meetings 2023 to 2027 pursuant to the Chicago city council
Rules of Order and procedure rule 49. The sergeant-at-arms
sets forth the following rules of conduct to be followed
during the public comment period and the duration of all
committee and City Council meetings profane vulgar
threatening abusive or disruptive language is not permitted
the meaning discriminatory or harassing behavior and speech
directed towards others is not permitted disruptive
behavior, including disruptive or disrespectful conducting
hearing others presentations is not permitted banners fires
or signage are not permitted backpacks large bags and sharp
objects are not permitted clear bags not tinted in color
that do not exceed 12 by 12 by 6 in will be permitted in
our subject to search food and beverages including in metal
can
Ministers are not permitted cell phones must be placed on
silent prior to entering the meeting room individuals must
remain seated public comment speakers are permitted to
stand only when providing public comment small handheld
devices may be used only while seated and the user must
refrain from interfering with the view or hearing of other
individuals individuals or groups failing to adhere to
these rules will be asked to see such disruptive conduct
and failure to comply will result in there being subject to
removal from the meeting by the sergeant arms.
Steal you.
We don't reach out to something new.
that means you
say you want to lead up.
Can't seem to make up your mind.
I think you better close.
The city of Chicago city council rules of conduct for
public meetings 2023 to 20227 pursuant to the Chicago city
council Rules of Order and procedure rule 49. The
sergeant-at-arms sets forth the following rules of conduct
to be followed during the public comment period and the
duration of all committee and City Council meetings profane
vulgar threatening abusive or disruptive language is not
permitted the meaning.
Discriminatory and harassing behavior and speech directed
towards others is not permitted disruptive behavior,
including disruptive or disrespectful conduct during others
presentations is not permitted banners flyers or signage
are not permitted backpacks large bags and sharp objects
are not permitted clear bags not tinted in color that do
not exceed 12 by 12 by 6 in will be permitted in our
subject to search food and beverages including in metal
canisters are not permitted cell phones must be placed on
silent prior to entering the meeting room individuals must
remain seated public comments speakers are permitted to
stand only when providing public comment small handheld
devices may be used only while seated and the user must
refrain from interfering with the viewer hearing of other
individuals individuals or groups failing to adhere to
these rules will be asked to see such disruptive conduct
and failure to comply will result in their being subject to
removal from the media.
But the sergeant-at-arms.
The city of Chicago city council rules of conduct for
public meetings 2023 to 2027 pursuant to the Chicago city
council Rules of Order and procedure rule 49. The
sergeant-at-arms sets forth the following rules of conduct
to be followed during the public comment period and the
duration of all committee and City Council meetings profane
vulgar threatening abusive or disruptive language is not
permitted the meaning discriminatory and harassing behavior
and speech directed towards others is not permitted
disruptive behavior, including disruptive or disrespectful
conducting others presentations is not permitted banners
flyers or signage are not permitted backpacks large bags
and sharp objects are not permitted clear bags not tinted
in color that do not exceed 12 by 12 by 6 in will be
permitted in our subject to search food and beverages
including in metal canisters are not permitted.
Cell phones must be placed on silent prior to entering the
meeting room individuals must remain seated public comment
speakers are permitted to stand only when providing public
comment small handheld devices may be used only while
seated and the user must refrain from interfering with the
viewer hearing of other individuals individuals or groups
failing to adhere to these rules will be asked to see such
disruptive conduct and failure to comply will result in
there being
Good morning, everyone.
Good morning, the meeting on committee at the meeting of
the committee on economic cabinet technology development is
called to order.
You will now have a roll call to establish Quorum. Please
note that your present response will be deemed a yes vote
in this Quorum cause used as a reference vote for later.
Miss Richmond, please. Call the role.
chairman vgas president vice chair Mosley
alderman laspada
Alderman Hall
Alderman Mitchell
Alderman Chico
alderwoman Lee
alderwoman Gutierrez
Alderman Lopez
alderwoman tabarez
alderwoman Cruise
Alderman Cardona
alderman waguespack
alderwoman myths
Alderman Napolitano
Alderman Reilly
alderwoman Mana hoppenworth
Yeah.
She's good.
We have another but she.
We have a forum. Thank you. Ladies and gentlemen, ladies
and gentlemen. We have a quorum.
Alderman Chico has requested to participate in today's
meeting remotely under rule 59. Can I get a motion to allow
Auburn Chico participate remotely. All Vice chair Mosley
makes that motion. All those of you have the motion
allowing ottoman Chico to participate in today's meeting
remotely. Say I
Any opposed say nay any opinion chair of the eyes have it
also permitted to participate remotely today.
Uh, we will mark them as present on the Quorum call.
At this time, we will begin the public comment period
public comment is limited to 30 minutes out of respect for
everybody's time. Each speaker is limited to 3 minutes.
I've been informed that 8 speakers have signed up for
public comment, uh within the applicable provisions of the
sergeant-at-arms protocol.
Also for today's meeting we have received letters regarding
an agenda item 8 the ordinance for class L tax and of
property at 801 West Madison Street, we received 6 letters
of support and 1 letter of 1 letter of opposition to this
class Elden incentive. We also received a written comment
via email regarding sustainability and Community Gardens in
Chicago. All of these letters have been shared with ecdd
committee members via the 1 Drive Link, which was sent out
on Friday the Friday Friday afternoon.
Our first speaker is Mark Kowski. Ryan Companies followed
by Mariah d
Dig dig Reno, thank you chairman. Uh, we are here, uh on
behalf of the applicant for 1 of the matters and we're
happy to take questions when that matter is called, okay.
uh, Lou weeks
Good morning. Chairman, VA guest members of the committee.
My name is Lou weeks. I'm the Executive Vice President of
Unite Here Local 1 Chicago's Hospitality Workers Union. I'm
here to speak in support of the class sell for the
hospitality development at 801 West Madison. The purpose of
the class sell subsidy is both to encourage the
preservation and Rehabilitation of historically and
architecturally significant buildings and to contribute to
the economic well-being of the county by increasing the
level of economic activity and increase in employment
opportunities. We believe that this development will create
a path to more good jobs and our City's hospitality
industry. I hope that you will vote Yes on this proposal.
Thank you for your time. Thank you for the weeks.
