meetings, 2023 to 2027, pursuant to the Chicago city
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rules of convict to be followed during the public comment
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sergeant-at-arms.
City of Chicago city council rules of conduct for public
meetings, 2023 to 2027, pursuant to the Chicago city
council Rules of Order and procedure rule, 49, the
sergeant-at-arms sets forth, the following rules of conduct
to be followed during the public comment period and the
duration of all committee and City Council, meetings,
profane vulgar, threatening abusive or disruptive language
is not permitted. Demeaning discriminatory or harassing
behavior and speech directed towards. Others is not
permitted disruptive behavior, including disruptive or
disrespectful conducting others. Presentations is not
permitted, banners flyers, or signage are not permitted
backpacks, large bags, and sharp objects are not permitted,
clear bags, not tinted in color that do not exceed 12 by 12
by 6. In will
Be permitted in our subject to search health food and
beverages including in metal canisters are not permitted
cell phones. Must be placed on silent prior to entering the
meeting room. Individuals must remain seated, public
comment speakers are permitted to stand only when providing
public comment, small handheld devices may be used only
while seated and the user must refrain from interfering
with the view or hearing of other individuals, individuals
or groups failing to adhere to. These rules will be asked
to see such disruptive conduct and failure to comply. Will
result in their being subject to removal from the meeting
by the sergeant-at-arms.
Good morning. Good morning everyone. Welcome back.
Welcome back from
the summer break.
The meeting of committee on economic capital. Technology
development is called to order today. There is 1 item
before the committee is subject matter, hearing on,
recognizing, and promoting employee ownership, as a
strategy to maximize economic sustainability and equity in
the city of Chicago.
First, we will begin with a roll. Call vote to establish
Quorum, Mr. Banagas you can begin.
Chairman vas. President, vice chair Mosley president.
Alderman laspada.
Alderman Hall.
Alderman Mitchell.
Alderman, Chico.
Alderwoman Lee.
Alderwoman Gutierrez.
Alderman Lopez.
Alderwoman Dardis.
Alderwoman dates.
Alderwoman Cruise.
Alderman, Cardona.
Alderman waguespack.
Alderwoman mitts.
Alderwoman Mets.
Alderman Napolitano.
Alderman. Reilly
Alder, 1 alderwoman Mana hoppenworth.
Chairman, we have a quorum.
Thank you. We have a quorum.
There are no members that have asked, uh, requested to
participate remotely.
I've been informed that we have received zero written
comments on today's subject matter hearing. At this time we
will begin the public comment period. Public comment is
limited to 30 minutes out of respect for everybody's time.
Each speaker is limited to 3 minutes. 10 individuals have
signed up to speak.
Our first speaker is Doris Hughes.
I'm sorry Dorian. Doris Lewis my apologies.
On. Is it on? Yeah, okay. First of all, before I start
speaking I would appreciate it. If the alderman would
listen to me.
I'm going. I I'm here today because I'm a resident of High
Park. I've been there 50 years
And I came to present to you.
A result of the policies.
That the mayor's pushing down here and that the city
council is sanctioning. This is what was posted in my
community. This weekend, black people hating on immigrants,
This is an anti-black hate crime. It's inflammatory.
It's, it's scary.
It's intimidation.
This should not be going on a white supremacist
supremacist. White man posted this. On every light post
from 501 in Lake Park. All the way down to 55 in Lake Park.
We went over to try to take them down. We were not able to
take them down. The community is angry. He didn't say some
black people, he didn't say a few. He said, black people,
that means every black people in person in the city of
Chicago because it's all over the city now.
People are angry.
I am angry. I've lived in this community 50 years and I've
never had to experience anything like this.
The residents in my condominium are afraid to come out.
This is what's going on in this city. I'm not afraid to
come out. I'm not going to be locked up in my condo because
of the policies of this city government. This is what
you're doing.
You're promoting hate.
You're, you're promoting violence. We are a Target because
of your policies.
Now, let me tell you something, the young people are angry.
You are creating a problem in this city and when the Blood
starts to flow down the streets of the city of Chicago,
it's going to be on your hands.
Because we're not going to stand by and allow you to have
our children's Slaughter. Our women be attacked our
children via attack. This is because of what you're doing.
I'm an 80 year old woman.
I have lived through the violence of America because of the
racism and white supremacy. It is ugly.
I survived it but don't sit down here and become so
arrogant and think that it won't come to your doorsteps.
I am tired of coming down here saying the same things.
The same things I come here peacefully this morning to
exercise. My civic responsibility. What happens to me
downstairs? I said I cannot stand long. I went into 1 of
the offices down there, that was empty and took a chair. I
said I'll bring it back. What did the woman do? She comes
out and she brings the police over.
and I said to the police if I have done something wrong
arrest me, we can walk in Black
Thank you, Miss Lewis, thank you.
Thank you.
Thank you Mr. Lewis radio comments, thank you.
Our next speaker is Jessica Jackson.
He is the bottom line right here.
You don't hang no signs about black people hating know
immigrants because black people ain't got no reason to hate
on know immigrants. We everything y'all are in there. Some,
let me tell you something, you get them signs down, anytime
that ordinary Lawson and just Silverstein can and what's
that other, 1 can sit up here and talk about how they
She get a hate crime bill because swash Nicks was in Ziploc
bags in that community.
They hung this in our community. We want it often polls. We
want that to be the beginning of a hate crime.
And that organization, which is a white liberal
organization.
Like in the words of Malcolm X, who told us, what that the
white liberal is the worst enemy to the black man.
And it is coming up in here acting like y'all representing
some social justice. When all along, are you doing is
to use black people to find a reason to make some money.
Let me tell y'all something over there. We're done. The
Democratic party is done. You ain't going to mess with us
like this no more.
I'm telling you what I'm telling you Trump going to come in
here and going to clean it up. I'm telling y'all the ones
that got a righteous heart. You leave the Democratic party
do just like RFK Jr. Just do like that toss a lady. You
better get up out the Democratic party. Save yourself, save
your families. Save your dignity, save your jobs and save
your seat cuz if y'all don't we coming for your seats? We
ain't taking this no more. We ain't taking no disrespect
from a bunch of people who have broken to the country and
now have
Completely broke the city have completely broke the country
have completely disgraced the United States of America.
America is a disgrace and for us, oh my God, what a
solution, you give us a fake.
Black cackling hand of a candidate with a vice president,
that talking about he want to put tampons in the boy's
bathroom, ain't nobody dealing with this. The number 1
function of a president is to be the commander and chief
you tell me anything about a Carmela Harris. That looked
like she can protect this country after y'all to set up
here and that if you don't overridden with a bunch of
illegals,
y'all just set up here and put America's hands and all kind
of wars and you telling me a tap time man that ran from
Duty. Don't even know what his rule was talking about. The
Harris who don't know what race she is going to protect
this country.
The Devil is a Lie.
Y'all better get them sign.
Thank you, Mr. Jackson
Our next speaker. Our next speaker is Andrew Nelson.
Soon with this present day order to be rolled up.
And the new ones spread out, that's dead.
And he explains the world's equilibrium have been upset.
Through the vibrating influence of this most great, this
new world order.
Mankind's ordered life.
Hath been revolutionized through the agency of this unique,
this wondrous system, the like of, which mortal eyes have
never witnessed.
Amber Rose levonchuck.
I am Chicago mayor next? Mayor, Andrew Nelson. Uh, marry me
my dear lady please and thank you.
Our marriage.
Has a most great purpose.
Wither can a lover go.
but to the land of his beloved,
And what Seeker findeth, rest away from his heart's desire.
To the true lover.
Reunion is life, and separation is death.
His breast.
Is void of patience and his heart.
Hath. No peace.
A myriad lives. He would forsake
to hasten to the Abode of his beloved.
Amber Rose levonchuck.
is a woman that I saw on television some 12 or 15 years ago
when
Kanye West consorted with her.
He then married. Um, Kim Kardashian
And I just know that.
Amber Rose is the Perfect Mate for me.
And I hope this goes viral.
The bottom line is.
This is about black manhood.
Martin Luther King Jr. Talked about black manhood
and a coward.
If someone whom Allah hates the most,
General.
George S Patton.
had to smack a
private upside the head for his cowardice.
Your lack.
Physical courage.
Think. Thank. Thank you Mr. Nelson.
Our next speaker is Mr. Blakemore
illegal immigrant.
Legal immigrant the negative effect that both of those
groups have on the black man. That was enslaved in America.
And I can be a hater.
I can hate anybody. I want to, at any time I want to
So, but you met us hate?
Beef immigrant these legal and illegal immigrants. You made
us do that by your passing these laws. Giving them 1
billion.
What did you give the black man?
when he got off the ship,
gave him a whoop on his a and enslaved him. So America been
raised she just didn't this pop up. This is not a pop up uh
uh, uh, when George Washington had slaved Benjamin
Franklin. All these big head white men. Abraham Lincoln
never freed us. We never received our 40 acres in a mute.
So the blacks went to the Republican and then Roosevelt
came in and then they went to the Democrats. Did, you know,
we got to go to ourselves.
We got to embrace ourself. We got to be unselfish people to
fall in love with us. We have black faith in high places,
but they don't represent us. You know, we have a so-called
black president, then we have black males, but have
the old that was terrible Garcia. And and and uh, that
other uh, Puerto Rican. Uh,
He going to Ally with them.
He's going to Ally with them, he he, he could see no
future. He was interested in in beating the the uh, vdeoi
at
So it's sad. We haven't had any type of leadership. Now, I'm
just supposed to be dealing with economic development in
here. Black people, not open up the any business, your
consumer, you don't have no business. We once had Black
Wall Street, we once had black stores and service stations,
and Banks, we was a great people, but did we have the vote?
Maybe, we don't even need none of y'all. God have given us
everything we need. All we have to do is use what God has
given us. Love us, do for us. Respect us and serve us and
be willing to die for us.
So Chieftains are running off begin to fight at the end.
Both of them was on the white, man. Uh, uh, reservation. So
we got to go Within
We got to love ourself. I'm talking to my black brothers,
and did, you know, I I have some good, white abolitionist.
John Brown was a good old white, man.
Thank you, Mr. Blakemore
No.
Thank you, Mr. Blakemore, our next speaker, Zoe.
Our next speaker is Zoe.
Zoe before we begin. Let me recognize uh alderwoman
Gutierrez Alderman. Cardona.
And alderwoman cruise for purposes of quorum.
And so on the phone was there? No, there already been there
dead.
Please proceed. Yeah. Um,
Yeah, this is economic development and its we there's no
economic development in our communities. Um,
I don't.
I think y'all really think that the justice department is
not coming and they are, and a lot of y'all are getting
arrested because y'all are stilling. Black people's
property where you're helping stealing black people's
property. You're also still in this immigration money.
