mic check 1 2 mic check 34
Check check 1 check check 2.
check
Want to mute it?
Now with this loudness this evening this morning. I'm just
telling you right now now if you can't sit down and be
quiet until the meeting starts and you have an opportunity
to talk.
You will have to leave.
I would like to have the Quorum in this room. And if you
cannot be quiet sit down and be quiet until it is your
opportunity to talk.
When the meeting will start when we have Quorum, you know
the rules.
As the seasons come and go.
Be a harvest for the world.
Is coming up next is back to coming down. So we're 1 short
Lenny's back in the bathroom.
somebody
and everything is going wrong.
Nobody Knows the way you feel about it.
That's only, you know.
You can't leave it alone.
And you decide to go in alone. I know.
It never paints to give up.
The feeling is strong.
Baby, yeah.
I keep coming back to you now.
I keep coming.
Good morning, everyone. Happy Monday.
Welcome to the uh finance committee meeting.
apologize for the delay
But we will get started.
We will have a roll call to establish quorum.
Vice chair Conway
alderman laspata
Alderman Hopkins
Alderman Hall
Alderman Mitchell
Alderman Harris
Alderman Beal
Alderman Ramirez
Alderman Quinn
Alderman Lopez
Alderman Moore
Alderman Curtis
Alderman OSHA
Alderman Mosley
Alderman Scott
Alderman brunette
Alderman Cardona
Alderman wagons back
Alderman Ramirez
Uh, excuse me.
Remote, right.
Alderman Smith
Alderman Vasquez
Alderman Reilly
alderman kutson
Alderman Martin
Alderman Silverstein
chairman dowels here
We have a quorum we have 15 members.
The following aldermen have requested to be remote for
reasons under the provision of rule 59.
Alderman Rodriguez
Alderman Ramirez Rosa Alderman Ervin Alderman Rodriguez
Sanchez Alderman Lee Alderman Talia Ferrell Alderman Taylor
Alderman viegas and Alderman mitts. Can I have a motion to
allow these Alderman to attend this meeting by remote means
so moved by Alderman Vasquez all those in favor signify by
saying I
post and the opinion of the chair the eyes have it. I'd
like to confirm that these aldermen are with us this
morning Alderman Rodriguez.
Alderman Ervin
Alderman is present Alderman Rodriguez Sanchez. I'm here.
Alderman Lee
Alderman Talya Ferro Alderman Tela Farrell's president
Alderman Lee is here. Sorry chair.
Alderman Lee is present. I apologize. I got you Alderman
Taylor.
Alderman vagus
Alderman mitts
president Madam chair Alderman Ramirez Rosa Alderman
Ramirez roses present Madam chair Alderman Rodriguez
Alderman Taylor
Alderman vagus
let the record reflect that this is the public hearing that
is being held pursuant to the requirements of section 147 F
of the Internal Revenue code of 1986 as amended referred to
in this hearing as the code.
Notice of this public hearing was published on May 31st 2024
on the website of the office of the city clerk of the city
of Chicago.
I would like to uh, hold up the notice.
And uh ask that we give this to the court reporter.
I will now ask Brendan White assistant commissioner in the
Department of Finance to explain the background for this
hearing.
Mr. White
thank you chairman.
Hefra stands for tax equity and fiscal responsibility act
which is a federal law. This hearing is a required by this
law to provide the public and opportunity to comment on the
plan of Finance for certain kinds of tax exempt bonds and
notes and the use of proceeds of such bonds and notes
following the public hearing the city must approve the plan
of Finance for the issuance of bonds or notes before any of
the tax Exempted debt can be issued approval can be by an
ordinance adopted by the city council or buy a certificate
signed by the mayor.
Thank you very much Brendan.
This is a tephra hearing regarding the proposed plan of
Finance, which is described below for the city of Chicago,
which I will refer to as the city to issue Chicago O'Hare
International Airport 1 General airport revenue bonds. We
will refer to these bonds as the airport revenue bonds to
the passenger facility charge.
Revenue bonds, we will refer to them as the PFC revenue
bonds 3 the credit agreement loan notes. We will refer to
these as loan notes and 4 commercial paper notes. We will
refer to those as CP notes, and we refer to each of these 4
collectively as airport obligations.
The airport revenue bonds and the PFC revenue bonds will be
issued and aggregate P principal amount not to exceed 3
billion the loan notes and CP notes shall be issued from
time to time provided that the maximum aggregate amount of
loan notes and CP notes to be outstanding at any 1 time.
She'll not exceed 1 billion dollars exclusive of unpaid
interest on the loan notes and CP notes and fees.
pursuant to the plan of Finance the proceeds of the airport
obligations will be used for the purpose of a the payment
of reimbursement of the cost of certain capital and
projects at the Chicago O'Hare International Airport.
Which capital airports include airport Airfield terminal
concession roadway and Airport transit systems facilities
and improvements in other related.
Facilities and improvements at or near the airport and the
costs of providing sound insulation and noise mitigation at
schools and Residences in areas surrounding the airport
including
without limitation capital projects included in the
terminal area plan the O'Hare modernization program and the
capital Improvement program at the airport.
B the refunding or refinancing of General applic airport
revenue bonds special facility revenue bonds commercial
paper notes credit agreement notes and or passenger
facility charge revenue bonds, which have been issued for
the purposes of the airport.
C
cash flow needs of the airport and funding costs of
security projects and funding the costs of acquiring land
and the relocation of facilities related to the airport D
the deposit of monies into certain funds and accounts to
accomplish the purpose of the airport obligations,
including capitalizing a portion of the interest therein.
e funding the costs related to the acquisition of any
leasehold interests of any Airline or other tenant of the
airport including the contractual right of any Airline
under any Airline use agreement or special facility
financing Arrangement and F the payment of costs issuance
costs of issuance incurred in connection with issuing the
airport obligations.
The airport is owned and operated by the city.
The city will issue the airport obligations pursuant to the
powers as a home rule unit of government under the 1970
constitution of the state of Illinois and ordinances
adopted by the city council of the city.
The airport obligations will not be a general obligation of
the city the state of Illinois or any political subdivision
thereof, but will be a special limited obligation of the
city payable from airport revenues and passenger facility
charges.
The airport obligations will not constitute an indebtedness
of a loan of credit of the city the state of Illinois or
any political subdivision of the state of Illinois within
the purview of any constitutional limitation or legal
provisions.
No holder of any airport obligation will have the right to
compel any exercise of the taxing powers of the city the
state of Illinois the United States of America or any
political subdivision of any of them to pay the principal
of Premium if any or interest on the airport obligations,
Written comments relating to this plan to issue the airport
obligations must have been submitted to the committee of
Finance 121 Northwest South Street in Chicago, Illinois, or
to the committee on finance at city of chicago.org. Not not
later than 3:00 p.m. Thursday June 6 2024
Let the record reflect that no written comments were
submitted.
Ladies and gentlemen, if any Resident taxpayer or other
interested person attending this hearing desires and
opportunity to express their views for or against the
proposed plan of finance and issuance of airport
obligations.
Uh, please do the following.
For those attending this hearing in person. Please come up
to the mic in the hour when your name is called and for
those who have called in on our toll-free phone number,
please enter number 9 on your phone.
Or Star 9 on your phone to notify the host of the call-in
number and once you're called upon provide your comments.
Please enter star 6 to unmute your phone each speaker will
be limited to 3 minutes.
we have
a number of speakers that have signed up for
this test for hearing
first 1 is Jessica Jackson.
Good morning. Um.
my name is Jessica Jackson, and I'm here at this finance
committee meeting because
I want to talk about the fact that in a few minutes. We're
going to hear from all these people.
About how they want to have housing and the money for the
airports and all of this, but what you're not going to
hear.
Is for money that's earmarked or designated to the black
community now, you're not going to hear that.
You're going to hear.
Black and brown you're going to hear undeserved
communities. You're going to hear minorities. You're going
to hear marginalized communities. You're going to hear the
most vulnerable communities. You're going to hear those
type of terms.
But what you're not going to hear.
Is money and financing that's specifically for black
people.
But you're going to hear statistics.
That are all going to compare black people's problems
because clearly black people are the litmus test.
For everybody but we don't get no money.
So what we've done because you all I believe think that we
just come down here. Just talking just to be talking but in
fact there are different pockets of people around the city
right now trying to deal with what's really going on in
Chicago and especially the fact that black people are not
getting any resources in this town and how everybody is
climbing on our backs to get everything that they need and
how everybody wants to be respected for their struggles
their religion their hardships their needs and other
countries, but they don't want to deal with black America.
So what Black America has done in this city has made a
contract with black Chicago that we're going to present 2
City Hall and we're going to call the meeting for the
aldermen that we think.
would be open to push this now all the aldermen that we're
pushing that we're selecting are not black because we
understand that all black Alderman don't have the backbone
to do what's necessary to stand up for us. We understand
that we have to pull to other communities and we're going
to do that. But as you all move forward today,
And make sure when you all climb our backs.
To be the reason why you get your contracts the reason why
you want to put affordable housing all over the city to
make the city look like the projects all over town because
in about 5 years all this new affordable highrises going
look like projects.
Make sure that you prepare to get our money because if you
don't give us our money we're coming for you all seats.
Now, you all can think it's a bluff you all can take it how
you will but we coming for them seats. Everybody is not
going to climb our backs and get paid any more.
Thank you. Miss Jackson. The next speaker is Taiwan Sims.
Well, Mr. Sims is coming to the mic. I would like to
acknowledge that we've been joined by Alderman Hall Mosley
and Silverstein and you'll be counted towards Quorum and
Mitchell.
Good morning. Good morning committee. Good morning
everybody.
So yesterday, I walked from 110th in Michigan to the Daley
Plaza. I did that.
For a reason personal, but I'm not going to cover that.
Just because right.
so today you all are going to talk finance and how we need
the do this this and this for x amount of other people, but
the terminology used is black and brown and then it's
marginalized. It's underserved in a couple other things
while I walk from 110th in Michigan yesterday to Daley
Plaza. And as I walked I was reflecting, but don't not only
reflecting but just checking the scenery.
It's like walking through a different. It's like as if once
you start passing through the city, especially when you're
in the far south side, and then you get into what we call
the low end which will be Brownsville. Then you get into
South Loop and then you come into the city.
It's amazing to see how the changes.
It's amazing to see the disparity. It's amazing to see how
wow.
But there's a 16 billion dollar annual.
What?
person to use
Right. Now the city is what 13 past 13 billion dollars in
the CIA what 51.4 billion dollars in debt?
No, no 51.4 billion dollars in bills with 38.4 billion
dollars in debt.
And I wonder what they pulled this so-called money from
when they say we've just loaded 70 million dollars to the
new arrival effort.
versus individuals black Americans who have been living in
these conditions
Environmental terrorists terrorism, um food. It's it's it's
out of its
it's amazing.
To see how everybody else is gaining and yet we're being
pushed down down down down all the way into non-existence.
But don't be don't be willing to speak up about that. Then
you're attacked in this city.
Then your targeted in this city, especially when you can
say it in a way that everyone understands.
Everyone uses this terminology black and brown. Well I've
seen uh, I'm I'm from my mother lived in Humble Park 13
years Armitage and Kila.
So I see the change in in this area. I just was just in
Humble Park. I was like, wow, I I couldn't imagine the
changes yet when I go further and it's still the same
thing. They took down the project buildings. They took down
everything. They move they they try to displace us out of
the city into the suburbs. They see that didn't work. So
now it's just like forget it. Let's just murder them out.
We got to find ways to murder these black Americans out.
Economically, so y'all but the most expensive are and
education, right?
What health care and then?
people care
we get none of that. But today y'all going to talk
financing y'all going to talk about how y'all Finance so
y'all going to ask for money.
But we not getting thank you Mr. Sims. Our next speaker is
Teresa TJ Hughes.
followed by uh, Miss Zoe lei
Um, I want to acknowledge Alderman Moore who is joined us
for quorum.
Miss Hughes
Good morning, Madam chairman and my alderman.
Pat down appreciate the opportunity to speak. I'm going to
be very very short. I've been saying this for a while.
my
concern is the fact that the department of purchasing or
procurement services.
Has a 128 million.
but um
128 million, um contract that went out for this year.
And out of that 128 million black people only received less
than 3% Hispanics received less than 30.
uh
No, black people only received Less Than 3 million
Hispanics received less than 30 million and the Asians
received less than 6 million. So the percentages are
similar 3 less than 3% which is 2%
26 percent and uh 6% My question is when are you all going
to haul Eileen The Last Quest who's the cheapie CPO from
purchasing into this city council like the Hispanic
Alderman majority hauled in the CTA president and had him
to speak. We want you to have the same vigorous.
Anger to bring her in because the mayor has fired her since
January of this year and her and she is still here. How
dare she defy you.
How dare her?
And it makes you all look like punks to be not not not all
of you. But you know who you are. I have sent letters to
every ottoman in here and definitely all of the black
ordering have not had 1 ottoman to return of not even a
phone call or anything. The only person that talked to me
was Alderman Lopez. He said that he was going to give us a
meeting. Do you remember that ottoman Lopez?
Okay, so I'mma hold you to that right?
Okay.
So ottoman Mitchell told me that the the chairwoman or the
chair person you all keep changing. These terms is going to
have a meeting with me Stephanie.
Coleman that didn't happen. She didn't even make a call. So
it's like when are you guys going to stand up for black
people in this city?
And hold these other people accountable, but just walking
all over us. That's my point for today. And I appreciate if
you would uh do something. Thank you. Thank you. Miss
Hughes next speaker Zoe Leigh
uh, good morning, uh
well, I know that this is uh for
more money going for the money laundering.
For affordable housing. But um since we go to this we since
we talked about the Illinois constitution though. I want to
get into section 15.
What is the right of eminent domain private property shall
not be taken or damaged for public use without just
compensation as provided by law. So that happened to my
property my family's property. Um, we have 3 vacant Lots,
um that the city of Chicago for some reason thought they
owned it which we've owned it since 19 December 13th, 1965
the the city never owned it but because you guys look at
ages because my Godfather's 80. My mother is 75 y'all hope
and you know that they're not tech-savvy Savvy, you know,
they don't know how to get here. Some of them have health
related problems. Dementia all that y'all do what y'all do
the government and take our properties and y'all know that
that's generational wealth. Now, why do I have to pay 2500
to $3,000 for a 1-bedroom apartment when I had a whole
building that was paid off.
I have 4 apartments and I had commercial property at the
bottom. I have a brand it's called uncomfortable truth
lifestyle and I had stopped wearing it for a while because
I was like, you know well in hopes of you know being
politically, correct.
but
none of y'all are politically, correct.
None, so why do I have to stop wearing my paper p****
piece?
When I have to deal with when that's my model, and that's
all I want and that's what the world needs, but I got to
deal with the corruption in Chicago.
The corruption is never going to stop.
Unless we stand up.
And we are standing up America is watching the world is
watching and like a lot of people always say, oh black
people. We need to organize. We need to organize.
We're getting fed up. That's like we were fed up in
Montgomery Alabama when it came to them buses, and
eventually we said f that and start walking people was
walking in a hard bottoms getting Hills they didn't care
but they weren't going on those buses because they weren't
respected. So if y'all think that y'all going to continue
to disrespect the black community, especially in 2024.
Y'all have lost y'all mind. This is election year and like
I said Off principal Chicago will turn red.
because y'all don't care how does too many black people that
are elected officials and the Democratic party and our and
and our community still look like they look why am I this
is my 33rd week coming down here about my money.
The city of Chicago demolished my building that was my
building.
Thank you. Miss Lee. Our next speaker is George, Blakemore?
followed by Kimberly Sanders Saunders, excuse me
Mr. George, please
reading this month to mental that airport that Bond money.
I'm I'm I'm staying focused.
How many black vendors do you have at O'Hare?
But how many contracts?
the black people receiving from oh hell
I'm asking you a question. You don't have to answer this,
but we have a black face.
in high places and you're not
Doing anything for black people, but it's something wrong
with us.
Not only you.
But it's something wrong with the black community to allow
this to happen on the plantation the white man made.
Of a free man a a slave and the n-word I can use.
but you wanted to treat me like 1 I did not allow you to do
this, but you
Is something wrong with you and all of you black ones?
That's who and the young man say Mr. Blakemore always beat
up on the black off because you would expect you all to
serve us but you don't because the machine that put you
there serve the Democratic machine all of these people are
Democrats know 2 parties sisters No 3 party sisters the
miseducation of the black men.
The miseducation of the black man and the black man have
fallen or has fallen in love with his enemy you love you.
You hate your nappy hair.
Yeah, hey big no and your back butthole you fall in love
with the Enemy, right? And I put on this red hat. They say
Trump's a racist bad news, too. I'm going to read on my way
to Freedom land.
On my way off of both of these plantations, but right now
I'm making a choice.
And I'm going to show you better than I can tell you I
voted for Trump before this is a communist system of 1
party system.
A plantation system the most corrupt city in America is
Chicago and what happened to B?
You recycle 1 out and another 1 come in.
another 1 come in
Is something evil here is something corrupt here is
something unamerican here. But when I got up you I know you
you gonna get out you the 1 that need to get out and all of
these.
Thank you, Mr. Blakemore.
Miss Saunders Kimberly Saunders
Good morning. My name is Kimberly Saunders. I currently
live in the 27th Ward. I was born and raised in Chicago. I
grew up in Bronzeville 45th events in my grandmother owned
2 buildings had a non-for-profit called near South peer
group. I am here today because I live in the 27th War for
12 years and I am a current developer licensed contractor
that is currently purchasing property in the 16th ward with
my own money and uh with a couple of other people that I
deal with. I have noticed a disparity of development
throughout the city and I have did some research and I have
went to the dive I have looked at the looked at the
diversity of the funding and I was looking to see to speak
to someone in the finance department because I have been
doing some typical Focus type groups where I have found out
that we have.
Just some misunderstanding and I'm here to bridge the gaps.
I also want more opportunities for owners that are um
That currently owners and developers that currently have
been investing their own money. I wanted to see about
creating an opportunity where that they will be able to go
and get the property in the area with some sort of fit city
funding. I have gotten information where the city land bank
have taken funding properties back and they have offered
them to certain developers and allowed them to be able to
get the property. So I was interested in sitting down and
speaking with someone because I have been made aware about
the current also RFP where money has also been given for
felons are coming home and also, uh potential criminals
where they're giving housing with um, non for-profits that
deal with, uh, they call them programs when transition
programs. So again, I'm looking about creating make
creating more affordable housing for not low-income
preferably but for middle class and more luxury housing in
these communities that I am aware of
which is also the 27 for which where I live at and also in
the 16th ward. Thank you.
Thank you, Miss Saunders.
want to acknowledge, uh, Alderman Hopkins has joined us and
will be counted towards Quorum ladies and gentlemen, this
concludes the public hearing on the proposed plan of
Finance for the city of Chicago to issue Chicago O'Hare
International Airport General.
Airport bonds revenue bonds and passenger facility charge
revenue bonds in a maximum aggregate amount not to exceed 3
billion dollars and to issue credit agreement loan notes
and Commercial paper notes and maximum aggregate amount of
loan notes and CP notes not to exceed 1 billion dollars in
any 1-time outstanding let the record reflect the public
hearing on this matter was concluded at uh, 10:40 10:50
a.m. June 10th 2024. This concludes the Tetra hearing.
test for hearing
Okay, we have a second Tara hearing.
This morning and this is for the multi-family housing
revenue bonds for the United yards 1A project. Um aldermen
have already been uh roll called and a quorum has been
established for the first Tetra hearing so we will go
immediately into the second Tetra hearing
um, let the record reflect that this is a public hearing
that is being held pursuant to the requirements of section
147 F of the Internal Revenue code notice of this public
hearing was published on May 31st, 2024 on the website of
the office of the city clerk. Um, I am handing up the
notice to the court reporter to
included in a copy for the record
I will now ask Brendan White assistant commissioner in the
Department of Finance to explain the background for this
hearing Mr. White. Thank you chairman.
Tera stands for tax equity and fiscal responsibility act
which is a federal law. This hearing was required by this
law to provide the public and opportunity to comment on the
use of certain kinds of tax exempt Bond proceeds following
the public hearing the city must approve the bonds before
the tax exempt can be issued approval can be by an
ordinance adopted by the city council or buy a certificate
signed by the mayor.
Thank you Brendan. Uh, this is the second Tara hearing to
provide updated information regarding the proposed plan of
Finance to issue multi-family housing revenue bonds series
2024 and an amount not to exceed 25 million for the United
yards 1A project, which we will refer to as the bonds in
the 20th Ward. The proceeds of the bonds will be loaned to
New City Redevelopment limited partnership in Illinois
partnership, and we will refer to them as the borrower to
finance and affordable housing development, uh United yards
1A project consisting of the acquisition from the city of
certain vacant land located at 1515 West 47th Street in
Chicago, Illinois, and we will refer to this
Says the 6 story project site number 2 the acquisition from
an affiliate of the borrower of certain vacant land located
at the southwest corner of 47th and South Marshfield Avenue
in Chicago, Illinois with anticipated street addresses in
the range of 1635 through 1643 West 47th Street or
alternatively 4706 through 12 South Marshfield Avenue in
Chicago, Illinois. We will refer to this as the 3 flat
project site.
excuse me number 3 the construction of the 6-story project
site of a 6-story new construction building with 45 units
of family housing and 4 the construction of the 3 flat
project site of 2 3 flat buildings with a combined total of
6, 2-bedroom units. Although the proceeds of the bonds may
be allocated in different proportions to the 6-story
project site and the 3 flat project site. The maximum
amount of the bonds to be issued to finance. The 6 story
project will not exceed 25 million and the maximum amount
of bonds to be issued to finance. The 3 flat project will
not exceed 8 million dollars. The borrower will be the
initial owner slash operator of the project.