Our next speaker is Michael Young bae.
capital
economic development
Why we're not saying that in our communities.
All these people come down here every week.
That benefit the European neighborhoods, you know downtown
Northern North areas, maybe High Park on the South Side
Etc.
But in places like Woodland
You know Rossland.
Englewood
chadam
these areas not saying the development. They're not saying
the capital.
They're not saying.
the push like we see
for these other neighborhoods
we talk they talk about jobs and
our people need jobs employment careers Etc, and we're not
giving that opportunity.
We're not giving the opportunity as far as the even agenda
coming down here.
you know things are just very scammed outline only people
that really know what's coming forth is the people that's
involved and these people is not involved in the city. They
involved in their own.
corporations
they involved in their own organizations. We need to see
this push around Chicago as a whole.
Because y'all complaining about the violence because it's
happening on the North side down Etc running corporations
away and things like that. That's the the Overflow of
what's being deprived in the other neighborhoods.
we need
Chicago as a whole
to work together
on development on Capitol
if these people don't have no Capital then they going to
find Capital somewhere else.
And then we looking puzzle.
Or we looking concern or we upset when that Capital become
capital murder.
You see we can't continue to underfunding.
the underdeveloped
areas in Chicago
ladies areas
in the dark and the dormant
while other
communities they they they flourish.
It becomes unbalanced.
It become unequal it become a Injustice.
towards everyone
because this can spill over to your front door no matter
what neighborhood you in.
So we need to do better at Chicagoans as Citizens as
people. Thank you.
Thank you Mr. Bay.
our next speaker is
you see Missy Taylor?
moti taler
Okay, Michael Taylor. Sorry about that. Yeah, had a hard
time reading this for me.
Okay. Thank you.
Thomas Living
Okay.
Mr. George, Blakemore
Oh who are who Economic Development?
Where have the white get developers with this tax
incentive? They are here?
Where the black?
And I always talk about how y'all steal my money y'all
talkin Style.
you all don't use the N word, but you treat us like 1
because you all got the capital the money and I know
exactly what tax incentive mean.
I'm educated in government.
You get the tax incentive and you say You're Gonna hire so
many people how many of these people gonna be naive like me
big nose thick lip with a black booty hole like me.
But you get you come to government. This is the way of
making a fool out of black people, but you got black people
sitting on these boys.
You always talk about black people. Call them Angel Mama
sambo. What about these hockey?
these racist white
These 2 proclaims but they don't fuse the word in.
but they treat you like in
when they got all the money and the honey
They found South I like piece white folks South South.
They let you know it's exactly where they coming from but
these up north are trying to be so sophisticated. I never
hear the word in.
With these 2 cup claim on white supremacist right here.
This is disgraceful right here.
Under this guy of a democracy a 1 party.
A 1 party 69 and each other no economic development in the
black neighborhood in the ghetto.
But you got Black Faces in these places and you use the
police. All right black people.
Something is evil here. Something is corrupt here.
Something. Is American here.
American here America always been raised
From the time she captured black people and inflamed them
in the America.
So very look at you're looking at America ugly America.
Sell out black and ain't your mama honky.
racist
Oh you use the term where they burn the flag.
So this is a miracle, isn't it?
Something is evil here.
Something Mr. Bingo hurry up before they and talk about the
2% of the contracts that black people are are getting in
procuring it.
orange Cuba said
Hispanic get 22% and the rest are white something is wrong
here.
Thank you, Mr. Blackmore.
Our last speaker is
Larry Lis
Okay. Thank you.
That concludes the public comment period uh, the first
order of business is approval of the April 2024 monthly
report which all members of committee should have received
are there any questions or comments from the committee
members regarding the report?
May I have a motion to recommend approval of their April
2024 monthly report by the same roll call was applied to
determine corn.
Uh order woman lie so moves here, you know directions to
order please uh, and uh on all the woman jug Terrace to the
road.
Okay.
Cool item 1 on the agenda is the appointments of John and
Zas as a member of the Community Development commission
introduced by Mayor Johnson during the April 17th, 2024
city council meeting a copy of Mr. Zevs resume has been
provided to all committee members Mr. Vaz, Mr. Zas is
present and will provide a statement.
Mrs ass
Good morning, chairman Vice chairman and all community
members. I'm honored to have the opportunity to express my
interest in serving on the CDC board with over 30 years of
experience in Community Development Outreach. I'm eager to
learn and participate and contribute my skills and
knowledge to further enhance the well-being of our amazing
City.
I've been committed to enhancing economic growth and the
prosperity of our local residents and minority owned. Um
businesses women owned businesses and MBE wbe and diverse
business communities. I want to continue my work in
equality with black and brown communities to increase the
job opportunities for local contractors and local city
residents. I'm excited about the possibility of working
alongside the esteemed members of the CDC. Once again,
thank you for the consideration on this potential
opportunity.
Thank you, Mr. Zas at this time. Would any of the members
of the committee or council members like to make a
statement or ask questions?
all woman mitts
Thank you, Mr. Chairman and good morning Pastor John.
Um, I can call you that I have that relationship. I've
known you for over 20 years.
um
I didn't at 37 Watt.
And it's amazing. I want I have to share this story with
you about Pastor John.
I pray if anybody believe prayer works.
There's a testimony there because he set up camp on some
land.
And I'm like Pastor John that's not your land. He said the
Lord told me it was.
Well today he has a a church, uh, uh food pantry open over
there 7 days a week serving the community and not just that
he's working with the International Sports Center, uh,
Danita Travis as well and they've been working and not just
with it's not about just the Hispanics because Pastor John
you work with all of the uh residents on the West Side the
West Side Health Authority, even when you was billing out,
uh, it's just amazing the work that you're doing many of
the residents that are coming over to volunteer to help.
Um, and even then just the collaboration is beautiful when
you want to do things together, uh, there's a way and we
bring that to the table. We we do the work with Chicago
should be doing
and and I I know that you're going to do great work here on
this, uh committee, um on the board, so I'm very thankful
for you your church family the team and all that do all the
work every day.
Every day, I don't know how you keep up. But you do so this
is another uh step.
That you go and take in now so that we can do even more
work. Uh, and I know you'll get it done. So congratulations
from me and uh, I support the appointment and I hope my
colleagues would support it as well. Thank you all mitts.