That's why they're all over the place and they're all
getting, and then you put them in our communities.
Yeah, I really got like 30 days to get these people out of
Lakeshore Hotel.
That's bothering Mama Doris out of Southshore. Out of
Auburn, Gham out of, they need to go in pilson. Or y'all
need to go take them to Robbins. Y'all need to take them
somewhere or take or send them back. They are in our
communities. You getting, you're giving them everything,
you're giving them food, you're giving them cash benefits.
I did a, a interview in front of Lakeshore Hotel. Um,
during the DNC that is the new projects, y'all are turning
that into the new projects. And what yall are going to do
is y'all are going to. Well what y'all thought y'all going
to do, because it's not going to happen now, which I were
going to do, was you guys were going to make that into
housing, Chicago, Housing Authority, just like the other 2
shelters that y'all were that, that y'all hold hotels, that
y'all abandoned, because that's what y'all do y'all
abandoned. But like, y'all knock my shitt down and then
don't want to pay me, but y'all abandoned buildings, right?
And then y'all turned y'all convert them into shelters for
the for the migrants and then those would
Those will turn into um a um a housing uh, public housing
too. So that's what the government does. It's a money
laundering scheme, y'all take our properties, right? And
then return, y'all put government run grocery stores, like
y'all trying to do on my property and that's not going to
happen. And then y'all try to do affordable housing which
is go in the name of affordable government housing in the
name of affordable housing, which is illegal, as well.
Well, so it's a money laundering scheme that y'all continue
to happen. This this state is turning red is turning red.
Okay. A lot of y'all are going to jail, okay. Kamala Harris
will not ever. This is this is she might as well start
packing her bags and get out because she's not getting in
their office. She she didn't even make it in 2018 when she
was trying to run like she's never gonna know everybody
hates her. She's she's terrible. So yeah yeah. So that's
not going to happen and again there's no black and brown.
So why would we put a brown president in the United States?
Would would, would would, would you are doing now? Y'all do
not care about black people at all and we're seeing it and
we are the chosen ones. Ain't nobody, it's over. It's a
wrap. It's a wrap y'all. It's it's it's it's it's done.
It's done. So I'm trying to tell y'all now.
If y'all sold out the black community Alderman, the 20
Alderman that we have black Alderman. Y'all are gone with
Tony pre Winkle, with Timothy Evans. All y'all.
Thank you. Um prior to our continuation of public comment.
Um Alderman Hall has requested to participate. In today's
meeting, remotely under rule 59 and I get a motion to allow
Uh, allow Alderman, halter, participate remotely. Um, Vice
chair mosim makes the motion to participate remotely all
those in favor. Say I
Independent, charity eyes. Have it Alderman? Hall, please
mark Alderman hall for Quorum. Thank you so much. Our next
speaker is Steve starkin.
Good morning, thank you for letting me. Take a couple
minutes of your time. My name is Steve starkin. I'm the
executive director of the employee ownership expansion
Network.
Our mission is to significantly expand employee ownership
by creating and supporting a network of independent
nonprofits State Centers for employee ownership. Like the
Illinois Center for employee ownership. You will hear from
today,
There are now 24 State Centers in the network that
frequently collaborate on best practices to grow employee
ownership across the country. My message today is 1 that
many others will share employee. Ownership is a key tool to
help to solve the wealth and income disparity in our
country. Keep businesses local and give employees a voice
at the place in which they work.
I applaud the city's previous work and acknowledging the
power of employee ownership through the wealth Community,
the community wealth building initiative, but I encourage
you to do much, much more. I encourage you to follow the
lead of the city of Pittsburgh, where through a Citywide
task force over. 33,000, businesses, were contacted
directly by the city, to assist them in their succession
planning.
Needs and provided information on all forms of employee
ownership.
Also, the state of Colorado where Governor polus has
created an employee ownership commission and helped draft
and pass legislation to encourage employee ownership
through technical assistance. Grants
Through programs and resources like these and great
organizations. You'll hear from today, you can reach every
business owner in the city large and small, and ensure that
they know that a third-party sale or closing their doors is
not the only option available to them. Instead, they should
consider all forms of employee ownership to determine which
option best allows their employees of all demographics to
share in the profits that they helped to produce thank you.
Thank you, Mr. Stokin
Our next speaker is.
Rolex Nolan.
Good morning, good morning speaker, good morning, Alder
persons. Uh, my name is Ruud Nolan. I am the principal of
Co-op Partners, which is a Community Development, uh,
collaborative, uh, and we work to create democratized
systems, uh, as 1 of the few intersectional organizations
in the community. We work with uh, organizations in the
south west and north side.
To not only push and ensure that we are creating
organizations and systems that protect employees, uh, those
that also value employee ownership, and also employee
governance uh, just to name a few of the projects that we
have, uh, in uh, the wards that you represent, uh,
lee. We work with Aurora Austria and the Philippine Chamber
of Commerce uh alderwoman uh happens worth. We work with
ginger Leopoldo and uh Circa pantig uh virtually, I hear
that Alder. Minhal is here. We work with Deborah Foster
Boehner and the Rejuvenation Equity development cooperative
and what I would like to say not only in um
Saying that we do appreciate this. Uh, this Council taking
up employee ownership but we would also like to push all
the other people and we look forward to working with each 1
of you to explore all the different ways in which we can
protect uh and push uh workers' rights uh and uh
democratize systems, both within the ward, and within your
entire uh, within the entire city. And we look forward to
scheduling those meetings with you. Um and thank you so
much for your efforts and what you've already done. Thank
you.
Thank you, Mr. Nelson.
Mr. Nolan, I'm sorry.
Our next speaker is Renee Hatcher.
Good morning. Uh, my name's Renee Hatcher. I am a law
professor at UIC law, where I direct a clinic, a pro bono
Legal Clinic, taught, the community Enterprise and
solidarity economy Clinic. Uh, we provide legal support to
employee owned institutions specifically, to worker co-ops.
Um, I am also the co-director of the Chicago Community
wealth building ecosystem, uh, which is a formation that is
trying to grow out the ecosystem here to build uh more
institutions including uh including employee ownership. Um,
Um, Enterprises as well as resident-owned institutions,
that actually help keep wealth and and Chicago's uh, black
and brown neighborhoods on the South and West sides. Um,
but also give control to Residents to have direct say and
what their neighborhoods essentially look like.
Um, I wanted to speak specifically to worker Co-op
development and the importance of um, this body and the
city council and the City of Chicago, uh, continuing to
support worker Co-op development, uh, worker Co-op
development has been shown as a key strategy for Community,
Economic Development, uh, to address and, uh, create more
quality jobs in neighborhoods that historically and
continue to be disinvested from uh, that suffer economic
isolation. Uh, they have been shown to increase, uh,
workers' wages, um, 30% of all employee. Uh, payroll jobs
in the city of Chicago are currently low-income jobs. Um,
The Chicago workers lose uh, roughly about 7.6 million
dollars every week on wage theft. So worker Co-op
development, becomes an important way that workers can come
together. Start their own Enterprises have a say in their
working conditions and also then um, our essentially
benefiting from the prophet of their Labor. Uh, so uh, just
to speak briefly to some of the work that has been done on
worker Co-op development here in Chicago. Uh, in 2018,
there was a resolution passed by the Cook County Commission
uh, supporting worker Co-op development, I would, um,
encourage this body to also look at the various ways in
which the city can be an instrumental player and uh
continuing to support worker Co-op development.
Some of that has happened through the community wealth
building, uh, advisory committee that I was a part of in
these last few years. And I think you'll hear more about
that later. Uh, but just want to speak to the importance of
worker Co-op development, 60% of all worker owners across,
the US are women, many of which are women of color, our
worker Co-op, um, worker co-ops here in the city. Uh, are
seen across every industry. Even though many of them are in
the service Industries, which again, are important to
increase in wages and working conditions within those
Industries. Uh, we also are seeing that a lot of worker
Co-op development, has recently taken place and are in
black brown neighborhoods here in the city of Chicago.
Thank you, Miss Hunter.
Um, our next speaker is Mary Joseph.
Following Mary. Our last speaker will be uh, Steve.
Eagle.
Thank you so much. Uh it is a joy to be here. I wanted to
share some history of this conversation with this great
City. I worked at LEL bank for 20 years and was very active
in their Community Development and had several
opportunities to sit in City Hall here and have
conversations on how employee ownership could save jobs in
the city. Uh, we worked with the manufacturing group on the
north side of the city to see if we could protect
manufacturing jobs by being more.
Assertive with employee ownership. So it's such a privilege
and I really want to thank uh Steve Stark and I they for
they for creating this opportunity to again, have this
meeting, and to have it as many have said, cross
functionally, with all the strategies, in which employee
ownership.
Retains jobs in these vital communities provides, great
work, good jobs and a real living wage. Um, people who work
for employee owned, companies have better engagement. Uh,
they have more Financial Security, they treat their
families and communities better, and there's a tremendous
ripple effect. So it's so proud to be here. I'm also so
proud of having spent my career in and around employee
ownership that Chicago, Chicago boasts the largest
community of service providers for employee ownership. You
may or may not know that some other communities and cities
across the country.
Refer to us as the Chicago Mafia some of my friends and
colleagues are here. But uh there's a tremendous community
and richness of Professional Resources, who would love to
continue to support you? The alderman answer questions the
Illinois CEO. Steve stokin uh to promote something. We've
all dedicated, our careers to another thing to be super
proud of around Chicago um is that Chicago boasts some of
the most remarkable employee owned companies amsted
Industries, a 4 billion dollar manufacturing company is
headquartered here in the city of Chicago and I could go on
and we're going to hear from 1 of the great companies. Uh
that's employee owned in the city of Chicago today.
So yeah, it doesn't sound sexy. We don't get to read about
it in the Wall Street Journal, but the impact is so
extraordinary and such a great opportunity. And I'm so
thrilled to be part of bringing this conversation back to
this great City of Chicago. Thank you.
Thank you, Mary. Our next speaker is Steve
Thank you, chair. First, and esteemed committee members.
Uh, I'm Steve Edgar from shy, Commons lwca. We're a
worker-owned multi-stakeholder, uh, cooperative and we're
among the first half, dozen cooperatives to under to, uh,
to register with the state under the lwca act in 2020.
Uh, in the employee ownership World, there are 3 forms of
worker ownership Employee Stock, ownership plans, esops
employee ownership, trust Koontz and worker cooperatives.
Chai. Commons is a worker Cooperative, which I'll be
addressing today. Uh, I want to say, I want to stress that
all 3 are very valid forms and they all serve different
functions within the ecosystem.
