Good morning. Good morning.
Everyone we should be starting shortly. We're waiting for
Workforce to end. Um, and it looks like they'll be ending
in a few.
in a few minutes.
Good morning, everyone.
the subject matter
The subject matter hearing on the committee on finance is
hereby call.
hereby called to order.
Uh, this is the subject matter.
Uh, this is the subject matter hearing to discuss the
issuance of General oblig.
issuance of General obligation. Andor sales tax security.
securitization Corporation bonds for housing and economic
development programs.
this
This is the committee on finances second sub.
This is the committee on finances second subject matter
hearing on this bond proposal.
hearing on this bond proposal and again, no votes will be
taken on this matter.
taken on this matter today. We'll start with the Roll Call
to establish quorum.
Vice chair Conway
Al
alderman laspada
alderman
Alderman Hopkins Alderman Hall
Alderman Mitchell
Alderman Harris
Alderman Beal
Alderman Lee
alderman
Alderman Ramirez
Alderman Quinn Alderman Lopez
Alderman Moore
Alderman Curtis Alderman OSHA
Alderman Taylor
Alderman Rodriguez
Alderman CEO Lopez
Alderman brunette
alderman
Alderman Alderman Talia Ferrell
Alderman Cardona
alderman waguespack
alderman
Alderman Rodriguez Sanchez
Alderman V
Alderman vagus
Alderman mitts
Alderman Spa
alderman
Alderman Vasquez
Alderman Reilly
Alderman Knudsen
Alderman Martin
Alderman silver
Alderman Silverstein
Alderman Mitchell I see you here.
chairman dowels here
Did I miss anyone?
We have a quorum we have 17.
um Alderman Mosley Alderman Ramirez
Um Alderman Mosley Alderman Ramirez, Rosa and Alderman
Scott have requested.
Scott have requested remote participation under the
provision of rule. 55 59. Can I get a motion to allow these
Alderman to attend?
Alderman to attend today's meeting Alderman Mosley Ramirez?
Rosa and Scott. So moved by Alderman Martin.
Rosa and Scott. So moved by Alderman Martin all those in
favor signify by saying I
post and the opinion of the chairs the eyes have it and the
motion carries. I want to confirm that Alderman Mosley
ramire.
Ramirez Rosen Scott or president and have joined today's
meeting.
premieres Rosa here
Alderman Scott is here.
Good morning. Holy Pres.
Good morning. Holy present. All right good.
I see you.
I see you Alderman spaz and Alderman Quinn.
and Alderman Rodriguez we
And Alderman Rodriguez, we and Alderman Ervin. We will
count you towards.
you towards Quorum and vagus.
We got a full house today.
We got a full house today almost.
Alderman Nan I see you. Um, we have you counted, uh,
Alderman Nan I see you. Um, we have you counted uh to as
the non-member.
And Alderman manah hoppenworth. Good morning.
All right at this time we will begin.
All right at this time we will begin public comment, uh the
public comment.
public comment period is limited to 30 minutes out of
respect for everyone's Time Each speaker is limited to 3.
minutes.
Um, we have no remote callers.
Um, we have no remote callers this morning. So all of the
people speaking today.
people speaking today are in person in the first person is
toan.
toan Sims.
Good morning, Mr. Sim.
Good morning, Mr. Sims. You may begin. Good morning.
So yesterday I shared with the committee.
these numbers
Sr 2400531167 sr24
Sr. 2400531167 sr24 0037 4613 sr2 40292
Sr 2400531167 sr24 0037 4613 sr2 40292876 Sr.
Sr 2400531167 sr24 0037 4613 sr2 40292876. Sr2
240000000966.
240000009668. Sr23
Sr23 0225130 0 0 0 and also from the homeless management.
information systems 3555061 which was issued.
information systems 3555061 which was issued July 15th,
2021 the
July 15th, 2021. The agency would have been at Safe Haven.
this is this would have been my attempt for housing or and
Andor shelter.
today the department of
today the Department of Housing commissioner lazette
costana
is the commissioner in right?
is the commissioner in right now, is she here she is here,
but
But uh, that's not you have to you're in public.
But uh, that's not you have to you're in public comment now
make I'm just going to address directly. So Commission.
Um, this is Housing and Development. This is the
department.
Um, this is Housing and Development. This is the department
on the reality of the failure of it.
And then so if it was issued July 15.
And then so if it was issued July 15th 2021 then.
It would be some type of issue, right?
It would be some type of issue right is this discriminatory
practices to?
practices to practice? That's the um hind the black
individuals Red Line.
individuals red line that happened so long ago.
But I'm here about housing. I've been at this for 120 days.
for shelter.
if I get into the shelter system then this
I guess this number which I had since.
I guess this number which I had since 2021 starts to work.
but this is about housing and y'all come in here about
money.
money for housing for people like me.
or people in
Or people in situations that's dealing with a circumstance
like mine.
So, what's the
So tell them.
Because who is your Alderman sir? Who is?
Because who is your Alderman sir? Who is my Alderman all of
you? All okay. So all of you all everybody here know who
who are the who are what's the representation?
who are the who are the representation that I have
everybody in this room. So if everybody in this
everybody in this room everybody in this room. We elected
we elected as citizens of Chicago.
we elected as citizens of Chicago, please Madam, please,
please. Let me go on. Okay, please.
please let me go on. Okay, please just go ahead the elected
you are we elected you all to take care of.
you are we elected you all to take care of us to consider
us to look out for
to
To handle these things.
This is the committee.
This is the committee of people.
some of the smartest people
Some of the smartest people in Chicago more than likely.
but
But they gathered y'all together, so they all might be
dealing with issues.
dealing with issues and taking care of the citizens that's
dealing with this.
But here it is. I'm 120 days.
And still is this is since July 15.
And still is this is since July 15th 2021. This is for
housing that I've been.
housing that I've been ignored pushed to the side.
And I'm not attacking you madam. I'm talking to everybody
in this room.
I don't I'm not the 49th Waters where I'm from.
But I'm from Chicago. I'm a Chicago in dealing with this.
So let's not try.
So let's not try to minimize it.
by saying
By saying what water am I from?
I'm dealing with.
I'm dealing with this and still it's nobody helping me.
It's nobody that's it.
It's nobody that's it has helped me. I'm not trying to
minimize your your your situation. You can leave your s.
numbers. First of all, the Department of Housing is not the
department that handles the homeless issue that you're
trying.
trying to deal with.
I if you leave your Sr number, I will give it to the
Department of Family and support services if you want help
that's
That's all I can do. Thank you. Please put your name and
phone number.
phone number on that piece of paper. We'll go to the next
speaker. Who is uh
Zoe lay
Uh chairman though.
Uh chairman though, um morning morning. I want to uh, this
is committee on finance. So I want to play this. Uh,
this
This voicemail that was left on my mother's. Um
this voicemail that was
This voicemail that was left on her phone. Uh, when?
building was uh demolished illegally demolished.
Darling Marsh. I'm not sure.
Darling Marsh. I'm not sure if I've gotten the right person
or not. I'm calling.
or not. I'm calling from the city of Chicago Law
Department. Uh, I understand you are trying to get through
on.
on on uh,
over the long weekend, um in any event
there are
There are 3 things you can do if you want money for
demolished propert.
demolished property if we're just talking about a little
bit of money.
bit of money the Alderman's committee on finance, and I'm
surprised your Alderman didn't mention that to you. Um
if this is a more serious problem and I'd rather suspect it
is
and this happened rather recently. Yeah, so this is
committee on finance?
Alderman 17 Ward, that's my Alder.
Alderman 17 Ward, that's my Alderman David Moore Sam Piper
Lounge
my mother reached out to him my
My mother reached out to him my godfather reached out to
him.
did
Did not respond.
Have all the email.
Have all the emails.
all of that, so this is
All of that. So this is committee on finance. He didn't
offer us anything.
That was in 2017.
2024 I've been fighting for a year. He saw me outside
protest.
protesting. My mom's 75 years old again. I don't want to be
here.
I I like Festival.
I I like festivals. I like music. I like my friends. I like
my God kids.
I want the city of Chicago.
to just do right and give my
To just do right and give my mother her money.
my mother
My mother got a nonprofit Notre Dame affordable housing is
for Vetter.
for veterans.
She started asking for the Tif money.
She started asking for the Tif money again so she can build
so she can build.
build so she can build the 4 apartments for Veterans for
homeless veterans.
homeless veterans and then the commercial part was supposed
to be for.
to be for the live the the live left and
to be for the live the live the live laugh learn.
laboratory and help with the system with with with with um
everything to help to assist veterans.
I should not.
I should not be coming down here and this man.
Just sits around here and slaps people.
Just sits around here and slaps people hands and everything
all that like it's okay. This is an alderman. This is an
alderman and that's when the Law Department from the city
of Chicago.
It ain't my word against his.
That's something wrong.
Thank you, Miss Jackson.
I the next the next speaker is Jessica.
I the next the next speaker is Jessica Jackson.
Good.
Good morning.
Okay, so
I'm here about what you all know, I'm here.
I'm here about what you all know, I'm here about and that
is how Cook County is still in black people's property.
Now. I have a case in Federal.
in the federal court, the case number is 2
In the federal court, the case number is 23 CV 14590.
In the federal court, the case number is 23 cv1 14590 and I
am the plaintiff Jessica Jackson.
am the plaintiff Jessica Jackson in prosay and the
defendants are chief judge Timothy Evans.
defendants are chief judge Timothy Evans Clerk of the
Circuit Court Iris Martinez.
Circuit Court Iris Martinez judge parent omali prob.
Judge Terence Maguire Probate, Judge, Carol.
Judge Terence Maguire Probate Judge Carolyn Gallagher
presiding Probate Judge Daniel.
presiding Probate Judge Daniel B. Malone public
administrator Lewis G.
administrator Lewis G apostle.
Tina public administrator real estate investor Tina lupus l
o u s t r o p o u l o s general counsel of the public
administration Leah jakowski
uh public administrator attorney Thomas Le
Uh public administrator attorney Thomas lean Weber attorney
private attorney.
private attorney David Feldman, who was the higher the
state attorney. Who was a crook
state attorney who was a crook Attorney Kevin canvy who
worked with him.
worked with him corporate Council from the city Glenn
angel.
and of course my sister, who was the Crooked executive?
thought like a lot of black people do that when they come
up with white people things going to go a different way no
off.
offense to the white people in here because you know, we
good. All right, so,
I with that being said.
You all are in here today?
You all are in here today 1 in money.
For some type of whatever you already got.
for some type of whatever you already got $300 million that
the uh, May
the uh, mayor Kane account for and you going to come and
ask for some more.
I went.
I went through Englewood yesterday to get something to eat.
I was with my daughter.
and she was like
And she was like Mom, where are we? Why does it look like
this over here?
I'm like
the older woman Stephanie Coleman is the president.
the older woman Stephanie Coleman is the president of the
black caucus.
She's the president of the black caucus and look at the Way
Englewood looks a bunch of abandoned buildings empty lot.
Oh look at the clock pat down. I know you.
Oh, look at the clock pat down. I know you want me to get
finished, but I'mma be back for the next meeting because I
got some more.
shuffle your papers
because my mother did everything, right?
She had a will she paid off all her.
She had a will she paid off all her debt that building been
paid for since I was 15 years.
paid for since I was 15 years old and the probate
Department could come with some.
Department could come with some garbage.
I'mma Be Back
bust your little buzzer.
Bust your buzzer. I'll be back.
Thank you, Miss Jackson.
uh at this
Uh at this time, uh public comment has ended.
Uh at this time, uh public comment has ended and I want to
acknowledge all them and Conway.
acknowledge all them and Conway and Alderman Rodriguez
Sanchez who have joined us.
Sanchez who have joined us and will be counted towards
quorum.
Um, the committee on finance has received 1 written public
comment from the urban environmentalists, which was
electronically to everyone. Um, so that's in regard to the
item we have on our agenda today.
um as I previously stated
Um as I previously stated this is the second subject matter
hearing on the bond.
hearing on the bond proposal after the first hearing which
we held on March 22nd the Departments
we held on March 22nd, the Departments heard all the
feedback and suggestions from my colleagues and a
substitute ordinance was prep.
substitute ordinance was prepared.
Uh, the committee has emailed each.
Uh, the committee has emailed each Alderman a packet of
information. Which included
information which included the following information.
the
The Substitute ordinance the red line substitute ordinance
version 3
the summary of the changes to the bond ordinance exhib
The summary of the changes to the bond ordinance exhibit a
uh, there were no changes to exhibit.
uh, there were no changes to exhibit a
the TIF district extension framework the slide deck that
you'll see this.
you'll see this morning as part of the presentation.
bond overview book the project.
bond overview book The Project selection criteria all
written.
written public comment and the economic.
statements and accompanying forms for the bank.
statements and accompanying forms for the Bank of New York
Mellon, which was acting as the trust.
Mellon, which was acting as the trustee for the bond issue.
Um, we'll begin this meeting with a short presentation on
the substitute ordinance itself, and we're going to get
that from Daniel, Herz, who is the director of policy.
research and legislative affairs in the department.
Housing Alderman Chico. I do see you this morning and have
counted you as part as a non-member. Thank you.
Um, we're also joined or will be joined by uh commissioner.
Boatright from the Department of planning.
Boatright from the Department of Planning and Development.
We also have with us Commission.
We also have with us commissioner Castaneda from the
Department of Housing.
Department of Housing Dan fstrim from Kofa.
Mike Sean from dpd as many of you know, Tim Jeffries is on a
much-needed vacation.
a much-needed vacation.
nor schaick Depp
Nor schaick Deputy controller from the Department of
Finance Brendan.
Finance Brendan White assistant commissioner from the
Department of Finance and Stephen Mah the CFO.
Department of Finance and Stephen Mah the cfo's office.
We're also joined today by a group of panelists who will
speak on the bond.
speak on the bond proposal. Each of these speakers will be
limit.
limited their remarks to 5 minutes. We have James Norris
from the Chicago.
from the Chicago Community Loan Fund.
Daniel Coupe
Danielle Cooper senior director from the Metropolitan
planning Council
Joe Ferguson who many of you know president now of the
Civic Federation and Janice Oda Gray from the
Office of fiscal analysis.
Office of fiscal analysis after uh, several speakers will
begin to take questions from the members of the committee
and non-members. So with that Daniel if you could go over
the substitute,
thank you. Good morning Cher dowel, uh, good morning
members.
members of the committee on finance.
my name is Danielle k
My name is Danielle K hurts. I'm director of policy research
and legislative.
and legislative affairs for the Department of Housing.
Thank you for the.
Thank you for the opportunity to give a brief presentation
today on the changes on the substitute ordinance in front
of you.
of you this morning with respect to do and dpds.
of you this morning with respect to do and dpds proposed
housing and economic development Bond.
These changes have been made following comments we received
from this.
received from this body during the march during and after
the March.
the March 22nd subject matter hearing.
as well as conversations and feedback from
As well as conversations and feedback from uh Council
Office on financial analysis the Civic Federation.
Office on financial analysis the Civic Federation and other
stakeholders.
the changes fall into 3 main categ
The changes fall into 3 main categories first project
selection. How do we ensure an equitable distribution of
investments from?
investments from these bonds second transparency and
Reporting? How do we ensure Council and the public?
Reporting? How do we ensure Council and the public know how
dollars are being spent and finally FIS?
dollars are being spent and finally fiscal responsibility.
How do we ensure that these bonds?
How do we ensure that these bonds do not negatively impact
the city's fiscal position. I'll go through each of these
in turn.
with respect to project selection, uh, the original
ordinance did Ensure
ordinance did ensure that projects funded by the bond would
have to be following the purposes that Council intended, uh
and could
uh, and could not be used for other purposes or other
activities.
activities or projects.
The Substitute ordinance now also requires that do and dpd
publish selection criteria for each program fun.
publish selection criteria for each program funded by the
bonds, um in addition to the
bonds, um, in addition to the um, the project selection
pamphlet that has been distributed to you all um last
month,
in addition major projects of 5 million or more
require separate authorization from Council to move.
forward.
This would include essentially all.
This would include essentially all multi-family projects
supported by do. Um
supported by do um, as well as especially CDG large
project.
projects supported by the department of planning and
With respect to transparency and Reporting.
With respect to transparency and Reporting the original
ordinance required annual reports.
ordinance required annual reports from the CFO to council
the substitute.
The Substitute also now codifies do and dpd.
The Substitute also now codifies do and dpd's commitment to
make quarterly reports to C.
make quarterly reports to council and the public on Project
commitments and funding.
It also codifies the Department's commit.
It also codifies the Department's commitment to publish all
Bond funded projects.
Bond funded projects on an expanded online incentives
portal subject.
portal subject to the same data requirements as under the
Tif.
Tif Sunshine ordinance.
on the matter of fiscal responsibility the original
ordinance did contain standard language requiring Each Bond
sale to uh each
sale to uh Each Bond sale agreement to be signed off on by
the finance.
the finance committee chair in addition the subst
the finance committee chair in addition The Substitute
requires annual updates to the bond Financial.
requires annual updates to the bond financial model
including updates to actual.
including updates to actual and projected Debt Service as
well as returning.
well as returning revenue from expiring tiffs.
That those updated uh models.
That those updated uh models and updated information will
ensure that Council has up.
ensure that Council has up-to-date data to inform any
future decisions.
future decisions about additional Bond sales or Tiff
extens.
extensions.
Finally, I do want to take a moment to specifically.
Finally, I do want to take a moment to specifically thank
Kofa for their analysis of this proposal.
Kofa for their analysis of this proposal and
recommendations, and I'd like to address each of those
recommendations specifically here.
um, the first of these was to shift from
Um, the first of these was to shift from bi-annual
reporting as was the Department's suggestion.
reporting as was the Department's suggestion at the
beginning of the last subject matter hearing to quarterly,
um as I mentioned earlier in this
um, as I mentioned earlier in this presentation that
recommendation has been fully incorpor.
recommendation has been fully incorporated into the
substitute.
the second recommendation was greater transparency in the
project selection process and Council approval for
significant.
significant projects again, those recommendations have
been incorporated into the substitute in front of you
today.
Another recommendation was increased transparency and
determining the factors that would influence.
determining the factors that would influence the potential
extension of some tiffs.
at the department of Planning and Development has put
together a draft set of criteria that has been distributed
to this.
to this committee.
Um, and we're happy to uh, discuss that further uh in this
meeting.
Finally Kofa recommended looking at both major.
Finally Kofa recommended looking at both major past
Investments and potential future Investments.
Investments and potential future Investments to project to
project returns and revenue generated for the city.
dpd and do
Dpd and do will work to bring on analysts to quantify the
return?
return on investment of bond funded projects in a rig?
way to meet that recommendation.
Again in closing. Thank you.
again in closing thank you for the opportunity to share
these updates with the committee as you know, do and dpd
believe this is a significant.
believe this is a significant proposal that will allow us
to sustain our existing.
to sustain our existing programs in the face of rapidly
declining resour.
declining resources while allowing for more effective.
Efik.
efficient and Equitable implementation then current tools
allow.
I'm happy to answer any additional questions.
I'm happy to answer any additional questions the committee
has thank you.
Thank you, Daniel. Um before we open up the floor to
questions, um many of you, um came to me with suggestions
about people that you wanted to hear. Um at
about people that you wanted to hear, um at this, uh,
subject matter hearing and so, uh, we have uh with us, uh
several speakers and we'll begin with uh, James Norris from
the Chicago Community Loan Fund.
Uh morning everyone James Norris director of Lending.
Chicago Community Loan Fund.
Uh C.
Uh cclf is a 33 year old CDF file that serves as Metro.
Chicago and more specifically the south and west
Chicago and more specifically the South and West sides of
Chicago and developers in those sub-markets. Um cclf is in
full support of this.
full support of this Bond issuance and proposal. That was
to help our developers.
help our developers move projects forward. Um 1 aspect.
I do appreciate is the pre-development grand dollars.
that are available to developers or would be available to
Developers.
developers. Um all too often our developers run out of what
they have set aside as Equity investment in
projects, um, and they soon run out of those dollars and
the projects become stalled because they cannot push
forward. Um,
these dollars
These dollars would allow them to give them uh Progressive
payments.
payments to allow them the ability to move there and
mobilize their projects.
mobilize their projects and we could get more projects done
1.
1 Project in particular. Um that comes to mind is on East
75th.
75th Street. Um a developer is trying to build a a
restaurant. Um, he's been awarded in the West Grand of 1.
Million, um, but it's stalled because he's run out of his
own dollars. He has not been able to pay his Architects and
Engineering for their reports. Um, he has not gotten sight
control.
control because he has doesn't have the dollar. So now I'm
tasked with the
to to figure out to to to bridge.
to to figure out to to to bridge the NLF dollars in order
to bring the project forward. Um, but should he have access
to dollars?
to Dollars? Um, that would be tremendous and move more
these projects. Um and bring them online.
Again, CCF is in full support. Um, we excited to see um
this move forward.
this move forward and it would help so many developers on
on the southwest side to get their projects completed.
Thank you.
Good morning. Chair Dao members of the finance.
Good morning chair Dao members of the finance committee. My
name is Dan Cooper and I am senior director of res.
name is Dan Cooper and I am senior director of research at
the Metropolitan planning Council here in Chicago. NBC is a
nonprofit policy and planning organization that
equity in the built environment through its focus.
Housing and Community Development Water Resources
transport.
transportation and land use and planning. I'm here on
behalf.
behalf of NPC to express, uh support for the for the bond
proposal and the substitute ordinance.
Uh many families across the city are currently struggling
with housing.
with housing affordability as we know and as we've heard
today.
today, uh, and many communities are in need of investment
to build vibrant commercial.
to build vibrant commercial corridors with diverse
businesses. We believe this proposal represents an
effective solution to help address both of these.
effective solution to help address both of these challenges
by providing an immediate Revenue stream that can be used
to support development where it is most needed.
And critically we support this because the new borrowing
will be paid.
will be paid for over time by revenue of of expiring from
expiring Tif districts. Chicago has long been a city where
Stark disparities exist in resources of the neighborhoods
by some estimates low poverty. Neighborhoods received more
than 4 times the amount of Market driven investment than
high poverty.
high poverty neighborhoods do uh, this continues to grow
the gap.
the gap between neighborhoods that are doing well and those
that are struggling to date the development tools that city
government has it has its disposal to address these
challenges have been inadequate. Um, mpc's
on financial development incentives has shown that in
incentives for community and economic development largely
have not in the past gone to areas that are the most
starved of development resources.
