not
man
there is a lot of
up
never
How you going to let everybody speak?
and the City of
And the City of Chicago city council rules of convict for
public.
public meetings 2023 to 20.
public meetings 2023 to 2027 pursuant to the Chicago city
council Rules of Order.
council Rules of Order and procedure rule 49 the sergeant.
sergeant-at-arms sets forth the following rules of conduct
to be followed during the public comment period and the
duration of all committee and City Council meetings Prof.
duration of all committee and City Council meetings profane
vulgar.
threatening abusive or
Threatening abusive or disruptive language is not permitted
demean.
demeaning discriminatory or harassing behavior and spee.
demeaning discriminatory or harassing behavior and speech
directed towards others is not permitted disrupt.
behavior, including disruptive or disrespect.
behavior, including disruptive or disrespectful content
during others presentations is not permitted banners flyers
or sign.
or signage are not permitted backpacks large bags.
or signage are not permitted backpacks large bags and sharp
objects are not permitted clear bag.
objects are not permitted clear bags not tinted in color
that do not exceed 12.
that do not exceed 12 by 12 by 6 in will be permitted in
our subject.
our subject to search food and beverages including in metal
canisters are not permitted cell.
canisters are not permitted cell phones must be placed on
silent prior to entering the meeting.
silent prior to entering the meeting room individuals must
remain seated.
remain seated public comments speakers are permitted to
stand only when providing.
stand only when providing public comment small handheld
devices may be used only while seated and the user must
refrain from inter.
refrain from interfering with the view or hearing of other
individuals individ.
individuals individuals or groups failing to adhere to
these rules will be asked to see such Des
convict and failure to comply will result in their being
subject to removal from the meeting.
subject to removal from the meeting by the
sergeant-at-arms.
dealing with
they
wahoo
how
black and high places
black
I'm coming over here all.
I'm coming over here. All these white belts. They make some
money.
and
And we get nothing.
nothing
They make your money.
I want to set aside.
that
back
you are my favorite.
Okay. Thank you.
so when I get
there
I get.
I'm the 1
that that allow.
the people to speak that now
I don't.
they said the people could speak at the committee, but
a city town.
I'm the 1 that went.
I'm the 1 that was the reason and say the citizens have
every right to speak at city council.
And he came through.
And he came through about 3 minutes to 1 minute where he can
hear.
hear from you don't go there.
go there for the record that you can't go.
go there for the record that you can't go sit down sit
down.
Sit down.
Good.
Good afternoon, everyone.
Happy Friday.
Uh the subject matter hearing on the committ.
Uh the subject matter hearing on the committee on finances
hereby called to order. Um, as you all know, this is the
subject matter.
subject matter hearing to discuss the issuance of General
oblig.
obligation. Andor sales tax securitization.
obligation. Andor sales tax securitization Corporation
bonds for economic develop.
bonds for economic development and affordable housing
program.
um want to reiterate today that that no votes will be taken
on this matter we
on this matter. We will have a roll call now to establish
qu
Vice chair Conway
Al
alderman laspada
Alderman Hopkins
Alderman Hall
Alderman Mitchell
Alderman Beal
Alderman Lee
Alderman Ramirez
Alderman Quinn
Alderman Lopez
I know you're here.
I know you're here all the more.
Alderman Moore I did see Alderman Moore will
Alderman Moore, I did see Alderman Moore will come back to
him Alderman Curtis.
Alderman OSHA
Alderman Taylor
Alderman Roger, uh Rodriguez
Alderman CEO Lopez
Alderman brunette vice mayor brunette
Alderman Ervin
Alderman Talia Farrell
Alderman Cardona
Alderman wag is back.
alderman ramire
Alderman Ramirez Rosa
Alderman Vasquez
Alderman Reilly
Alderman Knutson
Alderman Martin
alderman silverstreet
Alderman Silverstein
chairman dowels here
Alderman Mosley
and Alderman Moore
we have 18 members present. We do have quor.
we have 18 members present. We do have Quorum Alderman
viegas Alderman Harris.
viegas Alderman Harris Alderman spaz Alderman Scott Al
Alderman Cruise as a non-member alderman mitts.
Alderman Cruise as a non-member alderman mitts and Alderman
Rodriguez Sanchez.
Rodriguez Sanchez have requested remote participation on
the provision.
the provision of rule 59.
Can I get a motion to allow these alderman?
Can I get a motion to allow these Alderman to participate
in this meeting? So moved by?
in this meeting? So moved by Alderman Rodriguez all those
in favor signify by saying?
in favor signify by saying I in the opinion of the chair.
the eyes have it and the motion carries. I want to confirm
that these aldermen are with us today.
that these aldermen are with us today alderman viegas.
Alderman president
All right. Alderman.
All right Alderman spaz.
Alderman Scott
Alderman mitts
Alderman Rodriguez Sanchez, press it. Okay, so I'm gonna
start as present.
All right, Alderman Scott. Got you Alderman Rodriguez.
Sanchez. So everyone is here.
Sanchez. So everyone is here except for Alderman mitts, and
I'm sure she'll let us.
I'm sure she'll let us know when she joins us.
at this time, we'll begin the public comment period the
public comment period is usually limited to 30 minutes. Um,
but we're going to go a little bit longer today because
I've received some addition.
I've received some additional public comment, uh cards but
each speaker is limited to 3.
each speaker is limited to 3 minutes all the mentality of
pharaoh. I see you walking in and we'll count you towards
quorum.
We do.
We do not have anybody who has asked to speak to.
We do not have anybody who has asked to speak to us row
remotely so we will start.
remotely. So we will start with um, the people present
today the first person
today. The first person to speak is Allison Clements.
Good afternoon.
Good afternoon, chair dowel Vice chair Conway and members
of the committee. My name is Allison Clements and I serve
as executive.
as executive director of the Illinois Housing Council a
mem.
membership Association that represents over.
membership Association that represents over 270 nonprofit
organizations and private businesses.
organizations and private businesses active in the
development and preservation of affordable.
development and preservation of affordable housing
throughout our state our members have developed.
throughout our state. Our members have developed thousands
of units of high-quality affordable mult.
family rental housing throughout the city of Chicago
I'm here today to speak in support of the housing and
econom.
economic development bond proposal.
last year the deepal institute for housing studies reported
that 47% of Chicago renters are cross burdened.
that 47% of Chicago renters are cross burdened spending
more than 30% of their annual income of on housing the
study noted that in.
study noted that in Chicago substantial declines in in the
affordable housing.
affordable housing Supply have led to the highest
affordability Gap and at least a decade
at the same time developers of affordable housing faced
unprecedented.
unprecedented cost increases upwards of 30% in recent
years.
due to high interest rates and the surging costs of
material.
materials and labor. We will not solve our cities.
affordability crisis if we do not invest in addition.
Financial Resources to increase production.
the most important tool
The most important tool available for the development of
affordable multi family.
affordable multifamily rental housing is the federal
low-income housing tax credit program. The housing credit
is allocated to States from the federal government.
However, Chicago is unique in that it is 1 of just 3
municipalities across the country.
municipalities across the country that receives its own
direct allocation of tax credits.
developments that you utilize the Federal Credit often need
additional sources of financing to make the deals work
financially as the private Equity Jenner.
financially as the private Equity generated from tax
credits only covers about 30 to 70.
credits only covers about 30 to 70% of development costs.
developers work with do to close funding gaps on projects
Developers work with do to close funding gaps on projects by
using other city state and federal funding.
using other city state and federal funding programs such as
the federal home program CD.
the federal home program, cdbg State donation tax credits
or other sources.
credits or other sources from Ida.
historically Tiff has been an important part of the funding
stack for many affordable developments utilizing resources
from do.
from do however Tif funds are available in limited
location.
locations. And when other public resources are limited the
city may have to turn down promising and impactful
development.
developments simply because they fall outside of a tiff.
boundary.
the bond proposal creates a
The bond proposal creates a reliable and predictable source
of funding for all neighborhoods.
of funding for all neighborhoods across the city of
Chicago. It will support developments that not only provide
affordable housing but create high-quality jobs and
generate new tax base throughout the city.
by enacting the housing and economic
By enacting the housing and economic development Bond
Chicago will join peer cities in.
Chicago will join peer cities including LA and New York and
how they fund affordable.
how they fund affordable housing development.
the exhaustion of 1-time federal pandemic resources in the
near-term reduction in Tiff Revenue means our city faces a
decline in key sources of available funding if we do.
decline in key sources of available funding if we do not
act Chicago faces a drop in affordable housing.
act Chicago faces a drop in affordable housing production
during a time of desperate needs. Thank you very much.
during a time of desperate needs. Thank you very much, Miss
Allison.
Clements
I want to acknowledge. Uh Alderman manah hoppenworth.
I want to acknowledge, uh Alderman manah hoppenworth, uh
who's here with us as a non-member?
who's here with us as a non-member our second speaker is
uh, looks like cat.
uh, looks like cat Velma.
I'm a little short. Sorry.
uh good
Uh, good afternoon chair dowel and Alders. My name is Kat
Vel.
Velma I grew up in pilson, and I'm proud to work in in.
affordable housing. I'm here today to share my professional
sites and support of the housing and economic development
Bond.
my company red
My company Redstone Equity Partners is a national real
estate firm that specializes in this indication of
low-income housing tax tax credit.
low-income housing tax tax credits.
The Lincoln Housing tax credits is our main.
The Lincoln Housing tax credits is our main re resource to
fund affordable housing.
fund affordable housing over its 40 years. It has it has
created.
created approximately 4 million affordable.
created approximately 4 million affordable rental homes
across the entire country.
my
My job is to connect underwrite and asset ass.
My job is to connect underwrite and asset asset manage
affordable housing de developments on on behalf of some of
our country's largest banks.
We've invested.
We've invested over 10 billion dollars over the last 17
years.
years and have over 2,000 units in this state alone.
More recently. We've invested in Grace Manor at 34.
More recently. We've invested in Grace Manor at 3400 West
Ogden and we're looking forward to closing 123.
Ogden and we're looking forward to closing 1237, North
California later this summer.
My role at work offers me a very unique point of view.
my role at work offers me a very unique point of view in
that even though I sit in the great city of of of Chicago.
I oversee our work in the Pacific Northwest.
I oversee our work in the Pacific Northwest and in the
mountains.
as mentioned many
As mentioned many other cities use a housing Bond measure
to support.
to support the development and preservation of low-income
housing.
1 of the more successful programs is located in Portland.
1 of the more successful programs is located in Portland,
OR, Oregon.
OR Oregon despite offering a much smaller Bond of 250.
million the city was able to support 1,859 affordable
apartments.
apartments in 3 years.
This is possible.
This is possible as their city funding is leveraged
alongside other Federal.
alongside other Federal and private dollars like mine.
Typically City funds in an affordable housing.
Typically City funds in an affordable housing to to to
development can expect a leverage point of at least.
development can expect a leverage point of at least 3 to 1
that means for every dollar that.
that means for every dollar that a city provides another $3
of privy.
dollars of private or federal funds are leveraged.
It is a great example of a public and private partnership.
for a public good that is not being.
proposal, especially when paired alongside the upcoming
process Improvement changes within the department of of of
housing will support additional affordable.
housing will support additional affordable housing for
Chicagoans in desperate need
sh sh Chicagoans in desperate need I strongly encourage its
its passing. Thank you.
Thank you, Miss. Phelma.
Thank you. Miss. Phelma want to acknowledge Alderman Harris
has joined us by.
has joined us by remote and uh Alderman Curtis.
has joined us by remote and uh Alderman Curtis has joined
us in the room. Thank you our next speaker.
us in the room. Thank you. Our next speaker is Stacy Young.
Good afternoon. Thanks to chair room and Dao and the
members of the committee.
I am here today to support the housing and economic
development bomb proposal. I'm Stacy young. I'm president
and CEO of community Investment corporation or cic or
nonprofit lender known as a community development financial
institution.
institution or cdfi most of our financing.
institution or cdfi. Most of our financing goes to
historically disinvested neighborhoods.
historically disinvested neighborhoods buildings and areas
that most banks have overlooked over the past few decades.
We Finance small responds.
We Finance small responsible local building owners. These
are small businesses.
are small businesses to buy rehab own and operate.
are small businesses to buy rehab own and operate local
unsubsidized affordable.
unsubsidized affordable rental housing. This is also known
as naturally occurring affordable housing or Noah. Think
about a 6 flat.
about a 6 flat or a courtyard building that you see every
day.
this
This year marks cic's 50th anniversary and we're proud to
have deployed.
have deployed 1.6 billion dollars to finance.
have deployed 1.6 billion dollars to finance 166,000 units
the vast majority of which is in.
the vast majority of which is in invested in the city of
Chicago in addition to financing cic provides Property
Management training to build.
Management training to build the capacity these small local
responsible building owners. We also partner with the city
of Chicago on the troubled buildings.
of Chicago on the troubled buildings initiative.
And we house the preservation compact a policy.
And we house the preservation compact a policy collaborative
to help create strategies to preserve.
to help create strategies to preserve affordable rental
housing and when I say preserve I just mean
housing. And when I say preserve I just mean keeping the
buildings in good condition and the units affordable.
preserving rental is important because we know Chicago
communities are losing affordable units somet
disinvestment deterioration sometimes to higher rent.
to disinvestment deterioration sometimes to higher rents.
And while new construction is important. It's far less
expensive to preserve and keep the buildings that we have.
If we lose those units we have to build new ones and it's
it's way too expensive to build new when we can.
what we have. This is why it's the IC we greatly
what we have. This is why it's the IC. We greatly
appreciate the proposed bond which includes resources.
committed to preserving affordable multifamily rental
housing.
housing in particular. We're thrilled about the funds to
preserve.
preserve single room occupancy or SRO buildings.
preserve single room occupancy or SRO buildings, which
housed the city's most vulnerable residents.
housed the city's most vulnerable residents those who are
closest to homelessness many sro's need a lot more rehab
than traditional financing.
than traditional financing can support and that's why cic
partnered with the city.
partnered with the city to create the SRO preservation
fund. It provides financing and a city Grant to fill that.
improve building conditions while also
affordable rental housing options for the cities most at
risk population C.
risk population cic is also enthusiastic the bond is
proposing investment in Energy Efficiency.
Existing multi-family buildings again cic has a strong track
record with energy.
record with energy retrofits. We've financed 260 buildings.
and improved over 11,000 units by
And improved over 11,000 units by connecting them to energy
saving measures.
saving measures in closing cic supports the city's proposed
investment.
Investments through this Bond and we stand ready to
collaborate with the city and other partners to enable our
rental housing stock our blocks and our neighborhoods.
rental housing stock our blocks and our neighborhoods to
thrive. Thank you again for the opportunity. Thank you Miss
Young Abraham Lacey.
Good afternoon, everyone.
For the record. My name is Abraham Lac.
For the record, my name is Abraham Lacey. I am the
President of the far south Community Development
Corporation. We are a nonprofit developer as well as
community service organization located on Chicago.
community service organization located on Chicago's far
south side.
I support the housing and economic development Bond and for
the very purpose that we have been for far too long relying
on.
on tiffs to be the economic solution for our communities.
And that is that is polls a serious ISS.
And that is that is polls a serious issue.
for areas that are only comp
For areas that are only comprised of tiffs.
and on and TIF district
and on and Tif districts the increment of those Tif
districts, especially in low to moderate income
communities. Do not generate enough Revenue.
Equal enough to do the development. So when 1 developer can
come into the area.
they can soak up the entire development and then now you
have to wait.
and you have to wait until the next increment until it
grows until it grows and when you've experienced so much
disinvestment for so long. How do you expect that? Tiff to
grow?
So my thing is is that by by pulling?
So my thing is is that by by pulling away the funding away
from tiffs.
from tiffs making irrespective of District Tif districts
you're able to do.
you're able to do more and stretch the dollar more than
waiting for.
waiting for an increment to take place.
We oldest.
We oldest to areas that have been distressed where it's
almost like a chicken.
almost like a chicken and egg. You're expecting more
funding.
funding but there's no there's no revenue or no or no.
but there's no there's no revenue or no or no idea or no
concept that can produce that.
concept that can produce that that type of development that
we are in desperate need of we are in an affordability
crisis right now.
crisis right now in the city.
We are in a severe.
We are in a severe affordability in this city if we think
homeless.
homelessness is a problem right now if
homelessness is a problem right now. If we don't pass a
bond like this, it's going to get worse.
and for the life of me
And for the life of me, I'm always going to advocate.
mainly because for the far south side, of course, but I'm
always going to Advocate that we need to House people
because without a home without a stable home.
how can you be able to
How can you be able to stabilize a job?
How can you keep a job? How can you keep your kids in
school?
so we
I am
I the only criticism I have of this proposal.
I the only criticism I have of this proposal is that I wish
it was a 5 billion dollar proposal.
Because we need it.
We need it. We cannot continue to underfunding.
We need it. We cannot continue to underfunded these
neighborhoods because it's going to affect all of us.
neighborhoods because it's going to affect all of us if
we're not going to pay for it. Now. We're going to pay for
it. Later.
it later. So I support this Bond.
it later. So I support this Bond and I would say if you can
in any way shape or form.
in any way shape or form increase it throughout the years.
because you're going to need it. Thank you.
Our next speaker will be Rhonda McFarland. I want to
acknowledge that Alderman Nugent a non-member.
acknowledge that Alderman Nugent a non-member has joined us
and also Alderman Ervin.
and also Alderman Ervin, uh has joined us as well. We'll be
counting towards quor.
counting towards quorum.
Good afternoon, Madam chair.
good afternoon, Madam chair and members of council as
my name is Rhonda McFarland. I'm the executive director.
quad Community Development Corporation we proud.
quad Community Development Corporation. We proudly serve
uh, 20 years as a econ.
uh, 20 years as a economic and Community organization
serving the Third.
serving the third and fourth W and recently with remapping.
the 20th Ward, um for the past.
the 20th Ward, um for the past year serving the greater,
Bronzeville area we
Bronzeville area, we support over 300 businesses and over
520 commercial.
520 commercial property owners in our commercial corridors.
Um and are proudly part of 3.
major collaborations across the city represent
Major collaborations across the city representing over 40,
excuse me over 40 community.
excuse me over 40 Community Development agencies today. I
speak on behalf of qcdc and my other colleagues who are not
here.
here qcdc has worked for the past 20.
here qcdc has worked for the past 20 years and is well
positioned based on our work.
positioned based on our work to give a educated per uh,
perspective and opin.
perspective and opinion. We are in support of this Bond
program.
program and we are generally in support of all of its
elements with the special.
elements with a special focus on small business capital and
operating.
operating support expanding opportunities for
ownership within our commercial corridors.
ownership within our commercial corridors and for expanding
opportunities with uh, uh affordable.
Home ownership. Excuse me. Um
Home ownership. Excuse me, um the tiffs why have been
beneficial they've not been effective Tools in our
commercial corridors.
commercial corridors for redeveloping in our communities
and generally that is due to the limited scope that Tiff
allows.
allows to fund.
comparing the bond program
Comparing the bond program with well-defined requirements
process.
processes procedures and approval as well as third-party uh
season.
uh seasoned professionals who are subject matter expert.
to assist with executing projects that will be sustainable
in our community is an exciting opportunity.
today at 3 p
Today at 3 pm. We will proudly cut the ribbon on another
new business.
new business in our commercial corridor.
new business in our commercial Corridor regio's Bronzeville
having worked with this business.
having worked with this business owner as well as countless
others. We understand the difficulty small business.
others. We understand the difficulty small business owners
are having in our communities for Capital and operating
expenses, which this Bond program can support ownership of
our corridors is critical for moving.
our corridors is critical for moving our communities
economic positions forward.
Our ultimate goal is that we have commercial Cor
Our ultimate goal is that we have commercial corridors
throughout all 77 communities.
throughout all 77 communities that are filled with
economically sustain.
economically sustainable local owned small businesses.
economically sustainable local owned small businesses the
housing Bond and economic program, uh, excuse
housing Bond and economic program. Uh, excuse me program is
a great tool and we're excited to partner with the city to
continue.
continue developing this opportunity. Thank you. Thank you
Alder.
Alderman kitson. I see you back there. We'll count you
towards.
towards Quorum. Um, and Alderman bill is joined us.
towards Quorum. Um, and Alderman bill is joined us as well
and will be counted towards quorum.
um AJ patent
Good afternoon, Madam chair. Thank you for having me. Uh,
my name is AJ patent. I'm the founder of 548.
my name is AJ patent. I'm the founder of 548 development,
which is a sustainable development company here.
which is a sustainable development company here in the city
of Chicago. We uh build sustainable.
of Chicago. We uh build sustainable communities in
disinvested and under-invested neighborhoods. Uh, I come in
support of the bond and I would like to briefly highlight.
uh, 3 things, uh in support 1 is the flexibility, uh, as
some of our contemporaries have already outlined, uh, the
current system does does not meet the moment.
current system does does not meet the moment for what our
communities need in terms of the difference.
communities need in terms of the difference between uh, the
6 flats and the litec devel.
6 flats and the litec developments that are 4 and 5 storeys
60 unit new construction. We need a product and a program
that has a lot more flexibility in agency to fill the gaps.
of these different projects and economic stimulants that
our communities need
2 is equity as uh
Mr. Lacey outlined as well. I'd like to support that our
current structure.
current structure for funding economic development is not
Equitable in the sense.
Equitable in the sense that uh, many of our communities do
not generate enough.
not generate enough Tiff to support scalable impactful
projects. This program will absolutely do that on the nose.
And so we want to make sure that that impactful project
goes to all neighborhoods in an equitable.
goes to all neighborhoods in an equitable manner.
lastly efik
Lastly efficiency as a developer. I cannot say enough that.
time is so crucial in getting these projects across the
Finish Line with this program will create enough.
Finish Line with this program will create enough much more
efficient process and a more streamlined.
efficient process and a more streamlined ability to get
much-needed Capital into the projects that need it most in
the communities that need it most
So I passionately support.
so I passionately support the the bond and ask that uh,
this committee does as well.
committee does as well. Thank you for having me.
Thank you, Christina Harris.
Good afternoon.
Good afternoon, tear down and members of the finance
committee. My name is Christ.
committee. My name is Christina Harris, and I'm a senior
director at the Metropolitan planning Council. NPC is a
nonprofit policy and planning organization that
equity in the built environment through its focus on
housing and
Housing and Community Development Water Resources
transportation and land.
transportation and land use and planning on behalf of MPC.
I would like to express support for the housing and
economic development bond proposal.
economic development bond proposal MBC believes. This
proposal has the potential to secure a Devon dedicated
Revenue stream for community.
Revenue stream for Community Development at a time when
affordable housing pressures deepen for many families and
our business and Commercial corridors.
our business and Commercial corridors are struggling.
All those this plan would require new.
All those this plan would require new borrowing upfront
using the revenue from the expiration of 1/3.
using the revenue from the expiration of 1/3 of tax
increment financing districts will help repay this
over time.
There are a number of tips districts that would.
There are a number of tips districts that would continue to
operate this proposal does not eliminate the use of Tiff
but instead provides another tool to be used for
development.
development a tool that can be used more equit.
development a tool that can be used more equitably across
the city.
mpc's past research on financial incentives clearly shows
that tip and other development and incentive programs were
not designed with equity and
not designed with equity in mind which has limited their
use in areas that have the greatest economic disadvantage.
Fifth District boundaries limit where the money can be used
which does not allow for a distribution based on Equity,
but rather favors where the dollars accumulate
this tool would add to the city's ability to provide
funding to a broader range of beneficial development initi.
initiatives and projects that fall outside of Tiff
boundaries.
Equitable Community Development and affordable housing are
identified as key drivers for this proposal.
But for this development approach to succeed there must be
absolute clar.
absolute Clarity transparency and monitoring around
specific equ.
specific equity and Community Economic Development goals
The city's proposal presents an opportunity to provide
funding based.
funding based on clear criteria and outcomes and
neighborhoods with the most economic.
neighborhoods with the most economic need and MPC
encourages the city to form a working.
encourages the city to form a working group comprised of
Civic Community government and private sector.
Civic Community government and private sector stakeholders
develop robust Equity criteria.
develop robust Equity criteria and outcomes and considering
where development funds should be spent.
Additionally, there are a number of plans that already
exists.
or are in the process of being developed. That should be
consulted.
projects and initiatives receiving funding
Projects and initiatives receiving funding should align
with the goals that are included as part of the Citywide
plan. The department of housing's forthcoming 5-year
housing plan.
housing plan, the Chicago climate action plan and the
Equitable Transit.
Equitable Transit oriented development policy plan as well
as other guiding documents.
as other guiding documents that Center Equity is a key
component.
This borrowing proposal will not fix all Chicago's
neighborhood development.
neighborhood development challenges and is important for
the city to align the strateg.
the city to align the strategy with its other incentive
programs to achieve the greatest equ.
programs to achieve the greatest Equitable impacts and
perhaps most important Ensure.
perhaps most important ensure. There is a strong oversight
evaluation transparency and account.
evaluation transparency and accountability across all
programs.
The Proposal is encouraging and MPC believes and has the
potential to be incredibly impactful and create
neighborhoods that provide.
neighborhoods that provide all residents with the
opportunity to thrive. Thank you for your time.
Thank you want to acknowledge that we've been joined by
Alderman Mitchell.
Alderman Mitchell who will be counted towards Quorum in
alderman.
Alderman mitts who is joining us remotely.
Alderman mitts who is joining us remote. Our next speaker
is Wendell Harris.
Good afternoon. Honorable.
Good afternoon, honorable chair Dao finance committee.
Again, I'm Wendell Harris the vice president of lending at
the Chicago.
the Chicago Community Loan Fund.
A 33 year old C.
a 33 year old cdfi a community development financial
institution that serves Metro Chicago with most of our work
being done.
being done on the South and West sides of Chicago.
cclf is in support of this Bond
and our work we are very familiar with what it
And our work we are very familiar with what it takes to
bring development.
to Long
to longtime disinvestment Chicago communities and
understand the hurdles developers working in the space.
uh often face
We are excited to see.
We are excited to see the new approach Mayor Johnson and
the City.
the city are taking to support local Developers.
specifically black and brown Developers
to quote our department of Planning and Development
commissioner Sear.
commissioner Sierra Boatright
Tiff is not and has not historically been the most
equitable.
Equitable tool.
personally
it is very troubling to watch Community folks seek debt to
bridge subsidy or Grant dollars.
This further diminishes the strategy of helping build.
wealth.
I watch countless.
I watch countless projects with raising Rising costs due.
I watch countless projects with raising Rising costs due to
caveats and barriers to funding agency.
caveats and barriers to funding agency money at the city
and state level.
St.
Stall while holding costs rise.
And some projects eventually die on the vine.
cclf represents a portion of a cdfi collaborative
including iff Lisk alas for community business Greenwood
Archer capital and cic and others at the table with the
city to rethink how we can collectively support Developers.
and low to moderate income communities.
I speak.
I speak for all cdfi and most importantly.
I speak for all cdfi and most importantly the people in the
community.
we have to
We have to do something different.
and the difference has
And the difference has to work.
cclf believes that
Cclf believes that implementing a bond strategy will allow
the city to find more Flex.
the city to find more flexible ways to provide support for
development costs for devel.
development costs for developers of all sizes better
engage.
communities and create an equitable and effective tool to
bring much-needed Capital to disinvested neighborhoods.
Again, we express our support of the housing and economic
development Bond prop.
development bond proposal being considered by the finance
committee today.
Our sincere. Thanks and gratitude for helping.
Our sincere thanks and gratitude for helping us all find
new resolve for our people.
Thank you for allowing the Chicago Community Loan.
Thank you for allowing the Chicago Community Loan Fund to
come in.
Thank you.
Sal
Happy Friday. Good afternoon chair.
Happy Friday. Good afternoon. Chairman Dow and the team
members of the Chicago city council my name.
members of the Chicago city council. My name is Juana
representing P3 markets. Uh, I am here.
representing P3 markets. Uh, I am here to lend my
unwavering support for the 1.2.
unwavering support for the 1.25 million billion dollar
Housing and Development Bond.