Um,
in 2019, Illinois passed Landmark legislation, The Limited
worker Cooperative Association act. That places. Illinois,
amongst the leading worker Cooperative States.
Uh, worker Cooperative is full of vital Niche and employee
ownership as many are owned by fewer than 20, uh, worker
owners, which falls under the viable threshold for esops
and eotss.
Worker owners manage their own cooperatives jointly and are
engaged in in in are engaged in their success personally.
Uh, conversion to worker Co-op ownership. Uh, provides an
ideal transition pathway, for many small, businesses of
less than 20 employees where children have moved on to
other careers, this conversion maintains, the services and
economic Foundation, uh, within communities allows the, uh,
original founders of the business to capitalize on their
hard work and allows, uh, employees to affordably invest
in, uh, business ownership.
uh, under the lwc ACT, uh, worker on co-ops, may also be
multi-stakeholder co-ops primarily owned by workers, but
with other owner classes, which broadens, the economic
impact,
Uh, shy comments is in instantiated, a consumer class, in
addition to our worker class in 1 of our planned service
lines. We will offer uh, Last Mile internet service in to
underserved uh, Community areas to our uh, consumer owner
class.
uh our consumer class benefits by getting lower cost,
internet services and the ability to control it by voting
for Consumer. Uh but the board of directors and uh major
Cooperative policies
So you see worker cooperatives that have a a c inhabit, a
crib critical space in the realm of employee ownership.
Thank you for your time and attention.
Thank you, Steve.
That concludes the public comment portion of the hearing.
as stated earlier, the item on today's agenda is a
substitute resolution recognizing, and promoting employee
ownership as a strategy to maximize economic sustainability
and equity in the city of Chicago. You should have, you
should all have copies of the substitute resolution in your
packets. We voted on this at the last Committee hearing
Today, we convene for a subject matter hearing on ways to
implement encourage employee ownership in the city of
Chicago.
In the next several decades, we will we will be seeing just
under 6,000 businesses. Have a change in ownership
affecting 242,000 workers or 20% of local Enterprises in
the city.
This shift will undoubtedly bring about disruption.
My Hope Is that we use this moment to support business
succession models that have value values, stability and
continue. Continue continue, continue UI.
Continuity, I'm sorry. Continuity.
We just came back from vacation. Please be be patient so
that employees will have that have been doing the work and
putting in the elbow. Grease can continue to see the fruits
of their labor
this is also an issue of equity as we still see the
persistent barriers of opportunity for minority women,
owners and minority employees,
The silver tsunami is being dubbed, can have the
catastrophic outcome of thousands of jobs being lost in the
city.
This cannot be the outcome.
With employee ownership, we can assure that the city of
Chicago better navigate the tricky Waters of this of this
disruption. We can ensure that local businesses and their
employees benefit from and maintain the wealth. They work
so hard to generate and we can ensure that local
Enterprises across our city, not only survive, but Thrive
as the next generation of Workforce takeover
With us today is a range of community stakeholders, subject
matter, experts and officials looking to bring solutions to
the table. I encourage everyone to ask as many questions as
possible and to strongly, consider what Chicago will look
like in the next decade decade or so, and how employee
ownership can be a benefit to our city, and its residents,
Employee ownership can exist in different forms. Today, we
will focus mostly on Employee Stock ownership. Uh, plans,
dubbed esops and worker cooperatives co-ops.
With that being said, let's move forward.
We have divided today's hearing into 2 segments. First
we'll hear from the experts on Employee Stock, ownership
plans, esops and in the second segment we will hear from
the experts on worker cooperative and other City programs.
the end of each segment of speakers. There will be a period
period of Q&A for Alderman and women to get answers. They
may have from our speakers with that. We hear from our
first setup panelists who will discuss Employee Stock
ownership plans. Joining us. Today we have a calero
executive director of the Illinois Center for employee
ownership.
Jim Johnson Chief Operating Officer snc electric. And after
that, we'll begin a Q&A for the portion of the hearing.
I will now turn it over to Aero. You can begin your
testimony.
Thank you, chairman.
Hello Alderman and alderwoman. Thank you for having us
here. My name is Ivy caldero and I'm the executive director
of the Illinois Center for employee ownership.
Our mission is to promote and Foster employee ownership
throughout the state of Illinois. Uh, we are part of
23 other State Centers, a network of 23, other State
Centers that are working diligently day in and day out to
grow employee ownership Nationwide. I'm honored to speak to
you about how we can support higher quality jobs and bring
Bridging the racial and gender wealth Gap by increasing the
number of employee owned companies in the city of Chicago.
So, for those of you who don't know, have any of you heard
of employee ownership before, maybe? Okay, good. It's
exciting that you've heard of it. Um,
It's a form of business ownership, at the end of the day,
there are 3 main types of employee ownership. So first, um,
um, Employee Stock ownership plans are tends to be a little
more widely known. It's also the largest form, like,
there's the most number of employee owned companies are
called esops. We also have worker, cooperatives, worker
cooperatives, and then employee ownership trusts
Uh, the key about all 3 models is that they provide
employees with a significant stake in their companies,
aligning, the interests of workers with the business and
creating Pathways to greater greater Financial Security and
wealth.
The key is that the investment that ownership is earned by
employees with minimal or zero out-of-pocket investment.
This allows all employees to access ownership through their
work and contribution.
Um, in Chicago, we have several
Employee owned companies, across Industries such as
construction. Manufacturing technology, Professional
Services, approximately 40, um, privately held companies
are esops
um,
located in the city of Chicago, they have over over 11,400
workers generating significant economic activity. The key
component is that these less than 40 companies have
distributed 6.6 billion in wealth to their employees.
That's a big number. Um, what uh, the way it works is these
are retirement plans that each eligible employee and the
vast majority of employees working at the company are
eligible. They have to be widely available like a 401k and
every year the company makes contributions to the plan
eventually when a employee leaves um the company for
retirement or be
Because they, uh, decide to leave the company, they're able
to take the value of that, uh, annual contribution in
stock, and whatever value that it is, they're able to take
with them. They own it fair and square.
Um,
today we have a Chicago uh employee owned company snc
electric based on Chicago's north side here to speak with
you about their company and how they are creating jobs and
well for their employee owners.
I want to talk to you a little bit about how I found my
journey to employee ownership.
Uh, about 8 years ago, I'm a Lifeline Chicago, Chicago and
lived on the North side, All My Life. Um, I'm also from,
uh, a Chicago public school alumnus, right. How did someone
just learn about an employee ownership? I was very lucky to
have, um, an MBA and where I was exposed to a lot of
different things and I helped a company uh, in Illinois
called Crepes a latte convert to employee ownership in
2813.
Um, as the CEO of a small business, it was extremely
rewarding to see how it changed the behaviour of employees.
Once they learn that they were owners and that they were
going to build wealth by working at the company.
More importantly, our company was extremely, coid impacted
in March 2020, we lost 100% of Revenue. We were a
Hospitality business. That worked large events at trade
shows. There were no trade shows. There were no trade shows
for not just a couple months for over a year, but we
managed to keep our employees employed and they were
willing to take on new job. Roles, learn new skills. Come
in day in day out, and help support the company's long-term
survival. What were the results?
Well.
From 2020, to 2023, our Revenue, grew 711%. We were bigger
in 2023 by well over 30%. Then we had been preco and then,
as you know, not all Hospitality businesses, were able to
survive like that and grow postco. I 100% give credit to
that growth because of the commitment of the employees and
the alignment of interests of seeing their share price grow
uh, during that time period as we were able to uh, grow
from the changes that Co brought on. We also had a 100%
100% vaccination rate in June 2021, we had no issues with
employees being asked to come back to the office. These
were the types. Of course, with the proper safety measures
that we put in place, these are the types of behavior
changes that you see when you become employee owned, it,
it, the money is important but it's also about the culture
and the investment in people. Um, 1 of the things.
I take great pride in, uh, after leaving my company. Is
that, um, a new employee who started in 28 straight out of
college. Um, first generation college student, hyat balance
was approximately $40,000, um, in 2023 after 5 years with
the company, I think that's a testament to the wealth
creation that you're able to build as an employee owner.
Today, the long-term viability of small businesses across
the city and Nation faced a hidden. But urgent crisis, our
city government plays, a key role in leading the charge of
business Legacy planning strategy. That does not leave
behind low-income workers women African-Americans and
Latinos as we confront, the silver tsunami the impending
retirement of baby boomer businesses. We Face a critical
Challenge and a unique opportunity. Over 500 5,500
businesses in Chicago. That employ 241,000 workers are at
risk of closure, due to a lack of transition planning. Most
times when you survey business owners any anywhere between
75 to 80% of business owners who are approaching retirement
have no secession plan, and have not worked on a secession
plan, it is a small business crisis, but if we Embrace
employee ownership in the city of Chicago, we can transform
this challenge into a catalyst for economic resilience and
Equity. Just as importantly, we have a chance.
Of creating more black Latino and women business owners,
keeping jobs and wealth and local communities, and
sustaining a strong local economy in 1 conversion of a
factory that has 80 to 125 workers that are primarily
minority. You're literally can create almost 100 employee
owners. 100 business owners in 1 transaction. That's the
type of transformation that we can see in our local
communities. Um, and um, there is statistic after statistic
as to why employee ownership is better for workers. So,
workers. So, research has found that employee owners of
color have 30% higher wage income than do non-employee
owners of color. Women employee owners have 17% higher wage
income than do their non-employer owners. A study by the
University of South Southern California, finds that
formerly incarcerated ESOP employees earn 25%. More in
income than do formerly incarcerated workers, who are not
employed owned, uh, research,
By Ruckers and WK Kellogg Foundation. Found that the low
and moderate income workers. In the companies, they studied
had an ESOP account median, valid median account value of
165000, by contrast, the typical American household at the
50th percentile median had just 17,000 in savings, and we
know most of many of our neighbors and our local
communities, can barely pay a Towing charge or a flat tire
fee. If they are found in those,
Circumstances the same study found that black women that
black low and moderate income women ESOP, employees had
retirement values of fifty thousand dollars versus just
$200 for the average black woman worker. Um going to the
discussion of home of cooperatives. Cooperatives also have
a stellar reputation the Home Care Cooperative,
benchmarking report. We all know home care workers are some
of the lowest income workers in our communities. They found
that uh Cooperative Nationwide paid workers on average
6.25% more than their competitors and had 36% lower
turnover compared to the larger industry. It's likely
because of the better health safety protocols that they're
following. Um, employee ownership just offers a
transformational path economic stability and Equity,
However, the journey to widespread adoption especially
among minority and women-owned businesses has a lot of
challenges that need to be addressed. Uh, first is
awareness and education.
