good morning.
well
Well, well folks you would expect 1 thing with birth, but
now we got a black girl of Friday.
And we expect you to not.
And we expect you to not act like birth.
We expect you to look out for our in.
We expect you to look out for our entry all of these
Democrats. I'm telling all my people don't vote Democrat
come.
come a republican vow.
Where the rep thank you, Mr. Blake Moore.
This concludes the public comment period want to
acknowledge Alderman OSHA who has joined us for quorum.
um we
Um, we've received 1 written public comment from
sustainable Eng.
sustainable Englewood initiatives requesting the developers
to work with the local Partners on the Earl Apartments.
projects. This was sent electronically to everyone. I also
want to acknowledge Alderman Quinn who is joined us as part
of forum.
and
Alderman, uh
Mana hop
mana hoppenworth and Alderman Lawson who are not part of
the committee, but who have joined us this morning?
We'll begin uh with the rule. Um,
We'll begin uh with the rule, um, 45 monthly report. Um,
you have in front of you the februari 202.
you have in front of you the february 2024 and the amended
October and November.
October and November 2023 rule 45 report.
October and November 2023 rule 45 reports. Um, we sent
those electronically to everyone and if there are no
questions, can I get a motion to recommend do pass of the
approval of this?
approval of this monthly 45 report and that motion was
made by Alderman Martin. Thank you all.
made by Alderman Martin. Thank you all those in favor
signify by saying I
op
Oppose an opinion of the chair the eyes have it. We have a
13 items before us this morning. And so we'll begin with
item number 1 which we did hear in febuary. Um, but it uh
had a slight issue. Um, and we needed this support of a
Alder.
alderman who shared a tiff in this area who is since giving
her approval. That's Alderman Coleman this
her approval. That's Alderman Coleman. This is an ordinance
concerning the issuance of financial assistance to Earl
school LLC.
school LLC for the Charles Earl Apartments project located.
at 1711 West 61st.
at 1711 West 61st Street in the 15th Ward and we have
substitute ordinance which was prepared and sent
electronically.
electronically to everyone. Is there a motion to accept the
substitute
so moved by Alderman Martin, uh, although it's in
so moved by Alderman Martin all those in favor signify by
saying I
post and the opinion of the chair the eyes have it and the
substitute ordinance is now before the committee and will
be explained.
be explained by Deputy Commissioner Tamara Collins. Good
morning. How are you? Good morning. Thank you.
Uh, good morning Madam chair and members of the commission
for the record. My name is Tamara Collins. And today. I'm
presenting the Charles Earl Apartments. Also in attendance
with me. Today is the developer.
with me. Today is the developer Ron cure of Gorman and
Company members of Phoenix.
Company members of Phoenix Foundation the nonprofit entity
partner.
partner beehive the Architecture Firm and Community
stakeholders.
stakeholders from teamwork Englewood and rage.
Charles Earl school is within the boundaries of the 63.
Charles Earl school is within the boundaries of the 63rd and
Ashland TIF district located at 171.
Ashland TIF district located at 1711 West 61st Street
formerly addressed as 6121 South Hermitage.
The school is within the 15th Wards Englewood West.
Community area where Raymond Lopez is the alderman.
Community area where Raymond Lopez is the Alderman and the
alderman has provided a letter of support for this prop.
proposal.
slide 3 next slide of the CH Charles Earl school building
was constructed in 1897 with an addition in 19.
was constructed in 1897 with an addition in 1900. It was
added to the National register.
added to the National register of historic places in March
of 2021.
of 2021 the school opened as 1 of many schools built to
serve Chicago's growing student population in the late
19th.
and early early 20th centuries the schools served Chicago
students for over a century before closing.
students for over a century before closing in 2013 next
slide.
the existing slide includes multiple buildings
to the historic building to additional buildings were
constructed to expand the school. This includes a 1974
structure with the mezzanine.
structure with the mezzanine level a in a 2-story Annex
Building.
Building, uh constructed in 1971. The 1974 structure will
be preserved for the benefit of this project and the 1971
structure.
structure will be demolished.
the project includes the Adaptive reuse and historic
preservation of the existing rural school, and we will be
redevelop.
redeveloped into a um, a portable permanent Supportive
Housing.
Housing for tenants with incomes at 60% of am
Housing for tenants with incomes at 60% of Ami and below
and the focus is on deeply affordable units at 30% of Ami
and below.
The developer was selected through 2 comp.
The developer was selected through 2 competitive processes
including the cpsr.
including the CPS RFP process and also through Ida's long.
long-term housing tax credit process where they received an
award of 1.5 million and 9 percent tax credits.
the idea for the renovation of rural School kick
The idea for the renovation of rural School kicked off in
in 2017 with alderman.
in 2017 with Alderman Lopez hosting the first of several
Community meetings.
The Earle School Outreach team is made up of community.
community-based organizations with a long history of
building coalition.
building coalitions alliances mobilizing disconnect.
minorities and working across sectors and SOC.
minorities and working across sectors and socioeconomic
divides toward a greater vision of racial.
healing
participants include included the students and parents of
lianlam high school.
uh the resident Association of Greater Engel
Uh, the resident Association of Greater Englewood also
known as rage teamwork Engel.
known as rage teamwork Englewood and the EG would
since 2019 meetings have happened in person during
Since 2019 meetings have happened in person during coid and
and during Co meetings continued virtually.
Meetings will continue through Construction.
Meetings will continue through construction and post
construction Charles Earl.
construction Charles Earl students a residents will be able
to organize.
to organize and guide ongoing operations through resident
Council.
As stated earlier the 1897 building.
As stated earlier the 1897 building was designated as a
Historic Landmark in 2021.
Historic Landmark in 2021 the Charles oral family
residences.
residences formerly known as The Charles Earl school.
Um will provide will be in all.
Um will provide will be an all-electric building that will
provide 50 units of affordable rental housing.
households earning no more than 60% 80, uh, 60% of Ami the
project off.
project offers amenities including on-site Property
Management social.
Management Social Services laundry community room.
Management Social Services laundry community room exercise
room and a Comm and the computer lab
existing windows and brick will be replaced.
existing windows and brick will be replaced or preserved to
maintain the historic profile of the building.
the community surrounding the project is walkable to
businesses and transportation. The site is accessible to
the CTA green line at 63rd in Ashland. The 63rd Street bus
is a block and a half away from the site.
is a block and a half away from the site and the CTA bus
lines also include the 9th.
lines also include the 9th and the number 9 Ashlyn bus and
the fit number 50 day in bus lines.
the site
The site is also accessible to the go green on racing Fresh
Market grocery store at 63.
Market grocery store at 63rd and Racine and to Kennedy King
College at 6.
College at 63 in Hollister.
additionally Gorman is
Additionally Gorman is working on a second project in the
16th War called the regen.
16th War called the regenerator which was selected through
the city's 202.
the city's 2021 longcome housing tax credit funding round.
the developer Gorman
The developer Gorman is develop developer as a Gorman and
Company LLC.
Company LLC the co-developer and sponsor is the Phoenix
Foundation, which is a nonprofit. The architect is beehive.
And the attorney is Ryan heart boner.
and the attorney is Ryan heart boner and um Van van Duren
and the GC is Burling.
Gorman and Company was established in 1984.
Gorman and Company was established in 1984 and currently
employs over 450 individuals through the development
architecture construction and Property Management, uh in
the Wisconsin area while this is the first of 2 projects
within the city of Chicago Gorman has already proven
dedication.
dedication and commitment to Chicago and the Englewood
community Through partn.
community Through Partnerships and Community engagement
over the last several years.
over the last several years while trying to bring forward
this project.
the Phoenix recovery the the
The Phoenix recovery, the the nonprofit sponsor is Phoenix
foundation and 20.
foundation and 2020 Phoenix recovery identified a need for
affordable.
affordable housing within the organization and in 2021.
Phoenix Foundation NFP was founded to
Phoenix Foundation. NFP was founded to seek Housing
Solutions for homeless people during the pandemic.
particularly those individuals and families with histories.
substance abuse involvement in the justice system and with
other behavioral, uh issues the Phoenix foundation and
Phoenix recovery is a bipac Le organization by Sherry Allen
Reeves the
Reeves. The who is the executive director. She has worked
in the service of others for over 30 years and is a very
VOC.
vocal advocate for homeless and those Des
vocal advocate for homeless and those disenfranchised she
serves on multiple committees with local.
serves on multiple committees with local Continuum of Care
of Chicago Coalition of the homeless.
of Chicago Coalition of the homeless the Chicago
homelessness and health Response Group for
and health Response Group for equity and under her
leadership Phoenix foundation will provide all the on-site
services to the tenants of the Charles Earl Apartments.
the arch
The architect beehive is a bip Park Le architectural
engineering design.
engineering design collect firm with Community focused.
They have designed and developed smaller multi family de
developments and and is now and they are now working with
Gore.
Gorman architecture to assist on this larger multi family
develop.
development.
the attorney Reinhardt
The attorney Reinhardt Manner and Van Duren has worked
extensively for both.
extensively for both nonprofit and for-profit developers
counseling own.
counseling owners and lenders and investors.
sophisticated low-income housing tax credits, histor.
Rehabilitation tax credits throughout the United States.
The contractor birling is a Chicago.
The contractor birling is a chicago-based full-service
construction company that offers a range of services.
specializing
Specializing commercial, excuse me specializing in
commercial and multi.
commercial and multi-unit residential construction projects
and has over 40 years of experience.
and has over 40 years of experience in the Chicago land
area next slide.
the proposed ownership structure of Charles Earl school
includes Earle School LLC as 100% owner has a limited
partner.
partner MCI Earle School LLC with 99% ownership.
partner MCI Earle School LLC with 99% ownership interest
and a managing member Earle School. Mmm LLC as a 1%
ownership structure.
ownership structure the managing member consists of
Partnerships with the Phoenix.
Partnerships with the Phoenix foundation and GC Earle
School.
School LLC next slide.
the plan is the project is planted is
The plan is the project is planted is a plan development or
also known as the PD with 2 current.
also known as the PD with 2 current sub areas sub area a
includes the proposed.
includes the proposed site showing the remaining buildings
and parking as well as the proposed landscape. It includes
out.
outdoor amenities such as a play area and outdoor patio.
Grilling spaces.
Sub area B, which is ref.
Sub area B, which is reflected outside of the highlighted
box has not been.
box has not been reviewed or approved by do and therefore
is not being.
is not being considered for financing as part of this
presentation. The developer will return to the city to
review and address any additional plans for sub area B.
review and address any additional plans for sub area B next
slide.
the unit
The unit mix uh includes the project has a total of 50
units.
that are comprised of 31 bedrooms 22 bedrooms.
that are comprised of 31 bedrooms 22 bedrooms for a total
of 50 units the project in
of 50 units. The project includes 9 Project based vouchers
from the Chicago Law and housing.
from the Chicago Law and Housing Trust Fund the Chicago
low-income housing.
low-income housing trust fund invest in the creation of new
rental housing for low-income housing households by
providing long-term op.
providing long-term operating subsidy in the form of
vouchers covering.
vouchers covering rents for units set aside for 15 to 30.
Ami
There are also 12.
there are also 12 HUD 8111 uh vouchers for
There are also 12 HUD 8111, uh vouchers for units at 30% of
Ami and no tenant will pay more.
Ami and no tenant will pay more than 30% of their income
towards rent.
next slide
the total development cost is the approximately 32.5
million and in
million dollars and includes multiple layers of financing
to support the development.
to support the development in addition to the 4.2 million
dollars.
dollars in Tiff and the 4662 in CRP from the city. The
project will be financed with various sources, including
the 1.5 million.
the 1.5 million dollars in tax credits from Ida as well as
historic tax credits.
and state tax credits, which collectively
And state tax credits, which collectively generated about
20.5 million dollars in tax credit equity.
Additionally it is going to provide a loan of over just
over.
3.2 million dollars these sources account for
um about 86% of the total development.
um about 86% of the total development costs also included
is a 2250 Grant um and fund from pom Ed a $1 million in
funding from the Federal.
funding from the federal Home Loan Bank, and the total cost
per unit is about 6510 the
per unit is about 6510. The city's subsidy is well
leveraged in this project.
leveraged in this project the tip and CRP funding as I said
accounts for about 14.
accounts for about 14% of the total development costs the
remaining 86% of the financing comes from other public and
private sources.
private sources outside of the city.
The project will meet.
The project will meet the city's requirements of 26 and 6
for MBE.
for MBE and 50% participation for Chicago res.
for MBE and 50% participation for Chicago residents. It
will serve individuals and families at risk of homelessness
with wraparound services from Phoenix found.
with wraparound services from Phoenix Foundation. It
encourages housing stability by Prov.
encourages housing stability by providing affordable
housing units equipped with amenities and supports
residents and their family.
It will create Construction.
It will create construction jobs and permanent jobs and
permanent jobs.
permanent jobs includes roles like Property Management
supportive.
Supportive Services and maintenance.
Do has reviewed the project and supports this much-needed
affordable.
affordable permanent Supportive Housing proposal.
Do and Earl school LLC respectfully requests.
Do and Earl school LLC respectfully requests your approval
of this project.
this concludes the
This concludes the presentation and at this time I'm happy
to answer any additional.
to answer any additional questions.
Thank you, Miss Collins. Uh
Thank you, Miss Collins, uh questions from the committee
Vice chair Conway.
Um, if you go back to slide 11
the that's the uh for Sadducees.
The tax credit Equity who's that coming from? I'm only
asking because the because the mention of the Maui grants.
on the other slide, so the the tax credits are
on the other slide. So the the tax credits are actually
Ida's tax credits the 9% tax credits and they sell the tax
credits to send a syndicator and then they provide the
equity for that. It's the same for the historic and state
tax credits those also get sold as credits and then the
equity comes to the project. Wonderful. That's all I have.
Thank you, ma'am.
Thank you any.
Thank you. Any other questions all the woman tailor you go.
back to the slide where it says who is Earl l or Earl
school LLC who makes that up?
so that uh, Ron clewer is
So that uh, Ron clewer is here. So that's the the ownership
structure and Ron clewer and Phoenix House are the um,
partners for um, the developer and call developer for the
project.
Gorman and Company in Phoenix Foundation that so that is
who the arrow School LLC is and they are from where uh, the
the G.
the Gorman and Company is from Wisconsin. They're out of
Wisconsin and the Phoenix Foundation is is a local
organization.
Played a f say the local organiz.
Played a f say the local organization Phoenix foundation and
who was the Phoenix Foundation? Uh, so that the chair you
ain't got to answer. Oh, I'm sorry. No, I don't. I just
they are here.
are here. They are here. Yeah, Sherry, uh, Sherri Reeves is
here from the Phoenix foundation and Ryan Flores here from
the Gorman organization.
It's not just speaks. Say your
It's on just speaks. Say your name. My name is Ron clewer
and I'm Illinois Market president.
and I'm Illinois Market president for Gorman. It is um true
that Gorman.
that Gorman & Company is headquartered or corporate offices
or head.
are headquartered in Oregon, Wisconsin, which is about 10
minutes.
minutes south of Madison. However, I represent the,
Illinois.
Illinois, um District of Gorman if you will, um, we are
indeed an Illinois based.
indeed an Illinois based company.
In in my world. I live in Rock.
In in my world. I live in Rockford, Illinois. I do a great
deal of work in um, Illinois across, Mol.
deal of work in um, Illinois across Molen Rockford the Quad
City or excuse me.
City or excuse me, Rock Island, and then um, we're working
on uh projects in Naperville in um, Highland Park and other
communities, but um we specific
communities, but um, we specifically focus on addressing
housing.
housing that serves a greater social purpose and with the
Great
great need for permanent Supportive Housing. That's the
bulk of our work. We cannot do it. However without
incredible partners and next to me I have both uh,
Sterling and Sherry who represent the Phoenix foundation
and will be providing. So, uh,
services on the project the Phoenix Foundation
Services on the project the Phoenix Foundation has a 51%
interest in the managing member.
interest in the managing member partnership government and
company has 49.
company has 49% interest in addition to that. Um, it has
been very important to us. I grew up not far from Englewood
and so the areas near and dear to my heart and I understand
that most people in Englewood do not look like me.
and so it's
And so it's very important that we provide opportunities
through our work to people.
through our work to people who don't look like me and we
have support.
have supported a strong beepo commitment to the project
both at Earl school and the Reg.
both at Earl school and the regenerator and of the 32
million dollars that is up there about 82 and a half
percent of it.
percent of it will go to bipac organizations who are doing
the construction. Um also looking at the
the construction. Um, also looking at the financing side
the services side and then the ongoing work with the
permanent jobs that stay at the site both for Gorman as
property manager.
property manager and um Phoenix foundation for supportive.
Services individual.
individuals there will be about
Individuals, there will be about 160 thousand dollars a
year in in wages paid.
for folks who are local and then
For folks who are local and then also there's about 160
dollars.
dollars a year that will go to contractors in.
dollars a year that will go to contractors in you know in
and around the neighborhood will support the project on an
annual basis.
Thank you, Mr. CL property tax.
Um Miss briefs would
Um Miss briefs, would you speak to uh Phoenix? I think it's
a good opportunity.
a good opportunity for people to learn more about your
organization. Thank you. So
organization. Thank you so much for this opportunity. Uh,
and it is a good morning. Just so y'all know I I I'm clear
about that. Uh, but what I like to say about what who we
are as the Phoenix Foundation we are
are as the Phoenix Foundation, we're an organization that
is clearly about making a difference.
is clearly about making a difference for people who have
experienced homelessness, right? And
experienced homelessness, right and also the fact that we
are led by people.
are led by people who have a have a life experience, right?
either through homelessness recovery, whatever.
either through homelessness recovery, whatever it is the we
we are looking at providing services.
we are looking at providing Services through that lens
knowing full. Well what it takes to get back on track and
to make a
make a difference within our community and provide that
level of leadership but not only that but that example of
what's possible and that's what we're really living into
but this particular project we're living in to
example of not only what can happen. But how you in
generational
homelessness, right
Homelessness right? Because that's what it's about. Right?
It's about the fact that these people who come
particular Housing Development won't have to have
generation of them who who experience homelessness.
we're going to be provide this the tools and the resources
necessary to end generational home.
necessary to end generational homelessness that also that
looks like providing some avenues for financial education.
That looks like
that looks like providing opportunities for home ownership.
That looks like
that looks like providing opportunities to
Entrepreneurial skills so they can create their own business
and create generational.
and create generational wealth. So that's where we're
really about. I've been working in homeless.
really about. I've been working in homeless services for
nearly 30 years. No Alderman d
nearly 30 years. I know Alderman Dow very well because I
worked in 2 programs in her Ward.
So I know full well what it takes.
so I know full well what it takes to make a difference in
the lives of people that we serve and the people that
particularly those who look like me right because it's
harder for the sub 77% of the people who are experiencing
homelessness.
homelessness in the city of Chicago look like me and that
shouldn't be right and so we have an opportunity to make
difference. That's just so thank you very much. We got a
long agenda. So I don't mean to cut you off Alderman Reilly
you had a question.
I do um Madam chairman. Thank you and
I do um Madam chairman, thank you. And of course I plan to
support this project, but I do have a couple questions. Um,
could we go back to the SL?
could we go back to the slide that shows the total project?
cost, please?