This is largely because the biggest development incentive
program Tiff tax in.
program. Tiff tax increment Finance districts was not set
up to generate dollars in neighbor.
up to generate dollars in neighborhoods with the greatest
disinvestment.
Geographic limitations on where funds can be spent ensures
that incentives.
that incentives are used disproportionately in areas where
private investment.
private investment is already working and occurring, uh,
which also contributes more to these resource resource gaps
across communities.
An important lesson we have learned in this research.
An important lesson we have learned in this research, uh
and hold on to your hats. This is going to blow you away is
that if Equity is not baked into a program at the outset.
There is little chance that it's outcomes will be
equitable.
Equitable. Tiff was not designed to be Equitable and
unsurprisingly.
unsurprisingly its outcomes is not have not been either.
with the
With the proposed housing and economic Bond program. We
have a new opportunity.
have a new opportunity to Center Equitable development from
the very beginning.
the very beginning without Geographic limitations. This
proposal will not be a Panacea for all the city's Housing
and Development needs but if executed well, it can make
tangible impacts in Long disadvantaged areas where the
market and public driven.
market and public driven Investments have been inadequate.
we
We have confidence in The Proposal because new debt will be
paid for.
paid for over a relatively short time frame while shifting
away.
away from an over Reliance on Tiff to incentivize
development. We are also encouraged by the commitment to
transparency and regularly publishing data on all Bond
funded projects. It represents a positive step towards
centering equitable.
centering Equitable development and neighborhoods that most
need it.
For this proposal to have Maximum Impact goals and selection
criteria.
criteria must be clear. And from what the city is Cirque.
to date in terms of both project selection and the Tif
the Tif extension is a good start Chicago has the
opportunity to be a national leader and how it centers
equity and devel.
equity and development need in the deployment of
development incentives. We recommend that strong
consideration be given to funding projects.
consideration be given to funding projects that include
housing affordable to special populations like those.
experiencing homelessness those re-entering from prison.
and those whose income is much less than the area meeting
just to name a few. We also encourage the continued use and
refinement.
refinement of data driven strategies and criteria for
ensuring that Bond funded projects work to close gaps
between High
between high and low resource communities and work with
existing community.
existing Community plans and stakeholders to determine
where projects should be.
where projects should be funded. We see this proposal as a
positive first step.
positive first step in making development incentive
programs more Equitable in Chicago.
Thank you for your time.
Thank you.
I want to acknowledge, uh
alderman
Alderman Taylor and Alderman Hopkins who joined us
Alderman Lawson, uh will be added to quor.
I already recognized you.
He came.
He came in and you went out.
Good.
Good morning, chair, Dal members of the finance committee
and the City.
and the city council. Thank you for the opportunity to
testify on the proposed.
testify on the proposed Bond ordinance. My name is Joe
Ferguson.
good to
Good to see many friends maybe a couple of past Frenemies.
but future friends. Um, and I have the honor of serving as
the president of the Civic Federation and nonpf
Government research organization dedicated to prudent
fiscal management Effectiveness and efficiency.
fiscal management Effectiveness and efficiency in state and
local government that this year is celebrating.
local government that this year is celebrating its 130th
anniversary.
The Federation has appreciated the opportunity to engage.
with the city on the topic of the housing and economic
development.
development Bond and we thank the Commissioners and their
staff.
staff for responding to our many questions.
The Civic Federation views this proposal as a sens.
of resetting the cities over usage of
means of resetting the cities over usage of Tiff.
While redirecting re
While redirecting Revenue to the city to back these bonds 4
for years to come without increasing taxes by leveraging
for expiring Tiff increment the city will be able to
strategically rep.
strategically repurpose Revenue currently paid into
expiring Tiff.
expiring Tif districts the justification for this shift.
expiring Tif districts. The justification for this shift is
well supported funding for critical afford.
well supported funding for critical affordable housing and
economic economic development program.
economic Economic Development programs will drop off with
the end of the FED Federal.
the end of the FED Federal risk, uh rescue plan act and Co
money.
money as well as a mounting Revenue drop off as 47 Tif
districts Sunset within the next 4 years in addition to
several fiscal cliffs on the near Horizon. We are on the
precipice of a tiff CL.
precipice of a tiff Cliff for which immediate response is
needed.
the Civic Federation has long
The Civic Federation has long regarded Tiff as a crucial
tool for economic development. However, the city's more
recent use of funds indic.
recent use of funds indicates that the practice needs
reform the in.
reform the inherent limitations of Tiff both in terms of
fund. Use and Geographic restrictions have worked to the
detriment of comprehensive Citywide development.
detriment of comprehensive Citywide development efforts at
overcoming the constraints have a Time stretched the use of
Tiff beyond what many fairly regard as its core purpose the
development.
development of blighted areas.
City has all but continually relied on major sweeps.
City has all but continually relied on major sweeps of Tif
surplus funds to balance its annual budget.
surplus funds to balance its annual budget both suggesting
that many Tif districts. Do not need.
that many Tif districts do not need revenue for
redevelopment projects due to unach.
redevelopment projects due to unachievable goals or excess
revenue and perpet.
revenue and perpetuating the cities the city budgets
broader long.
broader long-running structural imbalance.
equally important and to the Federation are
representations from the commissioners of planning and
development.
development and housing that Tiff is still and
continue to be a critical development res.
continue to be a critical development resource, but 1 that
is more rigorous rigorous.
is more rigorous rigorously scrutinized and calibrated to
need going forward.
need going forward this appears to find affirmation by the
administr.
administration's recent 151 million commitment.
administration's recent 151 million commitment to the la
lal Street Redevelopment project.
rather the use of revenues from
Rather the use of revenues from these expired Tif districts
adds a meaningful.
adds a meaningful tool to the city's Arsenal and is
responsible way to address the coming Revenue.
responsible way to address the coming Revenue drop off most
of the expiring TIF district.
of the expiring Tif districts our neighborhood-based and
will not affect large.
will not affect large downtown large-scale downtown
project.
projects, um that have much longer lives ahead of them.
projects. Um that have much longer lives ahead of them. It
is also important to correct the narrative about what
proposal is.
It is.
It is a funding proposal that would primarily maintained.
financial support to existing Housing and Development.
programs. It is not a policy proposal.
programs. It is not a policy proposal oriented towards the
creation of new programs.
creation of new programs as was the case for bring Chicago
home.
home Additionally the city will only issue debt in
incrementally in amounts where revenue is sufficient.
incrementally in amounts where revenue is sufficient as
demonstrated by substantial periodic reporting requirements
to cover increased expenses.
to cover increased expenses in contrast with the frequent
practice.
practice of Simply extending Tif districts to maintain re
revenues this proposal begins to address the Tif Cliff
through actionable policies and priorities.
through actionable policies and priorities while overall
the Federation is encouraged by The Proposal. We do have
some concerns particularly about the lack of planning in
key respects.
key respects the absence of comprehensive planning in many
key areas.
key areas perpetuates, the hyper transactional nature of
development.
development that has stymied growth for decades. The
spending plan is not tied.
to the Capitol improve
To the capital Improvement plan a Citywide housing plan.
planning to replace Tiff subsidized infrastruct.
developments those concerns do not
developments those concerns. Do not defeat the importance
and the need for this important tool.
and the need for this important tool but they are things to
be mindful of as we move forward and the revenue estimates
for this proposed.
for this proposal are fully acknowledged to not account.
the upcoming Chicago property tax reassessment which could
affect property values.
affect property values, uh, making up the overall tax.
space again not of itself, um sufficient to um, uh consider
um being
consider, um being against this proposal, um, but something
to be mindful,
to be mindful of going forward and actually addressed in
some of the um, uh revisions, um, uh in the substitute
ordinance with respect to reporting in fact, we're by the
inclusion.
inclusion of added guard rails and circuit breakers in the
substitute ordinance their responsive to previously artic.
articulated concerns necessary to ensure this bond proposal
achieves its goals such as a commitment to detailed
quarterly reporting.
quarterly reporting on bond expenditures and allocations
criteria for deck.
criteria for deciding Tiff extensions, uh selection and an
extra layer of appropriation Authority for projects.
extra layer of appropriation Authority for projects over 5
million The Substitute ordinance requirement.
million The Substitute ordinance requirement for adding
added reporting on Revenue projections.
added reporting on Revenue projections based on anticipated
expiring tiffs.
expiring tiffs and Debt Service projections also bolsters
ass
expiring tiffs and Debt Service projections also bolsters
Assurance for success.
given the volatile state of the real estate market we
stress that incorporation of data from the upcoming
reassessment of Chicago.
reassessment of Chicago property must be incorporated into
the now.
the now to be required reports.
Meeting looming funding Cliffs while keeping steady and
expanding support.
expanding support and incentives for economic development
and housing needed for a thriving future will require a
wide.
wide array of creative tools this prop.
wide array of creative tools this proposal as presented
standing on its own merits a place in the toolbox. However,
the city must remain mindful that a part of this funding
which has been used to help fill past budget shortfalls
will not be available for future budgets during which we
will be facing greater challenges. I look forward to
continued engagement with the city in this process, and I'm
happy to answer any questions.
Thank you. And our last speaker is Miss eau de Grey.
Good morning. Chairman, Dal.
Good morning. Chairman, Dal Al older persons and guests. My
name is Jan.
name is Janice Oda Gray.
City Council Office of Financial
city council office of financial analysis
Today, I'm here to express our over.
Today, I'm here to express our overall support for the
proposed 1.2.
proposed 1.25 billion dollar bond proposal joining.
proposed 1.25 billion dollar bond proposal joining me here
in the box from Kofa is Dan fist.
in the box from Kofa is Dan Fram.
Kofa recommends a bond proposal and its key components 1 of
the important aspects of The Proposal is a reimagining of
Tif fund util.
Tif fund utilization which enables flexibility in Project.
selection and potential redirection of funds into the
city's coffers. Kofi is also in favor of the Strategic use
of non-taxable.
of non-taxable stsc bonds the CFOs assurances.
of non-taxable stsc bonds the CFOs assurances regarding the
proposals impact.
Existing debt and the maintenance of the bond rating further
streng.
strengthened kofas confidence additionally test.
strengthened kofas confidence additionally testimony
suggesting possible property value.
suggesting possible property value and population growth
adds to the proposals appeal.
Kofa applauds a commitment to transparency such as
establishing online portals.
establishing online portals and holding regular hearings on
progress. These measures are crucial for fostering resp.
responsible financial management and inclusive development.
in Chicago regardless of Tiff.
in Chicago regardless of TIF district boundaries or Revenue
constraints.
Kofa has expressed several concerns about the initial
proposal.
proposal these concerned primarily relate to the framework.
for determining which Tif districts should remain or be
extended.
This issue is currently.
This issue is currently being addressed the lack of clarity
on the criteria.
on the criteria raises questions about transparency and
accountability.
accountability, especially given concerns about the
council.
council's level of involvement in projects selection.
despite assurances from the CFO. There are concerns about
significant funding for existing.
significant funding for existing programs that may not
necessitate Council.
necessitate Council approval if under an existing program.
Additionally the council is apprehensive.
Additionally. The council is apprehensive about the 81
million dollar annual allocation.
million dollar annual allocation toward debt Services,
especially consider.
especially considering Rising pension costs and operational
OB
obligations.
Kofa shares these worries particularly about the impact of
The Proposal on the city's Bond rating and the lack of
clarity on expect.
clarity on expected returns.
although the proposal ties new debt to recurring revenues
kofer remains cautious and emphasizes the need for expand
Revenue sources to support flexib.
Revenue sources to support flexibility and potential
returns overall these concerns.
returns overall these concerns highlight the importance of
transparent and comprehensive analysis and evaluating the
proposals.
proposals long-term impacts on the city's Financial.
proposals long-term impacts on the city's Financial Health.
in summary Kofa recommend
In summary Kofa recommends a bond proposal as it is as it
has a potent.
has the potential to enhance Chicago Financial flexib.
and funding major developments by endorsing the reimagining
of Tif fund utilization and straight.
of Tif fund utilization and strategic use of non-taxable
St.
stsc bonds. Kofa believes that there are opportunities.
stsc bonds. Kofa believes that there are opportunities for
greater discretion.
to project selection this could potentially read
To project selection. This could potentially redirect an
estimated 2.2 billion dollar.
estimated 2.2 billion dollars that is not limited to
specific TIF district.
specific TIF district boundaries. The Chief Financial
Officer believes that the exist.
Officer believes that the existing debt pension payment and
the capital improve.
the capital Improvement plan will not be affected.
the capital Improvement plan will not be affected pairing
debt with recurring revenues from Tiff.
debt with recurring revenues from TIF district expirations
could help maintain the city's binary rating additionally
kof appreciates.
kof appreciates the commitment to made by dpd and dooh to
our transparency such as plans.
our transparency such as plans for a transparent online.
portal and regular
Portal and regular progress hearings these steps towards
responds.
responsible financial management and inclusive development.
are crucial for Chicago regardless of Tiff.
are crucial for Chicago regardless of TIF district
boundaries or incremental Revenue constraints.
boundaries or incremental Revenue constraints in today's
discussion of the substitute ordinance.
discussion of the substitute ordinance Kofa expresses
appreciation for the efforts of the C.
appreciation for the efforts of the cfo's team and the
departments in addressing concerns.
departments in addressing concerns raised in the previous
hearing and on our 20 April 2nd report notable changes incl
include mandates for publishing all project selection.
criteria and requiring Council approval.
criteria and requiring Council approval for projects
exceeding 5 million.
exceeding 5 million, which previously may not have
necessitated approval.
necessitated approval if under existing departmental
programs. However, Kofa seeks a bit of clarification on the
rationale behind the 5 million dollar threshold.
Additionally Kofa welcomes a change to quarterly report.
Additionally Kofa welcomes a change to quarterly reporting
and the publication of bond funded projects.
and the publication of bond funded projects in the portal.
Kofa also appreciates a commitment.
Kofa also appreciates a commitment to circulate proposed
criteria for determining for determining Tiff extensions
and look forward to learning more about the new commitment
from DP.
from dpd and dooh to bring on analysts to Quant.
potential return on investment of bond funded projects our
recommendation is to support the bond proposal. However, it
is important to note that it won't solve all the financial.
issues related to affordable housing and
development if the proposal is care.
development if the proposal is carefully crafted it.
Has a potential to offer.
Has a potential to offer greater flexibility than the
previous program and support.
previous program and support the growth of new businesses
affordable homes.
affordable homes and future developments. Thank you.
Thank you. Miss. Soda, Gray.
I will open up the floor for questions. But before I do I
wanted to acknowledge Alden and CEO.
wanted to acknowledge Alden and CEO Lopez and Alderman
Gutierrez.
uh the first name
Uh, the first name's I see are Alderman Taylor followed by
Alder.
Alderman Martin.
Thank you madam chair.
tell me how this will be any different and this is
Tell me how this will be any different and this is to you.
This is to anybody in the Box.
this is to anybody in the box then tiffs.
Tiffs were supposed.
Tiffs were supposed to be were created so that we could
develop.
develop um communities that were under developed and what
happened with that money is it was ported to other places
that didn't need it. And so why why are we doing a bond and
and what will be the difference because to me it's a matter
of it. Looks like it's just the name.
of it looks like it's just the name change. It's just the
name switch. You gonna go from Tiff to bonds. How do we
reinsure that the communities that that really needed will
actually get the funding.
I can uh Elder woman. Thank you for the question. I can I
can begin.
begin and obviously welcome any uh other uh input but the I
think there's several really fundamental.
think there's several really fundamental differences
between the Tif program and and this bond proposal. The
biggest 1 is about I think what you mentioned which is
geographic restrictions, um right now,
geographic restrictions, um right now under tiffs, uh tiffs
only generate money.
only generate money based on the increment of growth of um,
uh of property values within the the district.
uh of property values within the the district and so we
have districts downtown that generate.
have districts downtown that generate well over 100 million
dollars a year and districts.
dollars a year and districts on other parts of the city,
especially the South and West sides that generate, you
know, half a million dollars a year and really don't have
enough oomph financially to complete.
enough oomph financially to complete major projects.
the bonds on the other
The bonds on the other hand will be not restricted by
geograph.
geography. Um, they can be used anywhere in the city and I
think we've seen um with the CRP Chicago recovery plan
bonds that that has been a boon I know both from do
bonds that that has been a boon. I know both from do um
where we're able to consider Pro or we were able to
consider projects that we wouldn't have been otherwise
able to consider because there wasn't a tiff with suff.
sufficient resources. Um, and from a DP
sufficient resources, um, and from a dpd side where they
were able to make Awards.
were able to make Awards without respect to Tiff
boundaries, and they did
um, I know over the last few years dpd has awarded 75% of
their uh,
their uh Community Development grants to the South and West
sides. Um, so you said that
what is in place in this ordinance or any substitute?
What is in place in this ordinance or any substitute that
reinsurers that the South and West Side won't?
reinsurers that the South and West Side won't go to the
Wayside when it comes to development. How what?
Wayside when it comes to development how what is in place
or what is in this that makes me think there is going to be
Equity because we say that all the time and we see think
about the win trust theater. What did that money come from?
I'll wait.
absolutely it was
Absolutely, it was ported from other communities. And so
what is in this that would make me say I could support this
because there are protection and there are things that we
actually able to do to make sure that the investment on the
southwest side.
Southwest had happens.
commissioner bolt right
Commissioner bolt right sure, um, I think a couple things
in terms of the programs.
in terms of the programs many of these programs are
existing programs not can you speak into the mic
commissioner? Sure many of the programs.
commissioner? Sure, many of the programs are existing
programs not new programs and
programs not new programs. And so the criteria for the
existing programs as it relates to the bond allocation.
We've got preference for the South the west and the
southwest side of Chicago. Um, we've got preference for
high impact job creation.
high impact job creation projects, which our neighborhoods
desperately need the other thing. I want to add in terms of
1 fundamental.
of 1 fundamental difference or why the bond and why now
you've heard it through a few of the speakers earlier a lot
of the tips.
of the tips are expiring and so we're at a pivotal place.
So,
So whether or not the bond moves forward and we're hopeful
that it
Those tiffs still expire and it leaves.
Those Tiff still expire and it leaves us with 1 less tool
and then the economic tool box.
and then the economic tool box to Spur economic
developments and neighborhoods that needed and Des.
developments and neighborhoods that needed and deserve it
most the other thing that I just want to highlight is.
we do have some tips and they're healthy and they're doing
what they should do. We've got a lot of very unhealthy.
what they should do. We've got a lot of very unhealthy tips
that to Daniel's Point aren't creating the increments.
makes it very difficult to attract Economic Development.
makes it very difficult to attract economic development in
those distressed neighborhoods that you mentioned. You can
be AC the
be across the street from a tiff and not be able to tack
that Tiff. And so we want to remove some of the geographic
um boundaries that Rel
um boundaries that relate to Tiff that won't be a challenge
with economic development.
with economic development bonds so you but there is an
option to extend the Tif
Correct, Abyssal.
Correct. Absolutely, and it's a so that's the system that
they so they don't have.
they so they don't have to expire but also extend that TIF
district and so
make me understand.
make me understand why I would say let's go to the bond and
not just keep the tips and not to say that tips work
better.
because just Tiff is not the most Equitable tool so you
Because just Tiff is not the most Equitable tool so you can
extend the Tif and you can expand the bound.
extend the Tif and you can expand the boundary, but if
they're not if you're not creating new development.
projects, you're not creating increment and so you don't.
have a healthy Tiff. I think the other thing is as we think
about tiffs and bonds. I don't know that it's a tiff versus
bond in some cases. It's a tiff and bond.
bond in some cases. It's a tiff and bond and so we want to
create more tools not
create more tools. Not just 1 tool. It's not the only 2 but
more tools.
more tools that are far more Equitable. Um, I mean if you
Look at just some of our tips some are thriving some.
Look at just some of our tips some are thriving some are not
that makes it very difficult for.
that makes it very difficult for your award to get the
development that it needs.
development that it needs and deserves if you're limited
with the Tif.
Yeah.
yeah, the other thing Alderman Taylor is that uh
flexibility of the bond.
flexibility of the bond money is different than the inflex.
inflexibility of the Tif money in terms of How It's
So for example, you could have a project in your ward.
you would want to see that's new construction.
you would want to see that's new construction, you know
built on some bacon land. The Tif is not able to
that it could support things like environment.
remediation, you know infrastruct.
remediation, you know infrastructure improvements, but in
terms of the physical building, but if you had to rehab
project in your ward Tiff could um support that so that's 1
thing. It does give more flexibility in terms of what can
be done with the money. So I understand the restrictions my
issue is saying again and
issue is saying again, and that's a question that nobody
kind of can answer. Like what is it that says I'm gonna
fund a tiff and all the 1 with Taylor World versus
I'm going to support the bond that works.
I'm going to support the bond that works in Alderman Riley's
War. What what what what is there?
War. What what what what is there what what is in this
document that tells me?
document that tells me that I am going to be the preference
now thinking about he represents downtown. He ain't
probably got no space to develop anything. But what is it
in this that?
in this that tells me that I'm going to get the priority
and that's my concern.
and that's my concern and my last question is can we get a
list of all of the tips that they are going to to kind of
eliminate because of the bond?
and if
the ones that expire
The ones that expire yeah.
Yes, so I can I'll try to.
Yes, so I can I'll try to answer um those in order.
yes, so I can I'll try to answer um those in order so um
I want to I want to First follow up on something that was
asked. Excuse me.
asked. Excuse me, Daniel that information on the number the
tips.
tips expiring is was part of the through the chair.
requests. Okay that was sent to you. Thank you.
Thank you chairman.
um with respect to
Um with respect to the selection criteria, so we did
circulate.
circulate a um selection criteria pamphlet to members of
this committee. Um, that includes the the criteria by which
um,
um decisions are made about how to choose projects. Um, and
in particular, I'll highlight the Community Development.
grant program within uh, the department of planning and
Development. I know that that program does explicitly
provide. Um,
but of points for uh Awards in on the South and West Sid
But of points for uh Awards in on the South and West sides
and in in historically disinvested areas.
and in in historically disinvested areas, um the uh, but
other projects other programs are also included in here.