Housing and Development Bond wishing that we could increase
that amount I read.
that amount. I read the bond book a few times and I have a
funerals to share number 1 this plan is proactive and not
reactive number.
reactive number 2. It is timely relevant and actionable.
number 3. It is aimed at the growth of our essential work.
Workforce the backbone of the city.
for housing we have demand of 120,000 units, uh, we have to
increase Supply.
uh, let's not be let's be
Uh, let's not be let's be the cause and not the effect.
high quality housing for the city that is Affordable is a
must-have. Not a nice to have
for economic development
For economic development the economic development of
lifting the opportunity infr.
lifting the opportunity infrastructure in areas that have
an imbalance of investment.
an imbalance of investment and optimizing Tiff for this
purpose is a brilliant strategy that is Equitable and
relevant as well.
This this Bond focuses on results. It's going to create
higher amounts of procurement. Which leads.
higher amounts of procurement which leads to job creation
is going to have a higher return and investment.
is going to have a higher return and investment for
increased overall taxes for the city. It is has tremendous
alignment. It can leverage additional investment.
alignment. It can leverage additional investments in this
case up to 3 billion from the uh, corporate and
philanthropic sectors the Ripple of
philanthropic sectors. The Ripple of impact, uh, is what
we're after as well the ROI.
we're after as well the ROI for underinvested areas.
community
Community wealth leads to a sense of ownership it also
leads to resilient neighborhoods.
How can I speak?
How can I speak so valiantly about on the subject or P3?
markets has been at the ground floor for 6 years working
and assisting on both housing and economic development
throughout the city of Chicago.
our work in relation to
Our work in relation to housing and economic development P3
has been a technical assistance provider.
has been a technical assistance provider for the nof
program since this Inception.
program since this Inception and has helped over 20
businesses complete their projects throughout Chicago. I
want to get a shout out to Jim Harbin.
want to get a shout out to Jim Harbin Jones and the NF team
as well as Mr. Ruben WI
team as well as Mr. Ruben wi from summer quarter because
without them we will have not succeeded.
with the nof we are also able to co-create with the
community the first business incubator in Little Village
called eskina.
called eskina, which is under construction and the current
programs have successfully.
programs have successfully created 50 new businesses in
just under 3.
just under 3 years.
I know firsthand that the program attract.
I know firsthand that the program attracts additional
investments from the philanthropic sector, uh, because P3
markets helped Paul write these grants for both Capital
Improvements and entrepreneurial programming. So this this
Bond will track additional investment from corporations and
philanthropy.
philanthropy, um for housing. We have 43 green Phase 1
2. Um, and I just want to tell off some some bullet points
here affordable mixed income.
here affordable mixed income mixies housing.
business Economic Development opportunities Ito D developers
of color job creation and procurement. Those are all nice
things to check off. We check off all the boxes but in
business
but in business we we don't always prioritize the purpose.
maybe that's what makes makes P3 markets different my
business partner Phil Beckham said it here has shared 1
simple goal when we started. Thank you, Mr. Keep it simple.
Thank you.
Got you, uh, George Blake.
got you, uh George, Blakemore
Good afternoon.
good afternoon to um
the members of this committee don't
the members of this committee a present. It's maybe speak
to people and maybe not.
to people and maybe not Economic Development.
in the black
In the black community, I didn't say brown Comm.
In the black community, I didn't say brown commute. I
didn't say age in community. I didn't.
didn't say age in community. I didn't say white community
in the black community.
in the black community is almost no no economic develop.
Development. And for this Bond you had the tip.
and for this Bond you had the tip and that didn't work.
I don't.
I don't think these bonds would work at 1 Point.
I don't think these bonds would work at 1.2, uh billion
dollars.
when you have been spending hundreds and
When you have been spending hundreds and hundreds of
millions of dollars on the illegal immigr.
millions of dollars on the illegal immigrant.
so this
So this is money.
Blood Money
so I could and I would agree with this.
so I could and I would agree with this Bond if I was a
sheriff that 30% of its Economic Development money.
sheriff that 30% of its Economic Development money will go
to the black neighborhood.
Go to the ghetto.
but just
But just putting all this money in the pot.
and and the
And and the banks and you know a bond.
And and the banks and you know a bond me that you are
borrowing money.
It wasn't prudent with t.
why do you
Why do you think that this is gonna work?
Why?
How you gonna make it?
when you you're not prudent with the money you have how you
you spent hundreds of millions of dollars.
on illegal immigrants
It's something wrong here. And what's really wrong here. We
have very poor black.
have very poor black representation.
black FAQ
Black Faces in high places doesn't guarantee you.
Black Faces in high places doesn't guarantee you economic
development in the black neighborhood and we need this
somebody say 10.
about and say 10 of your business evidently black people
have not been tending to their business because you don't
have no fear.
so the game that people play
So the game that people play here. That's why it's very very
important.
important to have a man of Mr. Blakemore.
very important to have a man of Mr. Blakemore caliber the
speed in this.
mind so I am objecting to
Mind so I am objecting to this money coming in until you
can guarantee.
a black community that we
A black community that we will receive.
30% of this money
black faces and high places you can't guarantee that you
will not.
will not prove brutal. Let me be good angry with with the
tip. Why do you think this is gonna work when?
tip. Why do you think this is gonna work when it's the same
political?
political people that you
Doing the same.
Doing the same thing.
And the way you can reason you can get away.
And the way you can reason you can get away with it you
have there for black.
have there for black representation. And then those that do
they don't.
they don't know what they're doing.
They just going along.
They just going along to get along this. So, thank you Mr.
Blake.
Blakemore would like to acknowledge Alder.
Blakemore would like to acknowledge Alderman Hopkins and
Alderman Ramirez. Rosa have joined us.
Alderman Ramirez. Rosa have joined us for our finance
committee meeting.
committee meeting and will be counted towards Quorum Joy.
Our GUI is our next speaker.
Good afternoon. Um.
chairperson Dow, uh members of the finance committee and
other aldermen and uh to our new Commission.
other aldermen and uh to our new Commissioners, uh,
commissioner, uh
Casta and uh commissioner bolt, right?
Um, I'm Joy Arete. I'm the CEO at fur development corpore.
Corporation and also president of the Chicago Housing
Trust.
and president of Chicago rehab Network.
um, Bic
Um bigger Development Corporation is a 55 year.
Um bigger Development Corporation is a 55 year old, uh, not
for-profit Community Development Corporation.
for-profit Community Development Corporation, and we've
produced about 2.
produced about 2,000 um affordable homes for um,
produced about 2,000, um affordable homes for um low-income
people in the city of Chicago.
Um, every person in this room has seen the crisis of
housing affordability in Chicago.
Whether it's tents in the park.
under viadex along the lake shore
under viadex along the Lake Shore or shelters now housing
Asylum Seekers
The need for housing is great.
The Joint Center for housing studies at Harvard documents
that over 50% of renters in the United States
Uh our housing cost burden meaning they're paying.
30% of their income in rent.
Chicago numbers are even uh worse.
Chicago numbers are even uh, worse the default Institute on
housing studies. Uh do uh,
housing studies. Uh do uh has documented that uh cost
burden in Chicago.
burden in Chicago is on the rise both for people. Um,
uh paying more than 30% of their income, but
Uh paying more than 30% of their income, but also severely
housing cost burdened.
housing cost burdened, um individuals in Chicago of which
there are now 58% of Chicago, uh renter of those of that
percentage that are paying more than half.
percentage that are paying more than half of their income,
um on rent,
housing affordability, uh is being lost in
Housing affordability, uh is being lost in Chicago and the
consequences are clear.
we need
We need more affordable housing in the city and to preserve
what we have and for that to happen. We need more tools.
for that to happen
For that to happen. I personally am saddened by the lack of
Passage.
passage of bring Chicago home, which would have brought
more resources.
more resources for um to serve the homeless.
more resources for um to serve the homeless population and
for affordable housing.
tax increment financing
Tax increment financing has been a critical tool in the
financing of affordable housing develop.
financing of affordable housing developments. And uh, but
Tiff, um only reaches
Tiff, um, only reaches, uh, limited parts of the city and
that is where there is a TIF district that's been declared.
And the life of the tiffs are running out.
This is made. Um Pres.
This is made, um preservation of existing affordable
housing projects difficult.
housing projects difficult because most of them are not in
Tiff areas.
the housing Economic Development
The housing Economic Development Bond would create a new
tool for affordable housing.
tool for affordable housing development and preservation.
a youth the using existing Tif dollars to back
A youth the using existing Tif dollars to back the bond, uh
will generate a significant resour.
will generate a significant resource in Chicago, uh over 3
billion dollars, which I think uh is not anything to sneeze
at
Thank you, Mr. Wedding.
Thank you, Mr. Buddy.
um, Kevin Johnson
Good.
Good afternoon. Uh, my name is Kevin Johnson. I'm the lead
organizer.
organizer for our nonprofit based organization.
Families solidarity and here in the cohort and support.
Families solidarity and here in the cohort and support of
the housing bill as well with cedar.
the housing bill as well with cedar or Cedar Round Table,
uh, Chicago equivalent Round Table. Um, I'm going to be
brief. Um, ultimately we feel as if the housing Economic
Development,
Development bond proposal plan is we're in support of it.
Uh, but we feel as if uh,
our big main issues, um surrounding around ultimately what
we're trying to use this proposal for which is specifically
to basically
sub
Put put to the side. Uh Tiff, I think um,
Put put to the side, uh Tiff, I think um Tif funding in our
community. We're based in pilson. Um, we're 1 of the
largest Tiff funded areas in the city.
largest Tiff funded areas in the city of Chicago. Um and
yet for some reason it seemed
yet for some reason it seems as if those Tif dollars are
not being used properly.
not being used properly, um, they're not being used to
actually develop.
actually develop the communities a part of the Tif initials
plan. Um, so this bond proposal we are definitely in
support of for sure. Um, as we believe that this is
absolutely necessity in our communities to be able to
actually guarantee.
actually guarantee to funding um to do the things that we
need,
need. Um, we also want to talk about specifically around
how hopefully this bond proposal is going to help
specifically with the emit imminent, um housing crisis,
specifically with the emit imminent, um housing crisis. Um,
as most people here already know we have a immigration. We
have an immigration housing crisis. That's currently
on in the city of Chicago. We also before the immigration
housing crisis. We already had a housing crisis.
sometimes I feel as if we move on to 1 thing without
remembering
Where we originated and started?
Where we originated and started from um, this housing
crisis has been in Chicago now.
crisis has been in Chicago now since the CIA see a
transformed.
transformative plan was directed over 23 years ago and
still has yet.
still has yet to be produced. Um produced based on the
numbers that that was given a part of their 10 year plan.
Um, we've been going through this now for over decades
the city of Chicago. Uh, it's a
about time that ultem
About time that ultimately this bond proposal hopefully can
get passed and get the proper.
get passed and get the proper support and then actually be
used in the proper way.
used in the proper ways that it should be. Um, I also
believe that within that within me saying that we need to
uh, make sure that we're actually communicating with these
Community organizations.
Community organizations some that are here today others
that are not to make sure that as we start to do as we
start to do the foundational work to actually improve upon
this up.
this upon this, um, housing bond proposal, uh that we make
sure that we're actually listening listening to our
community.
community constituents are nonprofit organizations as well
as these individuals that are actually going through
housing crisis like
housing crisis, like myself, um, doubling up and Etc. Uh,
it's important that we make sure we actually listen to the
Frameworks that we're trying to build in the background
here. Um, and not just basically Overlook the over
opinions from from a lot of the constituents.
opinions from from a lot of the constituents outside of uh,
our committee heads and our ultimate that are here. Um, I'm
going to leave off at that. Thank you very much.
Thank you to won Sims.
Mr Sims
um
Good morning chairman.
Good morning, chairman and committee.
um
100% of the bonds should go to Rossland.
100% of the bonds should go to Rossland, Austin.
Englewood area
Historically. Have you all traveled through?
historically, have you all traveled through these areas?
It's dystopian.
It is.
bombed out and depleted
And y'all say 1 billion? What 1.
and y'all say 1 billion what 1.2 billion? What's the
number?
What's the number?
3 billion. Oh, that's awesome. But still it won't even
at what's happening out in those areas. It won't even chip
at them.
our employee all the um Drive
Our employee all the um Drive start. I'm so I'm right now
in um, the Rossland area. I'm from Rogers Park my eyes have
seen what
have seen what a corridor looks like.
when it's paid into when it's beautified when it's paid
attention to I'm from Rogers Park Lakefront. They just sold
that wait. They just sold the Northpoint buildings for 63
million.
million after they allowed them to be attacked.
million after they allowed them to be attacked assaulted
murdered at the murder just to drop the value, but we ain't
gonna speak about that. Let's go to where I'm at right now.
because if I could walk through this 4 door and actually
imagine it to look like Howard Street or walk through this
corid.
Corridor and actually see it as Divine Avenue. I
Corridor and actually see it as Divine Avenue, I would feel
somewhat comfortable.
But I don't and I won't.
and for 3 billion
And for 3 billion that won't even chip at it madam.
the money that they gonna take
The money that they gonna take is we not going to see a
dollar of it.
A dollar of because it's right now organization strug.
A dollar of because it's right now organization struggling.
struggling
they on a tiff and what is that the um the nof
They on a tiff and what is that the um the nof all of these
things are appropriated to the in these.
things are appropriated to the in these General directions,
but they don't even
I could not look.
and I'm not a
And I'm not a finance man. I'm just a a simple man. However
when you
However, when you live in degradation, it's like whoa.
And I imagine what the children walk through every day. So
I employ y'all come down Michigan today.
Today right and y'all just started at 100 and go.
today, right and y'all just started at 100 and go to 119 in
Michigan turn back around because you gonna be distraught
after that.
At that point you will be distracted. You're going to have
you're going to suffer probably some mental issue.
because every day
Because every day that I walk outside. I'm Amazed.
Amazed because remember I grew up in Rogers Park.
In the 49th Park where Maria had to don't want me.
In the 49th Park where Maria had to don't want me no more.
So I'm saying that won't y'all just send the money this way
that way y'all won't have to deal with black people in
these areas that y'all don't want them in.
allow us some
Allow us some decency some lift some decent living forget
affordable.
affordable housing.
We need housing period I'm homeless.
We need housing period I'm homeless right now speaking in
this mic. I've been waiting on shelter for 90 days.
this mic. I've been waiting on shelter for 90 days, but
that's not speak about this. Let's talk about this money
y'all.
y'all talking about because y'all here arguing us once
again.
Trying to allocate funds to help.
Trying to allocate funds to help them black or help what
but no.
Let's send all that money over and then we can revital.
Austin.
Englewood Rose land
we can help.
we can help these black people. Thank you Mr. Sims.
Chris White
Thank you so much.
Uh, my name is Chris.
Uh, my name is Chris White. I am the facilitator for the
Citywide.
Citywide Equitable development Roundtable in addition to
our monthly meetings. We have a newsletter that reaches
over 500 organizational leaders throughout Chicago.
We are in strong agreement that the current Tiff.
We are in strong agreement that the current Tiff system is
unworkable and cumbersome.
unworkable and cumbersome and inequitable and we have the
same opinion about Tiff and the development process. Sorry
about the
about that.
the
so, but the
so but these changes need to come with a major upgrade in
the quality of our community process when Community leaders
take time to come.
take time to come to public meetings about developments.
They are not there to be.
They are not there to be window dressing. They are not
there to be rubber stamped.
there to be rubber stamps. They expect and demand good
faith negotiations.
faith negotiations around what the community needs are.
in addition, we think the following items are
In addition, we think the following items are essentially
considerations around every single develop.
considerations around every single development decision.
racial equity and environmental justice assessments
diversity and inclusion
good jobs for local
Good jobs for local residents affordable housing and
shopping.
shopping access to healthy food and development without
displacement. Thank you.
Thank you. Uh Rocio cud.
Thank you. Uh Rocio qudra. I'm sorry if I pronounced
mispronounced the last name.
Good.
Good afternoon, everybody. Um, my name is Rocio kadia.
am the um Community organizer for development.
am the um Community organizer for development at the
alliance of southeast.
So
I'm here to represent a committee committee members from
the community benefits agree.
the community benefits agreement for a Galleria 89 which
was a development that was designed to happen this year.
through Southwest invest but um, I guess the funds just
haven't reached it right I grew up in pilson. Um, I mean I
grew up in little
grew up in Little Village and I live in pilson, but I work
in South Chicago now.
the disinvestment in South Chicago is
The disinvestment in South Chicago is Dyer.
Um, there's a real need for economic development without
displacement in that.
displacement in that area. There's nowhere for you to go.
displacement in that area. There's nowhere for you to go to
a bowling alley. There's no arcade. There's no family
venue. These folks have been working.
venue. These folks have been working for at least a year
and a half.
on trying to um
get this development.
Get this development to happen, right because they have
seen such.
seen such grave disinvestment in South Chicago. This is on
89th.
89th and Commercial.
Um, and I'll be honest with you I didn't.
Um, and I'll be honest with you. I didn't even know.
um that
Um that Lakeshore Drive went that South. Um, and when you
go out there you see that this investment.
go out there, you see that this investment that this
gentleman is talking about
Um Our Lady of Guadalupe parish. Is there 1 of the oldest?
Um Our Lady of Guadalupe parish. Is there 1 of the oldest
parishes? Um Mexican parishes in the city.
um also some of the oldest
Um also some of the oldest African-American churches,
right?
and
And what I'm hearing from the committee is they want to
support this.
support this Bond because Tiff has failed so miserably.
There are healthy tips right like in pilson where?
There are healthy tips, right like in pilson where where
that money actually goes to develop.
that money actually goes to development and all the tax or
property taxes increase and there's development there.
but in
But in South Chicago, there's nothing. Um, AJ patent is our
develop.
developer. We've been sitting with him agreeing about
affordable housing.
60% Ami is not affordable in South Chicago 30.
60% Ami is not affordable in South Chicago 30% Ami is I know
the city of Chicago calls out affordable. That's not the
reality for a lot of people.
We want to support the bond because its hip.
We want to support the bond because it's hip has failed. So
miserably, but please consider Community benefit.
agreements and listening to the leaders in the community
about what their real needs are.
We need real affordable housing with real union jobs.
Thank you.
Thank you our last speaker today, uh before we go to.
Thank you our last speaker today. Uh, before we go to the
last speaker. I want to acknowledge all the men spas.
is on remote
And uh, yes, gotcha. And our last speaker is Arnold
Bradford.
Good afternoon.
Chairman Dow good seeing you.
Chairman Dow good seeing you same here.
Good seeing all of our
good thing all of our Representatives all of our
Good, seeing all of our Representatives all of our aldermen
alderwoman.
And this finance committee. This is probably 1 of the most
important.
important committees in the city of Chicago because you
deal with money.
And money is the blood of this city. It's the thing that
allows us to grow.
allows us to grow and to move forward.
Now you've heard people talk about the Tif.
The Tif monies were very tight.
And Tiff is now going down.
And Tiff is now going down if I can show a chart here. The
Tif money is going down.
Tif money is going down and now we've got the bond money.
But see I'm concerned as a resident I'm with.
But see I'm concerned as a resident I'm with uh, I've
served with a number of organizations.
served with a number of organizations, um with Citywide
Equitable development round.
Equitable development Roundtable Crossroads collaborative
the alliance of the southeast and on and on it goes, but
I'm concerned.
concerned about credibility. We've been going up and down.
since the 50s. I'm old. I seen this before I've
since the 50s. I'm old I seen this before I've seen
displacement.
in the city of
In the city of Chicago from down on 31st Street.
in the city of Chicago from down on 31st Street, and
they've been displacing people from 1 in the city to the
been displacing people from 1 in the city to the other.
We've had some people talk to the issue here. You know, how
these communities have literally disintegrated Englewood
Roseland South Chicago and on and on it goes
please
we need you to think about.
we need you to think about not just the money.
But the process how are you going to use this?
But the process how are you going to use this money?
Think about that. We're not saying that we don't want the
bonds, but you know that's debt.
You do know that right, you know.
you do know that right, you know about the debt before the
debt before and the debt before and the refinance, you know
about all that, right? That's how we got to this point. So
I'm going to implore you as our elected representatives,
please.
can not
Can not only consider the money but the process.
Can not only consider the money but the process consider
these people that are sitting here. We're
these people that are sitting here we're residents.
some of us worked in government
Some of us worked in government. Some of us were Executives
some of
Executives. Some of us just are here. We're living our
lives every day.
but you are going to impact all
But you are going to impact all of us.
you and you and
You and you and you and some of you I know from before
you've worked very hard.
you've worked very hard to get to this point. You've done a
lot of work.
lot of work and we appreciate you but now we have to move
forward. So as you look at this.
forward. So as you look at this Bond money.
debt
think about how it's going to impact all of
Think about how it's going to impact all of our distressed
communities across Chicago. I'm Arnold Bradford. They call
me Mr. B. I hope you consider that thank you very much. And
you have a wonderful afternoon.
Thank you very much. So that ends our public comment.
Thank you very much. So that ends our public comment period
and uh
For the I want to also say that uh, we've received.
For the I want to also say that uh, we've received numerous
written comments from various.
written comments from various housing providers and
advocates for the pro for the bond ordinance. Um, they were
sent elect.
sent electronically to everyone and I'm not going to read
off.
off the names of all of the uh letters that we've received,
but we will enter this list into the public record along
with their uh,
written comments to us, uh, just to say time this
afternoon.
All right.
and for the record I just
And for the record, I just want to go over.
what has the
What has occurred? Um
So as I previously stated.
So as I previously stated the committee on finance is going
to hold the subject matter.
to hold the subject matter hearing today to discuss the
proposed Bond ordinance.
And allow for everyone.
And allow for everyone here to ask questions to the various
departments.
departments the committee of Finance filed the notice and
agenda for this meeting on March 15.
agenda for this meeting on March 15th and the city clerk
posted the notice and agend.
posted the notice and agenda shortly thereafter.
in addition as part of our committee procedure for all of
our meetings the committee on finance sent out the notice
agenda for today's meeting to all Alderman on March 15th.
the email was sent to the preferred email addresses that you
all provided to us in June of 202.
all provided to us in June of 2023.
If that email address.
if that email address is not the appropriate email address
for you or if you prefer another email address.
Please let me know so I can make those changes.
Please let me know so I can make those changes in our
records. I want to thank.
records. I want to thank the council service division who
also.
also emailed and posted this meeting on Bulletin.
also emailed and posted this meeting on bulletins on March
15th. The updated calendar.
15th. The updated calendar with today's meeting is listed.
We all sent also sent out.
We all sent also sent out reminders, uh to yesterday's to
today's meeting yesterday.
Um we have
Um, we have emailed all all the men a packet of
information.
which includes a 1 pager.
which includes a 1 pager on the bond ordinance a 1 pager on
DP.
dpd allocations through the chair responds.
dpd allocations through the chair responses from the bond
briefings that were held on March.
briefings that were held on March 7 7th.
the oversight pamphlet on Housing and Development Bond
programs and pro project selection details we gave you.
list of all of the Tif districts and their up,
list of all of the Tif districts and their upcoming
expiration dates. We gave you the financial model the
ordinance the exhibit a and the Eds
um the presentation of the slide deck and all written
comments that we received as of today.
um to begin this hearing
Uh, we will have opening.
uh, we will have opening remarks from commissioner
Boatright from the Department of planning and development.
commissioner Castaneda from the Department of Housing
and Jill Jaworski our Chief Financial Officer of the
finance department.
And with that, I think I'll go.
and with that, I think I'll go from my
I'll start with you Commission.
I'll start with you commissioner Boatright because I called
your name first Jewel.
your name first July good afternoon chair and members of
the committee for the record. I'm Sierra Boatright the
commissioner for the Department of planning.
Development. I'm pleased to join you in support of the
proposed.
proposed Bond given its wide ranging impact on the city's
planning goals and economic development strategy.
planning goals and economic development strategies,
Michael.
You'll be hearing.
You'll be hearing a lot about the ban the bonds potential
uses implement.
uses implementation and monitoring needs today. I want to
use my brief.
use my brief time to underscore the Citys capacity.
administer it effectively and responsibly through d.
administer it effectively and responsibly through dpd and
dooh in coordination.
dooh in coordination with city council as you may be aware
DP.
dpd was substantially reorganized and re recent years.
emphasize coordination between cities planning regions our
Economic Development tools and many public agencies that
provide services to Residents and businesses as a result.
We
position to provide sustainable support through a variety of
Position to provide sustainable support through a variety of
tools and resources including Bond.
tools and resources including Bond proceeds through the
recent Chicago recovery plan as well as the potential
housing and economic development.
housing and economic development Bond being discussed today
from Project applic.
from Project applications to project selection to Grant
dispersement to monitoring and compliance. We are prepared
to administer.
to administer this bond in a strategic Equitable and
fiscally responsible manner, especially where there is an
absence of alternate funding sources.
absence of alternate funding sources like Tiff.
some examples of
Some examples of the roughly 100 million dollars in
Project.
assistance that we've allocated through the recovery plan.
Bond includes projects like Austin Market.
Bond includes projects like Austin Market a youth-led
produce market on Laramie.
produce market on Laramie Avenue and Austin Comfort Dental
on 18.
on 18th Street in pilson and the Esperanza health
on 18th Street in pilson and the Esperanza Health Center on
California Avenue in Brighton Park.
of course where Tiff is an option we will also be
Of course where Tiff is an option, we will also be able to
leverage it as an additional tool along.
leverage it as an additional tool along with the
neighborhood opportunity fund tax in.
neighborhood opportunity fund tax incentives plan and
funding sources from do and other departments to help
catalyze investment.
catalyze investment where it's needed most including for
Equitable trans.
Equitable Transit oriented development such as along the
red line EXT.
red line extension climate infrastructure and other efforts
that support the city's most vulnerable residents.
that support the city's most vulnerable residents in
closing the bond will be a game-changer.
closing the bond will be a game-changer for the city.
in the city
And the city's most vulnerable communities.
I look forward.
I look forward to a collaborative community-based approach.
I look forward to a collaborative community-based approach
towards this Administration with City.
towards this Administration with city council. Thank you.
Thank you commissioner want
Thank you, commissioner wanna acknowledge, uh Alderman Hall
who is joined us.
who is joined us and will be counted towards Quorum and
Alder.
Alderman Lawson who has joined us, uh as a nonmem.
Alderman Lawson who has joined us, uh as a non-member
commissioner Castaneda castan.
good afternoon is seen members of
Good afternoon is seen members of the council and chair
dowel. I am Lisa cast.
dowel. I am Lisa Casta and as the commissioner of the
Chicago Department of Housing.
Chicago Department of Housing, it is both an honor and a
privilege to stand before you.
privilege to stand before you today to discuss this
initiative the effects of which will shape our city for
generations to come.
For a brief moment. I'd like to take you back to just 3
years ago during 1 of the most.
years ago during 1 of the most challenging periods in
recent memory when this department.
recent memory when this department boldly stepped forward
with a Monumental investment.
with a Monumental investment of 1 billion dollars towards
affordable housing and
affordable Housing and Community Development.
in the
In the face of adversity the city Rose to the occasion.
leveraged more than 90 million dollars of the Chicago.
recovery plan bond funds to enable 24 devel.
recovery plan bond funds to enable 24 developments and 24.
2,428 units of affordable housing to our residents.
CRP bond funds also supported homelessness Services
decarbonization efforts and much-needed services like our
down payment.
down payment assistance, which is closing on its last
couple of Grants.
couple of Grants as we speak.
And the small accessible?
And the small accessible repairs for seniors program, which
just this?
just this quarter spending its last CRP dollar.
just this quarter spending its last CRP dollars installing
accessibility ramps and wheelchair.
accessibility ramps and wheelchair lifts for low-income
homeowners.