Automatic Spy 1 second. Um Alderman Reilly has requested to
participate today's meeting remotely under rule 59. Can I
get a motion to allow Alderman ready to participate
remotely Alderman laspada makes that motion hearing no
objection. So ordered Alder
Hey, thank you so much dear man. This is so much for being
here with us today. I I've had the opportunity to know
about your work through colleagues and other Pastor friends
of ours for years now, and I wanted to speak into this
particular point because I I want to make sure that you're
not
Charged unfavorably against other Faith leaders who have
been appointed in the past, um to talk about what is the
relevancy to the faith community to Community Development
and when I was I mean you can speak to this as well, but
like the if you look at the the pass of Community
Development even as a field and it was actually my
concentration in grad school, it comes out of Faith
communities before government was ever involved. Um, if you
look at the 1960s the Bronx New York the way Faith
communities banded together in partnership with then
Senator Robert F Kennedy to advance this idea of not
government driven, but actual community and institution
driven revitalization of their communities. That's what
we're really talking about before we get to the money the
dollars the tiffs.
That's the real work and that's why I'm grateful that
you're here because you are grounded in that history that
tradition that gives government insight into the real needs
of communities knowing the questions that need to be asked
based off of your knowledge. But if you want to expand on
that like I'm I'm fine for that as well. But I'm really
glad and I want to speak to the relevancy of someone in
your profession to this work.
Yeah, the importance of being grounded in community to
understand the development of what the community needs is
the groundwork and then you build from that and so for
example, when we build the athletic center in North Austin,
we first did a survey of what the community wanted. We
walked through our neighbors the door-to-door survey and
right after the pandemic when our I'll share the story
there was a young man. It was 17 years old. He was coming
out of the store that they just finished looting and I
asked him directly what what it would take for you to
understand your um, how wonderful and how precious God has
made you and he goes, they just need to hear us and so I'm
here to hear you and he goes we need something for us a
place where we can belong a place where we can build a
place where we can grow and so out of that came the remnant
of this community center that now it's 150 square feet
building that we purchased and we built and um now the
residents of
South Austin North Austin gailwood are all participating in
this 1 high in athletic center that it's run by high-end.
Uh guy athletes that come in Jason Heyward. It's baseball
baseball clinic there Chicago Bears, are there Chicago
fires there? And so we have brought something to the west
side that has been missing for a long time. And now all our
residents are using it and it's been uh some special to see
but it started with residents saying we
Want this not me coming in to say I'm going to build this
they were the ones who formed it and created it. So nor
conversely like us coming in and saying this is what you
need. It's
that that rootedness in the listening that I really
appreciate and why I'm glad to your seeking this
appointment right? Thank you. Thank you any other members.
Um, well I'm excited about having Pastor Zas on the CDC as
well. Someone who uh has engaged with government and finan
and kind of finds the challenges in the red tape, uh is of
more folks that we need. Uh, so that way we can streamline
the process and really get uh, the community involved in
uh, in some of the projects that uh that the developers
want to put forward. So I'm really excited about having
Pastor Zas on this.
Um, seeing no other hands.
Um Alder woman admits makes the motion to recommend the
pastor of this item, but the same role call. It was applied
to establish Quorum hearing no objections. So ordered
Pastor Zas, uh, you pass committee will see you on uh, next
Wednesday. I think or 2 Wednesdays from now, uh and get you
confirmed and get you to work. So so congratulations
pastor.
Items 2 through 4 on the agenda are 2 appointments and 1 and
1 reappointment to Bear special service areas.
Uh introduced by Mayor Johnson during the April 17th, 2024
city council meeting. The following individuals are being
considered before the committee appointment of Sunni Kareem
to SSA number 61-53
Angela C Hurlock to SSA number 5 Commercial Avenue
commission located in the seventh and tenth Wards at this
time Mark Roshan, uh assistant Commissioner of Department
of planning is available to answer any questions.
Uh, the ectd team has confirmed the support or
non-objection from the following council members with
appointments within their respective impacted wards.
Alderman Robinson yansi Rodriguez Scott CEO Lopez Mitchell
and Alderman Chico
most commissioner candidates were unable to appear today
before before the meeting. However, I'm in support of the
appointments as well.
At this time with any of the members of the of the
committee or council members like to make a statement or
ask any questions of Mr. Roshan.
Seeing none. Uh, may I have a motion to recommend a
recommend approval of the appointments and reappointment by
the same roll call vote that was applied to determine
Quorum all women get terrorist makes that motion hearing no
objection so ordered
The do pass recommendation of the appointments and
reappointment will be reported out at the next city council
meeting, uh, congratulations on their confirmation and
partnership with the city. We look forward to working with
them.
item 5 on the agenda is an ordinance to approve the
issuance of a class 6B tax incentive for property located
at 272 North California Avenue in the 27th Ward introduced
by Mayor Johnson during the April 17th. 2024 city council
meeting Aaron Fogle project manager for the Department of
Planning and Development here to represent. Uh, I'm sorry 2
present rather in support of the item and will be available
to answer any questions. Uh, we also have members of the
development team for the property at 272 North California
here to comment and answer any questions, uh, Mr. Fogle,
please begin the presentation when you're ready.
Good morning, uh chairman viegas and members of the
committee on economic capital and Technology development.
For the record, my name is Aaron Fogle financial planning
analyst in the department of Planning and Development. I am
also joined today by Micah Taylor and laarni and Thomas
Living from the development team.
I'm here today to request the approval of an ordinance
supporting a class 6B property tax incentive for 272, North
California LLC for the purpose of rehabilitating an
approximately 5700 square foot manufacturing space at 272
North California Avenue to utilize as an owner occupied
print shop and offices.
The project site is located at 272 North California Avenue,
which is in the 27th Ward the East Garfield Park Community
area.
And the West planning region Alderman Walter Bernett Junior
has provided a letter of support for the project.
Shown here is an aerial view of the subject property, which
is located at the southwest corner of the North California
Avenue and West Fulton Street intersection.
and this is a view of the current conditions of the site
from the exterior the site contains a 5700 square foot
manufacturing space that has been vacant since 2021.
The developer plans to redevelop the space to be utilized
as an owner occupied print shop and offices for Studio
in-house and Chicago Print Works.