Uh, 1 of the primary obstacles is the lack of awareness and
education about employee ownership, exactly how it works,
Uh, what's available to them and more importantly,
especially in the minority and women owned business
community. So this uh, lack of knowledge creates gaps of
your ability to understand what the session planning is
access to Capital. Um, access to Capital remains a
significant barrier. Transitioning to employee ownership.
Often requires substantial Financial Resources.
Resources, whether for buying out the current owner, or
investing in the infrastructure to support, growth minority
and women uh, own businesses. Frequently faced greater
difficult difficulties in securing loans and financial
backing due to historical and systemic inequities in the
financial system. There are states and cities working on
this on, on solving, for this challenge, for example, the
state of Colorado has invested in tax credits, that help
support the conversion to employee owned companies and
provides effectively refunds for the cost of converting
your business to employee ownership.
Technical expertise, so implementing an employee owned
model, requires specialized Legal Financial, and
organizational, expertise minority and women-owned business
might lack access to professionals experience in these
areas. This is where the Illinois Center comes in. We
support all businesses and we provide free advice to all
businesses thinking about employee ownership. But there is
so much more work to be done to provide that technical
support Regulatory and policy hurdles. Um, it's can be
part. Every state is different and every city is different.
So for example, some engineering companies and have
difficulties converting to employee ownership because of
Licensing, right? There's um, what we need to do is look at
the state level and City level, and sure, none of our
regulatory. Whether it's bonding requirements, that's
construction companies, or certification requirements, get
in the way of employee ownership. And
It should be actively looking at the regulatory Frameworks
to ensure that we are not putting in barriers to employee
ownership. Um, second is changes to certification
guidelines currently the rules outlining certification of
minority and women-owned businesses need to account for the
nuances, employee ownership in effect. We are limiting the
creation of more African-American Latino and woman business
owners as well as limiting the secession options available
to women and minority businesses. I know of 2 businesses in
the city of Chicago that lost their their status and
several in Cook County when they converted to employee
ownership. Uh, right now it's just not achievable to create
100% minority owned company in the state of Illinois, um,
to address these challenges. Then Foster the growth of
employee ownership here. Are things where I think the city
of Chicago can continue to invest in fund and create
targeted educational campaigns to raise awareness about the
benefits and feasibility of employee ownership partner with
local organizations.
Chambers of Commerce, uh, the state center and Community
groups, New York City, and Pittsburgh have spearheaded
successful Outreach campaigns, that really Elevate the at
risk businesses that are at, uh, at risk of closing
financial support and set and incentives. Develop financial
assistance programs, including grants low, interest loans,
and tax incentives to fund conversions. The city of Chicago
can invest also in fund managers such as apis and Heritage,
which has developed a
Track record of financing, the conversion of companies with
large workforces of color into 100% employee owned
businesses. The track record exists. The Innovative
capital, M model, helps workers of color, build wealth, and
potentially retire with 70 to 120 and savings, according to
apis and Heritage. Um, cultural change and leadership
development enable. Workforce Development dollars to help
workers become owners. So there is specific educational
training that exists that we can help Elevate more own more
employees, to understand what being a business owner is and
to help contribute to their companies long term success.
And finally ensure that when businesses run by women and
people of color convert, they do not lose their mwbe
certification and or consider directing them through a
FasTrak certification process recently North North Carolina
updated. Its procurement laws allowing esops in which at
least 51% of the participants are minority.
Persons or socially and economically disadvantaged and
individuals to qualify for the set aside program. Um, as we
know, uh, what we when you build wealth worker by worker
employee by employee, we're having a major Catalyst, a
change in their local communities, uh, by addressing these
challenges head on, we can unlock the potential of all
employee ownership and creating a more Equitable and
resilient economy for all Chicagoans. I
Stand before you today to speak in favor of the resolution
recognizing, and promoting employee ownership in the city
of Chicago, along with a commitment to just addressing the
barriers to expanding employee ownership.
This resolution highlights the city's commitment to
economic empowerment of our workers and the revitalization
of our local communities. Um, next I want to present you
with Jim Johnson, Jr. The CEO of snc electric
This 100 year old Chicago based company to continue to be
at the Forefront of innovation. In the electrical
distribution is industry as well as an employee owner. Most
recently, the city of Chicago and World business Chicago
honored snc with a 2023 manufacturing award in the
Workforce Development and productivity category. Jim is
responsible for overall corporate initiatives to improve
quality costs lead time and delivery through the processes
methods and principles of lean performance system. A
19-year veteran of snc. Jim has been responsible for snc's
operations, in the US, China and Mexico. Um, he graduated
from the University of Illinois at Chicago, and, uh, he has
is proud to have spent his entire career with SMC.
Chairman alderwoman Alderman. Thank you.
On behalf of snc's employee owned, Workforce for allowing
me to talk to you on this very important.
Thank you for allowing me to talk to you about this very
important topic.
Snc has been 100% employee owned since 2012.
However, that ownership mindset dates back. Well, before
time, when John Conrad, the longtime owner of snc and Son
of the founder was still alive. Running the company.
John taught us, the value of giving back.
Giving back to each other, giving back to our community and
for taking pride in the work that we do.
He instilled in us, the core values that still resonate
today. Respect for people.
Doing business with personal integrity.
Responsible stewardship.
And a commitment to Excellence.
It's in those values that we've been operating the company
as employee owners.
Now, I'm grateful to be part of a company that empowers
people to transform the electrical grid.
Today's world demands resilient and reliable electrical
power.
Making it a really exciting time to be part of SMC
Electric.
Employee ownership is the icing on the cake?
because as we create value for our business,
that value is passed along to our team members.
We do it for each other.
We do it for our 63% diverse Workforce.
Now, maybe you haven't heard of USC.
For, but we're 1 of the largest manufacturers in the city.
We sit on more than 46 acres in the Rogers. Park
neighborhood with over 1.2 million square feet under roof.
Chicago is headquarters. It's been headquarters since we
were founded in 1909.
Snc is expanded operations Beyond Chicago, over the years.
In fact, personally I've been in involved in opening sites
in West Palm Beach Florida we've expanded our footprint in
Franklin Wisconsin.
And our most recent expansion is a 275000 square foot
facility. Not far from our headquarters in Palatine
Illinois.
Our commitment to Chicago and the Chicago land area has
never been stronger.
We value our partnership with the city and have
participated in several events with the mayor's office and
Mayor Johnson himself focused on youth employment.
Honestly, that's something that's near and dear to both of
us.
Now, I've been fortunate to work at snc my entire career.
And as you could tell from the lack of hair on the top of
my head, that's been a long career.
But my father retired from snc with 44 years of service.
So, I've got some room to go.
When asked why we stay at essency?
The answer is quite simple actually.
It's because of the people.
Snc is a different company.
And I know our employee ownership model is the reason we
can still say that today. Almost 2 decades since John
Conrad's passing.
Snc is committed to our team members.
We make decision for the long term without getting bogged
down on quarterly reports or market trends.
We don't answer to the street.
We answer to each other.
We pour a significant amount of money into R&D and have 400
of the smartest research and development team members
developing new innovations, that keep the lights on at your
homes.
Your supermarkets, your schools, your hospitals, and your
airports.
We prioritize team member safety ahead of profits.
Every shift starts with a safety moment. As do most
meetings.
We don't cut Corners when it comes to safety. And how could
we?
They own it. We own it.
Now, before I summarize, I want to go off script a little
bit and talk about some of the challenges that we have as
an employee owner.
In this stems from some comments, we heard earlier and, uh,
and comments from 80.
It's around education, in my opinion.
From both sides, I think. I think companies need to
understand that employee ownership is a is a real viable
succession opportunity for them.
And uh, and our ability to become an employee owned company,
after John Conrad passed.
Is likely, the reason that we still have over 2,800 jobs in
the city of Chicago today?
I also want to talk the other side of that equation though.
People who are searching for jobs, people who are in the
market.
they don't understand what employee ownership is and the
value that it brings
Now, of course, we pay a a extremely Fair wage for the work
that we do.
But being an employee owned company, adds value, Way
Beyond. Just the starting wage. And I could tell you when I
was a, a 22 year old college graduate,
I didn't so much pay attention to what the value is an
employee owner would bring
In my retirement, I wasn't thinking about that.
But now I can tell you.
I do.
And everybody should.
and it's that educational piece that I think we really need
to uh to to push because
Many of the uh, many of the stats that were just thrown
out.
People who work for employee owned companies, there's a lot
more than just a wage, a salary for them.
And we need to promote that too. Many people are coming to
our doors.
Looking for a job.
When in reality, we offer careers AT&T Electric.
so, in summary,
Snc is a gem of a company in the Rogers Park neighborhood.
We fabricate parts.
And assemble project products that support the reliable
transmission and distribution of electric power throughout
the world.
Our journey into employee ownership started 12 years ago
and has has had a significant impact on all of our us
full-time team members.
I want to thank you all for your time today and I look
forward to any questions that you may have.
Thank you, Jim.
That concludes our panelists for the first segment of
today's hearing, we will now open it up to Q&A from all the
persons before moving to the next segment.
Start with chair Rodriguez.
Thank you, uh, very much Mr. Chair. And uh uh what a try to
find job you're doing up there. Um, look
as share the Workforce Development Committee for the city
of Chicago city council.
We need to be thinking about creative ways to build wealth
in our great City. And why not do that with our Workforce?
Our Workforce is the backbone of our great City and the
fact is when we incentivize our Workforce
They're retained at higher rates.
Their productivity goes up exponentially. This is all
informed researched, um, I think, uh, chair viegas,
and our panelists here today, for bringing this forward,
this resolution, um, really speaks
Um, to a space in which we need to walk and walk quickly
into. Um, so I just wanted to give my own take on this
endeavor and I do have some questions um, principally for
the presenters today. Um 1 is around um the various types
types of ownership employee ownership models in the
resolution. We outline Employee Stock ownership. We outline
worker cooperatives, which I'm most familiar with and
employee ownership trusts, what are some of the differences
between those um, types of models and particularly, as it
relates to building of wealth and productivity?
there's a lot of differences, so let's see if I can
summarize, um, an ESOP is federally regulated. Um, for the
benefit of forming an ESOP, there's typically a significant
tax advantage either on the profits of a business or on the
transfer of the bit uh basically on the capital gains that
is diminished kind, it's very technical
um it also tends to need to be about 12 to 15 employees
minimum mainly because like a 401k, if anyone's ever had to
set up a 401k, there is rules as to how many how much needs
to be allocated to each person and you could trip up those
types of rules. Uh, so it's highly regulated um which is
which a lot of business owners like because it feels like
there's rules that they can follow. Um, it tends to require
at least 12 to 15 employees and what we would consider a
million dollars in profits. Um, and uh, let let me other
see. And then you have to ensure that it's broad-based
everybody. Like, every person who meets the rules of you
are eligible, has to be included in the plan that goes to
the regulatory environment. So you can't say well, you've
only you both started the same day and you may 5 thousand
dollars less or you're not a manager and he's the manager.