The city's 2021 investment was not just a financial
commitment.
It was a promise to our community a testament to our resil.
resilience.
Today as we stand here in this.
Today as we stand here in this chamber every dollar of Doh.
193 million allocation of CRP bond funds has been
obligated.
over half that are associated with projects have
Over half that are associated with projects have shovels in
the ground right now.
the ground right now or are already finished.
today as
Today as we stand on the precipice of a new era we once
again.
again find ourselves at a Crossroads the 1
again find ourselves at a Crossroads. The 1-time recovery
funds have been allocated and what remains is earmarked for
projects already in our pipeline.
I know that even as these words.
I know that even as these words leave my mouth the need for
affordable housing in our city remains as pressing as ever.
This is why we have to come together for this.
economic development bond this 5-year 1.25.
economic development bond this 5-year 1.25 billion
initiative aimed at continuing our investments.
initiative aimed at continuing our investments in
affordable Housing and Community Development Across.
affordable Housing and Community Development Across the
city.
with this new Bond the department of
With this new Bond the Department of Housing aims to
allocate over 36060.
allocate over 360 million dollars towards affordable rental
housing alone.
Just imagine what this means for our city.
It means over 1600.
It means over 1600 new affordable housing units providing
safe and stable.
safe and stable homes for families in need. It means
supporting.
supporting 2,000 homeowners empowering them.
supporting 2,000 homeowners empowering them to achieve
their dreams of home ownership and build.
their dreams of home ownership and build wealth for
themselves and their communities.
And it means dedicating over 20 million dollars to the
preser.
preservation of single room occupancy units.
preservation of single room occupancy units ensuring that
our most vulnerable residents have access to dignified
housing options.
It is no secret that Chicago has long faced a shortage of
affordable housing units.
in 202
In 2024 that shortage stands at a staggering 120.
In 2024 that shortage stands at a staggering 120,000 units.
but with the launch of this Bond we
But with the launch of this Bond we are not just addressing
a statistic. We are taking concre.
addressing a statistic. We are taking concrete steps
towards creating a city that is inclusive.
towards creating a city that is inclusive Equitable and
compassionate with this Bond. We will see another 5,400
units or more.
units or more built preserved or homeowner supported.
units or more built preserved or homeowner supported to
stay in their homes bringing us closer to being
stay in their homes. Bringing us closer to being a healthy
City.
this in
This initiative is about more than just bricks and mortar.
It is about building.
It is about building communities fostering opportunity and
ensuring that every resident of Chicago has a chance to
thrive.
thrive today and tomorrow it is about invest.
thrive today. And tomorrow. It is about investing in our
future leaving a legacy of Prague.
future leaving a legacy of progress and prosperity for
generations to come.
Thank you.
Thank you commissioner.
Chief Financial Officer Jaworski
dear dowel alderman alderwoman
Good afternoon.
I'm pleased to be here today.
I'm pleased to be here today to discuss the proposed
ordinance authorizing the issue.
ordinance authorizing the issuance of General obligation
bonds for housing and economic.
bonds for housing and economic development projects.
the city has
The city has long used Tax increment financing districts to
fund much.
fund much-needed Housing and Development needs in the city.
as described by my colleagues here today Tiff dollar
As described by my colleagues here today Tif dollars have
funded many projects, but it's a flawed.
funded many projects, but it's a flawed instrument both
because of the limitations on the use of funds and the
geographic limitations.
geographic limitations of where those funds can be spent.
if we look at the 121 Tiff Tiff sticks that exist in the
city today, we have Tif districts that do.
city today, we have Tif districts that do not produce
enough to make critical Investments.
enough to make critical Investments and tips that produce
so much excess that the city.
so much excess that the city will Surplus more than 400
million this year.
million this year to CPS the city and other taxing bodies.
I remember when Mayor Daley.
I remember when mayor Daly used to say that Tif was our only
economic develop.
only Economic Development tool.
some of you might remember
Some of you might remember this well, too.
It is a tool.
But it's just that it's a tool. It's not the only tool.
because of the enthusiasm for tiffs over
Because of the enthusiasm for tiffs over 20 years ago, we
now have a very large.
now have a very large critical mass of tiffs that are
expiring.
expiring this year and over the next 3 years.
We have an opportunity to let these tips expire.
We have an opportunity to let these tips expire and put
that increment back on the property tax.
that increment back on the property tax roles for the city
CPS the park.
CPS the park district city colleges and all the other
entities.
entities that rely on property taxes here in the city.
When that Tiff property value goes back on the tax roll.
When that Tiff property value goes back on the tax rolls.
It isn't for 1 year.
that increment
That increment will produce property taxes next year.
each and every year after that.
This is exactly.
This is exactly what the rating agencies keep telling us we
need.
We need recurring revenues not 1.
We need recurring revenues not 1 shots.
the property tax
The property tax increment that the city will receive each
year as we see many.
year as we see many tips expire will come into our
corporate fund.
can be used for multiple purposes
this ordinance proposes using some of that increment.
some of the incremental new and recurring revenues
Some of the incremental new and recurring revenues for
housing and economic development projects.
To make the investments in the city that the city needs to
provide.
provide housing security to Foster economic growth.
provide housing security to Foster economic growth and to
make Chicago a better City 1 that is closer to our ideals
than it is today.
My office has been analyzing.
My office has been analyzing this proposal since last
summer. I am fully in.
summer. I am fully in support of this plan.
the expiring test
The expiring test will generate enough Revenue to pay for
the new debt.
the new debt service and to still provide for additional
funds for our corporate budget.
We have made conservative assumptions in.
We have made conservative assumptions in modeling the debt.
We assumed a level debt structure. We assumed higher
interest rates and we assume that not all the tips will
expire.
My team and I are comfortable that this will not harm.
city's financial position.
This financing plan does not impair our ability to fund our
Capital Improvement plan.
to service our existing
To service our existing debt or to fund our pensions.
we
We do not expect this program to negatively impact our
bond.
ratings because we are paying the debt with recurring
revenues.
fundamentally this program allows us to shift our
investments in the city from being Tiff funded to being
funded out of our corporate fund.
It moves incremental property tax revenues.
districts to our corporate fund to pay for those
investment.
Investments.
most importantly and in conclusion passing this ordinance
will allow the city to keep investing in our neighborhoods
more of our neighborhoods than we can invest in today and
have greater flexibility to meet the needs of our
residents.
I believe it's time that we use a New Economic Development.
tool for our great City.
Thank you for granting me the privilege of speaking here
today, and I look forward to.
today and I look forward to answering your questions.
thank you all for
Thank you all for your overview of this proposed Bond.
Thank you all for your overview of this proposed Bond
ordinance and I'll just ask you if you could.
ordinance and I'll just ask you if you could go back in the
box since remain with.
box since remain with us because we're going to have some
questions and we're going to open.
questions and we're going to open the floor up to
questions. Not now.
not now, uh, but after uh, Daniel her.
not now, uh, but after uh, Daniel Herz and Tim Jeffries
from the Department.
from the Department of planning and development and the
Department of Housing.
Department of Housing respectively.
uh give their present
Uh, give their presentation. We'll open it up for questions
Mr. War.
Mr. Warski you can I think I'm going to do a few of the
slides.
Mr. Warski you can I think I'm going to do a few of the few
of the slides. Okay, unless you guys want to do the
financing side.
I offered them training on the financing.
I offered them training on the financing part if they come
in my department.
And we've already begun generating.
And we've already begun generating the list. So, uh
Put your hands up. Gotcha. Gotcha. Gotcha. Oh everybody.
Um, who's starting? Go ahead Daniel? Let's go.
good morning, Cher dowel and
Good morning, Cher dowel and good afternoon. Good
afternoon. That's right. Thank you for the correction.
Good.
afternoon.
chair dowel and members of the committee on finance
Chair dowel and members of the committee on finance. My
name is Daniel Herz director of policy.
name is Daniel Herz director of policy research and
legislative affairs at the department of
legislative affairs at the Department of Housing. I'm also
joined today by Tim Jeffries.
managing Deputy Commissioner at the department of planning
and Development. Um as well as Jill Jaworski the
Chief Financial Officer.
We're here today to provide an overview of the proposed
authorization of General obligation bonds that will be used
or proposed to be.
or a proposed to be used to support the city's ongoing
investment.
in housing and economic development projects across
city.
As you know, uh today we're talking about.
As you know, uh today we're talking about a proposal to
authorize 1.25 bill.
authorize 1.25 billion dollars in bonds over 5 years.
authorize 1.25 billion dollars in bonds over 5 years to
continue these investments in housing and
Development projects.
as we'll show
As we'll show in much more detail later in the
presentation. This is necessary now, uh because of
structural declines in the sources that have historically
supported these invest
supported these Investments and which are already
reducing do and dpd production.
Importantly this proposal can be imple.
Importantly this proposal can be implemented with without a
property tax increase or any other tax.
property tax increase or any other tax increase by using a
fraction of the revenue.
fraction of the revenue returning to the city from expiring
Tif districts over.
Tif districts over the coming years.
this proposal also includes accountability and oversight
Provisions the bond ordinance restricts any Administration
from using Bond.
from using bond funds for anything other than the eligible
uses outlined.
uses outlined by the Ordnance. Um, and any other spending
would be legally forbidden without a vote by Council.
in addition dpd and do
Are committed to bi-annual reports and hearings on spend?
progress and a public-facing bond?
progress and a public-facing bond project portal built on
the existing Tiff portal?
if approved this Bond authorization
If approved this Bond authorization would establish a
long-term source of flexible.
long-term source of flexible and more Equitable funding to
address operations ISS.
address operations issues in our 2 departments and housing
and economic development.
and economic development needs across the city.
um as
sad, uh to repeat myself 1 more time.
sad, uh to repeat myself 1 more time heart of the proposal
here is a 1.25 billion.
here is a 1.25 billion dollar Bond authorization The
Proposal more specifically is to split those proceeds, uh
evenly between the department.
evenly between the Department of Housing and dpd
allocating.
125 million per year per department or 625 million per
Department over.
Department over the full 5 years.
the bond ordinance outlines the eligible
The bond ordinance outlines the eligible uses of these
funds will discuss those uses.
funds will discuss those uses and proposed allocations in
more detail in a moment. Um, but I also want to emphasize
again what I said on the previous slide that uh, no
Administration would be able to spend these dollars on
General funds or on any other uses without authorization
first from City.
first from City Council.
Um, I'll also note that substantially more debt.
Um, I'll also note that substantially more detail, um on
basically everything that we're talking about.
basically everything that we're talking about today is
available in the bond book that was published.
available in the bond book that was published last month at
Chicago.
goventure
the next uh, 2 or 3 slides get into more detail on the
proposed allocations for each department.
On the housing side. The bond allocation is split into 3
major.
major categories affordable rental Housing Home Ownership.
and homelessness.
most of our affordable
Most of our affordable rental housing dollars will be
allocated to our traditional mult.
allocated to our traditional multifamily Finance
initiatives providing Gap financing.
initiatives providing Gap financing for low-income housing
tax credit new construction and preservation projects.
additional funds will
Additional funds will go towards a new green social housing
revolving fund.
revolving fund and multifamily resiliency retrofit program.
making existing buildings more energy, efficient and
reducing utility costs.
Home ownership dollars will primarily go to home repairs.
for low and moderate income homeowners and seniors.
as down payment assistance for new home buyers.
Other Home Ownership funds are allocated to rehab.
vacant and abandoned homes as well as a home repair
retrofit program.
Finally the homelessness allocation will allow the
existing.
Finally the homelessness allocation will allow the existing
SRO single room occupancy preservation fund.
SRO single room occupancy preservation fund to continue in
order to prevent that type of naturally occurring
affordable housing which often serves the most vulnerable
in the city from being lost.
in terms of the economic development allocation that dpd
will manage the significant majority of funding will go to
work that they are already engaged in today. This includes
400 to 500 million.
400 to 500 million dollars in funding for 3 Program tracks.
of the Community Development grant program up to 250,000 for
smaller project up to 5 million for more Neighbourhood
scale projects and more than 5 million for larger catalytic
developments.
developments in all it's expected that these funds will
result.
result in the development of more than 400 projects.
That said dpd ALS.
that said dpd also intends to use funds to expand into
areas that have clearly defined needs, but that have been
Limited.
limited giving our given our existing funding sources. This
includes creating a pre-development grant program that will
help projects in areas that disproportionately struggle.
with access to Capital challenges.
with access to Capital challenges develop their ideas into
actual projects.
it would
It would also include the creation of a revolving fund that
would deploy.
would deploy low-cost loans in order to attract and retain
businesses.
businesses that represent the next generation of Chicago's
econ.
economy.
Finally dpd is also.
Finally dpd is also exploring new development models for
building clustered missing.
building clustered missing middle housing on city-owned
land.
in close proximity to commercial corridors
That would not only.
That would not only stabilize individual blocks, but also
establish.
establish a customer base for nearby businesses.
altogether
Altogether these Investments add up to more than 5,400.
homes created preserved or homeowners or home buyers.
supported more than 540 small and emerging businesses
receiving investments from the city.
That's the result of the 1.25 billion.
That's the result of the 1.25 billion dollars in this Bond
issuance leveraging another.
issuance leveraging another 1.75 billion conservatively in
other sources for a total of more than 3 billion.
other sources for a total of more than 3 billion dollars in
investments in housing and economic development.
investments in housing and economic development in
Chicago's communities.
We know a major.
We know a major question from Council as well as the
public.
We know a major question from Council as well as the public
is how will the projects funded by the bond be selected and
how will we ensure an equitable distribution of those
projects across the city?
after all 1 of the most uh important
after all 1 of the most, uh important advantages of bond
funds over Tiff is its Geographic flexibility.
the fact that we can focus on the most impactful projects
without having to consider whether they're on the east or
west side of the street to be eligible for Tiff grants.
Importantly, these bonds would be a funding source. Not a
program on their own what that means. Is that most
program on their own what that means is that most of these
dollars will be invested through existing programs.
dollars will be invested through existing programs that
have established selection criteria.
and processes that have been shaped over time by
And processes that have been shaped over time by feedback
from council members and other stakeholders.
for example our multi-family
For example, our multifamily finance funds will mostly go
through doh's qualified.
through doh's qualified allocation plan, which is a
federally required competitors.
federally required competitive process for jurisdictions
that allocate low-income.
that allocate low-income housing tax credits the qap.
that allocate low-income housing tax credits the qap weighs
a number of criteria in judging an application.
such as the amount of affordability the cost-effectiveness
of the project whether the project serves High needs
population or whether it promotes community.
population or whether it promotes community redevelopment
creates affordability, uh or creates a
creates affordability, uh, or creates affordability in
communities facing a severe or growing lack of affordable
housing.
on the dpd side the largest single program Community
Development grants will continue to use the universal
application.
application and scoring rubric which evaluates projects
based on their locations and priority Geographic areas.
General project Readiness demonstration of financial need.
demonstration of community benefits among others
For Bond alloc.
for bond allocations to new programs that don't exist
today. Those programs will need to establish new processes
and criteria and we'll substitute subsequently B sub.
and criteria and we'll substitute subsequently be subject
to council approval.
Um, I also want to note that dpd and do have provided.
materials both electronically and should be printed at your
seats.
with much more detail about the selection criteria and
processes for each of the allocation areas of the bond in
addition to the examp.
addition to the examples. I just went through
we have also had convers.
we have also had conversations with many of you about the
importance of oversight.
importance of oversight and accountability with respect to
the use of these bonds.
the use of these bonds over their lifetime.
perhaps most important
Perhaps most importantly and I've already sent it but I'll
say it again. I want to emphasize that the ordinance
sitting in this committee today.
sitting in this committee today contains strict
prohibitions on this Administration.
prohibitions on this Administration or any other
Administration using these Pro.
Administration using these proceeds for anything other than
their intended purposes.
What that means is that under the law no money can be.
What that means is that under the law no money can be used
for anything other than the eligible uses listed in.
for anything other than the eligible uses listed in the
ordinance.
or by any Department other
Or by any Department other than dpd and do without City
Council.
council voting to allow that.
in addition
In addition do and dpd are committing to regular reporting
and account.
and accountability on the spending of these funds are 2
Department.
departments will make bi-annual reports to the committee on
finance.
finance and will be present at committee to respond to
questions.
questions and hear feedback on the progress of to that
point.
finally the existing Tiff portal will be expanded into an
incentive portal that will show Bond funded projects
including in project information.
including in project information in alignment with the Tif
Sunshine ordinance.
This will be a completely public-facing resource.
this will be a completely public-facing resource to ensure
that all of you in the room as well as all Chicagoans can
review how those bonds are being used.
review how those bonds are being used at any time.
while that generally covers the
While that generally covers the functionality of the
proposed Bond issuance. It's also critical.
proposed Bond issuance. It's also critical to understand
the reasons that make this proposal. Not just a
the reasons that make this proposal not just a significant
operational opportunity, but also a financial necessity to
cover those issues. I will turn things over to my colleague
Tim Jeffries.
Uh, thank you Daniel for the record to Jeffrey.
Uh, thank you Daniel for the record to Jeffrey managing
Deputy Commissioner in the department of planning. Um as
Daniel,
Tim could you move the mic closer to your
uh is Daniel mentioned this proposal is heavily linked with
tax in.
tax increment financing or Tiff. Um, I think everyone here
is aware of Tiff and understands that uh while it can be
controversial. It's also the city's most well-utilized and
important fun.
important funding source for how for funding housing.
economic development projects, uh, just to give you a sense
of how important though, uh over the past 4 years the comb
combined annual allocation to D dpd and do has been more
than 311 million per year.
Uh that said Chicago's Tiff.
Uh that said Chicago's Tif program is at a clear inflection
point uh with a significant.
point uh with a significant number of districts set to
expire over the next few years. Um, specifically there's
almost 20 District.
almost 20 districts currently scheduled to expire before
the end of this year.
the end of this year and a total of 47 districts set to
expire through the end of 2027 that represents nearly 40%
% of all currently active tiffs in Chicago and those
districts currently generate more than 330.
districts currently generate more than 330 million dollars
in annual revenue.
Uh, that means when the when we turn the calendar into uh
into January 1st of 20.
into January 1st of 2028, the city will no longer have
access to an amount of funding greater than dpd. And doh's
current.
current annual allocation.
uh, the
Uh, the expiration of that many districts is going to have
a profound impact.
a profound impact on how the city funds uh, housing and
economic development.
economic development projects, uh, most immediately the
Steep decline in program Revenue means that there will be
fewer and fewer resources.
fewer and fewer resources available, uh, which will respond
result in a correspond.
result in a corresponding decline in our ability to make
investments in housing.
investments in housing and economic development projects.
and while this Revenue loss
And while this Revenue loss is obviously a critical issue
even more problematic is the fact that when a TIF district
does expire the city loses.
does expire the city loses the ability to spend any Tif
funds in that.
funds in that area. So while Tiff will continue to remain a
resource to the city the areas where where it can be used
will get progress.
will get progressively smaller and the program less
impactful.
Uh the map on the right here shows what that impact?
Uh the map on the right here shows what that impact of
those pending expirations will look like on a city-wide.
basis. The darker red districts will expire. Um,
basis. The darker red districts will expire um at some
point before December 31st of 2027.
point before December 31st of 2027 and the lighter Reds
will expire at some point between 202.
will expire at some point between 2028 and 2031 as you can
see. This is an issue.
see. This is an issue that impacts every part of the city.
um, and while we do have the ability to extend some of these
tips, uh, we don't believe that this is a holistic solution
to the ISS.
to the issues, uh, that's in part because there are first
is that there's so many districts expiring and the state
has historically limited the number of extensions that they
are willing to consider.
uh more importantly though is that Tiff has
Uh more importantly though is that Tiff has very real
limitations on how it can be used.
limitations on how it can be used and that that impacts its
overall effectiveness. I mean to be clear, uh, Tiff is a
powerful tool and it has invested millions in meaningful
projects across the entire city, but there's still clear
operational issues.
operational issues that limit what it can and cannot do uh,
perhaps the largest is that tips function in frankly
inherently.
inherently inequitable manner where the parts of the city
that have the the highest levels of disinvestment and the
greatest need received.
greatest need received the the least amount of funding, uh,
the dynamic of that means that right now we're sitting in
Los South Central. Uh, that's a TIF district that generates
more than 180.
more than 180 million dollars a year, but we have the
Avalon Park Southshore.
Avalon Park Southshore TIF district that generates 800,000
dollars a year or the 107th in Hallstead if the generates
them
Those that level of funding it's simply.
Those that level of funding it's simply not enough money to
support uh dpd.
support, uh dpd and do typical projects that we have. Uh,
and since resources aren't available. That means projects.
Don't move forward.
don't move forward and that means the cycle of
disinvestment.
Um additionally even when funds are available.
um, additionally even when funds are available Tiff is rigid
and inflexible, especially when it comes to its eligible
costs and these are legal rest.
costs, and these are legal restrictions enshrined in the
state's Tiff act these restrictions.
state's Tiff act these restrictions are continually
frustrating because they limit the kinds of projects that
we can pursue for example vertical Construction.
we can pursue for example vertical construction costs. They
simply aren't allowed under the Tif fact we can't use
funding in that manner. That means that we could have a
grocery operator interested.
grocery operator interested in opening a location and if in
a neighborhood experience experiencing food insecurity on a
vacant lot but we
vacant lot, but we would have very limited recourse to fund
that project because it doesn't align with the with the
rules and regs of the Tif act this creates a misalignment
between the things that we can do and the needs that we
actually have to deliver in our communities.
uh and
uh, and finally, uh while the geographic limitations of
Tiff do have some benefit it also results in coverage gaps.
uh of places where we can and cannot pursue projects.
uh of places where we can and cannot pursue projects, uh
for members of the public including businesses.
boundaries can feel arbitrary and even unfair when their
next door neighbor is eligible for the spiff program, but
they aren't um boundary amendments are possible but their
expensive and they take more than a year.
expensive and they take more than a year to to get through
the approval process. So the functional result is that we
have parts of the city where we have no Financial Resources
to pursue projects of any kind.
um, and when you take all of these factors together, uh,
this results in the the city simply being able to uh,
pursue unable to pursue development projects that the
community all of your offices and our departments agree
Prov.
provide significant benefits because uh is located outside
of a TIF district or because it the Tif doesn't generate
enough Revenue to to support the project or because the
project doesn't have enough eligible costs.
each of those
Each of those however is not a factor when we're discussing
Bots.
Um DP
um dpd and do have additional sources of funds that
Um dpd and do have additional sources of funds that that
some would address these issues. Uh, that's primarily the
neighborhood.
neighborhood opportunity fund for dpd and the affordable
requirements.
requirements ordinance in LOF fees for do and although
these are both important programs and that will continue to
function neither 1 of them has the ability to replace Tiff
as our fee primary funding source, uh a big part of that is
that these programs don't have the same punching power as
Tiff.
Tiff if you look at the chart on the right it shows the
total revenue generated.
total revenue generated for both programs over the the
entire lifetime of their existence. Uh, so since 2016 the
total revenue, uh, the total combined revenue is 275
million meaning the 8-year collections.
million meaning the 8-year collections for those 2 programs
are 35 million less.
are 35 million less than our current annual allocation to
dpd and do
uh
Uh, additionally, I'll just note the significant piece Peaks
and valleys in the chart, uh this reflects.
and valleys in the chart. Uh, this reflects the fact that
the city collects revenue for these programs as the last
step prior to issuing the building permit for a project. So
in years when there's fewer construction starts like
year, uh, these programs collect less Revenue, so that's
why uh, the 2024 figures have represent the lowest
collections ever for both programs.
collections ever for both programs, um while dpd and duh do
manage the these do we manage these assets so that we can
maintain continual operations structuring a multi.
funding program around a source like this is is
problematic.
So given this overall structural decline in the operational
concerns.
concerns of Tiff and the limitations on our secondary
sources, uh, we believe that the a shift to bond funds is
the best and frankly only.
the best and frankly only option that the city has to fully
address this looming shortfall.
address this looming shortfall while also simultaneously
increasing output and the effectiveness of our programs.
um that said
Um that said that I just want to emphasize that this does
not mean that this proposal.
not mean that this proposal or the use of bond funds in
this manner is untested.
this manner is untested, uh bonding is in fact how most
cities across the country funds the kinds of projects we're
talking about and it's a clearly defined best practice.
Um if you excuse me, sir.
continue
um
If you pick a peer.
If you pick a peer city of of Chicago by any metric you
choose.
choose um, New York Los Angeles Seattle. They're nearly
certainly using bond funds. Uh, but the reality is Chicago.
is also been relying on bond funds issued through the
Chicago recovery.
Chicago recovery plan to support our work the Commissioners
outlined.
outlined some of these numbers and their remarks, but I'll
just emphasize that the ability to deploy those funds has
resulted in a far.
resulted in a far greater investment on our neighborhoods
than in in the recent past.
than in in the recent past for do that's a doubling of the
amount number of units in the 2021 qap compared to the
qap and for dpd that meant doubling the number of projects
that we did in the last 4 years.
that we did in the last 4 years as compared to the 8 years
prior to that comb.
prior to that combined. Um, these funds were also deployed
in a highly Equitable manner, uh, anecdotally I can say the
dpd is larger Lords nearly 75% of them.
dpd is larger Lords nearly 75% of them are being made in
the city's South southwest and west sides.
the city's South southwest and west sides, uh, but more
concretely the the recently the the Public Finance
Institute, which is a nationally based non.
Institute, which is a nationally based nonprofit undertook
an effort to review.
the degree to which Municipal Bond offerings, uh, uh were
being used in an equitable manner the result of that was
the Chicago.
that Chicago's bonds offerings were the most Equitable
bonds.
Bonds in the entire country.
Um at this point though.
Um at this point though, the Chicago recovery plan dollars
are entirely committed.
are entirely committed, uh, and cannot be relied on to
address the unwinding of the Tif program. So in order to
sustain our ongoing investments in housing and economic
development projects,
development projects an additional source of of funds must
be identified and we believe that the 1.25 million in bonds
can do that.
Um that said that the work that we have done in the recent.
past the Chicago recovery plan has strongly informed this.
proposal in front of you including both the total requested
allocations.
allocation and the 5-year time frame, um more specific.
allocation and the 5-year time frame, um more specifically,
uh, most of the anticipated categ.
uh, most of the anticipated categorical allocations were
based on actual Awards made by the department.
based on actual Awards made by the Departments over the
past 2 years, uh as an example
past 2 years, uh, as an example dpd's Community Development
Grant allocation.
Grant allocation matches our annual average Awards made in
2022 and 2023, um for newer programs that we could not
on historic data. The allocation Figures were benchmark.
using research out Outreach with stakeholders and
additional analysis that Define what is an appropriate
funding level.
funding level while also balancing that with the need to
maintain a reasonable production level, given our current
Staffing and operation Capac.
Staffing and operation capacity.
um with regards to the the length
Um with regards to the the length of the bond issuance dpd
and do felt that a 5.
and do felt that a 5-year term struck the best balance
between having a reliable.
between having a reliable funding source that spanned
multiple development Cycles, but not extending so far into
the future that it's locking the city into a decades long,
uh program or commitment.
Um, I will also just note that under this program.
Um, I will also just note that under this program the city
is not the city is authorized to use.
is not the city is authorized to use up to 1.25 billion
dollars, but it is not obligated to do.
dollars, but it is not obligated to do so and we will not
sell bonds until we need funds. So to the extent that our
estimated need is is less than what we've modeled. Uh, the
then the approved bonding capacity would simply go unused
and there's no negative.
and there's no negative Financial impact to the city.
Uh, all that said I I recognize that.