Um, and then I did want to address just the issue of um,
the ability to extend Tiff so it
the ability to extend Tiff. So it is absolutely the case
and and we've anticipated and the models that we've done
around this that some tiffs will be extended.
around this that some tiffs will be extended, um, where we
circulated a uh,
circulated a uh draft criteria for how those might be
chosen.
Obviously those have to be approved by Council ultimately.
but I do want to emphasize that the number of tiffs
expiring over the coming years exceeds our ability to
extend all of them, uh,
extend all of them. Uh, there are 4547.
extend all of them. Uh, there are 4547, uh expiring between
now and uh, the end of 2027, I believe there are 19
exposure.
expansion, uh this year at the end of this year.
historically Springfield has only allowed us to extend
about 4 per year.
so
So even if we were to try to extend as many as possible.
do know that dozens of tiffs would be expiring.
do know that dozens of tiffs would be expiring over the
coming years. But if you all know that what Daniel just
extend them
We have not been.
We have not been able we have only been allowed to extend up
to 4.
to 4 tips per year by Springfield. It needs to be approved
by Springfield.
by Springfield as well as the council and so our AB.
by Springfield as well as the council and so our ability to
extend these tiffs does not match the number of tiffs that
are expiring in the next several years. Well, we work with
the state to try to to
to to get that work done because we tips need to be
looked at we we we need to do.
Um
um a lot of work to make sure that they actually work in
what they are created for because we know they're they're
not that and so whereas the conversation with Springfield.
Who are we talking to? How are we advocating to work with
the state?
to say less fixed the Tif issue because there is
To say less fixed the Tif issue because there is the issue
we wouldn't be here talking about bonds if it wasn't.
we wouldn't be here talking about bonds if it wasn't and so
why I want us not to lose that.
why I want us not to lose that money. So I get it. It's
also iriz
also irresponsible for us to lose any money.
and so the thought
And so the thought that they are expiring and can you tell
me what happens when they expire?
So when?
a tiff expires Excuse Me Miss Jackson if you going to sit
back there and have a conversation. I'm going to ask you to
leave.
Thank you.
When a tiff expires the incremental value propert?
when a tiff expires the incremental value property value
that's been captured by the Tif gets redistributed to all
the other taxing bodies. So the city of Chicago CPS The
Parks at the county.
Parks at the county Etc. Um, and essentially it becomes
new. Um,
It becomes new.
It becomes new new property value in the levy in the
property tax levy for.
property tax levy for those bodies and you know,
functionally what happens is then that Revenue that had
been going into the Tif gets redistributed proportionally
to all the different taxing bodies. So the city of Chicago
rece.
receives approximately 22% I believe.
receives approximately 22% I believe of the total, uh value
the C.
the CPS would receive the largest amount around I believe
55%
555% um and similarly proportional to all the other. Um,
to all the other taxing bodies
Yes, go ahead on material. So my last question is how many
Investments Southwest projects are not fund.
invest Southwest projects are not funded in our struggling
not to and let me tell.
not to and let me tell you why I asked that question folks
in our community.
in our community spent a lot of time to help create.
projects that they want to see and now they all seem to be
because we've changed Administration to be struggling
through the chair. Can you tell me how many of those
project?
projects are probably not going to happen and the ones that
we can try to help save how we help and save them.
Sure, I can I can answer that. So we have about 4 in vest
Southwest projects. That should be complete with
construction this year. We have other projects that we're
working to.
working to rightsize if you will I mean from a real estate.
estate perspective capital is challenging right now and so
we want to work with the developers to write size those
projects and that means that the subsidy that we've
committed we're committed to the subsidy and the equity
that they're bringing to the deal we've got
that they're bringing to the deal. We've got to work with
them to kind of figure out some of those gaps, but I would
say overwhelmingly we're still continuing to support those.
projects and support those developers through to um as 1
form of City sub.
form of City subsidy. So we're not stopping those projects.
Um, but it's also important for us to recognize that for
any really stuck development project including the in
invest Southwest projects. Those developers are responds.
to bring Equity to the table too as a city we
to bring Equity to the table to as a city. We can't fully
fund those projects, but we do have significant.
fund those projects but we do have significant skin in the
game if you will through our through our investment in
if and other forms, we'll be using bonds to do that.
Bonds haven't been approved so I can't.
Bonds haven't been approved. So I can't use bonds right
now. The only thing that has been.
now. The only thing that has been so I would love to I
think that would help us to address the gap.
think that would help us to address the gaps and Beyond
invest Southwest projects overall.
invest Southwest projects overall projects that are
neighborhoods need. I want to add 1 piece to the Tif
extension you can extend to Tiff, but if you don't have
development you're not creating.
development you're not creating increment. So what you
really have is just a tiff that's going to be around longer
not necessarily a healthy Tiff.
Which is why it's important for us to not just rely.
Which is why it's important for us to not just rely on
tiffs. We have to have another more sustainable funding.
tiffs. We have to have another more sustainable funding
source. And so I just wanted to add that piece for color.
It's not just about the extensions and expands.
It's not just about the extensions and expansions of tiffs.
It's the actual investment in the community.
It's the actual investment in the community that creates
the increment.
Thank you. Thank.
Thank you. Thank you Alderman before we go to the next
person Alderman Le.
person Alderman was spotted you had your hand up for a
point of clarification.
point of clarification or are you wanting to ask a
question?
Truly chair, I think commissioner boat right just made.
point more succinctly than I ever. Could I appreciate it?
Thank you. Thank you Alderman Martin.
Thank you chair. Um.
Want to start by um following up on the last.
Want to start by um following up on the last line of
questioning from alderwoman Taylor. Um, we've talked a lot
about and this
about in this hearing and prior hearings about what can
happen.
happen if um the city
happen. If um the city council provides this approval. Can
you put a finer?
you put a finer point on what doesn't have or what what
happens if we don't do this are we talking about develop?
developments that otherwise would occur that aren't
talking about developments our current but at a higher
cost?
over a longer period of time
I think you're talking about.
I think you're talking about less development. So we the
tips are expiring.
tips are expiring whether or not this is approved. That's
the fact. Um, and so I think you're talking about less
resources for economic develop.
resources for economic development in those neighborhoods.
That truly rely on Tiff.
that truly rely on Tiff to Spur development. Sometimes it
takes a city subsidy to attract the private investment and
private developers that we need in our communities. And so
without the tool of Tiff it's hard.
without the tool of Tiff, it's hard to kind of prime the
pump and so if nothing happens if this does not move
forward, which I am hopeful is not the case. It makes it
increasingly difficult.
increasingly difficult to bring the economic development
and our neighborhood.
and our neighborhoods. Those are those basic amenities.
We're talking about grocery stores. We're trying to feel
significant gaps for grocery.
significant gaps for grocery stores and developers
interests and developing in our communities. That's just on
the economic development side. We're talking about the
of job creation those living wage jobs that our communities
needs those basic amenities and resources that many
neighborhood.
neighborhoods have that others. Just don't we're talking
about a lot less of that.
about a lot less of that because we've been so reliant on
Tiff for so long in terms of the city.
form of investment
Form of investment in the deal and so those tips are going
to re re expire regard.
to re re expire regardless From dpd's perspective. I think
Doh could tell you some.
Doh could tell you some of the challenges from their
perspective on housing.
Not to put too fine a point on it. You just say your name
for the court reporter commission for the record. I am
commissioner Lisa.
commissioner Lisa gasta the Department of Housing. Um, and
yes not to put too fine a point on it, but it would be the
same thing with affordable housing.
same thing with affordable housing in particular. Um also
part of what we want to do is expand home ownership
opportunities and be able to do more down payment
assistance than we're currently.
Able to do these are all things that we will be unable to do
without the bond.
without the bond and for any deals that may need Bond money
in order to continue. Yes. The timeline for development
gets longer.
gets longer and as the longer that they get the more
expensive that they get and then and ends up being more
money that we have to put in to.
more money that we have to put in to ensure that the
projects get done.
Thank you.
Thank you my last question. Um, maybe I'll direct to.
director herds. Um I know in
director herds. Um, I know in the substitute in 2.9.
there's a discussion around um, 23, um towards the top. Uh,
I think some changes that were made in response to
questions that council members had about transparency
because 1 of the things that I've heard from the number of
residents is what is going to be done to ensure that we um,
don't especially say after everybody in Chambers leaves.
Um,
um, where issuing debt without that corresponding offset in
Tiff related funds. Um, and I know initial convers,
and what we wouldn't issue a particular tranche of funds
without having the the Tif related funds already in place,
but I my understanding is what is provided here.
but I my understanding is what is provided here in the
substitute, uh, really highlight.
substitute, uh, really highlights the transparency that
we'll be
on an annual ongoing basis to help provide both looking
backwards and looking forwards what that plan is, uh,
especially in terms of what specific tiffs will be sunset
and the correspond.
and the corresponding funds. So I just hope you could just
summarize.
summarize what's in there also with an eye towards what?
summarize what's in there also with an eye towards what Joe
Ferguson had shared, um in terms of Revenue estimates, and
I'm quoting Revenue estimates.
I'm quoting Revenue estimates for this proposal are fully
acknowledged to not account for the upcoming.
Chicago property tax reassessment which could affect
property values making up the over?
property values making up the overall tax space. So
obviously things are very much.
obviously things are very much in flux in terms of that
assessment in terms of tiffs.
assessment in terms of tiffs in short what changes were
made.
made to ensure that both we as council members.
made to ensure that both. We as council members and the
public are going to see decisions being made in the
transparent.
transparent and fiscally prudent fashion.
Absolutely. Thank you for the question. Yeah. So, uh
you're exactly right on page 23. It's it's 2.19. I um
of the reporting requirements that's been added in the
subst.
substitute specifically speaks to the um, Bond financial
model that was used that was presented at the previous
hear.
hearing and that's been I believe shared with the
committee. Um, basically checking our math and saying, you
know, does this work out can we really uh issue these
bonds?
bonds sell these bonds over the time period that we expect
um and have enough revenue from these expiring
ensure that there are no property tax.
No needed cuts to other programs. Um and what?
2.19 I says is.
2.19 I says is that each year that model must be up?
2.19 I says is that each year that model must be updated
and must be shared with uh the committee?
and must be shared with uh the committee and so it will
include an update on.
include an update on um, the tax increment financing
districts.
districts that have expired or that we now, you know at
that point know will uh will likely be xed.
that point know will uh will likely be extended um and take
that into account the exist.
take that into account. The existing model does assume that
some Tif districts will be
Tif districts will be extended. But obviously, we don't
know exactly which ones and so as we do learn that that
will be incorpor.
will be incorporated and shared in addition.
um the projections of revenue from those districts, um as
they expire that will speak. Uh, I think directly to what
um, uh, Joe Ferguson from the Civic Federation shared
around, you know, 1 of the factors that does influence the
model is reassessments and we know that reassessments are
coming up.
coming up and um, we'll be able to see once that happens
and the model is updated how that impact.
and the model is updated how that impacts the the
projections. Um, and then finally the reporting is
required.
to include uh, updated projections on
to include, uh, updated projections on debt service on the
bonds, which will be adjusted both based on when we
actually sell the bond.
actually sell the bonds because um based on uh C.
actually sell the bonds because um based on uh, CFOs, uh
policy and practice bonds are primarily sold at the point
when we actually need the cash we
when we actually need the cash. We don't City doesn't sell
them and then leave it.
To collect interest. Um, so when we you know, we have a
projected.
projected schedule, but when we know the actual schedule
that will be incorpor.
that will be incorporated. Um as well as the actual uh
terms and interest on those bonds again, we've you know
made projections based on recent, uh, practice and what
believe to be likely the case tried to be conservative.
every instance, but when we know the actuals, um, or if
interest rate environments change and we have different
expectations for the future that will be updated. Annually.
Thank you. Thank you chair.
Thank you.
Thank you Alderman, uh want to go to Vice chair.
We're going out of order and followed by Alderman vagus.
um this uh dovetails my first question dovetails off some
of the comments that you all made.
of the comments that you all made on.
uh on the
Uh on the revenue estimates for the tiffs going forward.
there any um,
I mean, is there any particular uh asset?
I mean, is there any particular uh asset class that we
think has been hurt more than more than any others.
think has been hurt more than more than any others here
coming out of Co.
Would you do you like me to answer that or was that?
Would you do you like me to answer that or was that a
question? No, sure. That's I mean whoever can whoever
considers himself a real estate investment expert I guess.
Well, I could start.
well, I could start and and I'll yeah, welcome other um
input I mean I I think it's a well, um, well document
well reported that you know office in particular is seeing
a uh decline in values and trading and and that that's
likely going to show up in some way in the reassessment I
think.
As we think about the impact of that on this prop.
As we think about the impact of that on this proposal, um,
you know, we have a couple sort of consider.
you know, we have a couple sort of considerations 1 of
them. Is that um when we look at the map
is that um, when we look at the map of which Tif districts
are expiring over the next few years, um, it's called the
next 4 to 8 years.
um the vast majority of the
Um the vast majority of the downtown sort of core office.
Yeah District tiffs are not EXP.
Yeah District tiffs are not expiring and so, you know, that
doesn't impact us.
doesn't impact us at least or it doesn't impact these
numbers at least in the early.
numbers at least in the early term it may later on. Um,
that's 1 you know, the other piece I think is that um,
in every instance
We have uh do and dpd and working with the CFO.
We have uh do and dpd and working with the CFO and OBM have
tried to make this as conserv.
tried to make this as conservative as possible in our
assumptions. So for example, um, the model assumes that
there is no new construction.
there is no new construction ever.
Um, which would you know increase property tax revenue? It
assumes that um eav grow.
assumes that um eav growth assessed value growth is 2% a
year.
year historically. My understanding is it's a more like
2.8.
or even higher um as
or even higher um, as well as um, like I said it it assumes
that some tiffs will be extended. So that's built into the
model. So
model so our hope certainly is that whatever the impact is.
model so our hope certainly is that whatever the impact is,
um, you know, that that that that service line stays well
below the um,
anticipated, uh Revenue returning so that there is
additional Revenue, but if not, that's where I think um,
the updated reporting and some of those uh, you know, uh,
safety breaks are in place so that we can make adjustments.
Well, I mean, um,
You you noted.
you you noted commercial office space is a as a
You you noted commercial office space is a as a asset
class. It's probably struggling.
I am not a much of a real estate investor, but I know that.
Bulma has estimated that that asset class has fallen.
Bulma has estimated that that asset class has fallen by 50
to 90% in value. I don't know if that's right or not, but
noting that.
the largest Tiff here that is
projected to pay off this Bond. Um
Uh going out is is LEL.
Uh going out is is LEL Central.
and looking at
at uh, cmap data it has that.
at uh, cmap data it has that 58 of the 90 buildings in that
Tiff are commercial office space, which is no no surprise.
I'd also note that I see canal Canal Street Cong.
I'd also note that I see canal Canal Street Congress is the
third largest Tiff and it has similar.
third largest Tiff and it has similar similar issues in
there, but yet the model.
there, but yet the model conservative or not assumes that
the tax revenue and the assessments will be will be the
same going forward.
same going forward and clearly that won't be the case is a
is a concern that I have.
is a concern that I have but something else you mentioned
was the was um
the
Tif Cliff, I know you don't have the model in front of you,
but maybe you could just ask.
but maybe you could just ask this is
um
some questions on definitional terms
Some questions on definitional terms. Um
annual IP revenue is
Annual IP revenue is that like the total amount of money
that the Tif is supposed.
that the Tif is supposed to that all the tiffs are supposed
to turn out in a year. I just don't know what IP means is
uh Alderman if I could get you those answers to the chair.
I just don't since I don't have it in front of me. I
want to speculate without being able to see it. Uh, yeah, I
mean come on. This is a
Oh.
Oh, um, I'm sorry, this is Brendan White. Uh
commissioner in the Department of Finance. Uh ipt is
incremental property tax revenue. Okay, so that would be
about what the that's like the Tif the revenue from all the
tiffs, right? Yeah, so it's the
tiffs. Right? Yeah. So it's the property tax revenue that's
coming only from the increment.
coming only from the incremental eav the tiffs, so it's
sort of limited to the the tax rate the current tax rate
applied to the current eav and that comes up with a
incremental property tax.
incremental property tax revenue number that we expect the
city to actually receive. I thought that based on where the
the model how it tracks but I wasn't, you know want to make
sure I mean when I look at this it looks it, excuse me
Alderman, uh, just for the
Alderman, uh just for the court reporter that was Brendan
White from the Department of Finance.
um, you know, I I see in in
2025 it says the annual IP. Revenue will be
1 billion
6 million in change and even going out to 2030 the annual
IP Revenue
IP revenue is a little over 920 million. Um, I mean I see
it does drop off after that, but I'm I'm sort of missing.
I I keep hearing about this huge.
I I keep hearing about this huge Tiff Cliff, but I'm just
not quite seeing it. I'm seeing kind of a 10.
not quite seeing it. I'm seeing kind of a 10 percent drop
here, uh in total over the next 5.
here, uh in total over the next 5 years. What am I? What am
I missing their?
um, so
the I think the
no, sorry.
no, sorry, this is uh, Brendan White again with the
Department of Finance. Um, so the way we're calculating the
incremental property tax revenues is we're just taking the
current uh, eav in these.
current uh, eav in these existing tiffs growing it by 2% a
year not making any assumptions for new construction and
then when the tiffs come to expire we assume,
then when the tiffs come to expire, we assume that they
join the city's existing e,
join the city's existing eav. Sure. Sure sure. And then we
are applying the cities.
are applying the city's current tax rate to that
incremental eav to determine how much new property tax re
revenue. We're we can uh recoup without increasing the tax
rate. So this is keeping the tax.
rate. So this is keeping the tax rate neutral applying the
current tax rate to the incremental eav. And that's how
much additional property tax.
Revenue we would be able to recoup if we were to follow
through on this plan. Um, and I guess the Tif Cliff is a
slight.
slightly separate issue, which is that uh every
slightly separate issue, which is that uh, every year the
incremental property tax is um,
every year the incremental eav is assessed at the existing
property tax rate and that goes into the Tif fund.
property tax rate and that goes into the Tif fund and then
we apply that Tif money to
projects and any uh additional amount we Surplus and return
to the taxing districts, so
to the taxing districts. So that's the current way that the
Tif eav.
Tif eav, uh money is being used by and distributed to the
taxing districts, and this is sort of a
taxing districts. And this is sort of a way to make it
permanently more part of the exist.
permanently more part of the existing eav and existing
property tax revenue.
property tax revenue that the city gets
No, I I get that.
no, I I get that it it just looks like the Tif Cliff
doesn't really
pop up until we're get at least a 2030.
pop up until we're get at least a 2030 looking uh looking
at this. But yeah, we what we're trying to do something.
It's going to going to be 5 years long. Go ahead excuse.
me. Uh, thank you Alderman. Yeah if I could add 2 pieces.
of context to that as well. So, you know 1 of them is is
it's not just a a total dollar amount. It's also the GE.
geographies because if it's when a tiff goes away regard
regardless of the money that exists in the other tiffs we
can't spend money in that location anymore. And so um, you
know as when 45 tiffs are expiring set to expire over the
next
This point 3 and a half years. Um, that's a massive amount.
of geography that we're losing that regardless of whatever
other money exists. We can't spend it in those location.
anymore. And we know that Tiff geographies are already.
quite restrictive in that way. Um,
The other piece I would say is.
the other piece I would say is especially for larger
projects.
for larger capital projects, uh, like multi-family house
the hous
the Housing Development, um that we might award through the
qualified allocation.
qualified allocation plan. For example at the Doh, um, you
know these
know, these are complex, uh,
comp
Complex, you know projects that take multiple years
sometimes.
sometimes from award or planning to close and the the money
needs to be there at close, right? And
needs to be there at close. Right? And so if we were for
example to make an award, um,
in
In uh, the 2027 qap.
In uh, the 2027 qap that uh was relying on Tiff.
in uh, the 2027 qap that uh was relying on Tiff that
expired in 2029 say that would be pretty risky. And so, um
just because of the the the timeline of planning
We do have to look several years out to how long.
we do have to look several years out to how long are these
tiffs going to be around? Um, because a project we're
working on today.
working on today may actually need the cash in hand several
years.
years from now.
This this is this is still a we're still talking about a 5.
5-year authorization here though for this right is
the 5-year authorization, but the if the
The 5-year authorization but the if the model also shows we
anticipate the actual.
anticipate the actual dispersals of the funds from the um,
from the bond authorization taking place over a longer
period of time, um precisely because of that, um that sort
of timeline of planning.
and construction know I I
And construction know I I I appreciate that and that's
something I will say. I do do also app.
something I will say. I do do also appreciate um
the um brake pedals, I guess that have been put into the
The Substitute legislation, uh, as well as the
acknowledged shortcomings of of Tiff but um
We'll say that.
We'll say that this is you know, this is a big ask here a
bill.
billion a billion dollar Bond offering that we're going to
take that we're going to be paying.
take that we're going to be paying off until 2061 and it
seems like
it's a very new with a lot of lot of unknowns such as
It's a very new with a lot of lot of unknowns such as tax
reassessment. Um we
reassessment. Um, we obviously will lose our ability to
sweep money into the budget.
sweep money into the budget this year. We swept 436 million
into the budget. Um, we not quite sure what it's going to
do to our bond rating. Um, we're not sure which tiffs are
going to be extended. Um,
And I don't I don't.
And I don't I don't want to belabor this point, but you know
clearly.
clearly based on some other things. There's there's issues
of trust.
of trust between
this Council and the mayor's office and the citizenry and
the mayor's office.
the mayor's office and based on all of that. I
really think that this is the type of thing where we
should.
crawl before we walk or before we run or cut measure twice
and cut once and think that we should do this in a in.
that will
limit the size so we can find out some of the answers.
these questions in in in.
uh, you know before we before we decide to do it
Uh, you know, before we before we decide to do it in a
billion-dollar plus situation where we're paying it off.
billion-dollar plus situation where we're paying it off to
our grandkids are around in 2061. So that's my that's my
thinking on this but I do want to thank all the all the uh
members of the panel for their for their transpar.
members of the panel for their for their transparency and
all of this and and
uh
Uh, and that's that's all I have Madam chairwoman. All
right. Thank you Al.
right. Thank you Alderman. Although I will say that the um,
uh amount that we're looking at over a 5.
uh amount that we're looking at over a 5-year period does
allow us to uh,
allow us to uh assess how fast
we should
We should go or how slow we should go. We're all we're not.
going out for the 1 and a half billion.
going out for the 1 and a half billion dollars right all at
once. So, um, but I hear your point. Yeah, I won't litigate
that.
that and then we'll move on. Um,
Yes, Alderman laspata point of clarification in general
what?