So it's roughly 32.5 million and then can we go back to the
unit distribution?
unit distribution slide?
for 50 affordable units
so that pencils out to roughly.
so that pencils out to roughly 660,000 dollars per unit. Is
that correct? I guess that's for the Department. That's
correct.
And very quickly. I know we have a long agenda here.
Um there have been a couple.
Um, there have been a couple of uh, rental buildings that
have actually transacted in the South Loop over the last
couple.
couple of years, and these are relatively new construction.
Delivered in 2020 I think 20.
delivered in 2020 I think 2021
And the average unit count for those.
And the average unit count for those buildings that have
just been sold comes in around.
just been sold comes in around 270,000 per unit.
How is it that we have these These are?
How is it that we have these these are all good projects,
and these are ones that I support.
And these are ones that I support, but it's frustrating I
think to a lot of folks no matter where.
think to a lot of folks no matter where you are on the
affordable housing.
ideological spectrum that that's a very high cost
Ideological spectrum that that's a very high cost to
deliver these units.
and I
And I guess you know, I think for everyone's benefit. Is
there something that contributes to these being so
expensive to?
expensive to deliver when we've got new?
expensive to deliver when we've got new market rate
properties transaction?
properties transacting for a whole lot less per unit.
Sure. Um I can just
Sure. Um, I can just speak just in in general and
specifically for this project we
specifically for this project. We have seen costs escalate
over the last 2 years particularly during Co and now Beyond
um on the new construction and on the preservation side, I
would keep in mind that this is a 50 unit. Uh,
building. So there are some additional things that have to
be taken into account on this. It is a school. It's
Adaptive reuse, so there's a lot of stuff that has to
happen uh there and so that's going to
Happen uh there and so that's going to add additional cost
to the project. Sure. Um, and then
to the project sure. Um, and then but in general we have
seen costs escalate. I want to say in 2018.
seen costs escalate. I want to say in 2018 2019. We saw
cost coming in around.
cost coming in around 500,000 dollars a unit um costs.
gone up due to construction interest rates.
around 7 or 8% right now, and I understand that man, but I
I guess even before we started experiencing.
highly escalating uh inflation
Highly escalating, uh inflation of the last several years.
these
These units still have been in excess of 500,000 dollars to
deliver.
Which by comparison is?
Which by comparison is a lot more than it seems market rate
units are.
units are transacting for.
so
I'm as interested in stretching our affordable dollar as
far as we possibly can to deliver more units.
it seems
It seems that regardless of the current market condition.
These are still incredibly expensive compared to other
units delivered in the city and I
units delivered in the city. And I guess I'm just trying to
understand why that is because the city does have a mission
to deliver as many units as possible. But these costs far
outpace what we're seeing for other propert.
outpace what we're seeing for other property.
And I'm talking about property in the central business.
district.
Thank you Alder.
Thank you Alderman. That was a question Madam chairman.
the best that I can address it is what?
the best that I can address it is what we've seen just over
the last couple of years.
the last couple of years, uh, as I've already stated
interest rates are going up cost in there have been supply
chain issues.
chain issues during uh coid and still a little bit now.
chain issues during uh coid and still a little bit now cost
of materials have gotten higher I know.
of materials have gotten higher. I know that when you do
affordable housing and you'll get no argument from me.
affordable housing, I've always said is expensive to build
and in support of the affordable for the people to live
their
there. There are other costs associated with it that you
might not see due to the restrictions on affordable
housing.
that you might not have on a a regular real estate.
transaction a market rate deal. So you might um have more
restrictions on how many how much reserves you have.
into a project. Um, there may be restrictions on for
example if there's market rate in an afford.
example, if there's market rate in an affordable deal those
rents have to be discounted so that means
rents have to be discounted. So that means more money has
to go into the project because generally the the the market
rate units are discounted by about 15% to make sure that
the building stays stable.
these projects have to remain stable for 15 to 20 years so
we can we have to so we generally are putting a little bit
more money into the deal, but the project you know when
you're doing affordable housing.
you're doing affordable housing, um, you know, we're trying
to create safe decent.
to create safe decent and affordable housing. I can't I
mean this is really in my opinion a question that goes
really to the market like why are things as high as it is
we've been asking these questions. I don't know that we've
gotten really clear answers from the um construction
industry. Um, but
As far as I can tell you.
As far as I can tell you now this is what we're seeing, uh
coming in and coming.
coming in and coming into. Okay. Thank you. Thank you. I
appreciate that and
appreciate that. And that's obviously a topic for another
day, but
day. But um, thank you for this. I just wanted to point
this out to my colleagues.
this out to my colleagues that we should be doing better on
the prices. We're paying
the prices were paying for these units if we want to put
people into stable housing. Thank you madam chair. Thank
you and just a small comment on the sales that you're
talking.
talking about. Some of those sales are um actually below
the cost of what it costs these guys to build right? So
that's 1 thing you have to take into account plus the
number of units that is going into the number is
sometimes I mean we're talking 50 units here in the case of
the 1 building in my ward that just sold at uh on Michigan
13th, you know, there's hundreds of units in that so that's
a large.
a large number that goes into um, the
that's a large number that goes into um, the FAQ sale price
of something that was lower than
probably what he used to construct it.
Okay.
alderman
Alderman Le spotter
Thank you Jared. I I just want it's a good conversation to
have and maybe it's 1 for are there building standards?
the housing committee to take up at some point because we
do throw.
do throw up so many roadblocks to developing.
do throw up so many roadblocks to developing affordable
housing and actually make market rate.
housing and actually make market rate housing less
expensive in the process. I mean
Anyone here who's had an affordable housing project?
Ward probably knows we hold them to higher labor stand.
than we do market rate developments. I'm sure a lot of
market rate developers. Enjoy not paying prevailing wages,
but that's not made.
but that's not made available to affordable housing
developers. I'm sure it must be easier.
developers. I'm sure it must be easier to not be held
accountable to the sustainable development policy or to the
state.
state historic preservation office like
their projects that have been made infinitely.
their projects that have been made infinitely more
difficult because they're affordable housing and
expensive than being market rate housing. So if we want to
level the playing field, I would be glad to hold market
rate developers to The Standard.
rate developers to the standards that we do affordable
housing developers. We probably get better.
housing developers. We probably get better units out of
market rate development, but I I understand this I mean for
15 years.
15 years, it's more than that probably it's been more
expensive to develop affordable housing than market rate
housing.
housing and if we want to have
a serious conversation around that I'm sure our new
commissioner has a lot of ideas to bring to the table to
work with your team.
work with your team on those numbers. Um, but I'm
glad for the project. I mean it is
very challenging to develop this kind of depth of
affordability the way that that impacts your proforma the
the costs the revenue.
the costs the revenue you're bringing in over time. The
maintenance of those units all goes into this so
no, maybe that that's
No, maybe that that's a teaching that we do for Alders at
some point.
some point in the future, but I'm I'm glad for the
conversation.
I don't really have questions. I'm excited for the project.
Thank you. Thank you appreciate your comments. Um
Uh, we have letters of support from all.
uh, we have letters of support from Alderman Lopez and
support from uh, Alderman Coleman. Uh, so
Alderman vagus you have a question.
Uh, yes, ma'am, um mad.
Uh, yes, ma'am. Um Madam chair if um, is it this is a CPS
facility.
Yes.
Do is it?
Do is it possible that dpd or CPS could provide?
Do is it possible that dpd or CPS could provide a list to
us as to what other schools are in the pipeline?
us as to what other schools are in the pipeline for this
type of projects that this is a great repurpose of a
existing structure. We just wanted to see what the plans
were if there were any plans.
Thank you.
Uh, we'll have to reach out to C.
Uh, we'll have to reach out to CPS, um on that, uh, they're
not
Part of this discussion this morning. I thank you for your
question. Thank you.
And we would like to acknowledge all the Curtis.
And we would like to acknowledge all the Curtis who's just
joined us for Quorum. Can I get a motion?
joined us for Quorum. Can I get a motion recommending to
pass for this item?
so moved by Alderman Lee recommend
So moved by Alderman Lee recommending due pass all those in
favor signify by saying I opposed and the opinion of the
chair.
chair of the eyes have it and the due pass recommendation
for this.
for this item will be reported out at our next city.
meeting the second item. Thank you. Um, the second item on
our agenda is from the Department.
our agenda is from the Department of Housing as well. It's
an ordinance concerning.
an ordinance concerning the execution of a loan
restructuring.
restructuring agreement with Hallstead limited partnership
for the property located at 3600.
for the property located at 3600 through 3616, North
Hallstead.
Hallstead Street in the 44th Ward. Um, we are
by Joseph Lewis the financial planning analyst with the
Department of Housing who will present on this.
Madam chair
excuse
Excuse me, um, Mr. Clure and the Gilder sleeve and Miss
Allen.
Allen Reeves. Thank you so much for coming before.
Allen Reeves. Thank you so much for coming before us this
morning. Congratulations. Uh, yes is that Alderman Ervin?
Yes, ma'am. It is I just want to let you know I'm here.
Okay. Thank you.
And chairwoman. This is Alderman Ramirez Rosa Ramirez.
Rosa and and solar scene and Silverstein the gang's all
here. Welcome.
Mr. Lewis
Thank you.
Thank you chairman dowel members of the committee for the
record. My name is Joseph Lewis, and I'm a financial
planning analyst with the Department of Housing. The
request before you is a proposed.
request before you is a proposed ordinance to authorize
ownership or structuring of the 79 unit mixed use
affordable housing community.
affordable housing community for senior citizens known as
the Town Hall Apartments.
the Town Hall Apartments the property that is the subject
of this.
of this request is at 3600 to 3616 North holstead Street in
the in the 44th Ward and all their loss and supports this
restructuring next slide, please
in particular Doh seeks authority to restructure City
documents related to the Circa 201.
documents related to the Circa 2013 existing approximately
4.6.
4.69 million dollars City Loan made to haul
partnership, which is the owner of Town Hall Apartments.
partnership, which is the owner of Town Hall Apartments to
provide for a proposed change of ownership.
The proposed restructuring will 1 remove Heartland housing
from the ownership of the property and allow full circle
communities.
communities and Center on fed in the ownership of this
property.
And 2 will not other.
and 2 will not otherwise alter the principal interest rate
lean position or maturity date of the circuit 2013 City
loan or any affordability rest.
loan or any affordability restrictions at 3600 to 3616
North Hallstead next slide, please.
Shown here is the location of the subject property, which
is a high.
a high-rise elevator service mixed-use building at the
northwest corner.
northwest corner of the intersection of North holstead
Street and West add.
Street and West Addison Street in the Lake View Community.
Next slide please.
uh the exterior of the subject
Uh, the exterior of the subject property is shown here. The
building was originally constructed in the 2010s and
contains ground floor retail.
contains ground floor retail commercial space and 79 studio
and 1 bedroom units with all units restricted to occupancy.
by senior citizen households earning no more than 80.
by senior citizen households earning no more than 80% of
the Chicago area median income.
The subject property was redeveloped by Heartland housing
and placed in-service is mixed income housing approximately
10 years ago.
to support the circuit 2013 Red
To support the circuit 2013 Redevelopment of the property
is a portable housing the city of Chicago.
is a portable housing the city of Chicago provided an
approach, uh provided an approxim.
approach, uh provided an approximately 4.7 million loan of
Home funds.
Home funds, uh, which is scheduled to come due in 2045.
low-income housing tax credits and donation tax credit.
assistance next slide, please
subject the subject restructuring is motivated by the fact
that Heartland housing is not financially stable enough to
meet its obligations.
meet its obligations as an affordable housing owner and
continue its business as an as an affordable housing
developer.
art
Artland housing notified the city of Chicago in April of
2023.
2023 that its portable housing portfolio including this
property.
property was in distress and that it would not be able to
ensure its properties as of June 1 2023
the city filed a motion asking the circuit
the city filed a motion asking the Circuit Court to appoint
a receiver Community initiatives incorpor.
a receiver Community initiatives Incorporated to manage
3600 to 3616.
3600 to 3616 North holstead and other Heartland Affiliated
properties.
properties in the city and Heartland housing effectively.
shuttered at that time.
The receiver was discharged.
The receiver was discharged by the court in January 2024
and recog.
and recognition of Full Circle communities capacity and
willingness to place.
willingness to place insurance coverage in connection with
the property prior to closing on the proposed
restructuring.
Next slide please.
Slide provides a visual of the ownership restructuring. I
will note that the requested.
will note that the requested action does not involve a
conveyance of the property to a new owner.
conveyance of the property to a new owner of record, but
rather this restructuring concerns.
rather this restructuring concerns the composition of the
ownership interests in the entity that is
ownership interests in the entity. That is the owner of
record all said limited partnership.
To this end the subject of restructuring would replace.
Heartland in the ownership with full circle communities as
well.
well as increasing the center on Hallstead ownership
interest. There's no overlap in the management principles
of heart.
of Heartland and the management principles of Full Circle
communities.
communities next slide, please
Full circle communities is in Illinois not for-profit
corporation. That was
corporation that was formed in 1999 and is headquartered in
Chicago.
led by CEO Joshua wilmouth will
Led by CEO Joshua wilmouth full circle stated
organizational mission is to expand access to cual.
affordable housing through preservation and development.
thoughtful design and the provision of significant and
targeted.
targeted social sir. Excuse me Supportive Services to their
residents.
residents in the surrounding communities. Excuse me, Mr.
Lewis.
Lewis, uh, is there something called presentation?
and to the officer in the back
And to the officer in the back if there's a way to move
that noises.
that noises, it's bothersome.
Thank you Alderman Taylor.
You can continue okay?
Led Led by CEO Joshua and will my full circle communities
stated organizational mission is to expand access to
quality affordable housing through preservation.
quality affordable housing through preservation and
development thoughtful design and the provision of
significant and Target.
significant and targeted Supportive Services to their
residents and the surrounding communities
In total full circle has an ownership interest.
In total full circle has an ownership interest in over 1,400
units in 3 states and owns 7.
units in 3 states and owns 7 properties in Chicago
containing over 400 units.
recent work includes development of Brainerd Park
Apartments a 36 unit supportive living facility.
at 89th in Loomis in 2018.
at 89th in Loomis in 2018 development of 5150 Northwest
Highway is 75.
Highway is 75 unit mixed income apartment community for
veterans disabled person.
veterans disabled person seniors and families in Jefferson
Park and acqu.
Park an acquisition and Rehabilitation of South Park Plaza
13.
134 affordable units and 6 buildings near 20 near 26th
Street in King Drive in 2023.
Next slide please.
I've recapped the requested actions in the slide for your
consideration, and I'm joined by Mr. Joshua wilmouth the
president and CEO of Full Circle communities to answer any
questions that you may have. Thank you for your
consideration of this matter.
Thank you, Mr. Lewis. Almond Lawson.
Thank you very much. Madam chair, uh, very happy.
Thank you very much Madam chair, uh, very happy to get my
support to this restructuring. Um anyone who wants to tour
this is 1 of the most important buildings in my ward. Ugh,
and I have regularly filled so this
and I have regularly filled. So this is uh, the first of
its kind lgbtq friendly sin.
its kind lgbtq Friendly Senior housing in the midwest. Um
that opened we're going on 10 years ago now, um, the
residents love it. Um, it was the youngest building in
hartland's portfolio.
hartland's portfolio, uh, which I know made it 1 of the
easiest ones to spin off.
easiest ones to spin off um, and to maintain but I know
that work continues
work continues, I know the next item up. I know that
building very well in 48, too. So I want to thank do and
the receiver
receiver. Um,
Making this move quickly. I think there's a a lot of
consternation among all of those units when there's there's
uncertainty um in housing and and the city did a really
great job there. I want to make full circle communities for
coming in. I think they have a great Mission. Um, the
Josh wilmouth and I met uh month ago, I think um, and
really appreciate their commitment this also,
really appreciate their commitment. This also gives more uh
control to Center on Hallstead, uh, which
control to Center on Hallstead. Uh, which of course is the
nation's first lgbtq focused Community Center.
nation's first lgbtq focused Community Center, uh in the
midwest not the nation's first, so it's a very
midwest not the nation's first. So it's a very exciting
block, uh that I'm proud of and is important for our city.
So happy to give my support and appreciate yours as well.
Thank you.
Alderman Taylor
Is this a building that's already occupied?
Yeah, excuse me. Uh
Yeah, excuse me, uh the property at 3600 to 3616 North
Hallstead.
Hallstead is an occupied, uh developed property and all but
2 units are occupied as of uh as
2 units are occupied as of uh, as of a week ago.
with the change over we
With the changeover, we those folks when we displaced or X
to move.
That's right. There's no relocation or displacement activity
cont.
contemplated in connection with this restructuring nor any
um modification to any affordability restrictions currently
in place at the property.
Thank you madam chair. Thank you.
Thank you madam. Chair. Thank you Vice chair Conway. Uh,
yes if you go back to slide.
yes, if you go back to slide 4, please the 1 with the uh
overview the overview slide.
the the upb there I
The the upb there I presume that's that's on paid balance,
right?
Upb is unpaid principal balance. That's correct. So does
that was?
that was 4.9 issued initially and that
uh, how much is amver?
uh, how much is amortized to date or is that not yet
issued?
uh with respect to this property, uh the city
Uh with respect to this property, uh, the city loan is
secured by a mortgage and second lean.
secured by a mortgage and second lean, uh under the
following terms with the it had an original amount.
following terms with the it had an original amount of up to
4,900.
4,900 582, uh with 4.
4,900 582, uh with 4,692 181.
4,900 582, uh with 4,692 181 actually drawn during
development.
So is the difference between the 4.6 and the 4?
So is the difference between the 4.6 and the 4.2?
The amount that's amortized.
in the last deck
In the last decades since this went up or what. Is that?
What does that represent? Well, um, the the unpaid amount
of the loan is presently it is the 4.6 number. Um, the
had issued the loan with the face value of up to 4900.
million 40058.
million 400582. Um,
not all of that full face amount of the loan was actually
any needed for project costs during construction. Well when
you say the unpaid part of the
when you say the unpaid part of the loan is 4.6 and it says
unpaid balance.
unpaid balance is 4.2.
What is that difference represent?
What is that difference represent is that acred interest is
that?
something else
Oh.
I I apologize. I misstated uh, uh in connection
other item that I am presenting today.
So I'm not trying to stump you. I'm just trying to get some
clarity on the 4.9 4.2 difference.
clarity on the 4.9 4.2 difference here. Sure the unpaid
principal balance of this.
principal balance of this particular loan is the 4.2
number. Um, the original face value was 4.9 repayment.
Terms are there are repayment terms on this loan and the
difference between 4.2 and 4.9 represents rep.
difference between 4.2 and 4.9 represents repayment that
has occurred in the past 10 years. Okay. So yeah, that's
the advertised.
and what's and what's the
And what's and what's the interest rate on this loan?
0%
All right. Thank you.
All right. Thank you very much.
Thank you Alderman, Mitchell.
um, can you go back to the
Um, can you go back to the slide that had um this action?
And then it had 2 bullet points.
Uh right here requested action. I'm curious about some for
the for number 2. It will not alter princip.
the for number 2. It will not alter principal balance of
loan interest rate loan the loan payment.
loan interest rate loan the loan payment, uh, the the lean
position of the loan or the maturity date.
I will.
