Committee on Finance meeting, June 10, 2024
- When: Mon, Jun 10, 2024, 10:00 AM (Chicago time)
- Where: City Council Chamber, 2nd Floor, City Hall, 121 North LaSalle Street - Chicago, IL 60602
- Status: Scheduled & Published
- Committee: Committee on Finance
- Video: https://vimeo.com/manage/videos/954895166
- Transcript: full text (37,779 words, official captions)
Meeting notes
AI-written from the transcript. Speakers are inferred from cues in the recording, so treat names as estimates and check the video at the linked time.
The Committee on Finance held two federally required TEFRA public hearings, one on a plan of finance for up to $3 billion in O'Hare airport revenue and passenger facility charge bonds plus up to $1 billion in loan and commercial paper notes, and one on up to $25 million in multifamily housing revenue bonds for the United Yards 1A project, followed by a public comment period. On its regular agenda the committee recommended passage of O'Hare and water revenue bond ordinances, Tax Increment Financing agreements with the Chicago Park District for Moran, Union, Skinner, Wells and Revere parks, housing revenue bond inducements for 208 S. LaSalle, 111 W. Monroe and a church conversion at 2120 N. Mozart, an amendment to the United Yards ordinance, and an amendment allowing the city to cede bond volume cap to the Illinois Housing Development Authority. Members questioned bond maturities, underwriter and bond counsel diversity, and Park District funding priorities; Alderperson Raymond A. Lopez recused himself from the O'Hare vote. The committee also recommended four legal settlements, including $1.25 million for a falling light pole case, $2 million in a fatal police shooting case, $5.8 million for racial harassment claims by Department of Water Management employees, and $50 million for four reversed-conviction lawsuits, with some members recorded as voting no on the first two.
Topics: O'Hare airport bonds, water revenue bonds, TEFRA hearings, Park District TIF funding, LaSalle Street housing conversions, affordable housing bonds, bond volume cap, legal settlements, contracting diversity, public comment
Agenda items discussed
- 26:27 TEFRA hearing on O'Hare airport revenue bonds, PFC bonds, loan notes and commercial paper notes: discussed
- 53:42 TEFRA hearing on multifamily housing revenue bonds for United Yards 1A project: discussed
- 1:17:57 Public comment period: discussed
- 1:34:57 Monthly Rule 45 report: passed
- 1:35:54 Item 1: O'Hare general airport senior lien revenue bonds and PFC revenue bonds series 2024 (substitute): passed
- 1:36:31 Item 2: Second lien water revenue bonds series 2024 (substitute): passed
- 2:16:29 Item 3: Intergovernmental agreement with Chicago Park District for TIF funds for new fieldhouse at Moran Park, 16th Ward: passed
- 2:29:23 Item 4: Intergovernmental agreement with Chicago Park District for TIF funds for improvements at Union Park, 27th Ward: passed
- 2:36:13 Item 5: Intergovernmental agreement with Chicago Park District for TIF funds for garden and playground improvements at Skinner Park, 27th Ward: passed
- 2:42:10 Item 6: Intergovernmental agreement with Chicago Park District for TIF funds for site improvements at Wells Park, 47th Ward: passed
- 2:46:04 Item 7: Second amendment to intergovernmental agreement for TIF funds at Revere Park, 47th Ward: passed
- 2:48:54 Item 8: Multifamily housing revenue bonds for 208 S. LaSalle mixed-income housing conversion, 42nd Ward: passed
- 3:05:38 Item 9: Multifamily housing revenue bonds for 111 W. Monroe mixed-income housing conversion, 34th Ward: passed
- 3:13:25 Item 10: Multifamily housing revenue bonds for Humboldt Park United Methodist Church redevelopment at 2120 N. Mozart, 1st Ward: passed
- 3:25:38 Item 11: Amendment to United Yards project ordinance, 20th Ward: passed
- 3:33:25 Item 12: Amendment to 2023 ordinance ceding private activity bond volume cap to the Illinois Housing Development Authority: passed
- 3:43:09 Items 13-15: Small claims payments, denials, and report of verdicts, judgments and settlements
- 3:44:21 Item 16a: Settlement in Isabella Keating v. City of Chicago ($1.25 million): passed
- 4:04:56 Item 16b: Settlement in Dorothy Holmes, administrator of the estate of Ronald Johnson III v. Jorge Hernandez ($2 million): passed
- 4:13:44 Item 16c: Global settlement of four Department of Water Management racial harassment and discrimination lawsuits ($5.8 million): passed
- 4:27:21 Item 16d: Settlement of four reversed-conviction lawsuits against James Cassidy et al. ($50 million): passed
Alderpersons who spoke
- Pat Dowell (chair): Described the plan of finance for up to $3 billion in O'Hare airport revenue and PFC bonds and up to $1 billion in loan and commercial paper notes. (27:50); Noted that an airport diversity working group exists and that an updated diversity report requested by members will be provided. (1:55:35); Said the 40-year maximum maturity gives the finance department flexibility in structuring the bonds. (2:14:25)