What is what is the time Horizon for repayment of a general
obligation or sdsc Bond?
I'm sorry. Could you repeat the question? What what is the
general time Horizon for repayment?
general time Horizon for repayment of a general obligation
or sdsc Bond?
Uh
So what we're assuming in the model.
So what we're assuming in the model in is a 30-year
repayment. Um, uh, the model also assumes that we do it.
sort of level Debt Service, um and makes up a couple of
conservatives assumptions about rates. So we do think that
the when we fully issue the model when we fully issue the
1.25 billion dollars, they will be roughly 30 year.
maturities from um, the
point of issuance so no no I
Point of issuance so no. No, I I figured I was I was only
trying to get it this is
when we talk about things that we'll be paying off for 30
years. That's just essentially what it is to ISS.
years. That's just essentially what it is to issue a bond
is is my understanding.
is is my understanding, correct?
Okay. Thank you. Thank.
Okay, thank you. Thank you. It's not special. It is
typical. I appreciate it. Thank you. Chair Alderman V.
followed by Alderman Moore
Um, excuse me. I wanted to just acknowledge.
Um, excuse me. I wanted to just acknowledge Alderman mitts
and Silverstein who have joined us.
and Silverstein who have joined us for quorum.
Thank you.
Thank you madam chair. Thank you for bringing for these
panelists.
panelists to give their
input on the on the bond couple of questions
Input on the on the bond couple of questions. Um
Do we have the brake?
Do we have the breakdown of the 1.2 1.2 1.25 billion by
projects? I mean, I've heard a couple of times I've heard.
to help pencil deals out for housing
To help pencil deals out for housing. I've heard home
ownership.
Like how is this 1.25 going to be allocated?
Like how is this 1.25 going to be allocated and like to see
it. Do you guys have it by line item yet?
So we do.
So we do have uh allocations by project.
so we do have uh allocations by project type by by program,
um that we distributed uh in the bond book.
um that we distributed, uh in the bond book, uh last at the
last subject matter hearing and I believe was was
distributed again. Um we so
distributed again. Um, we so for example, and I'll give it
an example of the oh, um, there's a significant know don't
worry about if you gave it I'll look for it. Okay, um,
the um
kofo had mentioned the
Kofo had mentioned the 5 million dollar threshold. Can you
explain why the 5 million?
explain why the 5 million dollar threshold?
Yeah, so
yeah, so the recommendation that we heard from Kofa was
that there should be authorization for significant
projects.
projects, um looking at the types of projects that do and
DP
dpd. Do you know our biggest projects are um or our sort of
yeah. Yeah our biggest Investments.
yeah. Yeah. Our biggest Investments are generally
multi-family construction and re
multi-family construction and Rehabilitation through
low-income housing tax credit Bond.
low-income housing tax credit bonds would be matching that
filling in gaps. Um, those are definitely
over 5 million dollars the so that those will essentially
should all be captured by that. Um,
uh by that threshold on the dpd side, um the Community
Development Grant large category which represents again,
you know, significant Investments things like, um,
uh
You know.
you know major historic theater re uh rehabilitations and
and major projects like that. Similarly. Those will all be
captured.
captured, um by that, uh,
By that threshold, so the intent was to capture those.
significant projects while making sure that you know.
smaller projects like, you know roof and porch repair and
um, you know, and other other smaller projects that we just
want to, you know, there's lots and lots of them and we
just want to get them.
want to get them out based on the selection criteria that
we've included here. Um and based on the applications that
we get that those you know,
we get that those, you know can keep moving, uh as quickly
as we can make them. Thank you. Um, and then I had brought
up, uh,
with
um
uh with the Departments around the US do requirement.
uh with the Departments around the US DOL requirement
um for projects coming we're saying that
Um for projects coming we're saying that million dollars of
threshold that you want to pick because they're
significant. Um, I'd like to see some language in there
around usdol making sure that we are having um, excuse me.
all could you define what you just said?
all could you define what you just said because we're
taking notes, too. Yes. It's um the US Department US
Department of Labor
um
pre-apprentice apprenticeship requirements
Can you be more specific?
Can you be more specific about its relationship to this?
Bond ordinance? Well, we're talking these are
infrastructure project.
infrastructure projects that we're talking about. And so
what we're trying to do is make sure that as these projects
are being put forward that there are the opportunities for
Union.
unions to be a part of these projects making sure that as
we're in making these Investments That
we're in making these Investments that the that the final
product is something that has been um validated by the US
Department of Labor, uh through their apprenticeship
program and really having skilled work.
program and really having skilled workers that are actually
performing to work.
Okay.
Okay this
That I hear but I don't.
That I hear but I don't know if that's part of this
ordinance. It's probably something.
ordinance. It's probably something that we need to or you
need to pay more attention.
need to pay more attention to on the project selection
side.
because this is basically the funding port.
because this is basically the funding portion. It's not the
policy portion.
But they've identified 5 million as a threshold.
But they've identified 5 million as a threshold and so we
can tie that usdol to that anything above.
can tie that usdol to that anything above 5 million would
have that in there if that's not the if it's not the bond
language. I'm putting it on the record that like
either the Department of Housing and Department of planning
that be got you. Thank you.
Um
then the uh, I had asked um
when your colleagues in Department of planning, um around
all the projects for invest Southwest.
Where they're at green yellow red.
Have there been any clawbacks for projects that?
Have there been any clawbacks for projects that have not
come to fruition. So I'd like to see where all these
projects.
projects are at because I've supported every invest
Southwest.
Southwest project. I think over 2 billion dollars.
those
Those are the right Investments we need to do but I want to
find out where they're at. And um if the and
find out where the rat and um if the and if I heard the
commissioner from dpd correctly that using Bond funding in
order to help pencil the deal out like to find out why
potentially, okay.
potentially okay because
A lot a lot of these deals, um are have in my opinion.
A lot a lot of these deals, um are have in my opinion have
fallen by the wayside because the timing it just takes too
long to get things.
long to get things approved through the city and as we see
interest rates continue to rise or during that time,
interest rates continue to rise or during that time when
they were Rising,
increase the gap for the funding and so um, I like to see
where we're at with these projects.
Sure, I can.
Sure, I can actually provide an update through the chair.
right? All right commissioner vote right for dpd. I can
provide an update through the chair.
provide an update through the chair on the status of all of
our uh dpd.
our uh dpd projects the good news. I mentioned earlier 4 of
them.
them are slated to complete construction this year we
them are slated to complete construction this year. We have
a couple that are going to close on their RDA.
a couple that are going to close on their RDA, um within
the next month or so, um, we only have 1 Project right now
that has not made as much progress as we'd like to see and
it's really challenges outside of funding.
it's really challenges outside of funding, um site control
and other issues related to that.
and other issues related to that but overall I can provide
a really detailed update.
a really detailed update in terms of where we are what the
gaps are.
gaps are, um for some of the projects and if they're
stalled at the reasons that they're stalled I can submit it
through the chair. I appreciate that. Thank you
commissioner.
commissioner and then um my last
um
comment is around the the project locations, um having um
been someone who supported the capitol bill.
been someone who supported the capitol bill, you know, 3.7
billion.
Um and
um, and then having to beg for sidewalks
Um, and then having to beg for sidewalks, uh in in in a
ward gives me.
ward gives me pause because um, and and it's made me a
bigger.
bigger fan of line items so that way I know what I'm voting
on and where the money's going so that way I can talk to my
constituents and say I'm approving this Bond because
Our community or our part of town is receiving.
Our community or our part of town is receiving XYZ amount
and I think that that's what I'd like to see.
and I think that that's what I'd like to see spelled out a
little bit more um moving forward around.
little bit more, um moving forward around this project.
Thank you madam chair.
Thank you madam. Chair. Thank you Alderman, uh Alderman
Moore followed by Alderman Lee
Thank you chairman. I really want to thank you chairman for
your diligence and calling these um sub.
your diligence and calling these um subject matter hearings
so we can be very clear on this and I apprec.
so we can be very clear on this and I appreciate everyone
in attendance that can help us.
in attendance that can help us try to best understand this.
Um, I want to make sure I'm clear.
on um
Mr. Ferguson's, um
And maybe I don't I misunderstood.
And maybe I don't I misunderstood some I thought I heard
him say a lot of this won't be.
him say a lot of this won't be any new projects, but more
just existing.
just existing projects. Is that correct?
Me or who?
Me or whoever can clarify. Yeah, many of these are existing
programs that we're funding. So for example, okay, go
ahead. I'm sorry. I didn't mean to cut you off sure. So for
for this, uh Community Development Grant those are grants
that we're already fun.
that we're already funding now. We have a more sustainable
tool to fund.
tool to fund more, uh projects so some of these
tool to fund more, uh projects. So some of these allocation
buckets are not new programs.
buckets are not new programs for us. They're existing
programs. Um it
programs. Um, it just gives us another funding source, and
so let me correct I missed correctly spoke because we got a
I got to stop and we got to decipher project between
programs. So I want to make sure because there's a
difference I said he said,
projects he say a programs and you did speak programs So
within those programs.
are there
a lot of existing project
A lot of existing projects and then and and given this
amount.
amount what room is there for new projects? Oh sign.
amount what room is there for new projects? Oh significant
role I can spend what we don't have to be completely.
role I can spend what we don't have to be completely honest
with you Alderman. And so we've just been relying.
with you Alderman. And so we've just been relying on Tiff
and other tools that's available to us right now.
and other tools that's available to us right now to fund
projects to move forward. Um, I think that I could have a
pretty robust pipeline if I knew that this was moving
forward to support exists.
forward to support existing potential projects that are in
our Pipeline and certainly to attract new projects and so
by no means from dpd.
by no means From dpd's perspective if this is passed is the
money gone.
money gone because we have so many projects that are
relying on econ.
relying on economic development bonds. This is 1 tool.
powerful tool, but just 1 tool in the financial toolbox.
us.
Okay, and then commissioner?
Okay, and then commissioner castaner, could you respond to
the same question for?
the same question for housing projects? Yes, absolutely.
commissioner Gana for do um, it's the same as with dpd,
right? There are some projects that we have in the
that could possibly benefit from this if this is
passed and then there are there is going to be room.
projects. There's also the expansion of programs.
said, we already have things like down payment assistance.
programs that are severely limited. Um, just because we
don't have enough funding and these are things that we have
put into the um into the economic development Bond.
also work that we have
Done on SRO preservation before again using other monies
that we would like to continue to do with.
that we would like to continue to do with the develop with
the economic development Bond money.
Okay, and then going back.
Okay, and then going back to I'm sorry. What's your name?
I apologize Daniel hurts, Daniel.
I apologize Daniel hurts Daniel. Um the criteria you said
it was spelled out is it where it's not spelled out in the
ordinance. Is it because I'm not finding it. Where's the
criteria?
That you talked about spelled.
That you talked about spelled out. That's right Alderman.
It's uh spelled out so 2 2 things on that 1 is it's spelled
out.
out existing criteria are spelled out in a pamphlet.
was distributed to committee. Um happy to re
was distributed to committee, um happy to reshare that. Um,
and then the ordinance does require that um project.
selection criteria current project selection criteria.
selection criteria current project selection criteria as it
may be revised or um, new new ones created be posted
public.
publicly, uh, both on the department's website and on the
cities rules portal, so those will always be
cities rules portal. So those will always be public facing
and you know, uh,
and you know, uh open for for scrutiny.
but
so where in the it's also the criteria was given in a
pamphlet is probably somewhere.
pamphlet is probably somewhere here. I'm missing right now.
Um, thank you chair.
Um, thank you chairman.
and and and
And and and then in the ordinance, does it say somewhere in
the Orden?
the ordinance that this criteria has to be followed did I
miss that?
No, the ordinance of uh the bond.
No, the ordinance of uh, the bond ordinance does not speak
to this what the program.
to this what the program criteria are I think given
to this what the program criteria are. I think given um,
No, it it it doesn't speak to that. It simply says that
they must be posted publicly. Um, so okay. So, how do I
then
Commit to the criteria. Yeah you I posted it publicly. But
what's my how am I wed to that?
what's my how am I wed to that if it's not codified?
So as commissioner about right?
So as commissioner about right said these are programs that
um for the most part already.
um for the most part already exist and these are um the
criteria by which we have been to the Departments have been
operating and and doing project. That's not my question.
That's not my question what I'm what I'm trying to get at
though is um, historically departments have not codified
criteria in that way because they are undergo, you know
frequent.
frequent revisions. They undergo frequent, uh, Freedom we
can come back to the and we can come back to the council to
make those revisions.
make those revisions, correct.
historic historically that has not been
Historic historically that has not been how not going to
push it. It's just something to thought and we we we we
talk about that probably as an issue. Um,
talk about that probably as an issue, um as well because
that to me, that should be you got the pamphlet.
that to me that should be you got the pamphlet and I think
it should be in my opinion codified.
it should be in my opinion codified whatever that criteria
is that we're going to agree to should be cut off should be
codified that we use that criteria. I'll go to number. Um,
I'll go to number 3 so that I'm clear.
on the februari 202024, um handout, um page 8, so when we
talk about, um programs are these the I just want to be
clear are these the program?
clear are these the programs we're talking about Community
Development grants small business.
Development grants small business capacity building jobs.
Well, I think so when ultimate Vos was asking about the
programs. He said I may have it in my packet. Is this what?
we those the programs we're talking about. Correct? Those
are the commissioner boat ride dpd. Those are the
allocation buckets that we're talking.
allocation buckets that we're talking about. That was not
the program. Well, yes, but those are existing programs. We
just wanted to kind of show our budget if you will within
those existing Pro within those programs. I I got I just
want to be clear
because you said the allocation buckets are
Because you said the allocation buckets. Are these all the
programs are there some more programs? No.
programs are there some more programs know these are the
programs that we wish to use our portion of the economic
development bond to fund.
Okay.
um number 3
number 4
um
and this is getting to to um
um criteria, which I haven't I got to take take a look at
um City owned, um vacant lots of special when there's um
continuous and I just wrap my questions up with my example
because everybody knows 69th Street between Ashlan and Dam.
Damon is critical to me 23 years West Englewood.
Damon is critical to me 23 years West Englewood no
investment. So years of how a community has no had no
Investments going to be important to me. I
if that's part of the criteria. You don't have to answer
that. I'm going to have to read it and just get back, um to
the chair but
How much?
how much emphasis are we putting on?
How much emphasis are we putting on? Um city-owned vacant
land that we have?
land that we have and
on these projects are we going to
On these projects. Are we going to be RFP these items?
On these projects. Are we going to be RFP these items or
are we just looking for developers and if they want to
build?
build then they come up with a um development plan and then
we meet so that's
the gist of my all of my questions sure, so that is
The gist of my all of my questions sure. So that is actually
in the criteria it depend.
in the criteria. It depends on the program and so in some
cases there's a open.
cases there's a open round where you can apply as a
developer as a community stakeholder for a certain funding.
round if we're talking about, you know, the missing middle
straight.
strategy that does address some of the vacant land and
really putting those vacant Lots back in productive use for
housing purposes. Depending on the program determines what
the criteria is. Um, and that detail is in the I mean I can
go bucket By Buck.
go bucket by bucket, but the detail is in the actual Bond
book and that criteria booklet that we provide but to your
earlier question it absolutely is emphasis.
earlier question it absolutely is emphasis on some of those
neighborhoods specifically the neighborhoods that have
lot of vacant land there is emphasis in terms of prior.
lot of vacant land there is emphasis in terms of priority
and Awards in those neighborhoods. So the west and the
southwest side of Chicago that are exper.
southwest side of Chicago that are experiencing higher
levels of vacancies than anyone anywhere.
levels of vacancies than anyone anywhere else in the city.
And so when we think about the scoring,
Do have a higher weight if you will.
Do have a higher weight if you will for some of those, uh
Community areas. Thank you. Thank you chairman if I could
just add 1.
just add 1 Point commissioner Gaston at the oh, um,
the bond is just 1 tool in the tool box. We've also looked
at other things specifically in regards to vac.
including we've applied for a 10 million dollar.
including we've applied for a 10 million dollar, uh Grant
from HUD specific.
10 million, um from HUD in order to look at vacant land. Um,
and because we know what an ISS
and because we know what an issue this is, excuse me
commissioner Miss Leigh
Excuse Me Miss Jackson, I didn't hear you.
okay, well this
Okay. Well this hearing is not.
If you want to send her.
If you want to send her a note about where the empty lots
are, that's fine, but I'm asking.
are, that's fine, but I'm asking you if you're going to be
on your phone and making noise. Please take it outside.
Thank you.
You're welcome.
Uh all the men more. Are you finished with your questions
so we can have all the men I mean commissioner.
so we can have all the men. I mean commissioner Castaneda.
Yeah. I it was just saying that we applied for a ten
million dollar Grant from HUD specifically to help us look
at uh vacant land, um among other things that are in the
grand. So, um again the this
grand. So, um again, the this bond is 1 tool in the tool
box and we are actively looking for and applying for and
trying to activate other tools to address all of the issues
that we see
and I
And I was dumb but when you say 10 million dollars to look
at V.
at vacant land, what does that mean? Uh the grand um, and
Daniel can probably speak to some of the specifics on this
but the grant is meant to help us. Um,
but the grant is meant to help us, um, get some folks on
board to help do things like clear encumbrances and make
sure that the city-owned land um is ready to go for things
like INF.
like infill housing for um,
Looking at, you know are some of these Lots big enough for
rfps and things like that.
Okay. Thank you chair.
Okay. Thank you chairman.
Thank you Alderman Moore alderman.
Thank you Alderman Moore Alderman Lee followed by alderman
laspada.
Thank you madam. Chair. Um and thank you for organizing
this second hearing because I know this is a this is a
really important issue and I appreciate uh chair that you
you brought.
you brought everybody back together to answer some more
questions and for more convers.
questions and for more conversation to take place and thank
you to all of those of you who are in the box today to hear
offering testimony and um answering questions and with that
I'll dig into mine here.
that I'll dig into mine here. Um, I'll start with 1 of the
things that I asked for through the chair. The last time
was uh Tif funding for Chicago.
was uh, Tif funding for Chicago Park District and CPS. I
think 1 of the concerns that we have. Um,
think 1 of the concerns that we have um is what is the
impact going to be of this?
impact going to be of this Bond um longer term on how
projects are funded for the park district in Chicago Public
Schools.
Public Schools. Um, so since January 2019, the council's
authorized the use of 110.6 million dollars into funds for
improvements in the park district.
improvements in the Park District. Um, uh at Park District
facility since 2019.
facility since 2019 over that same period of time 25
million into funds have been approved, um for
improvements on CPS facilities do we know what the our our
tips the main source of funding for Capital impro
tips the main source of funding for Capital Improvements at
our park districts, and I know no 1's here. So perhaps
through the chair if we can get um, how much are spent on.
capital projects for the same period 2019 to 202.
capital projects for the same period 2019 to 2024. That
would give me a little bit of a better sense of how much uh
the park district relies on the Tif funding.
uh, the park district relies on the Tif funding, um for
Park improvements 201.
Park improvements 2019 to 2024. Yep, The Last 5 Years.
And I do not believe that at this point the what?
And I do not believe that at this point the what what's
proposed in the bond would be eligible for?
proposed in the bond would be eligible for Park District
use, is that correct? That's correct. Thank you for
clarifying that. Um,
I think we know that we've got a an over.
I think we know that we've got a an over Reliance on uh on
tiffs. I think this is pretty much Undisputed. But um, they
haven't just been uh, they haven't just been used on
funding for housing.
funding for housing, uh and development CPS and park
districts. Uh, utilize These funds uh in some
districts, uh, utilize These funds, uh, in some cases the
library does too. Um, I just want to
Ask about the the information that was provided through.
ask about the the information that was provided through the
chair. I think Alderman Lopez asked for this information.
chair. I think Alderman Lopez asked for this information as
to um, what the uh, what the expected?
to um, what the uh, what the expected Revenue return to the
various taxing bodies was going to be um, so if we looked
at um, the information that I asked for in terms of Tiff
spent over the last 5 years at 110 million, um, and what
the what is anticipated to be returned to the park district
in year.
9 UM that was something that threw the chair alderman.
9 UM that was something that threw the chair Alderman Lopez
requested. So I I just need a little bit of clarification.
requested. So I I just need a little bit of clarification
that reads to me that in in.
that reads to me that in in the taxing year 2029 the park
district.
district is expected to receive back or an additional. Um
district is expected to receive back or an additional um
tax revenue 12845.
tax revenue 12845297. I just want to make sure I'm reading
this correctly before.
this correctly before I ask the question.
Give me a moment to
just double check. Oh, was it through the chair for
Alderman Lope?
Alderman Lopez? Yeah it may
yeah, I have it you're
Yeah, I have it you're saying in 2029.
No.
No, the 1284, right?
yeah, so that's the um additional annual taxes simply from
the expiration of those tiffs simply from the expiration.
those tips. Okay? Yeah, that's just 1 point in time. Um,
and then for CPS, um, we've Over The Last 5 Years spent
256,000, uh, sorry 256 million plus dollars.
256,000. Sorry 256 million plus dollars in the same. Uh,
the same number for CPS would be 149992 in 2029, correct?
Yes. That's correct. Okay, uh, it just seems to me the park
District's going to be the most hurt in this process.
District's going to be the most hurt in this process if if
you know, we were to maintain um, this the same level of
funding. I'm I'm concerned that we're not going to have
enough funding to make the park improvements that I know
every single 1 of us has things that are waiting. Um, and
that, you know CPS appears to do a little bit better. Um,
oh over the the same period of time. Um, I I think they
make out a lot better than the park district does and I
think that you know, it's it's notable to to look at. Um,
what the impacts going to be on the other taxing bodies.