I was Heartland able to be removed.
from the loan
in full
and full circle takeover
uh at
Uh at the that that is the subjective today's present.
and the requested action is to is the authority to formally
remove Heartland from ownership.
remove Heartland from ownership of this property and to
install full circle communities in its place. Most of
install full circle communities in its place most of the
traditional obligations.
traditional obligations and duties 1 might think of as an
owner collecting rents paying operating expenses paying
real estate taxes Etc. The responsibility for that has been
removed from Heartland for several months, um by the court,
by the court. Yes the pursuant to the appointment of
receiver by the Circuit Court.
receiver by the Circuit Court, uh, Heartland was
disempowered from those activities. Uh, this is to complete
the sort of
Um restructuring that you know, they they've been
disempowered.
disempowered already, but now we're formally removing them
from the ownership and removing that mention of
the city's loan document and there's been some form of
vetting.
vetting going that has taken place before about full
circle.
in their ability to continue on
Uh, that's right. Pretty much as this has a going concern.
That's right. Uh, we we have done due diligence on Full
Circle.
Circle communities as a replacement owner, uh,
Circle communities as a replacement owner. Uh, we have no
concerns with their capacity to to uh take
concerns with their capacity to to uh, take over in place
of Heartland. Okay in terms of their financial. Thank you
for that clarification. Okay. Thank
alderman
Alderman followed by vice mayor Bernette
yeah, so I just
Yeah, so I just wanted to really Echo what Bennett said I
know this isn't a new.
know this isn't a new project. Um, and the the the
that it's already 77 out of 79 unit.
that it's already 77 out of 79 units filled shows a demand
we talked to a lot.
We talked to a lot of seniors within the lgbtq community
and this project I think is a a great.
and this project I think is a a great um, uh example of how
we can boost community.
we can boost Community a lot of times these seniors don't
feel at place or feel a little bit outcasted in in certain
other.
other homes. So as an extension of what Center on Hall
does so well and you know, like
does so well and you know like Bennett I've sent I've spent
a lot of time in Center on Hallstead this
a lot of time in Center on Hallstead. This is just such a
good impact. So I wanted to take the opportunity on what's
not a new thing to really say I'm I'm hopeful that uh, you
know more focused senior housing like this comes up.
affordable.
Thank you. Vice mayor brunette.
Uh, thank you very much Jew just for um,
clarification, uh, I know like I have
Clarification. Uh, I know like I have a building that uh,
Heartland had and and we have a receiver over it right now,
so you
So you only bringing Folks up, uh, because Heartland is
Heartland had to give up all of their properties, but
you're bringing this 1 up because they're restructuring the
loan, right?
Um, we we're bringing this forward because um, we need to
restructure the city's documents to provide.
restructure the city's documents to provide for the sort of
permanent. Um,
permanent, um, you know restructuring solution.
permanent, um, you know, restructuring solution, uh to exit
Heartland housing and to install a new owner.
Heartland housing and to install a new owner in place. Uh,
there are several properties.
there are several properties that Heartland had owned
throughout the city including uh some in Ward 27 and
elsewhere in the city.
elsewhere in the city, uh, each property is on.
a
for lack of a better phrase a different track to closing on
the restructuring. There's different factors to consider in
terms of interest in taking over these properties. Uh, and
we are you know, basically moving each restructuring
forward as as we are.
forward as as we are, you know as they are ready to move
forward. Um, unfortunately, it is not the case that every
single heart
single Heartland.
sponsored property is ready to move forward to to new
ownership, but those that are
ownership. But those that are we will we will bring to city
council as soon as as they are ready to you know, uh be
considered in that manner. Okay, because I know like with
the property.
the property in my ward.
At the end of them.
at the end of them, uh, losing the property in
At the end of them, uh, losing the property in between that
time they neglected a lot.
time they neglected a lot in those buildings, like for
instance. I had 1 building that they didn't have they
wasn't even paying the people.
wouldn't even paying the people to pick up the garbage.
for a long time
For a long time right? And so it's a lot of probably a lot
more expensive.
more expensive that they had to deal with um on the
end because of the neglect.
end because of the neglect or or the the the challenge that
they had.
they had fulfilling the obligations and taking care of
those.
those buildings before they lost it lost.
those buildings before they lost it lost all of this
property.
So this is these are cost.
so this is these are costs that we probably uh incurring
right now because of that. Uh, so
yes, unfortunately the receivership activ.
Yes, unfortunately the receivership activity has.
Comes with a cost. Uh
Comes with a cost, uh, the receiver, uh is handling certain
affairs.
Affairs of the property and and you know, they they they
incur expenses as they do that. Uh, it is it is
I could get given that fact it is.
I could get given that fact it is um
of utmost importance for us to to move these
Of utmost importance for us to to move these as forward
through restructuring as soon as we are.
through restructuring as soon as we are in a position to
and there's an interested uh a
and there's an interested, uh able and willing uh owner
that can come in.
that can come in to to take over and provide for long
long-term.
long-term stewardship instead of this sort of temporary
fix. That is the receiver.
fix. That is the receivership.
Thank you. Thank you all.
Thank you. Thank you Alderman brunette. Uh I motion made by
by Alderman Taylor due pass all those in favor signify by
saying I
opposed in the opinion of the chair the eyes have it and
this motion carries and the recommendation will be
reported.
out at the next city council meeting item.
out at the next city council meeting item number 3 is a
similar situation.
similar situation and ordinance concerning the execution of
a loan restruct.
a loan restructuring restructuring agreement with
Hollywood.
house limited partnership for the property located.
house limited partnership for the property located at 5700
North Sher.
North Sheridan Road in the 48th Ward. Um, we are
Will continue with Mr. Lewis from the Department of
Housing.
Thank you chairman.
Thank you chairman dowel members of the committee, uh again
for the record. My name is Joseph.
for the record. My name is Joseph Lewis. I'm a financial
planning analyst with the Department of Housing.
planning analyst with the Department of Housing the request
before you now is a proposed ordinance to authorize
ownership restructuring of the 197 unit mixed income
housing community for sin.
housing community for senior citizens known as the
Hollywood House Apartments.
Hollywood House Apartments, uh, the property that is the
subject of this.
request is at 5700 North Sheridan Road in the 48th Ward and
Alder Mana hoppenworth supports this restructuring next.
slide, please.
specifically
Specifically do is seeking authority to restructure City
documents.
documents related to the Circuit 2008 existing.
documents related to the Circuit 2008 existing City home or
City. Cdbg Loan made.
City. Cdbg Loan made to Hollywood house limited
partnership, which is the owner of Hollywood.
which is the owner of Hollywood House Apartments to provide
for a change of own.
for a change of owner a proposed change of ownership the
proposed restruct.
proposed restructuring will 1 Heartland housing from the
ownership of the property and allow full circle communities
in its place.
and 2 will not otherwise, uh modify the principal interest
rate lean position or maturity date of the 2008 City loan
or any affordability rest.
or any affordability restrictions at the property next
slide, please.
Shown here is the location of the subject.
Shown here is the location of the subject property which is
a high-rise elevator service mixed.
a high-rise elevator service mixed use building at the
northwest corner of the intersection of North Sherrod.
northwest corner of the intersection of North Sheridan Road
and West Hollywood Avenue in the Edgewater community.
and West Hollywood Avenue in the Edgewater Community next
slide, please.
The exterior of the subject property is shown here. The
building was originally constructed in the 1960s it
contains.
contains and contains ground floor retail and commercial
space and 197 studio and 1-bedroom units.
space and 197 studio and 1-bedroom units for seniors.
most of the residential units 177 in total
are rest.
are restricted to occupancy by senior citizen households
earning no more than 60% of the Chicago area median income.
and the subject property was redeveloped by Heartland
housing.
housing and placed in service is mixed income housing
approx.
approximately 15 years ago.
uh to
Uh to support the 2008 Redevelopment of the property is
mixed income.
mixed income housing the city provided an approximately 4.
4.88 million loan of cdbg funds.
4.88 million loan of cdbg funds scheduled to come due in
2015 low-income.
2015 low-income housing tax credits and tax increment
financing assistance.
financing assistance next slide, please
uh, like the last presentation the subject.
uh, like the last presentation the subject restructuring is
motivated by the fact that Heartland housing is not
financially stable enough to meet its obligations as an
affordable housing owner and continue its business as a
housing developer.
Heartland housing notified the city of Chicago in April of
2023 that it's a portable housing portfolio including this
property was in distress and that it would not be able to
ensure these properties as of June 1 2023
the city filed a motion asking the Circuit Court to appoint
a receiver community.
a receiver Community initiatives Incorporated to manage
5700.
5700 North Sheridan and other Heartland Affiliated
properties in the city.
and Heartland
And Heartland housing effectively shuttered, uh around the
middle of 2023. The receiver has since been discharged by
the court.
the court in January 2024 in recognition of full.
the court in January 2024 in recognition of Full Circle
communities cap capacity and willingness to place insurance
coverage in connection with the property.
coverage in connection with the property prior to closing
on the proposed restructuring next slide, please
uh this
uh, this slide provides visual the ownership restructuring,
uh,
Uh, I'll note that the requested action doesn't involve a
conveyance.
conveyance of the property to a new owner of of record, but
rather it concerns the uh, changing the composition of the
ownership.
ownership interests in the entity. That is the owner of
record.
record Hollywood house limited partnership.
to this end the
To this end the subject of restructuring would replace
Heartland in the ownership.
Heartland in the ownership with full circle communities.
Uh, there's no overlap in the management principles of
Heartland in the management principles of full.
Heartland in the management principles of Full Circle next
slide, please
Full circle is Illinois.
Full circle is Illinois, uh is an Illinois not-for-profit
corporation that formed in 1999.
corporation that formed in 1999 headquartered in Chicago.
It's led by CEO Josh wilmouth, uh in total it has
ownership interest in over 1400 units in 3 States.
including 7 properties in Chicago with over 40 4.
including 7 properties in Chicago with over 40 400 units,
uh recent work as mentioned in the last present.
includes the development of a 36.
includes the development of a 36 unit supportive living
facility at 89th in Loomis in 2018. Uh, the development of
a 75 unit mixed income Community for veterans disabled
persons.
persons seniors and families in Jefferson Park and
acquisition.
Of 134 units in 6 buildings near 26th Street in King Drive
in 2023 next slide.
in 2023 next slide, please.
Uh
I've
I recap the the requested actions on on this slide for your
consideration. I'm joined by Mr. Joshua wilmouth.
circle communities to answer any questions you may have.
Uh, thank you for your consideration of this matter.
Mr. Lewis, uh alderman manal hoppenworth
Thank you chair. Thank you do.
Thank you chair. Thank you do and uh, thank you Joseph for
the presentation. Uh, yeah I fully support.
the presentation. Uh, yeah, I fully support this, um
happening. This has been a long time coming and um, the
that um, it's been this long it.
that um, it's been this long it it um points to the the
residents who have been waiting.
for a very long time
For a very long time uh for for something to happen.
For a very long time uh for for something to happen and and
uh the conversations today.
uh the conversations today, um makes me think that we might
need to look at affordable housing differently.
need to look at affordable housing differently because of
um,
the way we structure it, which is a private and
the way we structure it which is a private and public
ownership. Um,
when the ownership leaves we you know, it's the residents
that are made to suffer because of uh elevators that don't
work because of security issues because of lack of
maintenance.
Maintenance and um, so, uh, Heartland,
Maintenance and um, so uh, Heartland, um could have reached
out and said that they needed help but they didn't and so
the residents were made to
because of the receivership told to keep paying their rent
and uh, even though the building was under distress, and so
we are we welcome full circle. I appreciate that Josh.
we are we welcome full circle. I appreciate that Josh came
to the office to you know talk
to the office to you know, talk about um, the plans, you
know, the 48th Ward is um is uh, you know,
Is a high opportunity area for development?
Is a high opportunity area for development. So it's a very
desirable place to live and um these folks that have been
living in Hollywood house have been there for many of them.
for decades and they remember when it was a beautiful
building to live in and they um, they want to stay, you
know, this is steps away from Hollywood.
know, this is steps away from Hollywood Beach. This is
right on Sheridan and um, these are veterans these are um
folks with disab.
folks with disabilities, um older adults and uh, they want
to dignified place to live and so we've been waiting uh for
a long time. Um, I know that Joshua and his team, um are
committed to maintain not only maintaining the building but
also improving it and also providing services for those
that live there. Um, and um, yeah, I I, uh, I fully support
this I um, thank you Joshua. Thank you do and I hope
we as a city can think about ways.
we as a city can think about ways that we can uh provide
more affordable housing.
more affordable housing in Chicago besides the way we're
doing it now,
doing it now. Thank you. Thank you Alderman alderman
Taylor
Thank you madam. Chair. So is it full circle again? This is
the second. Yes, ma'am. It's the the same organiz.
the second. Yes, ma'am. It's the the same organization. Uh
that is that was proposed in the last.
that is that was proposed in the last matter to replace
Heartland will all is also proposed.
Heartland will all is also proposed to replace Heartland
housing's interests in 57.
housing's interests in 5700. What was Full Circle? I don't
think of full circle is here represented by Mr. Wilmouth if
you would, uh,
come to the mic and
tell us something about your organization.
tell us something about your organization happy to thank
you for the opportunity to present my name.
you for the opportunity to present. My name is Joshua
wilmouth. I'm the president and CEO of full.
wilmouth. I'm the president and CEO of Full Circle
communities. We're a Chicago based.
communities where Chicago based nonprofit We own about
2,000.
2,000 units um in Iowa.
2,000 units um in Iowa, Michigan and Illinois.
we are located in the
We are located in the West Loop. I am actually a
constituent of chair.
constituent of chairman dowels. I've never met you.
1,600 South Wall Bosch. All right, and actually we met at
uh 2021 tax credit.
uh, 2021 tax credit announcements at 18th and Wabash. It's
a couple of years ago it has been
um, our mission is the creation and
Um, our mission is the creation and preservation of
affordable housing through thoughtful design.
affordable housing through thoughtful design and the
provision of significant and targeted.
provision of significant and targeted services to that to
our residents and what that means is we take 75 cents out
of every dollar that we earn from the properties that we
own and manage and we use that to pay for services for our
residents.
residents based upon their self-identified needs we
residents based upon their self-identified needs. We are a
real estate.
experts
Experts were affordable housing experts were not service
providers. So we partner with local organizations in the
last instance. We've increased the amount of ownership and
economic benefit.
economic benefit to Center on Hallstead to continue
providing the services that they're providing at Town Hall
Apartments here.
Apartments here because there is no direct service provider
connect.
connected to the building Heartland was providing services
at 1.
at 1 point in time, but they have not for a while.
at 1 point in time, but they have not for a while, uh my
services team, who are
services team who are charged with connecting communities
to Services. Uh, we've already had initial meetings with
the residents. We're going to be doing focus groups.
the residents. We're going to be doing focus groups and
Community meetings throughout this year.
Community meetings throughout this year to identify where
people are challenged not just with the built environment
of the building.
of the building as Alderman hoppenworth noted but also,
of the building as Alderman hoppenworth noted, but also
where they are struggling relative to social connection or
Healthcare behavioral health things of that nature and
start bringing.
start bringing services to
bear for our residents at that property
as Joe Lewis mentioned we have
That's Joe Lewis mentioned. We have 7 properties in the city
of Chicago with more than 400 units virtually all.
of Chicago with more than 400 units virtually all are
affordable our 501c.
affordable. R501 C3 Charter mandates that uh, the majority
or all of our units are affordable.
or all of our units are affordable and again mandates that
we dedicate 75 cents out of every dollar that we earn for
services for our residents.
Thank you.
point of information Alderman Curtis
75 cents per every dollar per project
yes, so 75% of our developer fees our
Yes, so 75% of our developer fees our cash flows and
distrib.
distributions made to serve sponsor loans and things of
that nature.
75% of every dollar goes to directly to provide or to for
fun fun to reserve.
fun fun to reserve for services at that property or in the
community.
Thanks. Thank thank you.
Uh hearing no more questions. Can I get a motion to approve
approved?
approved by Alderman Taylor again, uh recommending do
all those in favor signify by saying I opposed and the
opinion of the chair of the eyes have it.
opinion of the chair of the eyes have it and the motion
carries and we'll be reported out.
carries and we'll be reported out at the next city council
meeting Mr. Lewis. Thank you for your presentation this
morning. We'll move on to item.
morning. We'll move on to item number 4, which is an
ordinance concerning.
ordinance concerning the authority to enter into and
execute and intergovernmental agreement with the Chicago
Park.
Park District for the
vision of tax increment financing funds for improvements at
Bessemer Park located at 8930 South mske and Avenue in the
Seventh Ward. Um, we are joined today by Beth O'Reilly from
the Chicago Park District.
the Chicago Park District to give a presentation on this
project.
Good morning, Beth.
Thanks.
for changing
For changing drivers, so just hold on 1 second.
the
The team Beth is going to present on Park District.
See you there.
Let me get where you are.
Okay. Hi for the record. My name is Beth O'Reilly. I'm the
deputy budget director for the Chicago Park District. Nice
to see many of you.
to see many of you again and nice to meet the new aldermen.
Alders. I guess this is the new word. Um, as I said, I'm
from the Chicago Park District.
haven't
been here for a while, but
been here for a while. But uh, we are here today for
Bessemer Park. It's a site Improvement project in Alderman
Mitchell.
Mitchell's Ward.
We are going to
we are going to um
transform this park. Uh, it is a located in the south,
Chicago.
Chicago Community. It's a regional park. It's 20.2 Acres.
The park Fieldhouse is an A-Class facility.
constructed in 1905 and features 2 gyms the boxing gym
multipurpose rooms.
multipurpose rooms the outdoor amenities include Gardens
artificial.
artificial surf artificial turf soccer field hand.
artificial surf artificial turf soccer field handball
swimming pool spray feature tennis court.
swimming pools spray feature tennis courts and a huge
baseball area.
uh neighboring Baker College Prep and Bowen High School use
the baseball fields during the baseball and softball
Seasons. However, given the current condition of these
fields, uh, they have to travel to do their official play
games. This is only a practice field.
games. This is only a practice field for them newly rented
baseball diamonds will allow Bessemer to serve as the
school's home field.
school's home field and these upgrade field upgraded Fields
will be available.
will be available for Community leagues and new programs
like t-ball and little league during the summer months.
um, the proposed scope of the Tif funded projects
Um, the proposed scope of the Tif funded projects, uh will
rebuild the baseball diamond 1 of them.
rebuild the baseball diamond 1 of them and uh reshape the
infield.
infield and Outfield by removing smaller unused diamonds.
and back stops.
the Tif ball field reprogramming project
will supplement the project and that is currently under
design and is now funded with the Chicago Cubs charities.
contribution of 150,000 and the Morgan Wallen.
contribution of 150,000 and the Morgan Wallen Foundation,
which can that Foundation contrib.
which can that Foundation contributed dollars Last Summer.
together
Together these Partners have provided the necessary funding
to improve.
to improve Diamond number 2 at the park. We will apply the
Tif funding to expand that project and renovate diamond.