Celadon Blackwood gp1 LLC in Illinois limited liability
company, we will refer to this as the general partner is
the general partner of the borrower and Celadon Partners
LLC in Illinois limited liability company is the managing
member of the general partner.
The city will issue the bonds pursuant to its powers as a
home rule unit of government under the 1970 constitution of
the state of Illinois and an ordinance adopted by the city
council of the city.
The bonds will not be a general obligation of the city the
state of Illinois or any political subdivision thereof, but
will be a special limited obligation of the city the
principle of of
the principle of Premium if any and interests of the bonds
will be payable solely out of the revenue of the United
yards 1A project and other funds pledged and assigned for
their payment by the borrower in accordance with the
borrower loan agreement between the city and the borrower
The bonds will not constitute an independence or an
obligation of the city the state of Illinois or any
political subdivision of the city of Illinois within the
purview of any constitutional limitation or legal
provision.
No holder of the bonds will have the right to compel any
exercise of the taxing power of the city the state of
Illinois the United States of America or any political
subdivision of any of them to pay the principal of Premium.
If any or interest on the bonds written comments related to
this plan to issue. The bonds must have been submitted by
email to the committee on finance at city of chicago.org
not later than 3 p.m. Thursday June 6 2024 let the record
reflect that no written comments were submitted ladies and
gentlemen, if any Resident taxpayer or other interested
person attending this hearing desires and opportunity to
express their views for or against the proposed issuance of
the bonds. Please do 1 of the following but those attending
this hearing please come up to the microphone in the aisle
when your name is called and for those who have been called
in on the toll-free phone number.
uh, which we don't have any of so I'm going to
skip that
uh, is there any member of the public taxpayer interested
person who wishes to make a statement with respect to this
matter?
Uh, we will begin with Jessica Jackson.
Okay, so
I'm back as the rest of us will be so that we can continue
on what it is that we're talking about and that is
financing for the black community. Now, what we're going to
see in a few seconds is you're going to see the black
Alderman and all the women get up start moving around.
You're going to have your assistant mayor William Bernett
and Pat Dao sit there and not pay attention. You see that?
see see
Stay down.
This is how we end up being constantly overlooked.
Because you see our leadership.
Look at them now the bad thing about recalling Brandon
mayor. I mean, uh recalling mayor Brandon Johnson, which is
only 1 bad thing about that.
Is that if we recall him and his successful William Bernett
would be the mayor?
How horrible is that?
You got a ultimate that's not even courteous enough.
That has to uh, what show his authority.
By doing ignorant things like what you see him doing now?
Someone who has to flex their muscle.
By being behind maybe the Napoleon complex being tallest
these tables. And so now you have to walk around and
disrespect us.
This is what we have for black Chicago leadership.
Now personally, I don't have beef with you David Moore and
I really wish that you would resolve this situation with
Zoe's mother because you were the first Alderman that I saw
that was on TV speaking against the money that 51 million
for the immigrants illegal immigrants, and I called your
office to congratulate you on speaking up.
So I want you to continue on with that same type of energy
and make this right?
So that she doesn't have to come and get at you from this
mic like that. You know, just do what's right.
the rest of these all the men in here you got some white
ones in here that
Maybe they think they're being entertained by us. And maybe
they think that they seats can't be taken. Then. You got a
few that's righteous in here and we're looking for them to
do the right thing. But to think that we're going to
continue to tolerate this ignorance.
From our black leadership you all are highly mistaken, and
I don't know how you got to this place of denial to think
that black people so weak that you gonna keep doing
whatever you want to do and ignore us but it's high time
that you snap out of it. And if you can't we gonna help you
come election time. We gonna help you find yourself. We're
gonna help you find your way home to a unemployment Booth.
Thank you. Miss Jackson. The next speaker is Zoe Lee.
um
Like I said, I know it's we got 1 more time to speak. So,
you know, I got 9 minutes today. But like I said, I've been
coming out here for 33 weeks. This is my pipping week and I
just want someone.
to go to Mary Richardson, Larry
Jason Leigh
Have Alderman David Moore.
my mother sit down
and think of a number because not only are we dealing with
eminent domain. I'm also dealing with insurance fraud on
the city because my mother put in her claim.
when they first demolished the property
um within the time frame statute of limitations for
Illinois, uh insurance is 2 years my mother put it in right
before the first year and it came back as in as uh denied.
Um, then when she went to go try to get an attorney and we
went through secretary white. We went through a whole bunch
of people to help us get an attorney.
They go to the attorney the city goes to the attorney claim
adjuster Dennis Raphael who still works here and told them
that the statute of limitations would have expired and we
have a letter from the lawyer that said however, that's not
the case but the issue is no 1's to fight the city of
Chicago because they know that they won't get any more
business. So
I had to put on my boots and I had to do my research and
we're in prosay and we are in federal court and it's been 7
months since we got a decision and you know why it's been 7
months because the federal judge cannot believe
how incompetent
the city was when it came to all the paperwork that y'all
don't have no paperwork, but we have all the paperwork
including the deed and the fact that when he does because
you know, we have a very good uh a judge when he does, um,
push this through it'll open a floodgates of how you guys
have been doing this to our community, especially seniors
for decades. That's how y'all make our money. That's how
y'all got all these vacant lots to do all this.
Affordable housing, you know, that's that's how it works.
You know, it's saying and you think people don't know you
you deal with these white private developers with this
crooked black clergy with these and all y'all care about is
votes and money and y'all think because we don't have the
the money part y'all can just ignore us.
It does not work like that specially in this generation. I'm
not playing with y'all y'all not gonna play with my mother
and you're not gonna play with no black seniors. This is
our generational wealth and we will never ever get to where
we need to go if you guys keep taking our properties, I'm
not the 1 2 3 4 5 or 6 as a lot of other people that are
watching us so y'all can whisper and do whatever you want,
but we if people are watching Chicago to see how what
Chicago is going to do, and we're not going to stand for
this. Thank you, Miss Lee.
Next speaker is Taiwan Sims.
Um, hello everybody. Once again Taiwan Sims. I got a report
card. So Chicago is for national state is considered poor.
With 38.4 billion financial gap as of January 20 2024. This
means that the city has 13 billion dollars in assets to pay
51.4 billion dollars in bills and each taxpayer would need
at least to contribute 42,900 to close the gap. I'm
unemployed Chicago's financial problems are largely due to
unfunded retirement obligations that have accumulated over
the years to see
But he also has the largest amount of underfunded pension
the benefits.
In the country at over 33.7 billion dollars.
Zoe
Spot on I love that.
So y'all just like forget forget. Well y'all going into
that age though the age of retirement. I'm only 43. I got a
couple I got like 30 some more years to consider what's
going to happen to me, but my mother was 65 when she was
murdered off.
So she would have been in that decision of y'all not
deciding. Oh, well what what we we don't have to pay them.
Now I can imagine our counterparts they going to fight they
got lawyers. They got all these different things. But the
black Americans I can imagine that that that that that
money right there at 33 some point some we took a large hit
and take a large hit and continue to take a large hit.
But here it is today. Once again, y'all gonna talk this
saying black and brown.
Y'all going to do that y'all hear the finance, whatever it
is. Y'all here to get this money.
But the Black American black Americans here in Chicago not
getting anything.
Nothing. Neither zip zilch. I don't know what other
language to speak it.
And still with represented by not only black Americans
here, but our counterparts also.
Who have and some in a lot of ways got alongside us not
being represented.
Or not being handled fairly the equity in this city is a
bus.
I just read it and if y'all 30 38 point something million
dollars in debt, and if it's a 42 what 42 42900 has to be
paid per person.
The set it's 70. It's what a 48% unemployment rate amongst
black American men in this city. How how do y'all
compensate for that?
What do y'all where y'all pulling this money from? I guess
the old people who should have been getting some pension or
some type of retirement plan. What y'all pulling this money
from Education Health Care.
What y'all pulling this money from because we not seeing
it.
So I want to I I truly want to understand how
is this city's been really being financed and who is it
being financed by because I believe the black bodies that
fall in the street. I believe the underserved. No not
underserved. Just the
kick down community
Which is Black America?
Thank you Mr. Sims.
Our next speaker is uh Teresa TJ Hughes.
Yes, it's still morning. Um the Quorum is no longer here,
correct? Because I thought it was 17 people.
17 Alderman that's supposed to be for this 34 member
committee, and I've counted like
10
1 2 3 4
10 so is this legal to be passing stuff when you don't have
your Quorum because I'm just asking Madam Madam chairman
because I was counted at the beginning of the meeting.
Okay, but they're not here now.
You want to continue with your well? That's that's a part of
it. I we're not here to answer your questions. You've made
a point and you need to go ahead. Okay. The other point is
all these people. That's hello you all on the videos. You
need to have you down here where the people that are paying
their taxes for you and you're getting this extra little
money for supposedly being on these committees from what I
understand and you're not here.
So, uh, so this all this money that you want us to
to uh agree to
letting this go through. Well, we we can't agree you all
have to agree. But so are we going to get some black
contractors on these houses that are going to be built?
I like to know that.
That is my thing 2% black people black Alderman wake up 2%
When are you going to get Eileen out of there? And where
are you going to do something about Jamie?
Reed what the with the aviation she ain't helping helping
black people either. I mean, I know she got the 2 little
black or the 1 black head, but don't get fooled by smoking
mirrors. It doesn't matter. We the people in the city of
Chicago and I'm not a contractor but I advocate for my
people and you serve right there with the glasses on with
you. Yeah you
It's not funny.
You know.
It's not funny.
and I'm trying to be a better Teresa than I used to be back
in the old days because I might have would have tried to do
something, but I just want to say
You all need to take us serious. We have voted you in for
you to serve us not for you to serve yourselves.
And stop lying to the people.
Because you all just lie.
You're grown.
get some
corners
And do the right thing.
stopped coming to our communities taking over our
properties and I'm a senior messing with us seniors because
we're not going to take it either. We got young people like
Miss Jessica and Miss Zoe that we're going to follow them
and we're going to be switching over to read also.
That's it.
Thank you. Miss Hughes. I want to acknowledge. Uh Alderman
Curtis and Alderman CEO Lopez who have joined us and will
be counted towards Quorum. Uh, the last speaker is George,
Blakemore.
Black Faces in high place
It is truly sick. Now. I'm gonna give you an example.
Of Michelle Harris War have about 4 or 5 or maybe 6 senior
build.
For the who developed those senior build a white man.
And now they're going to a halt or a neighborhood Economic
Development.
Uhuh economic development for whom and who's doing the
development?
Who is the the the developer?
But they're not black.
Because you don't have no money to develop a a chicken
cook.
So the games that were being played here.
The games that didn't play here. That's
keep it real.
It's something evil here.
with
dirt
and now you pop up a black face in a high place you just as
corrupt as birth and all of y'all are because the the
people seem to think that they vote people in a corrupt
machine.
They pick out who they want you to vote for you. Don't
vote. Nobody in.
You don't have no power.
The games are being played that little machine say I'm
gonna pick out George Blakemore. They gonna Finance me and
everything, but I will give my allegiance to not to the
people but to that corrupt machine and all of them down
here are 690 what Mr. Bmore you say they were doing 69.
with with the money and and don't be MBE and WBS blacks are
at the bottom of a social economic, uh, uh system in a cad
system.
N a class system the bottom at the bottom you say yeah, but
you got black faces.
Black Faces, just take that wig off.
You see my hair is nappy. You see my nose is Big you see my
lips affect.
I'm back.
identify the black
And we are at the bottom. Stop playing games with black
lives because black lives matter. No white lives matter in
America does black lives matter, Mr. Blackmore. No white
lives matter. So I hope I've educated you. You don't vote
them in the machine picks who they want to represent them
and not you.
so the games that people play
every night in every day
Thank you, Mr. Blakemore. Ladies and gentlemen. This
concludes the public hearing on the proposed plan for the
city of Chicago to issue.
Uh the not to exceed 25 million dollars in principle amount
multi-family housing revenue bonds for the United yards 1A
project. Let the record reflect that the public hearing on
this matter was included at 1114 a.m. June 10th, 2024. This
includes the tephra hearing for the United yards 1A
project.
Now we will begin the the regular agenda for the committee
on finance, which is called to order. Um, Quorum has
already been established for the by the first Tetra hearing
Tetra hearing, um, which includes Alderman Curtis and
Alderman CEO Lopez
at this time, we will begin the public comment period the
public comment period will be limited to 30 minutes out of
respect for everyone's Time Each speaker is limited to 3
minutes. Um
We will begin with Jessica Jackson.
Okay, so
1 might ask the question.
Well 2 questions number 1. Why am I in prosay with my
federal?
charge against the city and Cook County public officials
And the reason for that is because higher the state
attorneys are so corrupt.
That they make deals with the other side with the county
and they end up stealing our property through probate.
That's another way like eminent domain illegal foreclosures
illegal tax evictions illegal reverse mortgages, you know,
and the list goes on and on.
Of how it is that they are stilling the city of Chicago and
Cook County is stealing black people's property. Now the
sad thing is is that you come here and you talk about it,
but no 1 does anything about it. But let me let me correct
that there have been a few Alderman that have tried to
help.
Let me be clear on that. I would say their names but the
city is so Cutthroat, they might bother them for trying to
help but they know who they are. And so I appreciate the
help.
now
1 might say
why would you support the Republican Party?
Well 1 reason why is because the Republican party is going
to close the border.
And in closing that border it protects black communities it
protects our jobs. It does all the things that the
Democratic party refuses to do.
Now while we try to say that the Democratic that the
Republican party is racist and this that and the third, let
me just be crystal clear.
every last 1 of these judges
That's on my uh case that I'm filing against Cook County and
the city for trying to steal my mother's estate. Every last
1 of those judges are Democrats every last 1 of them why
they got us thinking that we better be paying attention to
to the fact that Trump made 2 federal judges Republicans
that don't know it's the local
Political politicians that affect our lives every day and
I'm coming in here on a regular basis telling the
Democratic party what's being done to Black Americans and
the Democratic party here seems to care more about
everything and everybody and other communities other
countries other religions other this other that except for
us, but they want our votes they want that black vote to
get in office, but they don't want to pay attention to what
we're doing. So that day is gone black people don't owe no
party anything anything.
So that's the way it's going now. The Democrats don't want
our vote. Thank you. Miss Jackson. The next speaker is Zoe
Le.
Hi, this is committee on finance is my favorite meeting
because you know, my voicemail was the first option. She
says from the Law Department that my Alderman was supposed
to come to us and offer us some type of money and then they
will go to the chairman of committee on finance and vote on
it. Just like y'all are about to vote for all these uh,
police racial police shootings and stuff like that because
that's the only thing the Democratic party care about is
when we lose our life. We got to lose our life.
Uh our black life in order to get paid. We can't just enjoy
Justice while still being alive. Like I should be able to
get paid for the building that the city of Chicago knocked
down, um thinking that it was theirs because they're so
used to stealing our properties anyway, and nobody not
Coming here, or we can't get an attorney or we can't get
anything like that. But let us get not let us get shot.
Let us get shot here comes a thousand civil rights police
are out civil rights lawyers, but like we don't have any
other civil rights, like even in the Illinois constitution,
you got the section that I that I talked about with eminent
domain, but you also have section 2 which is due process
and equal protection. No person shall be deprived of life
liberty or property without due process of law nor be not
denied the equal protection of the laws and I am getting
railroaded like crazy. My mother is my godfather is and
this is the this is the body this the government this
legislative body and I'm been coming here. Like I said,
this is my third third week. I am not trying to be here for
another summertime shot. Okay, the little bit of the summer
time shot that we still have be have. I'm trying to go
outside and be outside. I should not have to come in here
and demand my money because the city of Chicago failed my
mom and my godfather
And we don't have any type of we can't get civil rights
attorneys. We can't get anything because y'all have made it
like that. The Democratic machine is broken. Okay, you get
the other guy Ed Burke Flanagan, Larry, whatever you got 1
person left and that's Tony pre wink, but y'all have no
idea what y'all doing because the machine is done. Okay, it
stopped. So I need somebody to either call edbert before he
get indicted and see where that book is. So y'all can
figure out what's the next step to pay my mother her month.
Thank you.
Our next speaker is Taiwan Sims.
Did you want me to?
So I believe that speaking out in Chicago makes you a
Target. Um, let's say and July of 2020 that have been July
22nd 2020. I was attacked by.
Rose masquerading his officers
that case made it to the northern courts. The number will
be 1-22 CV 05691.
Which is being which in some way has been taken out of the
Courts.
but there's 12% put into the
Chicago Police Department from the F from the
budget
also, I have a charge with the EEOC, which the number is
440202209007, which is being sabotaged by the investigator
Seth Brown. Who who I got a call from telling me that it it
sounded Wild.
But the worst of it is what's happening over in 50 West
Washington with judge Bradley trobridge. Judge Boyd judge
Cameron boys my child who I my children actually who I've
been removed from because this is a modern day lynching and
y'all don't appreciate.
when somebody can
that's the intelligent enough to understand when they being
dicked around or understand when there's a pattern in their
life. So that number is 23 d 79597. I called those
criminals the other day. I've sent those criminals. These
are criminals using their Judiciary Judiciary power to
assault a single father. These are criminals.
To sit in a position of authority 1 above each and every
individual in this room. Even you missed out. You're just a
chair person. These are Judges.
They delegate they they they reach. Oh, wow, right, even
right now. I'm losing my intelligence comes so upset, but I
called these criminals and asked them why why is this case
still on when I'm the person that was attacked when my
material was destroyed when this woman was wait, when I
went to court. I was the petitioner then there was turned
over into the respondent giving a 2-year order protection.
I have not seen my child whose name is yasuke Roosevelt
Sims. He was named after 2 Warriors yasuke was a
few down. He was a let's say a
he was a black samurai something. That's probably under I
don't know if you all understand that.
How would the other 1 is Roosevelt Sims? Who was a warrior
who fought in the great Wars who was my grandfather who
fought for the Liberties that we all?
Get here in this country.
A black man, even when he came back, he wasn't even afford
those liberties.
But here I'm I'm his I'm his descendant. I'm his child Miss
grandchild.
So I named my child out to him because my grandfather stood
up made me stand up the way I stand up right now.
I refuse to bend over.
I refuse to hire people that push pins assault me and to
sell me. I refuse it woman.
Representation I refused it.
I'll fall before I allow y'all to do that. Thank you Mr.
Sims. Our next speaker is Teresa TJ Hughes?
number 3 number 3 still gonna come back to this Aviation
um like to I'm against this because
you have Aviation getting all these billions of dollars.
And I'm still getting calls from black contractors.
Stating that they're not getting any of the work.
And Aviation, they can't get Jamie to pick up the phone.
Call them back answer any emails.
Which I know is true because I've been copied on them.
And I just want you all to get out of this smoke and mirror
that you all are in with this because she has adopted a
black child.
I'm on a black adopted child 2.
But that doesn't matter she's supposed to look out for
everybody the most contracts that have been let out in
aviation have been going to particularly 1 black
contractor, which is B Bulma boa something like that.
and the other black contractors have not even had their
rfps that they sent in that they spent money on to get
fixed even looked at or responded to so these black people
are putting in all this money and she's not even giving
them the professional courtesy to return their calls.
Heria
So my thing is I want.
you madam chairman to speak with the mayor or whomever has
the authority to get them into this office into your your
office or your Council to find out what is the problem? Why
are we at?
2%
out of all the contracts let in the city of Chicago.
when we have qualified black contractors
I'd like for you to bring in Eileen and kick her out
because she's just being so Brazen to say that she's not
going anywhere unless you all buy her out of her contract.
Well, I say if you can spend 70 million on migrants that we
don't know if they're rapists murderers none of that.
Spend the spend the little 500 6000 get get her out of here
because she's making it harder for us and the longest she
stays and by her out now or fire her because the longer she
stays there.
the more that 2% is going to go down to 0% you know because
if she's got the time to finagle and and only people that
are really getting something is Haase people which are you
know Hispanic people and she's Hispanic so I can understand
that. I don't have a problem with that, but I want to fight
for my people and I want you black Alderman to fight for us
too Stephanie Coleman.
Chairman of the uh, oh, we're gonna talk about list of Vice
chair mayor. Thank you very much. Miss Hughes. Um, our last
speaker is George, Blakemore.
corrupt most corrupt city in America this the city of
Chicago
What is the criteria for you to sing Chicago is so corrupt?
They're elected officials are constantly going to the PIN.
being indicted Like Walter Bernett
Well, they gave him a a a play off, but it's something evil
here.
It's now we are laying all of our burning on this machine.
Whereas rev woooo, where's your fraternity system? Who are
you black people? What happened to you?
It's something what happened to you. You got deltas and the
AKs and got big old mega churches and you got to run around
here playing basketball and the in the Sports World. What
happened?
They say s h i.
happen
and it's bad.