Uh, all that said I I recognize that 1.25 billion is a is a
very significant number to come to this body with um, and
so 1 of the most important.
so 1 of the most important components of this proposal is
that these bonds can be issued without increasing the levy
uh of the city's taxes. Uh, this happens simply because
there are so many Tif districts expiring over the next
decade, uh as these fun.
decade, uh, as these funds returned to the city they do so
in a specific way that in,
in a specific way that increases the overall property tax
base without having to Levy against the new equalized
assessed value.
uh this
Uh, this means uh These funds uh represent a significant.
source of new persistent annual revenue to the city.
source of new persistent annual revenue to the city and I'm
an estimated million dollars.
an estimated million dollars, uh, annually over the next 15
years.
uh
Uh, this proposal relies simply on applying a portion, but
not all.
not all of that returning Revenue, uh to Debt Service for
the bonds.
the bonds, uh the chart on the right the red line
represents.
represents our assumed Debt Service schedule and the green
bars the revenue returning to the city from expiring tips,
just in the most simple terms if the red line remains below
the green bars,
remains below the green bars, then a tax increase is not
necessary, uh, as you can see that's the case.
necessary. Uh, as you can see that's the case in all years
with funds returning to the city being
significantly higher than Debt Service starting in 2023 or
2030 rather.
I I also note as the the CFO mentioned that our figures are
modeled as conservatively as possible.
modeled as conservatively as possible for that service.
That means that we'll we're anticip.
That means that we'll we're anticipating we'll spend funds
much faster than is actually likely.
much faster than is actually likely to occur. And on the
revenue side our model, uh, omalo assumes that the only
growth to the tax base comes through.
growth to the tax base comes through modest inflationary
growth just 2% per year.
growth just 2% per year, uh, and that no development
whatsoever new development whatsoever while our within the
city
uh, and while the
Uh, and while the pending expirations, uh will mean a
significant change.
significant change to Tiff in Chicago. I also would like to
emphasize what the bond proposal is not doing to Tiff. Um,
first and foremost this proposal is not the end of Tif
districts in Chicago what we've outlined today does not
rely on accelerating the expiration of any Tiff outside of
the current time frame. Um, and if approved Bond Fund,
the current time frame, um, and if approved bond funds and
Tiff can be used alongside each other in in areas.
Tiff can be used alongside each other in in areas, uh where
there's currently Tif districts those would remain in
place.
and projects would have access to both sources.
um, additionally this would mean that Tim
Um, additionally this would mean that Tim this would not
mean that tiffs couldn't be extended. Um, there are many
parts of the city that have clearly defined needs that City
funds could address and Tiff could and should remain a
resource. Uh, it does mean however that that when districts
are extended it will have to be done so strategically,
only when there's clear reasons to do so, um some of those
factors could include prioritizing areas where
socioeconomic data High
socioeconomic data highlights and overall need where
there's districts that generate sufficient.
there's districts that generate sufficient Revenue to
actually support projects and districts that have defined
projects and Define needs that Tiff could support
um, this would mean that Tiff.
um, this would mean that Tiff in areas that have less
clearly defined need or minimal resour.
clearly defined need or minimal resources should expire
should be allowed to expire in order to support the bonds.
This would not mean that there's no resources suddenly
available to these areas the bond itself.
available to these areas. The bond itself would be still be
there available to support projects.
there available to support projects in that those areas.
So the the goal.
So the the goal of the bond is not to end the use of tip in
Chicago.
Chicago rather. It would help the city rightsize the
overall scope of the program.
overall scope of the program and ensure that it is 1 of
many tools that we have.
many tools that we have at our disposal rather than being
the first and only resource.
the first and only resource available.
uh taking it as a whole both dpd and do believe that
proposal represents a significant opportunity for the city.
Uh bonds would simultaneously address the struct.
Uh bonds would simultaneously address the structural decline
of this of our critical Revenue sources.
of this of our critical Revenue sources address, the
long-standing operational issues and improve the overall
outcomes of our work and while Tiff has certainly created
positive outcomes. It's a tool that is operationally uneven
and contributes to inequitable.
and contributes to inequitable distribution an inequitable
distribution of City res.
distribution an inequitable distribution of City resources.
Bonds ensure that there is access.
Bonds ensure that there is access to resources in all of
our areas, especially those of greatest.
our areas, especially those of greatest need.
Uh, I'll just also note that these.
Uh, I'll just also note that these benefits would not apply
to just the city of Chicago.
to just the city of Chicago the expiration of tiffs would
mean a corresponding increase of property tax.
mean a corresponding increase of property taxes to all of
the taxing bodies, and that means more fun.
the taxing bodies and that means more funds available to
the parks the schools the library the counties.
the parks the schools the library the counties city
colleges that they can use uh to both improve.
colleges that they can use, uh to both improve services and
continue to make Capital Investments.
Uh, and finally, I'll just note that there is a broad
support.
support for this concept, uh in Chicago right now.
We've held Outreach meetings with over 200 Civic nonprofit.
and Community Based organizations and Developers.
and Community Based organizations and developers and the
feedback has been overwhelmingly positive with
organizations.
organizations understanding how this proposal will directly
result in better outcomes for their communities.
um for all of these reasons dpd and do strongly believe
that these funds represent a clear opportunity for Chicago
to pursue.
to pursue pursue transformational change.
uh, all of that said I I I think we understand that this
Uh, all of that said I I I think we understand that this
this is not a decision that could be made in the vacuum. So
Jill dorsky the city's Chief Financial Officer is here to
provide more.
provide more information regarding how the bonds could
impact the city's Financial.
impact the city's Financial Outlook.
Thank you Tim. Um.
Uh, it's moving forward. Um, we put together our financial
executive.
executive summary. You're going to have already seen most
of the points that are on this.
of the points that are on this slide, uh, 1.25 billion is
what's authorized. Um, we have an expectation.
what's authorized. Um, we have an expectation that that
would be issued over 5 years and 2.
would be issued over 5 years and 250 million dollar annual
tranches. Um as Tim,
tranches. Um, as Tim noted that is not something we
necessarily.
necessarily will do um is spending is slower. We will issue
the bonds over a longer period of time.
if we see over the next few years that
If we see over the next few years that many tiffs are
extended instead of being allowed to expire.
extended instead of being allowed to expire and we don't
have sufficient funding.
we
We will slow down our limit the amount of issuance. So this
is up to 1.25 billion, but we're going to administer.
program in a way that's financially responsible for the
city. It is not put us at risk. It does not put our
corporate.
corporate fund budget at risk.
Um, I did want to point out. This is Brent brought up a
number of times that the uh limitations um for this bond
issue are solely for the projects that have been ident.
issue are solely for the projects that have been identified
and we just put on here the little teeny texts that would
be hard to read but it is the third.
be hard to read but it is the third whereas clause in the
ordinance that outlines.
ordinance that outlines what can be done there is nothing
else.
Of these funds can be used for we cannot use them for other
CIP project.
CIP projects. Um, or any other cities
The expiring tiffs as has been mentioned.
The expiring tiffs as has been mentioned earlier as well.
Don't just provide money.
Don't just provide money to the city. They also provide
money to all the sister.
money to all the sister agencies.
this table here shows the
This table here shows the annual increase that we would
expect to see from.
expect to see from the expiring tiffs.
And the next page will take a look.
And the next page will take a look at what those numbers
mean in a when they're uh accumulated.
mean in a when they're uh accumulated over time.
Uh, we in addition to these numbers when we ran the cash
flows. We actually took 8.
Out of the cash.
out of the cash flows when we ran the bond numbers, so
there's about 13 million dollars in revenues less to the
city than what you see here in this table and each year.
going forward because 8 tips were removed.
going forward because 8 tips were removed 4 of them are
ones that have already been approved to be extended by the
state and another 4 were removed solely for the purposes of
making the numbers more conservative.
as you
As you can see from looking at the numbers, uh in the CPS
column.
column and the parks column. These are very significant
amount of fun.
amount of funds. That will be very helpful in their budgets
going forward.
going forward as well.
We flip to the next page. This is really the better picture
than the table before. This is what this looks like on a
cumulative basis.
cumulative basis because when we think about 35 billion
dollars, um,
dollars, um in your uh year 1 that 35 million,
dollars, um in your uh year 1 that 35 million is around the
next year when we get another 20 million, too. So we end up
with 57 million.
You can see.
You can see as we go through the years. We are ramping up
to a very significant amount of money going into the
corporate fund and as we'll discuss in some of the other
slides The Debt Service is going to be about 80 million 81
million dollars on these bonds under our conservative.
financing assumptions. So it will be significantly and we
don't get there till 2032, so it'll be significantly under
uh, the amount of revenues that we're projecting.
The next slide is similar to the uh, little teeny slide you
saw earlier, but we put in a bigger 1 to really emphasize.
saw earlier, but we put in a bigger 1 to really emphasize
how this looks like when we move out over time.
how this looks like when we move out over time through 2061
the period of repayment of all the bonds.
the period of repayment of all the bonds, uh, as you can
see there is significant.
see there is significant coverage that accumulates over
time.
time, um in 2032.
time, um in 2032 when we have fully loaded The Debt Service
we
Service, we'd be looking at about 1 and a half times
coverage.
coverage, um with the funds that are projected to be coming
in.
The next slide takes a little break quick little detour
this.
This is a breakdown of how we currently pay our go Debt
Service. So the the hash marked on the bottom or the light
blue, that's the property tax. Levy that.
blue, that's the property tax. Levy that exists today to
pay for our Geo Debt Service.
for our Geo Debt Service. The dark blue is the corporate
fund subsidy.
Significant amount of our debt is paid out of our
corporate.
fund today and not from property taxes. Now, these bonds
have a property tax levy associated with all the debt, but
we Abate a lot of it every year.
we Abate a lot of it every year and that's to manage the
tax levy that's going the taxes that our residents are
paying.
If we flip to the next slide.
We've added in the new debt.
We've added in the new debt for the Geo housing and
economic development bonds.
economic development bonds as well as the excess revenues
that we're looking at seeing now. This is only over 2036.
So we're not showing that big increase that we get out to
and the the future years.
The blue numbers are the same but
The blue numbers are the same. But when you take a look at
that green, that's excess.
that green that's excess revenues coming in that money can
be used for anything.
be used for anything, but it can be used to pay our Geo
Debt Service so that we reduce the amount of corporate fund
subsidy.
subsidy that's being used to pay our existing debt.
The rad is the Geo housing and economic development.
The rad is the Geo housing and economic development bonds.
And as you can see we're going to have property tax levy
associated with those.
associated with those so all in all we're going to be able
to shrink the amount.
to shrink the amount of corporate fund subsidy. We used to
pay for all of our debt.
in addition to having
the these bonds which are going to fund new projects.
The last slide um is something that we typically go.
The last slide um is something that we typically go over in
finance committee. Um, or
finance committee, um or provide, uh, uh to all the
committee members. Um, we did want to make sure you were
aware we have selected.
aware. We have selected a uh team that will be working with
us.
us on the first bond issue, uh, the senior manager,
us on the first bond issue. Uh, the senior manager is
Ramirez and Company they are a Hispanic owned firm.
Ramirez and Company. They are a Hispanic owned firm. They
have an office here in event of presence in the city for a
long time.
The co-signer manager is PN.
The co-signer manager is PNC Bank, um, both Ramirez and
PNC.
are firms that have provided a 6 significant amount of
assistance to the city in housing related programs.
they have a lot of expertise in that area.
Co-managers are rice Financial sand.
Co-managers are rice Financial sand blasts. Um, which
brought sunblast bot Melvin Securities if you're familiar
with that so Chris Melvin is a member of s boss now Blake,
blakefield Luke Financial. Um, all African-American owned
firms.
firms on the for the co-manager team the
firms on the for the co-manager team. The financial
advisors are pfm financial advisors.
advisors are pfm financial advisors and sustainable Capital
Advisors.
Um Bond council is Chapman and Cutler cobine counc.
Um Bond council is Chapman and Cutler cobine council is
charity and Associates, uh discl.
charity and Associates. Uh disclosure con council is
Greenberg trig.
Greenberg trig Sanchez Daniels and Hoffman is the co and
Chapman also serves as our pension disclosure Council for
all of our bond.
all of our bonds.
And if we do issue stsc instead.
And if we do issue stsc instead of go which we are
authorized to do we will use Mayor Brown. Um, I want to
note that a couple of these firms, uh pfm.
note that a couple of these firms, uh pfm and Greenberg
trig. Um, they are uh, not MBE firms, but they both have
uh, African-American Partners who are leading.
uh, African-American Partners who are leading the um teams,
uh working on this transaction.
that concludes
That concludes the financial slides that we put together
for the transaction.
Uh, thank you all for your present.
Uh, thank you all for your presentation. Uh, we will open
it up for questions. I uh taken down the names.
I see you Vice chairman. Hold on to you.
I see you Vice chairman Hold On To You horses. I wanted to
uh start with uh,
almond Irvin Vice chairman because he has to leave he has a
3:00.
3:00 meeting and I committed that I would call on our
budget.
budget chairman to go first.
Alderman Ervin great. Thank you madam. Chair, uh, just
couple of uh questions in relation to mostly on the
financial side. Um, some of which as I was writing, uh, how
does this compare as relates to our pension obligation and
the um,
amount of new Revenue that would come
Amount of new Revenue that would come through this and the
need to balance.
need to balance that out uh versus
dedicating this to this particular debt debt stream
Sure, um.
sure, um the pension, uh our pension obligations
sure, um the pension, uh, our pension obligations are quite
significant, um the required
significant, um, the required contribution, uh for 24 was
2.4.
2.44 billion dollars. Um, we paid a 307 million. Um,
Advanced contribution in addition to that for a total.
Advanced contribution in addition to that for a total of
2.748 2.749 excuse
2.748 2.749, excuse me billion dollars, um, certainly um,
uh when we look at
uh, when we look at the numbers that are coming off of this
this, um, they are small in comparison.
this, um, they are small in comparison to our pension need
but certainly can be looked at as
as the the Monies
as the the monies that are coming in that are not going to
the bond are certainly monies that could be looked at for
increasing, uh funding.
increasing, uh funding to the pension system or alternately
for meeting what we believe will be increased costs going
forward.
forward, um as we will have to address
forward. Um, as we will have to address tier 2 and tier 3
participants. Um,
participants, um, and the social security safe harbor
okay, if the uh
the increase in the money that's rolling off as it relates
to the tips. Um, you are estimating.
to the tips. Um, you are estimating your uh conservatively
and I and I saw 1 of the charts.
and I and I saw 1 of the charts that you're using maybe
about 30 35% of that new money.
about 30 35% of that new money or how much in anticipated
we using of that new money.
we using of that new money and I know as we go out further
it grows.
it grows, but in the first 5 years, what are the anticip?
the percentage of the new Revenue coming in?
the percentage of the new Revenue coming in that will be
utilizing to a Debt Service just for this portion? Yeah in
the first 5 in the first few years. It's kind of more in
the you know.
70 to 80% in the first few years, um based on the
conservative way we modeled.
conservative way. We modeled it. Um, we don't have to um,
we can lower the
we can lower The Debt Service in the early years. We we
modeled this showing level.
modeled this showing level Debt Service where we did 1 year
of capitalized interest.
of capitalized interest because you know, the property
taxes are a lag.
taxes are a lag, uh 1 year and then after that just
immediat.
immediately start paying the debt.
um, and so as you do each issue each year and you ladder
those up we get to that 81 million dollars in debt service
we can do interest only.
um and defer some of
Um and defer some of the principal to the later years. We
have more money to free.
have more money to free up more excess funds in the early
years. There are certainly options that we have.
years. There are certainly options that we have, um to
allow more money to come back to the corporate budget, but
this was really mode.
this was really modeled to show in a conservative scenario
that the funds are still sufficient. Well what what concern
that that I do have is that with the increase amount.
that that I do have is that with the increase amount of uh
expenses we're going to have on the pension side. Um,
without
raising additional Revenue in the natural growth of
expenditures that we'll just have just as a function of
being here. Um, where do how do we feel like Gap in?
being here. Um, where do how do we feel like Gap in and now
you're asking to spend 81 million dollars in perpetuity?
for this and I'm trying to understand how do we feel in?
for this and I'm trying to understand how do we feel in the
gap between the rising expenses rise?
gap between the rising expenses Rising pension costs and
then adding in 81 million dollars of debt service?
We will need additional.
We will need additional revenues and that is critically
important.
important and it's something that we're very focused on
right now.
um
You know there is um, certainly.
You know, there is um, certainly talking Springfield about
um pens.
um pension legislation to deal with the tier 2 issues. And
um, you know, we have spent a good bit of time.
um, you know, we have spent a good bit of time with our
pension working group, um, you know,
pension working group, um, you know with our IGA folks, um
outlining um ways in which we could increase revenues to
meet those obligations and we have made that a point that
is, you know, front and center.
Uh, and uh, we certainly have hopes that part of what could
come out of
um any legislation would be additional Revenue we were
expecting that this year, but that is something we are
highly focused on.
highly focused on and will continue to push for
thank you. How much have we estimated?
Thank you. How much have we estimated in new increment, do
you think that?
you think that these investments will create?
We we have not. Um, we don't know.
the number of projects what they could be but they could
not be there's too much too much variable and I we
feel confident making a projection. That's let's say that
so many projects would result in.
So many projects would result in such a net return of
property taxes. What I can say is though.
property taxes. What I can say is though is that to the
extent that does happen it will be going back.
extent that does happen. It will be going back into the
city's general fund and not sequestered.
city's general fund and not sequestered in tips as they are
today. So it will rise.
today. So it will rise if we create a create an increase
over time definitively, so theoret.
over time definitively. So theoretically you haven't you
haven't calculated any of that.
haven't calculated any of that into what you all have.
Put out here.
Right at all.
point of clarification alderman
point of clarification Alderman Vasquez
Um, yeah. Thank you for that question.
Um, yeah, thank you for that question. Would you be able to
maybe look at what has been done in the past?
maybe look at what has been done in the past and see what
um return there been to kind of make a comparable. Uh, yes
I can.
If it's like if you're if you're requesting.
If it's like if you're if you're requesting at a certainly
can take it back and look at it. It will just be with the
caveat that it's like a a very blunt analysis. Okay? I I
mean I think the because ultimately if you make this
investment, we should see some return on the investment.
investment, we should see some return on the investment,
but beyond just building the building we should see either.
beyond just building the building we should see either our
our base growing or the ability to do the same thing that
we've done now by either, uh, you know, increasing the levy
to offset and leaving the rate the same and increasing the
levy so there there is the possibility of additional
Revenue that's going to come from these Investments and I
think we need to have some idea of what that looks like
because it may make the peel easier to swallow. Um, if
we're seeing some new Revenue be it sales tax.
we're seeing some new Revenue be it sales tax revenue be
it, uh new uh increment that's going to come online. It's
available for uh for General.
available for uh for General use, I I think that's a
component. I think we need to have some level of
calculation. It's not going to be conservative, uh, based
upon what
Are but there's that number is not zero and I and I think we
need to get some.
we need to get some clarity and understanding of what that
potential looks like.
well
Well, uh prepared something it will take us a bit of time,
but we'll prep.
but we'll prepare something and then as it relates to the
expiring tips.
expiring tips, uh, what type of criteria would we look?
expiring tips, uh, what type of criteria would we look at
to say well, maybe we need to hold on to this Tiff.
to say well, maybe we need to hold on to this Tiff and not
let this Tif expire. I know that uh, based on what the CFO
stated.
stated the um, you all did not use all of the revenue from
the expiring tiffs and you didn't use
even of the revenue that you did use you didn't use all of
it. So there's still a lot.
it. So there's still a lot of room in here and also I mean
again, what is that criteria look like for not extend.
again, what is that criteria look like for not extending or
to allow the Tif to expire? Um, yeah, I think we I mean we
would to the extent that's move forward. We will create a
like very defined.
like very defined framework. We've had 1 in past years, but
this if this pro project is approved it would represent
such a a significant shift to that. I think we'd
create a whole new framework from scratch.
Or do you go?
authorized under the program to use letter credit or
commercial paper. Um, it's certainly a a distinct
possibility.
possibility that we would do that. I mean we've had good
success.
um at the city with using those
Um at the city with using those kind of short-term
instruments and then issuing bonds.
To uh to pay them down. Uh, so it's certainly something
we're going to be looking at right.
we're going to be looking at right now interest rates are
short-term rates are still
You know high enough that the benefit is not.
you know high enough that the benefit is not as great as it
typically has been in the past but
typically has been in the past, but we certainly expect
short rates to be coming down. Um, you know based on
short rates to be coming down. Um, you know, based on the
feds continued comments. Um,
feds continued comments, um, most recently, uh saying that
they expected 3 rate cuts.
To be uh coming soon.
and then you also in the uh
And then you also in the uh, presentation contemplate go
bonds.
bonds and also, uh stsc bonds, uh,
bonds and also, uh stsc bonds. Uh, what will determine what
path you take on those?
yeah, so the decision between
going to be focused on 2 things 1 is how much taxable
borrowing do we need?
Um, there's a significant benefit.
uh to issue taxable bonds
Uh to issue taxable bonds under the stsc program as opposed
to go. There's a wide uh difference in the interest rates.
that the city will pay.
Um, but we've also had a lot of success, um refund
General obligation bonds with stsc and saving sign.
amounts of money that way so what we need to do.
amounts of money that way so what we need to do sort of
each year is take a look and say
I know.
I know I have refunded candidates that I can refund for.
Savings in my Geo Bond portfolio.
CSC is a limited resource. I can only issue.
CSC is a limited resource. I can only issue so many bonds
with it because I have an additional bonds test that limit.
my capacity every year. Do I want to use that Capac?
my capacity every year. Do I want to use that capacity to
do a tax exempt to tax exempt?
do a tax exempt to tax exempt refunding?
Or do I want to use that capacity?
Or do I want to use that capacity to do a taxable deal?
or do I want to use that capacity to do a taxable deal on
the SJC versus a taxable new money versus a taxable new 1
angle. Whichever we determine.
angle. Whichever we determine at the time is the most
efficient is the path that we will go.
um, but we really included it in here to be able to have the
ability to lower the
the ability to lower the cost on the taxable borrowings.
Okay, and then does that what does that?
have some
Have some uh, interdependency on the sales tax.
have some uh, interdependency on the sales tax base, and I
know there's been conversations about
um changing what is tax?
Um changing what is tax on the sale tax perspective which
with any or more?
with any or more, uh dollars either to the state or to us
and how they're distributed distribution shakes out is that
a a hindrance
A a hindrance or a plus to our ability to issue?
A a hindrance or a plus to our ability to issue more of the
stsc bonds. That would be a plus. Yeah any extension of a
sales.
sales tax to um
to other items besides uh Goods
Would uh, you know expand.
would uh, you know expand uh,
um the amount of sales tax that we
um, the amount of sales tax that we would receive and would
offer, you know more opportun.
offer, you know, more opportunities, uh to be able to use
that tool for bonding at a lower cost than our general
obligation buys.
my final question, uh is uh related to
My final question, uh is uh related to the project
specifically.
specifically, um now we will
specifically, um, now we will contemplate authorizing the
the bond issue.
the bond issuance the projects that will come out of the
bonds, uh those
bonds, uh, those projects. My assumption is that those
projects will come back to us.
projects will come back to us for individual approval as
they as they are generated. Is that correct or not?
So, um, they won't necessarily have well, so programs
projects coming from new programs. Absolutely. They will
have to go through a program ordinance. That would come.
to to the spotty. Um other projects would go through
existing processes. So some of them have more Council touch
points than others, but for example, I mean certainly any,
you know, for example,
you know, for example our um, small accessible repairs for
seniors program.
seniors program making accessibility repairs to low and
moderate income.
moderate income seniors homes.
Um, we don't take each 1 of those.
Um, we don't take each 1 of those to council.
on the other hand
On the other hand are larger projects larger allocations of
funds.
funds, uh, multifamily buildings, uh have multiple touch
points in Council, um for zoning,
points in Council, um for Zoning for loan packages for uh
other things,
other things so it just depends on the program but for the
large ones, uh, certainly on the do side on Tim can speak
to dpd. Um, they would
So the so some programs. Can you answer it for dpd?
So the so some programs. Can you answer it for dpd Tim?
I mean, I think there's a very similar answer. It's to the
extent. We have no new new programs or
extent. We have new new programs or policies that come back
for program authorization. And then we're not yeah for for
larger programs that they would.
larger programs that they would have the same thing
multiple touch points to the extent that it was a very
large project. So zoning approvals and and you know, yeah.
large project zoning approvals. And and you know, yeah, I'm
not I'm not I'm not concerned about the zoning aspect
concerned about the financial aspect, you know.
why you're you're asking for an extended amount of
Why you're you're asking for an extended amount of uh
purchasing power?
purchasing power. Um, I I think that we got to have some
check and balance.
check and balance between uh while we have, you know,
giving the ability to uh, you know, borrow
giving the ability to uh, you know borrow but there needs
to be some touch point back as to when the money is
actually spent um, because there there are
actually spent, um, because there there are 2 separate and
distinct functions, so
distinct functions. So um to the extent that um, I think we
when we start spending these dollars that we need to have a
little more conversation.
little more conversation, uh around the actual expenditure
of the dollars, uh,
granted we are going to authorize the
Granted we are going to authorize the 10 auth authorized the
actual.
actual uh borrowing but the other side of the expenditure
of those dollars. Uh, I think we we have to get some better
Clarity on uh, based on just based on your comment. Some
will come back some won't come back.
will come back some won't come back, but it'll just come
back maybe for a zoning change or for something else. Then
we need to have a little more direct convers.
we need to have a little more direct conversation around
the expenditure of these dollars specifically because
are essentially, you know, this is a major Bond.
are essentially, you know, this is a major bond issue and
around the specific set of programs.
Thank you madam chair.
Thank you.
uh point of clarification Alderman Mitchell CFO, um with
respect to the the the determination of the path we take
far as Go versus um, the sales tax, um is the ordinance are
you saying? The ordinance is going to be written in such a
way that provides you guys with latitude to determine on
the yearly basis of which direction we take? Yes, it does
it limits the total amount.
it limits the total amount of bonds to 1.25 billion, but
they could be issued at go or they could be issued as St.
they could be issued at go or they could be issued as stsc.
We can't do 1.25 billion of each though. It's a 1.525
billion HP.
billion hacked total. Okay, and is it codified in the
be codified in the ordinance that when that determination
is made you come back?
is made you come back to council and show us why you've
made that choice.
Um, I don't think that's in the ordinance. But um, we
certainly be happy to present that and go through.
analysis and show you how we came to our determination.
Okay?
Okay. Thank you. Thank you Sharon. Thank you Vice chair
con.
Conway. Thank you. Uh, you know, I I appreciate I had 15
questions and I only have 6 based on uh, chairman Ervin and
and uh and all Mitchell as well.
and uh and all Mitchell as well a first question, uh is
actually for commissioner.
actually for commissioner Boatright. Um since since Mr.
Jeffries brought bought it
Jeff brought it up, um,
what a effect will this have on the LEL Street development
project?
projects?
this won't have an
This won't have an effect on the LaSalle Street project. So
the LaSalle Street.
the LaSalle Street projects were approved through tick
already. Um, and so those projects are already account.
for in terms of funding that's available. Wonderful.
for in terms of funding that's available wonderful knowing
you speak with the administration. I just want to get that
on record. Um,
now my my
Now my my uh, I think probably the rest of my questions are
for the for the C.
for the for the CFO. Um, it looks like when I look at the
model that the the estimates of of returning Revenue are
the same.
Annually, uh, how did you go about making those?
Annually, uh, how did you go about making those those
estimates?
Mike was the was the assessor's office contacted or how how
did you go about making those?
uh know those assessments were uh,
Uh know those assessments were uh, this assessments were
made based on the current.
made based on the current values that we're seeing coming
in and uh growing those at about 2%
Um now the
it looks like in in response to actually the question I had
which I appreciate.
which I appreciate the the through the chair response the
total.
total cumulative decrease.
total cumulative decrease of Tif districts for the next 5
years is going to be a total of 345 million. Is that is
that sound right?
I I actually added up a 367 but 34536.
I I actually added up a 367 but 345367. Does that sound
about right?