Tif funding to expand that project and renovate Diamond 1
and also improve the field Lighting on both.
and also improve the field Lighting on both diamonds.
aside from the ball Field improvements the Tiff investment
will include the replacement of the water feature the
existing spray feature will be out.
existing spray feature will be outfitted with new
infrastructure including new.
infrastructure, including new Surface and interactive play
elements. You can see this, uh park has quite a few ball
field.
fields Diamond number 1 and Diamond number 2 will remain
all of the others will be removed. So all of that Outfield
work will
Scoop up all that and reach her the field.
um those diamonds you can see you can't really
Um those diamonds you can see you can't really effectively
play you're playing on top of each other. So it's pretty
dangerous the way it is.
dangerous the way it is, uh set up the photo on the left is
uh, Diamond 1 and 2 you can see there's sort of
uh, Diamond 1 and 2, you can see there's sort of adjacent
and um, this is the existing uh, bleacher seating for the
fans. Um as it exists now,
um, these are the player benches so we will totally
rebuild this poor concrete put the GR.
rebuild this poor concrete put the gravel. It'll make it
like a great place to play ball.
Um, this is the existing.
Um, this is the existing spray feature. This was built in
the 80s. Uh, and it's we don't build this style anymore.
And in fact, we're trying to replace as many of these.
And in fact, we're trying to replace as many of these as
possible. Um, they are
you wouldn't want to fall on that concrete. We'll just
so.
this is sort of what we're
This is sort of what we're putting in. This is a style of
the interactive spray feature.
the interactive spray feature that are going in and quite a
few of our parks that blue thing will whip around and the
water sprays. It's fun. They it's interactive and it turns
on and off. Whereas now the spray features once they turn
on they're on for the season.
The renovated ball fields will resemble this 1 this looks
like it's a Turf infield. We are doing grass but the fact
that the um,
that the um side wings and back stops.
that the um side wings and back stops and player benches
and the running.
surface for the Baseline will look like this as opposed to
what uh, the existing condition is right now.
As I mentioned the Cubs are contributing 15000 through.
their Diamond grant program and the Morgan Wallen.
Foundation was here and they picked this project out of all
the projects.
the projects we presented, uh as a community.
the projects we presented, uh as a community in need and
uh, they're supporting youth activities like baseball.
We the Tif money is going to put 500,000 dollar.
We the Tif money is going to put 500,000 dollars in the
Ballfield piece to pull up the remaining.
um Fields lighting and uh necessary fencing the spray
feature will be removed and replaced for dollars and then
the $50,000 will do um
access improvements to the improved facilities, uh and
Landscape restoration where we have construction so that
is 50,000 bringing the budget for 7.
is 50,000 bringing the budget for 750,000 for this project.
Thank you Beth.
Thank you Beth Alderman, Mitchell.
Thank you chair. Um.
this uh this
this uh, this is 1 of the parks that growing up in the
This uh, this is 1 of the parks that growing up in the uh,
700s and 80s that I played Little League.
and as we hit the N, that's how it looked when we were
growing up and um when you hit the 90s deferred maintenance
set in and and it just the
set in and and just the the direction of Lily took a turn.
so it is really excited for me exciting for me to to
So it is really excited for me exciting for me to to now be
in a position to work with the park.
in a position to work with the park district in our in in
other funders to uh, bring this park back to life and also
playing.
playing for kimwood, uh Braun.
playing for kimwood. Uh Broncos we play born in in a tour.
We we played at this field. I mean it was it was better
than the field.
than the field that Kenwood had and now Ken Woodsfield is
is a lot better than this 1 so I'm glad we have the
opportunity to bring this.
opportunity to bring this field back to life and to start
the ball.
the ball rolling to get 1 of the 4.
literally programs back in our parks
Literally programs back in our Parks again. This is this
kind of sentimental to me because this is this is where
myself and a lot of the guys I grew up with.
myself and a lot of the guys I grew up with, uh battled
over here and then they end up battling Jackie Robinson
West that we could never beat but now but again, I I I urge
you guys to ask you guys to support this, uh this project.
you guys to ask you guys to support this, uh this project
and um, thank you.
Thank you Alderman Mitchell Beth. I have a question on.
Thank you Alderman Mitchell Beth. I have a question on the
uh.
Private dollars how aggressive is the park district?
securing private dollars and how do you determine where
those dollars go?
Uh, well our main fun.
Uh, well our main fun for the uh, Ballfield programs.
Uh, well our main fun for the uh, Ballfield programs stick
with ball fields or in general. I I
your focus here on
Your focus here on uh ball fields, but I'm focused.
Okay facilities.
Who?
Pools everything yeah pools. Um, well, we'll just start
with ball fields. Uh, we rely on a lot of outside fun.
ball fields. Uh, we rely on a lot of outside funding as you
guys know, we we Bond about 30 to 35 million dollars for
our Capital program.
Um, and at this point we have 519 playgrounds we have
I can't even tell you how many baseball diamonds we have a
ton. So.
ton. So Cubs Charities was our primary spawns.
ton. So Cubs Charities was our primary sponsor for um, The
Diamond Grant programs.
Diamond Grant programs this funding uh is their last right
now they are looking to do maintenance on the
now, they are looking to do maintenance on the baseball
diamonds. They are not. Um,
moving forward with quite a few of the applications that
we're uh submitted for the last round of funding.
we're uh submitted for the last round of funding they're
changing directions.
Um, but that process was competitive. Um, we went with our
partners all the baseball assoc.
partners all the baseball associations. They know about the
Cubs program we would go to
Cubs program. We would go to our regional managers and say
where are the baseball diamond?
where are the baseball diamonds that have active projects
or act?
or active teams that the facilities are in need?
or active teams that the facilities are in need and let's
encourage them the for the Cubs money.
encourage them the for the Cubs money the baseball
association had to
Submit for them funding we we couldn't do it ourselves.
We needed the baseball team to do it in this case the
school did it?
they went to the Cubs and said we need your help out and do
you get a lot of uh private dollars for other?
part facilities or Park programs
Part facilities or Park programs private know. Um, we
Part facilities or Park programs private know um, we get
the past.
contribute when they fund like dog areas or outdoor Fitness
or something that wouldn't really fall in our spectrum of
yeah. We got to get that done.
yeah, we got to get that done. Can we get from you through
the chair?
the chair a list of the private?
entities that fund the park district and what they
Usually fund that we can.
usually fund that we can sure because maybe some of us can
go knock on some of those.
go knock on some of those doors for our Parks. Yeah privy.
go knock on some of those doors for our Parks. Yeah private
is hard. We I mean, like I said, we don't get very much at
all like we had um,
Yeah, but that'll be a short list. Sure.
Yeah, but that'll be a short list. Sure Alderman Taylor.
Thank you madam chair, so I'm going to for support this
because it's in.
because it's in Alderman Mitchell's War. But what I want to
say is where is the data to prove this Tif dollars that?
all are asking us to spend I feel like sometimes
upgrade Parks without having a clear conversation.
upgrade Parks without having a clear conversation with
without asking the community actually what it wants.
without asking the community actually what it wants and so
I have Washington Park I have
I have Washington Park. I have like 4 Parks Washington Park
didn't ask for a soccer.
uh field
uh Fields, but they're there that's not what the community
asks for and we need to figure out how to Rebrand the park
district because the amount of money that we're spending.
district because the amount of money that we're spending to
upgrade these Parks. We don't know the data of folks who
are actually in those spaces and so
are actually in those spaces. And so and if we're spending
our Tif dollars to help Park,
our Tif dollars to help Parks out, which of course we'll
all do we want to make sure that people are actually in
them and that's not what I'm seeing.
them and that's not what I'm seeing that I'm not seeing
people in the park district somet
people in the Park District. Sometimes y'all keep the same
supervisors 2030 years.
supervisors 2030 years who don't get that the community is
changed and so I want at some point the park district to
come.
come and present to us about what's the plan City
because I feel like y'all pick and choose what parks y'all
actually want to upgrade and do and so there are some
framework going on in Washington Park.
framework going on in Washington Park which all the parks
should be doing framework that that's the park district
should be doing that as a whole.
should be doing that as a whole and we should be doing more
reaching out to communities to ask what actually what they
want to see.
um, I I respect and appreciate um
Um, I I respect and appreciate um Alderman Mitchell saying
this was a park that young people play.
this was a park that young people play baseball young
people do stuff the folks who play baseball in Washington
Park a lot of times. They're not from Washington.
Park a lot of times. They're not from Washington Park. It's
the closest park they can go to
community may or may not.
community may or may not want and so at some point I want
the park district to come.
us as a whole.
us as a whole about. How are we rebranding the park?
the state and the federal level as well.
Thank you.
Thank you madam. Chair. Thank you Alderman Taylor Alderman
Scott.
um, just because I've had
Um, just because I've had a lot of experience in the park.
Um, I I would say that you know, many many.
Um, I I would say that you know, many many parks who
received Tiff
Received Tiff, um and how the park allocate their money to
go to a general.
go to a general fund, uh, for instance.
go to a general fund, uh, for instance, um in the 24th
Ward, we have Riot Fest.
Ward, we have Riot Fest Riot Fest spend 790,000 for a per
permit that does not include.
Security that's not include garbage. Um
Security that's not include garbage, um trash because they
have to pick up their own trash and have their own
security.
security, uh, the Chicago police come out because it is a
big um venue, but it doesn't require Park staff. So, um,
When you affect a park and a community.
when you affect a park and a community at least 55% of that
money should come back to the park and then it goes to the
general fund and so will we have uh, uh,
general fund and so will we have uh, uh conference stations
that can't be used to people that are playing.
that can't be used to people that are playing in the park
regularly if that money was generated for the past 8 years
that Rya Fest has had their fair share in the park, um with
a lot of uh,
community
folks that don't live in the community to say that they
don't want Rye Fest there. But Rye Fest generates a lot of
money for the park.
money for the park, but that money does not come back to
Douglas Park if we can allocate some of that.
Douglas Park if we can allocate some of that money to come
back then we wouldn't necessarily have to use Tiff for
various Parks because that money would be
various Parks because that money will be allocated to the
neighborhoods in which it includes.
neighborhoods in which it includes so suggestion to take
back. Um, I think that you know, they allocate put up 6%
7966 of 790 would do nothing for a park.
any of
Any of our Parks because they they are quite old and you
know.
know Antiquated so, uh, just a suggest
know Antiquated. So, uh just a suggestion that I wanted to
put that on record that something like that need.
happen.
Okay. Thank you.
Okay. Thank you Alderman Lawson.
Thank you madam.
Thank you madam chair. I just wanted to commend um Beth
O'Reilly and my colleague from the Seventh Ward on getting
big money from the Cubs. Um Morgan Wallen played there. I
think last summer.
think last summer and so uh quarter mil is a way to go and
as someone who has had to rely on private donations, uh
understand how challenging it could be and we're fortunate
to have resources like the Cubs for ball fields, right? And
uh, the
uh the Hawks and and and others that that focus on Sports
ironically the only uh baseball diamond in my ward is at
Wrigley Field. I don't have any in the Parks. They're all
just north or south but
just north or south. But um, I think we have to be more
creative about what we talked about private.
creative about what we talked about private dollars as we
talk about changing the way we're using Tif.
talk about changing the way we're using Tif specifically,
um and have a real you know City
um and have a real, you know, Citywide probably focus on
where
We can leverage those dollars. So congrats on this good
project. Thank you. Thank you.
Hearing no other questions motion made by Alder.
Hearing no other questions motion made by Alderman OSHA.
recommending to pass all those in favor signify by saying I
opposed and the opinion of the chair the eyes have it and
this motion will be
uh recommendation will be reported out.
uh recommendation will be reported out at the next city
council meeting item number 5.
council meeting item number 5 is an ordinance concerning an
amendment to the intergo.
amendment to the intergovernmental agreement with the
Chicago Park District for the provision.
Chicago Park District for the provision of
tax increment financing funds for the improvements at
mcguane Park located at 2901 South Pope large.
mcguane Park located at 2901 South Poplar Avenue in the
11th ward, bethl r
11th ward Beth O'Reilly.
Uh again, thank you. Uh, this is uh an amendment to the
agreement for mcwain Park. Um, you've ever been there park
is up great. It's beautiful. It's
is up great beautiful. It's been open for a while. Uh, this
is an amendment to extend the date of the agreement. Um,
if you've ever experienced, uh public Contracting the
closeout period is very lengthy and we um,
closeout period is very lengthy and we um closed out that
contractor this job last May
contractor this job last met um, unfortunately when we went
into sea reimbursement for the final expenses for this
project,
project the department of planning noted that they
not reimburse the park district for El
not reimburse the park district for eligible expenses
because the agreement has expired
so this uh
legislation is extending the
Legislation is extending the grant agreement to get them to
be able to.
be able to pay us the last bit of
fun
Funding um, the Park is open. It's beautiful.
Funding um, the Park is open. It's beautiful as you can see
you can scroll through the
see you can scroll through the photos. It's um extremely
popular. I'm sure Alder.
popular. I'm sure Alderman Lee can tell you it's uh,
it was a very successful project. Uh, we
It was a very successful project. Uh, we just um
Takes a long time to close these.
takes a long time to close these out and the base
agreement.
no longer has that expiration date. Um
agreement. No longer has that expiration date. Um this 1
was tied to the original expiration of the Tif I believe or
maybe not um, and but in any case we need this agreement to
just extend it out, I think
just extend it out. I think on the books, um, it just
received a payment they went through and everything that
was
hammer in the wood before that date was reimbursed and I
think uh to date there's like $400,000 remaining to be paid
on a 5.7 million dollar project.
so that is um what we're doing we can just
So that is um what we're doing we can just scroll through.
This is just where we landed with the project.
This is just where we landed with the project with the
budget. Um, like I said, it's completely open and has been
open for years.
This is just sort of a snafu that we did not.
This is just sort of a snafu that we did not catch the
date. I I want to clear up.
date. I I want to clear up the pending payment. Um, you
said 400,000? Yeah, we got a small 1 from that 8.
said 400,000? Yeah, we got a small 1 from that 800 when I
originally presented this. We got a payment last week,
which
Kind of trees me. Okay. Well, I should have been notified
about that. Sorry.
about that. Okay, sorry hand, okay.
all right Alderman, uh, lee
Thank you chairwoman. Um.
The the park improvements are amazing. I I was predated me.
Um, but um, I we certainly make good use of this park this
park is regularly 1 of our highest util.
park is regularly 1 of our highest utilized parks in the
ward. Um picture on the top right is actually where early
voting um takes place so,
voting um takes place. So, um, you know, we we get a lot of
really great.
really great use out of this. Um, we have programs,
really great use out of this. Um, we have programs here for
uh, our um, Special Olympics athletes that meet here
regularly as well. Um was happy to support the the
extension of the original contract to ensure that the park
district was reimbursed. Thank you. So yeah, we've been
we've been using every single penny of that getting a lot
out of it. Thank you.
out of it. So thank you. Yes nicely. Yeah.
Are there any questions from members of the committee seeing
no questions?
no questions motion made by Alderman kuden recommend?
no questions motion made by Alderman kuden recommending due
pass all those in favor signify by saying.
pass all those in favor signify by saying I opposed in the
opinion of the chair.
opinion of the chair the eyes have it and the due pass
recommendation for this.
recommendation for this will be reported out at the next
city council meeting.
Uh the last 1 from the park.
Uh, the last 1 from the park district is item number 6,
which is an Orden.
which is an ordinance concerning the First Amendment to the
intergovernmental.
intergovernmental agreement with the Chicago Park District
for the provision of tax increment financing funds for the
construction.
construction of Park 599.
construction of Park 599 at 1623 West Edgewater Avenue.
construction of Park 599 at 1623 West Edgewater Avenue in
the 40th Ward.
Okay, here we are. This is for Park 599 um this
Okay, here we are. This is for Park 599. Um, this is a a
new build a new project this
new build a new project. This was uh tied to the
located, uh in the Edgewater Community. It's a smaller.
Park. It's 1.1 acres and its adjacent to the newly
developed Anderson point
developed Anderson Point apartment complex at 5700, North
Ashland.
Ashland Avenue.
uh the housing
Uh, the housing occupies the portion of the site.
Uh, the housing occupies the portion of the site that was
formerly known as the Edgewater Hospital. The park is
located. Just west of the new housing site.
located. Just west of the new housing site between
Edgewater Avenue to the north and Hollywood.
Edgewater Avenue to the north and Hollywood to the South.
the commitment to develop this new
The commitment to develop this new park was included in the
Redevelopment plan and author.
Redevelopment plan and authorizing ordinance that was
passed by City Council on May 23rd 2018 the agreement
specified.
specified that the land and 96000 were to be provided to
the park district for the development of the new park.
the developers obligation have been
The developers obligation have been satisfied and the
project was transferred to the park district.
project was transferred to the park district in february of
23.
So we are obviously you heard in the other housing present.
presentations facing great cost escalation. This was
estimated.
estimated in 2018. Now we're in 2024.
estimated in 2018. Now we're in 2024, um while the housing
site, uh was in development the park district with active
Community input has locked in the site development plan as
you can see it's
you can see, it's pretty basic. There's a walking path.
There's landscaped areas.
There's landscaped areas, uh, picnic tables and benches a
walking path drinking.
walking path drinking fountain ornamental perimeter fencing
and open land and lands open lawn and landscaping.
and open land and lands open lawn and landscaping in 2023
the cost for this plan.
the cost for this plan, uh was costed at 1.4 million.
the cost for this plan, uh was costed at 1.4 million 1.410.
uh, which is a
Uh, which is a 450 dollars increase from the 2018 budget.
The park district is seeking approval to increase.
The park district is seeking approval to increase the Tif
budget to complete the park as obligated in.
Redevelopment agreement.
Um, you can scroll.
Through did you?
Through did you get to the photos that wasn't following
you? Um of what it looks like?
you? Um of what it looks like now? It's uh,
has had
Has had a groundbreaking. Um
but this is
But this is what the park looks like to have those photos.
you don't.
Oh, sorry.
Oh, sorry, it looks really bad. Um.
cyclone
Cyclone Fence bacon lot
um, but uh, there was
quite a bit of back.
quite a bit of back and forth, I believe um,
when this project
When this project was finished on the housing side within
the city making sure.
the city making sure that they had complied with all of the
obligations in the Redevelopment. Um relative.
obligations in the Redevelopment, um relative to vaults and
sidewalks. I just know that really complicated.
Oh shoot. I'm sorry, you know.
Okay, I changed the slide. Um.
Okay, I changed the slide. Um, I didn't give it to them. I
sent it to you didn't send it to me.
Uh, sorry, I don't know how to get it over there.
um
the
The chair had asked me to break out where the new costs
were.
were coming in. That's where it was. But um, so
were coming in. That's where it was. But um so design we um
had an increase of 64,000. The total design is 131. I'm
really sorry. You don't have the slide General conditions.
Uh, we
have an 85,000 budget.
have an 85,000 budget now when it went out to contractor
the construction went from 675 to now the million.
the construction went from 675 to now the million 61.
for the 385,000 increase and um the
For the 385,000 increase and um, the contingency is still
in the budget which we will draw from.
in the budget which we will draw from hopefully we won't
need it and if we we get reimbursed on exact dollars spent,
so if we don't spend it all we don't get the money.
So the increase in the uh, project cost is basically
because the design
became
Became more involved. Is that correct? Alderman cost of
labor cost?
labor cost of all of it actually went out.
Yeah.
Yeah, it's it's still pretty basic. Um, it didn't not
in design. Um, it's still the same footprint. It's still a
walking path and picnic tables. There were no added
elements know.
elements. No, no spray features. There are no
It's passive. It is a passive open space.