If you guys all meet the rules of typically, a certain
number of hours,
A year and being there, January at a certain tenure. And
then being there on December 31st, you have to be able to
get stock and the stock is allocated on a pro-rata basis.
Which is uh a percentage your salary as the numerator and
the uh denominator is all salaries. And you get that
percentage of stock award every year. Um the so I'm trying
to see if hope I encapsulated all the role all of it and
eot is a relatively newer form of employee ownership. It's
very common in the United Kingdom and it's seen as kind of
the bridge between a worker Co-op and an ESOP, so it's less
regulated. Um, typically it's formed for both providing
employee ownership and some type of social Mission or the
company. So companies going to always stay in Chicago, the
company is always going to be uh, socially conscious. Um,
and then finally getting shares, its more profits and
there's, um, the board of directors determines the way. The
profits are allocated on an annual basis, but it's less of
a share, uh, that you own shares and it's more of annual
profits. Uh, but there's a lot of, uh, creativity.
And then the final is worker cooperatives, which you said
you were more familiar with which tends to be a mix of how
the gut the the company is governed as well as a share an
employee ownership. So um,
All shares are owned by employees, typically. There's a
small Buy in 500 thousand dollars and then all the
shareholders, determine things like how much we're going to
invest in New Capital? What are wages going to be that
year? There's a form to, there's ways to basically join,
all the shareholders, get their input and then make votes
on key decisions for the company, on an annual basis and
just a long productivity Workforce culture between the 3, 3
3, do you see major differences, you know, I would say
They all have.
Strong tracker, records of basically paying workers, more
focusing, much more on health and safety issues, having
higher levels of Engagement and higher levels of employee
turn at at tenure. Uh, they're just different based upon,
of course, a Manufacturing Company versus a professional
Service Company is going to have their own nuances, whether
it's an esap eot or uh, a worker Co-op
And then, um, just just on uh, the city. And I'll pass it
on to, to my colleagues. Um, where we at right now, um, as
far as
scale in the city of Chicago, and what's
What's the future look? Like, as far as scale? Is there
some sort of best practice across the country where other
cities are doing it? Better, you mentioned the UK
internationally. This is absolutely an international issue.
Given that our economy is becoming much more entangled with
every economy across the world and for Competitive Edge. I
also want to say in for both here locally in our region and
and internationally. You know, we've got to be on the the
front edge of of innovation and this strikes me as 1 of
those spaces where we can create some creative Edge here in
the city. Um, but again, on scale, where we at, and where
we want to, where do we want to get?
A little bit more about the community wealth building
initiative and some of their initial work in uh helping to
support employee ownership, particularly at the Co-op
level. I would say we, we, we need to move quicker because
of the silver tsunami because of the, uh, current
businesses that in the next 10 years, are going to
transition, uh, 1 of the most important things. The city
could do is to work to develop the resources to really
create an a database of at risk businesses, and then help
educate them about employee ownership through collaborative
Partnerships, uh, Citywide with Chambers and Community
organizations.
And, you know, that was gonna be my last question. So I
won't, I won't go there. I just wanted to, uh, tell you
miss galeto. What a great presentation you synthesized.
This very, very well. I think for all of us and Mr.
Johnson, whenever you want to expand into the 22nd word on
the selfless side of Chicago, you let me know, uh, we're
ready to go but thank you very much, uh, Mr. Chair.
Thank you, Cheryl laspada.
Thank you so much, Vice chair. Uh, really just a really
Phenomenal presentation. I actually, I think 1 of the
companies we shop from pretty frequently, Bob's Red Mill,
is a employee owned company now on the the Northeast but we
we love what they do and we love a lot of these companies
here. I had 2 questions for you.
Actually like number 1.
I feel like the column here around.
Plan effective date is fascinating. Some of these have been
around for decades, your company sir. Um, some like very
recent, what is the, what is the percentage? Kind of
breakdown of companies that start out as employee owned
ESOP, the other models, and what is the percentage that
Have transitioned to that model from being formerly,
privately owned. And I'm curious if there was a process as
in C went through.
Let's talk about it.
So roughly about 200, new esops are formed every year.
I would say though the numbers actually bigger because
there's a growing trend of successful esops that have now
acquired other companies so they basically bring them into
the fold. So in 20202 for the 2022 year, um there was an
increase of by 20% of employee employee owners versus just
a about 200, new esops.
Um, there are esops that eventually, you know, go away.
Sometimes there are, they're acquired by a bigger company
and it ends up being the right thing for that business.
Sometimes, you know,
Esops can't be there are esops that sometimes just have to
close their doors, right? Uh but there is definitely been a
growth in new employee ownership formation across all forms
um over the last several years as a
The baby boomer generation is retiring in bigger numbers
and B, more awareness of employee ownership has continued
to, uh, grow in parts of the country.
What did that look and feel like for us and see where
you're working there at the time?
I was and, um,
I can tell you that the transition into employee ownership
took took some time, I was a, uh, it was a uh,
um, interesting time for the company because
We didn't actually know how we were going to transition on
day 1 into employee ownership, but uh, but what the work of
a lot of good people and uh, and a lot of support, we were
able to make that transition and uh, and it has been um, it
has transformed the company in the last 12 years.
It's allowed us to continue to look, um, and make decisions
for the long term.
And uh, and like I said earlier, it's kept us in my
opinion. It is kept us in the city of Chicago.
and, uh, and when you think about, uh, what employee
ownership does for you, it, it makes the company really
sticky to the location that they're at because, uh,
decisions to, to, in manufacturing to move to to other
areas. Now, impact the people who owned the company, right?
And so, um, I like to use the term, you know, it makes us
really sticky to to, to where we're doing business. And uh
and I think that's a that's a benefit for for the city of
Chicago, for sure. I love it. I may follow up offline. I
just had 1 more question. Sir, it says,
so, it's fascinating when you, you go through this because a
lot of our employee owned companies are in
Professional Services, maybe construction. Manufacturing,
many have been around for decades. There's 1 here that's
such a fascinating outlier that I had to ask you about it,
which is the Clark and Devon Hardware. Um, yeah, right? I'm
like 2022, hardware company.
49, active, members, active, participants 49 total. I'm
wondering if you can speak a little bit about that case
study because it feels like there's a lot of uniqueness
there. Yeah, they converted in 23 and they've been featured
in the Sun Times and various other articles. So Clark,
Devon Hardware, specializes in selling to local Builders
right? Small construction companies and the your local
handyman guy and sometimes, you know, you're, you know,
people who decide that they don't want to just go to Home
Depot, they want to support a local business and get high
quality customer service. Uh, the 2 owners were getting
older in their years and they want it to stay local. They
didn't want to close shop but there really was no options
for them. Um, outside of being bought out, probably buy
like a big chain, right? And so, they went through the
process of becoming an ESOP. They have about, they home,
grew their CEO. So he used to be on the retail floor, and
now he's their CEO running the business.
Business. They are extremely passionate owners. Who greet
you? When you come into the store every day, another big
company, you may have heard of they're not located in
Chicago, but Darvin is employee owns and they operated out
of their facility in the south suburbs and every employee
that will tell you that they are an owner when they're
giving you great customer service.
Genuinely fascinating, I well, Mr. Jones, I need to, uh,
leave before you're part of this presentation for another
thing outside of here, but I'll follow up with you, because
in the first ward, in particular, we have a lot of Legacy
manufacturing businesses, a lot that based off of how the
neighborhood has developed. Now, we're kind of be
considered non-conforming but they're great and they're
holding on and they're stable.
And I have a suspicion in my head that they are part of the
silver tsunami that we're talking about and figuring out
the best way to to outreach to them. Yeah, the North Branch
area.
Uh, we're a little bit farther south than that but I know
we're talking about. Yeah, I'll I'll be in touch.
I sure do. Uh thank you Vice chair. Thank you, chair
Vasquez.
Much. Okay, wasn't sure. Uh, this is fascinating. I'm really
glad I want to thank the chairman for um putting this
together. Uh, snc is in the 40th Ward, so we're very proud.
Uh, newly into the 40th Ward. I'll be honest and, uh, Devin
Clark, Devon Hardware was in the 40th Awards, so some of
that magic might be being close to us. We're happy to to
take some of that. Um, the only question I really have
because we really want to incentivize more of that, right?
So, that employees have
um,
they feel more fulfilled when they're part owners of a
business, they don't feel like their labor is being used
and they could get cut at some point. Um and then all the
time and investment that they have feels a bit Hollow. So I
think when you have um, employees that aren't part owner,
there's a different level of investment. And a little
different level of commitment that I think helps a business
last longer and that translates over to their customers
because they feel it in the interactions. I think what I
what I'd like to know is what we as city government.
I guess it's a 2-part. What can we a city government do to
to facilitate or incentivize more of the esops uh coming
online? The lack of better term and the second what are we
doing to make it harder? What are the hurdles? What is the
challenging and talking of many of our departments? I think
the more we understand that the more we can continue to
write set set government in a way that allows for for more
of it to happen. So if there's anything that you all are
seeing that either is super helpful and it's
Incentivizes it that we can do or similarly as a hurdle
that we need to overcome uh that'd be helpful for us.
I'll start.
So we're already an esap. So um, so we've all we've done.
We've done the leg work already. We've gone through the
through the hurdles. Um
In, in my opinion though it's the continued education. I
spoke to it a little bit earlier it's the continued
education around around the value um of employee ownership.
Um in my opinion the level of Engagement of our team
members um not only because their employee owners but
because we offer educational reimbursement, we offer on the
job training. We offer extremely competitive wages in a
number and variety of different, uh, types of jobs. Um,
I think I think it just selling and and helping to tell
those stories.
I think, really important. We, we got really excited
talking about Clark and Devon Hardware.
Tremendous supplier test and see, I think we're there a few
few times every day getting stuff. And, uh, and and it's
that excitement that, uh, that will really help stimulate
more employee ownership and, uh, and and draw more of our
critical Workforce to, to companies that are employee
owned. And I think, uh, speaking on behalf of, you know, a
company that's already employee on, that would be super
beneficial. Um, for the things you all can do.
Yeah, hurdles, I would say once again we already know the
challenges minority and women businesses face in terms of
growth and long-term viability. Um, without changing
procurement laws in the state of Illinois and city of
Chicago, You're basically giving your current minority and
women-owned businesses less opportunities for secession
planning. And so employee ownership is a really viable way
to meet both goals. Keep businesses minority and women
owned, and also allow for secession. Proper secession
planning and business transition planning for those
businesses. Long term, thank you for that. I, um, so along
those lines and this could be through the chair, um, as far
as the Department of Law, if they're able to kind of apply.