Um, I
I'm wondering how and
how are we going to ensure that neighborhoods who have
relied?
relied on tiffs to fund Capital Investments on Parks?
CPS infrastructure, uh remain adequately funded.
Yeah, so I can speak a little bit to that. I think um CPS in
particular.
in particular since they do get um,
over half of the revenue from EXP
over half of the revenue from expiring tiffs, I think um
You know, they they will be seeing a significant.
You know, they they will be seeing a significant amount of
additional Revenue. Um
Probably, you know, I we we can get the number.
probably, you know, I we we can get the number through the
chair of what what portion of
Spending is CPS. Um, but I believe it's less than 55%
um in terms of the
Um in terms of the um the parks, you know, I would make a
couple points.
couple points, you know 1 of them is um, they do have these
additional uh funds coming in it's you know, cumulative
through 2029 about 50 dollars, but um, you know the the
tiffs that will still exist. Um, as you know, Alderman
economy was was pointing at um, you know the tips that
they'll do still exist can also still contribute to those
projects. Um, that would be that 1 thing. So it's not that
they would be limit.
they would be limited to only um spending this sort.
they would be limited to only um spending this sort of uh
incremental revenue from expiring tiffs. Um, you know
Council does,
Council does also have the option. I'll just say of of the
funds that are coming back to the city, you know, our
projections are um that the revenue or the the
projections are um that the revenue or the The Debt Service
on these bonds will not take up all or in most years even
most of um,
of that, uh of that returning re
of that, uh of that returning Revenue, um,
and then finally I will um
Uh, and finally, I'll just add that. You know, I know that
I believe I believe some of the um, Capital Improvement
plan dollars do go into um some Park District, uh propert,
properties. Um, and so that's another potential. Um,
another potential source
Thanks.
Thanks for that Daniel. Um
Yeah.
yeah it I think CPS is going to be okay in all of
Yeah it I think CPS is going to be okay in all of this. Um,
and I know that we will still continue to have exist.
tiffs that can still be tapped for those things. I'm also
just sort of, you know, noting that with the additional
with 55% of the return of the uh of the increment going
back to um, CPS, I would
back to um, CPS. I would expect to see maybe less requests
to the existing tiffs.
to the existing tiffs, um for CPS funded projects, uh, and
that would allow those to those Tif funds to be used in
other.
other ways in those uh, those districts. Um,
let's go to
Let's go to um.
TIF district EXT
TIF district extensions. Um
So Alderman Conway had it through the chair requests
around?
the cumulative reduction in the funding of Tif districts
that are currently scheduled.
that are currently scheduled to expire on or before, uh,
December 31st. 2029, uh is about 1.5 billion.
be noted that the financial model shows the cumulative.
reduction to be 1.09 billion, um this
reduction to be 1.09 billion. Um, this discrepancy reflects
the fact that the model assumes 8 taxing.
Excuse me. Tif districts to be extended.
Excuse me. Tif districts to be extended and have not been
approved by city council at this point for the purposes of
stress. Testing the fiscal Capac.
stress testing the fiscal capacity. Um, do we know which of
the 8 Tif districts? Um are
the 8 Tif districts um are to be extended
Or our proposed for extension at this point.
I can provide that through the chair, but I do just want to
emphasize the those 8 test districts were not selected.
because those are proposed for extension. It was simply a
modelling choice to try to make the model robust.
modelling choice to try to make the model robust to the
fact that we anticipate there will be some.
fact that we anticipate there will be some extensions in
the future. So that's not necessarily a a
the future. So that's not necessarily A a. Um, okay, it's
not necessarily A A recommend
not necessarily A a recommendation for extension. You you
pick them that's exactly for the purpose of the thing. Um,
so if you can um through the chair,
so if you can um through the chair with that same
information, just give us a little insight.
information just give us a little insight as to how you
pick the 8. Um,
yes.
and and those are
And and those are approved by the city council, correct?
Yes. Yes. Yes a point.
Yes. Yes. Yes a point of clarification Alderman Mitchell
already picked the 8 to extend it. So could you could you
make sure?
make sure you tell us exactly he just said that they
didn't.
make sure you tell us exactly he just said that they didn't
pick them yet that they use that.
pick them yet that they use that to do to test the model
that they were thinking of.
that they were thinking of that's that's correct. So so
those have not been picked or proposed or anything for the
ones that are actually being extended. The only reason that
that was included is so we could show that even if some
tiffs are extended.
tiffs are extended the math still works essentially, but we
we chose those not because
they're going to be proposed as the ones that
They're going to be proposed as the ones that are actually
extended. Okay, because when she said do the
said, okay?
Thank you for the.
Thank you for the clarification. I I have
1 more little point on this subject and I'll move on from
that. Um, do we anticipate the expansion?
that. Um, do we anticipate the expansion of other Tif
districts over the next 4 years are is DP?
districts over the next 4 years are is dpd having
conversations already, um about expanding certain tips. I
mean, obviously that's still an option. No 1's.
about eliminating tips completely. We've said that over and
over but um, if someone could comment on that or if we have
information that we could provide to through the chair.
I'm just trying to get a sense of as we're shrinking tips.
Are there still plans to expand and just trying to
understand the landscape see our commissioner boat, right?
Yes, we are.
Yes. We are still exploring the extension and expansion of
some I can give an example of 1 that they'll send Tiff
which is extended for 12 years and we're working.
which is extended for 12 years, and we're working um with
the community to explore the opportunity to expand beyond
the industrial and so I think that's a really great example
of you know, it's not a either or in some cases. It's a
both and and when and where appropriate we want to think
about expansions when and where appropriate we
expansions and extensions through the chair? Yes. Thank
you. Okay. Thank you. Thank you for helping me with that.
Um
I would like to um talk a little bit about the
organizations that have been briefed on the bond ISS.
organizations that have been briefed on the bond issue, uh
Bond ordinance already. I know that there was an
exhaustive.
list that was, you know, several pages long. Um, were there
considerations towards ensuring that the organization's
brief were representative of the city at Large.
For whoever can answer that question.
You know, I'll speak for um.
Yeah, certainly. We tried to get.
Yeah, certainly. We tried to get a good cross-section of
the city in different. Um, you know, folks who worked in
different areas of the city with different backgrounds.
different areas of the city with different backgrounds and
with um,
uh different sort of points of view and and and uh focuses
of work, so yes in short
Um, and what was the level of Engagement?
Um, and what was the level of Engagement with the
organizations? Was it just a presentation of a
organizations was it just a presentation of a of a deck and
people had an opportunity to do a little Q&A?
people had an opportunity to do a little Q&A or was there
more beyond that?
Um it varied there were some folks that we did.
Um it varied there were some folks that we did, um more
intensive engagement around. Um,
intensive engagement around um, or who um, you know, we had
sort of further back and forth conversations.
sort of further back and forth conversations, um others it
was you know, hey, we're inviting you to
receive a briefing on this and
Receive a briefing on this and ask questions and give us
feedback. So it varied.
feedback. So it varied by by the organization. Okay, um
feedback. So it varied by by the organization. Okay. Um, I
I gotta say I looked at the list and it's a huge long list,
and I'm glad that you got to so many different groups. Um,
I was really disappointed not to see more Asian-American
representation in this. Um, there was 1 organization. It
was the Chinese Mutual Aid Association, um, that is in
uptown. Obviously, they serve lots of divert.
uptown. Obviously, they serve lots of diverse communities.
Um, I certainly would have expected that the Chinatown
Chamber of Commerce the Coalition for a better Chinese
American
chinese-american community and the chinese-american service
League.
league is 1 of our largest, uh agencies. Um,
league is 1 of our largest, uh agencies, um in the midwest
would have been uh engaged in this convers.
would have been uh engaged in this conversation as well.
Um, I I note this as a as also a broader comment about
representation, um, and who's included I'm going to get to
my next question, um shortly, which I think helps to
elucidate part of um, what Alderman Taylor was talking
about earlier, too.
Um, I would ask that um moving forward you engage those.
us that are on the council if you don't know which
organizations to go to please ask us um, because I I would
rather not be in a situation to be in a public forum and
then call this out but it is an ongoing issue for my
community. Um, so I would expect and I hope everybody
listening, um will also reach out to um, myself and
Alderman manah hoppenworth, um when it comes to
Alderman manah hoppenworth, um, when it comes to ensuring
that we we do um equit
that we we do, um, equitably go across all of the the
groups that need to be represented in these conversations.
uh Alderman lie, I
Uh Alderman Lee I would even go so far to ask commissioner.
Boatright. I know that Tim is out of on vacation.
Boatright. I know that Tim is out of on vacation, but maybe
there's someone on your staff.
there's someone on your staff who between now and when we
meet next week could uh talk to some representatives of
your community we
your community. We will be happy to absolutely. Thank you.
Thank you, um get my computer back on here. Um,
I'm gonna skip here. Okay, so on the question of equity, um
um, I asked last time about um, the South and West Side
priority.
priority areas for the Community Development grants. Um,
and thank you for the for providing the information.
I'm looking at uh, the the information that was sent back to
us.
to us. Um
the areas in the South and Southwest priority areas were
were not uh,
I'm sorry.
I'm sorry, they they didn't seem prioritized necessar.
um in the 2022 to 2023 funding.
um in the 2022 to 2023 funding rounds, um as prioritized so
my I think my question really is um, you know,
how does a
How does a designation as a priority area? Um
how does a designation as a priority area? Um compared to
funding that's I think provided Citywide because obviously
a priority area doesn't mean that.
a priority area doesn't mean that you're spending 100% of
the funding, um in in 1 in in the priority areas. Um, I was
I was a little struck by when I saw the map, um looking at,
you know, the priority areas are all in the South and
Southwest sides, you know, it's a solid pink area that
down, um the city and then when I look at the funding
it there seems to be just a little bit of a disconnect.
between um, where the majority of the funds are being spent
versus what are categorized as prior.
versus what are categorized as priority areas. Um, can you
talk a little bit about how some of those funding decisions
are made? Um, because that I'll give you an example. Um,
Uh, let's see funding around. Uh,
so non-priority community
so non-priority Community areas received up to 13 million
dollars in CDG grants.
dollars in CDG grants while communities and areas like West
Englewood and Archer Heights, for example
Englewood and Archer Heights. For example, we're we're
receiving no funding at all last year, so
receiving no funding at all last year. So can we talk about
how things are prioritized and what that looks like and if
there's a rubric um for cual
there's a rubric um for qualification for uh CDG with this
Bond ordinance. Yeah.
Yeah, we do. We actually have a rubric and we can actually
share the rubric that we're currently using through.
chair. I think I want to make 2 comments. I think there's
um.
the applications received
The applications received and where they're coming from I
think is 1 very important.
think is 1 very important component that we should
recognize and the second 1.
recognize and the second 1 you speak up a little bit sure.
I just wanted to kind of bifurcate the question if you will
to where are the applications coming from? And then where
are we awarding? And then I think it would.
are we awarding? And then I think it would be also
important we can share we can provide that.
important we can share we can provide that um by War just
to kind of show how many applications we've received from
Wards on the south and west side.
Wards on the south and west side and what projects have
actually been awarded in those same areas. I can also
provide the criteria.
provide the criteria, um and our rubric for a scoring these
projects, but they're absolutely is a portion of the rubric
that gives heavier weight to projects and disinvested
neighborhoods because we want to be really thoughtful and
Equitable about the distribution and the allocation of
grant dollars so I can provide that through the chair.
more clarity with the backup for where the grants have.
from and which ones have actually been awarded.
great. And then also look and I get right you you
award things to communities that don't
Apply for these things. So I think also it it behooves us to
take a look at how we Market these things and how we're
helping to bring these.
helping to bring these communities along where there are
needs and maybe there's just simply not the capacity within
the community, um to get those things.
the community, um to get those things done. I agree with
that 100% I think.
that 100% I think there's an opportunity to provide.
technical assistance. I think there's something to be said
about the power of pre.
about the power of pre-development Grants. We've seen some
great applications that aren't quite ready for funding and
I think it just speaks to the need for more pre-development
dollars to get a project from a concept.
dollars to get a project from a concept to an actual
project in areas that we can be support.
project in areas that we can be supportive as well as other
cdfis that are already doing this important.
cdfis that are already doing this important work, but I
think from an Outreach standpoint was
think from an Outreach standpoint with with in our control
we can continue to partner with our aldermen and really
partner.
partner with those local Chambers and those other partners
that are forward facing with those businesses. That would
benefit.
benefit from some of the grant dollars that we provide
sounds great. Thank you very much.
sounds great. Thank you very much commissioner chairman. I
have just 2 more questions. Is it okay if I keep going?
Okay, um,
Has there been any convers?
has there been any conversation with the Cook County
assessor's office regarding this?
assessor's office regarding this Bond ordinance? And I know
we talked a little bit about um, what the new assessments
going to?
going to be. Um, I'm just wondering how we've Incorporated.
the possible upcoming reassessment of the property taxes.
and the potential effects on property values into our
calcul.
calculations about fiscal returns.
Yeah, thanks for that question. So, um
I have had um some uh,
uh some
Uh some conversations with um folks in the the Kokanee
assess.
assessor's office about some of those concerns. Um,
and um, you know, we we expressed uh some
And um, you know, we we expressed uh, some of what of what
I said previously around, you know looking.
I said previously around, you know, looking at the timeline
of when which tiffs expire, um, you know, the downtown
tiffs that are you know likely to be most heavy hit if
there is a big reduction in um,
in assess
In assessed value are are much further out. And so, you
know if they're not expiring.
know if they're not expiring until 2032 or 34, you know,
there's sort.
there's sort of more ambiguity there about what things will
look like at that point.
Um, I think some of the the CBD.
Um, I think some of the the CBD tips Central business
district tiffs that are scheduled to expire in the in the
near term future in the West.
near term future in the West Loop where actually values
have been more robust than the office.
have been more robust than the office Market is much
stronger, um, but in addition to that, um,
You know.
you know, that's where on the 1 hand, you know all the the
the conservative, uh, estimates and projections.
the conservative, uh, estimates and projections and the
robustness checks to things like extending fifth districts,
and and that sort of thing comes in.
and and that sort of thing comes in that we're you know, we
do feel like uh, there's quite a bit of of cushion built
in. Um, this is not
um, this is not something where The Debt Service is like,
scraping the the top of the the revenue projections the
whole time. Um, and then on the other hand the the safety
Breaks that have been Incorporated.
Breaks that have been Incorporated in terms of the updated
modeling.
modeling, um, you know Council approval for major projects,
right and we wouldn't
right? And we wouldn't um based on, you know, cfo's
practice my understanding, you know, likely wouldn't sell
projects unless uh or sell bonds.
projects unless uh or sell bonds for projects unless you
know, there was anticipated.
know, there was anticipated or actual Council approval. Um,
and then you know,
and then, you know cfo's ability to simply not just choose
not to sell the bonds or slow down the structure or change
the um change the structure in some way to respond to that.
Okay, thank you for that. Um and then my final question, uh
is something that Kofa is and this is the issue of the 5
million dollar.
million dollar threshold. Can we talk about how the
threshold?
threshold of 5 million was determined and like what's the
Um from existing dpd programs. Um
um from existing dpd programs, um, that will get new life
under this Bond how many grants? Um, how many grants have
been dispersed, you know above 5 million at this point. I'm
just trying to get some context for the 5 million dollar
figure.
So I can talk in in.
so I can talk in in general again the the
the threshold
The threshold was chosen I think with an eye to
particularly.
particularly multi-family projects from dpd or excuse me
from do um, so our, you know new construction.
from do um, so our, you know new construction and um rehab
projects through litc. Um, those are many many multi.
multi-million dollar projects and so that you know, that
will most certainly always cross that threshold. Um, those
are you know, major project.
are you know, major projects that we do and on the dpd side
the CDG.
the CDG large grants, um as to how many of those
the CDG large grants, um, as to how many of those exactly
that I don't have in front of me.
of me
Of me, um, but we can get that to you through you can
provide that through the chair. That would be great. Thank
you. And um you could uh tag those by
you. And um, you could uh tag those by Ward. I think my
colleagues and I would appreciate that. That's all I've got
Madam chair. Thank you. Thank you alderman.
um Alderman Vasquez
followed by Alderman sicha Lopez and we're good. Thank you
madam chair.
madam, chair, um 1 I want to uh acknowledge and appreciate.
the changes in the substitute that answers some of the
concerns.
concerns that I had and brought up at the last hearing. I
just want to follow up.
just want to follow up on some of them give and what I've
seen in the substitute,
so, um
and
In section. Was it 219?
Okay, uh page 21.
On Section D. It says about uh, it refers to an authorized
officer reporting the city council. I was with respect to
expenditure of the proceeds and a series of bonds.
um
Um my so so my question is related to we're doing these
Bond issuances and does some reporting out to the council.
Um,
I'm curious, uh 2 things.
Uh, what is that reporting look like, right?
Uh, what is that reporting look like? Alright, so it's a
reporting Council. So is that like an email to council is
that?
that a hearing at the finance committee? Just trying to get
a sense of what?
a sense of what the intent uh, and how you all view it.
Sorry, can you oh you're looking at paragraph B?
Sorry, can you oh you're looking at paragraph B. Yeah.
Yeah, uh, I think I could take a step by answering that.
This is Brennan White.
this is Brennan white with the Department of Finance. Um, I
think what we're anticipating is that the basic form of the
financial.
financial model, uh, Excel file that we sent around.
financial model, uh, Excel file that we sent around we
would um,
uh both our
Uh, both our office the cfo's office and dpd would just
sort of update.
sort of update our respective parts of that model. So, um
as The Debt Service projections,
as The Debt Service projections in their become actual and
be changed those that service projections, you'll I think
it's anticipated will be substantially in the same form as
that financial model as previously.
that financial model as previously um sent around just so
it's easier to track changes and see how things are
developing as a project goes along. Okay.
developing as a project goes along. Okay, so if I
understand it correctly, it'd be like, hey we send you guys
kind of
the spreadsheet for lack
The spreadsheet for lack of a better term it would be
updated. We received that kind of like an email form.
Uh, I think we would provide.
Uh, I think we would provide it to chairwoman, right?
provided through the chair.
provided through the chair and an email form. Okay, and
then I guess a follow-up.
then I guess a follow-up on that is um
I'm less.
I'm I'm less familiar as to like what regular frequency of
that.
that could or should look like so it's like annually by
annually why just an understanding? So yeah.
so I'll um
I'll just add uh Alderman that I would also look.
I'll just add uh Alderman that I would also look at
paragraph F, which is a new paragraph and the substitute.
which speaks to uh, sorry page 2.
which speaks to uh, sorry page 22, um paragraph F speaks to
quarter.
quarterly reports being required from uh, the Department of
Housing and planning and devel.
Housing and planning and development, uh with respect to
expenditures award.
expenditures Awards allocations.
um
And those it does require to be posted to the city's
website. Um, and I
uh
yeah, and includes, you know reports to gotcha, so
Yeah, and includes, you know reports to gotcha. So yeah, my
actually next question was about that. So I saw the part.
do quarterly. I just didn't know if the language.
do quarterly. I just didn't know if the language specifies
that like dpd and do quarterly.
that like dpd and do quarterly the bond piece quarterly
because it it appears.
because it it appears to me in reading it. Yeah F has
quarterly but the other ones don't.
I can't if i
I can't if I could just chime in dpd and DLH quarterly
reporting.
reporting in finance. You guys want to chime in on your
Cadence? Yeah, so our reporting the cfo's.
Cadence? Yeah, so our reporting the cfo's office. Again,
this is Brandon white Department of Finance.
this is Brandon white Department of Finance, um will be
annual because that's part.
annual because that's partially because the um,
the new assessed values that we're using to model the
revenues. Those are only updated annually so that will
update the revenue.
update the revenue side. And then we're also anticipating
to do annual ISS.
to do annual issuances. So we're going to plan to do annual
reporting around that so and functionally be around.
updating the eaves that will sort of change.
updating the eaves that will sort of change how we're
modeling The Debt Service in response to that. Okay, I so
when I appreciate the background, like I said if somebody
learning it glad glad to know that um, I think
really specificity on the if it is quarterly for for 2
different things, right? So 1 is about the series of bonds
and assets quarterly great.
and assets quarterly great, uh G speaks to a lot of more
specificity about the guidelines and policy are but it
doesn't necessarily say that we'll be reporting out
quarterly in that piece. I know some of it is just
establishing the policy.
establishing the policy, but my question is 1 I like the 1
through 13 what's not included here is
projected outcomes compared to actual outcomes so 1
Projected outcomes compared to actual outcomes so 1 I I want
to know about the projects all the guidelines.
want to know about the projects all the guidelines but
something that should be articulated is
based
Based on the funds. We want to put towards this project we
anticipate.
anticipate this is going to be the return on it and then
some reporting when it's actually done as so here's what's
actually happened.
actually happened, uh in relation to what we anticipated
was going to happen.
because I don't I don't think we do that even now but I
think we it would be important.
Um, this is Brandon white with the Department of Finance.
Um
um section 219 g does provide sort of updates for once the
project.
project has been funded, uh a year after issu.
project has been funded, uh a year after issuance and when
they're when they're done we'll the do
they're when they're done, we'll the dough and will be
providing an update.
And then this is norik Department of Finance section. F
actually does lay out that it's going to be quarterly
reporting.
reporting by day. I'm sorry. I can't even hear you or
understand you from okay. Can you hear me now section f
Thank you. Do you identify yourself for the record? Yes.
This is norik Department of Finance. Um 219 section F
actually does say it's going to be quarterly reporting.
Okay, so I guess the for clarity and this is I don't know
if this is
if it's a law does that f b f f part speak to?
if it's a law does that f b f f part speak to G as well?
Or do you need to specify it for G?
or do you need to specify it for G also because 1 is a
guess it is both departments, but I just wanted Clarity on.
language because what I what I'm concerned about is you
come back later and go well, you know, we did this part
this accordingly, but this actually doesn't say that in the
language. That's my concern.
language. That's my concern which is a technicality.
Uh, okay. Um
Alderman Martin, sorry, go ahead. Just yeah, I think the
Departments would be.
Departments would be would be open to to have a
conversation. Okay?