Alderman Vasquez
Thank thank you for that. Yeah, if members uh, look at the
current.
current slide, it's always looked like that kidney bean so
it's not really the most complex of designs. It's just been
an increase in the cost. A lot of it was just time spent so
So this is something that uh, my predecessor.
So this is something that uh, my predecessor Alderman Pat
Connor had passed towards the end of the term. Um, there
had been a ton of work at Edgewater what?
had been a ton of work at Edgewater what used to be the
Edgewater Medical Center. It's a process that I think to.
over 12 years to even get that site developed. This is kind
of finishing that up. Um, it would be called.
of finishing that up. Um, it would be called West Edgewater
green. Um, but because it's taken that long. Um, we do know
also the park district had some staff changes that kind of
you know, and I could be a little bit wrong, but so many so
many things come to the
points where
process.
we're taking it because we run the
We're taking it because we run the parks for the city. Uh,
but new construction wouldn't have been.
but new construction wouldn't have been something on our
radar to develop.
radar to develop this site. Um,
Is the park completed?
Is the park completed now know?
Oh, it's not even but it's says it was.
oh, it's not even but it's says it was trained the
developers obligation satisfying the
transferred to the park district. Is that for construction
the land?
title the land
Title the land. Okay, you guys can start now happened in
23. We were committed in 2018. They had to build because
they were staging here then they had to fix the public
infrastructure fill the vaults.
infrastructure fill the vaults do the sidewalks and all of
that all of that wrapped up.
that all of that wrapped up and then
I think was it.
I think was it planning and I can speak to this it was.
I think was it planning and I can speak to this. It was uh
a a cluster once I showed up. So what it
a a cluster once I showed up. So what occurred was.
technically the developer owned the land they
Technically the developer owned the land they had to finish
certain work that the tip had to pay off. They had to check
every single box to get that done to get.
every single box to get that done to get the Tif funding.
They were supposed to be reimbursed for at that.
They were supposed to be reimbursed for at that point the
city had to acquire it from the developer.
city had to acquire it from the developer and then the park
district had to acquire from the city.
district had to acquire from the city that all took
our whole
Our whole first term to get from the beginning of that until
where we're at now. So right now if you look at it, it
looks like a rock.
looks like a rock quarry with what could be a racing track
somewhere in it. It's a it's a mess. And so we're looking
to get this completed.
to get this completed close the chapter on it. So the park
district could focus on Park.
district could focus on Park 600. Uh, that's that's what
we're looking to do 5.
that's what we're looking to do 5.99.
Yeah, I'm saying after this 1's done. They can go get 6.
Yeah, I'm saying after this 1's done. They can go get 6 you
want the next 1? Yeah, wonderful. I'm all set. Thank you.
madam chair. Thank you. I seeing no more questions.
madam chair. Thank you. I seeing no more questions Alderman
Mitchell moves to pass on.
Mitchell moves to pass on this item all those in favor
signify by saying I
in the opinion of the ch
in the opinion of the CH opposed in the opinion of the
chair of the eyes have it and we will report the due pass
recommendation out.
recommendation out at the next city council meeting. Thank
you Beth. Thank you.
Uh item number 7 is from the Department of planning. It's
an ordinance concerning.
an ordinance concerning and Amendment to the Redevelopment
agreement.
agreement with the Chicago cooperative for the provision.
agreement with the Chicago cooperative for the provision of
tax increment financing funds for the rehab.
tax increment financing funds for the rehabilitation of the
building and related Improvement.
building and related improvements at 4620 North Broadway.
the 46th Ward. There is a substitute ordinance which was
prepared and sent electronically.
prepared and sent electronically to everyone. Is there a
motion to accept the substitute so moved by alderman
laspada all those in favor signify by saying I although
suppose, uh, in the opinion of the chair the eyes have it
and the substitute ordinance is
and we'll be explained by Tim Jeffries the man.
And we'll be explained by Tim Jeffries the managing Deputy
Commissioner with the Department of planning.
Development Tim. I do need you to explain the uh change in
the substitute ordinance and then your presentation. Uh, I
yes the substitute for the record Tim Jeffries, man.
Deputy Commissioner in the department of Planning and
Development the
Development The Substitute ordinance just corrects an error
that was
error. That was uh 1 of the 1 of
that was uh 1 of the 1 of the references referred to
section 18.21, which is not exist.
section 18.21, which is not exist in this RDA. It was meant
to reflect section.
to reflect section 18.14. Thank you.
Um, well good morning, uh chair.
Um, well good morning, uh chair chair chair Dao members of
the finance committee again, Tim Jeffries.
Planning and Development. I'm here today to request the
amendment of a previously approved Redevelopment agreement
between the city and Chicago.
between the city and Chicago Cooperative. It would
restructure the financial terms of the agreement in order
to to reimburse the developer.
to to reimburse the developer, uh in advance of the pending
expiration of the Wilson yards.
pending expiration of the Wilson yards TIF district, if
approved dpd, um would immediately move to execute uh the
agreement in order to support the development.
agreement in order to support the development of an
approximately 18,000 square foot grocery.
approximately 18,000 square foot grocery store cooperative.
um, uh Chicago Market, which is doing or Chicago
Cooperative, which is doing business as the Chicago Market
is located at 16 or 4.
is located at 16 or 4620 North Broadway within the Uptown
community area.
community area the Wilson yards TIF district in the 46
Ward.
um the subject property
Um, the subject property highlighted in red is at the
northwest corner of the intersection of Wilson.
northwest corner of the intersection of Wilson Avenue and
Broadway and is the former CTA.
Broadway and is the former CTA station house, uh and is
which is immediately north of the existing.
which is immediately north of the existing Wilson Red Line
Station.
Uh, the building was originally constructed in 192.
Uh, the building was originally constructed in 1922 as the
Station House for the Northwestern elevated Railroad.
Station House for the Northwestern elevated railroad, uh in
this photo you can see the original stairs that led pass.
passengers up to the platform. Uh, it was
in this capacity until 2017. Uh when the CTA opened a new
Wilson Station, uh, immediately across the
remained vacant since that time, uh,
designated a city of Chicago Landmark as a contributing
building.
building in the Uptown Square historic district in 2016.
Uh, the developer of this project is Chicago cooperative.
doing business as uh, the Chicago Market Cooperative
grocery.
grocery store, uh, this the project involves the full
interior.
interior buildout of the space as an 18,000 square foot
full.
full service grocery store operating as a locally owned
cooperative.
Cooperative, uh, Chicago Market assumed possession of the
building.
building as a cold shell so the scope of work includes the
construction.
construction of all required Building Systems including
HVAC electrical.
HVAC electrical and plumbing as well as their business
specific improvements like ref.
specific improvements, like refrigerators, uh, in addition
to the store the project will also include the development
of a kitchen classroom and Studio.
of a kitchen classroom and Studio that will be used for
classes demonstrations and other community.
classes demonstrations and other community uses
Um, I'll note that the Chicago Market.
Um, I'll note that the Chicago Market, um has developed an
extremely strong team around the project.
extremely strong team around the project including 1, um 1
of the country's most prominent grocery Consultants.
of the country's most prominent grocery Consultants storm
Masters, uh to design and build the stores.
Masters, uh to design and build the stores, um, hiring uh
management staff with extensive grocery.
management staff with extensive grocery Co-op experience
and creating an extremely active board.
uh the total
Uh, the total, uh project cost for the construction is an
estim.
estimated 10.7 million, uh this represents.
estimated 10.7 million, uh, this represents an increase of
approximately 2 million since it was a previously
by city council. Um, I will note that the developer has not
requested that the city provide any additional Tif funding
to it and address that increase though.
Uh up to 5.8 million dollars of that budget or 54%
proposed to come from Tiff, uh, the remaining funds
include.
950,000 in equity as well as 3.9 million in lending
financing. Uh, it should be also noted that Chicago Market
is contributing an additional 1 million dollars to the
project in operating costs that are not reflected in the
RDA.
Um, however since the approval of the original
um, however since the approval of the original RDA and
December of 2022 a critical issue has been identified that
necessitates, uh, an amendment to the RDA that requires
Council action, um, specifically the Rd
Council action. Um, specifically the RDA is currently
structured to reimburse the developer with City funds over.
2 payments the first at the issuance of their
certificate of completion and the second a year later at
the anniversary.
the anniversary of the issuance of the certificate.
I'm following Council approval. Uh
delays outside of the developers control. And while these
issues are.
issues are now resolved. They've pushed back the estimated
completion date to the first quarter of 2025 the Wilson
Yard.
yards TIF district. However is scheduled to expire on
December.
December 31st of 2025, which would legally preclude the
city from making the second payment, um in order to
address this dpd is requesting an amendment of the payment
structure.
structure that would provide Chicago market with the the
with all funding, uh, immediately following the issuance of
completion. Uh, this would allow the city to disperse its
funding.
funding prior to the expiration of the fifth district. Uh,
this amendment will modify only that structure of how
city will make its payment and no other changes will be
made to the alloc.
made to the allocation provided or the obligations of the
developer under the RDA including any required Community
benefits.
uh if the amendment
Uh, if the amendment is approved the dpd anticipates the
RDA will be executed.
RDA will be executed as early as April and begin
construction immediately thereafter.
construction immediately thereafter, uh, once complete this
rendering shows what the interior of the space is expected
to look like, uh, I'll note that you can see the former
staircase or stair stairway.
staircase or stair stairway up to the platform and the
design here and it's 1 of the it's 1 of the few features,
uh, historic features that it's being in,
uh, historic features that it's being incorporated into the
overall design of the store.
uh overall dpd is supportive of this of the Chicago Market
of cooperative and this request, uh, the project will not
only increase the resiliency of the Uptown neighborhoods.
Grocery Market, but also provide numerous Community
benefits.
benefits increase Community Based wealth and stabilize the
city of Chicago.
city of Chicago Landmark for all of those reasons dpd
believes the project.
believes the project warrants, uh, this the approval of
this amendment.
Uh, I'd like to thank the committee for your consideration
of this request and I'm joined by Matthew roughy from
Chicago Market team, and I'm happy to answer any questions.
uh, the committee might have
Yes, um.
I would like the uh represent.
I would like the uh representative from the Chicago carpet
to speak. This is the first time I actually have heard of
uh
this operation went to your website.
this operation went to your website and checked it out. Uh
would like to hear your perspective on what you're trying
to do in Chicago.
Thank you very much. Uh for the record Matthew, roughy.
the president and board chair for Chicago Market community.
Cooperative. Um,
thank you for the opportunity.
Thank you for the opportunity to talk about this we were
excited. Uh
excited, uh, you know oftentimes you see Cooperative
grocery stores open.
grocery stores open in food apart Tides or food deserts or
food areas.
food areas such as that Uptown is not exactly that.
food areas such as that Uptown is not exactly that what we
did have a limited uh ability to get
did have a limited, uh ability to get was good food what we
had the limited ability to
we had the limited ability to get was food that stayed
local and was sourced locally right now we have over 90
mus with uh farmers in, Illinois.
mus with uh farmers in Illinois that are going to be
supplying to our
Store, we're also working with other stores both
cooperatives and Nono.
cooperatives and non-operative to help to be almost an
anchor store.
anchor store if if you had a mall you need an anchor store
to help to bring stuff like that in we're really excited to
be able to give Farmers a reason to come to Chicago to
bring their products into Chicago. Uh, we're working with a
great group of farmers down in Pembroke, uh, if you're not
familiar with them, um, absolutely look them up. They're a
group.
group of farmers that need that help and they haven't had
the opportunity.
the opportunity to be able to sell in the city at the
levels that they should they're fantastic farmers. And we
that we think that we can do a lot to help to
elevate them to make sure that we're buying from them at
reasonable rates sustainable.
reasonable rates sustainable rates something that allows
them to have these Farms stay in a multi-generational
state.
separate from
Separate from that we're looking to create 75 jobs in the
Uptown community.
Uptown Community as I think you all know when you spend.
locally more of your dollar stays local and so by being a
community Co-op and if you're not familiar with
cooperative,
we're owned by the community. We're not owned by a
corporation. Um all of the board all of the members.
corporation. Um all of the board all of the members, we're
all volunteer and so all of us do
all volunteer. And so all of us do not receive anything
from these funds. It's just about making this happen.
from these funds. It's just about making this happen in our
community.
So we're really excited to have that.
so we're really excited to have that to have a democratic
solution to a store where actually our purchasing values.
Uh, all of our sustainability commitments are actually
brought to you by the ownership that we have currently we
have about 2400 owners and those owners are
have about 2400 owners. And those owners are all paying do
they they've actually paid in they've bought shares in the
company and they have a voice in it. They elect me they
elect our whole board and they have a say in exactly what
we do so
we do. So we think between what Tim had mentioned with
educational opportunities within the city within that area,
um in our space community opportun
um in our space Community opportunities for them to use the
rooms to be able to use that for fuel
rooms to be able to use that for further education, um, and
then utilizing programs such as having snap available link
match and things of that nature will be a great commitment
to the community and to continue to bring good.
affordable food into our community. Thank you. Do you have
the capacity to uh, look elsewhere in the city?
We do not so we did a EXT.
We do not so we did a extensive search. Uh, we were
initially incorporated in.
initially Incorporated in 2013.
Um, and we did an extensive search in a lot of different
areas. We looked in the areas we we
areas. We looked in the areas. We we were always intended
to be in North Chicago area. Um, but we looked at probably
12 to 13.
12 to 13 different spaces when we found this 1 which both
hit from the level of a size that we needed to be able to
do to really be able to make the difference.
do to really be able to make the difference but also to be
able to work with CTA that it just re read
able to work with CTA that it just re redone this project
gave us this empty shell and it really committed.
gave us this empty shell and it really committed to making
this not just another store that was going to be held by
any I'm sorry.
Chances know the answer is no. Yes. Thank you.
Vice chair Conway you had a
Thank you. Thank you.
Uh, we do have a letter.
Uh, we do have a letter of support from Alderman clay. This
is in her Ward.
is in her Ward, uh, seeing no other questions, uh Alderman
not hopping words.
Thank you chair. I just wanted to also express my support
for this project, and I wanted to thank Matthew.
for this project and I wanted to thank Matthew for being a
great.
great um partner in the community and for showing up.
for many people many events. And uh, I'm I'm just thrilled
to see this.
to see this actually coming together and happening and um,
I'm just happy for you. Thank you chair. Thank you very
much.
much Alderman Cardona recommends do
much Alderman. Cardona recommends do pass all those in
favor signify by saying I
Opposed and the opinion of the chair the eyes.
opposed and the opinion of the chair the eyes have it and
the motion carries and we will make this uh recommendation.
We'll report this recommend.
We'll report this recommendation out at the next city
council meeting.
council meeting item number 8 is an Orden
council meeting item number 8 is an ordinance concerning
and Amendment to the Redevelopment agreement with Portage
Park Capital LLC.
Park Capital LLC for the provision of tax increment
financing Tif.
financing Tif funds for the construction.
of the project
Of the project and related improvements at 365.
Of the project and related improvements at 3657 North
Central in the 30th.
Central in the 30th Ward.
Tim, uh, thank you ciao again for the record Tim.
managing Deputy Commissioner in the department of planning
and development.
and Development. I'll just note that the fact pattern and
the reason for this amendment is substantially similar to
the last item, uh,
the last item. Uh, but this this seeks to the amend
a previously approved RDA between the city and Portage
Park.
Capital LLC, it would restructure the financial terms.
that agreement in order to reimburse the developer before
the pend.
the pending expiration of the Belmont Central TIF district
on December.
on December 31st of 2024.
Uh, the project is located at 3657.
Uh, the project is located at 3657 North Central Avenue and
is within the Portage Park Community area.
is within the Portage Park Community area the Belmont
Central TIF district and the 30th Ward represent.
Central TIF district and the 30th Ward represented by Alder
Ruth Cruise.
Uh, the subject property highlighted in red is located at
the South East.
the south east corner of the Central Avenue in Waveland
Avenue. Uh, the site was most recently occupied by a
Dominic's grocery.
Dominic's grocery store, which closed in 2004 with
subsequently demolished.
subsequently demolished and remained vacant since that
time.
uh, the project involves the Redevelopment of the
Uh, the project involves the Redevelopment of the parcel
into an approximately 12.
into an approximately 122000 square foot mixed-use
development containing 12,000 square feet of ground floor
retail with a self storage facility.
retail with a self storage facility on the upper floors, uh
as stated this project was
uh, as stated this project was originally approved by City
Council in May of 2020. So construction of the of the
project is was substantially complet.
project is was substantially completed in mid 2023.
uh, the total project cost for the the construction was
estimated, uh, 12.5 million including up to 3.3 million in
Tif or 26.5% of the project budget the remaining funds
included.
included 2.2 million in equity and 7 million in
financing.
uh since the original approval of the RDA, uh, as I said in
addition, this critical issue has been identified that
necessitates.
necessitates an amendment to the RDA that requires Council
approval. Um, specifically the RDA is currently structured.
to reimburse the developer with 2 payments. Uh, the first
that the ISS.
that the issuance of the certificate of completion and the
second a year later at the anniversary of the issuance, uh,
follow.
following city council approval. However, the project
experience delays related to co especially Supply Supply
supply chain disruptions and labor.
supply chain disruptions and labor shortages. Um, these
issues have been resolved.
issues have been resolved and the developer is now working
actively working to secure the certificate of completion.
Uh, but the Belmont Tiff Central TIF district is currently
scheduled to expire on December 31st.
scheduled to expire on December 31st of 2024, which would
legally preclude the city from dispersing the second
payment in order to address. This dpd is requesting an
amendment of the payment struct.
amendment of the payment structure that would provide
Portage Park Capital with all uh, funding following the
issuance of the certificate of complet.
allow the city to disperse.
of the Tif.
I'll note that this amendment modifies only the structure of
how the city will make its payment.
how the city will make its payments and no other changes
are being made including to the allocation provided.
are being made including to the allocation provided, uh,
the obligations under the RDA, uh, including construction
compliance or minimum minimum occup.
compliance or minimum minimum occupancy requirements.
uh shown
Uh shown here as the property as it stands today as an
operational business. Um overall dpd is supportive of this
amendment given the fact that the building is already
substantially complete.
substantially complete, uh, and it still required to meet
the terms, uh necessary.
the terms, uh necessary for the city to issue the
certificate of completion.
Um, I'd like to thank the committee for your consideration
of this.
of this request, and I'm also
Portage Park Capital, uh, and I'm happy to answer any
questions you might have at this time.
Okay, uh to reflect.
Okay, uh to reflect accurately Alden cruises, uh position.
on this, this is a legacy project.
on this. This is a legacy project, uh that she inherited
and she has no opposition to this project.
any questions from members of
Any questions from members of the committee?
move to pass uh motion made by Alder
move to pass, uh motion made by Alderman waguespack all
those in favor signify by saying I
all those opposed in the opinion of the chair the eyes have
it and the motion carries.
it and the motion carries the do pass recommendation will
be reported out at the next city council meeting. Thank you
Tim.
item number 9 is an is a proposed order authorizing the
payment of various small claims against the city of
Chicago. It was a direct introduction sent to you electron.
electronically if there are no objections the committee.
will recommend passage in the Omnibus.
item item number 10 is a proposed ordinance denying the
payment of various small claims against the city of Chicago
also a direct introduction.
also a direct introduction and the list of payments, uh was
sent electronically to everyone if there are no OB
the committee will recommend passage in the omn.
the committee will recommend passage in the Omnibus.