You know why that happened because the black man was
enslaved in America and he never overcome that mental
Fitness and evilness in his mind. He has fallen in love
with his enemy. I used to have my mama with a nappy hair he
would go and knock on go go and put that old wig on. Uhuh.
We hate ourselves.
We hate ourselves and I don't see no white woman around
here. Well and happy we they don't want it imitation is a
form of admiration black lives does not matter.
Walking black talking black driving black black black not
matter I'm gonna use this last example with with the police
department.
In America, I've only heard of a a black police shooting a
white man. Only twice.
Only twice these black policeman know to do that on a white
man.
They they know that white lives now, you must play more say
that again. I say in the whole country. You will not read
read about a black police shooting a white person a
criminal. Why is that because that black police was mine is
messed up. No, it's not he know he can't do that.
He know he won't do that.
Because White lives matter.
Do not matter.
black black do not matter
something happened to us on the plantation.
the master made a free black man a n****
and we got the purge ourself of this and become strong
black man. Thank you, Mr. Blakemore.
This concludes the public comment period the committee
received written public comments in the support of 111 West
Monroe and 208 Southwest South projects from the Chicago
rehab Network preservation Chicago landmarks, Illinois, the
Chicago Loop Alliance and building owners and Managers
Association of Chicago. These were sent electronically to
everyone.
Um, so we will begin with item.
Uh the uh, the monthly rule 45 report.
Which was sent electronically to everyone if there are no
questions. Can I get a motion to recommend approval?
Of this monthly rule 45 reports. So moved by Alderman
laspada all those in favor signify by saying I all those
opposed.
In the opinion of the chair the eyes have it. Um Alderman
Coleman good to see you. We will include you as a
non-member.
uh, Miss
Miss Jackson, please.
Yeah, you can say it after the meeting. You could say it
after the meeting, um items before the committee on on on
the committee. We have a total of 16 items on the agenda
this morning. Uh, the Department of Finance will be
presenting items number 1 and 2 together. However, the
committee will be voting on each item separately item
number 1 is an ordinance concerning the issuance of the
city's O'Hare International Airport General airport senior
lean revenue bonds and Chicago O'Hare International Airport
passenger facility charge revenue bonds series 2024. There
is a substitute ordinance which has been prepared in an
electronically sent to everyone. Is there a motion to
accept the substitute that motion was made by Alderman
brunette all those in favor signify by saying I in the
opinion of the chair the eyes have it and the second
ordinance is an ordinance concerning the issuance.
of the city's second lean water revenue bonds series 2024
this too is the substitute ordinance which has been
prepared and sent electronically to everyone. Is there a
motion to set except the substitute. So moved by Alderman
OSHA all those in favor of the motion signify by saying I
Post in the opinion of the chair the eyes have it. So the
substitute ordinances are now before us and Brendan White
from the Department of Finance will explain both substitute
ordinances. We are also joined by uh Thai towns the Deputy
Commissioner from the Department of Aviation Tracy Payne
the managing Deputy Commissioner from the Department of
Aviation.
Joel Vieira
Madam chair
Who's who's that? Oh, maybe I guess like to be counted
towards Coram.
Alderman who Alderman viegas? Yes. We already counted you
Alderman Vegas. Thank you.
Um, Joel Vier first Deputy Commissioner of the Department
of Water Management and Scott green the Deputy Commissioner
from the Department of Water Management. We also have
members um from each firm from the bond deals. They're
seated in the public Gallery a case of Financial Group
Academy Securities Bank of New York Mellon bladelock Bill
van Burke Byrnes and panelli Cabrera Clarks Hill cutillas
and Associates Estrada HOSA frasa. Golden Holly James ice
Miller Jeffries JP Morgan Ken mutin Rosen. Rosenman Loop
Capital mizero Financial Miller Canfield Paddock and stone
Neil and Loi North South Capitol, Phoenix.
prag Ramirez and Company rice financial wakanda and
Associates RSI
sandblast securities
cyber cisnero shank and Company US Bank, NA
Stenson valdis Moreno Wells Fargo
Brendan
thank you chair.
So I'll be presenting these 2 Bond ordinances. Um
these 2 ordinances with authorized 3 billion in O'Hare
bonds and 400 million in water bonds. The O'Hare bonds
would fund both new money and refinancing of existing debt.
The first O'Hare new money transaction would also repay
approximately 600 million in short-term lines of credit
that are currently outstanding.
The water bonds will be uh, refinancing only um, and as
detailed on this slide.
The O'Hare bonds will be issued in 3 separate transactions.
We would expect to come this summer with uh, roughly 1
billion in new money.
Brenda oh, yes.
Uh, then we would uh later this year. We would come back
with 1.5 billion in refinancing for savings. Um, and then
we had followed up with the end of the year with another
500 million dollar new money transaction. Each of the
refinancing are expected to have positive Savings in the
current market the water. Uh,
Transaction would uh result in about 20 million in present
value savings and the O'Hare refinancing would result in
about 140 million in refunding Savings in present value.
Moving on to the next slide to discuss the water
refinancing and more detail.
There is about 320 million and currently outstanding bonds
that were issued in 2014 and 2012 that are either currently
callable or will become currently cable on November 1st
2024, um in the current market conditions, uh refinancing
would save approximately 1.5 million dollars per year and
the present value of that savings is about 20 million.
moving on to the next slide, uh to show the water
refinancing deal team senior manager would be mezro
financial and the cosigner manager would be Cabrera for the
underwriting participation. There's approximately 41% uh of
the business going to MBE firms either Hispanic or
African-American owned firms and for the uh advisory and
the legal team approximately 55% of the business is going
to uh firms that are either owned by Hispanic women or uh,
African-American individuals.
Okay, and now moving on to the next to discuss the O'Hare
refinancing.
Um, this would be refinancing approximately 1 and a half
billion dollars of bonds that were originally issued in
2015. Um, they become currently callable on January 1st,
2025, um under current market conditions a refinancing
would produce about 8.7 million in annual cash flow savings
and the present value of those savings is about 140
million.
Moving on to the next slide. I would like to turn it over
to Tracy Payne from Aviation to discuss the bond proceeds
that will be to discuss the projects that these Bond
proceeds will be funding.
Thank you Brendan. Um, what is before you is just a
snapshot of what the new money bonds will support.
The new money new money Bond proceeds will support the
ongoing capital projects at O'Hare a significant portion of
those capital projects is the terminal area plan for the
tap as we like to call it.
Design is progressing on major components of the tap which
includes 2 satellite concourses.
on your left
or my left at least okay, um
The O'Hare Global terminal and the Consolidated internal
tunnel that connects these 3 buildings to 1 another and is
actually the backbone of the future terminal facilities
major enabling projects for the tap started in March of
2023 and remain in construction including many of the
required major Utility Systems that will support these
future buildings.
Significant construction remains in progress on the
Airfield as well to reconfigure taxiways install new storm
water utilities including a deep tunnel required project to
connect 2 Airfield detention basins to 1 another
Terminal 5 construction continues with an an approximately
1700 space parking garage that is under construction in
front of that terminal.
supporting roadwork
for the parking garage and terminal curbside will continue
into 2025.
Besides the tap the CDA also has several taxiway
Rehabilitation and reconfiguration projects in construction
along with some other smaller scale Capital Improvement
projects that are in design or construction at this time.
Hey, Tracy. Thank you.
moving on to the
yes, Alderman vice mayor point of information so I know
that the um
The construction has started on on a lot of those things
already. Um almond Bernette. Can we finish the presentation
real quick? Sure. Sure. Go ahead.
So as I mentioned earlier the uh O'Hare the 3 billion in
O'Hare authorized bonds would be issued in 3 separate
transactions here. We show the breakdown of the
underwriting teams for those 3 transactions. The first
transaction would be led by Wells Fargo. The second
transaction would be led by JP Morgan and then the third
transaction would be co-led by Cabrera and Luke Capital
markets, um on in an aggregate basis we have approximately
45% of the underwriting business going to MBE firms either
Hispanic women or african-owned.
African-american-owned moving on to the next slide to
summarize the ohare advisory and legal teams.
We have approximately 55% of our advisory and legal work
for the O'Hare bonds going to MBE firms.
um
And move on to the next slide and uh happy to answer any
questions.
Thank you very much. Uh Alderman vice mayor Bernett Mr.
Sims. You don't have the ability to ask questions from the
gallery if
you can leave if you want to ask questions.
Thank thank you madam chairman. Um
so first of all, I think this
is as far as you all's uh
minority participation in the bonds is decent. Uh, we
appreciate it. Uh, I know you probably have something to do
with some of this Madam chair. And also with with the uh,
the law folks on the bonds. There's a lot of good bonding
people on it. Um,
I wanted to ask uh
the with the construction part
Uh that you showed up there that has already that's already
in process, right? They started on it already is going to
be done in the future both both. Some of it has to be
started already the infrastructure some of the utility work
has started. So everything has been bidded out on that.
That's all bid it so it's not bid it yet. So you don't have
a contract as anything. No, so it it'll be important to see
you know, how that's going to pan out as far as uh, MBE and
wbe.
and and who to contractors are going to be
Okay, I know right now who's doing the construction on it
right now?
our JV
currently our um, um, JV partners are doing it. So is Echo
cam aeon hunt clayco boa. There are joint venture Partners
that's doing um, the terminal so clay click on board. I
joined Ventures. Yes, so it's not a subcontractor today.
I'll join pictures. Okay, that's great.
So they doing that currently now.
So the rest of it is going to be rebid it out. The rest of
it is going to be bid it out or are you going to keep the
same contractors? That's what I want to know. I can't
picture, you know, it will be more work that's coming. So
some of its in design so we have to even finish that part
but yes, there's more work that is coming and will be bid.
So so if I'm not mistaken.
I think when clayco and uh
and and boy became Partners initially if I'm not mistaken,
they was going to be Walsh involved and they switched up
and my thinking about the same project and they switched up
from Walsh and gave it to bore or was that another project?
And the reason why I'm asking I want to know.
Is this going to come before us?
Of these contractors that's going to do the rest, right?
Because at the time it was 1 1 contract that some of us had
a problem with a contract and y'all switched it up.
You recall that?
To maybe you all were involved with that.
So I don't want to misspeak about the question you were
asking about the switch out. So we will can we get that
answer back to the through the chair about the previous
when you asked about was Walsh there? I don't want to
misspeak. Okay, but but as far as the future.
bids
is any of that coming before us are we going to see any of
that? Are we going to be able to question any of that? You
know, is it coming back to this body? That's what I'm
asking.
We certainly will bring it back before we have um
I think there's like 10 years worth of work still left. So
definitely everything is not been bid up.
All right.
Thank you.
if um Vice chair Conway you would be next but um Alderman
Reilly has alerted me that he has to leave right now. And
uh, I know you want to speak to the item on the agenda
related to 208 Southwest South. Thank you madam chairman.
Uh, yes item number 8 on the agenda through the um
Department of Housing. Uh, it's a project at 208 South Lal.
Um, as many people know it's a a Historic Landmark
building, uh, in the heart of the loop initially. It was
designed to be a financial institution. Um, as part of the
Lal Street reimagined initiative. Um, this is 1 of the
subject properties that has been selected by the city, uh
for redevelopment and the great news is that this project
will deliver 226 residential units of which 68 will be
affordable units meaning 30% of the new new units delivered
in this mixed use building will be affordable. Um, and
the balance will be low moderate and market rate, uh units.
Um, so this is an exciting project. Um, I've been involved
with the Redevelopment of 208 South Las South since I was
first elected in 2007, um, when it was, uh, some of the
floors were converted to a JW Marriott Hotel property. It's
been very successful downtown, but this project will take 4
of the upper obsolete floors and convert them from vacant
former.
Uh commercial office space into um living units and I think
this will help for us to continue to grow the residential,
uh, community and population in the central business
district and the loop specifically, um, and I know ottoman
Conway has a complimentary project, um, just a few
addresses a way that will also be presented today. So
again, this is an exciting initiative La South Street
desperately needs this reinvestment and the hope is that
with the uh, new Google headquarters anchored at the former
Thompson Center plus these smart Investments along with
South Street, we can breathe new life into the loop and
help with its continued economic recovery. So, I'd
appreciate it if my colleagues could support this project,
uh in my absence. I have to run to an appointment. But
thank you madam chairman.
You're welcome Alderman Reilly. Um, and we'll move on with
going back to this item before us with questions from Vice
chairman Conway.
Uh, uh, yes, I did want to I did want to thank the
panelists I you know seeing it was a a big uh,
Bond issuance, um did and as someone who issued Bonds in the
past, I really appreciate you all giving me a lot of time
to uh to dig into this over the weekend. Um, a question I
did have is I noticed on the public hear the public hearing
documents that it talks about a um,
Issuances of some notes as well for a billion dollars, or
maybe I'm misreading that I noticed that's not in the
ordinance. But I I just wanted to rectify what uh what that
was for for the sake of the public notice.
Or you referring to the uh, the Terra yes. Yes. Am I am I
am I am I am I simply mistaken?
Yeah, wonderful. Not the not the first time but be beyond
that really then I'll then I'll simply say that I um
appreciate the work you've all done to to.
Save the city significant dollars based on how interest
rates have moved over the last 10 years. So that's all I
have Madam chairwoman. Thank you.
Thank you Alderman Vice chair Conway. Uh Alderman OSHA.
Followed by Alderman Scott. Thank you chairman.
Um, I I I wanted to give some clarification, uh, my
colleague Alderman Bernett. Um,
moving forward uh any additional work coming
At the airports will be before our committee.
Um, and I'd also like to point out.
Commissioner creation before the aviation committee before
Aviation committee. Yes.
um
Commissioner Rey and her staff have hosted several job
fairs and Expos for offering opportunities. Um
from all groups
She hosted 1 at UIC 3 and a half weeks ago.
Everybody in this room got multiple phone calls emails
information inundated from my staff and also from Thai an
aviation.
There were 2 aldermen there.
I was 1 of them.
There were more than a thousand people that attended that
Expo that went on for hours every name.
Representing a minority background was there.
thousands of people were offered opportunities
ladies and gentlemen the next time we host 1 I will make
sure you get an abundance of information but
there are opportunities provided and and and maybe Thai at
some point can can go in the more detail but
um commissioner ree has offered that information presented
that information giving
opportunities and it's not just giving opportunity.
Their minority representation on all levels is stronger
here at O'Hare and Midway that any other major airport in
this country.
And she's working hard to do even better and do more. Um,
switching topics
this information before us today.
getting this
through our committee is how we continue the important work
going on at O'Hare.
Um when I when I talk about the work at O'Hare I'm talking
about staying competitive.
Because many of those major airports are looking to take
what we have.
We need to modernize.
We need to stay competitive.
These bonds will help create.
thousands
tens of thousands of jobs as as Tracy mentioned for the
next 10 years.
I think it's important that everybody be reading these
materials.
Asking questions whether you're asking questions offline to
Aviation or today, but this is critical to our future. I've
said it 50 times in this room is our biggest economic
engine. We got to keep it running on all cylinders. Thank
you.
Thank you Alderman OSHA. And uh, there is a diversity
working group, uh at the airport, uh, made up of uh,
several members of this body. There is a uh, updated report
that we've asked uh in Alderman Mitchell has asked for
which will be provided to you. Uh, as soon as that report
is updated. The last report is from March.
Yes, Alderman brunette. You have a clarifying question.
Yeah, so and and and and I think I'm right with this. So
these bars will be paid for with with money that come from
the airport, right? Yes.
Yes, that's right.
Thank you. Um, Alderman Moore.
followed by alderman laspada
thank you, um chairman and thank you for your hard work on
um, making sure we have some Fair representation on these
um deals, but as I'm looking at and I'm looking at O'Hare,
um right now and when I look at like the um,
the senior managers like Well Fargo, um
2.5 million and then I'm looking at um Bond Council. Um,
Hadn't mutin 712 and then Coban Council n and Roy 300 and
comparing that to the um water. Um Team. Um, I think we
could have done a little better tell me in terms of the um
Bond Council. Um,
how do you select the bond Council and if the bond Council
here, um Cad mutin and
Who is this? Um Canfield Miller. What is the uh, he said
minority status now, which is I understand you may not have
uh be a majority company. But what is their representation
within their company of people that they hire? Um, we were
on this under the previous administration. I think things
have gotten relaxed, uh, for whatever reason so if if first
of all tell me how you select your bond counselor then to
if they can tell me the company wise what is their makeup
and you know, their Partners or um senior managers of um,
African-American Latinos Asian,
yeah, so the um, all the legal firms that work on the bond
transactions are selected by the Corporation Council and
I'll turn it over to Jim McDonald to uh, discuss the
selection criteria.
This is uh, Jim McDonald on managing Deputy Corporation
Council on the Law Department.
when
The Corporation Council on the Law Department select
Council for our bond transactions for Bond Council Coban
Council disclosure Council Cody disclosure Council, we take
several factors into account.
1 is the
expertise of the firm has and particular subject matter
whether it's an aviation bonds General obligation bonds
water revenue bonds and the like
we also look for firms that have a strong commitment to
diversity.
and bring up their
and provide opportunities for their Associates and partners
from various communities to work on our transactions.
We also try to maintain a strong portfolio of multiple
firms.
That can provide the service needed for the department and
the city to provide adequate competent representation for
the city on these very complex transactions.
so we do not keep firms with particular transactions, but
try to rotate them so that we maintain a large as larger
pool as we can of competent diverse firms to work for the
city.
for particular
statistics on individual firms. I would have to refer to
the representatives from those firms and we have
representatives of those firms. Here. We have I believe in
the
ordinance packages
Uh, the statistics that the firms must recently provided to
us. So those should be in your Ordnance packages for each
of the oh here and water transactions since they required
under the municipal code.
Okay, so I don't have that. Sorry chairman. I don't have
that package. Um, what is the firm that you're questioning?
That was the question both can mutual mutin and um Miller
Canfield if they can just all right. Is there a
representative from Patton mutin or Miller Canfield here?
Can you please come to the mic?
Good morning. Um, my name is Glenn Weinstein. I'm a member
of Miller. Can you speak a little louder and into the mic
Shure? How's how's that?
Better. Okay. So my name is Glenn Weinstein and I'm with
Miller Canfield. Um, we are the uh 1 of the Coban Council
on the water Revenue box.
Alderman Moore, would you direct the question that you're
seeking? He said I want to Cobalt your bond Council, uh or
your Coban or Bond Council? Uh Coban, there's actually 2
cobban Council. Uh, the the other uh, Coban Council firm is
uh, Holly and Pearson Farrar. I'm I don't know if anyone
from that friends here today or not. Okay. So how many?
Okay how many uh Partners do you have in your firm?
uh overall, um
You know, I I apologize. I don't have
off the top of my head any statistical information about
the makeup of the firm overall.
Uh or so why don't we do this since um, if you could get
this information to us through the chair to the committee
on finance so that we can get this information to Alderman
Moore before the actual vote on Wednesday. Sure. I I would
be happy to do that. I mean, I know we did submit an
economic disclosure statement, but I can resend all of that
information to you. Thank you, of course and Miller
Canfield who's representing that was Miller. Oh, sorry.
That was oh, I'm sorry. No, no mutin.
Hi, uh, Mike melzer, uh, representing can me. Um,
unfortunately I can speak to the team for this transaction.
Um, but as a firm as a whole, uh, I I don't have those.
You can speak to the team and then um, yeah, so our team
for the city's credit and for the O'Hare transaction will
be um, 33% Um African-American black American
and Latino
No, all right. All right. Thank you.
Alderman Moore, do you have any other questions? That's it
for now until I get that information chairman. Thank you.
Thank you alderman laspada.
Thank you so much cheer. I appreciate the presentation. I
appreciate the briefings, uh that proceeded and that the
tougher briefings in particular.
I have to apologize because I wasn't able to attend the the
briefings that you held for Alders and for finance
committee members and the point that I was curious about
was.
it's undeniable that it's a substantial savings, but for
those of us who are less versed in bond finance and perhaps
we would like to be but only know how interest rates are
reported.
How is it that we're achieving such significant savings
right now with at least in the media and I I believe in
reality, uh interest rates being as high as they are. Can
you shed light on that?
Yeah that uh, absolutely that's a good question. Um, so
part of it. There are a number of factors. Uh, we're saying
is true is that uh,
Absolute interest rates as uh set by the Federal Reserve
are higher than they were, uh, 15 years ago or 10 years ago
when these Bonds were originally issued. Um, but the city's
credit rating has also dramatically improved since then,
uh, 2015 was sort of the nadier of the city's credit
rating. Um, the uh, Chicago Public Schools was facing a
liquidity crisis around the same time, um in the city got
downgraded, uh several times in that sort of that time
frame when these Bonds were originally issued. Um, and then
there's also just the fact that when these Bonds were
originally issued in 2015, they were issued with 30-year
maturities and were maintaining that footprint. So when we
sold 30-year maturities at a lower, uh credit rating last
year that was a higher interest rate than but now we're
selling 20-year maturities which have a lower uh interest
costs and then we're also doing it from a more, um, a
better financial position of strength, so
there are a couple varieties but um
most of the time when we issue bonds, we have the 10-year
parallel and we can come back, uh, after 10 years and
refinance it, um at no cost to ourselves and a lot of that
savings is just from replacing the 20 year the 30-year
initial maturity with a with an out 20 year.
genuinely fascinating that even in light of
interest rates being as high as they are. Generally the the
con the impact of the city's improving credit rating is
so much stronger than it can lead to the kinds of savings
that we're seeing.