Yeah if I can help.
question, it's Jim McDonald Department of
Question, it's Jim McDonald Department of managing Deputy
Corporation Council Department of Law. So you have in
section.
section 219 several different paragraphs about reporting.
You have indeed the 1 you referred to?
You have indeed the 1 you referred to which is standard for
the bond ordinances that.
the bond ordinances that the council has passed in Prior
years and annual reporting requirement by the CFO to the
Council of What bond proceeds have been?
Council of What bond proceeds have been spent on in the
prior calendar year?
That's still in here as but we've added.
That's still in here as but we've added to it for this
ordinance.
in response to concerns and from the altar then
and and others Edition
and and others additional reporting requirements. So as or
has been pointed out.
paragraph f
Paragraph f is quarterly reporting.
Paragraph f is quarterly reporting by Doh and dpd.
Paragraph f is quarterly reporting by Doh and dpd of what's
been either allocated awarded.
been either allocated awarded or spent in the second prior
quarter.
and you
And you and you're looking at G.
which is
Which is a requirement about having a portal.
And Reporting on the portal what?
And Reporting on the portal what the projects are that
actually are being funded.
And that is not tied to the reports. What G is saying is
within a year after.
within a year after the project is placed in service or
certificate of completion has been done.
The reporting Department must post on the portal.
The reporting Department must post on the portal all those
details about that particular.
details about that particular project, so it's not going to
tie.
tie necessarily to any particular annual quarter.
tie necessarily to any particular annual quarterly report
project by project. It's going to be when that project is
finished.
There will be interim reporting through spending money on
an interim basis on.
an interim basis on a project that will feed into the
annual.
annual or the quarterly reports the final reporting.
requirement that's been added to 219.
requirement that's been added to 219 is paragraph I and
that's what uh, Brendan White was referring to when saying
the model.
Gets up.
Gets updated annually with respect to the expiring tips.
Gets updated annually with respect to the expiring tips and
the freed up Revenue.
And so it made sense.
and so it made sense to make that an annual report because
during a year there is no.
during a year there is no new information about
the expired Tiff Revenue
the expired Tiff revenue or what's The Debt Service?
so that
So that was that's been structured as an annual report.
Um, all of those things are great. I think the concern I
have with my experience in anything that has to do with a
portal here at the city is it doesn't actually move
quickly. It doesn't get refreshed regularly.
quickly. It doesn't get refreshed regularly and that
information isn't accurate sometimes.
information isn't accurate sometimes and so, uh, I I now
have a better understanding about the portal not
necessarily being quarterly I get why but I would want and
this may or may not this I don't think is necessarily the
language I want in on whatever team is developing the
dashboards and getting that information because our
experience even with 311 has not been the easiest and so
having DTI at the table having Alters who want to get
details on this because we believe it's in the public
interest. Um, that would be part of what would help.
interest. Um, that would be part of what would help me feel
more comfortable and support which I think is doable.
just wanted to like name it. Yeah. Absolutely. I mean and
this is an instance where um, you know, the
essentially what this would be built on as
understanding. And so I think we can absolutely
got is about the proxies and designes for like decision
making
decision-making signing off on things. Obviously. It makes
sense if it's commissioned.
sense if it's Commissioners and folks who like have been
appointed by the council.
appointed by the council and obviously a mayor as an
executive has every right to make decisions on who those
parties are going to be as well. What I'm trying to figure
out is how that's communicated to the council for
transparency purposes as to who some of the folks are.
transparency purposes as to who some of the folks are who
we who may not be commissioners.
we who may not be Commissioners and other folks and so can
anyone speak to that part.
I'm not clear on.
I'm not clear on you question Alderman. Can you like?
I'm not clear on you question Alderman. Can you like maybe?
Yeah, I just like a 2-year-old. Yeah. Okay. I'll try to
clarify this in a way that that I'm trying to be.
clarify this in a way that that I'm trying to be mindful
how I'm saying it so I was in we were in transportation.
yesterday and there was someone who is recommended to the
board of Transportation who I think is going to be great as
far as a community Builder, but doesn't really have a lot
of Transportation experience and are going to be in
decision-making roles. So all I'm trying to find out is is
when people are being appointed by the mayor or be like
chosen as these folks just that we know who they are.
Well, that's why they come before you for approval. But is
that the case?
that the case for these proxies and designes I guess is my
question.
proxies and Design
proxies and designates for who makes the selections
Proxies and designates for who makes the selections on
who's doing the bond deals? I'm not clear on.
who's doing the bond deals. I'm not clear on your on your
question because everyone involved in a bond deal comes
before you.
For approval. Hey if that
For approval. Hey, if if that if that's the case great. I
think my question is that is I don't know if that is the
case.
case for all the folks if that is totally, okay.
case for all the folks if that is totally okay, but also
recognized for an executive as any mayor. Sometimes they
got to move quickly and come before the council is not the
quick.
quickest process. So I just didn't know.
Well bond.
Well bond deals come before the finance committee.
Well bond deals come before the finance committee for
approval. They cannot be just willy-nilly done by a
department. There's a check and balances which uh comes
before this body for approval. Okay, that that's fine. Um,
that's that's all I've got. I think the last thing that is
a recommendation that either could be language or not is
more related to what happens when tiffs expire and it comes
to the general fund.
Right you get a large INF?
Right, you get a large influx of money to this Council.
I love my colleagues to death don't necessarily trust that
we're going to be paying off.
we're going to be paying off pension debt with that money
and that it becomes more like Christmas in whatever time
the money shows up.
the money shows up that although there's policies related
to how we pay off pens.
to how we pay off pension debt. There aren't things that
are Cod.
are codified and so I would say for CFO and we had this
conversation before talking us through what we can and
should be codifying so it's not just a policy.
should be codifying so it's not just a policy where someone
can change their mind and we lock in what we're paying.
on these debts because to ottoman con some of our
colleagues it's not just about us we got kids.
grandkids that are living in this city. We know that the
deficits get bigger year-over-year and if we're not doing
our due diligence to pay off these debts, we may feel like
we're doing something investing on the front end, but it's
going to be a larger problem for our city.
going to be a larger problem for our city and so a a
recommendation or commitment from the CFO or any team of
what part of debt obligation we can Cod.
what part of debt obligation we can codify.
Obviously there's a lot of legal there.
Obviously there's a lot of legal there, but I just I love
like I said love my colleagues said that.
like I said love my colleagues said that it doesn't mean
I'm a trust everybody here to pay off our bills sometimes.
we have issues that are different households paying off our
credit cards.
credit cards expecting the city to be really good at it
isn't something I'm going to trust I'd like to have that
codified if possible.
That's fair. I hope yeah, so um, this is Brendan.
That's fair. I hope yeah, so um, this is Brendan White from
the Department of Finance. Um, so in late 2022 we did.
the Department of Finance. Um, so in late 2022, we did uh,
update our debt management policy to be a debt and pension
management policy, which uh,
management policy, which uh said that the cfo's office will
prepare a recommendation.
prepare a recommendation that we make a pension
contribution.
contribution equal to the tread water level so that our
liability doesn't decrease and in the last 2 budgets, uh,
Council has approved and accepted the cfo's rec.
Council has approved and accepted the cfo's recommendation.
Um, so we plan to keep that policy in place and to continue
to provide that recommendation.
to provide that recommendation and that calculation, uh, as
far as codifying I guess.
far as codifying I guess future contributions that I think
um would amount to basically passing a budget for
years, which I don't think um between
years, which I don't think um, we necessarily have the
authority or desire to do so, but um as far as the policy
and the recommendations that we will be coming at the cfo's
office.
office, I think the policy in places
there to stay and I think it's um been a good policy that
we've done the last 2 budgets. Um, but other than you know,
passing the 202
Passing the 2025 and 2026 and 2027 budgets now, it doesn't
really.
really um, I don't know if there's a firmer way.
really um, I don't know if there's a firmer way to codify
it than the policy that's in place. I appreciate that.
yeah, absolutely not locking in in a lock box in a way.
That's actually
that's actually restrictive but maybe there are things to
firm it up more than recommend.
firm it up more than recommendations just a follow-up
conversation on that at some time. I don't think that would
impede my support of what this looks like, but just a
conversation to have so that's all I have. Thank you.
much Sharon. Thank all you.
thank you Alderman Vasquez Alderman CEO Lopez followed by
Alderman Lopez.
Thank you. Um Cher woman and first let me uh, thank you for
having the second subject matter hearing on this.
having the second subject matter hearing on this on this
important subject. I um kind of wish that we did this, you
know under the previous administration because I want to
remind our colleagues that um, there were 2.3 billion
dollars.
dollars that were given to 2 developers without even any
conversation. So I do think it's important that we
understand what that distrust that 1 of my colleagues
mentioned comes from.
mentioned comes from, but I do appreciate certainly the
rebuilding of trust.
rebuilding of trust by doing exactly what people in Chicago
want is an explanation and discussion and I appreciate
chairwoman for your leadership on this.
I also want to uh, think of the different perspectives that
we have here for Inspector General.
we have here for Inspector General, uh, Joe Ferguson, too.
It's good to see you and it's good to see the commitment to
the city on what we need to do.
Um, my question is it comes after a a referendum that we
had?
had in our community around the use of T dollar?
had in our community around the use of Tif dollars. Um, I
think that we hear time after time is the difficulty of
access.
accessing These funds for a small homeowners as small.
businesses, uh, that really need the funds.
businesses, uh, that really need the funds the struggling
with high property taxes repair.
with high property taxes repairs and on top of that as we
said in the 37th word many homeowners are struggling.
natural disasters. That is still unattended.
natural disasters that are still unattended today from the
federal government with all of that. I do understand the
urgency of making sure that these badly needed resources
reach the um, the communities that need it the most
the West Side the south side of the city of Chicago.
need access as they have been defined in many.
need access as they have been defined in many of our
definitions as blighted quote unquote areas yet.
definitions as blighted quote unquote areas yet very rarely
those funds reach the communities that needed.
those funds reach the communities that needed in the past.
I really want
Welcome the new approach. I know Commission.
Welcome the new approach. I know commissioner Boatright
mentioned the discussions that we had in our community
around.
around how could this be turned around? And um, I think
that's what I hear from many parts of the city. Um, the
access how can residents have access to these funds without
having to go through second or third parties to access
them? I do think that there's infrastructure in place a
small homeowners are minor colleagues are the biggest
providers of natural occur.
providers of natural occurring affordable housing.
Yet the rarely.
Yet the rarely get access to this fund. So that is my
question again.
question again coming following from um,
a referendum with 90% of our community said that they need
these funds 9 out of 10 people. So I would like to see
maybe not only from DP.
maybe not only from dpd do but also I don't know the Civic
Federation.
Federation, um, you know, some some discussion around how
we can improve or processes. I welcome the new change.
know, especially in the Departments and the mindfulness
have this open conversation.
Yeah commissioner bolt Wright dpd. I think it's the
Outreach. That's really vital. Um, you can apply for what
you don't.
you don't know is available, um in terms of resources.
so I think that our department can do uh, a better job of
making a concerted effort to reach out.
making a concerted effort to reach out to those local
Chambers and part.
Chambers and partners and whether it's your constituent
night just spreading the word.
night just spreading the word that there's a funding round
that's available. The other thing is making the
application.
Is less complex. Um I mention.
Is less complex. Um, I mentioned earlier chairman that we
often have really great ideas that aren't quite ready for
the larger fun.
the larger funding rounds, but they are absolutely ready
for preedy.
for pre-development dollars that can help those Concepts
become a real.
become a real project. And so I think we need to create
lower.
lower tier tiers for funding so that those projects can go
from a concept to a actual project right for an actual
applic.
application. And so that's actually part of our allocation,
but I think
to your earlier point is technical assistance and
To your earlier point is technical assistance and also
Outreach. We we can do a better job of reaching.
Outreach. We we can do a better job of reaching out and
sharing what's available.
What funding is eligible what businesses we're looking?
What funding is eligible what businesses we're looking to
support? So that is clearly laid out in a little.
cumbersome from an application standpoint.
commissioner Garcia there from the Department of Housing
Commissioner Garcia there from the Department of Housing,
um wholeheartedly right? And you know, we've also had some
conversations, um, and I think things like the
community outreach, you know, the Department of Housing
does have dedicated Community, um engagement staff and
ensuring that um again that we're listening um, and that
we're hearing the same things that you're hearing and that
we are looking at the crit.
we are looking at the criteria that we're looking at how we
are, um choosing even how we do a program and what programs
we're doing that it is based on the needs that are
happening again in the bond there.
happening again in the bond. There is money for home
repairs because we know that that is a huge concern, um and
already this year we
already this year. We were already moving on the money that
has been budgeted to
that has been budgeted to do outside of this, um for this
year, um, and that
year. Um, and that already is not enough and we always
and we know what a huge.
That is and 1 of the priorities for do is ensuring that when
we do things like down payment assistance.
we do things like down payment assistance, we're not
helping people just get into their homes, but we are.
helping them stay in their homes because we know what an
asset it is. We know how it is about generational wealth.
and you know how important it is for families that they be
able to maintain these homes.
Thank you. Um
um
my my next question is around some of the some of the um,
the need for investment in Economic Development and um,
especially around initiatives that rarely funded in the
private sector cops for instance.
private sector cops for instance trust things that can
perhaps help us create different venues to really create
generational wealth. Um, so is there any and I I appreciate
a role of course the conversation around home repairs.
a role, of course the conversation around home repairs. Um,
there's anything else around in terms of all,
there's anything else around in terms of all the creative
ways where we can retain home ownership.
ways where we can retain home ownership right now. I'm
really concerned and I do think the conversation with the
assessors is assessor's office is critical. I do think that
the the need for um, creativity and new programs and new
ways to maintain ownership and home ownership in our
communities is dire, so I know that home repairs and
you know, again, we have conversations about how maybe we
can do this more flexible. My concern again is on creating
new initiatives as well.
has not
Has uh, not creating extra burden. I mean the application
sometimes are really difficult.
sometimes are really difficult for a small home owners to
to even fill out, right?
to even fill out right? So how we can be participating in
that and look at different models that I see are successful
shows your hous.
shows your housing there are ways to do this. Um, so I want
to make sure that we do not continue doing the same thing
that we done in the past and we move forward with a new
vision.
Absolutely.
Uh, this is commissioner Kasa again with Doh. Um, yes,
absolutely. And again the bond is
absolutely. And again, the bond is 1 tool that we're
looking at to bond to fund the things that we have outlined
in the bond plan outside of that. There are also other
things that we are doing for example the Chicago Housing.
Trust which is both the recipient of Aro home ownership
units, which keeps them in a uh essent.
units, which keeps them in a uh, essentially a land trust
form so that they can be remain perpet.
form so that they can be remain perpetually affordable. Um,
and that through that we are also,
and that through that we are also funding through other
land trusts like um both in pilson and
Land trusts like um both in pilson and Logan Square and
other areas. We are able to fund um help
other areas. We are able to fund, um, helping them acquire
and maintain um homes that then remain affordable
essentially in perpetuity we are
essentially in perpetuity. We are also through our home
ownership initiatives looking further at Co,
ownership initiatives looking further at co-ops and land
trusts. So 100% agreed.
trusts. So 100% agreed that we have to look at home
ownership both in the very traditional sense. And also in
the Alternative forms that are making it um more attainable
for families particularly consider.
attainable for families particularly considering, um, the
market and other constrictions these days,
Thank you and my final my final. Um.
At least my my final.
At least my my final um comment in terms of T usage in the
past.
past is the thing that I see the community is even in our
case in our world, um reluctance even to join this because
let's remember again in 2019 2 developers committed to do
approximately 20,000 units of housing. None of them was
delivered and I do think is important for us to do the due
Dil.
diligence, especially when some of these same developers
are asking for more Public Funding so I do think for our
colleagues, I do think yes, it is important to do
diligence.
and we got to make sure that we hold accountable those
Developers.
developers who may commit commitment and I would say that
when we have 80,000 units of empty vacant apartments. I do
think that we need to incentivize how we get those units
filled we need to create re
filled. We need to create Revenue. We need to create a
revenue.
revenue for the city and having vacancies that are
subsidized by the same small homeowners that are barely
making it to subsidize very affluent develop.
making it to subsidize very affluent developers. I don't
know.
Only thing that is unsustainable.
Only thing that is unsustainable, but it's also immoral to
look at this when we have 69.
look at this when we have 69,000 people that are in our
house today, so, that would be my
house today. So that would be my my asked that we look away
to incentivize this I think.
to incentivize this. I think I I I don't even know even in
the in the Lass.
the in the lassal corridor. I I I think that I see a lot of
people welcoming that uh, I do like to see in communities
like the 1 that are represent.
like the 1 that are represent, uh, that see that they are
being included and that they
These funds are truly going to develop economic.
and home ownership and housing for the people who?
who are being denied for so long.
Thank you. Um
Thank you. Alderman.
Alderman commission commissioner did you want to respond to
that just to affirm our commitment to continue these
conversations? I wholeheartedly.
conversations? I wholeheartedly agree and I think part of
what we've been talking about with. Um, the loop
revitalization projects has been to ensure that there is
affordable housing across the city and that there is
housing that is Affordable for um for families and
individual.
individuals in all of the community. So again, welcome, uh,
we welcome the opportunity to continue to work with you.
Alderman Lopez followed by Alderman Reilly
thank you madam chairman and
Thank you madam, chairman and good afternoon members of the
committee. Good afternoon commissioners.
committee. Good afternoon Commissioners. Uh, I have a few
questions. But before I do I just want to
say, uh
Mr. Blakemore, can I please ask you to
Thank you.
continue Alderman Lopez
yes chairman, um that I want to actually thank
uh your team and the administration for removing some of
the language that was questioned and incorporating some of
the issues that we had mentioned last time. Uh,
particularly regard.
particularly regarding, uh, city council approval. Um, I do
have a question with regards to some of that that seems to
have been
left in on page 25
section c which again talks about how
City Council
city council itself is uh as
basically cannot advantageously expeditiously or
conveniently.
conveniently exercise Authority.
seeds it to the
Seeds it to the mayor. I think that we've already
established that we can.
established that we can meet those requirements. So I would
say if we're
say if we are going to do a a
right
Got you. Thank you.
Um
And I also want to just point out.
And I also want to just point out if I met to both
commissioners before I get to my questions. I was looking
at the housing.
at the Housing and Development Bond program and project
sele.
selection details from March of 2024.
And just doing a quick add-on of the maximum.
And just doing a quick add-on of the maximums amount, uh
projected.
projected for multiple categories.
We actually are about 5 million dollars short.
for Bond, um the request versus at best at most what we're
actually going to potentially be spending and I would just
kind of pose.
kind of pose that to the
guest
Guests here. If they are. We going to correct that so it's
1.255 million as a 1.2 a billion. Excuse me.
1.255 million as a 1.2 a billion. Excuse me, as opposed to
1.250.
1.250 billion. This is the scriber server. Sorry. Is this a
Scribner server? You're pointing out? No, actually.
throughout the what page do you want so
Forgive me, so if you add up.
everything
Everything that was in that selection that I mentioned.
equals 1.255 billion.
equals 1.255 billion dollars, but the ordinance itself says
that at most we will borrow 1.25.
billion
So I just want to make sure that we're not.
So I just want to make sure that we're not handicapping
unnecessarily our ability to borrow.
unnecessarily our ability to borrow to the extent that we
need to as the commissioner said.
need to as the commissioner said you need money to provide
things. I want to make sure we're providing full.
things. I want to make sure we're providing fully for what
we're proposing and sharing.
without having to
pull from 1
I don't want to I don't want to steal from Rob from Peter
to pay for Paul.
to pay for Paul if we're doing this.
Uh, this is commissioner Kasa do appreciate that Al.
Uh, this is commissioner Casa. Do appreciate that Alderman.
We had established ranges so that there would be some
flexibility. Um, and uh, we did ask just for the cap of the
1.25 billion at this point because that's just what we have
modeled out. Um, and what again the numbers that we have
are projected on.
I just point that out chairman.
I just point that out chairman because
you know, I like to it's better.
you know, I like to it's better to have it and not need it
than
max out on some of these programs and then wish we had the
authority to actually
Go to the go to what we're actually.
Go to the go to what we're actually projecting. So I'll
just leave that out there how.
just leave that out there. However, you all want to go with
that. Um.
a number
another question that I had with regards to the 5 million
dollar.
City Council
authorization
And I'm looking.
and I'm looking for the page now.
Um, but you are.
Um, but you are familiar with it. Um
page 23
Was there a reason why we chose the 5 million dollar
threshold?
Yes, the million dollar threshold. Uh alderman.
Yes, the million dollar threshold. Uh Alderman was uh
chosen based on the recommend.
chosen based on the recommendation, um from Kofa and others
that that sort of uh, threshold be required for significant
projects that there be Council authorization. Um, and
looking at the actual programs and the actual dispersals
that our 2 departments make um, we focused in on
multifamily Housing and Development, um through our, you
know, litec program, uh, both new.
know, litec program, uh, both new construction and Rehab
those would certainly uh, virtually always uh require
those would certainly uh, virtually always, uh require, uh,
a vote in that instance and then the CDG large program, um,
which represents, you know, the major Investments
significant investments from dpd in Community Development
initiatives, um those
initiatives. Um, those would also always trigger, uh a vote
The reason I asked about the 5 million is because before
this.
this committee we generally have seen where Tiff Tiff
require.
requirements have a very lower threshold.
for a vote
Yes, so for I'm not I'm not asking.
Yes, so for I'm not I'm not asking what the particulars but
I know we have had where?
I know we have had where Tiff requests for various
projects, right? We're mostly Park.
projects, right? We're mostly Park District. Uh
I
igas, uh
CPS a they do come in below that number
or things that have come in for some of the CD, uh for some
of the uh housing
of the uh, housing or some of the other items. So I was
just curious as to it seems as though this is a much higher
threshold than what we generally would be.
seeing under the Tif program
Is that a correct assessment?
It it.