Now, what we can do to through the procurement to
incentivize looking at esops and saying, hey, like
obviously, there's laws that have to, um,
there's a lot of work to establish categories, but there
might be ways to incentivize and actually have that be part
of scoring or something else to take into account that
could be helpful for us. Um, yeah. We want to see that
growth and I and I appreciate um, the answer about just
raising awareness if there's opportunities like
I don't know if there's like, um,
I guess conventions or anything as far as esops or
something or like a 101 for folks who might be interested
information to send to like owners who might be part of the
silver tsunami, I think that would be important for us to
have with the ward offices. So on the ground, we might be
able to disseminate some of that information. Um, I I
believe we need to especially um, to your point Mr.
Johnson, as far as how sticky they become
Right? We want to make sure we're retaining these
businesses not losing them as it helps our city grow but
the more we can do it the better. So uh thank you again.
And thank you so much for having this is a hearing
Thank you chairman. Thank you alderman. Hoppenworth
Thank you, share.
Thank you for this presentation um and also to the comments
comments of my colleagues. Um, I um, uh, minority owned
business, women owned and I've been a small business owner
for, um, 24 years now in Andersonville. And, um, so I
appreciate your story very much and, um, the 48th Ward is
right next to the 49th Ward. And so I imagine that many of
my residents might be actually, you know, employee owned of
of your
Institution really. And so I just wanted to say thank you
for this presentation. Um, this is the kind of thing that
builds Community. Um I've lived in Andersonville for 27
these these kinds of Institutions um are important for our
important for our local economy. We want to grow especially
after the pandemic. People are really localizing. Um, their
work,
and um, this is 1 creative way to um,
Remind people of of why we want to live in Chicago.
Um I do uh want to Second Alder, vasquez's point to, you
know, how is it that we can work together to? Um create
this culture where we're lifting up? Uh, workers.
um,
and also to, um,
to say that we absolutely have to be creative as, um, our
chair from the workforce is saying, um,
It's uh, it's imperative. Um, we are actually
Leading population. Um, and we want to remind people again
of why we are, you know, the place that people want to to
live in. Um so please invite us uh from the 48th Ward to
Rogers Park and please be in touch about what we can do. Um
to lift up all SM, uh small business owners, especially
especially women and minority owned um, businesses in
Chicago. And thank you for this presentation. Thanks. Thank
you. Just want to remind my colleagues if you're able to
stick around our next segment will include uh officials
from the city. Um, and with that auto Crews.
Thank you, Vice chair, but I also want to say thank you for
getting us going with our septembar, with our septembar.
Um, committees in a great way. So thank you, great
presentation, so much information. Not only for me to learn
but others as well. I do have 1 question a clarification
question. The clarification question you mentioned
something about pulling a list of uh businesses that might
be at risk.
so,
Does a company to be Finn, you know, at risk, they're not
financially stable. How will they start this program? Um,
is there certain criteria like yes, for example, um, the
city of Pittsburgh put together a database where they were
able to educate, 33,000 business owners and they segment
them between large and small that they
Did significant amount of research, determine companies
that were over, I believe 15 years old and they did
Outreach on employee ownership and then once an owner
demonstrated interest in learning more, brought them
through a process to talk to a technical um someone in the
community that could provide technical guidance on employee
ownership and how it was a fit for them, that was a
a relatively new thing. So there's still evolving and what
the outcomes were. But definitely the awareness building
was very, very important. Um, another city, the New York
City has integrated kind of a hotline approach where
they've done out.
Reach and education about companies to companies. If you
have uh if you want to sell your company or if you think
you want to close your business and they can call a
dedicated out a hotline to receive information and then be
routed to uh, proper technical service providers. So
different approaches, but first and foremost is, you know,
you know, think about it is employee ownership mentioned in
the city of Chicago website, right? Is there a perhaps even
a way to put uh drive it to a a subsidiary website that
really shares information about employee ownership, right?
Um, do any of you when speaking to your chamber of commerce
ever bring up employee ownership, right? Um, we'd be happy
to provide content for your local Chambers of Commerce and
Echo Community, uh, development organizations. Um, when you
convene perhaps, roundtables or other types of events in
your local community that might include Banks and, um,
business owners is content ever, discussed about employee
ownership. Those are the types of things that
The local level that we can build ecosystems of employee
ownership networks and make it more relatable to the people
living in your community.
Good. Thank you. So, we can avoid to get into the risk.
Yeah. Factors. Uh, just our, you know, I'm just curious to
know those companies that do have this employee ownership.
Like,
How is the dynamic with employees? Are they part of the
decision making are their employees were like,
I disagree with your decision. It should have been done
this week. How do you how do they work those Dynamics?
Yeah, great question. Um,
So we share information about the company at across all
levels. So financial information we're employee owned
company. We do not have to share anything publicly but we
share um everything with our team members, um, total
transparency from that perspective. Uh, we have forums for
them to give feedback, so we do uh, regular Town Hall
meetings, um, at the locations within the Departments. We
have, uh, we have a, uh, a local internet SMC Internet site
where they can submit questions to executive team members,
or their leaders, that can submit something anonymously if
they wanted to. Um, we're constantly looking for feedback,
we do an annual engagement survey
With all team members to get their feedback and then uh and
and then we take those findings and and, and act on them
and then share the things that we're doing as a result of
their feedback. So, um, we're constantly looking for, uh,
Team Member feedback so that we can, we can be better. Um,
and that covers everything from wages and benefits to a,
you know, uh, they want a volleyball court, so that we can
have a volleyball, uh, uh, Team or or or a bowling league.
Those sorts of things. So extracurricular, activity type
stuff. So, uh,
Constantly looking for that feedback is really important to
us and uh, and we find ways to to get that.
A lot of great information. Thank you so much.
Thank you.
Otter Lee.
Thank you, Vice chair, and thanks again for the great
information. Um, definitely a good way to get us started.
Um, back here after the summer break, but particular
question about whether or not you've seen any success with
restaurants, um, that's
That's 1 of the, my biggest pain points. Um, in my ward is,
where I've seen institutions, like 7 Treasures. I don't
know if any of you are 7, Treasures fans in China. They've
been the best wonton noodles bar. None in the hole in the
whole area and because their kids didn't want to take over
the business was a complete loss um, to the community. Um,
and it it just makes me wonder, we're we're losing more and
more B. Small businesses like that family-owned, um, and
they're being replaced by chain restaurants. Um, so we're
also losing the character, uh, of our communities at the,
at the end of the day. So I'm I'm just curious as to other
models or other, um, where else you've seen success
stories, or have there been any examples of where, like a
restaurant or Restaurant Group, even, um, has become
employee owned to have the, have the restaurant live on?
Yeah. Um, it's not at the bigger chunk, so like so
manufacturing and, um, construction engineering or probably
the 2 biggest most dominant sectors, but Hospitality,
businesses do represents.
And that's a mix of both, um, Hotel groups, catering
companies, as well as restaurants. And that's where the
whole gamut of worker, cooperatives, eotss and esops are
great, because a smaller company may be benefit more from a
worker Co-op model or an eot. It really just depends on,
uh, but yes, there are definitely successful restaurant
groups that have converted to employee ownership. It's not
as big of a percentage as manufacturing, but uh, it's still
a significant number. Oh, that's great. Well, I'll
certainly have some things to talk to my local Chambers
about. Yeah, based on all this information. So thank you.
Thank you with that. I'm going to have us take a 2-minute
recess to switch out. Panelists. Uh, we'll resume here at
11:35.
We will now hear from our second set of panelists. Who will
discuss worker cooperatives and other City programs that
have been in place joining us here today. We have NECA
On woo.
On Rue.
First Deputy from the office of the mayor business economic
and neighborhood development.
Hannah Jones from the recovery team program, director
Chicago, Department of Planning, Development and Kim Britt
from shy, fresh kitchen.
We'll start off with.
NECA.
Uh, good morning everyone. Thanks for having us. My name is
NECA. I was a first Deputy of business and neighborhood
development in the mayor's office. I've been in the mayor's
office for the last 4 years and have been leading our
community wealth building initiative. And so I'll just walk
you through a few slides to give an overview of community
wealth building and our employee ownership models that
we've been supporting talk a little bit about the benefits
of worker cooperatives. And then we'll, uh, talk a little
bit about the 1500 investment that the city made into
shared ownership models, uh, funded with, uh, arpa dollars
and then lastly, my colleague Hannah will swap, speak to
the work that we're doing to support manufacturing
businesses as well as Legacy businesses.
So I'll first start off with definitions. Uh when this work
first first started about 4 years ago, the goal was really
thinking about how do we address the racial wealth Gap and
when we think about the programs that the city is investing
in across business ownership and Home Ownership,
oftentimes, when we talk about wealth and wealth building,
we were really focusing on what you see on the left hand
side individual and household wealth often referred to as
what you own minus. What you owe, right? So your income and
assets, as what you own, minus your debt and expenses is
what you owe. Um, and that was really focused on uh your
wealth and that was at the individual or household level 1
of the things that we noticed when we first started this
work out of the office of equity and racial Justice was
that there was a gap in the city's efforts to support
Community wealth building. So Community wealth building
which you can see defined on the right is really about the
shared wealth of a community. Um, so I often talk about it
as like the collective or shared wealth of a community. Not
the
sum of wealth within a community. And we worked with an
advisory group of about 20 different community members, all
across, primarily on the south and west side, um, from uh,
Community organizers, Advocates, Co-op developers to advise
the city on how we should be defining Community wealth
building. So for us, the city of Chicago defines Community
wealth building as an approach to economic development that
promotes the
Local Democratic and shared ownership and control of
community assets. Uh, each of those words were selected
very carefully and intentionally. And we mean, all of those
words when we say local Democratic and shared ownership and
control, so, oftentimes people ask well, what does that
mean? And so we went further to Define what we mean. When
we say local Democratic and shared, when we say local
ownership and control, we mean that that ownership and
control is in the hands of residents in, which the neighbor
uh, in which the development is built. Not in the hands of
hands of residents that live in a different Chicago
neighborhood or live in a different city entirely. When we
we mean models that are really focused on a governance that
acknowledges power dynamics and makes for Equitable
decision-making rather than models of ownership that are
hierarchical and exclusive that prioritize, 1 voice over
the other when making decisions. And then lastly shared,
uh, when we say shared ownership and control, we mean
In the hands of as many people as possible. So very
broad-based. Not concentrated in the hands of just 1 person
or a few people. Even if those few people come from
identities that have been historically disinvested in.
so the next question that we get when we Define local
Democratic and shared ownership, ownership and control of
community assets, as it relates to community, wealth
building is okay. Well what percentage of that asset should
residents own? Is it okay if we give up about 10% of the
business to ownership and control by the residents or is it
okay if we do some crowdfunding, that allows, 15% of this
building to be owned and controlled by residents and my
short answer to that is often 100%. Ideally 100% of that
asset is owned and controlled by Community. But at the very
minimum for us as a city, when we think about our community
wealth building initiative, we're talking about majority
owned and controlled by residents. So that means 51% or
more. And so, you know, someone in the public comments, I
think spoke to this beautifully that I think anytime we're
getting away from that axis of the 0000, right? Where
residents own zero and control, zero is a benefit, right?