Yeah, and I would I would also like to point out that these
um, these savings are sort of in the current market
conditions and if market conditions or interest rate
environment or any number of things were to make it so that
there were not savings from refinancing. We just wouldn't
do it. It's just a purely optional. Um,
Just a purely optional, uh an option that we have. Uh, and
if we're if we do see Savings in the current marketing
conditions holds we had tried to lock in those savings.
Got it. I appreciate it. Thank you so much, sir. Thank you,
sir.
Thank you Alderman this spot. I'd like to recognize the
former Alderman Rod Sawyer. Who's on the phone? Thank you
for joining us today. Um, is there a motion to recommend
approval of item number 1 on the agenda?
Do you have a question alderman?
Hopkins you have a question you want to make a motion you
have a question Alderman Lopez
Thank you madam, chairman and good morning members of the
committee. I have 2 questions 1 is a follow-up to what my
colleague from the 17th Ward asked with we were talking
with regards.
uh to diversifying our talent pool so to speak and the Law
Department said that they use
Underwriters and rotate so I'd like to know how often do we
rotate out Wells Fargo and JP Morgan in exchange for other
individual other financial institutions in order to help
diversify our bonding efforts.
And not to the tune where we look at these forms that say
nearly 60% of the money. We're given or borrowing is going
through those 2 individuals.
Um, so as for Wells Fargo, I don't believe that Wells Fargo
has run a deal. Um, I've only been with the city for 7
years, but I don't think we've ever used Wells Fargo as a
senior managing underwriter before and I believe. Um, the
last time that JP Morgan ran a deal was in 2021.
So if you could provide through the chair.
When those 2 have had 50% or more of the various bonding
deals over the last 5 years, I would appreciate that.
because as I'm looking at the numbers, yes, it's all well
and good that we say it's for Hispanic terms or women women
terms or women or uh,
Firms, excuse me or African-American, you know when they're
all in the single digits and we have Wells Fargo and JP
Morgan at half.
That's a problem in my opinion.
Um
I also want to Echo what the chairman of Aviation mentioned
is that we have to invest.
In our airports having just come back from overseas. I can
tell you we're building.
Kmarts where everyone else is building building blooming
Dales
it's sad how far behind this country is and indeed our city
when it comes to having a world 2 world class airports with
everything that is possible with what we're spending.
um
My last question with regards to the actual debt, uh
pertains to the actual ordinance. You said that we are
borrowing out for 20 years. Is that what I heard?
Uh, we have we haven't done the structuring yet, but we
would probably issue the new money roughly 30 years out.
Um, and then the
uh
the bonds that we are refunding that were originally issued
in 205 those were originally issued with a 30-year, uh,
final maturity and we're going to be when we refinance it.
We're going to keep it in the same footprint and not extend
the maturity. So
That the refund financing would have a 20 year final
maturity.
And is that what you would be referring to the additional
senior lean bonds for the airport?
I'm I'm sorry was that the additional senior lean bonds?
with the airport
Is that what you're referring to? The ones that are going
to be in that same footprint for refinancing of the current
debt that's involved with the airport?
uh, I think the additional bonds refers to the new money,
uh,
So the 3 billion that you're borrowing, what is that for?
So half of that is just a pure refinancing that we will
only execute if the market conditions show that there are
substantial savings and then the other 1.5 billion is for
new money projects at the airport, uh, some of which um,
the work has been done but other which is still sort of
to come in the future
So if I'm understanding this ordinance correctly when it
says all or a portion of the 3 billion aggregate principal
amount of additional bonds authorized blah blah blah may be
issued as senior lean bonds pursuant to the senior lean
master and denture.
Does that mean that the money that you're referring to is
considered?
additional senior lean bonds
Uh, and if you want by way of uh from the original
ordinance, it's paid from Article 2 Section 2.18.
Which is what I'm reading from.
Yes. Yes. Yeah. No that's accurate.
so
I've heard that you keeping it in the same footprint. I
heard that we're going to do it for 20 years. Why does
section B then say that these bonds will not mature for 40
years.
If we're trying to keep it in the same footprint Would we
not be keeping it at 20?
45 as opposed to 2065 because that would make it sound as
though we have a 40 year note. Not a 20 year note.
Correct. Yes, the uh, the final maturity is written in the
ordinance is get to give us uh flexibility when we come to
Market to see if um, if we see that there is strong demand
for uh,
Uh bonds with a 40-year maturity that uh had that has
attractive comparably to 30 year, but I think like you just
told us that you're doing this in a 20 year.
Yeah, that that's the refinancing component is is this not
part of the refinancing component?
Yes, because this 3 billion. Yeah, so the the way the
ordinances were in with respect to the final maturity that
just know uh
Some of the bonds that were issuing will have much shorter
maturities that it doesn't say that all of the bonds that
we issue have to have this 40-year term. That's just the
maximum term, uh that we'd be able to issue and so like
buying a car.
So like buying a car what you're doing is you're taking out
a a 7-year car note.
on paper
while telling us that you're going to pay for it in 3,
right? Well, there's no guarantee in the law in the
ordinance that you're actually going to have this done in
20 years because you're giving yourself 40 years to pay
this off, correct?
Uh, I don't think that's accurate. Um, why is it 40 years
from now that that's when the maturity hits?
Uh that just that just the maximum, uh that we would be
able to go out. Right? So I I think Madam chairman, my
point stands proven is that this is a 40-year loan which
you are hoping to pay off in 20 or 30 given what the
whatever the market is as opposed to introducing a law that
says you are going to pay this debt off in 20 years.
I would think that if it's in black and white
and I can figure this out.
you should be able to explain that clearly and what I don't
like is the fact that we are adding debt upon debt upon
debt, and we should be able to articulate and put into law
that we are going to do this in 20 years and commit
ourselves to that or refinance down the road just like
we're doing right now.
Because I think that shows some truth in borrowing for
taxpayers as opposed to just making it look as though we're
giving them a good deal when when you get to the RAS tax of
it.
This is a 4 decades long proposal at worst case.
Not something that's going to be done in 20 years. Thank
you madam. Chairman
yeah, so, uh
when we come to issue these bonds the
vast majority of them will have final maturities that are
less than 40 years. Uh, it's only if we want to structure
some of the 1.5 million 1.5 billion in new money, uh with
that 40 year maturity. We this gives us the flexibility to
do that.
I understand that but I also know that's not what you just
sold us on. Yeah, thank you madam chair. Thank you very
much. Uh
I think what he's describing here is the ability for the
finance department to be flexible in how they approach this
obligation for the city of Chicago. Um,
your point is made um, and we'll move on I believe Alderman
Hopkins you made a motion to approve item number 1 on the
agenda recommending do pass all those in favor signify by
saying I I opposed in the opinion of the chair of the eyes
have it and the due pass.
Excuse me, Lopez Alderman Lopez you are is this the 1 you
want to recuse yourself on or is this the 1 you want to say
you're opposed to this is for O'Hare. Correct? This 1 is
for O'Hare. Yes, then under rule 14 out of an abundance of
caution because of current personal litigation. I must
recuse myself from this vote.
so noted
the due pass recommendation of the substitute ordinance, um
will be reported out at the next city council meeting on
June 12th. Um, is there a motion to recommend approval of
item number 2 on the agenda, which is the
water revenue bonds
so moved by Alder
uh recommending do pass all those in favor of the motion
signify by saying I
post and the opinion of the chair is the ice have it and
the motion carries and the due pass recommendation on the
water revenue bonds will be reported out at the next city
council meeting. Thank you very much for your presentations
this morning.
Yes Alderman Coleman, um before our our friends at O'Hare,
um Aviation leads just wanted to wish Deputy Commissioner
towns a happy birthday. Today is her birthday.
Happy birthday to the Gemini sister. Thank you so much.
All right. Thank you.
Moving on to item number 3, um an ordinance concerning the
authority to enter into and execute and intergovernmental
agreement with the Chicago Park District.
For the allocation of tax increment financing funds to
build a new Fieldhouse with the gymnasium and site
improvements to include basketball court and additional
amenities at Moran Park located at 5727 South Racine Avenue
in the 16th ward. We're joined today by Beth O'Reilly from
the park district who will be the presenter and there are
several other individuals here with us this
Morning, and should they be called upon will introduce
them?
Beth
Good morning. Chairman, Dal and members of the finance
committee for the record. My name is Beth O'Reilly and I am
the budget Deputy budget director of Chicago Park District.
I'm here today to request your approval to enter into an
intergovernmental agreement that would provide the Chicago
Park District with 9 million in t assistant.
to develop a new Fieldhouse at Moran Park
The project is located at 5727 South Rine.
uh in the 16th ward and in its part of the Anglewood
neighborhood TIF district
The um, sorry.
screen on the right 1 here
Uh, the project will consist of the Demolition and
reconstruction of a new Fieldhouse at Moran Park. Uh, the
new Fieldhouse will include a half-court Jim meeting rooms
and restrooms outdoor amenities will include a new
basketball court and while also be included as part of this
project. We're looking to start construction this year and
uh complete in 2025.
Um, this is the existing condition of Moran Park. Um, it is
a very old Fieldhouse it uh does not provide, uh modern
amenities for the
Community sorry
get rid of this.
Okay. Thank you.
um, so the site conditions will all be redone the plan is
to move the facility from the middle of the park to the
other end of the park
So, I'm sorry. That was the old plan. This is the latest.
I'm so sorry. So the park will be developed in the middle
of the park. Um.
This is the framework plan the master plan, uh at this
point we are planning on the construction of the Fieldhouse
and the basketball court with down the road improvements
for the rest of the site.
Um, it's a 1.94 acre Park.
It's situated in the Anglewood community area. Uh, the
existing facility is a small 1600080 square foot building
constructed in 1927 the opportunity.
Um for indoor programming does not exist, uh providing Tif
funds to build a new facility with rooms for Park
programming and Community use in addition to a new gym will
provide a new level of Park Service to the neighborhood.
When we first discussed this project we were looking at
several proposals to add on to this site or to the existing
facility or move it to another Corner through um, quite a
bit of community participation and Outreach. Uh, this is
the final plan that uh, we will be moving forward with
um
And we look forward to.
This great development in the Englewood Community again. We
are speaking 9 million. We need to demo the existing. We
need to remediate the site construct a new Fieldhouse.
uh revamp the site work and um
that's
it's pretty basic. It's just a Fieldhouse.
Do I have any questions?
Alderman Moore
you I appreciate my um colleague. Um Autumn's definitely
Coleman, um for going on his project. How much is left in
this Tif?
uh, that would be that would be a question for uh Tim
Jeffries if
From the planning department. Hello, uh for the record Tim
Jeffries managing Deputy Commissioner in the department of
planning. Uh, this would leave no fund balance in this TIF
district, but it was uh authorized for an extension by the
Illinois General Assembly 2 weeks ago. So if to the extent
that as approved there's a cash flow of about 3.5 million
dollars per year, uh in the future so you say it okay, so
it was extended and then you said that's going to generate
a cash flow about 3 and a half million dollars, correct?
That's correct. Okay, so as you all know and I don't want
to get into um competing, um against my colleagues but we
got to be fair here you all know. I've been asking about
Ogden Parkfield house, which that Tiff hit
And it's up to the park district to make sure I already
secured a 7 million dollars on my own.
my own
And I'm not seeing any movement from the park district, and
now you come and I got a vote on this you want me to
compete against my colleague. I want her to succeed but you
all have to do your job. I've been asking for this for 2
years ain't nobody came up and said hey Alderman we can
pull this amount for Tiff we can do this.
Or anything like that.
Are part has to have a new field house and I won't plans
and I want it happening now.
And this is this is total disrespect, um to the 17th wrest
even to the 16th ward residents and which um Ogden park
encompasses around
And so I'm not going to keep screaming up here. Um and and
dealing with this somebody got to work and find money to
make sure that this plan is happening.
And I can't be the only 1 going around here pulling teeth
from everybody of government to try to build this thing
Park District. Everybody getting paid. You have to find
money to make sure this happens.
Agreed. Um, I would like to review your committed sources of
funding offline, um would be helpful for us.
You are holding the 5 million dollars for me over there.
Then we just ask for another 2 million dollars in a letter
to Congressman Davis. That's 7 so 35 million dollar
project.
Park District hasn't kicked in anything yet.
The other 5 million came from state senator Jackie Collins
when she was in office. Okay and said that over to the far
you those statements with you, that would be helpful.
But I want to know what you all are going to do.
So in this Tif Jeff everybody, I don't want any more money
coming out of here until that Park District has commitments
in Tif dollars for Ogden park.
I'm going to support my colleague on this because she's
worked hard to get this done.
But I want to I just want to make that clear.
Thank you. Thank you, Alderman Moore.
Alderman Coleman
Thank you chairman Dale. Um, and thank you to um you all at
the park district. I recall this conversation with Pat
lavar in 2019, June of 2019 and my sentiments I share the
same sentiments with Alderman Moore with the investment of
the Ogden park while it is in 17. It is definitely um
servicing children from the 1516 176th and 20th Ward. Uh,
I've made a been very intentional about
Making sure that some attention is given to Ogden park. But
um can't thank Tim Jeffries commissioner Boatright and my
colleagues and I asked for my colleagues on this committee
for your favorable support. Uh, this Park District doesn't
even this little bitty field house doesn't even have Wi-Fi.
There are several layers of of different Cults of the same
paint and the rebirth and revitalization for Moran Park
also known as murder Park would certainly give children and
families. Hope and investment right on 57th and Racine and
this will also um,
This will also be the comp. This will be complementing the
Englewood nature trail. Just 1 block South.
Of Moran Park, and it's a part of that cohesive development
plan. So thank you all and thank you chairman now. Thank
you Alvin Coleman. Um, I thought that you were going to
Uh be the last speaker. Normally, that's what we do here.
But Alderman Lopez, I didn't see your your hand Alderman
Lopez.
That's all right. I'll let all the older women come and go
twice if she'd like to so she could be closing it out. But
I I do want to Echo my
other angle with colleagues sentiments and frustration with
dpd, um because there are a number of projects that a
number of us have been asking for and it seems like
everyone else seems to be getting not just between us, but
outside of us. Um, Moran Park definitely needs an uplift
because I've marched with my Alder neighbor, uh to try and
brighten up.
its
footprint. Um, but I think what I'd like to see is as we're
looking at all these applications. When do these
conversations start because I think the frustration that
many of us have is that
we have been pushing the department to focus on our
priorities.
for years in some instances
and it seems that things that have come after us are coming
are appearing before us.
Um, so I would like through the chair when
all of these items for the park district
um
were approached.
for Tif funding
When did the Moran conversation start when did the the 27th
word Park District conversation start and so on and so
forth, um because there needs to be some.
Equity in what we're doing and I don't think we're seeing it
in the neighborhoods that need it most I think also to my
colleagues point we need to see as much as you want to know
our funding sources Beth, you know, this is a constant
conversation. We want to know what your Capital funding
sources are. What are your priorities are and where you
guys are spending your money this year next year and the
year after that so that we can properly plan because I
don't think we ever get a clear picture out of the park
district for how that is happening so that we can make
determinations if we're actually spending equitably across
the city or if we're just providing to whom ever dpd wants
to give money to at that point in time. So I gladly will
turn it back over to my neighbor if she wants to close it
out on a win. Um, but these are things that I know we have
talked about for
years when it comes to especially the park district and its
funding and its tiffs and you know, I don't want to be the
1 that keeps to start saying no to my colleagues, but it's
getting Beyond frustrating dealing with you guys on this
matter.
Actually you raised an excellent point um Alderman Lopez
because I believe I made a commitment to have the park
district come before us for a subject matter hearing. Um, I
will keep that commitment.
Will probably not be over the summer, but maybe early in the
fall we can have them come forward. Thank you.
Um, that's Riley is asking if we received a list of the
capital program. I have not seen it. I don't know if anyone
else has.
I think so, but we'll check we will check um, is there a
motion to recommend approval of item number 3 so moved by
all them in Scott recommending do pass all those in favor
of the motion signify by saying I
post any opinion of the chair of the eyes have it. Thank
you Beth. We will move on to item number 4, which is an
ordinance concerning the authority to enter into and
execute an intergovernmental agreement with the Chicago
Park District for the allocation of tax increment financing
funds for site amenities including playgrounds a soft
surface playground replacement and new fencing lighting
upgrades and pathway paving at Union Park located at 1501
West Randolph Street in the 27th. Ward not to exceed 1
million dollars Beth
Right as the alderman said I'm here today to request your
approval to enter into an intergovernmental agreement that
would provide the park district with up to 1 million
dollars in Tiff assistance from site improvements at Union
Park.
Uh, the park is located at 1501 West Randolph in the 27th
Ward and the Central West TIF district.
Okay, um the improvements at Union Park will include a new
pathway Paving throughout the park, uh upgrades to the
lighting with replacement of LED lighting to enhance the
Uh illumination 5 new pedestrian polls will be added to the
southern section of the park removal of the port in place
soft surface playground and new fencing around that
playground and replacement of several papers here.
As needed you can see from the images this park. Um
needs some attention the soft surface playground has
degraded the pathway Paving has uh
deteriorated Beyond
OMB its useful life
Uh, the new lighting for the park will be in that southern
section.
Where it is, very dark with the tree canopy and the new
light poles and upgraded light fixtures will be included as
part of this project.
Um The Pedestrian poles will be added as I just said
pathway Paving full replacement of the soft surface play
lot and ex, uh, refreshing any broken or outdated
playground equipment will be included in this project.
The budget will be uh up.
To a million dollars and the large portion of that is the
pathway Paving throughout the whole park.
And that's it. Is it on this park?
any questions
uh, Alderman Conway
First off would say it's no secret that the West Loop has
become an increasingly dense area. We put a new word there,
which I'm which I'm proud to represent and the West Loops
about 65% of my ward. Ugh. So while while both these Parks,
um, I'll speak to Union Park as well as the next project
Skinner park at the same time for efficiency sake but uh,
both of these parks are heavily used probably more heavily
used by by residents of the 34th Ward. So, uh, I I urge my
colleagues to to vote for uh, this um Improvement as well
as the Skinner Park Improvement because I can assure you
that not only do residents the 27th board, uh need this,
uh, but also residents of the of the 34th Ward as well, and
I also want to thank the park district as well as vice
mayor Bernett for spearheading the effort to improve both
Union Park and Skinner Park. Thank you madam. Chairwoman.
Thank you Vice chair Conway vice mayor Bernett.
Thank you very much. Madam Madam chair. Yeah this park um
coincidentally.
uh
I live by this park matter of fact, I walked there last
night but uh walked around there last night. This park has
been
The the walkway has been out of whack for a long time, uh
needs a lot of improvement, uh, coincidentally we have you
know, that's where Pitchfork is and a lot of different
concerts are in and those trucks and everything that just
come over. They just made everything mud over there. So,
this is a a needed Improvement. I appreciate the park
district. Thank you very much. And thank you, Alderman
Conway.
Thank you very much. Vice mayor alderman laspada.
Thank you so much chair. Great plug for Pitchfork Saturday
night lineup looks fantastic Alderman Bernett. Um, but
great project overall. I just wanted to make a a plug for
the park District's your actual transparency on this. So if
folks Google Chicago Park District Capital Improvement
plan, not only do we see like all of the 5 year plans that
you put forward, but you can actually look at from 2011 to
2024 a spreadsheet that lists every Capital project going
on at the park district for every single Park including the
status of it whether it's designed whether it's
mid-construction, whether it's been completed. So I I the
dialogue can sometimes feel like you're not putting that
information out there and it's all out there not only for
for the public but for us as well, it's my hats off to you
all on that.
Thank you cheer. Thank you Alderman the spot. I just want
to correct something. I had asked during my briefing I get
a pre-briefing on all of these projects before it comes
before finance and I had asked for a uh from the park
district a list of their capital projects for 2011 through
2024, which was not emailed to everyone so it will be
emailed to you today. Um, and so, uh, just wanted to tell
Alderman Lopez
Did you hear that you missed it too bad. Um.
Huh?
Huh that part, right?
Um, no, um, no not that you're always right, but on this we
do have information for the capital projects from the park
park district for 2011 through 2024, which I had asked for
previously as part of my briefing and it will be emailed to
all of you today. Thank you.
Can I get a motion to recommend approval of item number 4?
the move by Alderman laspata recommending do pass, uh, all
those in favor of the motion signify by saying I
opposed in the opinion of the chair the eyes have it and
this will be will be reported out at the next city council
meeting moving on to item number 5 is the ordinance
concerning the authority to enter into and execute and
intergovernmental agreement with the Chicago Park District
for the allocation of Tif funds to renovate.
the existing playground and Gardens site improvements to the
Tranquil garden and Roots garden and playground
improvements at Skinner Park located at 1331 West Monroe
Street. Also in the 27th Ward Beth
great. Hi again for the record. My name is Beth O'Reilly.
I'm uh Deputy budget director at the Chicago Park District
managing the capital programs. I'm here today seeking
900000 dollars in Tiff assistance from the Central West
Tiff for Skinner Park. The project is located at 1331 West
Monroe in the 27th Ward and the Central West TIF district.
Uh focused improvements to the gardens and the playground
at the park will be the primary objective for this project
site improvements to the Tranquil Garden Roots. Garden will
include concrete walkways and pads for additional benches
picnic tables water hydrants for the gardens and electrical
outlets and fencing
Uh playground improvements will include the removal and
replacement of the port and place soft surface.