Yeah, that sounds let me go back and look at the
yeah, we have a slide on this.
slide
I got.
I got it in pretty good right here. I at least you would
concede that.
concede that both. Those numbers are significantly less
than 1.2.
than 1.25 billion, right?
Yes. Yeah, well that yes, that's that's the well I guess
it's
That is the cumul.
That is the cumulative.
amount of money that's coming off the books through the
through the next 5 years, but the the amount that comes off
the book.
the books in this upcoming year will then carry forward.
the books in this upcoming year will then carry forward the
next year and the next year and the next year. So you have
to and so it
have to and so it and it looks like this year or in 2025.
It's going to be a little over a billion dollars and heck
by the time we get the 2030. It's still stiff districts are
still bringing in.
still bringing in 920 million is that I mean is that
correct here? So it's still only a annual drop off.
correct here? So it's still only a annual drop off of
less than 100 million per year.
less than 100 million per year when it gets to that.
That that sounds generally right. I mean we have a number
of like very significant heavy-hitting Tif districts that I
mean most of the the revenue in the program is generated
from a handful of districts and not all of those expire in
the in the next 5 years. Some of those will be around for a
lot longer so they will maintain the buoyancy of the
program now asking, you know, that's great. Thank you and
and asking um pivot
and asking um, pivoting to uh our general obligation debt
debt, I you know, I I see our credit rating is triple.
Plus. Where does that rank? Uh among the top 25 largest
cities in America?
Uh, I don't.
uh, I don't have the list but I would imagine it's the
lowest okay as
lowest. Okay, so if I I would suspect it is it is dead
last. Um, so and it just making sure I understand.
last. Um, so and it just making sure I understand the model
in this slide.
For this Bond issuance under an assumed Debt Service.
For this Bond issuance under an assumed Debt Service you we
anticipate having to pay this back.
anticipate having to pay this back through 2061. Is that
right?
Yeah, that's the that's the assumption that was modeled.
Yes, and and and we would pay back a little over 2.
billion in in total inclusive of interest to that. Is that
right? That's correct.
So, um
you know when we I
You know when we I I by the way, I have greatly appreciated
the the education.
the the education and concern regarding the the Tif
boundaries. Uh, the
boundaries, uh, the Tif problems that we Face including the
arbitrary bound.
arbitrary boundaries and the
sorted history.
Sorted history. Our our Tif program has but I do also think
we need to take.
we need to take heed of what we saw on Tuesday regard.
the real estate transfer tax in that.
the real estate transfer tax in that the message was not
that Chicago is against affordable.
that Chicago is against affordable housing or doesn't want
to help homeless. It was instead.
to help homeless. It was instead really a rejection of a of
a uh,
first we get the money mentality.
So I just hope going forward that we can ensure that we
have the proper.
oversight and specificity on this this over billion dollar
Bond Pro, uh Bond authorization. I'm still undecided on
this, but I have Brave.
this but I have Brave concerns about about a blanket
authorization.
authorization of
this amount and I and I think we need to take a look at the
the size and scope of it going forward. Thank you madam
chair.
Chairwoman. That's all I have. Thank you. Uh
Vice chair Conway
um
Mr. Blakemore are
Mr. Blakemore, are you and not part of this discussion?
Thank you.
Um
We're going to take a 5 minute.
We're going to take a 5 minute break. So the court reporter
can uh rest her.
can uh rest her fingers.
5 minutes
All right.
all right, so we will reconvene the
committee on finance and continue with questions from the
members of the committee.
members of the committee the next uh up is
members of the committee. The next uh up is Alderman vice
mayor brunette followed.
mayor brunette followed by Alderman sichel Lopez.
Thank you very much. Um Madame chairman
thank you very much. Um Madame chairman, um, and to the
panel, uh, first of all, I want to commend you all and I
think this is a uh,
very unique and creative way, uh front loading, uh
potential development.
potential development and economic development in the city
of Chicago. So I just want to commend you all uh for that,
you know,
you know from my experience. Uh, I recall 1 of the biggest
tips on this list is like the Kinsey Corridor and I recall
uh when we started
uh, when we started out early on we had to do a bond, uh,
we had to do Bond.
we had to do bonds in some of these tips in order to front
load them with money and then pay them back as we went on
in.
in the future. So this is not the first time that we've
been bonding.
been bonding money, uh in reference to uh, dealing with
tips.
Uh, but also just want to acknowledge, uh, the fact that
you know a couple of
you know, a couple of the biggest ones is going to be uh,
money's going to come.
money's going to come from our some of the ones from my
ward, right?
ward, right, you know, uh, the Central West Tiff.
uh the Chicago kingsberry till
Uh, the Chicago kingsberry till 41 million 38 million the
river.
River West Tiff, you know, uh, so, you know,
River West Tiff, you know, uh, so, you know again the 27
award is contributing to all of these things like all the
time. Uh, and and for the next 5 years most of that money
is going to be coming from our area. So of course, I look
forward to seeing some Investments going on in my ward.
Uh because of that right? I've been very generous, uh in the
past over the years.
past over the years and supporting all of these other
Awards throughout the city.
Awards throughout the city of Chicago with nolf.
you know, even with the industrial, uh, uh, the industrial
fees right most of that money.
fees, right most of that money come from my ward and it
supports everybody else.
supports everybody else's Ward all over the city.
And I'm okay with that.
And I'm okay with that, um because I'm a partner in the
city. I'm not just about my ward. So I just wanted to get
that out there.
that out there, but there are things that I need in my ward
for.
for instance. Uh, I have you know cha development.
For instance. Uh, I have you know, cha developments that's
been going on since 199.
been going on since 1996.
You know what I'm saying? I need those things done. Right?
I mean we're talking about almost.
I mean we're talking about almost 30 years of things being
in limbo. So I need to make sure that these things get done
and I and and and and I
You know, I'm so generous with.
You know, I'm so generous with things coming from my ward
because I expect.
because I expect things that I need in my ward to be done.
also, so I don't mind helping folks as long as I get help
that I need.
that I need also, you know, so I just want to put that out
there but I do have some questions, uh,
Uh, why are these bonds a better option for?
Uh, why are these bonds a better option for economic
development?
uh, Tim Jeff
Uh Tim Jeffries, uh dpd. Um, I guess I think they're
they're better, uh, because of many of the reasons I
mentioned in the the presentation, but specifically we
don't have the same rest.
have the same restrictions in place that oftentimes feel
arbitrary or that serve to block us from being able to
pursue projects when they make sense. Um, and that comes
from a geography perspective that comes from a eligible.
cost perspective that comes from an availability of funds
perspective. Uh, and so for all of those reasons, um, I
think that um, we've seen over the last few years with
access to bond funds what we've been able to do um, and
it's not just that all of those things are true.
it's not just that all of those things are true and that we
can do projects where we couldn't have done them.
can do projects where we couldn't have done them because of
those factors, that's true. But also it has a compounding
effect because we're able to better manage our assets.
then we can pursue projects, um that
make sense and that are good and provide clear benefits,
but also match them to the source that makes the most sense
that that that means that the city can maximize the number
of projects that we are.
of projects that we are in fact doing
so can
So can you please provide examples of how these bonds will?
help areas with the least amount of economic activ?
help areas with the least amount of economic activity?
Could you repeat the last part?
Could you repeat the last part I said, can you please
provide examples of how these Bond?
provide examples of how these bonds will help areas with
the least amount of econom?
the least amount of economic activity? Uh sure. Uh, I mean
we have
projects, um
Projects. Um, I think there's I can think of 1 project that
just recently.
just recently was completed the Esperanza Phase 2 in
Brighton park. It was a project that uh received about 4.5.
million dollars in bond funds. It's in a TIF district, but
it was new construction and they had already owned the
land. It was clean and had been remediated previously.
There was no Tiff El
There was no Tiff eligible costs in that budget and we had
evaluated that project. It's it's great. It's it's a very
positive thing.
positive thing and we couldn't fund it and as soon as the
bond funds came in like they were 1 of the first projects
to apply they were
to apply. They were the first project to be completed. They
just had their groundbreaking.
just had their groundbreaking uh in early January and now
they're open and and seeing, you know people but I mean we
could I could give similar stories about how uh, there's
projects that aren't quite finished yet and at that same
place, but we have tiffs.
place, but we have tiffs on the far south side that we have
never had money.
never had money available or sufficient money available, um
to do that
to do those things or we had uh, uh a hotel project.
Pullman that is new construction vertical Construction.
a much more open, uh, uh funding source that allows us to to
to take a project first mentality so that we can say is
this a good project for the city and not immediately have
to first think about how can we shoehorn?
to first think about how can we shoehorn uh, uh a source
into this.
Okay.
So, uh, what is a timeline?
Where we can see evidence.
Where we can see evidence of investments from the bonds.
Um, I think that we if if the bond is approved.
um, I think that we if if the bond is approved, I think I
for dpd I'll be answer it but for dpd, I think we would
anticipate using the funds.
anticipate using the funds almost immediately. We have a a
a current.
a current application round open the closed on februari
16th. Um, if funds are approved that would
increase the amount of money that we have available
currently with bonds. I think there's something like 7 to 8
million.
million dollars available. Um, and if if this is approved
we have access to those funds and so there would be a right
out of the gate.
out of the gate a dramatic impact. So once this is
we will have some money in order to be able to do
things and finish up some things that started. Uh, yes, we
would award funds that would need to go through their
pre-development process and all of those things. But yeah,
we would they would they would get the green light to go
certain.
certainly so this list, um,
but um, so we we we looking at the
But um, so we we we looking at the tills for the next 5
years.
uh
We're looking at.
We're looking at we're looking at bonding.
We're looking at we're looking at bonding for the next 5
years of the next 5 years of tests. Not not be.
years of the next 5 years of tests. Not not Beyond those 5
years. Uh, no not Beyond those 5 years, okay.
all right, and um
All right, and um just did 1 point of clarification if the
spending is slow.
spending is slow that authorization the authorization.
spending is slow that authorization the authorization will
extend past so if it takes us
6 years to sell 1.25 billion because the money didn't get
spent as quickly.
we
We can do that.
We don't have to.
We don't have to issue 250 million a year.
if it's not getting spent quickly enough, so we'll
wait if if it takes a little more time.
We're assuming 250 million a year.
But this doesn't say that hurry.
But this doesn't say that hurry up and sell the last bit of
bonds in the fifth year.
bonds in the fifth year or you lose your authorization.
It's it's not like that it can.
It's it's not like that it can extend past it if we needed
to.
But it can't be.
But it can't be more than the 1.25 billion. Yeah, so I um
appreciate some of the questions that my other colleagues
asked I know.
asked I know with front loading some of these tips like in
some of the areas where it tells I see some tips man. I saw
1 tip in there had like 800 some dollars in it. You know
what?
what I'm saying? So if you front load something in that tip
that could potentially help that tip.
that could potentially help that tip to build up.
development and more income and can come to that tip and in
essence that helps that area also but also, um,
uh front loading some of these projects throughout the city
of Chicago, uh, if I'm not missed,
of Chicago, uh, if I'm not mistaken could potentially help
our corporate funds.
our corporate funds to get more tax dollars from
uh properties that never had any or don't have that much
taxes coming to the city. Now we have taxes coming to the
city.
city right and which can overall potentially
city, right and which can overall potentially build up
everything including our bond.
everything including our bond rating overall with the city.
yeah, I think 1 of the things that's most important for my
perspective. Is that the Investments that we make in this
city?
in housing and economic devel
In housing and economic development. That's how we grow the
city that's
city. That's how we retain our residents. That's how we
grow business.
grow businesses which create jobs which keep people
employed.
employed so they can continue living in the city.
You know, we have a high cost of living here.
Um, we need to invest in the city. We need to help
businesses get off the ground. We need to help people.
Find affordable housing. We need to provide it for them.
Um, so these are the Investments we need.
Um, so these are the Investments we need if we don't make
these Investments because we
prioritize
say
we got to get the pensions paid down as quickly as poss.
we got to get the pensions paid down as quickly as possible
that is important and we are putting Advanced money into
the pension.
but if we keep
But if we keep putting more and more in in lie of these
Investments, how do we grow our city?
you know this city used to have
You know this city used to have 3 and a half million people
who lived in it.
and today
And today it has 2.7 million.
We need to make these.
We need to make these Investments so that we do generate
more taxes that we can re.
more taxes that we can reinvest in our city and see this
city flourish. So we have to always be balanced I think and
how do we deploy?
the revenues that we have
The revenues that we have we have a lot of fixed
obligations existing debt.
obligations existing debt pensions.
You know police and fire.
You know our Workforce here.
But we have some room.
with other revenues to make a choice
you know do
You know, do we deploy it to those long-term fixed
obligations, or do we deploy?
obligations, or do we deploy it into things that are going
to grow the city?
and that's what this really is about is deploying it in
ways that grow the city because it will increase property
value. We will get more.
value. We will get more Revenue than what we're projecting
here.
We'll see more sales taxes. We'll keep people here.
We may get more population will grow.
We may get more population will grow also.
That is the hope. That's the hope.
That is the hope. That's the hope the biggest thing that
could improve the city's.
could improve the city's finances is more people living in
this city were built for more.
you know our
You know our roads.
uh our infrastructure
Uh our infrastructure our water system our sewer everything
is built for a larger.
is built for a larger population.
Um it
Um, it would greatly benefit us in the Vitality of the city
if we had more people here, so
and it would increase our bond rating.
so
So to increase our bond rating, so if we didn't do
anything.
at this point, I mean so, you know, I know that there was a
lot of projects and it's going to be my last 1 I know that
there was a lot of projects that was initiated by the best
Southwest right, but I know a lot of those projects had
gaps, uh, they started but they didn't end and we need
something to to to help those.
something to to to help those things, um continue on but if
we didn't do this
how would we be able to
How would we be able to do anything with any of those
proposed?
proposed projects that that started?
I I I I'd be very concerned I suppose we don't um
as the tiffs expire and they will continue to expire um
agnostic of this proposal. Um, we'll just lose revenue and
we'll lose places where we can spend money. So, um, the the
pool that we have will shrink and the the places where we
can do projects.
can do projects will shrink as well.
And as Daniel hurts, uh for the record.
And as Daniel hurts, uh for the record poh, um but to just
double down.
double down on Tim's answer. I mean do has projects and the
pipel.
pipeline now that have gaps as you're saying, um,
pipeline now that have gaps as you're saying um, and if
this is not approved it will certainly take the department
longer to close those gaps and to get shovels in the ground
and to get people living in units. Um, so that it will
affect projects on the pipel.
affect projects on the pipeline currently as well as
obviously future projects that we would like to be able to
do.
And that's not to say with these things.
And that's not to say with these things, um expiring that.
all of our other sister agencies across the county are
going to be able to balance their budgets.
going to be able to balance their budgets because of
of what we're doing here. Um, so I think I think this
sounds like a win. I know I don't see why none of those
other.
other sister agencies not around here rooting us on because
they going to be uh, some of the bigger benefactors off of
this but uh, uh, congratulations, I think this is great. I
I want to commend you all again.
I want to commend you all again on a a I think this is a
brilliant.
brilliant, uh, creative way of front-loading.
development in the city of Chicago. Uh, but at the same
time, don't forget
time don't forget the 27 Wards. Thank you very much.
we all know about the do you mind if I I just want
additional comment on the 1 other thing that I did want to
point out to and we think about this program and and the
the 1 of the real benefits to it. Is that unlike?
the 1 of the real benefits to it. Is that unlike uh, bring
Chicago home. This is not a program Where We Are
Chicago home. This is not a program where we are increasing
taxes. Um, this is a program where we're going to be in
essence reallocating tax.
essence reallocating taxes that are currently coming into
the city already, but
the city already but are restricted in their usage. So I
think that's an important Point, um to make is this is no
new taxes to do this. Um, and we're also targeting programs
that the city has in place.
um already
Um, it already exists that we have a framework for
administr.
administrating. Um, and so um,
administrating. Um, and so, um, you know, there's
You know there there should be less.
You know there there should be less question. And if there
are open questions, we definitely want to make sure they
get answered but there should be less questions about how
is this money going to get?
is this money going to get spent what projects what are the
type? Um, we've provided a lot of detail in the materials
and certainly anyone can answer.
and certainly anyone can answer more questions about that,
but I just want to make sure those 2 distinctions, um were
were understood
Okay, uh, thank you.
Okay, uh, thank you vice mayor. Uh, and we we know how
feel about the 274.
Alderman, uh cicho Lopez followed
Alderman, uh seicho Lopez followed by alderman laspata
Thank you. Um, thank you your woman and I appreciate the um
the opportunity to have the subject matter hearings. I
welcome the chairs new approach, and I think it's very
process oriented. So first let me thank you chairwoman for
for this opportunity.
for this opportunity to really dissect this. Um, I think a
lot of the comments are already being made in terms of um,
in terms of what it Bond what the
in terms of what it done what the bonding does. Um, I want
to focus my time maybe on some of the concerns that I think
we heard from the from the audience. Mainly I'm fully
supportive.
supportive of this by the way. I I think that this is good
government is good policy. Um, it speaks of about also the
efforts to make sure that we have a good
that we are doing everything we can to protect the
finances, but without forgetting about the equity piece, so
really appreciate this opportunity some of the concerns
were mainly around the process. I think we heard at least 1
concern and then, you know have materially people look at
this, right. Um, really had a um,
an opportunity last night with all the mutual to be
another woman tailor with NHS and other organiz.
another woman tailor with NHS and other organizations that
came today as well doing really good work.
came today as well doing really good work in terms of the
small homeowner. That's what we like to focus.
small homeowner. That's what we like to focus on. How can
this be translated? I know.
this be translated? I know that in the past they are
barriers on accessing these
barriers on accessing These funds as a small home owners.
How can we partner?
How can we partner with the cdc's um, because we need to be
in
projections losses, but there's you know potential re
losses. So this is a really good opportunity to be
thoughtful. So this was the concern that we heard today
about the pro.
about the process. I think if there's anyone else that has
been very focused on processes all the women that will as
soon as he come in.
soon as he come in in finance. So I think that we're in the
right in the right track, so in terms of the small
homeowners, how can we really translate this I see you have
home repairs and all that.
home repairs and all that just to address the concerns of
accessibility.
accessibility to this funds.
Yeah, absolutely. Thank you.
Yeah, absolutely. Thank you, uh again for the record Daniel
Herz do
um, so, uh, I'll I'll first start out by noting.
Um, so, uh, I'll I'll first start out by noting as you may
have already seen and the um project.
have already seen and the um project selection and and
criteria pamphlet. There is some additional written details
about this. Um, but you're abs,
about this. Um, but you're absolutely right the process and
um, you know, the equity of the process in terms of how
these dollars get out and who they reach is really
critical. Um do has been looking at uh, making improvements
to particularly
Um some of our home repair program.
Um some of our home repair programs among others to make
that more equitable.
that more Equitable. So for example, um in this last round
we shifted from a 1-day Lottery of applications to a 2 week
long application.
long application process because we know you know 1 day is
not a lot of time.
not a lot of time so you and if people you know Miss it or
forget or something comes up, you know, they lose that
opportunity until potent.
opportunity until potentially the next year or even longer.
Um, so that's 1 1 shift. We've made we're continuing to
look at how to
Target, um that type of assistance to folks who are in the
most need where the, you know need the most
most need where the you know need the most need the most
help to stay in their homes. Keep their family in their
homes. Keep the family or keep the
homes keep the family or keep the home in the family so
they can be passed down to their children.
grandchildren. Um,
And you know, I'll just say from the you know, I represent
the the Pollock.
the the policy Bureau within do I mean we are always
interested.
interested in hearing ideas about how policies and
processes can be.
processes can be tweaked or, you know overhauled to come.
with more Equitable outcomes, but that's that's 1 example.
of of things that we have been doing and you know, we'll
continue to be looking at that program and others to make
sure that we're getting the outcomes we want.
Thank you. Um and this this brings me to um, maybe the
follow-up question of uh, every word. I want to make sure
that we're not forget, you know,
that we're not forget, you know forgotten. I really
appreciate it the the opportunity to have round.
appreciate it the the opportunity to have round tables in
our word and no team and many people.
our word and no team and many people at your age and the PD
and all commissioner B, right and commissioner. Um, Casa
both made themselves available.
both made themselves available because I understand every
Community looks different, uh and has different
Community looks different, uh, and has different needs so I
really welcome that opportunity was
I really welcome that opportunity was very thoughtful to
have tables and different areas INF.
have tables in different areas infrastructure housing
education.
education, um and economic development corridors that need
that investment and um, this program is already available
like a spiff often times is the accessibility and the
geographic area and all in the past. We were Bound in just
in certain areas, right and I think these opportunity to be
more inclusive, right?
I think that um, how can we make sure that every word has?
that opportunity to look at? You know, what the opportun?
opportunities for affordable housing public housing and
anything else in between?
anything else in between cops and trust and maybe other
opportunities that uh will require us to maybe be more
flexible. So perhaps how
flexible. So perhaps, how can you see maybe I tell you that
in our community.
in our community we seeing we had a referendum talk about a
specifically this active.
specifically this active money helps the small homeowner
90% actually.
90% actually voted in favor of it and they increase
significant.
significantly their turnout. So there's a lot of interest
and I think people participate so just a question in terms
of how we can strengthen the process and again, I really
welcome the opportunity we had with both Commissioners, uh,
it was really a change for our departure of the past.
Yeah.
Yeah, thank you. I mean again, um, absolutely.
Yeah, thank you. I mean again, um, absolutely, you know,
uh, we're putting in the uh in the alloc.
uh, we're putting in the uh in the allocation document.
We're looking at 125 to 14.
We're looking at 125 to 145 million dollars over the life
of the bonds.
of the bonds into uh home repair homeowner support down
payment assistance.
payment assistance those sorts of things co-ops. Um limit
Equity models are absolutely ineligible part of that. Um,
we're anticipating, you know near
we're anticipating, you know, nearly 2,000 households being
supported through that and yeah do is absolutely committed
to continuing to engage with Community mem
to continuing to engage with community members. Obviously
members of this body. Um,
members of this body, um in you know, how best we can
deploy those programs and deploy those dollars. Thank you
my final
My final question again. Appreciate the answers um is
around home ownership, and I know you there's an allocation
for single
Fit um, and I think retrofitting buildings looking.
Fit um, and I think retrofitting buildings looking at, you
know buildings that are in our receiver.
know, buildings that are in our receivership, uh buildings
that we can recover. Um, can you maybe expand a little bit
about how can we uh, look at vacancies and how we can
improve a special again those reports for a small home
owners that are struggling. Um, maybe the equity piece of
it. I know some of us,
it. I know some of us in the housing committee are really
interested on that. Um, so maybe you can just a little bit
expand on on that.
Sure. Um, so yeah we have
Sure. Um, so yeah, we have a number of programs, uh sort of
focusing on some of the areas you talked about there's as
you said the single family home.
you said the single family home retrofit and energy
modernization, uh, which is a sort of separate bucket of uh
home repair money.
home repair money for low and moderate income homeowners
specifically focused on uh energy efficient, uh efficiency.
efficiency, uh repairs that you know, not only have a
climate effect but also, uh should lower utility costs
right and make it more sustainable financially.
right and make it more sustainable financially for not only
sustainable environmentally, but sustainable,
sustainable environmentally, but sustainable financially
for the homeowner, um to stay there. We also have um,
another 665 to 80 million
in what?
in what we're calling Rehabilitation and preservation of
ownership housing.
ownership housing and that is you know programs like
rebuild.
rebuild Chicago where do partners with the Cook County
Land.
Bank to identify vacant and abandoned properties.
Bank to identify vacant and abandoned properties, um in you
know areas of the city that have not received a lot of
private sector investment and uh, we work with the land
bank with other cdfis.
bank with other cdfis to um, you know,
not necessarily acquire because the land bank might already
have them but
to rehab those properties single family homes.
to rehab those properties single family homes 2 flats those
types of of buildings and return them to productive use put
put families in them and and sell them.
put families in them and and sell them, uh, so that they
are building home ownership.
are building home ownership within a community rather than
um, you know, deter
um, you know deteriorating the community
Thank you. Thank you J.
Thank you. Thank you chairman. I appreciate that. I know
that there's other pending as a housing chair. I seen the
need so I think this is definitely needed. We need to
complete.
complete these projects that are in process and you know
working.
working together with every council member to ensure that
we have these.
we have these 3 billion dollars when we match the fund. So
thank you chair women.
thank you chair women and and fully supportive of this
effort.
Thank you all.
Thank you all the message and Lopez Alderman the Spotify
follow.
followed by Alderman Mosley followed by Alderman Lopez.
Thank you so much chair. I'm I'm really glad that we're
having this conversation. That's the con-vers.
having this conversation. That's a conversation.
probably decades in the making if you
Probably decades in the making if you've been in Chicago
for any length you remember when there was.
for any length you remember when there was a
phone book shaped newspaper called the Chicago Reader, um
that I mean Benji.
that I mean Benji ravski has been writing about what we're
on.
on the brink of
for 20 years now.
for 20 years now and so to be in the moment feels really
meaningful.
meaningful to me. There's a there's an absurdity.
meaningful to me. There's a there's an absurdity to tips
truly for how powerful it is. I mean the example I would
give when someone was trying to open a new business in my
ward and they had opened.
ward and they had opened a lease on Grand Avenue and were
like great we're in the spiff and I had to break it to them
you
them. You opened a lease, uh,
them. You opened a lease, uh on the wrong side of the
street you really should have
street. You really should have booked it on the south side
of the street because we were just outside of
boundaries.
It's an absent.
It's an OB patently absurd way to think about and how to
move on economic development.
I'm sorry, I Alderman that's a weekly occurrence. It's
literally a weekly call.
literally a weekly call I have with people.
I'm ready to be done with that. I trul.
I'm ready to be done with that. I truly and sincerely am um
but to talk about
um, but to talk about some of the
old questions on this so
when we when we talk about
When we when we talk about the the Tif process the fact that
I was looking at this we have.
I was looking at this we have 19 tiffs expiring.
Next this year this year end of this year.
11 at the end of next year 13 at the end of the year
following you headed up.
following you headed up on the chart earlier, but when we
talk about the relationship with Springfield, like not only
historically what has happened, but what can happen
we can only get 4 tiffs approved per session, correct?
we can only get 4 tiffs approved per session. Correct? Not
per year but per session, right? Uh
per year but per session right, uh that historically yes.
That's that's what we've been I think an unofficial cap
that's been applied to the city.
But it it is.
Not it's more.
Not it's more than highly unlikely that we're going to see
a majority of these.
a majority of these tiffs approved over the next few years,
correct?
I mean there's more right now.
I mean, there's more right now than could be I extended
certainly coming up.
certainly coming up in the next few years. But um, I mean,
yes, I agree with you.
I appreciate that because I
it it Bears talking about the
we're not talking.
we're not talking about something that may happen the
decline of these tiffs the
decline of these tiffs. The revenue that they produce is
happening and the the ch,
happening. And the the choice is only what are we going to
do about it from?
do about it from my perspective. Um, I also wanted to ask
about all uh, do you mind having brought up this idea?
about all uh, do you mind having brought up this idea of
return return on investment? So what?
return return on investment? So what do we see revenue
generated from this kind of work?
generated from this kind of work and arguably and maybe you
can elaborate this a well functioning Tiff is
illustration of that investment the increment comes out of
um property tax increases coming out of the Tif can
um property tax increases coming out of the Tif. Can you
speak more to that?
um, yeah, I mean I with the fundamental premise I
Um, yeah, I mean I with the fundamental premise I agree.
It's you know, you you and for most of our projects.
It's you know, you you and for most of our projects we're
talking about. Um,
buildings or vacant Lots or whatever that are
either dilapidated or empty or whatever the case may be and
they have a very low function.
they have a very low functional tax, um value right now
today and making the investment.
It certainly improves the property which helps.