Item number 11 is a prop.
Item number 11 is a proposed order authorizing charitable
solicit.
solicitation on the public way tag day permits.
solicitation on the public way tag day permits for miser
ricordea. It's a Citywide.
ricordea. It's a Citywide permit for April 24th. 2024 April
26th. 2024 in AP.
26th, 2024 in April 27th. 2024.
26th, 2024 in April 27th, 2024. Also a direct introduction
if there are no objections.
if there are no objections the committee will recommend
passage in the omn.
um item number 12 is the
Um item number 12 is the communication transmitting reports
of cases.
of cases in which verdicts judgements and settlements.
entered into for the month of februari 202.
entered into for the month of februari 2024. These reports
will also send electronically.
will also send electronically to everyone from the
Department of Law.
and
And if there are no objections, these reports will be placed
on.
on file with the city clerk's office.
item number 13
Item number 13 is are 3 proposed orders.
item number 13 is are 3 proposed orders authorizing The
Corporation Council to enter into and execute settlement
agreements or settlement.
agreements or settlement orders in the following cases the
first case number 13A is the estate.
first case number 13A is the estate of roshad McIntosh
deceased.
deceased by Cynthia Lane the administrator.
deceased by Cynthia Lane the administrator versus City of
Chicago at all.
uh case number 15 seavey 1920
and it will be reported by.
and it will be reported by Carolyn bronsic from the law.
Department. The amount for this settlement is 2.25 million.
Carolyn good afternoon, uh for the record, my name is
Caroline fronsac from the I'm 1 of the deputies.
federal civil rights litigation division. I'm here to
present.
present the the settlement for the state of Rashad mint.
Macintosh deceased by Cynthia Lane administrator versus
city of Chicago.
City of Chicago. It's a case that is presently pending in
the United States.
the United States district court for the northern district
of Illinois. This case arises from a fader fatal officer
involved.
involved shooting that occurred on August 24th, 2014.
her complaint, uh, Cynthia Lane alleges that the shooting
of her son Rashad Macintosh was unjustified.
of her son Rashad Macintosh was unjustified plaintiffs
claims are uh account of excessive force against officer
selector account of monel.
selector account of monel against the city of Chicago for
failure to train on foot.
in a code of Sil
including wrongful deaths, Illinois survival.
including wrongful deaths, Illinois survival act funeral
expenses responding at Superior.
expenses responding at Superior, um and indemnification and
Battery the Law Department recommends a settlement in the
amount of 2.
the amount of 2,250 inclusive of attorney's fees based on
upon the recommendation of Magistrate Judge. She
Finnigan.
on August 24th of 2014 Chicago Police Department gang
enforcement
Enforcement Officers received a tip from a confidential in
informant that 2 men were standing in front of 28.42.
pulk Street armed with handguns next to the building.
this address was a vacant lot that was known to officers.
this address was a vacant lot that was known to officers as
as a gang hangout and Drug spot.
as a gang hangout and Drug spot upon arrivals officers not
noticed about 10 to 12 men standing in front of the lot and
as the officers approached.
as the officers approached Rashad McIntosh who was a 19
year old African-American man whose clothing matched the
description of 1 of the Armed individuals immediately fled
through a gang.
through a gang way to the backyard of the residents while
holding his side in a manner indicating. He was carrying a
gun.
gun officers then ran after mint.
residents according to officer schlecter. He then raised
the gun and pointed it at officer selector in fear of his
life officer selector.
life officer selector fired 3 times Macintosh was hit once
in the shoulder and once the in the chest Macintosh was
handcuffed.
handcuffed and ambulance was called the silver 9 millimeter
hand.
handgun, which was loaded with live rounds of ammunition
was recovered from the porch lying near Macintosh.
plaintiff's theory of this case. Is that Rashad Macintosh
was on the 2800 block of West pulk with friends when a
group of police?
group of police officers including the defendant approached
in multiple vehic?
in multiple vehicles, um, according to the plaintiff
without provocation and for no reason the officers jumped
out of their car.
out of their car as immediately Drew their weapons and
pointed them at the group.
pointed them at the group Macintosh ran from the officers
because he was scared. Um, he was cornered on the back
porch and after,
porch and after the officers ordered him to do so he walked
out.
with his
With his hands up Palms open and facing forward.
Lane to will argue that even though Macintosh was clearly
surrendering to the officers Officer selector shot him
multiple times.
multiple times playing to fully use the lack of
fingerprints and DNA on the weap.
fingerprints and DNA on the weapon allegedly possessed my
Macintosh.
Macintosh that um, that will approve
Macintosh that um that will approve according to plan up
that it was not his gun and that someone planted it on the
scene after the shooting.
also makes a monell claim against the city of Chicago which
in which Squall which excuse me, which
in which Squall which excuse me which Falls squarely within
the time frame of the doj and Pat.
the time frame of the doj and patf investigations against
the Chicago Police Department.
the Chicago Police Department L before rely heavily on the
conclusions in both reports to establish. The city has
failed to adequately trained its officers on foot Pursuits
and maintain a Code of Silence.
a video from the front of the location prompted Copa to
open an investigation against 1 of the officers that
responded to the scene officer.
responded to the scene officer Sam for giving a false
statement to ER.
statement to era and in Discovery in the civil case because
these statements were inconsistent with the video officer
Sam.
Sam did not have the video at the time he gave his a
statement and he has since admitted that the sequence of
events has described in that.
events has described in that statement was inaccurate but
never nevertheless.
never nevertheless maintained that he saw Macintosh with a
weapon off.
weapon officer Sampan was standing in front of the building
and claimed that he observe.
and claimed that he observed. Uh, Rashad McIntosh pointing
a gun.
a gun at uh officer selector, but we now know from the
video that officer officer Sampan was never in a position
to observe those things.
Copa sustained the charges against Stampin and recommended
in October 2019 that he be terminated for giving false
statements in the shooting incident and his original
statement to Coppa and in written Discovery in this case,
and it is deposition the Chicago Police Department agreed.
The matter was sent to the police board.
The matter was sent to the police board and officer Sam Pam
resigned prior, uh to the hearing on those charges. There
are also 3 alleged eyewitnesses to the shooting.
All 3 months that they said that they were playing cards at
a table and that they did.
a table and that they did not observe Macintosh with a gun
and that he was shot while surrendering a fourth witness
who originally told detectives and an assistant States
Attorney on the night of the shooting.
Attorney on the night of the shooting that he saw McIntosh
with a gun has since Rec
with a gun has since recanted
therefore the city recommends in this case the arrest
settlement in the amount of 2.
settlement in the amount of 2,250 dollars.
Vice chair Conway just was was officer.
Vice chair Conway just was was officer stamp and 1 of the
shooters or no. No.
and was a
And was a gun, uh recovered at the scene. Yes.
um based on the the the uh test
Um based on the the the uh, testimony or the 2 officers in
the gun recovery. I'd be asked to be uh,
the gun recovery. I'd be asked to be uh recorded as of now
on this. Thank you.
What did you say? I didn't hear you? Yeah, I said.
What did you say? I didn't hear you? Yeah, I said based on
the uh, the the 2 officers.
the uh, the the 2 officers who were the shooters and their
testimony of the imminent danger that they were in as well
as the recovery of the gone from the plaintiff offender.
Uh, I would ask you to be recorded as a no on this. Okay.
Thank you.
Thank you to clarify. There was only 1 officer. That was a
shooter.
But he was chased by 2 officers.
But he was chased by 2 officers, correct?
alderman, pisado
Thank you madam. Chair good afternoon to you and good
afternoon to my uh Alder stalker repeat out there. Um
question Caroline, um,
um, this was a gang hangout where this incident happened
at.
the the hear you say earlier.
uh, according to the police offic
Uh, according to the police officer's testimony. Yes.
okay, and
Okay, and I didn't ask in in the briefing but was this was
this an area that you we got frequent calls about 911
calls, you know.
calls, you know, I have no idea. Okay. All right, and the
witnesses that um witnessed the shooting I know.
witnesses that um witnessed the shooting I know you said
that I believe they were playing cards where they were
friends of his where they were strangers where they found
the street. Um, can you give me some clarification on that
on the 3 Witnesses? That's
on the 3 witnesses that saw the shooting? Uh, I based on my
information. They I don't believe they they were friends
with him. However, they did know.
with him. However, they did know of the decedent.
okay, uh
All right. Oh and lastly and in the officer got no time for
this, right? No, if red did not suspend them or
correct?
Thank you. Thank you madam chair. Thank you. Alderman
Alderman Waggers back.
Um, who are the plaintiffs attorneys on this? This is um,
Andrew stroth, uh, I believe
Andrew stroth. Uh, I believe Tony romanucci romanucci and
Blandon and heart Aldrich. There's 3 different plaintiffs
terms on this case.
And what why were there 3 different?
And what why were there 3 different uh firms wait 3
different attorneys or 3 different?
different attorneys or 3 different firms. I think those 3
different firms 3 different plaint.
different firms 3 different plaintiffs firms. I don't know
why they decided to
they all well, I can't ask you really they're splitting up
the the
settlement
Settlement I'm assuming I don't know what they're doing
with the settlement.
Okay chairman. Can we have a roll call vote on?
Okay chairman. Can we have a roll call vote on this 1?
uh you asked
Uh, you asked for a roll call. We'll take a roll call. Um
wanted to ask, uh, the just want to be clear.
wanted to ask, uh, the just want to be clear the
settlement, uh was um suggested by a judge or the
magistrate. Yes. We attended set several settlement.
conferences on this case. Ultimately judge magistrate f
Finnegan made a recommendation on this case, which both
parties except
parties accepted.
Thank you. Okay calling the roll.
Alderman Conway
alderman laspada
Alderman Hopkins
Alderman Hall
Alderman Mitchell
Alderman Harris
Alderman Beale Alderman Lee
Alderman Ramirez Alderman Quinn
Alderman Lopez Alderman Moore
Alderman Curtis
Alderman OSHA
Alderman Taylor
Alderman Mosley
Alderman Rodriguez hi
Alderman Scott
Alderman CEO Lopez
vice mayor brunette
alderman
Is this the settlement?
Yes.
Yes, this is um McIntosh mint.
Yes, this is um Macintosh Macintosh. Oh, yes.
Alderman Talia Farrell
Alderman Cardona
Alderman wag
alderman waguespack
Yes, okay Alderman Rodriguez.
Yes, okay Alderman Rodriguez Sanchez.
I want to count you towards Quorum. Did I count you toward?
scorpion? Okay, Alderman Ramirez Rosa.
Alderman V
Alderman vagus
Alderman mitts
I
Alderman Spa
Alderman Vasquez
alderman
Alderman Reilly
alderman kud
Alderman Knudsen
Alderman Martin
alderman silverstreet
Alderman Silverstein. Yes.
chairman dowels a yes
the item passes committee by a vote of 2145 against uh, we
will report this out at the next city council meeting.
Thank you very much Caroline.
the next uh
settlement 13
Settlement 13B is Rodriguez versus Guerra?
settlement 13B is Rodriguez versus Guerra at all case
number 18c
number 18 seavey 7951 in the amount.
number 18 seavey 7951 in the amount of 5.5 million we will
have this.
have this settlement report from uh
Deputy Corporation Council Jessica Felker
Good afternoon.
good afternoon, uh as the chair said I'm Jessica felger.
I'm deputy.
I'm Deputy Corporation Council for FC RL, and I'm here to
present.
present Ricardo Rodriguez versus guava at all. And the law
department is recommending a settlement of 5.5 million in
this reverse conviction law.
this reverse conviction lawsuit.
This lawsuit was filed on December 3.
This lawsuit was filed on December 3rd 2018 plaintiff for
cardo rod.
cardo Rodriguez claims that he was wrongfully convicted the
the 1990 M 1995 murder of Rodney.
the 1990 M 1995 murder of Rodney campen as a result of
former, Chicago.
former Chicago Police or he claims that he was wrongfully
convicted as the result of former Chicago Police.
convicted as the result of former Chicago police officers
fabricating evidence withholding exculpatory evidence.
fabricating evidence withholding, exculpatory evidence and
charging Rodriguez maliciously.
charging Rodriguez maliciously and without probable cause
there's also a monell claim pending against the city.
the murder
The murder of Mr. Campen occurred at approximately 1:30
a.m. On December 6th 1995.
He was in front of an apartment building.
He was in front of an apartment building in Humble Park
near Humble Park talking with.
near Humble Park talking with his friend when he was
killed, but in a drive-by.
killed, but in a drive-by shooting a week later Rodriguez
was arrested.
was arrested on an unrelated charge which was eventually
dropped according to reports Rodriguez became a suspect.
because an anonymous caller spoke to defend.
because an anonymous caller spoke to defendant Ronaldo
guava and asked if Rodriguez who was then in custody was
being charged with a fatal.
being charged with a fatal shooting of Mr. Campen.
and then
And then Mr. Or then wa claims a confidential informant
told him that Rodriguez.
told him that Rodriguez was bragging about the committing
the murder.
the murder Mr. Kampen's friend. Who was an eye.
the murder Mr. Kampen's friend who was an eyewitness to the
shooting was shown a photo array where he thought Rodriguez
looked like the shooter, but then later.
looked like the shooter, but then later positively
identified Rodriguez in a live lineup.
another Witness
another witness who is almost shot during the drive by was
reported as a ten as tentatively identifying Rodriguez in a
photo array and then also positively identifying Rodriguez.
in a live lineup Rodriguez was subsequent.
in a live lineup Rodriguez was subsequently charged.
at the 1997 bench trial both of those witness testified as
well as guava and Rodriguez was found guilty.
and the years after the trial
And the years after the trial Rodriguez challenged his
conviction slowly obtaining.
conviction slowly obtaining affidavits. He used to support
his case.
his case the witness who had himself been shot at signed 2
a Davids recanting his identification and and then alleging
in the second affidavit that guava told him who to
identify.
That witness is now deceased.
That witness is now deceased and he was not deposed in this
matter.
Rodriguez's mother and sister also signed affidavits
Rodriguez was home with them at the time of the murder.
They said that Rodriguez was on the couch at about 10.
They said that Rodriguez was on the couch at about 10:30 or
11 and still there when they woke up.
11 and still there when they woke up the sister claims that
she would have heard.
she would have heard a door opening had he left during the
night.
A new witness also came forward and claimed he saw.
shooter who he said was a black man and not rodrig.
shooter who he said was a black man and not Rodriguez. He
also said that a black police officer came.
also said that a black police officer came to him and told
him to leave the scene.
Mr. Kenan's Friend however, still stands by his ident.
identification as read re of Rodriguez as the shooter.
In 2018, the state's attorney.
in 2018, the state's attorney agreed to vacate Rodriguez's
conviction and he
conviction, and he was released after 22 years in custody.
Rodriguez petitioned for a certificate of innoc.
Rodriguez petitioned for a certificate of Innocence, but it
was opposed by the state's attorney in the court denied.
was opposed by the state's attorney in the court denied it.
in this lawsuit Rodriguez claims
In this lawsuit Rodriguez claims that he is innocent that
he has an alibi that no physical.
he has an alibi that no physical evidence ties him to the
crime and the guava
crime and the kava who asserted his Fifth Amendment
privilege not to test.
privilege not to testify in this lawsuit and hasn't been
accused of framing.
accused of framing dozens fabricated the anonymous tip and
the confidential informant and coerced the witnesses to
ident.
identify Rodriguez Rodriguez believes. He was framed
because of War's personal animus towards him.
The defense in this case is made difficult because guava is
not testifying and he is asserting the Fifth Amendment.
Unfortunately his partner.
Unfortunately his partner in this investigation Earnest
Halverson.
Halverson who would have had knowledge of the events is
deceased.
deceased and so he cannot provide any of the allegations.
also others who would have had their calm who others who
have had their convictions overturn.
have had their convictions overturned and claimed to have
been framed by guava will likely be permitted to testify
against guava in this case.
a 5.5 million
A 5.5 million settlement is fiscally prudent. The settlement
would be much.
would be much less than the 22 to 44 million in damn.
Rodriguez will likely seek a trial.
if
If you wins, then he will also be entitled.
If you wins, then he will also be entitled to attorney's
fees. We estimate that through trial.
fees. We estimate that through trial plaintiffs attorneys
fees would likely be 3 to 4.
fees would likely be 3 to 4 million.
the judge
The judge like the previous case the judge in this case
after a settlement.
after a settlement conference recommended the parties
settle at 5.5 million and that settlement was accepted by
both.
both parties.
The city will also avoid further outside outside outside
Council fees.
Council fees if this sentence now, so summary judgement and
expert briefing will move forward if this doesn't settle
and then trial that could result in.
and then trial that could result in an additional 1.5
million in
million dollars in outside counsel fees.
the Law Department
The Law Department therefore recommends settlement in this
case.
Open to questions now. Thank you, Miss Falcor.
Open to questions now. Thank you. Miss Falcor. I want to
First acknowledge Alderman nent who is not a member of the
committee, but is here.
committee, but is here as well. Any questions on this 1
almond Vasquez? Yes. Thank you very much. Um, this is a
pretty challeng.
pretty challenging 1 for me to hear um at settlements.
I just had a couple questions. Um,
Where is Officer govar now?
Uh, he's retired and living in, Texas.
uh, he's retired and living in Texas is he is he collecting
uh any pensions from the city? What's that look like
uh the pension
uh, the pension board would able be able to tell you
definitively but it's been reported that he is. Yes.
Um, next question I have is how much has the city paid out
thus far for anything related to go?
We've settled 2 other cases.
We've settled 2 other cases and we've gone to trial and 2
other cases. Um, the the total for those cases.
other cases. Um, the the total for those cases is
approximately 55 million dollars.
approximately 55 million dollars, um in what we paid or in
what was awarded or what we settled for I
what was awarded or what we settled for. I will tell you
that about $4 million was covered by our insurance policies
just to be accurate. Okay? Thank you for that. I think I
think what's really challenging for me is in um,
understanding uh, and seeing in the news.
understanding uh, and seeing in the news like the what
currently is happening Mr. Rodriguez.
currently is happening Mr. Rodriguez and the cases for home
invasion and kidnapping. Um, and then thinking about the
amount of money we're paying out because
amount of money we're paying now because of 1 officers
amount of money we're paying now because of 1 official on
the force when we bring up police.
the force when we bring up police accountability cases and
the costs of what is incurred by officers who shouldn't be
on the force. This is an exact example of what we talked
about.
about and why I would love to hear for the fop or other
officers to say, this is not somebody should
on the force because we are paying
not only
Not only in the cost that we have to pay in settlements. We
see about 100 million per year. If not more it's also
cost in public safety because there's individuals who
should be held accountable. That could be well on the
streets.
streets and currently have cases going on due to the lack
of folks.
of folks having the Integrity when they have a badge on to
do the work, so I will be in support of the settlement.
do the work, so I will be in support of the settlement, but
I want to make sure that people are clear about why
here in the first place because when we talk about police
accountability, it's not being anti police or anything.
It's about examples.
It's about examples like officer gavara who's currently
right now.
right now retired in Texas collecting money. Thank you very
much.