And uh replacement of Select playground pieces as needed
when we get out in the field. Again. This is a summer
project this Tif expires at the end of the year and we are
out, um advertising these projects right now. This is
samples of what is out there. The 2 left pictures are the
playground surface, uh,
Unfortunately, they get vandalized quite a bit. So, uh, we
do have to go in and put the pads on underneath high stress
areas under the swings, but when they get to this point it
we just have to pull the whole thing up. Um, this improved
part of this part will include that redoing of that sand
feature because it is not a Ada accessible and that will be
re-engineered uh for full access, uh for people of all
abilities.
Um the sidewalk and fencing options. Um
This is the sort of the concept of the plan as it's coming
together. There's a very very robust Community involvement
out here with the community garden. These are samples of
the fencing that we are looking at around the Garden area
and you can see where the pathway work is already set to
design.
As I mentioned the Tif expires at the end of the year, so
we are out on the street now, um, trying to get all these
things.
Finalized and designed and out to bid.
so, um
That is the basic gist of this project. Thank you Beth.
Any questions for this project?
Alderman brunette yes, uh, first of all, I want to thank my
colleague Alderman Conway for sharing this with me. And as
he said really this is most of most of the people that
frequent that Park come from his Ward, you know, I take
care of his Ward like I do all these other Wards, you know,
so he owes me. I'm just kidding. But anyway, um, thank you
all very much Tim. I got a question for you. I'm very
concerned about this. I appreciate I know this Tif is going
to expire we was talking about
keeping a piece of it in there and extending it is is are
we gonna carve this out of the bond deal and keep this part
inside so it don't go away because it's because I thought
we was gonna carve some stuff out and keep the stuff West
because Union Park is part of that Tiff. Also that's
supposed to be expiring.
Uh Tim Jeffries managing Deputy Commissioner for dpd, uh
Alderman, you're gonna have to give me a give me a little
bit of time to review the whole scope of work for every
Tiff. We just we know that I mentioned Englewood on the
floor earlier because the state took action on that 1 but
we're still reviewing the the holistically all of the tips
that are expired.
Iring in the next 4 years to to understand what how we're
going to sequence you put the mic closer. Uh, Tim, I can't
hear you. I said that speaks slower.
Uh, we are right now reviewing all of the Tif districts
that are going to expire in the next 4 years and figure out
how we're going to sequence those. Uh, we're close to being
able to to start talking about those but we're finalizing
our review and data analysis now,
so what I'm asking Tim that Central West Tiff right was you
was mentioning the bond.
right
Are we going to carve out part of it?
Uh the East part and let the West part stay that's where
we're we're we're doing the analysis on that scenario now.
All right. Thank you because we need it but
More stuff going west still need the Tif understood. All
right. Thank you.
Thank you. And you support this project? I support this
project 100% Um, you know, I feel like you know, we fund
all of the park district. That's how I feel because it's
like I'm always funding all these.
Projects so I like to see the capital budget too because I
don't see where y'all spending your money at. So, oh you'll
see it. Okay. Thank you heaters roofs and windows.
So, um Alderman brunette you're making a motion
recommending do pass.
All those in favor. Thank you for that that interpret
interpretation all those in favor signify by saying I
opposed in the opinion of the chair of the eyes have it and
the recommendation of due Passover reported out at the next
city council meeting item number 6 is an ordinance
concerning the authority to enter into and execute an
intergovernmental agreement with the Chicago Park District
for the allocation of Tif funds for site improvements,
including the restoration of the existing volleyball courts
in horseshoe pits, a new pickleball pickleball courts
courts landscape restoration restoration and benches at
Wells park located at 23333 West Sunnyside in the 47th Ward
Beth.
Great again for the record. My name is Beth O'Reilly and
I'm here today to request your approval to enter into an
intergovernmental agreement that would provide the park
district with 400,000 dollars in Tiff assistance for site
improvements at Wells park.
The park is located at 2333 West Sunnyside.
In the 47th Ward and is located in the Western Avenue North
Tiff.
our um
at the request of the community, uh, and again a very
active Community coming for improvements at this park. This
site work will include the construction of 3 new pickleball
courts and the rehabilitation of the existing sand
volleyball court and a redoing of the horseshoe pits of
which there are 10.
Uh new benches will be included in the scope as well. Um,
this is the area. This is the horseshoe pits on the left
and the sand volleyball on the right this area. This sort
of open area is what we are going to be converting into new
pickleball. They will not be going on. The existing tennis
courts. They will be exclusive to pickle ball and that is
sort of the raised area on the right. It's a different
perspective of that shot.
Uh, so this is just a quick site Improvement. This is how
the layout will be. Um, the pickle ball up to the left
there and sand volleyball court and the
For shoe pits which I didn't even know we had and there's
very active group up there that plays more shoes.
So you can join their Club.
And uh, this is where the funding will go. Um, it's pretty
easy site Improvement project. Again. This Tif also expires
at the end of the year. So this is a time of of the essence
for us. So when to the point how we schedule projects it we
really do follow the money and when the money is expiring
we hustle up and try to get as much built with those funds
before they expire out.
Thank you Beth, and we do have a letter of support from the
alderman Alderman Martin and also a letter of support from
Alderman, uh Vasquez who equally share
Uh this Tif um, is there a motion are there any questions
from members of the committee? Is there a motion? Yes
Alderman waguespack that just a quick question. Um,
was the lighting for this area included in this effort to
try to light up the whole um
Park
That started like a year or so ago.
It may have been I can investigate but wouldn't I was just
curious if you knew offhand. So yeah, I mean I could find
out for you if there's a lighting it could be an LED change
out project going on now.
But I can find out for you. Okay? All right. Thank you
Alderman waguespack. I'll make a motion if you like
chairwoman. Thank you motion made by Alderman waguespack
recommending do pass the item number 6, uh all those in
favor signify by saying I post in the opinion of the chair
the eyes have it and the motion will be reported out the
due pass motion will be reported out at the next city
council meeting item number 7 is an ordinance concerning
the Second Amendment to the intergovernmental agreement
with the Chicago Park District for the provision of Tif
funds for improvements at Revere Park located at 25509 West
Irving Park Road in the 47th Ward.
Beth
um, thank you. I am here to request your approval to amend
the existing intergovernmental agreement to allow for the
renovation of the existing tennis courts as part of the Tif
approved scope of work at Rivier Park.
The cost of the work is expected to cost around and there is
is available Tif funding Authority remaining under the
original agreement.
The project is located at 259 West Irving in the 47th Ward
and is located in the Western Avenue South Tiff search.
there um
This project came to us from the community. They were
actively fundraising and uh, we're trying to secure
automatic menu money to uh, renovate these tennis courts.
We are winding down on a very big renovation of River Park
and the boys and girls club next to it.
We do have Surplus funding in that project budget. And so
we would like to assume some of that available funding and
expand our scope of the project to include some site work
specifically these tennis courts.
So it's not new money out of the Tif. It's just adding this
as an available and authorized use of those funds. Um, the
existing quartz look like this very very active Community
up there. Um,
In support of this the alderman has reached out to us, um
over the past year when we were trying to finalize what
left what work needed to be done at River.
And if we would have capacity in our existing budget, and
we do so this work again this tip also expires at the end
of the year. So we are.
Uh out on the street with um getting this work done now.
And it's just pretty basic resurfacing restriping new Nets
bowls fixing the fences if we need to basic site work.
Thank you. We do have a letter of support from uh Alderman
Martin on this project. Um, is there a motion are there any
questions?
Alderman waguespack again moves due pass on this motion all
those in favor
signify by saying I
post and the opinion of the chair the eyes have it and this
will be this due pass motion will be reported out at the
next city council meeting. Thank you Beth Or Riley good to
see you.
Um item number 8 on our agenda is an item from the
Department of Housing and ordinance concerning the issuance
of multi-family housing revenue bonds for 208 LaSalle owner
LLC for a mixed low and moderate income and market rate
housing development at 208 Southwest South Street in the
42nd Ward. Ugh
in the amount of up to 7 0. 5
good afternoon chair. Uh, my name again is Kara breams. I'm
a financial planning analyst in the Department of housing's
multifamily Finance division. We're here today to request
recommendation to authorize a bond inducement at 28 South
the cell in the 42nd Ward where Alderman Reilly is the
alderman before we jump into the specific requests to
before you today chairwoman, Dal asked. We give a brief
overview of the loop revitalization Initiative for context
on this request and Cindy. Rubeck.
Uh, Deputy Commissioner from dpd has been leading that
initiative. She'll provide that overview. I also want to
acknowledge Hunter Gillespie and Chris law from AECOM who
have helped us do due diligence on these requests and who
are here today, and I'll turn it over to Cindy.
Thank you Kara. Good afternoon committee members, uh, can
we advance the slide please? Uh for the record, my name is
Cindy Chen Rubik. I'm a Deputy Commissioner for the
Department of planning and development.
As Kara mentioned I'll summarize the overall Loop rev
revitalization initiative along the L South Street
corridor.
For Salle Street. Today is the historic Financial District
of the city. It's a center of commercial economic and
government activity. It's lined with iconic highrises.
However, this important Corridor is experiencing
unprecedented levels of vacancy in both the office and
Retail sectors.
Lal Street tomorrow is transitioning away from its
monoculture of office uses into a mix of uses and
neighborhood amenities that go beyond the typical 9-to-5
workday public and private investments will address the
high vacancy rates to create a welcoming environment rooted
in an equity and resiliency.
How will this be achieved?
City is census is targeted to implement 3 goals first to
support the conversions of existing buildings to create
more housing and affordable housing to support locally
owned cultural and dining businesses. Be it via our small
business Improvement fund grant program and also to create
an inviting and forward-thinking Street.
How did we get here? This is the timeline. So you all know
we had the coid pandemic in Spring of 2020 this
significantly exacerbated office and Retail vacancy rates
that had already been challenged by aging and older
buildings Office Buildings and the rise of e-commerce.
During the pandemic the city and several of uh, your
colleagues, um convened over 150 stakeholders, and we
identified 90 action items that was published in the
Central City recovery roadmap in 2021, these
recommendations included repositioning the loop and its
historic Financial core to be a more vibrant inclusive and
mixed-use environment.
Dpd then sponsored additional studies which identified that
the LaSalle Corridor had the highest office and Retail
vacancy rates of all of the downtown submarkets.
Although residential and hotel market demand in the loop
are strong and have rebounded. Well post-pandemic. These
studies also recommended City assistance be provided, uh
for mixed income residential.
To proactively address these market conditions the city
announced an invitation for proposal in the fall of 2022
for the proposed conversions of underutilized office space
into residential uses.
For consideration of cities assistance requests a minimum
of 30% of the units had to be for affordable households.
Averaging 60% Ami
After evaluating the submitted proposals the city continued
with the underwriting process with the selected proposals
and earlier this spring the city announced support to
proceed with 4 adjectives, and we're continuing to evaluate
2 projects.
I just want to clarify for today's committee on finance
meeting. We are only considering the bond inducement
ordinance for 2 of the projects and we will be targeting to
return to the committee on finance. This October for the 4
prophetic will still need city council approval. Um,
hopefully this fall and we're targeting to close them
before the end of this year and then construction could
begin and then leasing we're hoping will start in early
2026.
in addition to the Adaptive Reese component, as I said the
city's providing small business Improvement Grants for the
first time ever in the loop to address downtown's vacancy
retail challenges. And so the first round was uh launched
last septembar, we're processing 6 of those applications
and then another round will be uh released this septembar.
And we're also currently engaging the public on the south
street visioning. We had a public open house over a week
ago and a survey that is ongoing.
And we will also have a booth on Sundays on State this
Sunday to gather feedback on how we can improve the public
realm along this historically significant corridor.
this next slide outlines the general underwriting process
that was undertaken for these adaptive reuse proposals
budgets were compared to Industry standards and precedents
evaluation metrics were defined other incentive programs
were researched and explored revised submissions were
received additional analysis was completed. So as I said
before for proposals are ready to proceed through this
legislative process,
there are multiple factors the next slide driving the
funding gaps for these projects.
As you all know conversion costs are quite High larger
office building Footprints are inefficient and costly
modifications are often needed for New Uses. And then of
course interest rates are the highest they've ever been in
over 20 years.
specific to the Lal Corridor many of these buildings are
older Office Buildings and require significant investments
just to meet current codes land values in the loop are
still relatively High compared to uh, the vacancy rates, uh
and 30% affordable requirement, uh, identified in this
initiative lowers the rental revenues and it adds
complexity but also brings additional sources such as
low-income housing tax credits and tax abatements.
Several of the buildings also require higher standards for
rehabilitation due to their historic standards.
This next slide shows the location of the 4 add of reuse
proposals that we are reviewing note again that the uh tax
Texans have Bond inducement ordinance presented today on
the agendas are for the projects at 111 West Monroe and 208
South lasell.
And for the record again, all 4 projects will need to come
back to the committee on finance where targeting the of the
October meeting for the Redevelopment proposal. Thank you.
I want to go into the actual. Okay presentation to save
time. Okay. Thank you.
You'll have to skip through this slides then.
This just goes through the community benefits of the
proposals.
Okay. Thank you Cindy. So there again there are 2 Loop
revitalized projects before you today. We'll first be
looking at 208 South Lasalle. Um again, it's in the 42nd
Ward Alderman Reilly has uh is supportive of the project as
you heard. Um, we're also joined by Jeff Breeden today, uh,
who's representing the developer Prime group.
We're requesting that city council authorized a bond
inducement for up to 70.5 million in tax exempt bonds to
enable the creation of 226 residential units in what
currently is vacant office space 68 of those will be
affordable units, um at 208 South the South
This is a bond inducement only. So again full underwriting
will return uh to this, uh committee, um, and to city
council for approval. Uh, we hope later this year.
Uh 208 selfless cell is located at the southern end of the
LaSalle Corridor immediately across from the historic
Rookery building.
It was designed by DH Burnham and Company and completed in
1914 by Graham Anderson probes in white it's listed on the
national register and it's a Chicago Landmark. Um, both of
those happened in 2007.
Uh Prime group purchased the building in 1996 when it was
90% occupied the building lost its anchor tenant in 2007 in
the developer subsequently began construction of the
Marriott hotel which Alderman Reilly referenced um that you
see there in red on the side in front of you. Uh, it was
completed in 2010 and with 610 rooms, uh later, um in 2022,
they developed the LaSalle Hotel on Floors 18 through 21
that has 232 rooms the developer submitted an application
for this the space that you see highlighted blue, which is
floors 13 through 17, um in response to the city's request
invitation for proposals for the Looper vitalization
initiative to rehab those floors into housing.
The development again would include 226 units of new
residential housing. The 68 affordable units would serve
households earning between 40% of the area median income
and 80% of the area median income as you can see here. Uh,
those averages would be 60% of the area median income.
The rents. Uh, so you get a sense of what those rents look
like. Um, the affordable rents range from 773 for a studio
to 1545 for a studio depending on the income of the tenant.
The comparable Market rents for those same studios are
roughly 2300 and you can see the other rents, uh in the
chart in front of you.
The proposed sources and uses again. We're still in early
stages of underwriting but as um, what the budget looks
like now is a total development cost of 122.7 million, um
of which the vast majority is for the hard construction
costs.
um
Uh, they are currently it looks like the project would
request 26.2 million in Tif funds from the city. Um, and
that would be the extent of the city's contribution to the
to the project the tax exempt bonds and the amount of 70.5
million, um would help to unlock the Ford percent, uh,
low-income housing tax credits, um, which would generate
roughly 10.9 million in
equity for the project
Uh, the development team is led by 208 lell owner LLC. Um,
which is uh,
The developer there is the prime Group Inc. They've
identified we O'Neal as the general contractor and Lamar
Johnson collaborative and Lucian. Lra Studio as The
Architects for the project.
Uh on LaSalle Street Prime group is um developing the
Thompson Center at 100 West Randolph as well as the beimo
office campus at 15 South LaSalle and 111 West Monroe,
which you'll hear about later.
The development will meet or exceed their wmbe MBE
requirements.
This concludes my presentation again. We'll return to city
council later this year for your review of the final study
funding requests and programming including the
Redevelopment agreement.
Are there any questions from members of the committee?
alderman laspada
Thank you very much cheer. Thank you Kara. I'm I'm curious
because
I just want to talk about the 2 of them together if it's
all right, because we're doing a similar Revenue Bond
inducement ordinance after this.
for 111 West Monroe Street
What What bond program are these tied to these attached to
like the the bond ordinance that we passed?
Okay, so different. Can you talk about that? Yes, so it's
the affordable housing tax exempt bonds. Um, the the city
has an allocation that they can issue to fund developments.
Um, it's a from the federal government. So it's it's the
the source that we have long used to do affordable housing
development in the city. How large is our annual allotment
of the
my Deputy Sam to speak to that. I'm sorry. Can you could
you say how often would do we get an allotment of credit?
Yeah, what's our annual allotment for the yeah, so we get
an annual allocation, uh of tax exempt bonds to do a
portable housing gets roughly about 270 million dollars.
Okay 2006 so we're putting a solid third of that into these
few projects. So it's an accurate read know and you
actually hear me talk about this. When I do the item Bond
deal to explain how um how our tax how we get the bonds and
they have a 3 years lifespan. So, um when we get them, so
the ones that we're using now are the ones that we had for
2021. So we're sort of back using bonds that we have in
existence in our pipeline Tim with the top 4 to understand.
Could you also just go back to the sources and uses for a
second?
It looks can you explain GP equity in their?
hundred dollar contribution
that's a function of the tax credit. So they actually are
putting more Equity into the project so that the 10 million
so they have to put in at least a hundred dollars, um, in
order to access the 4% low-income housing tax credits. So
we always will show that on our budgets.
often
that may be the only source for affordable housing
developments for equity in this case. However, they're
putting in equity representing 10.2 million. Okay, so that
is also the owner Equity. Yes. Okay. All right, that's
helpful to understand. Thank you very much. Thank you.
Thank you cheer. Thank you. Alderman laspada.
Um Alderman Conway, I know you Alderman, uh, Riley spoke on
behalf of this. Do you do you want to add anything here
would you? Yeah, I'm happy to speak on uh on 1111 just to
just to and also, you know, I mean, but broadly I mean
every every city in America. If not, the world has had to
rethink its Central business district as opposed to 1 where
people can simply work but they have to be able to live and
eat and Shop, uh, and clearly this, you know our program
for doing that is of course, uh LEL LEL Street reimagined
which is now um, moving forward and and gone through 2, uh,
2 Morrell administrations speaking on on 1111 specifically
like like, um, like 208 it is a historic office building.
Building, uh 111 in particular will have 345 units. I'm not
we'll get to 111. I thought that you Alderman Reilly left
me a note that said that you might want to speak in support
of this and he left me a note saying hey if I'm not here,
can you speak on I'd be happy but then he was able to speak
during the bond thing. So I will simply say well I can add
it as a historic office building 226 unit 68 historical and
we'll do a and we'll uh,
Bring necessary, uh Redevelopment to the South Street.
That's all I got. Thank you. Is there a motion to recommend
approval of item number 8 on the agenda? So moved by
Alderman wag his back recommending do pass all those in
favor signify by saying I I although suppose in the opinion
of the chair the eyes have it and the motion carries will
report the due pass.
On this ordinance out at the next city council meeting.
Thank you.
Carl and Cindy
you're gonna stay Cindy.
I'll just say in case there are questions about the overall
initiative. All right, uh
Item number 9 from the Department of Housing and ordinance
concerning the issuance of multifamily housing revenue
bonds to 111 West Monroe LLC for the Mixed income.
And low and moderate mixed income and market rate housing
development at 111 West Monroe in the 34th Ward.
Up to 88 million dollars. We are joined today by Ryan
Slattery.
and
Cindy Rubik from the Department of Planning and Development
Ryan's from the Department of Housing right? Thank you.
Good afternoon, chair members of the committee for the
record. My name is Ryan sluttery. I'm a financial planning
analyst for the Department of Housing. Uh also here with me
today for the 1111 team is Jeff Breeden from Prime group in
Quintin Primo from Capri Investment Group.
The requested action for today is a request to see to issue
multi-family housing revenue bonds notes are and then this
and amounts to not exceed 88 million dollars for 1 111 West
Monroe.
Uh, the original 20s story neoclassical West building was
designed by Shepley rutin and coolage. It was built in uh,
1911 for the Harris Bank and savings, uh, Harris trust and
savings bank and then in 1958, uh, Som designs and adjacent
East Building for Harris Bank in the postmodern style. It
was prevalent after World War II the 2 billions are now
commonly known as 111 West Monroe.
The development team is proposing an Adaptive reuse and
conversion of approximately 30015 thousand square feet, um
for the building located in part the Project's located in
partial of the ground floor, uh portion of the 11th floor
and then floors 12 through 23, uh, we'll be converted into
345 residential units of which 104 105 will be affordable
units for households earning no more than 80% of the area
median income.
uh, the project will also feature residential amenities
including a fitness center a lap pool bike storage, uh
private dog runs store space and then a private rooftop
Garden Terrace with barbecue facilities.
This is showcases how the uh, the building's broken out or
how it will be broken out. Uh, so the lower levels will be
converted to a hotel while the residents will be in the
higher stories. Um, as I mentioned previously, uh, the
Monroe Club will be on the top 2 floors and available to
all residents and the hotel guests.