It certainly improves the property which helps the fair
market value or help increase the fair market value, but
occup.
occupancy is the biggest driver of of having.
occupancy is the biggest driver of of having a a better a
higher tax rate for the city. And so
making these Investments
Making these Investments. It ensures that there will be
occupants and that they are in productive use.
occupants and that they are in productive use and there's
a, you know, certainly catalytic effect, too.
a, you know, certainly catalytic effect too. Um, I guess
it's to your point. We do have some figures that we can.
to your point we do have some figures that we can pull as
part of the Tif Sunshine ordinance that um,
we're required to to provide pre- and post.
we're required to to provide pre- and post tax um figures
so we'll we'll
pull those and be able to share them out and that'll be the
basis of some of the the the um analysis that we provide.
this body. I feel like that only gets at a part of it
because that doesn't it take into account when you open a
new business.
new business the sales tax generated from that business the
in
The income tax is generated from the workers, even though
we get a fraction.
we get a fraction from the local government distributive
fund, which is a whole
fund which is a whole other conversation, but the the
return we we see and I think that's worth stating and
making Maybe
making maybe a broader case about
um, yes.
um, yes, we will I I is candidly I it that is very hard and
I especially for this first present.
I especially for this first presentation. I would not have
wanted to come in with numbers that I do.
wanted to come in with numbers that I do not feel Ironclad
and saying behind. I mean I hear you a lot I've
and saying behind. I mean I hear you a lot. I've heard the
body loud and clear. I've you know said my position on it
and so I will definitively provide this to you.
everyone is clear what we'll be looking at at this point.
and to be clear I mean to be encouraging rather than
know it's absolutely I'll say that related to the full
in Milwaukee too, if which is a significant percentage
the First Ward I was looking back at the
and that Tiff in 200.
Generated 726,000 in increment.
in 20, and that wasn't 2002 and
In 20, and that wasn't 2002 and 2022. That number was 17.
million.
and to put that in perspective
if I take the 79th Cicero 79th Street Corridor 79th Street.
Southwest Highway 79th Street vinc.
Southwest Highway 79th Street Vincennes tiffs together that
adds up to 4.2 million in annual.
adds up to 4.2 million in annual increment if I look at the
Roseland, Michigan Tiff in 2002 that
Roseland, Michigan Tiff in 2002, that was 196,000 over the
life of
the life of that Tip since 2002 that has generated less
than the annual revenue from the Fullerton, Milwaukee Tiff,
and that's not a reflection.
on the community or politics that to me is a reflection on
racist patterns of disinvestment going over decades in the
city of Chicago.
city of Chicago, but it it speaks to the inequity that is
baked into the current Tiff struct.
baked into the current Tiff structure in Chicago, which is
why I'm glad we're having this conversation the last thing
that I would say when we talk about
oversight
um, I feel like there's something analogous here to how
Tiff's currently functioning because when we think about
the spiff program, for example, every single 1 of those
spiff allocations doesn't come through the finance
committee because otherwise we'd be here.
committee because otherwise we'd be here for 9 hours every
month. There's
There's what comes through 50 smaller.
there's what comes through 50 smaller allocations, and then
there's what comes through we
there's what comes through Redevelopment agreements and we
would expect probably.
would expect probably a
kind of a similar model with what we're talking about
today.
Um, yeah, I mean, yes, it's it depends on the projects and
programs again particularly for the new things, but I think
I
we can say that we've heard.
we can say that we've heard this this body and will provide
a wholesome response for how all of this stuff will work
and we'll provide it through the chair.
And I think that's fair and it it.
And I think that's fair and it it makes sense. And I
understand and I applaud the need for.
transparency and predictability and accountability
but I say that against I feel like there's this.
There's this backdrop of skeptic.
There's this backdrop of skepticism towards the
administrative state that exists.
administrative state that exists in the United States right
now there were Reckoning with
now. There were Reckoning with and there's a part of me
that wants about that accountability.
that I balanced against the trust that we
That I balanced against the trust that we hire extremely
talented professionals.
talented Professionals in the city of Chicago.
who I believe
Who I believe in their ability to execute.
Who I believe in their ability to execute on well-crafted
ordinances.
so that
So that that's a balance that I want to speak into right
now and share. I appreciate the time. Thank you.
Thank you Alderman with Spa Alderman Mosley followed by.
Alderman Lopez.
Thank you so much madam.
Thank you so much Madam chair and again hats off to the
Department.
Departments for coming up with the solution. I mean, it's
been 30 years.
been 30 years since Jeff first started and I'm glad to see
us.
us going in a positive direction. Um as we move forward in
that direction,
I want to make sure that we know and implement.
I want to make sure that we know and implement the lessons
that we've learned so I first want to start with.
that we've learned. So I first want to start with just
stating in my research of vendor payments from tiffs. I
didn't see a lot of my minority owned businesses.
How are we going to change that in the future with this?
this bonding opportunity? Will there be?
this bonding opportunity? Will there be uh preferential
treatment to
residents or residential areas that uh those developers
come from um what we see at increase in minority
businesses.
Or for clarification you talking about the contractor or
the the actual developer?
the the actual developers of projects themselves?
the it V
the it vending would be the the biggest thing but the
payment what I'm tracking is the payments that go from the
tips.
to whatever organization um, they don't seem to be of
reflective or uh, even at times located within those
development areas.
development areas or the Tif areas.
answer
I want to respond to that a little.
I want to respond to that a little bit all the way Mosley.
I think uh, we as Alderman have a lot of say.
I think uh, we as Alderman have a lot of say, um,
in how
and who uh gets to work in our Wards. Um, so that's
something I'm I would you know,
something I'm I would, you know Venture that, uh, he could
answer a little bit of that question.
answer a little bit of that question, but a lot of it is on
us in terms.
us in terms of uh, making sure we're
asking the right questions of developers that come to us
when they uh come to us and they might not have a a
partner.
partner, uh that um, we're aware of or we've got ideas
about Partnerships. Um Alderman, uh, I know brunette does a
great job.
great job of that and I'm sure all of them in Bill does a
great job of that.
great job of that as well. Um, I know I do so there's
ways that you can be involved in those kinds of
discussions.
Got it.
Thank you for that Madam chair. Um
looking at the
Looking at the program. I'm excited about it.
particularly around home ownership
How we ensure? Um
How we ensure um that the goals are met.
Particularly, I look at.
Particularly, I look at my war. That is uh, very very
particularly, I look at my war that is uh, very very much
so single family homes, and that's the fabric of it, but
there's a lot of infield housing.
talk to me more about
the missing middle infield strategy
um sure this is a an effort to dpd's been working on for a
little bit, but I think it's generally
little bit. But I think it's generally intended to say, um,
we have uh city-owned.
we have uh city-owned land and we have it clustered in
areas, and I'm not talking about clust.
areas and I'm not talking about clustered over, you know,
uh,
You know.
You know quarter mile half mile. It's clustered on a block
and that we get.
and that we get developers coming in through um 1 or 2
different.
different ways potentially, um that we have designs ready
to go and that we will say we will pair designs, uh for
this site and the site.
this site and the site itself and go build 10 houses and
those will be um, pursuant to rfps or rfqs. Uh, and then I
think another way is that um the city could step in and
either um do work.
either um do work directly for site work or to engage with
devel.
developers to say. Well we have these 10 projects and we
have sight.
have site work that's needed and we're going to pay you to
do that site work and then construct houses, um on it and
it's meant to um, you know, the missing middle part refers
to its not talking about um,
80% or 100% Ami it's higher than that.
80% or 100% Ami it's higher than that in the areas that it's
not quite market rate, but it's it's
not quite market rate. But it's it's it's a it's a housing
stock that we lack in the city of Chicago today and that it
is needed. Um in order to
is needed. Um, in order to uh, you know, for example helped
black.
black middle class Chicago rebound. Um,
and then it looks like we also have assistance with this
mechanism to make sure that folks can buy those homes
talking about the down payment assistance.
talking about the down payment assistance home repair and
Home Ownership support.
Yes, that's right again for the record Daniel hurts. Um.
yeah, uh the on
Yeah, uh the on the do side, right? It includes home
ownership home ownership.
ownership home ownership programs like home repair programs
for existing home.
for existing homeowners. Um as well as down payment,
assistance, which is it can be a similar to what Tim was
saying.
saying, um paired with uh, programs like City,
saying, um paired with uh, programs like City lots are
working families, which again takes City Leverage.
city-owned land to have Developers.
city-owned land to have developers. Um,
build single family homes to flat
build single family homes to Flats on that Land We pair it
with the down payment assistance to allow those homes to be
sold more afford.
sold more affordably, um to Chicagoans.
sold more affordably, um to Chicagoans, so absolutely
and then you take it a step further.
And then you take it a step further by having uh the
retrofitting program.
retrofitting programs for single and multi family which to
me.
me means that you're going to be having bacon lot.
me means that you're going to be having bacon Lots returned
to the tax roles, but also the current housing stock still
maintaining. Um, it's Integrity its its curb appeal.
value.
Which to me again? Rod is
which to me again Rod is the the property values and so
forth in some of these areas.
Yeah, that's right, and I think
Yeah, that's right. And I think you know we um, you know,
the the the the fund.
the the the the funds uh in the bond if approved.
the the the the funds uh in the bond if approved would
certainly fund, you know catalytic new.
certainly fund, you know catalytic new construction. Um,
You know Main Street in the you know, whatever community.
you know Main Street in the you know, whatever Community uh
developments, um, you know, bigger multifamily buildings,
but I think we've also definitely heard from folks in this
chamber as well as just you know,
chamber as well as just, you know City residents that like,
yeah we want we want those projects and
yeah, we want we want those projects and we want, you know,
we need uh money to repair our roof or we need money to
fix.
up the vacant too flat on my block or the vacant land on.
you know to build on the vacant land on my block and that
we need those sorts of Pres.
we need those sorts of preservation and infill projects as
well. And so that's why they, you know have a prominent
role in this allocation plan. So you're creating a work and
then I'm looking at the jobs and Workforce training grants.
In the 21st Ward I have over 300.
In the 21st Ward I have over 300 people who have gone
through a pre-apprenticeship but need on the job.
through a pre-apprenticeship but need on the job training.
How is this going to be helpful to them?
um, well it's this this program is uh sort of an offshoot of
what
of what Tiff Works was on. Tiff works is going through a
Rebrand and refresh and it will re launch, um as soon as
well, but I think it's it's meant to say it's meant to
attract.
employers and to employees and so some of these people that
they need on the job training, uh, they could come in the
business could apply for the these Workforce funds.
business could apply for the these Workforce funds and say
like this is what it's going to be. This is what they need
to do is
to do. Is there a a a vendor who is actually going to be,
you know teaching this stuff or is it a classroom setting?
Um,
um, and either case those are eligible costs and and the
the employer um can use those funds to offset the cost of
training up and and upskilling.
training up and and upskilling new employees.
And Madam sew my last 2 questions 1, you know.
And Madam sew my last 2 questions 1, you know, this is good
work is the work that I think.
work is the work that I think uh, we've been waiting for to
see is a hear comments from my colleagues.
There's
intent of the ordinance and so forth and then there's the
implementation of it. What are we going to see as a guiding
principle in these?
principle in these departments to make sure that we achieve
this this Equity um, and that we are address.
this this Equity, um, and that we are addressing those
communities with deeper social economic ISS.
communities with deeper social economic issues.
I I think a lot of it. I'm sorry Tim Jeffrey dpd a lot of
it.
I I think a lot of it. I'm sorry Tim Jeffrey dpd a lot of it
is going to be um
You guys demanding, you know the best from our departments?
and um, certainly some of that will come through. Uh, the
and um, certainly some of that will come through, uh, the B
annual hearings or meetings that we're going to be coming
and presenting.
and presenting outcomes. What have we done? Um, how has
gone in the last 6 months and what are we looking forward
to doing?
to doing in the next 6 months and
I I mean I you've heard all the remember.
I I mean I you've heard all the remember that if I he will
he and you all will will.
he and you all will will let us know if we're not on the
right path and and there's adjustments.
right path and and there's adjustments that can be done.
that you actually answered my
That you actually answered my last question which is going
to be about how can this body? Uh be more supportive of
this outside of just passing it. So, thank you and thank
you madam chair.
Thank you Alderman Mosley Al.
Thank you Alderman Mosley Alderman Lopez followed by
Alderman Bill followed.
Alderman Bill followed by Alderman Lee.
Thank you chair.
Thank you chairman and good afternoon.
members of the city council
um
Some questions if I may what Community Partners were uh
contributed to craft.
contributed to crafting this ordinance.
um
we've we've done a lot of
We've we've done a lot of Outreach. We've like as I said
specifically what part well, there's over 200 so I can get
you sorry.
So I can talk and look through at the same time. There's
over 200 I can get that list.
over 200 I can get that list to you through the chair. We
people we've briefed.
Okay.
If you can provide that through the chair, that would be
great. What 4 profit partners and developers were all so
they're among the 200 as well so I can get you.
they're among the 200 as well so I can get you so if you
could tell me how what was the ratio then?
could tell me how what was the ratio then between the
community and not for-profit versus the for-profit, uh
equal.
probably
skewed 60% Community Based organizations and uh nonprofit
developers and then maybe 40% for profit. Okay.
Um, I think we already discussed what the length of the
terms of the uh obligation.
terms of the uh obligation Bonds were but I had a question
with regards to something that was on.
with regards to something that was on the slide with um,
and I think my colleague from the 34th Ward was alluding to
it, but
Um, what is the immediate Revenue? Uh
What is the immediate Revenue? Uh
tax revenue infusion going to look like
is it?
Is it 1.006 billion? Is that what's?
is it 1.006 billion? Is that what's coming back to the
general?
Conference for all the taxing bodies. I I believe that's
that would be the current um amount of total revenue
collected by tiffs today.
collected by tiffs today net of any transitive revenues. We
pulled those out because they function so differently, so
excluding the transit.
excluding the transit and excluding those that will
continue what
continue. What would be the
total that is
Total that is now.
Going to be distrib.
Going to be distributed to the individual tax.
Going to be distributed to the individual taxing bodies.
Um, it will I didn't see that number if you have it.
the uh total
the uh, total amount of uh increment that we would expect
to be coming back initially would be probably around.
to be coming back initially would be probably around 160
million dollars and where you and the record you are.
And for the record you are. Oh Jill Jaworski. Thank you.
And what page is that on please? Uh, it's not on 1 of these
pages, but if you go to page 21 where it has
pages. But if you go to page 21 where it has new revenues,
you can see that the amount for CPS is 82 million.
and
CPS is approximately half.
of the property tax revenues
So in year 2025 if I'm reading this.
So in year 2025 if I'm reading this correctly then we're
looking at.
looking at 1030.
about
About 160 million. That's so that would be what was coming
back to?
back to everybody? Yes. So you have that breakdown.
what?
across all taxing bodies what that will
Across all taxing bodies what that will look like do I have
it in a spreadsheet? Um,
it in a spreadsheet? Um we can do we was in the model that
you were provided.
This is this model for all taxing bodies. I believe in the
materials that Tim sent around I think.
materials that Tim sent around I think okay. Well, I'm just
gonna ask if we could have that.
gonna ask if we could have that sent to all of us, so
so the city share will be 35 million, correct?
Correct. Okay.
so my question
So my question the question I guess I have is that
with regards to
many of these programs that are being included in this
ordinance We already pay for it correctly.
that our non-pilots like the home modification and some of
these other things that's what we are. That's what we
already pay for currently through.
already pay for currently through the corporate fund,
correct.
uh know most
Uh know most of those are being paid for out of Tif
dollars.
No, we don't do.
No, we don't do the home. We don't do a Citywide home repair
program through Tif dollars.
program through Tif dollars and we have that already. So
how does that pay programs? Yes, but the majority of the
The programs that are outlined here are being.
The programs that are outlined here are being paid for out
of 10. Not all but majority, so
of 10. Not all but majority so but
the question again is we have programs that we currently do
that are included in this ordinance, correct?
Uh, yes.
Uh, yes Yes program structures that we do today and how are
they paid for?
are they paid for uh for the dpd side? Uh, it's either the
existing CRP bonds Tiff or neighborhood opportun.
existing CRP bonds Tiff or neighborhood opportunity funds
so dpd doesn't operate.
so dpd doesn't operate any of these programs.
with corporate
With corporate fund dollars. No, none of the allocations in
here.
here from dpd or corporate dollars.
and when it comes to the you talked about the process and
priorities, um of the community who sets that
I'm sorry. What slide is this? It's not. It's a question.
because we
Because we've talked about for selecting the projects.
You're asking. What's the who sets the process?
You're asking. What's the who sets the process by which
these programs allocate resources? Yes, because I've heard
about half a dozen times we talk about
about half a dozen times. We talk about the Define if
there's a defined need defined Pro.
there's a defined need defined process who sets that.
there is
There is new system.
So again most of the funds.
So again, most of the funds are going into existing
programs that have existing Pro.
programs that have existing processes that are
um in certainly in the Doh case, um, you know vast
majority.
of our programs and projects are at least partially funded
through federal dollars and so often there's some federal
requirement components in terms of how we select them.
addition to some you know, uh criter
addition to some, you know, uh, criteria or or process
components engagement that do does on its own, uh, that it
determines and collabor.
determines and collaboration with um,
you know our
You know our stakeholders members of this body, you know,
for example again.
for example again, I'll go back to the qualified allocation
plan because that's the largest.
plan because that's the largest single allocation of of
funds. Um, we post you know, every we do that every 2 years
we post the
years. We post the uh draft qap for public comment.
years. We post the uh draft qap for public comment, um and
incorporate comments into the Q.
incorporate comments into the qap, uh to make adjustments
when we publish the final version. Um, you know that that
type of iterative process is you know, what we'll continue
under the bonds so that qap
which will now be funded through this ordinance.
When will they meet because I also heard that we are
discussing.
applications for items that have already been approved and
waiting for money
so how
So how do you set a priority backwards if we're moving
forward?
forward with how we're going to have a new process?
Because that qap wouldn't be inclusive.
Because that qap wouldn't be inclusive using this model.
based on
Based on applications that are already been accepted.
So, how do you look back with what your priorities are
moving forward?
So we do do has.
So we do do has been doing a qap every 2 years. Uh, so we
did 1 in.
did 1 in 2023. We announced the uh results or the the
awardees of those. Um, just a couple weeks ago. We would do
we plan to do another 1.
we plan to do another 1 in 2025 and um, you know, the the
2023 Q
2023 qap uh includes, you know, the priorities that we uh
put in the selection that criteria selection pamp.
put in the selection that criteria selection pamphlet. So,
um things like cost effect.
um things like cost-effectiveness things like, uh, an
actual equitable distribution.
actual equitable distribution across the city of projects
where we can have the most bang for our buck in terms of
community revitalization. So I mean those
community revitalization. So, I mean those core, um, those
core priorities are reflected in the projects and the
pipeline as well as
pipeline as well. As you know, the ones that we would do in
a future round. Um, but you know when we make an award as
a future round. Um, but you know, when we make an award as
1 of the public commenters said, um, the the low-income
housing tax credits that we allocate through the Q.
housing tax credits that we allocate through the qap only
pay for between 30 and 70% of the cost of building and so
we have to our yeah understood. Yeah, so but again,
a priority from a year backwards from a department under a
different Administration who was not necessarily responsive
to the needs of a community.
to the needs of a community and telling me that that's
going to be your model moving forward.
going to be your model moving forward doesn't instill a lot
of confidence in me. So I have concerns what I'm hearing
that especially as we are here now in 2024 discussing 1.2
billion dollars.
billion dollars based on someone else's model.
billion dollars based on someone else's models that we're
not Equitable and inclusive.
So I I'm raising that as a concern.
So I I'm raising that as a concern because it is a concern
to communities that were struggling.
to communities that were struggling a either with the
Department of Housing or B with the Department of planning
because DP.
because dpd
Was Notorious for not listening?
Was Notorious for not listening to the community or to the
local Alder?
Depending on the will of whoever was on the fifth floor.
Depending on the will of whoever was on the fifth floor and
I want to make sure that regardless if you're going to have
this process.
this process that you don't have this.
this process that you don't have this politicized process
of other individuals coming.
of other individuals coming in and telling us what our
priorities are.
priorities are in a local award or community.
moving on
we talked a lot about
tips and how they are
Good in their tracks and and where they're at.
was there
Was there ever a discussion on talking about amending the
state stat?
state statute to for tiffs so that in areas?
state statute to for tiffs so that in areas that are
profitable like in Walter. Brunette's Ward or other?
profitable like in Walter brunette's Ward or others or
Brendan Riley's or
alderman conways
where instead of having to be contiguous and connected in
neighboring that we actually can Port just if it's in a s
same city or something like that?
Uh, yeah.
Uh, yeah what I think what you're talking about we in the
past called the robin.
past called the Robin Hood effect. Um we have
run down that Approach at least in my
Run down that Approach at least in my tenure at least 3 or
4 times. Um, I'm ending the death.
4 times. Um, I'm ending the Tif fact it's just
It's a it's a bear. I mean, I think it's gone through 1.
since it
Since it was originally approved in the late 70s. It's gone
through 1 major.
through 1 major reform in 1999 and has not really.
through 1 major reform in 1999 and has not really changed
since then and there's just it's it's a
in my experience has been incredibly difficult to affect
like so so you're not trying it's possible. We're just not
trying.
trying we have tried in the past and we've been
unsuccessful.
What are the uh Chicago recovery dollars?
What are the uh Chicago recovery dollars committed to and
how much has actually been spent.
if you want to give that through the
If you want to give that through the chair, that's fine. I
don't have a full list.
Um Alderman I can say for for do 100.
Um Alderman I can say for for do 100% of do's recovery plan
dollars.
dollars are um are committed to particular projects.
dollars are um are committed to particular projects either,
uh over half of the dollars are associated.
uh over half of the dollars are associated with projects
that are either complete or under construction right now,
um the bulk of the rest, uh,
Um, the bulk of the rest, uh are um Contracting. Um, uh,
Or obligated for a particular project.
with regards to our sister agencies, who are
Going to also be seeing an infusion not.
Going to also be seeing an infusion notably CPS.
you know oftentimes they
You know oftentimes they come before this body for Tif
dollars.
Have you discuss with them that they will no longer be
coming here?
coming here and have to be responsible for their own
Capital plan moving forward.
Uh, yes, we've had conversations with OC.
Uh, yes, we've had conversations with ocps on the Park
District so far and they are 100% aware that that's going
to be the case moving forward.
Uh, and I should say will that be the case moving forward?
to our commissioners? And whomever that we are not going to
be giving them.
be giving them tips since we don't have it to give anymore.
I think to the extent that Tiff.
remains and that a t
remains and that a TIF district is still in place and that
there's a a desire to do a project that could still happen.
Um, certainly it will shift the amount of money that we
provide to them.
provide to them because the total amount of money in our in
our Revenue.
our Revenue will drop so they will it will certainly be a
change for them. But
Well, I would say.
a couple
A couple things as I close.
I think we're all worried about the equitable.
I think we're all worried about the equitable distribution
of money.
the
The hardest part especially on the southwest side in part.
particular neighborhoods. I'm familiar with is that
when we look at
the neighborhood opportunity fund which we help create with
Rahm Eman.
Rahm Emanuel. There were only specific targeted districts.
that morphed into invest Southwest which B
that morphed into invest Southwest which basically built
upon that and then that was still basically only in certain
areas.
all of us wanted to see opportunity as we
All of us wanted to see opportunity as we've seen through
those pro programs EXP.
those pro programs expounded and expanded to other
communities that need them and need.
communities that need them and need those funding options.
So for that I'm all for it.
But I'm very concerned.
But I'm very concerned when we continuously ask.
But I'm very concerned when we continuously ask for more
and more debt to be piled on the 5.
and more debt to be piled on the 51 billion dollars. We
already owe.
and we don't have the accountability that we need and
demand.
we had
2 different major Bond issues with the previous
administration we had 2 and a half billion with invest
Southwest and even today as we're talking about this 1 of
the first things that you guys mentioned was that
the 2 departments here.
commit to buy annual meetings
But I didn't find.
But I didn't find that in the ordinance.
So where's the reporting and hearing requirement to make
that a possibility?
that a possibility we will be addressing that and we will
be addressing that.
be addressing that introducing a substitute.
So that will be in here. Yeah, and and I would add excuse me
Alder.
That by annual is not not uh enough.
that by annual is not not uh enough we
bases like
do
from the budget office
From the budget office on some of our other programs. So I
just want to put that on.
just want to put that on the table as well. Well, well
Madam chairman, I would 100% support you on that because I
think quarter.
think quarterly reporting by the Departments showing where
the money went.
the money went is a good thing if you want to instill
confidence. I also want to say that I think that
in this ordinance
we have
We have to clarify a few things.
for example
For example the whereas at points out the 4 or 5 different
things that you refer to as purpose.
You know, we understand that.
you know, we understand that as it says the city has
determined its in its best interests of its inhabitants. Uh
and for the welfare of government for the city to pay for
the cost of these purposes, but at the same time.
the cost of these purposes, but at the same time we have in
this ordinance as well.
this ordinance as well and in 2 different areas.
Where we say that?
Delegate that.
Delegate that delegation of authority is necessary because
City.
city council itself cannot advantageously expeditious.
city council itself cannot advantageously expeditiously or
does or conveniently exercise such Authority and make
specific determin.
specific determinations.
That language is an insult to this.
That language is an insult to this body.
When we know we can meet.
When we know we can meet even remotely if there are issues
now that pertains both.
now that pertains both to the sale and execution of this
bonding Authority.
bonding Authority and I think that if we are able to say
that we as a city council.
can meet
Can meet can meet uh even remotely if necessary.
Can meet can meet uh, even remotely if necessary, then that
kind of language should not be included in this ordinance.
as well as we are to consider it a substitute because
council can meet expeditiously we can come together if
there's a need to move Beyond this and I don't believe any
blank.
blank check should be given without us being able to come.
together. There should be limits to how much we're willing
to let any Administration have unilateral author.
to let any Administration have unilateral Authority on this
matter.
We said the same thing when?
We said the same thing when Lori Lightfoot executed
emergency Powers. We said the same thing.
emergency Powers. We said the same thing when she were
trying to do what she was doing.
And I think the same standard should be applied.
And I think the same standard should be applied today. So I
would offer that as substitutes and I would also just end
on this note.
Yes our population.
Yes, our population was larger and there was a lot of
reasons why people were leaving.
To minimize all of that.
To minimize all of that is just because of Housing and
affordability.
is a slap into the face to everybody who's left because of
the crime and violence on our streets. Do not forget.
the crime and violence on our streets. Do not forget that
and do not manipulate that point to try to get this passed.
Thank you Alderman Lopez all the um commissioner Boatright.
I
Boatright. I saw your hand was up. Did you want to add
something? No.
something? No, I think we I think we covered it. It was
just in terms of how we prior.
just in terms of how we prioritize neighborhoods and just
the flexibility with the economic.
the flexibility with the economic development Bond versus
the Tif and the question of have we thought to go to
Springfield to get more flexibility. Um, I just wanted to
address that this is 1 of the benefits for the bond. We
have more flexible.
have more flexible, um eligible costs than is.
have more flexible. Um eligible costs than is limited by
Tiff. So I just wanted to kind of state that thank you
commissioner Alderman bill.
Thank you madam. Chairman
Good afternoon, everyone.
I'm going to jump right?
I'm gonna jump right in and ask a
pertinent question
if the people of Chicago voted Tuesday that we didn't
trust.
if the people of Chicago voted Tuesday that we didn't trust
with a 100 million. Why should we trust?
What at 1.2 billion?
We what's your next question? That's not
that's
that question is uh related to the referendum. I'm
asking if the people of Chicago did not trust.
asking if the people of Chicago did not trust this body.
To speak. I'm sure you have an answer to that. You want to
answer your own?
answer your own question. No, I would like to know why why
would we?
would we trust?
the people of Chicago are
The people of Chicago are asking that question. Why would
why would we have the confidence in?
why would we have the confidence and Trust to spend 1.2
billion?