Thank you. Uh Alderman Vasquez Alderman Lee
thank you madam, chair, um just to follow
Thank you madam, chair, um just to follow along Alderman
Vasquez is a questioning are.
Vasquez is a questioning. Are there any um, are there any
other pending cases?
other pending cases for guava?
Yes, there's 33.
Yes, there's 33 other pending cases against uh Ronaldo guv.
guara.
Calling me to know thank you.
and others with more to come
uh
any other questions on this 1 almond Taylor?
What relationship do y'all have with?
What relationship do y'all have with the pitching board? How
does that even work because I'm confused.
does that even work? Because I'm confused on how somebody
still get a pinching and you said 33?
still get a pinching and you said 33 cases correct? The law
department is not the pension board. It's completely
separate entity. Um, they they follow the law.
separate entity. Um, they they follow the law as their
obligated to so I I can't answer questions for them.
Oh, I didn't expect you. Should I my question was?
who talks to the law who talks to the pension board because
I'm confused on how he has 30. You said 33.
I'm confused on how he has 30. You said 33 33 lawsuits that
we are.
we are either cases pending or we pay for correct?
I'm I'm confused how people still get their pensions.
I I'm I'm so confused. I I understand.
I I'm I'm so confused. I I understand they're following the
law and what they're required to.
law and what they're required to do. Um, I believe the
this I again I'm not an expert but I believe the only
reason that they can take away a pension at this time.
reason that they can take away a pension at this time by
Illinois Law is if somebody is convicted of a felony
arising out of their scope of employment or while they're
arising out of their duties bevara has never been convicted
of a felony again. I am not an expert on that so
of a felony again. I am not an expert on that. So the
pension board might have more to say, but that's my
understanding.
Thank you.
Uh, seeing no other questions.
Uh, seeing no other questions I have can I get a motion to
move due pass on this item?
So moved by Alderman Vasquez recommending to pass all those
in favor.
in favor signify by saying I I all those opposed and the
opinion of the chair of the eyes have it. The due pass
recommendation will be reported out at the next city.
council meeting.
Thank you very much. You you guys.
our last settlement
uh agree
Uh agreement is uh 13 C.
Uh agreement is uh, 13c Nathan Jones a minor.
Uh agreement is uh, 13c Nathan Jones a minor by his
guardian and mother Erica Boyd.
guardian and mother Erica Boyd versus City of Chicago at
all.
case number 2022 l 0001735 in the amount of
Case number 2022 l 0001735 in the amount of 45 million we
are.
are joined by uh, Deputy Corporation C
are joined by uh Deputy Corporation Council Margaret Mendon
Hall Casey to give us the particulars of this case.
Thank Casey. Thank you chair and good afternoon committee
on finance.
on April 10th of 2021 Chicago police officer Perez
attempted a traffic stop on a Volkswagen for a disregarding
a stop sign.
the Volkswagen disobeyed officer prez's signals to
officer pressured the volkswage
officer pressured the Volkswagen at a top speed of 67 miles
per hour.
per hour before turning off his Emergency Equipment and
slowing.
slowing down his car.
second Slater the Volkswagen continued into the
intersection of grand and Damon disregarded a red light.
intersection of grand and Damon disregarded a red light and
crashed into a Toyota.
as a result of the crash Nathan Jones a 15 year old
passenger in the Volkswagen was rendered permanently and
totally disabled.
totally disabled claiming 24/7 care for the remainder of
his life.
the plaintiff alleges the city through officer Perez was
willful and wanting in its Pursuit.
the Department of Law recommends settlements in the amount
of 45 million with 25 million paid by the city's excess
insurance.
insurance carriers and 20 million dollars paid by the city.
of Chicago.
off
Officer press was on patrol around 8:00 p.m. When he saw a
Volkswagen driven by a kilo rags.
Volkswagen driven by a kilo rags and occupied by the
plaintiff Nathan Jones.
the Volkswagen disregarded stop signs that Heron and Erie
while on Wood Street
officer Perez activated his lights and Sirens to
Officer Perez activated his lights and Sirens to perform a
traffic stop.
the Volkswagen
The Volkswagen continued on wood and officer, press
exceler.
accelerated to catch up.
in the process
In the process Perez failed to stop for stop signs at area.
and Ohio while on wood.
the vol
the Volkswagen in turn on to Grand from wood
the Volkswagen proceeded to accelerate and officer Perez
followed accelerating up to a top speed of 67 miles per
hour.
second after the officer exting
Second after the officer extinguishes extinguished his
emergency lights.
emergency lights and began to slow down the Volkswagen.
drove through a red light at Grand and Damen.
drove through a red light at Grand and Damen and crashed
into a Toyota with the right of way.
about 1 minute pass between officer per
About 1 minute pass between officer Perez initially seeing
the Volkswagen commit the traffic.
the Volkswagen commit the traffic infraction and the
accident.
body worn camera and pod footage capture portions of
Body worn camera and pod footage capture portions of the
pursuit there is no in-car.
pursuit. There is no in-car camera footage of the pursuit.
officer Perez arrested the driver Khalil r
Officer Perez arrested the driver Khalil rags and recovered
a handgun from the Center Council.
in total 5 occupants were in the
In total 5 occupants were in the Volkswagen while some
passengers init.
passengers initially filed litigation. Those lawsuits have
all been.
all been dismissed except for Nathan Jones's.
Kalo Rags the fleeing offender pled guilty to reckless
driving and gun charges and has completed his 3-year
sentence. Rags is a name party in this lawsuit.
sentence Rags is a name party in this lawsuit the Court
ruled that a jury cannot hear.
ruled that a jury cannot hear evidence about the recovered
gun.
officer prezes Sergeant lie
officer prezes sergeant lieutenant and Commander all found
the pursuit violated the general orders.
Nathan suffered a traumatic brain injury as a result.
Nathan suffered a traumatic brain injury as a result of
this accident.
following a 6 week
Following a 6 week hospitalization. He went to Shirley Ryan
ability.
ability lab for 4 months.
Nathan was discharged from Shirley Ryan in October of 20.
and went to a nursing home for 5 months.
in March of 2022 he left the
In March of 2022. He left the nursing home and went to live
with his family.
Nathan is nonverbal cannot dress or bathe independently and
requires.
requires assistance for all activities.
He wears diapers and is fed through a feeding tube.
Nathan's family is his primary.
Nathan's family is his primary caregiver thus far
approximately.
approximately 2 million dollars has been expended on
Nathan's Medical Care.
Nathan's physic
Nathan's Physicians from Shirley Ryan and Stroger believe
his condition will not improve and that he has a normal
life expectancy.
Nathan's expert Dr. Shepard opine his permanent physical
and cognitive injuries.
and cognitive injuries required 24/7 nursing care for the
remainder of his life.
Dr. Shepard believes Nathan has a normal life expectancy.
Dr. Girone Nathan's expert Life Care planner believes
Nathan requires 24/7 nursing care for the remainder of his
life.
Dr. Why
Dr. Yarone believes Nathan will have a normal life
expectancy.
expectancy living until about 2074.
the largest expense in the Life Care
The largest expense in the life care plan is Nursing Care
at approximately.
at approximately 60000000 a year.
plaintiffs experts opine that Nathan's future Medical Care
will cost approximately 42 million.
Thus Nathan's alleged.
Thus Nathan's alleged Total Medical Care including both
past and future care is valued at.
past and future care is valued at 44 million.
given the injuries and potential medical damages the
Department of Law notified the city's 6 access insurance.
carriers.
departments who evaluated this case thoroughly?
the 6 excess carriers and their retained attorneys reviewed
the evidence and agreed with the city's decision to settle
for 45 million by paying more than half of the settle.
for 45 million by paying more than half of the settlement
at 25 million.
There's a significant likelihood that the city will be.
found guilty and assess a portion of the fault concerning
this accident.
The jury will likely.
The jury will likely a portion fault between the city and
Khalil rags.
Khalil Rags. However a party found responsible for any.
percentage of faults under Illinois Law.
percentage of faults under Illinois Law is responsible for
all of a plaintiff.
all of a plaintiff's claim medical expenses.
Therefore if the city is found even 1% responsible.
Therefore if the city is found even 1% responsible under
Illinois Law the city must pay all of Nathan's medical
expenses.
Nathan's pass and future medical expenses are Valu
Nathan's pass and future medical expenses are valued at 44
million.
if the
If the city is found even 1% responds.
If the city is found even 1% responsible, it will likely be
required to pay at.
required to pay at least 44 million.
in addition to Medical damages
plaintiff is also seeking damages for past and future.
and suffering and past and future loss of normal life.
damages, which the plaintiffs allege are valued at over
million dollars
PL
plaint
alleges this case is valued.
Alleges this case is valued again at over a hundred million
dollars and after nighat.
dollars and after negotiation with a judge.
the city settled for 45 million
roughly Nathan's alleged medical expenses. The city is
self-insured up to 20 million dollars therefore 25 million
will be paid by the city's excess insurance car.
will be paid by the city's excess insurance carriers in 20
million dollars will be paid by the city.
No.
All right any questions from members of the committee?
All right. Any questions from members of the committee
Alderman wag is back.
Thank you chairwoman. Uh first question is, um, I didn't
see too many facts about what happened to the driver of the
Toyota.
in terms of the driver
In terms of the driver of the Toyota.
Um, they did not file they did not.
Um, they did not file they did not file litigation in in
this matter. Um, they there were 2 individuals inside of
the vehic.
the vehicle, um, 1 individual alleged what we call soft
tissue injuries. Um,
tissue injuries, um a sore neck a sore back, um another
individual inside of the Toyota did claim. Um,
individual inside of the Toyota did claim, um more
substantial injuries, however, um the occupants of the
Toyota did not file litigation against the city of Chicago.
Did they file against rags?
the driver of the
The driver of the other vehicle to to my knowledge. No.
so, oh, well, that's very interesting that they
So, oh, well that's very interesting that they basically
there must have been was there damage to their vehic.
there must have been was there damage to their vehicle.
There was damage to their vehicle.
There was damage to their vehicle and um both of the
occupants. Um,
occupants, um had varying degrees of of of injuries that
the record reflects that um, however, I do not know what
would have influenced their decision here. Um, I do know
that they did not file a lit.
that they did not file litigation the only litigation
pending against the city of Chicago.
pending against the city of Chicago from this incident, um
is pertaining to Nathan Jones at this point and did their
insurance get involved at all or nothing.
uh in terms the insurance for um, the Volkswagen Toyota
drivers or both actually the Toyota and the Volkswagen.
drivers or both actually the Toyota and the Volkswagen as
to the Volkswagen. Um,
to the Volkswagen, um there to my knowledge and the
evidence in the record is that there was no insurance for
that Volkswagen if there was insurance.
that Volkswagen if there was Insurance those policies are
normally capped at about as you know Alderman would
nominal in this case, um in terms of the the occupants of
the Toyota I'm I'm not certain as they did not file
litigation and there are no allegations that the Toyota was
responsible for the accident.
responsible for the accident, um, the evidence in the
record reflects that the Toyota had the right of way at the
time of the accident. Okay? Um, how far did the pursuit
vehicle go the Volkswagen after uh off?
vehicle go the Volkswagen after uh officer Perez turned off
his lights.
his lights and stopped the pursuit the evidence in the
record is that um,
approximately a block um pass or the let me rephrase that
the evidence in the record is that
the evidence in the record. Is that a there was
approximately a block between um officer Perez
extinguishing.
extinguishing his emergency, uh, signals and beginning to
slow down and the accident occurring
and that block is um
I mean when you looked at that block.
I mean when you looked at that block, uh, could they have
seen?
seen the police officer?
extinguishes lights
or was there any was there any video evidence from?
intersection? So I I think the question that you're
getting.
at Alderman here is the the the inquiry around.
at Alderman here is the the the inquiry around proximate
cause um, if
cause um if the officers extinguished their lights
began to slow down, how can the plaintiff prove or how
would the plaintiff?
the plaintiff attempt to prove that the city was a
proximate cause of?
proximate cause of this accident? Um, I'll talk a little
bit about the pro.
bit about the proximate cause jury instructions um in
Illinois, so the proximate cause jury instructions ref.
that if um a party is a um, if the party is a cause of the
accident, um, if the party um contributed to the accident
then the project can be found to be approximate cause so
in Illinois a party can be found to be a proximate cause
even if they weren't the greatest
this cause even if they weren't the most recent cause
even if they weren't the largest cause um in Illinois and
we've seen this play out in a number of our our our
lawsuits and our litigation if a party is even found to be
really 1 Link in that chain.
really 1 Link in that chain of causation. Um, then a jury
can find that a party is a proximate.
can find that a party is a proximate cause and in this case
as I previously mentioned if the city is found even 1%
responds,
responsible under Illinois Law, um, the city would be
responsible for all of the plaint.
responsible for all of the plaintiffs medical bills, and
that's not even talking about claims that will be made for
loss of normal life past and future pain and suffering past
and future so that is
and future. So that is why we are making the recommendation
of the the settlement in this matter when you do the um
dterm
determination of that, uh, contribute contributing fact,
determination of that, uh, contribute contributing factors,
um, can you argue that it is uh an insignificant portion.
For proportion of what? Um
for proportion of what um contributed to the
accident at that point
sure, so if if we were to try this case if we were to
proceed to try we certainly would argue that.
proceed to try we certainly would argue that the
sole cause of this accident is
Sole cause of this accident is uh Khalil rags in in his bad
driving.
bad driving. Um, but we're making this recommend
because that that argument as I've said earlier is not
likely.
likely to succeed I even I have the proxim
likely to succeed. I even I have the proximate cause your
instructions here and I can read that to you for
instructions here and I can read that to you verbatim
Alderman and just before you do that. So there's
difference between going to trial and arguing that versus
you settling that
I'm sorry. I don't quite understand the question you you
mentioned that if you went to trial.
mentioned that if you went to trial you would argue that
but you're not going to trial. So you're
but you're not going to trial so you're not taking on that
position.
the a proportion of of um
What the um.
What the um, Mr. Rags would be held accountable for oh.
am. I I think I understand the question. Um, I I I
certainly think that Mr. That kylo Rags, um that there is a
portion of responsibility in the accident on kilo rags.
also know under Illinois Law when we're talking about
medical expenses if the city is found,
medical expenses if the city is found even 1% responsible
we are
We are responsible for all of the medical injuries 44
million. So while there could be an argument and perhaps
even a successful argument that Rags is also
responsible
Responsible. Um, I do not think that a as we call Soul
proximate cause argument or saying that Rags is 100%
responsible. Um,
responsible, um that there is a significant chance of
success.
success on that such that its it merits taking a a case to
trial that could place a city at Expos.
trial that could place a city at exposure of 100 million or
over dollars.
Could you go ahead and read that?
could you go ahead and read that sure, of course, so
approximate cause and this is from uh, the Illinois pattern
jury instruction.
jury instructions, um, which really set out the
instruction.
instructions that parties are generally allowed to give to
juries when they're considering particular issues of law.
juries when they're considering particular issues of law
for proximate cause the instructions says when I use the
Expression proximate cause I mean a cause that in the
natural or ordinary course of events produce the plaint
plaintiff's injury it need not be the only
plaintiff's injury, it need not be the only cause nor the
last or nearest cause it is sufficient if it combines with
another cause resulting in the injury if you decide that
the that a defendant was negligent or in this case will
form
Form 1 is a standard and their willful and want and
was a proximate cause of the injury to the plaintiff. It is
not a defense.
not a defense that something or someone else may have been
a cause of the injury.
however, if you
However, if you decide that the defendant's conduct was not
a approxim.
a proximate cause of the plaintiff's injury then your
verdict.
verdict should be for the defendant. So as we can see here
it lays out that um,
it lays out that um proximate cause doesn't mean um doesn't
mean or there can be more than 1 proximate cause
something can be approximate cause if it's not the last
cause if it's not the greatest cause if it combines with
another cause to lead to the injury and that is why in this
case the Department of Law is
case, the Department of Law is recommending settlement for
plaintiff's
plaintiffs medical bills, because if we go to trial we're
at exposure of medical bills pain and suffering past and
future loss of normal life past and future which
plaintiff has valued at over 100 million dollar.
plaintiff has valued at over 100 million dollars.
Excuse me. Um, sir you cannot.
Excuse me. Um, sir, you cannot address the committee. This
is a committee meeting the public.
is a committee meeting. The public is not in part of this
delibr.
deliberation.
Alderman wag is back.
Um
I think I think that answers my questions chairwoman. Thank
you. All I had uh, I think this ties into vehicle Pursuits
in general and if this is the direction that we
you know as we hear more of this, um, you know, if that if
the policy then is tied into this proximate. Um,
connection to any vehicle Pursuit we are essentially saying
we cannot pursue any vehicle.
in the
In the future. I mean is that kind of the direction that
we're going then because any officer whoever turns on
lights now or starts a Pursuit.
Turns them off something else.
turns them off something else happens, um within that
engagement even even not proximate and this case you were
they were already a block away before.
they were already a block away before anything happened and
I understand you know the the argument there but
I understand you know the the argument there, but is this
leading into a the stronger know?
leading into a the stronger? No chase policy.
Alderman, um
I don't think it's the beginning of excuse me, Mr.
Hendricks. Could you please identify yourself for the
record? And that's my last question? I'm sorry. I I'm John
Hendricks. I'm the managing Deputy for litigation.
overall, um
first I
First I I I would.
suggest if you've got some
Suggest if you've got some other questions, we'd be happy
to take those.
to take those off of public meeting. Yeah, so I was going
to say you don't have to answer if it's related to uh that
strategy issue. But but what I did want to want to comment
on your question because I think it's an important 1
that
the jury instruction
The jury instruction is not new and the find.
liability are not new. What's
liability are not new what's really new in this case is the
signific.
significant injury.
So I don't think that.
so I don't think that this case sets, uh a new standard in
terms of liability or potential liability. Um,
but I do think it's concerning.
but I do think it's concerning that the state law is
written in.
written in such a way that um, the city would be on the
hook for this.
Okay, thank you. Thank you.
Okay, thank you. Thank you Cheryl. Appreciate it and Miss
Manning Hall. Thank you for going through that. Uh Alderman
Martin is yours a point of clarification?
Alderman Martin is your point of clarification because
there are other aldermen ahead of you.
That's correct. All right point of clarity. Just wondering
if you know approximately when uh the state Cod.
if you know approximately when uh the state codified, uh
that language around proximate cause and if you don't know
if you can share that through the chair.
Just give me 1 second to think I do have the answer to
that.
my recollection is that um the change um,
My recollection is that um the change um regarding
proximate cause in particular.
proximate cause in particular, um occurred toe.
proximate cause in particular, um occurred toward I will
submit that to the chair. I'm not going to make a guess.
here. Thank you Alderman. Thank you. Thank you. Thank you.
Miss. Casey Alderman CEO Lopez.
you uh, thank you, um chairwoman my question is
You uh, thank you, um chairwoman my question is and I think
it it. Um, this was asked during the briefings. Um,
the officer involved in these cases is this um officer on
active duty or or is in death Duty and I know that was
asked to CPD directly, but want to see what was the answer
after our questions.
after all questions.
Sure. Alderman
Sure Alderman, um officer press is not on.
Sure Alderman, um officer press is not on desk Duty. Um, he
is still on active duty.