The new property will allow for the expansion of services
employee had count and Community participation.
The renovation will include significant improvements to the
building envelope including structural facade improvements
roof repairs installation of exterior windows the complete
replacement of all plumbing and electrical systems the
installation of an HVAC mechanical unit and the
installation of a glass door front to replace the existing
garage door.
The interior will receive an extensive buildout to include
a kitchen 2 bathrooms 2 private offices a reception area a
conference room and open floor desk plan and a large print
shop.
tax savings to the applicant are estimated to be 107224 over
over 12 years or 79665 on a Net Present Value basis.
The construction period it is estimated to be about 4
months with completion anticipated in July 2024.
The project cost is approximately 2.3 million and is being
financed with 35% equity and 65% debt.
As previously stated the estimated 12-year tax savings to
the applicant.
Is uh about 107224 of which the city share is 24813.
That said the total estimated net increase to the property
tax base, even with the use of this incentive is an
estimated 90812.
This slide shows a rendering of the Project's interior. You
can see the Open Floor, uh office plan.
And this slide shows a rendering of the Project's exterior.
Dpd is in support of this project that will preserve 13
full-time and 5 part-time jobs and create 5 full-time and 5
part-time jobs.
The project will bring over 2.3 million in investment to the
west region of the city.
Even with the class 6 B abatement the project will still
generate a positive net property tax impact to all taxing
districts.
Thank you for your favorable consideration of this request.
I as well as members of the development team are happy to
answer any questions the committee may have.
Are there any questions or comments from the members of
committee?
Almond Conway. Yeah, and to be clear. I'm not a member of
the committee just a big fan. Um, uh and the npv analysis.
What was the interest rate that was used?
on that
um
5% 5 percent. Okay. Thank you. That's all I got.
Any other questions?
All right seeing see seeing no questions. Um
Vice chair Mosley recommends pass the item by the same role
call that was applied to establish Quorum here in New
objections. So ordered to do pass recommendation will be
reported out at the next city council meeting.
Thank you.
Thank you item 6 on the agenda is an ordinance to approve
the issuance of a class.
6 Tech 6B tax incentive for property at 10330 Southwood lawn
in the ninth ward introduced by Mayor Johnson during the
the April 17th 2024 city council meeting Beth McGuire
project manager for the Department of planning and
development is here to present in support of the item and
will be available to answer any questions.
We also have members of the development team for the
property at 10330 South Wood lawn here to comment and
answer any questions Miss Miss McGuire. Please begin a
presentation here.
Good afternoon, chairman and member of the committee.
For the record, my name is Beth McGuire project manager
with the Department of planning and development.
I'm here today to request your approval of Redevelopment
agreement between the city of Chicago and pulman Industrial
LLC for the purpose of authorizing a class 6B property tax
incentive.
The property is located at 10330 South Woodland within the
north Poleman community area in the 9th ward in the far
south planning region.
The subject property highlighted in red is on the corner of
Southwood Lawn Avenue and East 103rd Street. The property
is a former glass recycling facility that has been vacant
for a number of years.
Shown here is the property in its current condition from the
roadway as you can see the space is fairly underutilized.
Sorry, give us a second to straighten the slides out.
Okay.
Uh, the developers requesting a Class 6 Speed offset
development and operating cost at this location compared to
other suburban and Northwest Indiana locations.
They plan to purchase and demolish the glass recycling
facility in order to build an approximately 170,000 square
foot light industrial building.
The building will contain 32 doc stalls and ciliary office
space and on-site accessory parking.
The building will be divisible for up to 2 tenants each
with their own office space, but the end user is still to
be determined. The area has become home to other light
industrial facilities in recent years. So this development
will be compatible with the surrounding areas.
The total project cost are 25 million with sources coming
from a combination of equity and debt.
the estimated abatement to the applicant is 3.2 million with
the net present value of 2.4 million over the 12-year life
life of the incentive. The property is however still
expected to generate a net benefit of 1.7 million to all
taxing districts by reactivating the dormant property.
Upon expiration of the incentive 484,000 more in property
taxes will be paid annually compared to it remaining vacant
over the same period of time.
These are rendering of what the completed building will
look like showing the parking and Landscaping as well.
Given all of the facts dpd is generally supportive of the
use of a Classics being incentive on the site dpd believes
that the project will result in number of benefits to the
city in surrounding Community including creating at least
20.
full-time positions and up to 180 temporary construction
jobs
providing continuing support to the city's efforts to
revitalize the pulman industrial area.
25 million investment in the community
and the 25 million investment in the community will result
in a net benefit to all taxing districts.
I'd like to thank the committee for your favorable
consideration of this request.
I'm also joined by Mark Koski and David Doug from the
development team and we're happy to answer any questions
you may have at this time. Thank you. Thank you, Mr.
Maguire. Are there any questions uh from the members of the
committee?
Uh, Miss McGuire you mentioned the developers here. Yes,
can they step to the mic?
Shure Mark, if you'd like to go to the
podium
You get back to the screen.
Good morning. My name is Mark Koski. I'm with Ryan
Companies the developer morning Mark.
Can you fix that key? Thank you. Appreciate it, uh, 25
million. Um, can you talk a little bit about some of the
mwbe participation on this project?
Sure. So, um, we've uh hired a consultant Maurice Williams
to assist us and ensure that we hit our um requirement of
the 26% minority owned companies and 6% uh women-owned
companies to not only ensure that we hit that but
potentially exceeded.
Thank you, Mark. Um before I move on and Alderman Mitchell
to the role.
Any other questions from members?
All right, seeing no questions. Uh Vice chair mosy makes a
motion to recommend pass the item by the same role call
that was applied to establish Quorum hearing no objections
to order to do pass recommendation will be reported out the
next city council meeting. Thank you. Thank you.
Item 7 on the agenda is an ordinance to approve the
issuance of a Class 7 C tax incentive for property at 54
5214 to 5232 South Archer Avenue in the 23rd Ward.
Introduced by Mayor Johnson during the April 7th 2024 city
council meeting.
Uh antoinet Maxwell project manager for the Department in
the planning and development is here to present in support
of the item and will be available to answer any questions.