So here's the proposed unimix, uh of the breakout of the 345
residential units, uh with Studios to 2 bedrooms. Um,
of which the 30% or the 4 will uh within the 40 50 and 80%
Ami
and then also within 208 we also have the breakout of the
mentally of the monthly role of the monthly rent. Sorry.
Uh, so you can see again the uh affordable studios are from
720 to 1492 compared to 710 to 2223. So
I think with the 1 bedrooms 2 bedrooms, the 4 bowls are
drastically uh reduced.
Uh again, we're still in the process of underway in this
project. We anticipate the source in this is shown here.
But here's the into space horses. Um, uh here, uh with the
city assistance currently projected at 40 million of Tif
funds and 20 million and Equity generated by the 4% litec.
uh, the 4% credits are non-competitive tax credits and the
developers use these sources which are text them bonds to
unlock and reduce the potential Tiff ask
Uh, the projects also shows an acquisition class of 52
million this resents this represents the appraisal value of
the residential floors of the building. The city funds will
be reimbursed for the developer, um for this exhibition
uh, the prime group was founded in 1982 by Mike roeske who
serves as the chairman CEO Prime group has developed over
12 billion dollars of real estate, uh on the sale Street,
uh, as also mentioned in uh, 2 ways presentation the
Thompson Center the Google building buildings being
developed as well as 208. Um, and then for Capri interests
Elsie was founded in 1992 by Quintin Primo who serves as a
founder and executive chairman and its 30-year history. Um,
Capri is completed more than 14 billion dollars in
Investments related to transactions through separate
accounts and dual investor Partnerships senior in sport and
loans and come out mate funds.
that
Thank you for your time, and we're happy to answer any
questions you might have.
Any questions for members of the committee on this?
Alderman laspada, thank you so much.
Thank you so much, sir, um through the chair.
May I ask for the assessed value of both 111 West mono
Street?
and 28 208 South Las South
Um, and then my other question just on the table is why
both developers this might be more of a do question. So I'm
happy to have somebody else answer. I'm in the US there. So
you're good. My apologies. Well, I'll try help. Um
Why why the relatively low?
The unit mix the seismics why the relatively no low number
of 2-bedroom units in both of these developments. Do you
know what the motivation there is? Yeah. So the the 2
bedrooms are usually with with our 4 wheel deals. Those are
usually the hardest ones for us to go ahead and have rented
out. Um, and we've did a market study they come to the
market study and we've looked at it through um, and the
studies and 1 bedrooms are really the ones that are easier
to earn are more a need within this area. I surprising the
loops household size 91% of the household size are 1 and 2
person households in the loop community area.
So that's why you're looking at smaller units.
There's a there's a real curiosity to that.
something of reflect
its striking to me that either No 1 in the loop has
families or No 1 who has a family wants to live in the loop
1 of those 2 things is true. And I I'm I'm curious to dig
in more on that, but I know that the plane commission is
working with your teams on the Central District plan. So
the conversation for another day. Thank you. Thank you
cheer. Thank you Alderman the spot.
um
Cindy that's the trend you're seeing in the
places like the South Loop as well
I'd have to look at the numbers because every community
area has specific data, but I can share that with you. I'd
be interested in that I'm seeing similar kinds of activity
in the private Market. I just want to confirm.
That point um Vice chair Conway. Yeah, I I would simply add
that. This is going to allow us to really take advantage of
of Google coming online as well and can and can to some
extent be a uh,
a supplement of Workforce housing, uh for the jobs that
will create in this in this historic office building, uh
that we've already heard about and I asked I asked for your
support. Thank you very much madam chairwoman.
All right, seeing no other questions. Can I get a motion to
approve item number 9?
so moved by Alderman Moore, uh all those in
favor signify by saying I
Post in the opinion of the chair the eyes have it and the
motion carries and will report this do pass recommendation
out at the next city council meeting.
Item number 10 is an ordinance concerning the issuance of
multi-family housing revenue bonds to hpumc Redevelopment
limited partnership for the construction of low-income
housing development at 2120 North Mozart in the First Ward.
We're joined today by Miss Shen financial planning analyst
for do
Good afternoon, chair D and members of the committee for
the record. My name is ISA financial planning analyst from
Department of Housing. I'm presenting bound inducement for
the Redevelopment of the Humble Park United Methodist
church located at 2120 North
was a straight Logan Square community area. The project is
supported by the first world Alderman Daniel laspada.
the ordinance for this city council is to issue up to 10
million dollars in tax exempt housing revenue bonds for the
benefit of the developer Latin United Community Housing
Association Lucha for short to finance the accusation and
the construction of the project.
The subject property is located at the southwest corner of
North Mozart Street and West Shakespeare Avenue the
majority of the subject property encompasses. Approximately
8,300 Square ft and is developed them with an irregular
shaped partial 3 staring mixed use structure. The southern
portion of the subject building is utilized as the Humble
Park United Methodist Church the Central and the northern
portion of the subject building contains.
Uh, 12 residential units and several community and a
storage rooms.
The purpose of the project is to acquire and rehabilitate
the existing church building along with its attached
apartment building construction will include a substantial
rehab of the existing 12-unit residents and the Adaptive
reuse of the church Sanctuary space to create 10 additional
Apartments, the existing external structure of the
sanctuary will be preserved. And in order to adapt the
sensory space into Apartments will require the creation of
a floor structure to support a second floor of apartments.
Hpumc Redevelopment limited partnership will be the
ownership entity. Lucha will be the lead developer project
manager. And so member of the general partner. The project
architect is canopy architecture plus design and MBE
architectural form. The GC selected is a joint venture
composed of Korean construction and the total construction
a certified MBE.
The unit mix includes 8 Studios 81 bedroom units 3 2
bedrooms and 3 3-bedroom units units will serve low-income
families and individuals from 15% to 50% Ami 5 units are
set aside to serve individuals who qualify for permanent
Supportive Housing units. There are individuals experienced
or at risk of homelessness with disability. The other 17
units will be open to the general public and there will be
a public wait list that will open towards the end of the
rehab.
The development will be financed with various sources from
City of Chicago with up to 10 million dollars of tax exempt
housing revenue bonds being issued. Um being issued to
raise approximately 7.6 million dollars equity for the
benefit of the transaction grants from Chicago recovery
plan and a loan from Department of Housing multi family
program other fundings will consist of a grand from hot
Community Project funding a grant from fhlb affordable
housing program a grant from state of Illinois state
capitol group budget Grant a grant from Comet as well as
Illinois's donations tax credits and a GP equity.
For the cost side Lucha has a purchase contract in place
with the owner hpumc Incorporated with the overall
acquisition cost of 1,968 and 500.
66% of the total cost will be attributed to the hard cost
and the 23% for sub cost.
So the ordinance uh inducement at this city council is only
for the approval of the use of tax exempt Bond proceeds to
reimburse project cost incurred prior to Insurance of the
bonds ordinance for full financing for the project will be
submitted to the committee in Q3 this year for review and
approval that future ordinance. Will then contain a
Provisions related to the bonds.
That concludes my presentation. Thank you for consideration.
Thank you. Miss Shen. Um Tamara just if you could this is a
higher unit cost 1.
um
is this because of the sanctuary?
I'm sorry say that again. The the per unit cost is over
850,000 and I know you always talked to us about the high
cost of construction and it is a very small project. Um,
it's 22 units, I believe so that contributes to it. But
also it's a rehab project inside of a church that you're
doing sort of a conversion which also makes it a lot more
expensive. So, um to that end it you're going to see the
cost be be a little bit higher than what we normally see.
And do we know how many units are in I know you know the
answer to this. So how many units are in the sanctuary?
I believe 12 of the 22 my my colleagues from Lucha Lincoln.
Come to the mic.
Thank you. Uh
committee personnel and members of the committee, uh, 9
units will be located in the space that currently houses
the sanctuary a 2 Story sanctuary as well as a basement.
Oh, yes for the record. My name is Lincoln standard
director of Community Development at Lucha.
Thank you.
Alderman Moore
Correct. We are in number 10. Yes, right, so
to
This is how many units we say it again?
22
and
multi family housing revenue bonds. I'm used to these but
for 22 units at 10 million.
Explain that again.
Sure. Yeah. Um, so this is a an Adaptive reuse project. So,
uh to rehab a building and convert it into affordable
housing. Um, so the cost on adaptive reuse are generally a
little bit higher, uh on on on those projects, but also
it's a small project only 22 units. So you don't get the
economies of scale that you have on our typical deals which
are 50 to 60 units. So
How much is the total cost of the development?
Can you put that slide back up Isa?
19.25 million
Yes, 19.2.
29 million, excuse me.
All right.
Do is that I'll find that it's do we have that? Uh, that
document is still being our um,
This information. I should already be an hour. Um
With these things. Yes. Yes, uh all the men more all of
these documents are sent to everyone. Yeah, I'll put it.
I'm not feeling good about this. All right, thank you.
Thank you Alderman wagging back followed by Alderman
laspada. Thank you chairwoman. Um, what what was the
applicant application date for the multi housing, uh, multi
family housing revenue bonds.
The data, uh the date we got the application.
Right. When did we start the process for? Um
the application
sorry for the record Tamara Collins. I believe we got the
original application in our 2021 funding round. Okay, um,
but it did not make it through the 2021 funding round for
the 9% So we decided to restructure it as a uh tax exempt
Bond deal.
To try to make it work. And then that was this year. That
was the yes or last year actually 2023. Yes. Okay. Thank
you.
Thank you very much. All the wages back ultimate Spa.
Thank you very much chair. If folks really want to dig into
a longer conversation on the cost of this. I'm happy to
talk about the last.
3 years of my life working on this alongside Lucha knowing
them from reputation from long before. I was an older
person their projects at in quentro square the Tierra Linda
Apartments, what they do is consistently
High quality highly affordable culturally relevant housing.
Um
I know that there's a lot of respect in this project. I
know that the holding costs at I know that a lot of the
times adaptive we use is a much more difficult way to do
housing.
I know that certainly in the past there. There are
roadblocks put up. Sometimes internally, sometimes
externally on projects like this, but I'm glad that all
parties involved in this party persisted because if you
want I can walk you.
Less than a half mile down the street to the church. I was
married and on Logan Boulevard that was converted to 20
market rate Apartments.
Well, nobody can walk into because oddly enough in this
city. We make it easier to convert a church into market
rate housing than we do affordable housing and I'm glad to
see that changing and I'm glad to see a project that is a
Transit oriented development. That's going to be low to
zero emission that's going to be wholly affordable. Um,
Really proud of what we're bringing before the committee
today and I do ask for the committee's favorable
consideration. Thank you chair.
Thank you Alderman. Laspada, uh seeing no other questions.
Is there a motion to
recommend do pass of
so moved by alderman laspada.
All those in favor signify by saying I post and the opinion
of the chair the eyes have it and this item will be
reported out at the next city council meeting Alderman.
Thank you very much. Miss Shen Alderman Mosley Vasquez
seicho Lopez have requested remote participation under rule
59. Can I get a motion to allow them to participate?
The move by Alderman Quinn, uh all those in favor signify
by saying I opposed and the opinion of the chair of the
eyes have it.
Um item number 11 is an ordinance concerning an amendment
to the United Yards Project ordinance to correct the legal
description of the project sites and to authorize other
financial assistance to the new city Redevelopment limited
partnership for the affordable housing project at 1515 West
47th Street and 1641 through 43 West 47th Street in the
20th Ward. Um, we're joined by Vanetta Jones from the
Department of Housing.
Jones
Thank you. Chairwoman, Dal and the members of the committee
for the record. My name is Vanetta Jones with the
Department of Housing. I'm here today for United yards 1A
and to uh, make an amendment to our previous ordinance from
December.
Today's requested action from the committee is for approval
to increase the bond amount from 22, uh, 22.5 to 25 million
approval to reorient the 2 3 flats and amend the legal
description as such.
United yards 1A ordinance was previously introduced to
Committee in November 2023 where we requested issuance of
up to 22.5 million in bonds issuance of up to 14.5 million
in Tiff, and we granted the sale of 1 city-owned lot
located at 1515 West 47th Street for the per uh for the
purchase of 1 and to establish new city Redevelopment LP as
the developer.
These actions received passage in December.
So the city is requesting to increase the amount of the
bonds to ensure that we help mitigate the risk of the
developers from falling into a gap keep in mind. This will
just be an up to amount and at closing we will only issue
the amount of bonds as needed to meet just the 50% test.
Excess funds will not be given but will be held aside in
case as needed.
When developers received 4% litec through bonds, they must
ensure their Construction Plus. Their acquisition is at
least 50% of their bond amount. There are other items that
fall in this category, but these are the main items.
If developments fail to meet this requirement They will
receive a portion of the eligible basis financed through
the tax exempt bonds for existence exist in for instance.
I'm sorry if they are at 45% then they will only receive
45% of that funding leaving the other F 5% to fall subject
to Gap.
Finding uh, this will leave the project to finding
additional funding from or the city having to come back to
council.
Therefore this request is to be proactive and will help to
prevent funding and construction delays and the event of
cost overruns or increases during uh during construction.
So this slide is just to help for just a visual example if
you have construction and acquisition at 20 million your
bond issuance at closing will be 10 million.
This will help to meet the 50% test.
however after closing
If you have construction increasing and you need an
additional 1 million.
For for that reason then if you only receiving 10 million
dollars in uh bonds, then that test has failed that 50%
test has failed.
They would need 10.5 million to meet the 50% test.
So how this is to help make sure that we are.
Above a little bit above that 50% test as the city. We like
to give an additional Gap. I'm sorry an additional maybe 4
to 5% to make sure that we don't fall short.
This slide is just a recap the pro proposed total
development cost for this phase is approximately 45
million. The project will generate approximately 20.9
million and 4% tax, um Equity from tax exempt and bonds in
addition to the tax exempt bonds. The city will provide
14.5 million in Tiff and 7 million in CRP Chicago recovery
refunds as stated previously.
For this slide. I was asked to put together a visual to
better show the site which I hope will give you a better
visual breakdown on the site reorientation.
The green outlined is where the brewery will be located.
The yellow is where the modular units will be located were
to be located.
So it's the long rectangular yellow section.
Okay, the pink is now located. I'm sorry. They will now be
located in the pink rectangular section. Okay?
However, we are here today. Um as the orange, um,
highlighted area was not previously listed in our
ordinance.
so in this slide, it shows the mass rendering that passed
in December Council. It shows the brewery on the West 47th
Street and the 2 3 Flats facing south Marshfield.
So if you look a little closer on this slide, this side
will reflect how the mass rendering will look based on this
new reorientation. Uh, we will be re-orienting the 3 Flats
to face West 47th Street.
Okay, so I would like to say based on this. Um, we did
however, um at the request of alderwoman Taylor take this
project to have a um,
A community engagement meeting, uh in the united yards. We
did have that meeting in April and according to um, there
was a mass, um Flex of of her community who were okay with
moving this orientation back to this original, um towards
West 47th Street.
So today I have uh with me um, Rafael Hernandez of
Blackwood to answer any questions you may have we ask for
your approval and support. Um, we did have Aaron Weisner of
Celadon. However, he did have another United yards meeting
on site that he had to rush to. Um, but he is here, uh,
Rafael Hernandez to answer any questions that you may have.
Um, this concludes my presentation. Thank you, Miss Jones.
Are there any questions for members of the committee?
Seeing no question, excuse me, Alderman waguespack. Sorry
gonna make a motion to pass Alderman wager swag makes a
motion to do pass this ordinance. Um all those in favor of
the motion signify by saying I post and the opinion of the
chair of the eyes have it and the due pass recommendation
will be reported out at the next city council meeting.
Thank you. Thank you very much.
um item number 12 is an ordinance concerning an amendment to
the 2023 city tax exempt private activity volume Bond cap
seating to the Illinois Housing Development Authority item
item ordinance, and we're joined today by Tamara Collins to
discuss this item Miss Collins.
Thank you.
Good afternoon, Madam chair members of the committee for
the record. My name is Tamara Collins Deputy Commissioner
for the Bureau of Housing Development. Today's ordinance is
requesting an amendment to the 2023 ordinance giving do the
authority to seed up to 150 million dollars in volume cap
to Ida for a period not to exceed December 31st 2025. This
is not to be confused with the bonds that we was recently
passed. These are the tax exempt revenue bonds that do gets
us part of its allocation.
While he puts the slide up, I'll continue at the city of
Chicago receives an annual allocation of tax exempt bonds
of approximately 270 million dollars and has on occasion
seated volume cap to both Ida and Cha
The authority to see volume capitalizing City to allocate
all or a portion of its excess and unallocated bonds to our
partner agencies for the developer development of
affordable housing.
In 2022 the city through dohc volume cap to Cha for the
rehabilitation of 2 senior housing developments. The first
1 was Albany Terrace, which received an allocation of 67.2
million in Vaughan cap, and the second proposal included
30.5 million in bond Capital Irene McCoy gains for the
preservation of 150 units of senior housing collectively.
The projects are undergoing Renovations and through the
seating of this volume cap. The city has preserved 500
units of senior housing without any additional subsidy from
the city.
Of allowing volume cap to expire Do's proposed the do's
proposing to see volume cap to Ida to generate and preserve
more affordable housing within the city bonds are generally
always paired with other resources, uh cash resources to
make deals financially feasible Ida as a state state agency
generally has more available resources to do a portable
housing Statewide.
And many of those proposals are located within the city of
Chicago at no additional cost to the city.
Between 2018 and 2022 Ida has issued approximately 1.2
billion dollars in volume cap for developments within the
city without participation from the city for the
preservation or new construction of multifamily affordable
housing. And as of today that number is now 1.5 billion
dollars.
In addition to the projects listed which were financed, uh
in the city without City assistance. Ida also works with
the city and Cha to fund deals, uh, um to for multiple
deals within the city of Chicago this includes millions of
dollars in volume cap, 9% tax credits and other soft funds
and then includes projects, which we know is Twin deals
which uh require a combination of both 9% uh, litec and a
volume cap, which generates 4% tax credits the desire for
the use of volume cap at both the city and Ida is
increasing but at a much more rapid Pace at Ida since they
are working on deals in and outside of the city.
These are just some examples of projects that have been
funded by Ida, um over the years without the city's
participation including Matthew senior housing.
brenmar Apartments
Ogden Commons A1
and 900 West Randolph
as it related to the amendment due to the large request of
Ida's volume caps across the state this amendment allows
the city to offset some of the multiple Bond requests that
Ida receives for City proposals like the city volume cap
for Ida also expires every 3 years and each agency makes
every effort to use the oldest volume cap first, so it does
not expire. For example, 2021 volume cap would expire in
December of 2024.
After the passage of the original ordinance in 2023, we
expected to issue a approximately 50 million dollars in
volume cap to Ida to support a deal, uh in the Southshore
Community.
As the project moved towards the closing both agencies
realize that the way the ordinance was originally approved.
We could not reimburse Ida for this project as a result ID
to close the deal without the city's participation since it
also required Ida to use the fresh volume cap at the city
would be seating instead of the existing volume cap that
they had to use at the end of the year. Additionally it
required Ida to use any volume cap in the same year before
the end of the year or return the volume cap back to the
city.
The original ordinance allowed the city to seed up to 150
million dollars in volume cap to either before 2025 and
that part of the request Remains the Same. However this
amendment allows the city.
Uh allows the city to reimburse Ida or offset some of those
uh, Bond deals that Ida has been has done and will continue
to do uh, and this will eliminate the the conflicts, um
future projects for the remaining 100 million dollars of
volume cap, and we would like to be able to reimburse them
for the project that they did at the end of last year.
If this ordinance is approved by the finance committee, The
Next Step would be city council approval followed by
agreements between uh do and Ida to negotiate. Um, the bond
amount seated for this year and then we will be able to
close and and see that volume cap to item. This concludes
my presentation and I'm happy to answer any questions.
questions from members of the committee
move to pass
Yes, Solomon Las we're getting into the but let's let's
talk about things because we we passed a very similar
ordinance last year by my recollection. We did. Yes, we did
we we talked about. Hey, how do we get into a position
where we're seating West Bond cap to it on a year-by-year
basis. And you said well the city's got to be in the
position to be putting more of our actual money into
affordable housing development. I'm very curious the the
bond ordinance that we passed generating affordable housing
funding through expired tiffs. Does the revenue being
generated from
That potentially put us in a position where we're seeding
less Bond cap in the future or is that just making up for
money that we're losing from other sources?
So we we see from time to time. It's not that like we do an
annual allocation. The last time we seeded to Ida was in
2020 for about 170 million dollars and then we seed it to
Cha in 2022 for just under hundred million dollars. So it's
not a frequent occurrence, but there are occurrences. The
thing that I will say is that Ida and the city are seeing a
lot more uh constraints on our volume cap, and because
they're doing stuff all across the state in addition to the
city. They give us about 8 projects a year in the city
where they where we actually participate with them and we
and that and those deals we actually pay money to
participate in those deals. These are deals that they're
asking us to participate in when we can um and and and
relatively small amounts. Why quite frankly to do very
large affordable housing developments that we wouldn't
otherwise have in the city because they could very well
take those lines and use them in other parts of the state
and you know, so from that perspective. Um,
I think that's how maybe we would respond to that. I
appreciate that and I appreciate the partnership and
certainly it would be far worse to just let the cap expire
I would like.