It it may be again. I I from my perspective. I know that we
were looking at from do on uh multi family.
were looking at from do on uh, multi family housing and
those requests are usually quite large. So, um, I'll leave
it to others.
it to others or we could get information through the chair
if there's cross about other types of projects. Okay, so
chairman if we could if I may ask through the chair from
the last year what the
various Tiff requests have been from both uh, housing and
planning and development just so we could see where we're
at roughly so that this is in line and that we're not
having a higher threshold to avoid any kind of over.
having a higher threshold to avoid any kind of oversight.
uh sure, uh, I think from the
Uh sure, uh, I think from the committee's perspective we
can easily get that information.
can easily get that information to you. I don't think we
are.
are um seeding any
Okay Authority.
um, the other thing that I actually wanted to talk about
going back to the various buckets.
going back to the various buckets, um when we talk about
building and preserving rentals green social housing single
family retrofits rehab and preserv.
family retrofits rehab and preservation. Uh, and
missing the
Missing the missing middle, excuse me.
all of those programs have anticipated units that they
intend to affect.
um
But the per unit.
expenditures vary from 96,000 per unit for the rehab and
preser.
preservation up to 2.
preservation up to 250,000 for the build and preservation.
What model?
What model or where did we come up with these?
uh cost estimates for what the per unit
Uh cost estimates for what the per unit would have been to
get to these totals.
for the most part
For the most part those are based on actual.
For the most part those are based on actual uh track record
of spend on.
of spend on uh, projects and uh the reason
of spend on uh, projects and uh, the reason years. Um, you
know, I know in some instances folks,
know, I know in some instances folks have asked about in
particular some of the multi family knowing that you know,
particular some of the multi family knowing that, you know
per unit total per unit development costs.
per unit total per unit development costs are much higher
than 250,000 per unit. Uh, which
than 250,000 per unit, uh, which is true the 250 and and
this may apply.
this may apply to some of the others as well, but the 250
represents the portion of spend that we expect to come from
the bonds because generally those projects
layer multiple sources
so when we look at programs like the
So when we look at programs like the the 1 bucket, which is
kind of a catch-all for a lot of home.
kind of a catch-all for a lot of home repair down payment
home repair and homeowner support.
that is
That is 145 million program for 1800.
That is 145 million program for 1800 homes. Is that for
1800 for the 5 years or every year?
all of these figures
All of these figures in the I believe in the document
you're looking at are over the 5 year.
you're looking at are over the 5 year plan.
and this is also going to be basically a
And this is also going to be basically a a a culmination of
all the existing programs that we already.
all the existing programs that we already see, correct. So
when we look at the homeowner support or home repair that
is going to be basically the evolution of like the roof at
porch program and things of that nature.
porch program and things of that nature the home various
home modification programs that we deal with already.
For the most part. Yes, I believe that's correct.
Okay.
when we look at these programs and we see
Do we have brake? Do we have anticipated?
do we have brake do we have anticipated breakdowns of where
we're going to see the spending in these individual?
Buck buckets?
You mean Within?
You mean within each of those individual programs? Yes. So
for example, and I'm and I'm honing in on this 1 in
particular because the home repair and home modification
program.
program never recovered postco.
We had a 3-year wait where people literally died.
We had a 3-year wait where people literally died waiting
for home modifications.
Um, we also know that we barely spent.
You know.
20,000 per household, but when I look at what we're
spending.
spending, you know.
On this 1 it's going to be significant.
On this 1 it's going to be significantly larger per unit.
So I'm just trying to get a a better sense of what it is
that we're going to be doing. Are we expanding our scope of
service or how what are we proposing with programs like
this?
Because if we're just simply doing the bare minimum that we
have been doing then it would seem that this number is
inflated.
unnecessarily
Department of Housing um, yes, so I think that there is
expected evolution of the current programs that we have.
Um,
even already this year we moved from being a a, um roof and
porch program to just being a home.
porch program to just being a home repairs program so that
we can look at other home repairs that
that we can look at other home repairs that are necessary
part of we've also found um as you refer
part of we've also found um, as you reference, right? We
had a long backlog of a wait list and part of what
a long backlog of a wait list and part of what we have
found as we have gone in and tried to continue to um hone
down on those that have been on the wait list is that the
cost of also just gone up of the work that is done. It is
it is part of the nature of the time that has passed.
it is part of the nature of the time that has passed and so
we are looking at higher cost. Um across the board, you
know this year. Um, we're looking at higher than 20,000,
you know in
Says we're looking at perhaps around 40,000 and there are
some.
some work that is being actively done right now to continue
to.
to assess particularly around some issues like flood.
that happened on the west side where there used to be
issues.
issues around remediation and folks homes. Just not being
ready yet. So absolutely that is part of it. Okay. So if I
may just offer 1 bit of 1 suggestion with regards to this
is that oftentimes the city of Chicago has offered multiple
programs.
But it said that if you get 1 you don't get the other.
Which really doesn't make sense particularly for many of
our families.
our families and particularly for our seniors who have a
lot of needs.
lot of needs and then find out well, they got a porch, but
now they don't get a roof and it's it's the totality of
their living situation that I think we have to take into.
account. So if we can include that in the conversation, I'm
happy to work with you offline on that. But I think that
that is something that we need to focus.
that is something that we need to focus on additionally in
this document.
this document only under the single family retrofit. Does
it mention?
it mention wnb e
are we incorpor?
Are we incorporating is that intentional or is that are
they?
they being Incorporated in all of the opportunities that
we're dealing with and
we're dealing with? And can we also focus on what we've
heard many times in this chamber?
heard many times in this chamber about utilizing local
contract.
contractors and local indiv work forces to help.
contractors and local indiv work forces to help build up
our communities locally.
our communities locally outside of just the WNBA program.
so Alderman, that's um
all uh, relevant MW
all uh relevant mwbe prevailing wage other things as they
apply.
apply and sort of policies across the city would continue
to apply.
to apply in bond funded programs. Um, I don't think the
fact that that was called out and that 1 particular area
means that it doesn't apply in the others. Well, I I want
to make sure yeah because we've all seen where projects
that have been funded.
Don't necessarily make an effort to hire.
Don't necessarily make an effort to hire local individuals.
or that we're not using local W and uh women in minority
owned businesses, and I want to make sure
owned businesses and I want to make sure that you know, we
have heard time and time again.
have heard time and time again, especially uh in dealing
with communities with a lot of vacancy. Why are we not
using?
using local contractors local young men and women to help
board up secure rehab there's these properties.
board up secure rehab there's these properties and I would
hate to see a billion dollar, Miss.
in this so I want to make sure that that we're
In this so I want to make sure that that we're in that that
is Incorporated in what we're doing. Um, lastly, uh
chairman. I would like to just mention and piggyback off
something. Uh, my colleague Alderman Moore mentioned, which
is uh the lack of investment in in communities and the
concern that some of us have with regards to how do we get?
How do we ensure? Nobody gets missed?
um, I know we've talked about there's going to be a
Um, I know we've talked about there's going to be a process.
There's going to be um,
things put in place to have these discussions
Things put in place to have these discussions. Uh, but when
we look at the community the excuse me, the
Community Development grants, which will account for 4 to
500 million dollars of this
uh endeavor
when we look at the 202.
when we look at the 2023 allocations.
communities like West Anglewood, which I don't think anyone
would consider to be a non-blind neighborhood which we I we
know and you know hasn't hasn't really seen significant.
investment in about
6 years
depending where you go.
um, West Anglewood
um West Anglewood according to that
spending map
Got zero.
1 of the few 77 communities to get completely nothing from
the city of Chicago.
That's beyond shameful.
um, so I just want to make sure that we are able to
Um, so I just want to make sure that we are able to help
steer the conversation to ensure that.
steer the conversation to ensure that communities are not
forgotten that communities that need it do get it and when
we continue to look at even the maps the rest of the map.
we continue to look at even the maps the rest of the map as
you know,
What I told both.
What I told both Commissioners is that we also have to find
ways to expand that Beyond.
ways to expand that Beyond like the Archer or even the
Stevenson Corridor. It's a big blot of nothing.
Well, um, so I I just I do recall that our commissioner.
Well, um, so I I just I do recall that our Commissioner of
Planning and Development said that she was giving
through the chair a list of those. Um by I guess by War.
of who applied so we have to look at whether or not there
were applications from those locations and then to see who
was actually funded and I think um, oh and and try I'm not
not pointing blame. I'm just pointing out the facts. I'm
not a pointing blame either. I'm just I'm just saying that
clear. Oh, I we're clear, but I'm also just saying that
when we look at
Where we should be investing and could be.
Where we should be investing and could be investing, you
know, that's got to be 1 of the areas.
know, that's got to be 1 of the areas that we are all
focused on as well.
Uh, if I could just respond. Yes, I will definitely get the
information through the chair for prior years, but I wanted
to just speak for a moment about this Bond going.
to just speak for a moment about this Bond going forward,
uh for the Community Development.
uh for the Community Development grants in particular so
under project location.
under project location, um some of the criteria that we
have to really ensure equitable.
have to really ensure Equitable dispersement and
allocation.
Of the resources is subject property is within an nof
programs cual.
programs qualified investment area subject property is on
the nof.
the NFS program priority investment Corridor subject
property is within.
property is within a tiff subject property is located in
community.
community areas on the south the west and the Southwest
sizes of Chicago and so just in terms of making sure that
we're Target and really thoughtful about the Investments
some of those criteria will help to ensure that the
allocation is funneled.
allocation is funneled in those neighborhoods that need and
deserve it most so I just wanted to just call that out for
that particular line item.
I'm aware. Um because I'm looking at it too, but I also
know that
only focusing on the nof and Tiff
severely limits our ability.
so if we're
So if we're looking at something that goes beyond the tip,
which is basically this whole conversation we can't be
restricted to with it.
restricted to with it being just in a TIF district. That's
right. It's includes other areas. I just wanted to kind of
highlight the Tif.
highlight the Tif question and the others um, and I think
it also goes to the need for outreach and so it's yes, it's
who's applying that's who we can award but
who's applying that's who we can award. But I mentioned
earlier I think we could do a better job of reaching out to
make sure that we have a larger applicant pool. So we are
having more applications to review and we are more
targeted.
with our Awards. Yep. Nope, I apprec.
with our Awards. Yep. Nope. I appreciate that. And I think
the only other thing that I would ask and I don't know how
to frame this in the ordinance chairman.
Um, but how do we ensure that when we give money to?
Um, but how do we ensure that when we give money to the
individuals and groups that were able to look back and see?
that they're actually meeting the goals. Um,
that they're actually meeting the goals, um that they set
out or agreed to and I know we've had this conversation in
other committees like when we do tax
other committees, like when we do tax incentives and things
of that nature and there's a couple instances even now
where we've given tax. Uh,
where we've given tax, uh money, uh to projects in the
south west side where individuals are shrinking their
project.
projects because of change of circumstances.
projects because of change of circumstance. So, how are we
able to incorporate that if we commit 1.2 billion?
building and doing things that were able to make sure that
our partners are actually meeting the goal both in terms of
um, what they've proposed as well as their hiring and all
of that so that it's not an after the fact until we find
out.
out later.
Yeah, thank you for that Alder.
Yeah, thank you for that Alderman. I mean certainly 1 thing
I would I would point to is, you know, we are committing.
bring on.
uh analysts to look at you know, the
uh analysts to look at, you know, the track record and make
projections about um,
About return on investment including return on.
About return on investment including return on Revenue to
the city and that is something that you know as we do.
the city and that is something that you know as we do the
quarterly reports on on Project completions.
quarterly reports on on Project completions and and
progress that some, you know could become a benchmark that
we look at no. No, that's not what I'm talking about. So
what I'm talking about is if
Developer ex says I want to do a project in.
Developer ex says I want to do a project in let's dangle it
and I'm going to commit to hiring.
and I'm going to commit to hiring 20% from the community
and I need
6 million dollars to do it we
We all vote.
We all vote because it's 5 million for the for the money.
They start doing their.
They start doing their thing and then we come to find out
they hired nobody from the neighborhood.
How do we hold them accountable for that and what
mechanism?
mechanisms can we ensure that are in here that we're
actually going to take care of?
actually going to take care of that?
Um Mr. MacDonald from the law.
Um Mr. MacDonald from the Law Department. Are you going to
refer to page 22?
Thank you.
Thank you chairman. Uh Jim McDonald managing Dy
Corporation Council Department of Law, uh, the chairman
referred to page 22, I believe in the reference to section
219 g that talks about uh the report
219 g that talks about, uh, the reporting through the
portals that when projects are completed,
portals that when projects are completed that will be
various items that will be included on the portal including
the final EXE.
the final executed agreements. I think with respect to the
altar
Alderman's question about how do you hold Developers?
accountable? Yes 1 of The Thing 1 of the jobs.
accountable? Yes 1 of The Thing 1 of the jobs for the Law
Department.
when the planning or housing says we
When the planning or housing says we want to do a grant we
want to do a loan we have.
want to do a loan we have assumed its 6 million we get the
specific project ordinance approved by the city council.
specific project ordinance approved by the city council is
this ordinance would require its then the job of the Law
Department to draft.
Department to draft that agreement that Grant agreement
that loan agreement and all the other ancillary documents.
and
And 1 of the things we always do.
is to say what is
the developer doesn't do what's promised. What is the
defaults? And what are the remedies for default?
defaults and what are the remedies for defaults? So those
are conditions those are revisions and agreements that we
put in because we don't want the money wasted and if it is
wasted we want recourse against the people.
wasted we want recourse against the people who wasted the
taxpayers' money.
So what?
So what is I'm sorry. So, what is it?
It will depend on the project it will.
It will depend on the project. It will depend on what the
developer is planning on.
developer is planning on doing for a housing project. There
will be typically affordability periods. And
will be typically affordability periods, and it will depend
on if the project every project doesn't necessarily have
the same rent.
the same rent limits and the same tenant income
restrictions.
restrictions that will be decided on a project by project.
basis from what made sense for that project Law Department
doesn't make that up we take direction from housing.
doesn't make that up we take direction from housing or from
planning and development.
for economic develop
For economic development projects that may be if there is a
job.
job Covenant. Did they provide the jobs?
job Covenant. Did they provide the jobs over what time
period makes sense?
The Law Department again takes direction from our clients.
for what makes sense for partic.
for what makes sense for particular projects to be the
appropriate covenants and the appropriate Covenant periods.
It's not something that you would I would try to write into
an ordinance.
an ordinance across all projects because it's
impossible to come up with 1 answer that would NEC
impossible to come up with 1 answer that would necessarily
make sense for every project no matter how small or large.
Mark Sean, uh for the record Mark Sean planning and
development.
development and so um to add to um, the Law Department, uh
drafting these agreements there is a monitoring and
compliance division. Um the assistant Commission
compliance division, um, the assistant commissioner over
that division where we would monitor any job requirements.
Um,
um, and these are requirements that the team would look at
prior to issuing certificates of completion and even after
certificates of completion, there are ongoing obligations
that are continually monitored by this division regarding
M. And w
and wbe there's also within the Department of Housing
Construction.
construction and compliance division. We work closely with
them on they monitor the minority and women business
participation.
participation along with local hiring, uh, where that
requirement.
requirement of course is a 50 percent um, and so in
for certificates of completion to
Should normally the way that they are written is that those
thres?
thresholds those participation those goals need to?
thresholds those participation those goals need to be met
in order for those certificates of completion to?
in order for those certificates of completion to be issued.
Thank you. And I think chairman I would love to.
Thank you. And I think chairman. I would love to see it
just a second. I just wanted I saw you.
just a second. I just wanted I saw you Alderman chairman.
It's just give me a minute.
Yes chair.
Yes chairman mitz.
While he was speaking on that I wanted to know where is
this going?
this going to be? Um, RF RFP?
this going to be? Um, RF RFP or is going to be done by a
community engagement.
Community engagement and how if so, how is it working?
Okay, that's the question.
Um, can you finish?
Yep, so I
so I appreciate the answers. Um, I think that we have to
that.
that alderman.
Members of the city council need to be a part of this.
Members of the city council need to be a part of this
section, too.
We've had plenty.
We've had plenty of discussions where
we can't just leave it.
we can't just leave it to City Hall to figure out what we
need.
need locally.
And I want to make sure chairman that.
You know.
You know when we look at especially if you're talking about
did they meet the MBE?
did they meet the MBE or residency or local hiring or all
those things that are in?
those things that are in here?
You know the first person that's going to get.
You know the first person that's going to get a complaint
isn't going to be anybody here.
It's going to be us.
and I want to make sure that uh
And I want to make sure that uh, we have a seat at the
table as well. So I don't know how we do that.
table as well. So I don't know how we do that in this
document when it comes to section g because dpd and doh,
doh.
doh cannot just be the only 1's coming to uh consensus on
these 13 items when it relates to some of these issues. So
I'd love for us to find a way to incor.
I'd love for us to find a way to incorporate local.
consideration and participation
Thank you. Thank you.
Alderman mitts, uh, can I have
Alderman Nugent ask her question. She has a 1 oclock and
she had asked me before you came back in. I know you have a
question. We'll come right to you.
Okay, Alderman Nugent.
Thank you chairman, and thanks to uh Alderman Ryle.
Thank you chairman and thanks to uh Alderman Reilly as well
for letting me cut. Um, I've heard a lot.
for letting me cut. Um, I've heard a lot of colleagues
today bring up. Um,
the why around the 5 million dollar, um threshold and I
think
I've heard a lot of answers on it and
I am not completely Satisfied by any of the answers. Um
I'd actually be curious.
I'd actually be curious and I was hoping we would know
today what percentage of Tiff.
today what percentage of Tif projects over the last 5 years
were under the 5 million dollar threshold. Um, I think that
would have been important.
would have been important for us to know and I know
I'm taking housing out of the equation because I'm working
with dpd.
with dpd, uh for
quite frankly all of my
quite frankly. All of my Tif projects have been through dpd
and
I pulled the data on my own Tif projects over the past.
I pulled the data on my own Tif projects over the past 5
years and not 1 has been over 5 million.
years and not 1 has been over 5 million dollars.
and I think
And I think that's a really big deal and Tiff is a really
important.
important funding mechanism for me. Um,
when we go about if if this legislation
When we go about if if this legislation is successful and
these quarterly reports.
these quarterly reports come out will we be reporting on
projects?
projects under 5 million dollars?
So we'll be reporting on all of them.
Yes reporting will be.
Yes reporting will be on any spending from the bonds.
Okay.
but
Council would only be approving.
Council would only be approving projects over 5 million.
individual projects with 5 million or more yes would be
would have to get
forward.
the taxing bodies. This will be
for CPS, which is a sister agency.
for CPS, which is a sister agency not accountable to this
body.
And I just wanted to make sure I have this correct. I think
I know the answer. Um, but will there be any limit?
I know the answer. Um, but will there be any limitations at
all on how CPS can spend these hundreds of millions of of
dollars and found money or simply be at their discretion?
for example
Would there be a stipulation they can only just for
Capital?
Capital, uh projects and Investments versus oper?
Capital, uh, projects and Investments versus operating
costs?
It would be part of their property.
It would be part of their property tax levy so I would
imagine it would be.
imagine it would be whatever restrictions exist on their
property tax. Levy as part of their.
property tax levy as part of their budget. So entirely
discretionary then
I'm not familiar with their budgeting I un
lot of folks in this building aren't either.
um, and so and so again, um my
Um, and so and so again, um, my job is helping balance. The
city's budget not cps's. Um, I'm sure they could use the
money it would be nice to know.
money it would be nice to know what it'll be used on and
the reason I asked and I think a few of my colleagues have
brought this up earlier.
brought this up earlier is that historically we've approved
a lot of Tiff spending for infrastructure that benefits the
sister agencies.
Are they going to continue to come back to us now that
we're?
getting giving them their prorata share of all?
getting giving them their prorata? Share of all, the
increments been locked up in Tiff?
Are they going to keep?
Are they going to keep coming back to us hat in hand
looking for more infrastructure?
looking for more infrastructure money out of the tiffs that
do remain. I think that's a a a good question. And so we
because they're gonna keep you know, we're giving this but
they're gonna keep pulling on this.
they're gonna keep pulling on this and the question is, you
know at what
know, at what point are we done helping sister agencies if
we're giving them all this money back?
something
Something that we can do. I mean, this is another question.
that I will put on my list to see if I can get some
responses to thank you. Thank you.
responses to thank you. Thank you chairman. Um, just a
couple more questions.
couple more questions, uh,
and I think Alderman Nugent was trying to get to this and
think perhaps Alderman Lopez was too. Um,
Alderman Nugent did an analysis that that none of the the
Tiff awards that have been granted in her Ward over the
years.
years have exceeded a certain threshold. Um, do we have a
general sense of what the average award might be under a
program like this or
program like this. Are we talking about a hundred thousand
dollars on average per project?
dollars on average per project half a million a million 10
million. Um again, it gets to kind of the question of how
we arrived at the 5 million dollar.
Appropriation, you know where we get pulled into the
decision-making process on app?
decision-making process on approving these things.
sure, I would I
Sure, I would I think.
You know first say it's going to rad.
you know first say it's going to radically differ by
program and I think you can get some sense of that. We're
happy to be happy to to do these calculations.
happy to be happy to to do these calculations and and share
that but I think you can get a sense of that from the
uh the um project selection pamp
Uh the um project selection pamphlet which includes, you
know, estimated.
total size of of the bucket of of spend as well as number
of units. I mean from do side, you know.
of units. I mean from do side, you know, everything from
commissioner was saying 40,000.
commissioner was saying 40,000 dollars potentially for a
home repair Grant to yeah, it could be 10 million or more
for a multi family.
for a multi family construction. Um, so I think it's it's
it's hard to put an average on that. Okay.
it's hard to put an average on that. Okay, um if in fact it
could just come in from dpd's side so our community
development grants those large grants of are all 5 million
and over we have categories. We have our small our Med.
and over we have categories. We have our small or medium in
our large in our large are above 5 million. Those are those
deep Investments those catalytic grants. And so those would
all be come before um Council for okay, and I appreciate
that too. Um and
that too. Um, and I think I'm kind of in the camp with with
almond nent.
on examining that 5 million threshold
On examining that 5 million threshold. Um
I get it with the large project.
I get it with the large projects and you'd expect those to
come through this body.
but a whole bunch of of of the
But a whole bunch of of of the low hanging fruit for this
program lies in that 1 to 5 million.
program lies in that 1 to 5 million dollar range.
and if we're
And if we're giving up, uh approval over a big chunk.
and if we're giving up, uh approval over a big chunk of
where
the Project's land, which is in that.
the Project's land, which is in that middle ground.