We also have members of the development team for the
property at 5214 to 5232 South Archer Avenue here to
comment and answer any questions. Uh, Miss Miss Maxwell,
please uh, begin the presentation when you're ready.
Thank you cheer, good morning, everyone good morning, uh
chairman viega and members of the committee on economic
capital and Technology development. My name is Antoine and
Maxwell. I'm financial planning analyst and the department
of Planning and Development. I am also joined today by
Louise Vasquez of Torres construction the developer and
Kevin Banning of Fanning law who represents the development
team.
I'm here today to request the approval of an ordinance
supporting a Class 7c Property Tax incentive renewal for
TVB LLC for the purpose of renovating the existing 6,953
square foot restaurant Building located at 5214 through
5232 South Archer Avenue.
The project site is located in the 23rd Ward within the
Archer Heights community area and alderwoman to buy our
supports the project and we uh, she has provided a letter
of support.
Here you see an area view of the neighborhood contacts. The
property is in the small red square along Archer Avenue.
Okay.
On this slide shows a current, uh condition of the site and
the exterior of the building. Uh, this does reflect, uh
Renovations that have been completed.
Here is also a picture of the inside of the building
reflecting some current updates.
the restaurant
and the user is the red Barrel restaurant again. It's uh,
it's about 6900 square feet and it's owned and operated by
Louis Vasquez. The restaurant serves a wide range of
Cuisines. The owner is a uh, certified, um, MBE, uh
business owner. And again this request is for a 7c renewal.
The applicant purchased the vacant restaurant structure in
April of 2017, uh completed indoor Renovations and a
facelift to reopen the restaurant improvements were made to
the entrance and waiting area a bar seating, uh, 58
patrons, uh 2 dining rooms 1 seating 555 patrons and
another 18 patrons Dance Floor stage kitchen kitchen food
prep with walk-in coolers and an adjacent off office space
majority of the project costs funded a completely new, uh
roof costing approximately $150,000.
uh, total project costs, uh, the budget reflects here was
roughly 705,000 which does include the purchase price of
the of the restaurant of the structure of 525,000 and the
hard cost of 180,000 which is funded by equity and loans.
The tax analysis impact so the estimated 5 tax 5 year tax
savings are approximately 45,000. The total estimated net
benefit to all districts is a negative 40 roughly 45,000 as
well.
And dpd is in support of this project. That is brought
roughly 705,000 and investment to the Archer Heights
community area.
The project is expected to retain 9 full-time and 11
part-time jobs.
Again, the applicant will save approximately 46 thousand
dollars with this 5-year incentive.
Uh, but the city also benefits from the activation of a
property that has been sitting vacant for roughly, uh, 3
years between the years of 2014 and 2017.
And the uh, the incentive will also help keep the
restaurant operational, uh, post the pandemic in which they
were uh severely impacted during that time.
And thank you very much for your favor consideration. This
concludes my portion of the presentation and I as well as
the other members of the development team, we'll be happy
to take any questions.
Thank you, Miss Maxwell. Are there any questions or
comments from the members of committee Al?
Thank you chair.
so
I'm I'm not saying this out of a place of voting against
it, but I want to understand this.
More fully because usually we're doing 1 of these.
abatements because there's
continuing work or renewal because there's new work that
they're
Planning to do in this case, even when you talked about the
roof replacement. All of that work has been completed at
this point and several years ago, correct.
The work has been completed it was done in 20.
During during the pandemic so during 2019.
Can you can you talk more about?
the necessity of
the renewal I'm trying to understand it, but I feel like
they're they're not going to just
close and fire everybody if we don't.
Do the renewal. What do we feel like is the
Is the benefit the the comes from doing the class, I
understand. So the the way that the renewal is being you
know presented in the developer is here to to also ask
answer the question, but
They the renewal will in fact help them maintain the
employment base that they that they currently have and to
keep the the restaurant operational.
Um, and I can
point to the developer to speak a little bit more to
to any further projects or oh sure by that requesting this.
Hello, my name is Luis Vasquez. So to answer your question.
Um, do you have retention is is a problem right now? Uh,
what we're trying to do is after the minimum wage increase
to the servers. We didn't raise our prices for because a
blue color Community. We cannot increase our prices, but
when I keep more jobs for the restaurant plus we try to add
another area to increase occupancy so we can add more
employees any savings that we get from the taxes. We're
going to put it back in the restaurant so we can create
more jobs.
Uh, we want a second chance after the pandemic when you
open a restaurant, you need 18 months to establish a
restaurant.
Right. We passed the 18 months. We had the pandemic 3 years
of pandemic and we try try to get a second chance.
So if you uh, if you grant us the uh, the tax incentives it
will help us be stronger in the next 5 years to increase
our compensate and increase the job.
Okay.
There's thoughts for me to ruminate on but I can ruminate
on them after this.
Committee meeting um, no further questions at this time.
Thank you chair.
Are there any other questions or comments?
All right. Um.
Okay, seeing no questions. May I have a motion to recommend
passes item by the same role cause muscle was was
established was applied to establish Quorum all the
Mitchell. So moves here, you know Jackson so ordered to do
pass recommendation would be be reported out at the next
city council meeting. Thank you. Thank you.
Item 8 on the agenda is an ordinance to approve the
issuance of a class L tax incentive property at 801 West
Madison in a 34th Ward introduced by Mayor Johnson during
the April 17th, 2024 city council meeting. I leash Tuffy
coordinator planner for the historic preservation division
of the Department of planning and development is here to
present in support of the item that will be available to
answer any questions. We also have members of the
development team for the property at 801 West Madison
Street here to comment and answer any questions Miss Tuffy.
Please begin the presentation when you are ready.
Thank you chairman viegas for the record. My name is eilish
Tuffy the ordinance before you is in support of a class L
property tax incentive for 801 West Madison Street in the
34th Ward.
Constructed in the early 1900s the former Mid City Savings
and Trust Bank operated in the area for 100 years. However
for the last 20 years the property has sat vacant and
subject to deferred maintenance.
The former bank was designated a Chicago Landmark on April
24th 2012.
The current owners purchased the building in 2022 with the
intention of reactivating the corner lot property.
Will be rehabbed for 12,500 square feet of retail on the
lower 2 levels and a 76 room Hotel on the upper stories.