Okay, I think I think just in terms of I think.
Okay, I think I think just in terms of I think some of the
questions in terms of protocols.
questions in terms of protocols that we believe that you
know with the Chicago Police Department not respond.
know with the Chicago Police Department not responding yet,
uh until this case is properly
Uh until this case is properly settled don't want to
speculate but I do think it's important.
speculate but I do think it's important in general just in
terms of procedures the CPD follows.
terms of procedures the CPD follows, you know, so I don't
know if there's you know, the this is a protocol again. I'm
not assuming any kind of wrongdoing.
not assuming any kind of wrongdoing all I'm saying is that
um the
um, the the the answer from the CPD. I'm not sure that has
got a an answer why why is the case of there's a
on this?
I apologize Alder.
question for me? Thank you know, I'm just my I know the
answer on this specific.
answer on this specific case now in general if there's a
protocol in terms of this.
protocol in terms of this there's a protocol in place on
this uh for this.
this, uh for this kind of um deciding if is the the
officer should be in their Duty or in active duty and
there's a protocol not on this specific case, but in
general
Yes Alderman. Um, I did convey.
Yes Alderman. Um, I did convey that question to the Chicago
Police Department.
Police Department, and I have not received a response.
Thank you, just in terms. I think the the item in terms of
protocol.
protocols and all that. I I I don't think that we should be
you know.
you know in the extremes of uh discussing.
you know in the extremes of uh, discussing, uh, 1 policy
because of 1 case, however
because of 1 case however protocols in terms of consistency
and again,
and again the the Chicago Police Department adhering to
adhering to constitutional policing and and when it comes
to the um cons, um consent decree as well. So want to make
sure that we follow those guidelines. Thank you madam
chair. Thank you. Alderman.
Alderman Taylor followed by Alderman the spot
Allman Irvin
that this happened to the plane of when he was 15.
old.
And you said 45?
And you said 45 million is only for medical.
How will this how is this family supposed to take care?
this young person?
for the rest of his life
on
On other men Taylor, I understand.
on other men Taylor, I understand your your concern for
Nathan Jones, um and with my familiar
Nathan Jones. Um, and with my familiarity with this case, I
I I fully appreciate that concern.
I I fully appreciate that concern, um in terms of of the
care of of Nathan Jones, this is a settlement that um his
family his caregivers.
family his caregivers, um are are open to accept
for what happened to to their
For what happened to to their son? Um, I know
yeah.
um
Um, I also know as a part of this settlement agreement.
if it is approved by um committee and then Council, um a
portion of the settlement will go into um, what
portion of the settlement will go into um what we call a
structured settlement or an annuity to pay out regular
dividends for the care of of Nathan.
How does Nathan now?
Nathan was 15 year old 15 years.
Nathan was 15 year old 15 years old at the time of the
accident in 202.
accident in 2021. So now putting it into.
accident in 2021. So now putting it into 2024.
About 18 years old at at this time.
So of course I'm going to be
so, of course, I'm going to be supporting this but it's
it's funny how we put in we put dollars on a 15 year.
and I'm assuming he was a normal 15.
and I'm assuming he was a normal 15 year old child who had
none of these issues.
none of these issues before this accident. And so
We have some responsibility.
We have some responsibility and I get us taking the court.
Um, if we take the support the family could get more. Um,
and maybe that's more support for this kid because he's
still a kid.
um
what was
What was I and this is the only question that I didn't get
to ask.
was the officer told told to
Was the officer told told to in Pursuit?
what was
What was he told by by his supervisor? Yes as a
What was he told by by his supervisor? Yes, as a part of
this case. Um
The fact came out that officer, press did not call.
The fact came out that officer press did not call into
oemc.
Um, and so his supervisor did not have an opportunity.
Um, and so his supervisor did not have an opportunity to
tell him to seize the pursuit.
Do we know what the reason for the pursuit was?
uh a traffic infraction role in the
Uh a traffic infraction role in the stop sign.
Stop signs. Yeah to initial the initial.
Stop signs. Yeah to initial the initial start of it was uh,
violating a stop sign and then there were initial or
additional violations that were observed.
so forth stop
So forth stop sign we got a young person who is never going
to walk.
to walk never going to eat never going to talk.
to walk never going to eat. Never going to talk. Never
going to get to have a baby never going to get to.
going to get to have a baby never going to get to do any of
those things and we are again about this this little money
because that can't replace.
because that can't replace what we don't know what that
young person's life would have been had the officer not
pursued for a rolling stop.
Thank you madam chair. Thank you.
Thank you madam. Chair. Thank you Alderman Taylor alderman
laspada.
Thank you chair.
There's not much.
There's not much I can say better than how old a woman
tailor just said.
tailor just said it if only I would add.
the the
The the streets were talking about are formerly in the
first.
First Ward and I think of the count.
First Ward and I think of the countless people that I care
about.
including myself who just as easily could have been the
person injured in this crash.
and
oh only say it goes.
oh only say it goes without saying but it ought to be said
that our a profound.
that our profoundest sympathies go to.
Miss Boyd, um, I can only
start to imagine the grief.
Start to imagine the grief that she's bearing every day
trying to care for.
trying to care for her son and thinking about the future
that she wanted for.
that she wanted for him. So if if this reaches her in any
sense that I just want to share my profoundest sympathies
and sadness for what?
and sadness for what happened to her son. That's all. Thank
you chair. Thank you.
you chair. Thank you Alderman. Laspada Alderman, uh B.
And thank you. Uh, thank you madam chair, uh,
And thank you. Uh, thank you madam chair. Uh, I be perfectly
honest with you. I think that uh almond
honest with you. I think that uh Alderman Taylor kind of
summed up a lot of things that were were stated 1 point was
that um, um, the the settlement I mean the portion of the
city's on for as the 2000.
city's on for as the 2000, um, the anything above the 20
million is being paid, uh via our insurance are they, uh on
board with this, uh particular settlement, uh,
board with this, uh, particular settlement, uh that's being
proposed.
additional insurers are on board with this decision that
we're voting on today this settlement agreement. Thank you
for that Claire. Uh, uh clar
for that Claire, uh, uh clarification chair. Um, and yes,
um Alderman Ervin the city's access insurance.
um Alderman Ervin the city's access insurance carriers are
on board with with this settlement. Um, and additionally if
I can pivot back,
I can pivot back briefly to the the question from our point
of clar.
of clarification from Alderman Martin in terms.
of clarification from Alderman Martin in terms of the
approximate cause jury instructions,
approximate cause jury instructions. Um, the information I
have is that they were modified.
have is that they were modified in August of 2021.
Uh Alderman Urban. Did you have any other questions? That is
all yeah. This is this is just a very tragic.
all yeah. This is this is just a very tragic case, um, you
know, and and
you know, and and unfortunately, this is um,
You know part.
you know part of part of the job that we don't like but uh,
it's something that we have to do to take care of this
family. So, uh, thank you madam chair.
Thank you Alder.
Thank you Alderman, uh Alderman Vasquez.
Thank you madam. Chair. Um I have
Thank you madam. Chair. Um, I I have questions that are
kind of
along the same lines as Alder wag.
along the same lines as Alder wag is back, but from a
different direction. I know when we have conversations with
the public, uh, they talked.
the public, uh, they talked to us about the chase policy.
Um, and they feel like the officers are restricted. Um,
there are rules in place for a reason I think looking at
not only the tragedy that caused the family and this young
man, but like the amount of fiduciary responsibility we're
responsible for here.
responsible for here, uh, also highlights that and I guess
my question is either here or through the chair if you
could provide
What this officer did that was against?
what this officer did that was against the chase policy in
a way that provides Clarity for our members, um, because I
think that would be important to know.
Sure.
sure, I
I'm happy to provide that that um.
I'm happy to provide that that um now but I'll thank you
for giving me the opportunity to submit through the chair.
Um, I have with me the general.
Um, I have with me the general order, um that was in place
at the time.
at the time of this incident, um as general order.
at the time of this incident, um as general order go
3030301. Um,
3030301, um emergency vehicle operations, um this
3030301, um emergency vehicle operations. Um, this policy
was issued on August 10th of 2020.
was issued on August 10th of 2020 and going to um,
was issued on August 10th of 2020 and going to um section
Roman numeral 5 Pro.
Roman numeral 5 prohibitions. Um,
the
The pursuit policy says that members will not engage.
The pursuit policy says that members will not engage in a
motor vehicle Pursuit whenever the most serious.
motor vehicle Pursuit whenever the most serious offense
wanted for is number 1.
wanted for is number 1 a traffic offense. So if this matter
were to proceed to trial the plaintiffs will argue that um
officer per
officer Perez, um through his Pursuit violated,
officer Perez, um through his Pursuit violated the general
order the 1 specific.
order the 1 specifically saying that officers are not to
engage in Pursuits where the most serious offense is for.
engage in Pursuits where the most serious offense is for a
traffic violation. Um, and as I previously stated, um the
evidence in the record, is that the the sarge the lieut
and the commander, um,
and the commander, um found that this Pursuit was not
within Pollock.
within policy.
okay, um an additional
Fact, um that will lead the plan.
fact, um that will lead the plaintiff to argue that this
Pursuit was in violation of the general.
Pursuit was in violation of the general orders is um
officer Perez.
officer Perez's failure to call or contact.
officer Perez's failure to call or contact oemc to let his
Sergeant know that he was purs.
Sergeant know that he was pursuing. Um, so that his Sarge
will have the opportunity to approve the pursuit or call it
off. Um, so those are the the 2 main allegations here, um
pursuing for uh traffic.
pursuing for uh, traffic infraction and pursuing without
notifying oemc that is what the plaintiff will are.
I I appreciate that because I think when when it gets
framed publicly that officers are being handcuffed.
from chasing these violent criminals that what we're
talking.
talking about here was very reasonable and protocol that if
somebody's running through a stop.
somebody's running through a stoplight, that doesn't then
mandate a Chase.
mandate a Chase and that if you're going to get involved in
that situation that you're making the call so other
involved and so, um, I I just wanted those details to
shared. Um, I know there were how many individuals in the
Um car with Nathan there were a total.
Um car with Nathan there were a total of 5 individuals that
were in the car with Nathan. Okay.
were in the car with Nathan. Okay, and there was there was
a a gun that was found.
a a gun that was found in the vehicle, but are there
details?
details on where it was found or who might have had it?
Sure. So in my apologies to clarify 5 people.
Sure. So in my apologies to clarify 5 people in total in
the car including Nathan?
the car including Nathan, um in terms of where the firearm
was recovered it was recovered.
covered in the Center Council
Covered in the Center Council. Um Nathan was a backseat
passenger.
passenger and the judge in this case has said that no
evidence of the recovered firearm.
evidence of the recovered firearm will be allowed to be
presented to the jury if we have to go to trial.
Thank you. Uh, the reason why I wanted all those expansion.
in in this speaks to the experience of of myself and a lot
of kids who have grown up in this city. Um, we've all not
all a lot of us depending on the situation. We've grown up.
in have been in vehicles with multiple.
in have been in vehicles with multiple folks our age. Um, I
can't say in my own history that there hasn't been some
situation where I may have been in a car with somebody else
who had a weapon on them. Um when you think
who had a weapon on them. Um, when you think about the fear
of a 15 year old and thinking that an officer might be
pulling up behind you as well as a history.
pulling up behind you as well as a history of profiling I
think there's just a lot of context that may not be um
brought to this whole story but
brought to this whole story, but I think there's a history
that we know in this country and in this city about how
this this interactions are different with different folks.
And so the reason why I mentioned that is
Although it may seem to some who have not had that history
of.
of experience that that the way people resp.
of experience that that the way people respond when there's
a officer or a light turned on.
a officer or a light turned on behind you might seem
irrational. It's not if you're concerned about what that
could end up being and so it is an incredibly sad story.
Uh, it's incredibly Savvy when you think about what
happened to to this young man.
um
in here in
in here, in this case it it was it was not necessarily a
conflict, but there's
conflict but there's so much that could have been done
differently. And so, um, I will be in support. I understand
how challenging it is and how much it's going to cost the
city, but when we think about what it
city. But when we think about what it costs the family, I
don't think there's any amount that that is able to to to
replace what's being lost their. Um, I do also think that
when we talk about our current youth out there that are
engaged in in any level of activity that could
go into the criminal territory.
Go into the criminal territory that that this story is
something that also need.
something that also needs to be shared. And so I hope that
the family is able to hear and obviously when we get past
all this.
What's happening right here?
What's happening right here to a child?
I think it's more of a deterrent.
I think it's more of a deterrent than what a lot of people
think messaging is out there for kids.
think messaging is out there for kids out there who have no
idea what situations they be jumping into.
idea what situations they be jumping into when they're in
vehicles or what kind of Life they think they're uh,
potentially getting involved in I I
I'm Terr.
I'm terribly sorry to to the family. Um as a city, I know
we have to do the right thing is difficult.
we have to do the right thing is difficult as it is, but I
hope that if anyone is seeing what this story.
hope that if anyone is seeing what this story is if you're
a kid out there.
Second guess anything that you're putting yourself into.
because we wouldn't want anybody and not to put
responsibility on on.
responsibility on on victims of of even car crash or
anything, but
It's incredibly complicated. So I thank you for the answers.
Thank you madam chair.
answers. Thank you. Madam chair. Thank you Alderman Vasquez
Alder.
Alderman Talia Ferrell.
Thank you madam. Chair. Um, I too will be supporting this
on these. Um facts are very tragic and um,
but I I wanted to ask uh
because
Because it sounds like when you were talking proximate
calls a little earlier.
calls a little earlier, uh that there may have been more
than 1 party that.
than 1 party that could have been um liable in this case.
for the injuries. Um,
And with that, could we have?
and with that could we have and if we if the answer is yes,
then we
did we seek? Um any contribution from anybody that may have
been jointly liable, uh from the insurance companies that
may have been joint.
may have been jointly liable.
Sure, um.
Sure. Um, I'm happy to to answer that question.
sure, um, I'm happy to to answer that question, uh in terms
of approximate cause and then joined in several liability.
liabilities. So in this particular case, um the name
liabilities. So in this particular case, um, the name
parties are um clear Rags the city of Chicago and
Perez is the city's employee. Um,
Perez is the city's employee, um with insurance the
vehicle.
that uh, Phil Rags was driving was uninsured even if it was
unsure those policies.
unsure those policies are normally capped at dollars, so it
would be a very nominal amount, but there's no insurance
there.
there, um in terms of clear r
If we were to proceed to trial we would argue.
if we were to proceed to trial we would argue that Khalil
Rags was wholly responsible what we call the sole.
Rags was wholly responsible what we call the sole proximate
cause that argument is UN.
cause that argument is unlikely to succeed based on how we
have seen.
have seen these Pursuits go forward and based on how the
law.
law is is structured. Um,
law is is structured, um to say that you can be approximate
cause if you're not the last calls you're not the greatest
if you're in combination with other causes and additionally
the way Illinois Law is structured is that if the city is
found even 1% responds,
found even 1% responsible the city will be responsible for
all.
all of the medical bills here. Um, and the evidence in the
record is that the medical bills are 44 million, right? I I
understand that. Um, but I'm I'm what I'm asking is um, did
you seek any joint liability against uh, the the gentle
that you mentioned because if if he wins that
dollar lottery tomorrow, he's all Scott free if I'm not
mistaken.
so I'm I'm asking if you
So I'm I'm asking if you sought any type of joint liability
against him.
Sure. So, uh, yes we did.
Sure. So, uh, yes, we did file. Um a we filed a counter
claim for a contribution.
claim for a contribution against Mr. Rags, um if we were to
proceed to
to proceed to try we will argue that Mr. Rags is the 1 that
is responsible. Um, how however we have
is responsible. Um how however we have to really evaluate
the case based.
the case based on how things are set up today. Um, and not
how things may be set up in the future. So with that
practically looks like is if we settle the case today, um
with Nathan and his family and perhaps the medical bills.
are higher.
The settlement is what it is. Um if we settle the case
today.
today, um,
and Nathan
And Nathan or excuse me, Mr. Rags at this point um is
able to con to contribute the settle.
able to con to contribute. The settlement is what it is. So
really when we are thinking about the valuation of the
case, we're evaluating it with all of the facts, um and
evidence that we have right now at this point in time. We
really can't project into the future when evaluating
case, but I I do hear you. I understand you.
case, but I I do hear you. I understand you and we did file
a counter claim for contribution.
a counter claim for contribution against Mr. Rex.
I think you should.
Thank you. Alderman.
Thank you Alderman Talya Ferro Vice.
mayor Bernett
Yeah, thank you. Uh Madame chair. I I just would be remiss
if I did not um
first of all, thank you, but having a briefings for
First of all, thank you, but having a briefings for all of
us, uh about these things.
us, uh about these things and thank the attorneys for
explaining the details to us at the briefings.
things. Uh, so I appreciate the fact that that you know,
we've asked a myriad of questions and some good questions
have come out of this, but there was some good questions.
that came out of the briefing so I just want
Folks to know that some of us already asked.
Folks to know that some of us already asked our questions.
Uh, we didn't ask it publicly.
Uh, we didn't ask it publicly because we asked it at the
briefing so I just want to thank
briefing. So I just want to thank you very much for all the
information you have shared with us.
information you have shared with us and for all of the
things that we're learning.
things that we're learning, you know, like for instance the
when the insurance kicks kicks in that the insurance
policy.
that the city have that's why some of its being paid for uh
through the insurance, so I just want to thank you.
through the insurance. So I just want to thank you Miss men
hall for uh all of your
hall for uh, all of your explanation and I thank the
chairman for having a briefings.
chairman for having a briefings for us. Thank you. Thank
you vice mayor and I would encourage
um
all of the members
All of the members of the committee and those that are not
members.
members to attend when you can because I think they're
informative, um and important
informative. Um and important I will say, um prior to uh,
assuming this seat. I did not always go to brief.
assuming this seat. I did not always go to briefings and I
see the importance of attending them now so so um, I
want to put that on everyone's mind, you know, finally, I
just wanted to say that as a mother, um this case
just wanted to say that as a mother. Um, this case was very
devastating to me personally.
devastating to me personally and uh, you know,
devastating to me personally and uh, you know Alderman
Taylor, I thank you for you know,
keeping us, uh sensitive about uh, the decisions that we're
making in this body. Um, and if there are no further
questions on this, um,
Alderman Alderman Curtis
I am supporting um, uh this 1 but uh, can I be recorded as
a know and be
Yes, thank you, ma'am. I'll record you as
yes, thank you, ma'am. I'll record you as a know on the on
B.
B and move to pass on this 1. Uh, okay.
B and move to pass on this 1. Uh, okay, so can I get a
motion to?
motion to move to pass on item 13c?
some mobile Alderman Harris, um all those in favor signify
by saying I
opposed
And the opinion of the chair the eyes have it and this.
and the opinion of the chair the eyes have it and this do
pass recommendation will be reported out.
pass recommendation will be reported out at the next city
council meeting. Um, I want to thank everyone for being
here.
here this today. I know this was a long meeting.
being no further business before the committee. Can I get
I get a motion to adjourn Alderman Alderman Lee?
motion to adjourn Alderman Alderman Li moves to adjourn all
those in favor signify.
those in favor signify by saying I oppose nay and the
opinion of the chair the eyes have it. We're adjourn.
have a nice afternoon.