So you can see on the bottom axis is really thinking about
ownership from 0% to 100%.
On that vertical axis is thinking about control from 0% to
100%. And we're really trying to get into that top right
quadrant where residents are majority owners and in
majority control of that asset.
and so, when we think about Community wealth building um you
you know, there's a number of different models that we're
focusing on and when it comes to, as it relates to business
ownership, our goal was really to think about worker
cooperatives. So as was mentioned, in the former
presentation and from folks in our public comment, worker,
cooperatives are really a unique structure when we think
about employee ownership, right? All employee ownership is
important and really builds towards wealth towards our
residents. And 1 thing that we found to be really unique
about worker Cooperative is that they give residents both
the ownership as well as control over the business in which
they are, um, contributing to
And so our community wealth. Building model uh initiative is
really focused on 4 different asset types business
ownership, home ownership, land, stewardship and commercial
property, and we focus on a shared ownership model priority
model in each 1 of those 4. And so given the focus of
today's conversation, really is on employee ownership. I'll
just focus on worker cooperatives and just give a quick
definition and overview of some of the key benefits. So,
uh, what is a worker Cooperative worker? Cooperative is a
business that is owned and controlled by its employees.
Rather than, by just 1 owner or several Partners or outside
shareholders,
Uh, so you can see, there is a definition at the top. The
ownership is, um, shared, uh, amongst the employees. Uh,
the governance is often, uh, a 1-person 1 vote system or
some type of system that allows really everyone's voice to
be heard. So, that's something that's really unique. Within
this model is that it's not only financially beneficial to
Res to the employees. But it's also gives employees a say,
an agency and ownership and how that businesses operated,
uh, when it comes to Legal structure, um, Renee spoke to
this earlier that in 2000, the state, created a law, that
created the lwca, The Limited worker Cooperative
Association, which is a new legal entity that worker
Cooperative that make it easier for worker cooperatives to
exist.
Um, you can see there the scale about nationally. There's
over 600 different worker, cooperatives with over 6,000
workers, and there's many benefits, right? So higher,
average wages. Obviously, if you're you're on, you're Your
Own Boss. You're going to give yourself thriving wages and
create a work environment. That is conducive to a healthy
safe space. We see that in addition to wages worker
cooperatives also benefit from patronage, which is
essentially a form of a dividend. So, in a typical business
model, right? Where you have the owner,
And then has the wage employees and the owners really the
only 1 who gets the benefit from the profits that are
generated from the workers, right? But in a, in a worker
Cooperative, all of the employees are co-owners of that
business. So all of them get to split, the profits of that
business. In addition to having a higher wages. We see also
with worker cooperatives that there's a reduced internal
pay Equity. So, from the highest paid person to the lowest
paid person. Uh, I mentioned the dignified working
conditions, uh, it enables voice and power, and key
decisions. And then also builds capacity skills and
Leadership. Um, there's been a lot of research that talks
about the benefits of work Cooperative outside the business
alone that it actually encourages a lot more civic
participation by those who are engaged in the worker Co-op.
So that's not just voting more, but it's really being a
better, um, a better, uh, member of your community, and
being a lot more um, engaged. So I and then, and some of
the challenges I'll speak to later on in the presentation,
but
Access to Capital, lack of Technical Training and
assistance, which will speak to, and then lack of public,
education and awareness.
I'll skip over the ESOP because um, I they and others spoke
a little bit more towards this earlier and just speak to
the outcomes. And so when we talk about the outcomes this
will work has always been at the intersection of the office
of equity and racial justice as well as our business and
neighborhood development. Team and so worker. Cooperatives
are really more than just thinking about building the
financial wealth of our residents, right? Having more
dollars in their pocket, more dollars in their savings
account, but it's really about building Community power. So
we see this as an opportunity to build worker power to
build community power to build. Uh, give opportunities for
self-determination and as, as well as neighborhood
stabilization,
So now I'll speak to the 15 million dollar Investments that
the city has made in uh Community wealth building. So like
I mentioned the 15 million dollars. Uh was a portion of our
arpa, American Rescue plan act uh allocation and the city
uh in the last Administration decided that we wanted to
make an investment into Community wealth building
specifically. And so with that, 15 million dollar
investment, we had 3 key goals 1, we knew we wanted to
strengthen the ecosystem that it requires a lot of
organizations to help start sustain and scale these
businesses 2. We knew we wanted to build the pipeline.
There's a lot of residents in your Wars that have the idea
of we want to start a worker Co-op. We want to own our own
Businesses, we want to own this commercial real estate but
we don't have the capital um to actually start this. And so
we wanted to build that pipeline of projects and then
lastly invest in these large-scale pilot projects because
we know what the right support co-ops in your Wards can
really grow and scale grow businesses in your, in your area
and more. And so we want to be able to provide that
Capital. So those 3 goals align with the 3 phases, of this
investment. So, um, the 15 million dollars has gone out in
3 RF. So the first in terms of strengthening the ecosystem
was really, uh, hearing from community that we need a fund
technical assistance. Organizations in 6 keys that can
provide highly specialized coaching and technical
assistance at no cost to the community-based organizations
in your communities. We learned from researchers and
Specialists Across the Nation, as well as our local experts
here. That these were the 6 key areas, that folks felt that
they needed the most support on the first is research and
convening. So being able
Able to speak to um the role that we're Cooperative is, can
can play the benefits of it. Getting some more data on what
we're seeing nationally. The second is education and
Outreach. So we have a number of different organizations
who are hosting, um, different 101 sessions, um, in English
and Spanish for residents across the city. The third is
legal and governance so these can be very legally complex
um deals and so being able to have attorneys who are
specialized in these models, be able to help support you
put together.
whether your documentation to file,
the fourth is business development. So just think about
incubator programs accelerator programs for Co-Op.
Specifically the fifth is financing and fundraising so
being able to think about cdfis who are specialized in
these models and then the 6 is asset in operation. So as
co-ops are growing and want to have their own
brick-and-mortar space who can support them to help
identify buildings in space. So that was the first RFP, the
second uh, is, was, how can we build the pipeline? So this
was actually dpd's first ever planning and pre-development
Grant that has ever gone out and it was focused on
community wealth building. Oftentimes when the city is
giving out money, we're looking at folks who are pretty
sophisticated or further along and, uh, putting together
their business, they have a business plan, they have a
team, maybe they've already acquired the site and then
there are, uh, competing for dollars with dpd. But this was
our first opportunity that said, actually, these models are
pretty complex, and it requires a lot of support for us to
make sure that people can have what they need to get a
strong application in.
In for these larger dollars. So, we gave out $150,000 worth
of planning and pre-development grants to 25 different
organizations who were incubating and starting in in
community different shared ownership, uh, models and then,
lastly is pilot projects. So this is an RFP that's slated
to go out before the end of september of this month. Um,
the goal here is thinking about those big large scale
development projects. And so, you know, 1 of the goals is
really thinking about
You know, these arpa dollars will come and go. And so, how
are we really seeing new institutions within community? So
that, um, you know, in the future, we can continue to
support worker, cooperatives at a larger level, so I'll
just quickly walk through and there's a 1 pager in your
binder that speaks to, um, the folks who received this
funding. But the city funded 16 different technical
assistance, organizations, 11 of which focused specifically
on worker cooperatives. Um, you can see there, for example,
under Business Development. There's project equity, which
is nationally known as a TA provider, that helps to convert
businesses to worker cooperatives.
Um, manufacturing Renaissance is doing a lot of work,
thinking about the silver tsunami, and the transition of
um, manufacturing businesses. And so starting to put
together, what they're calling an early warning Network
that is essentially a database of those manufacturing
businesses that are ripe for a transition and a succession
plan, um, as well as, uh, are U. UIC, the Center for Urban
Economic Development, who is really focusing on a lot of
research and convening as it relates to this work.
Phase 2. Like I mentioned was the planning and
pre-development grants. So we gave out 150,000 dollars
worth um, of Grants to 25 different projects of those 259
of them were worker Cooperative. So you can see there a
list of the different worker cooperatives and the lead
organization. Um, there's a photo there of New Era Windows.
um, that is in the 12th Ward and they are actually 1 of the
first Co-op conversions um in the city. And so a couple of
decades ago, they there are Windows manufacturer and the
owner of the business decided that they no longer wanted to
own the business, so they're going to close the business.
Um, and so, there are a number of different workers at the
time, Armando, who's there at the mic? Who was 1 of the
lead organizers there? Who basically said, you know, you're
going to shut down this business. There's so many people
whose families depend on the work, um, that we're doing
here. So, rather than it be the decision of just that 1
business owner, really? We're going to take over
And we're going to organize to create a worker cooperative.
And so 1 of the TA providers actually that we're working
with actually came in and supported them to convert that
business into a worker cooperative,
And then lastly is the phase 3 so um creating the shared
ownership and Commercial Real Estate fund. So this is the
RFP that will go out before the end of this month and the
goal is to invest. There's million dollars that we have
allocated towards this and we'll be working with the
program administrator. And the goal is to be able to offer
a large-scale grants. So we have free technical assistance
for folks, we have planning and pre-development grants.
Ideally, now, we're seeing those businesses continue to
grow and expand, to be able to compete for larger scales of
capital. And we know there's a lot of co-ops who are really
interested in, uh, buying buildings and their neighborhood.
And so, this would give them that opportunity to use these
dollars to acquire sites, to do Development, and
Construction and more.
Um and then lastly I'll just end with this before I pass
over to Hannah. So this 15 million dollar investment was
kind of this unique, special Community, wealth building
program. But know that dpd and bacp are investing in worker
cooperatives and employee ownership outside of that 15
million dollar investment. So um, through our community
development grant program as well as our neighborhood
opportunity fund. So we have folks and I'm excited that Kim
is here today to share her testimonial, uh, but shy, fresh
kitchen, is 1 of those organizations. And I'll let Kim
speak more about the work that they do Cosina. Compartida
de traore is cooperative Vistas, which is in Lawndale,
is a shared kitchen of, um, Street vendors. You know, there
was a law that passed that said, that street vendors now
needed to have a kitchen to do their prepared foods. So, a
number of Street vendors came together
And created a Cooperative co-owned, the business got an nof
Grant to do renovation on that building. And now actually
have recently acquired 2 City, vacant Lots next door to
expand it to be a restaurant. Um, so it's a really great
opportunity for folks, to build their wealth, build their
stability, and also build their power. And then lastly
button Productions and the 63rd house which is a, um,
clothing manufacturer. That is mainly women um immigrant
and Refugee women who are the co-owners of that business.