We have a letter of support from Alderman Conway.
The commission on Chicago landmarks approved an adopt a
landmark Grant of 1.3 million dollars for the
rehabilitation and the commission's permit Review Committee
supported the rehabilitation plans.
The exterior scope of work includes masonry repairs and
Tuck pointing is necessary cleaning of all facades
historically window repairs at the ground level and second
floor repair or replacement of upper story Windows as
needed historic door repairs and new exterior architectural
lighting.
the interior scope of work includes construction of a new
hotel lobby in the historic 2-story banking Hall
character defining interior features will be preserved in
the landmarked banking Hall space such as the original
teller counters and historic lighting fixtures.
2 existing elevators will be repaired and 2 new elevators
will be added for safe egress.
Hotel suites will be will be built out on the upper floors
from the mezzanine level overlooking the banking Hall up
through the sixth floor new mechanical electrical plumbing
and Fire Protection fixtures will also be installed to
replace the building's obsolete systems.
the total project cost is just over 53 million the minimum
investment required for class L eligibility is 50% of the
assess market value, which in this case is 15.5 million
plus the value of any tax credits and grants received by
the developer.
For this project the owner will be spending 23.5 million in
qualifying Rehabilitation expenses, which exceeds the 50%
minimum investment required to qualify for classes.
1 change in the statistics here on this slide is that the
number of permanent jobs is now higher estimated to be 15.
with an average annual salary of 75,000
adopt a landmark Grant recipients are required to meet MBE
wbe goals and pay prevailing wages.
The class L project will achieve 50 sustainability points
by earning an energy star and by exceeding the energy code
by 5%
a tax analysis has been prepared by dpd to estimate the
value of the incentive to the applicant.
The current annual taxes for the property are approximately
7770 thousand dollars a year.
Estimated property taxes over the 12-year period of the
class L incentive with Rehabilitation of the property.
Are approximately 7 million dollars.
The total tax abatement to the applicant will be 8.2
million dollars or 6 million Net Present Value.
After the class L period concludes in the 13th year.
Annual taxes for the property are estimated to be 1.76
million or 460 dollars more than if the building were not
rehabilitated.
Construction work began in January of 2024 and is expected
to take 16 months with a Target completion date of spring
2025.
Building tenant operations are anticipated to commence in
the summer of 2025.
This concludes my presentation the project team are in
attendance both. They and I are available for questions.
Thank you. Thank you, Mr. Tuffy Alderman Conway is also
here to speak at an answer any questions.
Uh from our colleagues almond Conway.
Yeah, just in in very brief summary as you can tell this is
a
beautiful Bank building that has been abandoned for
20 years right at the corner of Madison and Hallstead just
north of Greek Town and we have a developer here who was
stepped up to turn what is currently kind of an eyesore
into uh of this abandoned building into a real asset to the
community, uh in this hotel and as part of this it is worth
mentioning. They have worked, uh worked with Unite Here to
create, uh, good union jobs as we heard, uh, as we heard
Lou weeks say in public comment earlier today, so I really
want to thank
Think um, thank the developer here. Thank you Knight here.
Uh, thank the attorney Liz Butler who had to do a lot of
work to get all this together. And this is I'm I'm so proud
to have this project in my ward and I and I asked you all
the support it. Thank you, Mr. Chairman.
Thank you Alderman Conway, uh before we move forward. Uh, I
received a text from Alderman Napolitano, uh, if we could
allow him, uh to be a panelist on Zoom.
Okay.
Uh, may I have a motion for uh Alderman nepallo to to
participate in today's meeting remotely under rule 59 Vice
chair Mosley makes that motion.
Hearing know all those in favor of the motion allowing
Alderman to Pallet Town to participate in today's meeting
remotely. Please say I
All opposed say nay in the opinion cheer at the eyes have
it please and Alderman a politano to the world.
Um Edina any other questions from the members of the
committee.
I would just add ottoman Conway. I did not know that
property was vacant for 20 years. Um, and um to think about
how challenging um,
other communities are
and how long it's taken for Investments to happen. I would
have never thought that the corner of Madison and hawstead
would have a property vacant for 20 years. So I'm glad to
see that we're reactivating it getting it back on the tax
roles and proving it creating jobs creating tax revenue
sales revenue Etc. So really excited about that for you and
something I'd add Mr. Chairman is is to to your point. Um,
it may not be clear from the outside that it was abandoned
for 20 years, but I've but I personally received a tour of
the building and it is very apparent on the inside that it
was a banner for 20 years. So I really like like you said,
I really appreciate the the hard work of the developer
getting this getting this, uh back online as it will really
be an asset to the community as opposed to being an
abandoned building in a great location now, thank you.
Thank you John spotter. Hey, thank you so much here. Again,
like beautiful project Alderman Conway. I've gone to the
the Whole Foods across the street and went past. There's so
many times on the way to school would not have imagined.
The only thing I wouldn't call it is an isolate like from
the inside.
but no 1 would be investing that much money if it wasn't
such a gorgeous building and so I'm really glad it's
happening. My only question is do we do we know now who the
hotel operator is going to be on the back end.
Um Can someone from the development team respond to all
status question?
Thank you, Mr. Chairman members of the committee. My name
is Liz Butler. I'm an attorney at tap cinius and Hollister.
Um and I represent the development team. The question was
who will be the operator of the hotel. The operator will be
the neighborhood Hotel who is a Chicago based, um
hospitality company and I'm joined by representatives of
the neighborhood Hotel who can just say a sentence or 2
about um, what they do in Chicago. This will be their third
location in the city.
Jonathan
Thank you.
Jonathan Gordon the founder of the neighborhood hotel that
we have 2 locations open now in the center of Linkin Park
at Clark and Wrightwood and a location in Little Italy on
Taylor Street, uh also 2 locations in Southwest Michigan
and we renovate historic structures create hotels in the
center of the community that are serving the neighborhood
first. So everything's powered by local business. Um, we
have spacious living, uh Suites for local Travelers
business Travelers, uh, we like to say you could stay, you
know, as few as 1 night or or many many more months to make
the neighborhood feel like home.
I appreciate that very much as someone who travels with the
toddler and finds expanded space very helpful these days.
Thank you. Thank you cheer. Thank you spot any other
questions from the members of the committee?