That's a very good question. Well.
That's a very good question. Well, I'll answer that um to
the extent that I can first.
the extent that I can first of all this is not a project.
that has a blank check attached.
that has a blank check attached to a blank slate attached
to it. This is a program that uh that has identified. Uh
uses.
uses for both affordable housing and economic.
uses for both affordable housing and economic development 1
1, uh 2. This is something that uh has um oversight by the
city council.
Okay, how does this body have?
Okay, how does this body have oversight when the
Departments?
Departments are going to be Distributing how this money is
going to be spent.
with outcome and before this body
With outcome and before this body. Well it comes before this
body that's in the ordinance.
and the recommendation the Departments the Departments are
going to be picking which
projects are going to be funded, correct?
We make recommendations.
Okay.
so again, how
so again how give me the confidence that a project in my
war is going to be recommended.
well
Well, I think that uh, you've got a lot of project.
Well, I think that uh, you've got a lot of projects in your
work that have been recommended. Okay, I still would.
work that have been recommended. Okay, I still would like
approved and approved by this body. I can the Department's
answer to the question.
Yeah.
If I could if I can just chime in I think you know.
If I could if I can just chime in I think you know as it
relates to the bond, you know, we work.
relates to the bond, you know, we work closely with our
aldermen in terms of what the priorities are for your
respective Wards, and we want to make sure that we're
responsive we
responsive. We know every Corridor has different challenges
and most important.
and most importantly different opportunities this Bond
allows us to leverage those opportunities leverage those
assets.
assets ensure more Equitable investment in our
neighborhoods. When I look at your church, if you have a
fairly healthy Tiff and so when I think about all the job
creation opportunities, that's
creation opportunities that's happened in the ninth ward. A
lot of it is because you've had a healthy Tiff when I look
at other wards that have less of a healthy Tiff they're
limited with their ability to make an impact.
limited with their ability to make an impact as it relates
to economic investment. And so when we think about
opportunities throughout our city, I would argue that both
departments will want to be really strategic.
departments will want to be really strategic and ensure
that we're um, investing in all of our neighborhoods with
Basically priority to the South the west and the Southwest
sides.
sides as referenced in the bond book. The other thing I
think.
think is important to note is with every single alloc.
We have how we're going to review it.
And so I think that is fair to say we would you know.
Be very careful.
be very careful and strategic to ensure that um
investing in our communities in a way that's creating jobs.
investing in our communities in a way that's creating jobs
putting vacant land back in productive use support an
existing homeowners and ensuring that we've got Catal.
investment across all of our corridors. We want to be part.
partners here. It feels like there is a lot of mistrust and
a lack of trust from you know, previous administration and
I think that 1 thing that you all can rest assured of is
that these 2 new Commissioners that are at the helm of both
departments.
departments want to engage authentically and want to be
partners and collabor.
partners and collaborative as we're making decisions. We
want to transform all of our neighborhoods. It's not a
focus on 1 specific.
focus on 1 specific neighborhood. We want to transform all
of our neighborhood.
of our neighborhoods in a really thoughtful Equitable way
and this is 1 tool to do it. We've relied far too much.
and this is 1 tool to do it. We've relied far too much on
Tif and Tiff is not the most equitable.
Tif and Tiff is not the most Equitable tool and so we're
just we're focused on equity and we're focused on impact
and it's outlined in our bond book.
and it's outlined in our bond book category by
category with each allocation
Thank you commissioner. So.
Thank you commissioner. So is the selection process and the
scoring process going?
scoring process going to be open and transparent?
It can absolutely be you. Can you can ask for?
It can absolutely be you. Can you can ask for the scoring
Matrix for any deal that we review?
and Any Grant application that we
And Any Grant application that we receive.
who's
Who's who's all going to be reviewing project?
from
From each department like individual people is it?
From each department like individual people. Is it only the
Departments people within the department? I mean that's
going to be part of this review process. Yes. That's how it
exists.
exists today. Okay. Is that open to the public? Is it open
to the aldermen to come and sit in and listen to the review
process?
process our order men can ask for our scoring?
process? Our order men can ask for our scoring Matrix and
we're happy to share our Matrix. No, that's not my
question. My question is can the alderman be?
question. My question is can the alderman be in the room
for the scoring process?
I mean as it exists today that hasn't been a request.
we've received from any Alderman. Um, I think that we can
explore opportunities for a deeper Eng.
explore opportunities for a deeper engagement with our
aldermen, um to review project.
aldermen, um to review projects project by project some you
want to weigh in. I mean we right now when we get an
application, um at the end of a competitive round when the
application round closest we email every single Alderman
with the list of projects.
with the list of projects and we ask for feedback on those
and then before we make any selections or recommendations
we engage with alderman
we engage with Alderman to say like is this a project we
need to be doing want to be doing um, and then I mean,
that's our our project.
that's our our project when we score these projects.
projects that go through a standard review process
Projects that go through a standard review process. Um,
they've scored the way they're scored and the they they are
numerically ranked and so
it to the extent that we get input.
it to the extent that we get input from an alderman like we
take that into account during the review Pro.
take that into account during the review process and it
Bears out accordingly, but like it's
Bears out accordingly. But like it's it's yeah, it's it's
hard to it's there's not a room to sit.
hard to it's there's not a room to sit in to to to like
review these with with the Department. Okay.
So, um
you mentioned that you
You mentioned that you you met with several hundred
organizations. Um
are
Are any of those organizations going to be coming before us
to testify?
There was 10 earlier today that did.
there was 10 earlier today that did no I think to where we
can ask questions not just give
questions not just give testimony.
Because I reached out to the Civic.
Because I reached out to the Civic Federation and they
weren't invited to this meeting today.
They I mean we we we we briefed the Civic Federation we
gave them all the materials they requested.
gave them all the materials they requested and
that's that's where things stand with.
that's that's where things stand with them if they would
like to weigh in I would I would welcome their input.
okay, because from what I understand, they're not in support
of this as of yet.
uh because this it lacks
Uh because this it lacks detail and um, it lacks. Um,
you know how these things are going.
You know how these things are going to be presented, you
know, which projects which wards?
know, which projects which Wards, you know, which
communities uh, you know, it it lacks, you know specifics
on how this money is going to be.
on how this money is going to be spent Alderman. I'd like
to address that really quickly. I don't think they have
I haven't expressed that opinion in.
I haven't expressed that opinion in a way that I have seen.
the report that they did release on the brink Chicago home
referendum. In fact cited the bond book associated with
this proposal as a best practice that should be followed in
the future. So I I don't think that's an accurate
representation of their opinion.
representation of their opinion, you know, and that's not
the conversation that I had with them. Um, so
I digress.
I digress um.
what happens if we
What happens if we Bond?
on a piece of property and that we go borrow that
On a piece of property and that we go borrow that money and
they go in for a reduction.
they go in for a reduction because they have a 60% vacancy
rate and they get a reduction.
rate and they get a reduction but we borrowed on that
money. How does that get paid back?
So we're not. Um despond is not going to be secured by
individual.
individual pieces of property. So it's
You know back in the day when uh the city.
You know back in the day when uh, the city is issued Tiff
bonds.
They would be secured.
They would be secured by revenues from the Tif.
so very
So very specific.
Um the city moved away from that.
Um the city moved away from that quite a while ago. Um,
this is not like that. So these are General obligation
bonds. There will be a a tax.
bonds. There will be a a tax levy associated with them a
full faith and credit pledge.
Um, there are
oh, I'm sorry if there are projects.
That there are investments in.
that there are investments in that ultimately lead to
a reduction in their property value. That's something that
that property owner would work out with the county.
We don't or
We don't are not that that that wouldn't reduce the amount.
of money that you're looking to borrow on that particular
property. We're not borrowing on a particular property.
That's not how it's struct.
That's not how it's structured. So if I understand that
let's just say, you know, there are several properties.
let's just say, you know, there are several properties that
go in and get a reduction in their property taxes.
thought based off of
paying back on this particular bond with the tax.
paying back on this particular bond with the taxpayers be
on the hook.
To repay that money.
outside of the taxpayers will be on the
Outside of the taxpayers will be on the hook to repay.
this Bond when we issue it regardless of
the performance of our property tax so so potentially there
could be an increase that we would have to pay back if
several properties go.
several properties go in for a reduction in their property
because they have a vacancy rate.
then we
Then we would have to pay more money back on this because
we wouldn't have it.
we wouldn't have it coming in from 5 or 6.
we wouldn't have it coming in from 5 or 6 different pieces
of property.
Um, this is uh, yeah. I I just
Can't imagine that 5 or 6 properties is going to have any.
significant
impact
um, but with any time that the city
Um, but with any time that the city issues that there is
risk associated with it. Okay. We are on the hook.
risk associated with it. Okay. We are on the hook to repay
it we could see a decline in property.
it we could see a decline in property taxes. We could see a
decline in other revenues of the city.
And that would impact our ability.
And that would impact our ability to repay the debt. We
think that based on.
think that based on the analysis. We've done that.
Uh that have been relatively conservative.
comfortable with this approach. We feel that it does not
entail much risk, but all that entails some risk. Okay.
Well you answer my question if there's more of an exposed
risk.
risk, if something like that were to happen, so
risk, if something like that were to happen. So, um,
seeing that we sweep tips every single year to balance our
budget because we don't have enough programs or projects.
Uh,
uh allocated and we sweep those tips. Uh, what assurances
do we have that? Um,
you all cannot take some of this money and use it for other
things.
things, uh such as bring home, Chicago.
the bond ordinance does uh
layout that there are eligible uses and um
No.
No, neither of our 2 departments could use these funds for
any other.
any other purposes without Council amending.
any other purposes without Council amending that ordinance
essentially. Okay, uh, but if
essentially. Okay. Uh, but if I'm correct, you said earlier
that if the Alder
that if the aldermen voted to reallocate that that's
possible.
possible, correct?
if if this if
If if this if this body were to vote if this body approved
the ordinance as is.
the ordinance as is now and then in a year or 2 voted, we
actually want you to use it for something else.
council could vote that way as far as I understand so
Council could vote that way as far as I understand so we
could use it for other things if the body voted.
could use it for other things if the body voted, so thank
you. I appreciate that as well.
um
Have we had a conversation?
have we had a conversation with CPS? Because if they're
getting the line share of this money?
Um, are are they?
Um, are are they looking to do the same thing? Because
there's much capital.
there's much Capital infrastructure that they need. Are
they looking to possibly use their portion getting back to?
bond to do
rehab and construction on schools
Rehab and construction on schools. Uh, we had a
conversation with CPS where we showed them some
projections, um, which they had requested in order to think
about their budgeting process. Um, they did not indicate to
us. Um,
how
How they were thinking about using the funds. They just
were interested. They just wanted to know.
were interested. They just wanted to know so that it would
help them with their their uh upcoming.
help them with their their uh upcoming budget for their
fiscal 25 and for their projections going forward. Okay.
Well just for the record, I you know if this is such a
great tool I
great tool, I think it will be great for them as well to
bond some money.
bond some money to go out and do a lot of the rehab and
work that needs to go on the schools because they I think
they have somewhere to in the tune of 30.
to 40
To 40 billion dollars worth of work that needs to be done
on school.
on schools across the city.
Um
Let's see. What else do I have? Um answer that 1
Yeah.
All right. I think that's all I have.
All right. I think that's all I have Madam chairman. Thank
you. Thank you.
you. Thank you Alderman Bill Alderman Lee followed by
Alder.
Alderman Vasquez.
and then Alderman Moore
Thank you madam. Chair. Um
I'm gonna just stick with the CPS question so that we can
close.
close this up for me at least. Um, and thanks for the
presentation and the multiple.
presentation and the multiple, um briefs that you guys have
done. I know a lot of work has gone into this. Um,
as far as the Tif funding for
As far as the Tif funding for CPS goes and just based on
what Elder Lopez and alderman.
what Elder Lopez and Alderman Bill were talking about. Can
you provide through the chair how much Tif funding has gone
to CPS Capital Improvement?
to CPS Capital Improvements? Um,
I'd just like a point of reference like what does
actually look like 5 years now versus 5 years.
actually look like 5 years now versus 5 years later for
them. Um, and then I'll take from um,
from what?
From what you were saying CFO at Gorski that the CPS?
from what you were saying CFO at Gorski that the CPS is
already built this into their future projection.
already built this into their future projections.
I don't want to speak for CPS. They asked us for
information and we provided it to them. Okay? Yeah.
I mean this has not been passed so right they may take a
more.
more conservative approach. I I don't want to
Got it. You don't have to answer for them. Uh, I'll ask them
myself. Um because I I attended a couple of uh, while I
attended at least 1 CPS budget briefing and I didn't
necessarily put the 2 things together that they
either did
Either did or did not um add in the the sort of capital.
impact, um of the the loss of this Tif fund.
impact, um of the the loss of this Tif funding on whatever
the scale is going to be. It's not going to be overnight.
Um, but there there will be an impact with those tips that
our sun setting year by year. Yeah.
our sun setting year by year. Yeah, and what we talked
about was the increment that is going to go to them what we
did not talk about was, you know future projects.
capital projects that they might have gotten fund for from
a tiff and and 1 thing, um, that's important about that is
that while a number of tiffs are expiring a number?
still continue to be around absolutely and so yeah, I think
it's certainly continue to see projects from the big
project ultimately. Would you be willing to entertain a
slight?
slight modification because I want to add the park
district. Yes that was going to be my next 1 it was the
same for the park district. So if we can have that through
the chair, um the same information for what Park District
programs have been funded over.
programs have been funded over the course of The Last 5
Years, um by Tiff
Years, um by TIF district, please
and there's
And there's going to be lots of tips that are still active.
This is going you know.
This is going, you know, should this pass this is going to
be a step down sort of.
be a step down sort of process. Um, okay that that takes
care of my um, CPS line of questioning. Um,
we're in terms of uh expanding existing programs for a
for aabel rental housing. We're budgeting 230 to 250
million dollars with the
million with the project impact for to estimated to be 600
to 000 affordable rental homes that comes to a cost of 250
to 383.
Roughly so in finance committee.
Roughly so in finance committee, uh, or actually finance
committee and Council.
committee and Council last week. We uh, we just approved
something in Alder.
something in Alderman Lopez's Ward was an Adaptive reuse
and that was 65.
and that was 651000 per unit. What are we missing here?
terms of other funding just so that we can make sense of
that.
that? Yeah, absolutely. So, you know our multi family
financing afford.
financing affordable rental housing projects. Um, basically
always have a a fairly complex.
always have a a fairly complex Capital stack, right?
Generally, it'll start with low-income.
Generally it'll start with low-income housing tax credits
that cover between 30 and 70% um often Tiff where
available is another chunk. Um, but we will supplement that
with you know laundry list of
with you know, laundry list of you know, uh State donation
tax credits cdb.
tax credits, cdbg home dollars, uh sometimes ah,
tax credits, cdbg home dollars, uh, sometimes ahof dollars
in Luffy's. Um,
And a number of other sources. So what the the number you
were you were sharing is is is accurate and it reflects
that we're expecting to leverage these.
that we're expecting to leverage these dollars with other
sources so that this becomes a gap filler rather than
paying the entire cost.
paying the entire cost through the bond got it. And that's
really important. I think because I think there was a lot
of confusion out there about like what what the actual cost
is, you know, we look at something.
is, you know, we look at something like 250 versus 600 and
it does raise all these questions so I apprec.
it does raise all these questions. So I appreciate you
clarifying that um, so that is the city dollars
essentially, um compared to what all of the
resources are going to be that would potentially go into
those.
those projects. Okay. Um,
That's great there. Uh.
So CF.
so CFO Gorski or uh, Tim, um
about the model used for The Debt Service projection.
About the model used for The Debt Service projections. Why
did we pick Massachusetts as a basis?
They they just happen to have the model that we there's
nothing unique about.
nothing unique about it for Massachusetts. It was just a
sort of publicly.
sort of publicly available file that um,
that uh, Jack brothman who used to be in the cfo's office
said that it's like a good resource for us to use for this
Baseline assumption. Okay?
Baseline assumption. Okay. Um, are we open to taking a look
I mean
look? I mean, I think we've a couple of questions have been
raised here today just about you know, different
assumptions that we've made and you know, you agreed to
kind of pull some information on some others, but I'm I'm
wondering why we didn't I I think I know the question, but
you can answer it for me. Um, why didn't we build our own
model?
Just easier to use somebody else's model as a as a Baseline.
To start I guess.
Yeah, I mean certainly there's a lot of financial.
that building 1 from scratch is more.
that building 1 from scratch is more time and effort than
the benefit that you um,
Would get out of it. Um, so I think that's I think that was
the case again this modeling was started.
the case again. This modeling was started a part of my
joining but um, that's pretty typical um to use um
available.
available tools,
You know.
You know, we don't we've reviewed it and are very
comfortable.
comfortable with the results. Okay?
Fair enough. Um
All right. I don't want to ask any duplicative questions
share. Just bear with.
share. Just bear with me a second. Um, what do we think is
going to
gonna happen to our bond rating with this kind of Leverage?
the 1 consistent message we've gotten from the rating
agencies is that having recurring revenues tied?
agencies is that having recurring revenues tied to uh
recurring expenses is is the most important.
recurring expenses is is the most important thing that
they're looking at. Um, you know, the
they're looking at, um, you know the amount of
total liabilities that we
Total liabilities that we have, uh increasing costs. Um,
they time management, uh for all those things to recurring
revenues. So I'm I'm uh comfortable that I don't expect
this to impact our ratings, you know, we are um,
uh, consider
uh considering going uh, um through a private rating
process. Um, which can
process, um, which can be a little bit difficult to do on a
program the rating agencies.
program the rating agencies resist, uh that type of rating
they want to rate just a single deal. It's hard to get them
to rate.
to rate a program.
um
but
But um based upon the feedback we've had from them.
uh recently on our revenues on
Uh recently on our revenues on our budget and on the whole
picture they take we do not expect this.
picture they take we do not expect this to negatively
impact our ratings. That's great news. Thank you. Um,
as far as um
the community block grant program
The community block grant program. Um, that's 1 of the
programs that be funded um through uh through this Bond
deal. I I know that the language right now says South
Southwest and um West sides. I'm I'm wondering where I can.
find a map as to what qualifies a South Southwest um, and
West sides. Um, yeah, it's it's important to me because um
as uh, Alderman Lopez was uh and several of my other
colleagues have alluded to um, you know, when we talk
about, um equitable,
about, um equitable distribution,
of these
Of these, uh funding dollars. We talk a lot about black and
brown communities and obviously there are many other
communities. Um as well. So that's 1 of the things.
communities. Um, as well. So that's 1 of the things that I
you know, it's a concern of mine um is
you know, it's a concern of mine, um is to like would how
much of my award would actually qualify um for some of
these programs. Yeah. I'm I'm happy to at least for a CDG.
It's
it's sort of a multi-variant thing. We look at multiple
different GE.
different geographies, including the qia and then the South
and West Side talking to the mic a little bit more. I'm so
not using having these 2 microphones.
headset. I know.
headset. I know I we have multiple geographies that we use
I will provide you maps of
great. Yes, and then if for some reason
great. Yes. And then if for some reason our my my ward
parts of my word that I'm interested,
parts of my word that I'm interested in, you know,
including in this, um,
What would the process be to get that done?
um
I think it's just a matter of understanding.
I think it's just a matter of understanding the the where
you have Focus areas and where like how what what analysis
we use I mean, but talking about South and Southwest side.
It's just it's as simple as as the community areas and big
big picture regions for the qia. That's a little bit more
data driven. That's the NF program in geography.
data driven. That's the nof program geography and for that
it's just a matter of
understanding where
Understanding where your priority areas are and what what
the what the data is saying about?
the what the data is saying about the bigger picture
analysis. Sure. Yeah just as an example. I mean armor.
Square, I know 45% of the residents in armor.
Square, I know 45% of the residents in Armour Square are uh
are are qualified as
uh, are are qualified as low-income households. So, you
know, it's an area of great need.
know, it's an area of great need for sure. Um, and I'm just
wondering you know, where we stack up with everybody else
because I definitely am looking for the resources.
because I definitely am looking for the resources,
especially from affordable housing perspective.
especially from affordable housing perspective as well.
So I'll come back to you and happy to provide you the maps
great. Thank you. Um, and I'm wrapping up here madam.
I know that there's okay. We're good. Um,
about spending alloc
About spending allocations during the briefings, uh that
were provided to us.
were provided to us spending from this Bond could be used
on how um on new programs. Um, other than those that are
outlined in the bond.
outlined in the bond book. Now, are are there any future
programs that you're thinking of right now?
I don't believe that from do side. I don't believe there's
anything that isn't.
anything that isn't outlined in the bond book.
uh likewise for DPE I think into the
Uh likewise for DPE I think into the might yes, sorry
likewise for dpd at this at this point. What what's in the
bond book is a a substantial lift for us. I think.
Got it. Um.
Beautiful Jaworski. I I was struck by 1 of the slides that
uh was in your present.
uh was in your presentation about uh, the the bond, um
housing deal team. Um, and that there were no Asian firms
that were represented. Um, uh on the slide, uh, I know that
the well no firms with Asian, um attorney,
the well no firms with Asian, um attorneys that were
working on any of these deals. Um,
can you talk about what the process is for?
Can you talk about what the process is for reviewing, uh
attorneys for those?
attorneys for those projects?
Um, I would have to defer on that to law.
Um primarily this election is made by law. We certainly
give input on prior trans
Give input on prior transactions whether we felt the
service provided was.
uh, you know
Uh, you know good excellent deficient that kind of thing.
But uh Department of Law is making this elections on the
well, we'll uh, we'll we'll ask if we can get uh madam
chair through the chair, um some information from the legal
department about the process for which um firms
selected. Uh, obviously, I've got an interest in ensuring
that we have diverse representation across the board. Um,
and this is something that uh, I'd like to be able to get
some answers on obviously, you know,
some answers on obviously, you know looking to make sure
that there is an equitable distribution at some point, um
for what's happening, uh with the provision of
every aspect of this Bond deal
Um, and I'll ask the same thing. How much are we?
Um, and I'll ask the same thing. How much are we how much
are we paying? Um, the housing deal team and specific?
are we paying? Um, the housing deal team and specifically,
um around legal counsel. Do we know?
um around legal counsel. Do we know what the spend is going
to be on both sides of this? And is that included?
to be on both sides of this and is that included in the
cost of the bond?
uh
Uh, yes the cost of issuance do get included in the bond.
Um, I don't have an estimate here.
um
you know it it's going to be
several hundred thousand dollars
Several hundred thousand dollars, uh, but I don't have an
estimated in front of me through.
estimated in front of me through the chair at some point.
If you can give us like a better estimate, that'd be great.
Um,
uh
Alderman lie, um, oh sorry, Audrey.
Alderman lie, um, oh sorry, Audrey Wade from my staff.
Who's the attorney for the
the attorney for the uh, committee will follow up with?
Okay. Okay great.
Okay? Okay, great. Thank you. Um,
about the the oversight for the um
for
For the bond issuances. Um
for the bond issuances, um in in the ordinance itself, it
says that uh, the the sale of the bonds that can be done.
Um without uh, Council approval. Um, I think there you
know, I think Alderman the alderman Lopez and and others
have expressed some uh,
Some concerns for that and I'll Echo that as well. I would
like to um from a reporting.
like to um from a reporting perspective, um include the the
bond issuance.
bond issuances too as we're going along um, because I've
got questions about how um how the funds are.
got questions about how um how the funds are sort of
metered out. I know Tim you said earlier that you're not
and and uh CFO dorsky. You said the same thing?
and and uh CFO dorsky. You said the same thing, um that
we're we're not going to as a city issue bonds.
we're we're not going to as a city issue bonds until we
know we need the funding for it.
but I think you've heard, you know all around here that you
know, the the council is very interested in making sure
that we're sort of keeping up with what what the what the
demand is for.
demand is for the dollars. Um, and when the when the bonds
are issued, um, because obviously it's a it's a sizable
amount of debt that we're we're going to be taking on and I
agree with you. Um, CFO warski. This is all about you know,
know, infusing and investing funds into improving the
and creating more opportunity. We want to make sure that
we're doing this at a really responsible way. Um, I think
all of us sort of feel the weight of of a billion dollars
sitting on our shoulders, right?
sitting on our shoulders right now,
um
I and I
And I and then just offer that to whatever extent, um, you
know a lot of this.
know, a lot of this is is the request we hear about the
individual project.
individual projects, which do and dpd are going to be
responding to but to the extent that um,
responding to but to the extent that um that uh my office
and myself can participate and provide any updates about
how we are.
planning the sales when we're doing the sales whether
using an interim financing vehicle any of those kind of
things also that are more on.
things also that are more on the pure financial side. We
very much happy to participate and and and keep you
updated.
as well. Perfect. Thank you. I'm done Madam chair. Thank
you guys.
you guys for bearing with me.
Thank you. Alderman.
Thank you Alderman Lee Alderman Vasquez followed by
Alderman Moore followed.
Alderman Moore followed by Alderman Ramirez.
Thank you very much.
Thank you very much Madam chair. Um, I really appreciate
the comments from our colle.
the comments from our colleagues. Um, uh as as 1 of the
progressives in Council and even if I was in a pro,
I think we all have a agreement that we want to invest in
the neighbor.
neighborhoods. We want to make sure we're creating the
affordable housing that we need. Um, I do
although from a different perspective here with some of our
colleagues.
colleagues are saying as it relates to the election that
just happened. Um, I accept I don't view it as
defeat more than a challenge I think.
defeat more than a challenge. I think there is uh something
to be said of our constituents wanting to know about the
responsibility of those.
responsibility of those that they Empower to be in this
office. And so that does require a level of
transparency a level of planning a level of detail.
specificity and accountability that we need to deliver on.
so people have that confidence in government to continue
doing these large projects right? Make no small plans.
what we're all about. But if we don't show the detail on
those plans, we don't necessarily get a second chance at
it. And so I think a lot of my questions are related to
that. I I appreciate
Um a lot that was on the slide deck.
Um a lot that was on the slide deck as related to policy
related to oversight.
related to oversight and detail how much of that is
codified.
Um, so what's Cod?
Um, so what's codified certainly includes in the in the in
the Orden?
the ordinance that that that is in front of this committee
right now it is cod.
right now, it just codified certainly includes the
limitation on use and the departmental use as well that
only these 2 departments. Um, that would need an active
Council to to change.
Council to to change I think um,
my colleague Tim Jefferies has said earlier that um, we are
looking at an a substitute.
looking at an a substitute to codify the
quarterly, uh, if that's what the body desires, um
reporting and hearing as well as the adopt.
reporting and hearing as well as the adoption or the
adoption of the um, the Tif portal to essentially become an
incentive portal.
incentive portal that includes, um project details on all
of these project.
of these projects, uh similar to that of required.
Tif Sunshine act. Yeah, I I would um,
Tif Sunshine act. Yeah. I I would um on a number of the
those things. Uh 1 I appreciate I think um,
As it relates to the portal for example.
As it relates to the portal for example, um, we've seen
instances where we've had to work on 31.
instances where we've had to work on 311 and taken years to
even get that going to what 1 would feel like a
satisfactory for the public. So I think if there's a
component of having some of the uh, Council or some
colleagues together to make sure there's a momentum behind
getting it done, right? Uh, I think that would be important
so people could see it improve.
so people could see it improve over time. Um, I think I'm
more concerned about
not not
Not not the amount of funds not that the department is kind
of um.
of um responsible for funds but the decisions on who and
what projects are supported because I think you know moving
away from tips makes sense because it kind of tends to
consolidate that only in certain areas. Um, obviously the
city has historically had concerns about automatic
prerogative, but I'd say that 1 of the things that's worse
than other Manning prerogatives mayor.
than other Manning prerogatives mayoral prerogative.
That if an Essence you're coming in.