To figure out this is a offline conversation how we get to
a place where?
We're being able to keep more of that capacity in-house,
but that they can be a conversation for another day. Sure
and I would just say to that. Um, whenever we have the
ability to create and preserve affordable housing where the
city doesn't have to put its actual cash in the deal to me.
That's that's a win, you know, if you could because you can
still get those units and all we're doing is seating volume
cap to allow that to happen versus on the deals that I was
speaking about where they're twin deals we're doing I just
doing the 9 and the 4 percent collectively but we're
putting 101520 million dollars in cash into those deals.
So, um, I think from that perspective wherever we can get
affordable housing.
In any capacity, I you know, I'm I'm willing to support
that I'll take the wherever we can get to I I appreciate
that. Thank you chair. Thank you Alderman. Laspada Alderman
Quinn made a motion recommending do pass all those in favor
signify by saying I
Post Independent chair the eyes have it and the motion
carries and we'll be reported out at the next city council
meeting. Thank you. Thank you, Miss Collins. Um before we
go to item number 13. I want to acknowledge that Alderman
Scott Hall and Hall have requested remote participation
under rule 59. Can I get a motion to allow them to
participate so moved by Alderman list, uh Spa
It was just a slip of the tongue.
All right item number 13.
A proposed order authorizing the payment of various small
claims against the city of Chicago and this list of
payments was sent electronically to everyone if there are
no objections. These will be placed on the Omnibus on item
number 14 a proposed ordinance denying the payment of
various small claims against the city also, uh a direct
introduction and the list of payments denied was sent
electronically to everyone and if there are no objections,
this list will also be placed in the Omnibus.
Item number 15, uh settlements from the Department of Law.
Excuse me. I'm sorry item number 15 a communication
transmitting report of cases in which verdicts judgments or
settlements were entered into for the month of May 2024.
This report was also sent electronically to everyone and if
there are no objections, these reports will be placed on
file with the city clerk's office.
Moving on the item number 16. We have uh, 4 proposed orders
authorizing The Corporation Council to enter into and
execute settlement orders in the following cases.
16a is Isabelle keading versus the city of Chicago, uh in
the amount of 1.25 million. We're joined by uh, Deputy
Corporation Council Margaret. Mendenhal Casey.
Thank you chair and good afternoon Alderman. Um, the
Isabella Keating matter is pending in the Circuit Court of
Cook County in this case. The plaintiff Isabella Keating
was driving on Illinois Street, when a lamp poll slammed
onto her car the plaintiff alleges that the city
negligently maintained the lamp Pole.
She suffered a post-concussion or post-concussion syndrome
and PTSD as a result of that accident the Law Department
recommends a settlement in the amount of 1.25 million in
this matter.
On februari 25th of 2020 at approximately 700 p.m.
25-year-old Isabella Keating was driving at Illinois Street
near McLaren Court a light pole slam onto the plaintiff's
car while she was inside breaking her windshield and
denting her roof.
Review of the 311 database did not reveal any complaints
about the poll. However in a 2017 through 2018 C dot
engaged a contractor to perform a visual study of nearly
all the light poles in the city of Chicago the survey noted
that this polling question had a quote concerning amount of
rust after the survey no action was taken regarding the
poll.
Isabelle was transported to the hospital from the scene.
She was diagnosed with PTSD and post concussive disorder as
a result of the accident. Her current medical bills are
approximately 170,000.
plaintiffs medical records reflect that post accident she
claims an inability to drive an inability to go to crowded
places a fear of bad weather and an inability to work in
person as a result of PTSD from that accident.
Experts in the case believe that advanced corrosion at the
base of the pole caused the pole to fall.
If this matter were to proceed to trial a jury could award
damages for a past and future pain and suffering has been
future loss of normal life past and future emotional
distress and past and future medical bills. Therefore the
Law Department recommends a settlement in the amount of
1.25 million in this matter.
Thank you very much. Uh Miss Casey, uh any questions from
members of the committee Alderman's uh spas.
Thank you madam. Chair. Thank you Margaret. Uh just a
question. I thought of so I noticed it was reported that
there was a problem with the poll correct and in action by
the city, correct? That's correct. So, is there a time
frame on on on the inaction that we will be responsible for
so if um, I don't know we have we have a week do we have a
month to repair it?
My negligent if you don't know what answer that's fine too.
But or you just never know it would be my question, I guess
sure. So I'm happy to answer that question. Um, what a
specific amount of time is would really be um, a question
of fact if if the case were to go to trial for a jury to
determine but in this specific case, we know that um, the
city's contractors had noticed for over 2 years prior to
this accident happening. So in a case like this, um, it
would be difficult to argue that we didn't have sufficient
notice. I'm not arguing that on this case. So this is just
any case in particular just to help me for the future. So
is there is there some sort of time frame that we feel on
these incidents or just you can never you can't compare
every incident is different. Basically, I'm guessing
correct. Sure. So every incident is a little bit different.
Uh, it's definitely a very fact-specific analysis, and it's
something that I'm more than happy to have a further
conversation with you afterwards. Thank you. Thank you
madam chair. Thank you. Alderman spazo alderman.
Urban
Thank you madam. Chair. Um
Real quick. Um, this is the second and third light bulb
case that we've had.
Uh, I think in the last year, um, and there was a survey
that was done of these light bulbs, uh, just from a pure
risk management perspective.
Is there a plan to fix these holes?
Uh, because again, this is the second or third 1 you had
and and Miss Mindy Hall. How old is this report?
Uh from is 2017 through 2018.
All right, so 6 years and and how many of these are you
aware of that are that were cited in bad condition. Have we
fixed?
Um, so in terms of litigation itself, um, this question was
previously asked of me. There are 4, um additional light
pole cases that are pending right now. Um from the survey
itself. Give me just 1 second. Um Alderman Ervin and I have
a little bit
Okay, thank you. The the chair has um informed me that
17,000 polls. Um, like polls have been replaced out a total
of 189000 polls. That's the information that we received
from. Um a c dot representative regarding this matter.
And of the of and I don't I don't believe that all 189,000
polls were bad. How many of the polls were bad that we
still have out here that that gives us this potential
exposure.
So the information that I have is that after going back to
the Avari study the 2017 2018 study. Um
out of that study 154 polls were marked as um concerning.
Um Bill visits were conducted and those number of polls was
reduced down to 44 polls in terms of what Global actions
have been taken to um address or remediate concerns about
the polls. Um, you know, there are a number of different
categories of polls down time. We have more of the
the ornamental polls, um, after an ornamental poll found
the Kurt case, we had a few months ago. Um, right after
that happened, uh, C dot went out and put uh, concrete
slabs underneath the ornamental polls so that the water
could drain out to address concerns, um regarding rusting,
um seed dot has also informed us that they have been
engaging um in more systematic, um inspections regarding
their light poles in order to address the concerns that
that you've raised Alderaan.
Um Alderman Urban I want to add that c dot. Um did say in
our briefing that uh where they used to depend upon a
visual.
um
survey of the light poles they have not they don't do that
anymore. They actually engage a structural engineer.
Structural engineering firm to actually test uh, those
light pole bases in order to know, um, if they're
structurally sound or not.
Thank you chair.
So of the 150.
That have been deemed critically bad you're saying 44 of
those polls still remain?
No.
Okay.
My apologies Alderman. I did not mean to interrupt you. So
from the virus study 154 polls were located or was
identified as potentially concerning. Then there were field
visits done on all those 154 polls 44 of the polls were
identified as needed to be replaced in those 44 polls were
replaced. Um the poll in this particular case while I was a
part of the virus study was not identified as um, 1 that
had major concerns. Um, and was not 1 that that was a you
know addressed as a result of the Avari study.
I hope that clarifies um, uh the the facts and the numbers
on the Avari study.
Okay, so the engineers from this already said we we we said
44 were bad. They said 154 were bad and they're 90 that
leaves us a difference of 90.
Now have any of these other polls been subject to any other
litigation. Uh,
actions
I have 4 um, like poll and
cases that are pending right now.
and if you would like yeah, if you would like additional
information about those those like pending litigation
matters are more than happy to have a conversation, um
about that after alderman.
Okay, I'm just concerned that if if we paid somebody to
tell us about some polls that we disagree with them and
these are the same polls that are causing us, you know
millions of dollars that that doesn't make a lot of sense
to me.
So and I mean a million.
2 uh
Just I mean you seem a little high.
uh for
you know on a on a 170,000 in medical.
so
I'm happy to talk a little bit more, um about the the
damages in this case, um, and the treatment that was
received by um, Miss Keating in this matter. So as I
mentioned previously she was um diagnosed with posting cive
syndrome as well as PTSD, um, both the plaintiff as well as
the city retained medical experts in this case and the
city's own medical expert, um conceded that Miss Keating
did in fact have PTSD for 1 year, um, as a result of of
this accident so given Miss keating's um Regular and
documented treatment, um, given the impact on on her life
including things such as not being able to strive being.
Um, she alleges being heavily Reliant upon apps basically
to bring her everything because she's fearful to go
outside, um a documented period of near Psych.
Process we uh in the Department of Law reached the
conclusion that 1.25 million, um would be a Justified
settlement in this case considering what we could
potentially lose if we proceeded to trial given really all
of the um, difficult facts regarding her medical treatment
and the fact that um, there's not much of a defense in
terms of liability on this case because we knew about the
poll for over 2 years.
Yeah. All right. I just saw what what was post concussive
syndrome help me. Is that does she does she for concussion?
or
and and this is something that I um, you know re
researched, um, as a part a part of this case Alderman and
she was diagnosed with post-conference and it is possible.
Um,
To be concussed in the doctors in this case. In fact
diagnosed her as being concussed. Even if you are not
directly struck by an item. So if the item or you know car
that you're in is struck in your shooken or shaken as
possible for you to be can cost as a result of it. So, um
the doctors did diagnose her with a concussion based on the
symptoms that she had um, and she did receive treatment at
Shirley Ryan ability lab, which we all know is a very
legitimate me
ICal establishment, but some of the um symptoms she had that
led to Her diagnosis with this post concussive syndrome is
severe headaches dizziness light sensitivity, um, and that
led her to be diagnosed with a concussion and then referred
to Shirley Ryan ability lab for treatment.
Any other question? No, that's all I got.
I think about it. That's a real good game going on. But
this is this is uh, this is
I had to talk to him. So all right very well. Thank you
Madam. Chair. Thank you Alderman, I believe uh, I just want
to we've had 1 case this year 1 other case this year of a
fallen.
Sidewalk, is that accurate? I just wanted to
make sure that we got uh, all the urban urban the answer to
that question. Yes chair. Um, and I did also see the the
question. Um,
um, yes, we have um settled 1 other, um fall and light pole
case. Um, that was a matter of Maya Kirk, um, the light
pole fell in November of 2019 in that matter was settled
for 2 million dollars. This was a light pole that fell um a
couple of blocks away from here, um at LaSalle and about
Lake Street and that was 1 of the ornamental polls that I
was discussing where after that incident
And C dot went and put out, um a concrete base to facilitate
facilitate drainage from the metal pole to make sure that
um that type of corrosion did not happen again.
Thank you Vice chair Conway. Yeah, um.
Following up on all the man's questions a physical
injuries.
potentially concussion anything else
I I I'm sorry. I didn't hear the first part. Uh, what
injury did you what were you with regard to physical injury
was it? Yeah was other than the potential concussion. Was
there anything else?
um other than the potential concussion and and minor, um
scratches or lacerations know this, um case the value of
this case is based on PTSD as well as um, the post can cost
of disorder.
And the also I assumed there was damage to the vehicle as
well. Right that.
Is in this settlement what what what what what was that?
Like So the plan of was driving, um, a Jeep kit Jeep
Cherokee. Um, she has not asserted a claim for property
damage as as a part of this litigation.
um, okay, uh
based on that Madam chairwoman. I think the damage is at 7
plus times the medical damages don't make sense here. So if
I could be marked as no, thank you. Okay. Thank you. All
Vice chair Conway. Um,
is there a motion to recommend approval of item number? Uh
Alderman waguespack? Thank you chairwoman. Um, just going
back to the other 4 cases that are pending. Um, are any of
those looking for uh similar?
Actually, did they uh claim any PTSD or post concussive
disorder?
So other than as to pending litigation, um, I'm more than
happy to have a discussion later. Um, but those matters are
are still pending and in in the middle of litigation. Um,
so I would answer questions about those beyond the fact
that there are 4 cases, um that there are light pole cases,
um afterwards and I'm even happy to submit that particular
answer through the chair. Okay, could you um, I understand
that but they did file lawsuits in Cook County. I'm
assuming
yep, so they have filed lawsuits in Cook County in terms of
um, how the lawsuits come through the door. Generally they
just allege, um, Grievous bodily harm. Um, unless the
individual unfortunately is deceased. We don't really get
to know more about, you know, are they just saying my neck
and my back hurt or have they lost the land?
Do they have PTSD until um, we are within litigation. So I'm
more than happy to provide. Um the answer to that inquiry
inquiry through the chair. Okay, um are the other 4 cases
the same plaintiff's attorney or are they different?
They're different plaintiffs attorneys. Okay, and how many
before um,
I would say the last 1 was last year Well, 2019. Um, do we
have a list of how many or a number of how many were um
filed in previous years.
Um, give me 1 second to check the you could do it through
the chair too. I think it's broader. Thank you that through
the chair. I don't think you could uh, pull it all up right
now. But um, I'd be curious to know how many over the last
uh, 20 years. Um,
if I recall and if you um, if you have information from C
dot, uh, or I can look it up in that report about the age
of all those so going back. I think they're about 20 to 30
years old, maybe 40
That would be helpful. Um.
That's all I had for a woman if you don't mind. Alright,
just so I understand which her question is and I can make
sure to get you the appropriate answers. So for the 4 ping
lawsuits, you would like to know um are their claims of
PTSD you would like to know, um, the plaintiffs firm and
then um the year the Year of the lawsuit being filed or the
year that the poll fell or both.
That would be yes. Well, okay, that would be helpful. Um
And then finally in terms of the the the the thing I didn't
understand was the 20s 40 years. What information would you
like from C dot there? Well, typically when we put in light
pulse we we do it in 1 large tranche. We're not doing 1
offs here and there so, um, for instance the you know, we
changed the um to LEDs just a few years ago, and we did a
couple hundred thousand of them. So, um, I was just looking
more for
you know, we we know what the age of most of our polls are
except for new ones that have gone in and different kind of
projects that the new Styles and so I was just looking to
see how many lawsuits and what types of lawsuits we had, uh
over the prior 20 years, um, because in my time here, I've
never heard of anybody claiming for PTSD for a poll falling
on a on a vehicle.
So I will also fire poll fall down lawsuits from the past 20
years.
Okay, thank you. Thank you.
I have a question. Does Miss keading uh
ask for any lost wages
in this case. No, Miss keading is not seeking lost wages.
In this case. Um, she was off of work for um, 5 months in
total 2 separate incidents and she relates that to um the
pole fall down, but she is not claiming lost wages.
Do you have a sense of what that amount might be if she did
claim it?
Um, so she is employed. Um as a uh Communications, um,
analyst or she works in Communications for for Google, um
and prior to that she did work in Communications for um,
Goldman Sachs. So if she were seeking lost wages, um, I
certainly do not believe that those would be insignificant
as a part of the litigation. Okay. Thank you. Um Alderman
laspada, um makes a motion to recommend approval of item
number 16 a all those in favor signify by saying I
uh in the opinion of the chair the eyes have it with the
exception of
uh with the exception of uh, Alderman Quinn Conway and
waguespack, uh being recorded as opposed. The due pass
recommendation will be reported out at the June 12th.
meeting
item 16b Dorothy Holmes as special administrator of the
estate of Ronald Johnson III deceased versus Jorge
Hernandez in the amount of 2 million dollars for this case.
We're joined By Carolyn fronek, uh, the deputy Corporation
Council.
Thank you chair.
This case arises from a fatal police involved shooting
incurring in the early morning hours of October 12th of
2014 plaintiff Dorothy Holmes has brought this case as a
special administrator of the state of Ronald Johnson III
deceased. The lawsuit is brought against the city of
Chicago and officer Jorge Hernandez plaintiff's Third
Amendment complaint is the operative complaint in this case
and makes the following allegations a section 1983 claim of
excessive force premised on the fatal shooting of Johnson
by Officer Hernandez and Illinois state law claim of
battery a wrongful death claim a Survival action a Family
Expense claim and monell claim against the city of Chicago
plaintiff voluntarily dismissed her monel claim in June of
2020. This case is currently assigned to judge Edmond Chang
in the northern district of Illinois.
um, the defendant's version of this case is as follows on
October 11th, the 2014 several 911 calls alerting officers
to shots fired in the area 53rd and King Drive as these
calls came over the radio officer Hernandez and his
Partners Leo and Gonzalez got into their vehicle at the
station Hernandez sat in the rear of the vehicle as
Hernandez approached the intersection of 53rd and King
Drive. He saw a male black wearing a dark hoodie running
around the corner turning right from 533 onto King Drive
this individual's Ronald Johnson as Johnson started to run
south on King drive toward, uh, Dal or toward his uh,
friend's vehicle Hernandez. Saw Johnson run into officers
Hooper and Monty who tried to grab Johnson a struggle
ensued and Hernandez saw Johnson pull his hands in towards
his chest Johnson was flailing attempting to get away from
the officers.
Johnson broke away from officers Hooper and Monty and began
to run Northbound alongside the passenger side of
Hernandez's vehicle Hernandez, then exited the back seat to
the car from the driver's side as Johnson crossed the
sidewalk area toward Washington Park another man yelled. He
has a gun Hernandez testified. He was focused on the gun
and saw the gun's positions changed as Johnson was running
the gun started to drop and turned back toward her where
Hernandez was Hernandez was afraid Johnston was going to
either turn and fire on him or at others in the area
Hernandez discharged his weapon at Johnson and Johnson fell
to the
Ground Johnson was struck twice once in the leg and once in
the right shoulder the shot to the right shoulder traveled
from right to left through Johnson's body a wound path did
not simply exit the shoulder from back to front but
traveled in a sideways angle through the body exiting out
of his eye socket less than 30 30 seconds after firing his
weapon Hernandez leaned down and recover the gun removing
it from Johnson's hand. The gun was recovered from Johnson
was inspected and swabbed for DNA by evidence technicians.
The swabs were tested by the Illinois State Police crime
lab and Johnson's DNA was found to be present on swabs from
due 2 different locations on the gun No Light No latent
prints were recovered from the gun according to the plan of
the plaintiff would make the following argument on October
12th. The 2014 Ronald Johnson was attending a neighborhood
party with his cousin Ricky Johnson as well as friends and
acquaintances Reginald been and Maris price near 53rd and
King Drive after some time. He and the group left. The
party went to Benton's car and drove off.
After they were driving away. They were fired upon multiple
times with gunshot striking their car someone in the car
then told Benton to drive back to the area of the party. So
they could alert those of the party of what had just
happened police officers who arrived at the area in
response to calls of shots fired and countered Johnson as
he was running the dash camera of a responding unit
captured the chase as Johnson turned on to King Drive after
turning the corner Johnson briefly disappears out of the
frame reappearing to be seen circling back and running
across King Drive.
Johnson's hands are removing up and down in a running motion
motion with closed fists multiple individuals nearby
including Chicago police officers did not see a gun or
anything in Johnson's hands.
Even though there was a multitude of other officers on the
scene who had been there far longer than Hernandez and were
much better equipped to evaluate and assess this quickly
unfolding situation Hernandez fired at Johnson back within
2 seconds of Hernandez exiting a vehicle. He did. So
without ever seeing Johnson point a firearm at any
individual after Johnson fell Hernandez immediately
approached Johnston while Hernandez says that Jonathan was
lying face down with his right arm, like lying next to his
body and his right palm facing upward with a gun in his
right hand resting on the fingertips Hernandez's
description of Johnson position is inconsistent with other
police witnesses as well as his injuries, as far as damages
plaintiff will claim that um plaintiffs to see and died
while he died rather quickly the period before he expired
allows for a survival claim brought for touch be providing
testimony and evidence of conscious pain and suffering
prior to his death plaintiffs deed. It was also the father
of 5 minor children who were ages 7 653 and 1
the time of his death
the assessments and risks of this case are as follows the
in-car camera video captures essentially the entirety of
the shooting itself. This removes any dispute regarding
Johnson's flight from plaintiff or from sorry from police
and refusal to surrender and clearly shows. The shooting
was the result of a split-second decision by Hernandez.
However, the video was less than conclusive regarding the
presence of a firearm in Johnson's hands.
Further plaintiff has disclosed several individuals
including Chicago police officers who are present at around
the scene of the currents who claimed that Johnson was not
armed at the time of the shooting.
Also a plaintiff has actively pursued a theory Reliant upon
plaintiff of her or strike that upon Hernandez planting a
gun at the scene of the shooting plane to pursue this in
multiple ways plaintiff will insinuate that Hernandez is
immediate recovery of the weapon was done suspiciously
plaintiff will point to the fact that no Fingerprints of
plaintiff for Recovery with the weapon itself and plan to
full likely try to use a neurology expert to opine that
John said would not have fallen to the ground in the manner
alleged by Hernandez and also be able to maintain control
of the weapon.
uh plaintiff will also argue that Johnson was fleeing at
the time that he was shot rather than directly pointing a
firearm at a police officer the shots to Johnson entered
through the rear of his leg and the rear of his shoulder
plaintiff will argue that Johnson was thus quote unquote
shot in the back and created no threat to the police at the
time. He was shot
forth while several police officers other than Hernandez
have testified to the presence of a gun in Johnson hand
Hernandez Hernandez was the only officer to discharged his
firearm.