All right, seeing seeing none. Um Alderman waguespack makes
the Molson direct passes this item by the same role call
that was applied to establish Quorum, uh hearing no
objection. So ordered the due pass recommendation will be
reported out the next city council meeting.
Thank you.
item 9 on the agenda is an ordinance calling for the
amendment of Municipal Code chapter 2- 68 by adding new
section 268
D 05050 requiring city data to be processed or transmitted
and disposed of within jurisdiction of Chicago. I'm sorry
within jurisdiction of the United States.
We try to introduce during the March 20th city council
meeting.
Um, and I want to give a little bit of time frame here. So
as we know we had a we had a subject matter hearing on this
issue around data centers in January.
uh where we had developers from Loudoun County come to
Chicago and talk about the success around the Investments
of data centers within the city within the county of of
Loudoun County. Um, they went from 100 million dollars in
Revenue to a billion dollars in Revenue. Um, and so we
thought that as a city we would take a look at exploring
these types of investments in uh, parts of the area parts
of the city.
Were Investments have not taken place?
Um
This is the second time that uh that this committee has put
forward recommendations around creating Revenue.
Separate and apart from the traditional method where the
administration's in the past have taken a look at Tiff
sweeps fines fees and property taxes. Uh, we made 1
recommendation around time and attendance, uh, which would
have uh modernized the way that the city, uh takes keeps
track of their employees and would saved a projected 40
million dollars a year in perpetuity, um that they had the
previous administration had taken steps to move forward
with that, um contract and then the new Administration came
in cancel that um, because they were embarking on a a Erp
program with sap as the vendor. Um, but by the time the sap
vendor gets online, it'll be at least 2 3 years which we
would have lost 40 million a year for 2 years 800 million
dollars.
Um, and I bring that up because of the fact that
um, I
am getting a little sick and tired of the fact that we're
not utilizing and modernizing our technology to deliver the
service in an efficient manner where we can realize the
savings and I can tell you that there's hundreds of
millions of dollars in savings, but there hasn't been a
sense of urgency from the previous administration and this
Administration around realizing and modernizing our it so
we could deliver those services.
um
as the committee on economic capital technology, we have
responsibility to build revenue for our city modernize our
technology and data security and find ways to save money
for our taxpayers.
Through this ordinance. We have the opportunity to make
Chicago center for development and data centers create new
good paying jobs and Workforce diversity and bring vacant
property back on the tax row generating millions of dollars
in tax revenue not just for the city but also for Chicago
Public Schools as they receive 52% of the property tax
revenue. This ordinance will also increase access for local
women owned in black and brown owned technology vendors
that are seeking to do business with the city of Chicago.
The ordinance is a historic opportunity for our city to
obtain Revenue in the creative way separate and apart from
Tech tips sweeps fines and fees and property taxes which
unfortunately city government relies on too much.
In february our committee held the subject matter hearing
where we learned that the data centers produced the highest
tax revenue for state and local governments of any real
estate asset in the US. I want to repeat that data centers
produced the highest tax revenue for state and local
governments of any real estate asset in the US we heard
from experts in Loudoun County an area which has generated
1 billion dollars in Revenue since becoming a data center
Hub. We heard concerns that this ordinance would restrict
participation of certain major companies such as Amazon and
Google. However, Amazon and Google have
Not invested in Chicago at the same Pace as other hypers.
hyperscalers such as Microsoft and Oracle.
if institutions want
They should prior.
with other technology firms.
These firms are
Where the energy is cheaper?
And then having our data stored there.
Which in turn is taking away from the city of Chicago?
Yours would not restrict city employees access to emails or
city employee work abroad. The ordinance can be adjusted to
provide secure encrypted VPN access for authorized
Personnel when they are abroad also properly authenticated
and authorized users can access the data over the internet.
If it's public data while it may originally resigned in
Chicago, this data can still be made available on the
internet through web portal or other means for employees to
access.
I say all that because we received a memo, um last week and
we provided a response to the memo to the members of the
committee.
Um, and so
because of the fact that we've heard from other vendors is
Microsoft Google Amazon.
um and and uh Oracle
Um, we're going to go ahead and hold this.
but I'm what I'm what I'm telling the members is that
um, it's going to be hard pressed for me to support any
budget that doesn't have technology at the Forefront
creating efficiencies because I'm not going to be
supporting budgets that continue to rely on.
Tips sweeps fines and fees and property taxes when I know
that we have an opportunity to create revenue and be
creative.
um in in generating Revenue
Which doesn't impact the everyday Chicagoans?
Um, so we're very excited about this ordinance.
However, I want to work and I'm going to work with those
vendors as well as the administration to try to get
something and bring it back as soon as possible.
But I say this to say is that we can no longer continue to
rely on the same old status quo levers of pushing and and
and uh, uh supporting Tiff sweeps.
Fines fees and property taxes. There are hundreds of
millions of dollars in savings within technology and a
challenge my my colleagues to help move forward and think
creatively around how we deliver services for the residents
of Chicago.
so, um
We're going to hold it. But before that I saw them and while
I was back at have a question and then followed by Alderman
Mitchell.
I was just gonna ask if you wanted to the conversation
because you had people here and we had these memos that
came at the last minute.
Um, you know, either from the administration or from the
chamber, uh, so I was just curious if you were going to
continue the conversation or you just want to completely
hold it until we have a
discussion at a later date. Thank you. I'll be right back.
So what I want to do is I'm going to convene working group
for within the committee. Yeah to talk with.
The Big 4 to find out what it is that we're trying to
accomplish.
um
again, this is an opportunity to invest and allow for black
and brown developers and opportunity to get into a field
where there are none.
Yeah and put property.
That's not under the tax rule back on the tax roll create
jobs and create Revenue. I mean this is not rocket science
data center is a real estate deal. That's all it is but
servers in there and there's no reason why a lot of the
issues that have been brought up, um have not been put
forward in a timely fashion. This ordinance has been
introduced for over 2 months.
And we we hear from Amazon on Friday. We hear from Google
on Monday and I heard from Microsoft this morning.
And I heard from the administration with all their concerns
on Friday at 6 p-m.