That if an Essence you're coming in a budget season and
people are worried about whose projects are going to get.
supported how that's being decided.
supported how that's being decided that titifuck and that
kind of specificity.
kind of specificity is needed. So do you all can you do the
chair submit any rubric?
chair submit any rubrics? You currently use to make
decisions on where these go?
decisions on where these go and and who because we all have
we all agree in equ?
we all agree in equity. I don't know that we all have the
same definition of it.
And so I think that specific.
um
if you could send that.
If you could send that, that'd be great.
um
The other thing I'm concerned about.
the other thing I'm concerned about and I I apologize for
bouncing around is
I'll I'll be very Mindful and I'm super mindful because I
don't want to say that this is uh comparable to but there's
Dynamics at play for when the city voted on a parking meter
deal.
because
Because again not the same thing as far as the projects,
but what?
but what the council does when funds come into the general
fund when?
fund when they say hey, we're going to invest in those
things. It's great. We're having more funds.
things. It's great. We're having more funds coming in we
can take care of some of our VOC.
can take care of some of our obligations and then we'll
ultimately happens is the council acts like it's Christmas
starts spending on all different.
and ultimately you're not covering debts. We're not being
responsible in the long term. I've got concerns about that.
Um, I know I talked to um the CFO about this prior. Um, I
would like to do the chair policy recommendations that this
Council
council could actually pass this legislation to lock in
some of that pension debt payment to have more comfort.
the funds that are coming back.
um
I guess.
So that's through the chair as well. Uh
There are members of this Council.
There are members of this Council as well as our mayor who
kind of were counting on B.
kind of were counting on bch passing. It did not does that
affect.
affect anything as far as the way the projects and the
funds are allocated.
funds are allocated for those projects were there
anticipation of other funds that were going to be here?
That weren't?
Yeah.
Yeah, I mean the the short answer is um, you know, of
course it.
course it affects in general. Um do
course it affects in general, um dose, uh,
plans, um, you know that
Plans, um, you know, that would have been a significant
amount of fun.
amount of funding. I think what's important is that
brings Chicago home would have been primarily a source of
service and operations dollars, which
service and operations dollars which uh in comparison to
the bonds which are capital dollar.
the bonds which are capital dollars. Right? So, um,
essentially the, you know, the bonds will allow us to build
the building or to rehab the building. Um, what bch would
have come to into would be to pay for the wraparound Social
Services.
services and that sort of thing. So essentially, you know,
we're going to have to and along with our partners at the
FSS and can you that Continuum of Care and others, you
know, we're going to have to get more creative.
know, we're going to have to get more creative about about
the worst those looking for those sources sure.
the worst those looking for those sources. Sure. Okay. I
appreciate that. I think um, I agree with our colleagues.
think it should be more than bi-annual. I think quarterly
um a hearing would make sense, but I also think monthly
you don't have to come or anything by email to some kind of
communic.
communication breakdown would be you know,
that's feasible would be good for someone with
track of what's happening because I think we have
I have concerns about
developers what the anticipated return of that investment is
do we meet that anticipated return on investment per
project. I think those are fair just to share with
because not only are you able to track progress but
able to share and like the successes in a way that I think
we need to to show why this is a better model than from
draining. Uh,
draining, uh or from having the tiffs. Um, so I I think
that would be helpful for me. Um, what funds from any
this go to site acquisition. So let's say in some of the
north side,
north side Wards, uh, we don't have vacant Lots we don't
have the opportunities that other Wards, uh other parts of
town might have uh for us if we were able to acquire a site
and say, you know, what will RFP it out for somebody who
does aggressive affordability. It might be a cheaper way to
do it than to do. What developers are always.
do it than to do. What developers to always keep touting
about 7000000000 per unit. Uh, maybe that's a way to do it
on our side of town. That might be helpful.
Uh, yes the
Uh, yes, the a real estate acquisition is a is an eligible
use, okay?
use. Okay, awesome. Uh, and I've got uh, can I uh, just 1,
uh,
And with consideration perhaps for eminent domain.
I'm asking is that something?
I'm asking is that something you'd be willing to look at?
Uh, I
do you have any legal?
Can you repeat the full?
Can you repeat the full question?
Um
Alderman Vasquez was asking about using some of these
dollars.
dollars for uh,
site acquisition and sometimes um when we're doing projects
and wards where we need to see the investment we might have
a parcel.
a parcel that
Could be added to that.
Could be added to that but it might require an eminent
domain. It's worth exploring. I'll say they'll alter.
given that we have nearly 10,000 vacant lots and
working really closely with the Cook County Land Bank to
acquire.
acquire lots and really strategic ways. I would want to
obviously explore exhausting.
obviously explore exhausting opportunities to put
contiguous Lots together to do.
contiguous Lots together to do larger scalable
developments. Um, and you know where eminent domain is
appropriate when it's appropriate is something that we
would explore and consider but I think there are other
options for us to acquire privy.
options for us to acquire privately owned Parcels of land.
So other than eminent domain on our end. Thank you so much
for that question because I I do appreciate that. That's a
strategy. However in the 40th world. You got zero vacant
Lots so you'd be
Lots. So you'd be exhausted by the time you get over here
to help us out.
so I would definitely include some component of
acquisition and eminent domain as we've tried to do that in
some.
some of the properties in 40 and
It's not a process that.
it's not a process that is often done that maybe getting us
some comp.
some component because I think we want to get to the same
goal the Dynamics.
goal. The Dynamics are different based on the different
rewards and parts of town that getting.
rewards and parts of town that getting the sum of that
input from us. I think it would help inform some of that.
Um, and then uh, lastly and this is 1 I share a colleague
share with me that I agree with so in the
share with me that I agree with. So in the 40th Ward, for
example, we did a 16 million dollar Street.
example, we did a 16 million dollar streetscape on Lincoln
Avenue that would
Avenue, that would only have happened because a tip was
there and we have no understanding of where C dot dollars
and capital dollars go.
and capital dollars go when we're trying to do Street Caves
or improvements. So even that process isn't as you know
equ.
Equitable or or fair or understanding we don't understand
it as much to go.
it as much to go who decides what projects get done. Uh, in
fact my colleague who forwarded this question to
like do we get an increase in menu for
some of our stuff when?
I think the department.
uh commissioner Castaneda you had
Uh commissioner Castaneda you had something to add to this.
Um, I was gonna actually
um, I was gonna actually add something on the last
question, um, which is again,
question, um, which is again very much emphasizing that
site acquisition is always a possib.
site acquisition is always a possibility 1 of the things
that the department has also done is that we have applied
for a grant through HUD that would allow us to explore some
of these other things and in other neighborhoods that are
not like the 40th Ward that have a lack of vacant land. Um,
we also have our neighborhood preservation strategy which
includes our trouble building initiative and other
initiatives by which we uh, look at properties and try to
figure out the best and highest use for the neighborhood
and the community
um, and yeah, and maybe the question I have is a c dot
question that should go to them through the chair, but I
think the Dynamics are similar as far as you got a program
you.
you have a whole bunch of bonded money. We don't know who
gets what how they get it how to determine and who ends up
not necessarily feeling Equitable in that equation.
that it does affect the C dot component so some follow-up
there and I think potentially looking at some amendments
between subject matter and like voting on.
between subject matter and like voting on the thing based
on what we're getting on the feedback here makes sense.
Um, I'll say lastly. Um, I get the point about us losing
population. Um, I will take it a little further back to my
colleague.
colleague, uh, otterman Lopez. Yeah. It's definitely Public
Safety. However, if folks can't find a place to live if
they're feeling desperation if the communities they live in
aren't feeling invested in it's going to lead to
safety concerns. So this is ultimately a larger cycle.
safety concerns. So this is ultimately a larger cycle but
to agree, uh with him that it's not just about the fact
that there's investment or not. Our zoning code does not do
much to compel people to build more.
much to compel people to build more of the density that
actually would have people live across the city when you
still have single family only zoning.
still have single family only zoning that then if he's
doing 2 to 4 Flats when you have people who are on a major
arterial streets that don't want to go over 3.
arterial streets that don't want to go over 3 floors,
right? Our zoning code doesn't do a lot to incentivize.
right? Our zoning code doesn't do a lot to incentivize the
type of build that we want to also create the density and
have more of the population. So I think similarly having
conversations about what ziti City Planning
conversations about what ziti city planning zoning needs to
look like because there needs to be a balance between
obviously Community having their response and
you but actually being able to build something because I
don't think our neighbors understand that if you don't
build density.
build density your property value still goes up your
property taxes still go.
property taxes still go up and there's less people to share
that Levy with so you're not doing yourselves any favors,
but we don't do a good job as Government to make that case
and I think that's largely what I feel from.
and I think that's largely what I feel from the public and
our constituents that are telling us they
the goals. They agree that we have these larger things we
should do together. They don't necessarily trust our
planning and our detail and I appreciate that. We have a
mayor
And would appreciate the fact that the public wants.
show our homework. Um, thank you very much Madam chair.
Thank you.
Thank you Alderman Vasquez. Alderman.
Thank you chairman. Uh, first of all, I want to say
thank you to um the team here for providing us.
thank you to um the team here for providing us, um with
information decks, um early on and gave me time to um, go
through those and still going through them.
through those and still going through them and reading and
with this.
with this hearing um to our chairman. Thank you so much for
this because it adds to that that I can look. Um,
this because it adds to that that I can look um deeper into
um some things so I I appreciate um,
Um, um, what what what?
um, um, what what what do what we're doing here today, uh,
I want to ask a a quick question, uh for 1 of my
colleagues, um, and part of the answer I
colleagues, um and part of the answer I know but um, I
think it's factual that if we were we're currently in a
district that we're not prohibited from um, assessing the
bond money, correct.
That's correct. And is that is that codified?
Oh, uh.
No.
No, but I don't know that there's nothing that.
No, it's not codified. Okay, but I all right, so I just
No, it's not codified. Okay, but I all right. So I just
that 1 a question. I wanted to get answered by 1 of them.
Go ahead please in no way restricts.
where the funds can be used so it doesn't say they
have to be used in areas that are not Tiff.
have to be used in areas that are not Tiff or anything like
that. It's 1 of the things that we find.
that. It's 1 of the things that we find of value to this
approach is the flexibility to address the need where it's
at.
Okay.
Okay, um for me, let me just start.
Okay, um for me, let me just start out before I get to my
uh couple of questions that I have.
and
I'll State this I know.
I'll State this I know we'll say it that there's mistrust
and um with previous administrations, but it's just
with previous administrations. I
with previous administrations I uh for me, uh in a previous
administration, um when projects were committed,
administration, um, when projects were committed and and I
didn't vote for something it got pulled back.
didn't vote for something it got pulled back and I had to
go up on that.
go up on that day.
as and take the gavl and not let
As and take the gavl and not let the mayor walk in until he
saw me.
saw me so I never want to have to do that again.
Okay.
okay, so there is there is this thing of um
Okay, so there is there is this thing of um, um trust and
it wasn't this mayor but it was a previous mayor.
it wasn't this mayor but it was a previous mayor but in
this situation with Pagan Park, which I've been talking
about, um since um, this Administration has walked in
things that I have done and things that were said that
would be considered.
would be considered and there's there's been
um
crickets on that so
Crickets on that so there's there is some distrust. Uh, um,
there and so that's why people asking about things being
Cod.
codified. So with that I I'll get into 69th Street in
Ashland. There's probably no everybody in this. Um,
Ashland. There's probably no everybody in this. Um body and
everybody in the mayor's Administration.
everybody in the mayor's Administration know how important
69th Street between Ashlan and Damen and it's to me and 70%
of all those vacant Lots, I guess who
of all those vacant Lots. I guess who city-owned vacant
Lots
city-owned vacant lots and when we talk about
Englewood people say Englewood as a whole West Englewood is
1 of the 77 neighborhoods. And so when people thinking
they're doing something in Englewood, they thinking they
got all of Inglewood. No West Englewood is a a community of
its own.
its own and for 23 years 2.
That was the last know now we're on 24 years. There's been
no investment in West Englewood the last thing
no investment in West Englewood. The last thing that was
done that was under Terry Peterson, um when they
done that was under Terry Peterson. Um when they owe Bush
yarn y'all bus
yarn y'all Bus Barn was torn down and um a um, you know
food for last was put up there and another mini mall. That
is the last time there hasn't been any investment and that
and and so when we talk about the most challenging areas
and I recognize that uh, people say that this is what this
type of bond is for.
type of bond is for when we talk about high unemployment.
hi crime, and
Hi crime and um disinvestment. That's all West.
Hi crime and um disinvestment. That's all West Englewood and
so for me just like my
And so for me just like my colleague. Um, and from the 21st
Ward when we dealt with this.
migrant crisis
Migrant crisis and um, he's trying he was trying to do
that.
development on I think 111th in Hollister.
development on I think 111th in hosted and the
administration put that in writ.
administration put that in writing.
that it would get developed after the
That it would get developed after the um migrants moved
out.
That's what I need.
That's what I need in writing.
to assure that citizen ninth
to assure that City Ninth Street between Ashlan and Damon
gets developed and and I'll be more than happy.
gets developed and and I'll be more than happy um to
support um, this this ordinance if that's the case, so I
just want to put that on record. Um, the other thing is
um, my first question is
leveraging when we doing development and and and we
leveraging when we doing development and and we even when
we were doing the um,
we were doing the um mural races and all the campaign.
we were doing the um mural races and all the campaigning.
How how we're leveraging what I'm not hearing?
How how we're leveraging what I'm not hearing I'm hearing
our money how we how are we going?
our money how we how are we going to leverage? Um,
private dollars with this
and what's the and what's the incentive to do that?
I mean, I think the private dollars will flow through
individual project levels. Uh, please speak up you speak a
little low some I'm sorry private dollars whether it be
Equity or loans or other sources.
Equity or loans or other sources, they would flow through
um this project.
Um, this project through individual deals. None of our
projects.
projects individual what their individual projects are
deals that we do so
deals that we do. So the specific project will have a
capital stack that will have some City funds. None of our
deals are 100% City funds there.
deals are 100% City funds. There must be other dollars
brought to the table and so most
brought to the table. And so most typically we look for
debt. Um, that's the the cheapest best way for many of
these projects to get funds. Um, and that's and and some of
my most challenging neighborhoods we tend and probably
should.
should uh, put a a a a a lot in there, but is there a
percentage?
percentage what what's the number in terms of what we're
putting in?
putting in and what a what a what what a private.
putting in and what a what a what what a private, you know
private money coming in. Is there like a 7
because on on some deals and how and I've seen some where
the city?
Basically carried the project.
um, it does
Um, it does vary in some some and it depends on the
neighborhood. Um, if we're talking about a place like 69th
in Ashland where there is so much.
in Ashland where there is so much vacancy, right? You need
more money. That's just a full stop. Absolutely. Um, and so
those deals will have
um, we have deals that the maximum at least through our dpd
programs we would provide is 75% So there's some deals that
go up that high right that's
go up that high right? That's atypical. I think our our
average is somewhere in the 40s. Um, so it's it it ranges.
But um, we we look at the project need um, and the
neighborhood need and the benefits it will ignore.
All right.
Thank you for that answer and my last question.
Thank you for that answer and my last question and and and
I misunderstood something.
or or or I miss
Or or or I missed something in Reading had the security
behind.
behind getting this conversation. So 1 of my colleagues
brought up that question.
brought up that question then that you answered it and
saying the maximum.
saying the maximum and unless I misunderstood was going to
be the maximum.
be the maximum amount was going to be between both.
be the maximum amount was going to be between both this Geo
Bond and the securitization Bond, please.
Did I miss something or?
Did I miss something or explain that to me so I can
understand that point?
understand that point sure the maximum amount of bonds that
are being offered.
that are being offered the maximum amount of bonds that are
being authorized is 1.2.
being authorized is 1.25 billion.
The ordinance gives us the flexibility.
The ordinance gives us the flexibility to determine whether
those would be issued.
those would be issued as Geo bonds or sales tax.
securitization Corporation bonds.
So the whole 1.25 is not going toward.
So the whole 1.25 is not going towards.
the
development then in terms of the economic develop.
development then in terms of the economic development what
we're talking about here. Then all of the proceeds will go
to.
the projects that
The projects that are outlined in the ordinance. I thought
the sales tax executed.
the sales tax executed Bonds were those dollars are
allocated somewhere.
allocated somewhere else under the previous administration.
I may be lost.
I may be lost here today.
I may be lost here today bonds.
Uh, Mr. Warski, can you explain?
Uh, Mr. Warski, can you explain what the sales tax
securitization corpore?
securitization Corporation is and then go into the
relationship to this particular ordinance. Yes, absolutely.
So the sales tax securities.
So the sales tax security reservation Corporation was
created as a way for the city to be able to borrow.
created as a way for the city to be able to borrow money.
less expensively than through our general obligation bonds
what the city did was created a corporation and we
essentially sold all of our sales taxes to that
Corporation. Absolutely. So all the sales.
Corporation. Absolutely. So all the sales taxes that come
in that are City sales taxes. They go into the stsc
corporation.
corporation Corporation sells bonds.
at the direction of
At the direction of ordinances that are passed by this
Council.
And each ordinance will Speck.
And each ordinance will specify what those proceeds can be
used for.
used for most of them have been used to refund.
used for. Most of them have been used to refund other
General obligation bonds. So if we have an existing General
obligation bond that was out.
obligation bond that was outstanding, it had a 5 and a half
percent.
coupon on it, but we
Coupon on it, but we could borrow through the stsc at 3.
a half percent.
Then the St.
Then the stsc sold refunding bonds and that money went.
Then the stsc sold refunding bonds and that money went and
paid off that General obligation Bond.
So we moved a go to a sales.
So we moved a go to a sales tax Bond.
at a lower cost
At a lower cost saved saved the city money.
in our budget
In our budget, but it can also be used for other.
In our budget, but it can also be used for other projects.
So for instance the Chicago recovery.
So for instance the Chicago recovery plan, there were stsc
B.
bonds sold that were for CRP projects.
And in this instance what we're saying is
we we're going to sell most of these as general.
we we're going to sell most of these as general obligation
bonds that that's for sure.
but
If there's if it's economical.
if there's if it's economical and highly beneficial to use
sdsc.
For instance in the example. I talked about earlier is for
taxable.
taxable bonds. Some of these bonds will be taxable. They
will not all.
will not all be tax exempt.
And those taxable Bond.
And those taxable bonds, it's much less expensive if we use
STS.
stsc.
And so we may do it through there.
When the sales taxes go into the the corporation.
When the sales taxes go into the the corporation they pay
the debt.
All the debts services do that.
All the debts services do that year and then they flow
right back into the corporate fund.
just like our property taxes go in our corporate fund I get
and I I get it so so
and I I get it. So so it's it's we look at it from a sort
of a budgeting perspective as
they're each equal ways to borrow.
they're each equal ways to borrow and we try to balance.
What's the most cost effective way to use stsc?
it's it's a valuable asset to us and that we can borrow for
Less.
Less through it. Yeah, so chairman, please.
Help help me out here because I may maybe I'm mix mixing.
something up because I think it was under the Emanual
administr.
Administration and I'm and I'm thinking it was um,
related to um,
um infrastructure
and maybe it was something else that we we we
And maybe it was something else that we we we it was
pensions that the sales security.
pensions that the sales security team was.
written ordinance that it had to go to
that particular item. Was it pensions or somebody help me?
I'm just because that's why I'm that's why I'm getting lost
that.
I believe it was created under.
I believe it was created under the manual Administration
that Corporation.
Alderman Lopez you have
as a point of clarification, I think it was it was under
the Emanuel Administration and I think it was floated as an
idea to use the secur.
idea to use the securitization to help pay offset, uh pent
pension obligations, but I don't think we went for that but
we created the corporation and still. Um, let let us look
into yeah.
into this kind of fact that we had you that
that so it could be wrong so it's not to uh spread.
that so it could be wrong. So it's not to uh spread this
misinformation right? I would like to take an opportunity
to go back and see what the history of that is and we'll
report through the chair. All right. Thank you. Thank you
chairman. That's all that's all I had appreciate.
chairman. That's all that's all I had. Appreciate it.
Is it for you? Okay. Thank you Alderman Moore alderman.
Ramirez.
Okay, okay. Um, good afternoon everyone. Um, I wanted to
talk a bit about like the equity part and I'm just curious
because a lot of our Maps show the disinvestment.
because a lot of our Maps show the disinvestment and how we
need to create Equity whether it's related.
need to create Equity whether it's related to Youth
Services Health Services.
Services health services. Are there some sort of like
metrics that we're looking that you know, our goal is that
within a 2-mile radius everyone will have access to XY.
within a 2-mile radius everyone will have access to XYZ and
that it feels
and the reason why I bring this up is because
And the reason why I bring this up is because I'm wondering
whether the equity is.
whether the equity is made by the alderman or are we going
to have conversations like regionally?
to have conversations like regionally and wondering whether
you know, there can be joint.
you know, there can be joint efforts like all the women
lie, and I I have a growing Asian population a lot of folks
in the 11th.
folks in the 11th ward are moving to the 12th Ward and so
how are we kind of building Coalition and meeting the
needs?
that I think are being seen in a region over.
that I think are being seen in a region overall that makes
sense for all of us. And so I know a lot of times we want
things I want things in the 12, w physically
things I want things in the 12 w physically, but how do we
say older women lie?
say older women lie, you know this particular investment.
a mile radius and that was kind of our goal. I'm
if those conversations are had or how we can build
commissioner boat
Commissioner about right? I'm in for dpd, you know we have
our regional planners that work closely within the respect.
respective regions. So in terms of ensuring that we're not,
you know duplicating development efforts.
you know duplicating development efforts, we do work
closely and so they're not Ward spec spec.
closely and so they're not Ward specific. They're more
region specific and so there is that coord.
region specific. And so there is that coordination where
they will know what's happening in 11.
they will know what's happening in 11 and 12 to ensure that
we're not doubling in.
we're not doubling in investment. That would be
duplicative.
I I guess I just asked as well as like I I hate to see it
always feel like so segregated or like us like working
particular.
particularly and within our boundaries and I think it makes
sense like having these conversations early on about like
maybe what's our goal within you know, let's say 111214 and
that's just an example.
that's just an example because we're growing together and
we're trying to like our vision long-term and how we're
using the money and set of a particular Alderman. Just
thinking about the now and for their for their own.
thinking about the now and for their for their own Ward
because I think equity and accessibility should be Regional
not just ward-based. So if I can chime in here, I think 1
of the things that um, we're looking at with the bonds. Is
that without the geographic restrictions. I'm sorry
commissioner. Could you just say your name again for the
court reporter? Yes, absolutely.
court reporter? Yes. Absolutely for the record. I am Lisa
the commissioner of the Department of Housing. Um, I was
saying that I think that part of what excites us about the
bonds, um as opposed to the Tif program,
Program is that it is not geographically.
program is that it is not geographically restricted and what
it allows is for us to be able to look at projects that we
wouldn't always.
wouldn't always be able to put on the table and again this
whole idea of regionality and looking at projects.
whole idea of regionality and looking at projects, um for
their Merit and for all of the ways in which it can impact
the bonds would open up that ability.
the bonds would open up that ability because we can say
okay, you're not exactly in a tiff. It's not exactly in a
single word. But there's this Collective effort that we're
on with dpd of this thing that we're trying to do that
would not so neatly.
would not so neatly fit into the prior or the current
categories.
categories, but that could be expanded. It can be used
through this Bond.
and then
um, I'll I'll go.
um, I'll I'll go to my next question about the tiffs and I
don't know if this was asked but um if there is a tiff that
already exists, can you get from both the Tif and then?
our bond program and what does that look like?
Tim Jeffries dpd, theoretically. Yes, I think um in
It it can happen we've had deals that we've discussed.
it it can happen we've had deals that we've discussed doing
it for but I think in general we've
we've tried to push towards a single Source, but that's
mostly for the benefit of the applicant to make sure that
we don't have any.
offsetting requirements or things that don't overlap that,
you know perfectly so, uh, but if it was a deal that was a
project that's worth doing and that was the factors like,
all right, we're going to do it. So yes, it's an option.
and then
And then I've only been here a short time but you know, I
have seen projects that have been.
have seen projects that have been delayed a long time and
then they come back to council and then they have to spend
x amount more.
x amount more because you know, it's so much more
expensive. I guess like how do we work with that time?
as well and just our spending overall?
as well and just our spending overall because you're not
looking at like a particular budget, you know in a
district. Yeah, absolutely. Um for the record at least do
I do oh commissioner. Um, so yes, and I think part of what
we want is to be able to have more available more tools.
available to use for our projects so that the projects can
get to closing faster. We are very aware commissioner, Bol.
Right and I have very aware that time is money and
everything.
everything that is delayed and everything that has to come
back to council.
back to council and has to be um looked at again and again,
it costs money and so having this extra tool.
it costs money and so having this extra tool in our tool
box that we can say. Okay, there's this other
that we can layer on so this can get
the shovel in the ground.
Okay, and that's all from me. Thank you.
Alderman manah, hennur
Alderman Mana hoppenworth you just came back here at the
tail end so I imagine you came back.
tail end. So I imagine you came back because you had
questions or you do.
Thank you.
Thank you chair. Um.
I had to step out.
I had to step out um because I um had a call with the um
States attorney's.
States attorney's office about the recent murder in.
States attorney's office about the recent murder in in our
Ward. Um,
a young person, um was murdered because of
uh domestic violence and
so, but I wanted to
So, but I wanted to come back and listen to the rest of
this conversation. So.
um
Okay, I I did want to say that. Um, I'm really grateful to
the communities.
the communities that came out today.
Um
um, give testimony why they believe um, this is an
important issue for them and I want to thank those in the
Box
and also you all um for answering questions about
And also you all um for answering questions about this
program.
I I'm not on this committee. I support what we're doing.
I I'm not on this committee. I support what we're doing here
because we we have to do something different.
I mean right now.
I mean right now we're trying to figure out where to place
this family and they want to stay in the community.
this family and they want to stay in the community, but
it's unaffordable.
Right. I appreciate all of the questions.
Right. I appreciate all of the questions that my colleagues
put forward to you.
put forward to you today. I believe that transparency is
important. Thank you for offering to put it up.
important. Thank you for offering to put it up on a
website. I think that's great. I hope it is useful.
You know, my my community is not unlike everybody.
You know, my my community is not unlike everybody else is
where we are. Um
where we are, um suffering our small businesses, um need
help. Um, we have
so much diversity in the ward and
those that are here. Maybe they are undocumented they need.
to know that we
are
forging a path where they can stay, you know, I have a
temporary shelter too. We don't.
temporary shelter too. We don't need people on the streets.
thank you all I know you're kind of Shook Up by the
Thank you all I know you're kind of Shook Up by the call you
had to take it's okay. I I apprec.
had to take it's okay. I I appreciate it. I just wanted to
to say thank you and also.
to to say thank you and also.
We we really do need to move forward.
We we really do need to move forward with this program. Um,
what we have is not equitable.
what we have is not Equitable and um,
whatever we need to do to codify.
Uh, what we're doing is is uh, really what what is
important today?
important today to talk about? Um,
because I believe that policies are are great. But if
anything that we can hard baked into our systems to
to to um, continue the work, you know, even when we're not
here it's going to be the most important thing for us to
do.
So, thank you cheer. Thank.
So, thank you cheer. Thank you. Alderman.
um in closing I just
Um in closing, I just want to uh, thank everyone for your
willingness.
willingness to attend the subject matter hearing on a
Friday afternoon.
Friday afternoon and and uh having uh, substantive uh
questions,
questions and uh, really having a conversation about this
proposed ordinance there being no further business.
proposed ordinance there being no further business before
the committee. Can I get a motion to
adjourn
so moved by Al
So moved by Alderman Lee to adjourn all those in favor
signify.
signify by saying I oppose and the opinion there.
The eyes have it. Have a good weekend.
The eyes have it. Have a good weekend Alderman Harris.
finance committee is
have a good weekend everyone. Have a good weekend
everybody.