Um, my concern is that we won't really have a whole lot of
say, um,
on on
On on what funded and what's not?
On on what funded and what's not so um Madam chair on on
that point. Please put me down in the
that point. Please put me down the column for like, I'd
like to see the the threshold lower a bit. I'm not saying
we should be examining every half a million dollar Grant.
But perhaps a million dollar threshold is more appropriate.
Um
another question and it kind of goes back to the
the sister agencies coming to us for infrastructure money.
Um will all these projects be required to have a private
Equity partner.
or
Or could some of these Bond proceeds be used entirely.
Or could some of these Bond proceeds be used entirely 100%
for what? We'd consider.
for what we'd consider to be public projects like building
a a brand.
a a brand new park or Park District Fieldhouse or a new
Branch Library.
No.
No, I'll answer that because it's the it's for economic
devel.
development projects and how affordable housing.
development projects and how affordable housing projects
that are currently.
that are currently uh within the purview of these 2.
departments. It cannot be used to.
departments. It cannot be used to build a park. So no
diversions.
diversions right and it and it says
in the OR
In the ordinance that whatever is in the ordinance that
specified. Um, that's what this funds you can't sweep the
money.
money for other uses good.
um and
was brought up that that the the plan here is for the
Departments to hire analysts.
Departments to hire analysts who will provide us with a an
analysis of these Investments and the return on investment.
Um, I have a question.
Why haven't we already been doing this?
Why is it that?
why is it that you know in 2024 we're finally getting
around to the idea of analyzing our investments to make
sure we're getting a return.
I mean I can give 1 short.
I mean I can give 1 short answer which is um, this wouldn't
be the first time we've done that we've done.
be the first time we've done that we've done um, you know,
program evaluation and and um impact assessments on other
Programs I'll look for an example the right to council
program was.
program was implemented with from the beginning. Uh, uh a
program.
program evaluation component. Um,
but um, but I you know, I absolutely
But um, but I you know, I absolutely agree Alderman. It's a
it's an important thing for us to be doing especially with
big initiatives like this it it should actually frankly be
the norm across the board. Um, when we're making meaningful
Investments with with public dollars,
I think the taxpayers to deserve to.
I think the taxpayers to deserve to know whether or not
that paid off or not, and sometimes it won't.
that paid off or not. And sometimes it won't um, but for us
to do our jobs better.
to do our jobs better, um, I think we need to have a data
set like that. Um, so I'm curious to see that's a component
of this program. I would suggest as a takeaway from this
Let's look at applying this in many other areas.
government because it's much much needed.
Um, most of my other questions have been answered. Uh, but
again, um,
chairman, I I
Chairman, I I would appreciate uh that you flag those few.
issues. I've raised here and and hopefully get us some
additional information.
Um, I understand the valuable program like this. Um, you
know, I also think Tiff has been AB
know, I also think Tiff has been abused. Um, and we have
far too many Tif districts, so I'm not looking to defend
the status quo. Um, but I I just I get very concerned about
the frequency.
uh of visits we get from Sister agencies looking for
Uh of visits we get from Sister agencies looking for major
Capital investments from us.
uh, when a lot of that comes out of these pots of
Uh, when a lot of that comes out of these pots of money that
will be expiring. Um, so my hope is there'll be some kind
of understand.
of understanding with the agencies slow down. Um,
of understanding with the agencies slow down, um, because
you're getting extra money figure out how to handle that on
your own if if CPS needs to go out and do bonding for their
capital.
for their capital projects. God bless.
um
Um, but they're not accountable to us. And and that's
that's a frustrating.
that's a frustrating thing for I think a lot of my
colleagues, okay.
colleagues. Okay. Um, thank you madam chair. I appreciate
the time and I look forward to following up. Thank you
Alderman, Reilly that uh,
Alderman, Reilly that uh is uh holding point.
Alderman mitts
Thank you.
Thank you madam. Chairman, um
Madam chairman I would like to see um
If there is a list.
of um
communities where that does not touch tiffs
is is that possible?
the communities
The communities do that. Is there is there a map?
Commissioner about right? Yeah boat, right? Yes. We have a
map of all of our current Tif districts and it it'll show
what is what Wards what what?
what is what Wards what? What areas can I get?
the uh
The uh communities the community areas. Yeah. I I don't just
want the map. I want it broke down where I can be able to
know what's the community and what what
to know what's the community and what what that's in.
sure, I can have my
Sure, I can have my team provide.
A sheet that shows where tiffs don't exist.
A sheet that shows where tiffs don't exist, right? Because
I think that that's important because these are communities
that have not been serviced and these uh for 1 like I have
a school that don't have a don't even have a elevator in
the school and the janitor have to take the um material
upstairs.
upstairs walk up tear it up any furniture anything.
upstairs walk up tear it up any furniture anything coming
in the building and all I hear from CPS is but it's not in
a TIF district.
So I have several schools in the area where things are
happening. It's not.
happening. It's not in a TIF district and what am I
supposed to do and trying to help to get the correct? I
think that was the point that uh, uh, I think alderman
Reilly was trying to make that we are um giving back
through the expiration of a number of tips in order to
fund.
this fund.
Ordinance or this Bond program?
ordinance or this Bond program, uh money back to CPS
um millions of dollars hundreds of millions potentially and
we should be uh, I mean now would be the time to start
talking to them if this should pass,
talking to them if this should pass about how they're going
to spend it. I think that's the question. We need to get
more uh information on
which I'm committed to doing I'm
Which I'm committed to doing. I'm not I'm not against.
There but I am concerned.
about transparency
I am very concerned.
about transparency and when we talk about
homelessness
and
And I don't have a clear understanding of how.
I don't see the picture how everything is going to be.
I don't see the picture how everything is going to be
broken down. I call that mean.
broken down. I call that mean transparent.
I'm looking at the money coming.
I'm looking at the money coming in the pots is going in. I
don't see the community.
don't see the community engagement part.
Of this that's why.
Of this that's why I asked when ottoman low low pass.
speaking.
How do we break this down? Where is it going to be area of
you or RFP or is the community going out?
you or RFP or is the community going out pick projects and
where everybody is being on the same page?
where everybody is being on the same page with what's going
on not us just coming down.
on not us just coming down voting on something and
nobody knows anything about it.
now commissioner Castaneda
Absolutely. Um, yes alderwoman, I think that 1 of the big
priorities that we have as do is community.
priorities that we have as do is community engagement. We
have a team dedicated to community engagement anything
that happens in a certain Community. We always go out and
try to do some Community engagement and we're deepening
that commitment we
that commitment. We are hiring more folks, um on the ground
to be there. So yes for things like homelessness where
we're looking at s
we're looking at SRO preservation. We would look at the
specific projects we would work with
specific projects. We would work with you to ensure that
the communities engage and that it is something that makes
sense the other way in which we're addressing homeless.
is through uh permanent staff, you said,
is through uh permanent staff. You said they are hiring
folks. Who are they we we
folks. Who are they? We we are hiring. Um, okay, um
currently 2 more, um Equity officers who are going to be
part of our community.
part of our community engagement team. So again, deepening
our commitment around Community engagement in the max this
question. Why are you talking? Uh, we want to have
we're going to follow our own guidelines.
we're going to follow our own guidelines in terms of MBE
wbe.
and DBA on these
And DBA on these projects. Yes wbe MBE.
And DBA on these projects. Yes wbe MBE and local hiring
guidelines are in place for um for the projects. We have a
construction compliance Department.
construction compliance Department as does dpd.
Okay.
Well, I'm I'm not sure about.
I'm I'm gonna be concerned about 1 Thing.
I'm I'm gonna be concerned about 1 Thing, uh on these
projects. I don't want to communicate.
projects. I don't want to community engagement person who
don't know nothing about the community.
don't know nothing about the community that gives more work
for me to have to do and I'm looking for somebody that
maybe we can talk about who should be on a project that
knows.
knows the community can go out there and get stuff done. We
don't want to be playing around with taxpayer dollars. I
don't think that that's the right way to do this. So, uh,
we need to make sure that we do some checks and balance on
that wholeheartedly agree Al
that wholeheartedly agree aldra woman and I would certainly
um as I've um,
um as I've um committed to um, all you and all of your
colleagues right continue.
colleagues right continue conversation and engagement to
ensure that um again what we are doing works for your
community,
community. All right, very good. Thank you. Madam.
Chairman. Yeah. I just want to say all them admits. I'm
with you 100%
because I can recall in the previous administr.
because I can recall in the previous administration having
alternate Community Eng.
alternate Community engagement processes put in place that
did not
And so I don't see.
And so I don't see that happening, uh with this
Administration.
Administration and I hope that this that will continue
um Alderman manah, hennur
um Alderman manah hoppenworth
Thank you chair.
Thank you for holding this briefing. I hope that we can
have more convers.
have more conversation.
um, and thank you to everybody in the
Um, and thank you to everybody in the Box.
Um, I want to also appreciate.
Um, I want to also appreciate all my colleagues questions
most of them have
Most of them have been answered. Um, I I appreciate um, the
equity part of this program. I think that's the most
important part.
important part that we are considering what is happening
across all of our neighborhoods in Chicago not just
downtown.
Um, I'll still want to
uplift all of the questions about transparency and I would
like to be included.
like to be included in any conversation about how we're
going to show that to our constituents what we're doing.
to show what our return on investments are
in each of these projects
um, I like the
Um, I like the uh, I'd like to all the questions that
Alder.
alderwoman Lee brought up in terms of Eng.
alderwoman Lee brought up in terms of Engagement and also,
um engagement with the aapi community. Um 40th Ward incl
includes Asian, Argyle and includes
includes Asian Argyle and includes a Chinese Mutual Aid
Association, but there are so many more organizations that
we we need to engage with.
that we we need to engage with across the city.
um
I want to also.
I want to also uh, you know.
Uh, thank you. Um, Mr. Ferguson for being here, you know
your words at the beginning really?
your words at the beginning really, uh struck me,
especially the
um concerns that you have about
the absence of comprehensive planning and many key areas.
you know that perpetuate the hyper transactional nature.
the development that St. Meet the growth for decades in our
city.
Um and also
Um, and also that
You're pointing out that.
you're pointing out that the spending plan is not tied to
the capital Improvement plan.
the capital Improvement plan a Citywide housing plan or
planning to replace the Tif subsidized infrastructure.
development, and there were many questions.
development, and there were many questions asked today. I
was just checking into
was just checking in to see, you know, if you wanted to
clarify anything that you said earlier and or if there were
things that you have found hopeful in this conversation
that we've had today.
Sure. Thanks for the.
Sure. Thanks for the shout out. Um and the opportunity to
respond further. Um the observation there is
respond further. Um, the observation there is really kind
of a paradigm meta observation of how the city is operated
for generations and admin,
for generations and administrations going back a very long
time. We don't do long-term comprehensive planning.
episodically and um, the
episodically and um the um, whether whether it's regarded
as a cliff or not as a cliff, um, what
as a cliff or not as a cliff, um what clearly I think this
room, um, uh has a unanimous view on
Is that Tiff has been?
is that Tiff has been misapplied, um that it remains an
important.
important tool. Um, but what we are on the verge of is a
shift from an assumption of Contin.
shift from an assumption of continuity.
to a shift on the basis of rigorous standards
um, uh to a system
um, uh to A system that actually begins to narrow, um, uh
and more surgically applied t
and more surgically applied Tiff to where there is benefit
and that in turn has a will have a substantial impact.
and that in turn has a will have a substantial impact on
our assumptions of the availability of funds and how we
fund certain things that is going to actually beg the
question of how we do planning. Um, and how we um, put
long-term considerations into our decisions about spending
each budget cycle and um, and and
each budget cycle. And um, and and so it's very heartening
to me actually.
to me actually to hear.
um, uh member to member to member, um all sort of
Um, uh member to member to member, um, all sort of embracing
what really is a looming paradigm.
what really is a looming Paradigm moment 1 that
unfortunately is impelled.
unfortunately is impelled by long-term structural deficit.
unfortunately is impelled by long-term structural deficits,
um, uh, daunting uh pension,
um, uh, daunting, uh pension deficit obligations. Um, but
in those challenges is a big opportunity,
in those challenges is a big opportunity and I hear a
recognition of that opportunity.
Thank you so much for that. I appreciate it.
I also
you know from Edgewater.
you know from Edgewater understand that our tiffs are.
um, so
Um so different from the ones that are collected. Um,
um so different from the ones that are collected, um,
equally on the South and West sides of Chicago, so,
equally on the South and West sides of Chicago, so I'm
eager to um,
Address the structures that exist right now that perpet.
inequity across our city.
Um, and I also wanted to Echo what Alder woman nent was
saying about how what we're doing now.
saying about how what we're doing now and the decisions
that we're making are going to affect other.
that we're making are going to affect other departments, so
I would uh, consider
or I would actually like to
Or I would actually like to talk to um, you know.
or I would actually like to talk to um, you know our
the way that
The way that we um fund our infrastructure. I think that we
need more conversation about that because um, that's really
what our constituency you know, how how we are building out
a safer. Um, Chicago through our infrastruct.
a safer. Um, Chicago through our infrastructure.
um streets sidewalks
How we're making it safer and uh, I don't.
how we're making it safer and uh, I don't want to um
I just want to understand the opportunities that are
available to us.
available to us and how we're going to build on it as we're
changing. Um our process.
And then I had a question.
and then I had a question, you know, because um
we have
We have 2 great libraries in the 48.
We have 2 great libraries in the 48th Ward and 1 of them is
very old. You know, we're
very old, you know, we're talking to the commissioner of
libraries, too.
libraries too. We have challenges including um, the fact
that we have a a large house.
that we have a a large houseless population housing
insecurity is real.
insecurity is real and Uptown and Edgewater and they use
our public.
our public spaces including our libraries as um,
Is a place to go?
is a place to go um, and so when we're thinking about how
we're Reinventing libraries, how can we use?
we're Reinventing libraries, how can we use this?
Bond program to create an opportunity where we're actually
able to co-locate and build affordability with our public
spaces. Is that something that the bonds program can
address?
so
So the bonds program could not.
uh just build a library if there was a situation where
know, it was part of a larger Economic Development or
housing.
housing project then maybe that would be something that
could be looked at. But um, but these funds are
specifically for economic development and and housing
program.
Programs, but um, you know library is also 1 of the taxing
bodies that would be receiving some additional.
bodies that would be receiving some additional dollars. Um,
Yeah, that's about.
yeah, that's about as much as I could speak on that
particular question.
Oh commissioner bolt right? I'll say.
Oh commissioner bolt right? I'll say um Auto woman There's
an opportunity from a CO.
an opportunity from a collocation standpoint. Obviously the
library
the library is Daniel just stated. We'll have their own
funding source.
funding source and their Foundation but depending on
the collocation is if we're talking about housing and
that's a great example if we're talking about other uses
there could be a potential for us to bring in other
resources.
resources for the other use not the library but for the
other use to have a more complimentary kind of
comprehensive development.
comprehensive development, so I just want to kind of give
an example of how that could look not funding the library.
portion but funding the other makes
Portion but funding the other makes use portion if you will.
Thank you. And I do I do believe that my community would
benefit.
benefit from mixed use from our public and our private
spaces. Um, and I would like to talk to you more about
that.
um, you know
It was there was a comment.
It was there was a comment earlier about how we need to
slow things down.
slow things down and I
I feel like um Edgewater is losing population.
you know and
You know and it's really impacting our small businesses.
I'm a small.
I'm a small business.
owner too and we have so many um business corridors that
are um, you know, owned and oper
are um, you know owned and operated by our our neighbors.
Um,
um, and they're having trouble not only staying afloat.
also, um Staffing the businesses and it's because of
affordability of housing.
affordability of Housing and it's because of um,
you know permits take a really long time and so I I'm just
asking for a commitment for us to work together.
asking for a commitment for us to work together to figure
out holistic ways to um to bring more people into not only
Edgewater and Uptown but across all of Chicago and I think
that this program could be transformative in so many ways.
that this program could be transformative in so many ways,
uh, we need to do it, right
uh, we need to do it right with transparency and
accountability for sure and um, I just would like
also a commitment that you're going to be really committed
both of the Commissioners because this is a
a 2-prong program to work on the ground with every single 1
of us.
Yes, absolutely. That is.
Yes, absolutely. That is that is a commitment that stands
that has been um.
that has been um since um, I I'll speak for myself, but
since certainly um, I I've been confirmed.
since certainly um, I I've been confirmed into this and I
think it is incredibly important to us.
think it is incredibly important to us also because again,
the the bond is just 1 of the tools. We're looking across
the Spectrum at all of the ways in which we can do these
things including things like cut the tape and ensuring that
we're streamlining and again getting at these concerns of
just how quickly um communities are changing and how
quickly um, neighbors are in need and how quickly we need
to make sure that folks can be housed. So absolutely Elder
woman.
And I second that um commissioner bolt right dpd.
And I second that um commissioner bolt right dpd, you know
as a housing commissioner. I've been really transparent my
goal is to plan with your communities and not plan for the
communities. And so I want to be thoughtful and collab.
collaborative and really focus on the priorities that your
stake.
stakeholders have and be really responsible and thoughtful
about the tool.
about the tool and how to leverage this tool and other
tools that we have available to have more support for your
small business.
small businesses to put vacant Lots back in productive use
to think about repopulation understanding that that's all
going to feel the commercial.
going to feel the commercial corridors and ensure that they
continue to thrive and so absolutely you have my commitment
on record that I will absolutely be responsive and
collabor.
Each of the order and as well by Department.
Thank you. I appreciate it very much. I think that's all my
questions. I
I just again wanted to thank you for host host.
I just again wanted to thank you for host hosting this uh
conversation we need.
conversation. We need more somebody like me who needs to
explain to the const.
explain to the constituents what we're doing and how um,
how changing the structures and what we have right now is
going to benefit all of us. Um, not only on.
going to benefit all of us. Um, not only on the North side.
Thanks. Thank you. Alderman. Manaha.
Thanks. Thank you. Alderman. Manaha for more. Um, Alderman
Ervin and I want to acknowledge all the men Fuentes. I
don't know if you have any questions. Aldermen. Are you
Okay, great Alderman Ervin quick.
Okay, great Alderman Ervin quickly. Um, I don't know if
this had uh, I
this had I was in and out, so I'm not sure if this has been
discussed. Where was there ever any analysis done on the
potential?
potential uh pickup in increment from the release of these?
dollars did we I know we had talked about that in the
initial subject.
initial subject matter of hearing. Is there any further
analysis been done on that?
Yes, so we beyond what was provided through the chair. Um,
we have the Departments have committed that we're going to
bring.
bring on analysts to do that analysis. No, no, no, no.
bring on analysts to do that analysis. No, no, no. No. Oh
wait a minute.
I'm talking about an analysis of the
of the increase Revenue that will be generated.
of the increase Revenue that will be generated from the
projects not analyzing.
projects not analyzing the Project Specific stuff, but
overall.
overall, what does this look like as far as the increment
that we're releasing? Are we going to potentially pick this
back up?
back up from a revenue perspective in our ability? Uh,
back up from a revenue perspective in our ability, uh, when
we start looking at the overall amount of of uh taxable
property,
just to make sure I
Just to make sure I understand your question, uh chairman
the question.
The question is around the return of Revenue.
The question is around the return of Revenue the return the
increased Revenue.
increased Revenue created by the Investments that the bond
would fund. That is, correct.
yes, so I think that could be part of
Yes, so I think that could be part of the the analysis that
that we we've committed.
that we we've committed to bring on. So what what we've
done up to this point.
done up to this point is what was provided through the
chair, which was a very rough.
chair which was a very rough analysis given just time
constraints and Capac.
constraints and capacity, but we're definitely committed to
Bringing on.
Bringing on folks to to help us do that in a more rigorous
way. So based, uh, and I apologize. I have not seen it.
What what are you estimating that to
what are you estimating that to potentially look like and
you know, I don't need anything exactly. I'm just looking
for just what what your your uh,
guests of that may may potentially be and and this this is I
wouldn't limit it to just P tax but even sales or other
Revenue that would be generated from these operations.
so the uh from the the through the chair response that we
provided and again, I want to emphasize how I think we
mentioned this last time how rough and and and that's fair
ballpark. This is but we um estimated just from the
Community Development.
Community Development Grant CDG program from dpd and the
multi-family
multifamily investments from Doh, so not even inclusive
multifamily investments from do so not even inclusive fully
of all of the other programs. Um, we made a very rough
estimate of uh, 800 million dollars over 30 years in new
property tax.
property taxes, uh for the city itself.
property taxes, uh for the city itself, um, you know would
also generate for other property tax, okay?
also generate for other property tax. Okay collecting
bodies. Okay? Okay. Thank you. Uh, and that's just on
2 components. That's right. I'll I'll sign okay.
2 components. That's right. I'll I'll sign. Okay, that's
all thank you. Thank you madam chair. Thank you Alderman IR
Ervin. Um, so I don't see any other questions.
Ervin. Um, so I don't see any of the questions, uh Alderman
Lawson last
Alderman Lawson Last Chance alderman kson.
Okay, Alderman Hopkins. All right. Um first I want to thank
everybody in the Box, uh who showed up on a special?
Commissioners, uh boat ride and Castaneda.
Commissioners, uh, boat ride and Castaneda and I uh want to
give a special. Thank you to uh, James Norris and Daniel.
Cooper Joe Ferguson. Thank you so much for your time.
Cooper Joe Ferguson. Thank you so much for your time today.
And I I know this is like
The whole day for you when?
The whole day for you, when I I appreciate it. Um and Janice
Oda.
Oda gray. Thank you so much for the Kofa analysis. I think
this is the first time um that kof
think this is the first time um that Kofa has opined on
uh this kind of Ordnance publicly like this and I
Uh this kind of Ordnance publicly like this, and I want to
thank you for your your presence today. I want to thank
everybody for showing up I commit to
everybody for showing up. I commit to getting answers to
some of the questions that um were most Salient and there
being no,
being no further business before the committee. Can I get a
motion to adjourn?
So moved by Alderman Ervin all those in favor signify by
saying I I opposed.
saying I I opposed then the opinion of the chair is the
eyes have it and the committ.
eyes have it and the committee on finance is adjourned.
Thank you.