So, um, if we want to work together to address issue and
find ways to create Revenue, I'm all on board. Um, but this
is about delivering services for the residents of Chicago
in an efficient manner through the utilization of
Technology. Almond Mitchell. I'll follow up on the spot. I
I appreciate um the words. Um,
are you are you um, I mean able to sharing the concerns
that the administration had absolutely and some type of
synopsis of what the the Big 4 you just mentioned. Yeah. So
so so what I'm going to do is I'm going to put forward the
uh, the memo that the administration sent to us at Friday
at 6 p-m.
Um, and then I will send you our response that we provided
during working hours on on uh, Monday, okay.
I'll I'll be able to Spot It.
Thank you Jared. Uh a question that I had put forward. Um
via email as I understood from our previous.
Hearing the concerns related to international data storage
for Chicago's data. What I didn't understand was the
security concerns that we're addressing.
That are created from keeping our data outside of Illinois
where the city so what are what are the security problems
that we're trying to address that come up from having
Chicago's data held outside of the state of Illinois. Well,
I think it's more about creating a a market for the uh data
centers here in Chicago. I mean what you have right now are
the Big 4 that are developing, uh Oracle and Microsoft have
done some developments within Illinois where you have other
players that are that are outside of Illinois that because
the energy is cheaper and so for site selection purposes
are are are have deemed that it makes business sense in
order to locate their facility outside of Illinois, but yet
received the data and charge us for this type of storage.
And so what we're trying to say is that if you're going to
benefit from us paying for the storage that lets benefit
overall from creating jobs and property tax here locally.
So remember 92%
um can be stored outside of the the state of Illinois.
We're asking for 6 to 8% to be stored here locally. Um, and
it it makes good sense to have data stored locally. Um, and
again, we're trying to create a marketing. I think I
understand and so they they establish these facilities
outside of Illinois because energy electricity is cheaper
outside of Illinois and also take into account. You take a
look at Indiana right to work state. So the cost of of all
these types of uh, infrastructure improvements while are
cheaper. So is it then reasonable to also believe that we
would be charged a higher rate for?
Data stored in Illinois or Chicago? Because of the energy
costs being higher. Well, it depends right? So we're
requiring at least 8% here. We're not saying that all of
this has to be stored here. There's still allowed the
ability to store within the United States of America.
For for the for the primary all I know but the data that
we'd be storing in Illinois or Chicago is it I'm just
asking is what so so I I don't want to speak in
hypotheticals. What I would say is that
it would make to to to your point.
Theoretically it could but also take a look at the property
taxes and jobs that and that would be creating locally as
well to offset that increase as well. Okay. Thank you, too.
Thank you.
Alderman waguespack. Yes chairman. Actually, I wasn't done
but I just wanted to Circle back and you know, I wanted to
say a first commend you for bringing this up because we do
need to have this discussion. Um, I think you know driving
this conversation as you have is beneficial to the whole
city, you know, we've got a forum, uh a plan for how we're
going to do this for the next few decades and if we just
let it go as we have over the last decade or so, um, we'll
get overrun. So I first want to commend you for bringing
that up, um, you know, and I I can't recall if you uh,
Were part of it. But um, if you remember we had this issue
about um, Paul centers many many years ago, um where we had
an Administration looking at privatizing water billing and
we found that the uh, all the data all the information was
moving to Bangladesh of all places and that was just by,
you know digging that we found that out and we were able to
hold it up. But um, so I appreciate you taking this on. Um,
I think you should add the sister agencies to this
conversation. I see that in the memo, um that was sent by
the administration, um, you know, CPS responded talking
through uh, what their positions are with um,
How they contract out and this brings up a lot of uh, you
know, thoughts that I'm sure you have reading their
response as to what have they been doing with their data
and the contracts that they have when they sit there and
tell us as Alderman that they can't share data with us
about simple things like budgets.
And that they come back with this response it it kind of
uh, you know creates a different thread that I think we
have to go down and then I I look further down.
You know, I appreciate the ca the park district response.
But the the city College's response is hopefully, uh
willfully inadequate, um, you know, not even attempting to
uh respond to you. I think in a way that uh outlines a
little takes a little bit more time than uh,
5 words to to put something together. So I would I would
encourage you also to call them to the table and say um,
are we Partners here or are we going to continue to to
operate on these islands that allow them to um, sort of
continue to do the things they do that. Don't benefit the
whole city. So thank you for driving the conversation and
look forward to working with you on it. Thank you. Thank
you Alderman wages back. Um
everyone knows that when I introduced an ordinance, that's
my way of trying to deal with an issue and try to find
Solutions always willing to negotiate but what you saw is
just a uh, no.
Not know, but but just know and so when when we're talking
about creating revenue for the city, I think that
everything should be on the table.
Except for the continuation of Tif Surplus fines fees and
property taxes. So there's there's ways to create uh,
efficiencies efficiencies that create Revenue. Um, there's
all types of things that we can do around it. And that's
why I'm pushing on it is because
I I've I've supported property taxes in the past. So I'm
not I'm not afraid of voting for that but it's tough for me
as a legislator to go back to my constituents and say yeah,
we need more Revenue but we haven't looked under all the
sofas yet. We haven't checked in the sofas for for all the
savings. We just we need more money. I just I just can't do
that. So that's why um, um, we look forward to working with
um,
Uh the administration as well as the sister agencies, uh to
find out what are some of the solutions not just know
anybody could say no.
But what what are what is your recommendation to create
Revenue with some efficiencies for the city of Chicago? So,
um, I appreciate everyone's uh attention on this we're
going to um, send an email out and if you're interested in
participating in this, uh, subcommittee around data
centers, uh, please let my staff know and then we will go
from their almond almond.
Oh you want to be on okay almond mids has already sent you
not to do it.
Oh, I'm sorry.
Hi chair, it might not have been worth. Sorry. Thank thank
you for um bringing it forward this conversation. I'm also
interested. Okay, and uh,
And more. Um, I'm also interested in having the sister
agencies as Elder wages back mentioned as well as um, the
um Department of procurement and the um Department of
environment at the table, please absolutely. Thank you.
Cool. All right, seeing no other questions or comments.
I'll be that there's no further business. May I have a
motion to adjourn by the same roll call vote that was
applied to determine the quality of so moves here, you know
objects are ordered the meeting of the committee on