So I'll pass the Hannah to walk through a few slides on
what we're doing to support manufacturing succession
planning and Legacy businesses.
Thank you, first Deputy on woo Zoo R did I get that better?
better? Better clothes. Okay uh we will now hear from
Hannah Jones. You can begin your testimony. Thank you so
much. Um, hi everyone, I am Hannah Jones. Um, I am part of
the Small Business Development Bureau within the department
of Planning and Development. Um, I just want to take a
moment to talk about our Bureau because it's a new Bureau
and I know that a lot of you have probably interacted with
1 of us on the team before. But I really just want to speak
to the um excitement and the passion behind the Small
Business Development Bureau and Department of Planning and
Development. Um,
I know that some people uh, think that a lot of folks at
City Hall are just doing a job but the passion of small
business ownership and Small Business Development, really
lives within the bureau itself. Um, it's headed by a Deputy
Commissioner Mario Connor who has a long history of uh
small business management ownership. Um, I myself have been
working with small businesses at every level, um, since um,
I moved to the city and I moved to the city as soon as I
possibly could, trust me on that 1. But before then I was
working. I was living in an area of our state that saw a
depletion of, um, economy and Manufacturing that really
gutted the community. I grew up in. So this this, the
mission of our Bureau is really passion uh, part of my
passion as well. So I am going to take a moment to talk
about a new initiative that we are currently in the process
of developing um, our manufacturing succession planning,
which plays in really well to our, uh, Community wealth
building efforts. So, um, I think we've heard a lot about
the silver tsunami today and why this, um, this initiative
is important, so um, currently our um, Bureau within the
department of planning and development is um scoping.
Now and needs assessment and a best practice analysis, in
order to establish a program that will assist uh,
manufacturing businesses that do not currently have any
secession planning with, um, providing, um, an opportunity
for um, employ employee ownership of, uh, of that business
with a focus on people of color women veterans, um, to
really put, um, Community wealth back in the hands of our
local residents. So, um, I I I think we're just going to
keep reiterating what we've heard. Um there are a lot of
folks who are in the main
Manufacturing sector who are looking to retire without any
sort of um, uh, secession planning there. Um, and a lot of
manufacturing ownership, um, is predominantly, um, older,
uh, older gentlemen, um, who identify as Caucasian. So we
really want to try and diversify our manufacturing sector
sector as well as build, community wealth. Um, Illinois,
currently. Um, only has, uh, almost almost 1% of
manufacturing firms owned by um, uh, MBE. And um, the
national average is 17%. So we're really trying to grow,
um, grow that, uh, that figure in, um, our city
I also want to take a moment to talk about our, um, Legacy
business initiative. Um, this is a joint venture between,
uh, or excuse me, a partnership between our Small Business
Development Bureau, the department of um, business Affairs
and consumer protection, as well as the dpd's historic
preservation department. So, uh, we really want to, um,
Advocate and retain, um, businesses that have a long
history and, uh, helped us significantly contribute to the
city's, uh, cultural and economic, and social identity. Um,
a few ways we, uh, a few reasons we believe that is
important is because it helps, um, strengthen local
economy, um, build resiliency within Chicago's business
districts, um, preserve and celebrate the city's unique
character, um, Foster pride and also be a tool for
providing educational Promotional and, um, potentially
financial assistance to Legacy businesses. So, currently,
um, we are
looking at doing this in a phased approach, um, the
department of plan development received some funds from the
um, African-American cultural heritage action Fund in order
to, um, begin establishing our Legacy business initiative.
This is something that, uh, several cities across. Um, the
country have done such as San Francisco, San Antonio and
even Evanston just to the north of us. Um, currently we are
connecting a survey of these communities um to um, collect
collect recommendations. Then we will be vetting, those
recommendations and developing an honorific. Uh,
designation for those businesses with branding marketing to
promote um the businesses there uh in Phase 2, we want to
partner with um, philanthropic organizations, nonprofits,
um, to establish a directory. And then moving forward, um,
hopefully developing some strategies and objectives in
order to um support these businesses.
and here, I know, we're, we're getting short on time, but
here is just a couple of, um, grants that our department
has given out, um, to, um, people uh, to businesses with,
um, Cooperative ownership, um, goals and models. Um, so
it's in, I believe you guys have this PowerPoint so I won't
go through all of them but um, you know, old-fashioned
Donuts, um, is currently in the process of transitioning,
um, their business, um, from the father who owns it to the
daughter. Um, but at place is owned by 20 plus residents,
um, in our city, uh, Chicago Market, uh, is, uh, a
Redevelopment of the former Gerber building, um, and we'll
be turned into a grocery store and as an owner, uh,
owner owned cooperative and then our Fillmore Center, um, is
an industrial property that will, um,
Excuse me, uh, conveyed to residents of the neighborhood
through a community benefits trust. So
with that.
Um,
So, I will turn it over to Kimberly with the ship rescue.
Hey everybody. Um, I'm Kimberly. Brit. I am co-owner and
co-founder of shy fresh kitchen here in Chicago, in the
great grand Crossing area. And um, basically we do 3,
that shy fresh kitchen, and first of all, we create jobs
for formerly incarcerated, people who are looking for a job
with not just a livable wage, but a wage that makes sense
sense to be able to sustain yourself out in your community.
The second thing that we do is we create ownership so. Um,
not only do we, um, have employees, we have employees that
are on track to become a owner of shy, fresh kitchen,
depending on, um, the length of time that they are with the
company. And the third thing that we do, um, at shop for is
kitchen, is we do a light training?
Track where you come in as an employee, you have the
opportunity to be a leader coordinator and then um, you
move into ownership, so with those 3 things, as well as
making good fresh food to feed our community. Um, that's
what we do at shop fresh kitchen, right? Now we started off
with 5 employees. I don't know if I said this already, but
I'm a person with a lived experience, as well as the other
4 owners of shop fresh kitchen. Um, we started shop fresh
kitchen because we experienced several barriers, um, coming
from being incarcerated, trying to find a decent job and
just do the right thing to reactivate ourselves back to our
community and share fresh kitchen was a very unique,
special way of doing it. We love the, uh, worker Co-op
model that we have going on, where we able to not only
share our knowledge and Leadership skills, but we are also,
uh,
Able to give people uh, the notion that they can own
something like not just clothes and things like that, but
an actual building. Um,
And what? That's that's basically it.
Is that good at all? Okay, that's awesome. Thank you, thank
you for your presentation. Um ladies
Are there any questions from Alder men and women, man of
hopping worth followed by Mike Rodriguez.
Thank you all for your presentation and it's uh it's just a
a very affirming to hear your words. Um, uh, I represent
Edgewater so to hear about the, um, Chicago Market is very
exciting and, um,
Thank you for your work, over the last 4 years to to bring
us to the states. I also wanted to say congratulations to
Kim and thank you for being here. Um really your story is
incredibly inspiring and would like to just keep up with
your work um and hope that you succeed and everything that
you do. Thank you.
Thank you, Alderman Rodriguez. Thank you, Mr. Chair, once
again, thank you for putting this together. This has been
excellent. Um, Kim Britt. What's the cross streets of Sha
of of shy, fresh? Kitchen. It's um, located on 71st and
King Drive. Okay. Okay, okay. I feel like I've been by
there a couple times. I I think your presentation was
marvelous and what you're doing is amazing, um, you know,
Mr. Chair. I happen to know New Era. Very, very well. I've
been to ribbon cutting or 2 there. Know the, um, the the
leadership there, many of the worker owners there
Um, I think this this model.
Is so applicable to so many different populations. You know
can be just as as spoken so eloquently about the returning
citizen population. Um but also this is a a worker
environment that steeped in a lot of Latin American um,
economies and um,
You know, the sense that I get that Walking, the Floor of
New Era, the Chicago worker collaborative. Um, model, you
know, is 1 of immense Pride.
Of those owner workers. And it's very it's very eloquently
stated by Kim Brit here. The fact that folks know that
their um, work their sweats, their labor is actually not
only leading to a minimum wage a living wage it's leading
to wealth accumulation, right? And it's someone said it
earlier, we shouldn't be thinking about people getting
jobs, we should be thinking about careers. We should be
thinking about this wealth, accumulation of all people's
and that's why this model is so important. How you can
leverage it in certain populations, the migrant population,
uh that may be undocumented that looking at uh paying taxes
and doing things the right way, right? I think this is an
excellent Example. The Returning citizen population that
many times is
Not looked at for its real value, uh, and what you can give
to society. So this is, I'm just want to underscore on
other space in which this business model really works. It
really works to put Working Class People not just in the
jobs, but in wealth creation. So thank you so much for, for
bringing this forward. Uh, chairman, you know, I'm jealous
that I didn't think of it in the workforce committee, uh,
but kudos to this endeavor and I'm happy to be here in
support.
Are there any other questions from the members know?
Well, um, I had to step out. Uh, I had another pending item
in transportation, but I've been working closely with uh,
the the panelists around putting forward legislation on
this and taking a look at some of the challenges that are
facing some of these firms that are um, taking advantage of
a in a good way. Minority women veteran business
enterprises and how do we position them to continue that
success um after the ownership has changed, um, it's
important that we keep these businesses, in our
communities, uh, it's important that we allow people, the
ability to grow, um, wealth and be able to pass it on to
their families. And I think that this is a perfect
opportunity and a perfect vehicle to do that. Uh, and it's
important that the city of Chicago, take the lead on this.
I know that Pittsburgh and other cities are doing this in
other states aren't doing this. But I think that we have an
opportunity to really, um, showcase what the city has to
offer.
It really take the lead on this and I'm looking forward to
working with my colleagues in this committee and the city
council to put forward legislation that really positions us
as a leader in this space. Um, so I want to thank the
panelists, all of you for your presentation today. I want
to thank the members of the committee for the great
questions that you posed to the panelists uh and stay
tuned. We still have some legislation that will be talking
about and looking forward to get everybody's support on it.
Um, being that there's no further business may have a
motion to adjourn by the same roll call vote. That was
applied to determine corn. All women Lenny, met hoppenworth
so moves, hearing no, objections are ordered the meeting
and the committee on economic capital and Technology
development is adjourned. Thank you, everyone.