Plaintiff will likely use this evidence to imply that
either there was no gun. In fact present or if there was
again, it was not a threat.
Fifth Johnson Left Behind 5 minor children at the time of
his death. Thus there may be a degree of sympathy which may
impact this case depending on the jury selected and finally
2 of the police witnesses that were in the car with
Hernandez at the time of the incident, um are off current
defendants and some of the Ronald Watts lawsuits given the
evidence in this case the inconclusive video the other
Chicago police officers on scene that do tend to
corroborate plaintiff's version of events and the potential
evidentiary admissions against some other officers
credibility the Law Department recommends settlement in the
amount of 1 2 million dollars 1.2 million will be split
amongst the 5 Min Children of the deedon and 80000000 to
the plaintiff's council.
Any questions from members of the committee alderman?
bazan
Thank you. Madam. Chair. Uh, thank you Caroline. Uh 1 quick
question. I thought you said in a briefing that um, Ronald
Johnson's DNA was on the gun.
I said that here we said it here. Okay, then I've got got
all confused. Okay, you did say it here. Okay. Okay. That's
it. Put me down for a no Madam chair.
Uh, thank you.
uh
Any other questions?
Can I get a motion to uh recommend approval by number 16 B?
some move by Alderman laspata recommending do pass all
those in favor signify by saying I
all those opposed and the opinion of the chair the eyes
have it with the exception of Alderman's spa and Alderman
Quinn voting. No.
The due pass recommendation will be reported out at the
next city council meeting.
Item number 16 C Patrick Edmond at all versus City of
Chicago Ivy Anderson versus City of Chicago Joe Jones
versus City of Chicago Edward Moseley versus City of
Chicago in the amount of 5.8 million. We're joined by the
deputy Corporation Council Ken Roebling.
Good afternoon, chairwoman Dal members of the finance
committee. My name is Ken Roebling. I'm the deputy of the
Cities, uh Department of Law employment litigation
division. The Department of Law is recommending global
settlement of 4, racial harassment and discrimination
lawsuits filed by 12 current and former African-American
employees of the Department of Water Management and the
amount of 5.8 million dollars.
the 12
there are 9 plaintiffs in the Edmund case. The Edmund
lawsuit was filed in 2017 shortly after the Chicago Sun
Times reported on the results of 2 office of Inspector
General investigations that uncovered dozens of racist
emails being shared between senior officials at the
Department of Water Management. The plaintiffs brought
their case as a class action seeking to represent hundreds
of Department of Water Management employees alleging
harassment and discrimination in the form of promotion
denied promotions overtime unfair discipline and job
assignments.
from 2017 to 2022 the parties engaged in extensive discovery
discovery on the factual allegations that issue in the case
and whether plaintiffs claims should proceed on a class
action basis.
Last Summer the court denied plaintiff's motion to proceed
as a class action finding that the plaintiffs claims lacked
the commonality required under the federal rules to proceed
on a class basis.
last fall the city filed a motion for summary judgment on
the merits of the 9 Ed plaintiff's claims earlier this year
the court granted the city's Motion in substantial part and
dismissed all 9 planes based on denied promotions over
time.
And work assignments and 1 plaintiff's claims based on
discipline finding there was no evidence that race factored
into any of the decisions at issue.
The court also dismissed 2 plaintiffs claims in their
entirety finding there was no evidence that they were
subjected to racial misconduct.
However, the court denied the city's motion for summary
judgement as to the hostile work environment claims
asserted by 7 of the plaintiffs and the discriminatory
discipline claims asserted by 3.
Last summer 3 additional Department of Water Management
employees who were members of the class the Edmund
plaintiffs sought to represent filed their own lawsuits
alleging claims substantially similar to those asserted by
the Edmund plaintiffs.
The parties are currently engaged. In fact Discovery in the
3 new cases.
Trial on the Edmund plane of surviving claims was set to
proceed on June 5th of 2024. The parties have tentatively
agreed to settle all 12.
The city is recommending global settlement to mitigate the
financial exposure to the city. The city is unlikely to
Prevail at trial on the surviving claims.
As of the claims based on a hostile work environment the
plaintiffs must prove. They were subjected to harassment
unwelcome harassment based on their race.
And the conduct was sufficiently severe or pervasive to
alter the conditions of their work environment at trial the
plaintiffs will tell the jury that over the course of
several years. They were subjected to racial slurs
including the n-word racial remarks and racial jokes and
racial nicknames.
They will also describe racially offensive symbols that
they saw throughout the workplace including swastika and
KKK graffiti blackface Styles and a noose displayed in a
co-worker's truck.
as for the discriminatory discipline claims that the 3
plushies who survived summary judgment May proceed on
the claims are based on unpaid suspensions for engaging in
misconduct to prove their discrimination claims plaintiffs
have to show evidence of racial bias and connection with
their discipline.
at trial these 3 plaintiffs will present evidence that
several Caucasian employees engaged in similar or more
egregious misconduct, including making racial slurs and
remarks without receiving any discipline.
Based on the extensive testimony. The jury will hear about
racial remarks and evidence of Caucasian employees not
being disciplined for comparable misconduct. We believe the
plaintiffs would likely establish that they were subjected
to a hostile work environment based on their race and Des
discrimination and connection with discipline.
As to the city's liability the city is the only defendant
in these 4 cases to hold the city liable for harassment or
discrimination. The plaintiffs must meet the burden of
proof required under a case called monel, which is a 1978
Supreme Court case that essentially held the local
governments are not responsible for the misconduct of their
employees only for their policies and practices or lack
thereof.
At trial plaintiffs will seek to establish monol monell
liability against the city through 2 separate theories. The
first is that the Department of Water Management had a
widespread custom and practice of Permitting and condoning
racial discrimination and harassment.
And the second theory is that the Department of Water
Management did not act in the face of a known and obvious
risk that its employees could be subjected to
discrimination and harassment the plaintiffs have developed
significant evidence to support 1 or both of these
theories. The evidence includes the office of Inspector.
General's 2017 findings, as to erase this culture within
the Department of Water Management's leadership and several
deficiencies as to the city's eeo practices in place during
the relevant time period
as to the oig's findings in 2017 the oig reported on the
results of its investigation which uncovered
egregious offensive and racist and sexist sexist emails
being distributed between Senior Management.
The oig found that these emails suggested the existence of
an unrestricted culture of overtly racist Behavior within
the department.
following publication of these findings nearly a dozen
Department of Water Management officials
resigned or were fired
resigned in lieu of discharge
The plaintiffs will argue the fact that multiple Department
of Water Management officials composed or share these email
emails rather than reporting them or investigation as
required under City policy is evidence that management
condone or actively participated in a culture of harassment
were turned a blind eye to potential harassment.
the plist will all to also cite to several deficiencies in
the city's eeo, policies and practices during the relevant
time period the city did in fact have policies and
procedures in place for reporting harassment that the
plaintiff failed to use. However, a plaintiff will testify
that they thought it was feudal to report racial harassment
because they were aware of co-workers who had reported
similar incidents that were either not investigated or
result resulted in no discipline.
In addition, the Department of Water Management did not
conduct any mandatory anti-discrimination or harassment
training until the year 2017 several years after the events
that issue in the case.
Also, there is evidence that supervisors who were on notice
of discrimination and harassment did not escalate it to the
city's eeo division as required by City policy. The
plaintiffs will argue that Management's failure to report
these violations is equivalent to condoning it and could
Empower wrongdoers to continue to engage in harassing
Behavior.
Finally the city's eeo Personnel responsible for
investigating internal complaints testify during the
litigation that there were severe Staffing difficulties
during the relevant time period that resulted in some
harassment investigations being delayed or put on hold
altogether.
With the unfavorable findings made by the oig and the
admission of investigative shortcomings. We believe a jury
is very likely to find that the city's policies and
practices caused their injuries. The department of laws
working in collaboration with the Department of Human
Resources on remediating the training and investigation
deficiencies noted by the court in its ruling on summary
judgement.
As to potential exposure the plaintiffs are seeking damages
for emotional distress due to the racial harassment and
back pay for the period of unpaid suspensions. They claim
we're in Justified.
Plaintiffs brought their claims under 2 civil rights
statutes section 1981 and 1983 that which have no monetary
cap on compensatory damages.
Based on other jury verdicts in similar cases in the
northern district of Illinois. We estimate that each plane.
If we prevails at trial could be awarded compensatory
damages between a quarter of a million dollars and a
million dollars.
The plaintiff's attorneys fees have represented that their
fees and expert costs to date are over 5 million. We
therefore project potential exposure to the city if we lose
a trial between 8 and a half and 17 and a half million
dollars.
The parties have reached a tenet of settlement agreement
for 5.8% to city council approval 3 million of that amount
would be distributed between the 12th and including the 2
plates claims who were dismissed on summary judgement as
part of the settlement those plaintiffs will agree to waive
their right to appeal the Court's ruling denying s class
certification and denying their dismissing their claims on
summary judgement.
2.8 million would be devoted to attorney's fees. The plan
is Will engage a third-party neutral special Master to
review all of the evidence in the case and allocate the
individual amounts appropriate to each of the 12
plaintiffs. Thank you.
Thank you, Mr. Roebling.
Um, are there any questions for members of the committee?
alderman laspada
Thank you chair.
You said at 1 point that the law department and the human
resources department are taking steps to to remediate.
the the policies and culture that led to
The behaviors in this case, can you share?
What what steps are being taken, but also what steps have
been taken in the intervening years to address this kind of
culture.
Uh, thank you for your question beginning in 2017, uh and
early 2018. The Department of Water Management did conduct
mandatory anti-discrimination harassment for all of its
employees. They conducted an annual training again
following year and I believe it was scheduled for uh, 2020
and 2021 but due to the pandemic there were difficulties in
conducting live training. Um since 2022. The department has
has conducted de Andy training that covers
anti-discrimination and harassment and this year. The
department is scheduled to conduct mandatory, uh,
anti-discrimination harassment for both non-management and
management Personnel. The Department of Human Resources is
the hiring of additional investigators to make sure that we
don't have a backlog and investigations similar to what
surface during the events at issue in this case. And in
addition to the Department of Human Resources is in the
process of process of developing an eeo training, that
would be mandatory for all city employees.
employees on an annual basis
I appreciate that. I'm I'm curious if
through the chair right now. You have anecdotal evidence
that this training has resulted in a change in Behavior by
Senior Management, which is to say I I I doubt that.
Or behavior and harassment have disappeared entirely
overnight. Do we have an example where behaviors were
reported that discipline was Meed out based off of those
complaints. Yes based on the the training that was
conducted. There were numerous complaints that were
reported on a variety of issues not just discrimination and
harassment and I believe over the course of the last 3
years there have only been 5 instances of sustained
harassment in those individuals were disciplined for their
misconduct. So the department currently employs over 2,000
employees. So for their to only be 5 instances of sustained
violations as a significant Improvement during uh, based on
the events that occurred, okay, um during the litigation in
this case. Thank you, sir. Thank you chair. Thank you.
can I get a motion to uh Alderman waguespack recommends
approval of item number 16 C all those in favor of the
motion signify by saying I
And the opinion of the chair of the eyes have it and the do
pass recommendation will be reported out at the next city
council meeting Mr. Rolling. Thank you.
Item 16d LaShawn eel versus James Cassidy at all lorad
styles versus James Cassidy at all Charles Johnson versus
James Cassidy at all troan McCoy versus Jane Cassidy at all
in the amount of 50 million dollars. Uh, this is going to
be discussed by dep Deputy Corporation Council Jessica
Felker. Good afternoon. Thank you chair.
The Law Department recommends settling these 4 Separate
reverse conviction lawsuits for a total of 50 million. The
city will be responsible for 21 million and excess
insurance policies will cover the remaining 29 million.
The Law Department believes. This is a fiscally prudent
settlement.
the cases all arise from the same double murder and armed
robbery the lead Emer Ibraham and yoseph Ali owners of
elegant Auto were shot and killed in 1995 at their office
at the used car lot located at 7006 Southwestern.
Shortly before the shooting 2 young black men looked at cars
at elegant Autos lot interacted with yousef's Brother Ali
Ali and then went into the neighboring used car lot
Prestige Auto where they browsed other cars and interacted
with the salesman month their todos.
2 black men later came into the office at elegant Auto and
shot and killed Mr. Ibraham and Yousef Ali.
Yousef's Brother Ali Ali and maintenance worker Frank noura
were also in the office but both pretended to be dead and
were able to avoid shooting.
The shooters then took part, excuse me.
Did you?
Go outside and calm that down, please.
I can't hear and hear.
Continue Miss Fela. Thank you.
Uh, the shooters then took car keys from the office to
steal cars at 1 Point the offender offenders returned to
the office for more keys and shot shot Yousef Ali again
after he was heard praying the shooters took more keys and
then drove off into stolen vehicles detectives fine and
Coughlin who are both deceased.
We're assigned to investigate they began the investigation
then 1 of the other defendant officers detective Cassidy
reported that he received a call from an anonymous
individual who claimed to have knowledge of the crime.
Detective Cassidy reported reported that the caller gave
him a tip that Treshawn McCoy was involved.
McCoy who was 17 at the time
Uh was interviewed by detective Cassidy and initially
denied knowledge of the crime but eventually admitted that
he and LaShawn aelle who was 15 at the time were a Lookouts
who stayed in the car while lurad Styles who was 16 at the
time and Charles Johnson were the perpetrators who went
into the office assistant States Attorney Joseph. Alicia
took a court reported confession from the koi.
Iselle Styles and Johnson the other 3 plaintiffs were then
arrested based on McCoy's confession.
Either they gave Court reported or signed confessions, uh
witnessed by various officers and Asa elisia.
A lineup was conducted in which Ali Ali identified Styles as
1 of The Men Who came into the office the witness who was
nearby and saw the offenders flea identified Styles in a
lineup.
Nera and Todd Rose made no identifications at the time
forensic examination of the stolen cars was conducted by
fingerprints from both the or by fingerprints examiners
from both CPD and the Illinois State Police, but they were
unable to identify any of the prince at the time of the
investigation. However, none of them matched any plaintiff
the plaintiffs were charged and tried at the trials Ali Ali
Tadros and the other witness who saw the getaway vehicle
all testified at trial to what they saw Tadros identify
Johnson of the shooter testifying that he was too scared to
identify Johnson at the lineup.
In their depositions in this case Ali Ali and Todd stuck by
their identification the other witness gave inconsistent
testimony, but did state that he testified truthfully at
the criminal trial.
Plaintiff's expert however will testify that their
identifications are unreliable.
The confessions were introduced into the criminal trials
against the plaintiffs. Although all plaintiffs moved to
suppress the confessions on the theory that they were a
result of coercion.
Johnson and styles testified in their own defense, but were
found guilty of the murders and armored robbery. The jury
convicted McCoy and AEL of armed robbery, but Azle was
acquitted of the murder and Mccoy's junkyard.
in 2008 Johnson sighting advancements in fingerprint
technology requested a reanalysis of the evidence the
testing revealed that some of the prints from a car that
was browsed by the perpetrators as well as the adhesive
side of a sticker recovered near the stolen cars had been
that had been removed from the windshield of those cars.
matched another man, Davon Allen who was convict who was
now a convicted felon and at the time his mother lived a
block away from the stolen where the stolen vehicles were
required.
That man was deposed in this case and denies any
involvement. He no longer lives in Illinois. The state's
attorney interviewed him and declined to press charges.
following the fingerprint evidence development Johnson
Styles and Iselle requested that their convictions be
overturned on July 11th, 2016. The State's Attorney's
Office agreed to vacate their convictions based on the
fingerprint evidence as well as allegations that the
State's Attorney's Office withheld information that the
eyewitness who saw the 2 offers flea was given money to
relocate and arrested for contempt prior to testifying soon
after McCoy also asked for it and was granted the same
relief.
The state's attorney considered retrying these cases but
dropped all charges against the 4.
Though the State's Attorney's originally opposed to the
certificates of Innocence.
The state's attorney reached an agreement with McCoy that
they would withdraw opposition to his COI petition if he
would not Advance allegations of misconduct or Sue ASA
leisure.
McCoy agreed and signed the affidavit stating that and was
granted a COI and he did not Sue ASA, Alisia.
the other plaintiffs then argued that they were entitled to
those certificates of Innocence because McCoy received 1
and the state's attorney agreed to an order granting their
certificates.
when the convictions were overturned Iselle had already
completed his sentence after 10 years in custody while
Johnson Styles and McCoy were released after serving 21
years and 3 months in custody.
Plaintiffs each brought separate lawsuits in 2018 alleging
misconduct by the police. There is 12 named.
Police defendants, aelle Johnson and styles also made
allegations of misconduct against a Leisure ASA Leisure,
but Johnson was the only plaintiff who had a claim that
survived summary judgement against ASA, Alicia.
3 plaintiffs claimed that they were coerced into providing a
a fabricated confession while Johnson claims only that his
confession was fabricated.
They all claimed that police reports were fabricated. The
anonymous tip was fabricated and that they were maliciously
prosecuted. This case was set for trial on May 14th, 2024
and will proceed to trial if the set settlement is not
approved by the council.
in anticipation of trial the judge conducted 2 separate
settlement conferences 1 between the city and the
plaintiffs and the other between plaintiff Johnson and the
county following lengthy negotiations The Settle city was
able to reach an agreement with all 4 plaintiffs for a
global settlement of 50 million the county also settled
with Johnson, but it has not disclosed that figure.
The Law Department recommends this settlement based on the
risk with trial the plaintiff spent a total of 73 years in
prison this settlement equates to 685 thousand dollars per
year custody.
Typically at a trial plaintiffs asked for 1 to 2 million
dollars per year of custody from the jury here that would
equate to 73 to 146 million.
If successful a trial there are 4 Separate plaintiffs firms
who will all be entitled to reasonable attorney's fees and
they will likely claim those fees to be somewhere between 5
and 10 million.
The Law Department therefore recommends settlement in the
amount of 50 million for All 4 cases inclusive of fees. We
believe this is fiscally prudent.
50 million of the 50 million the city will be responsible
for 21 million and its insurance carriers will pay 29
million.
I'm ready for any questions.
Any questions from members of the committee Vice chair
Conway? Yeah, what the
you said they generally so I'd always heard like 250,000 a
year for for a year of incarceration for someone who's
received a certificate of Innocence.
Do you have any data to support the 1 to 2 million number?
I think you're you're conflating the difference between
what is asked for a trial which is as they asked for 1 to 2
million per year at trial and what our average settlement
is. So the average settlement you're correct, but when we
go to trial they do ask for 1 to 2 million.
Per year of incarceration. Excuse me.
Dude, they usually get that or that's that's the I know
what they asked for are they people filed lawsuits as for a
billion dollars all the time, but what are they going to
get get with the situation? Yeah, I can say in the last 2
trials that we've had. They the last trial we had they got
over a million per year. I'm not aware of anybody ever
getting 2 million per year.
Excuse me, sir.
Can you?
Excuse me. Can he be escorted out of here?
Sergeant-at-arms. Can you escort? Can you escort this
gentleman out for me, please?
Can you?
Thank you Mr. Sims. Please leave.
Uh, Mr. Nipple Mr. Blakemore. You're next.
continue, um, Alderman Conway
I I have no further questions at this time. Um, I have 1 can
you go over the ages of these men now men when the incident
incident occurred? I isil how old was he?
El was 15 McCoy was 17 Styles was 16 and Charles Johnson was
the oldest at 19.
Thank you.
Alderman wag is back. Thank you chairwoman. Uh, Jessica
good job on this. Um, but you mentioned that the county did
not disclose their settlement with Johnson was it you said,
um,
so they don't um
I guess I have to go over to the county side and see how
they do that. But um are they, uh,
Moving you said they're not moving forward on the other 3
because they don't have the the cois.
Or could you repeat why they weren't moving ahead with 3
other settlements?
Uh there those against the county. Yeah. So, uh to answer
your second question first, they made claims against the 3.
Thank you. Alderman Alderman spaz.
Thank you madam chair. Thank you, Jessica.
First off. I know we have law here and I hope law the
ultimate power is listening to this meeting that man should
be banned from these meetings forever with that comment
that threatening comment. So you just want to start with
that. Uh, secondly, I know I asked this in a briefing this
case was never uh,
not being picked up again anymore. That's it. We're just
saying somebody was murdered and we're not re-investigate
to your bestie or knowledge, right? Yeah to the I mean,
with the State's Attorney's office. They interviewed the
man whose fingerprints matched and they declined to press
charges. Okay. All right. Thank you. Thank you madam chair.
Thank you very much. Um,
seeing no other questions, can I get and
um
motion for this item to do pass
so moved by Alderman Bernett recommending do pass all those
in favor of the motion signify by saying I I opposed and
the opinion of the chair the eyes have it and the do pass
recommendation will be reported out at the next city
council meeting there being no further business before the
committee. Can I get a motion to adjourn?
So moved by Alderman laspada all those in favor signify by
saying I oppose.
The eyes have it the committee on finance is adjourned.