- Walter R. Burnett (alderperson): Called minority participation in the bond deals decent and asked whether O'Hare construction work had already been bid out. (1:45:29); Asked whether future O'Hare construction contracts will come before the council, referencing a past contractor change. (1:47:33); Confirmed that the airport bonds will be repaid with airport revenues. (1:56:05)
- Brendan Reilly (alderperson): Described the 208 S. LaSalle project as delivering 226 residential units, 68 of them affordable, in vacant upper floors of a landmark building, and asked colleagues to support it. (1:49:24)
- William Conway (alderperson): Asked about the $1 billion in notes described in the public hearing notice and credited the refinancing savings from interest rate changes. (1:51:30); Said Union Park and Skinner Park are heavily used by 34th Ward residents and urged colleagues to support both improvements. (2:32:15); Said the 111 W. Monroe conversion could supply workforce housing tied to new downtown jobs and asked for support. (3:12:34)
- Matthew J. O'Shea (alderperson): Clarified that additional airport work will come before the Aviation committee and described aviation job fairs and minority representation at O'Hare and Midway. (1:52:41); Said the bonds are needed to modernize O'Hare, keep it competitive and create jobs over the next 10 years. (1:54:38)
- David H. Moore (alderperson): Asked how bond counsel is selected and requested the racial and ethnic makeup of the firms' partners and senior staff. (1:56:22); Asked how much would remain in the Englewood TIF after the Moran Park allocation. (2:21:17); Said the Park District has not moved on a new Ogden Park fieldhouse despite his securing $7 million, while stating he would support his colleague's Moran Park project. (2:22:07)
- Daniel La Spata (alderperson): Asked how the city achieves significant refinancing savings while interest rates are high. (2:03:00); Noted that the Park District publishes its capital improvement plan and a spreadsheet of capital projects from 2011 to 2024 online. (2:33:59); Asked which bond program the LaSalle housing inducements draw from and the size of the city's annual tax-exempt allocation. (3:01:22)
- Raymond A. Lopez (alderperson): Asked how often lead underwriters like Wells Fargo and JP Morgan are rotated and said having them hold about half of the business while minority firms are in single digits is a problem. (2:06:26); Said the city needs to invest in its airports to keep pace with other countries. (2:08:04); Questioned why the ordinance allows bonds to mature in 40 years when staff described 20- or 30-year terms. (2:10:57)
- Stephanie D. Coleman (alderperson): Asked colleagues to support the Moran Park fieldhouse, noting the existing building lacks Wi-Fi and the project complements the Englewood nature trail. (2:24:25)
- Scott Waguespack (alderperson): Asked whether park-wide lighting improvements at Wells Park were part of the project. (2:45:14); Asked when the 2120 N. Mozart project first applied for funding. (3:22:22); Asked about the four pending light pole cases, their claims and attorneys, and requested a history of light pole lawsuits over 20 years. (3:59:44)
- Nicholas Sposato (alderperson): Asked whether there is a time frame after a reported pole problem within which the city becomes liable. (3:46:58); Confirmed that the decedent's DNA was found on the gun and asked to be recorded as no on the settlement. (4:12:51); Asked whether the 1995 murders are being reinvestigated. (4:40:45)
- Jason C. Ervin (alderperson): Asked whether there is a plan to fix light poles flagged in a 2017-2018 survey, noting this was the second or third such case. (3:48:26); Raised concern that the city disagreed with its contractor about 90 flagged poles and questioned whether the settlement amount was high relative to medical costs. (3:52:49)
Exchanges between members
- 1:44:10 The chair asked Alderperson Walter R. Burnett to let the presentation finish before his question.
- 1:52:41 Alderperson Matthew J. O'Shea offered clarification to Alderperson Walter R. Burnett that future airport work will come before the Aviation committee.
- 2:06:29 Alderperson Raymond A. Lopez followed up on Alderperson David H. Moore question about diversifying the city's bond firms.
- 2:08:04 Alderperson Raymond A. Lopez echoed the Aviation chair's point that the city must invest in its airports.
- 2:12:06 The chair responded to Alderperson Raymond A. Lopez that the 40-year maturity provides flexibility and said his point was made.
- 2:21:17 Alderperson David H. Moore thanked Alderperson Stephanie D. Coleman for her work on the Moran Park project and said he would support it.
- 2:24:30 Alderperson Stephanie D. Coleman said she shares Alderperson David H. Moore sentiments about investment in Ogden Park.
- 2:28:16 The chair told Alderperson Raymond A. Lopez he raised an excellent point and committed to a Park District subject matter hearing.
- 2:33:01 Alderperson William Conway thanked Vice Mayor Walter R. Burnett for spearheading the Union Park and Skinner Park improvements.
- 2:33:51 Alderperson Walter R. Burnett thanked Alderperson William Conway.
- 2:33:59 Alderperson Daniel La Spata remarked to Alderperson Walter R. Burnett about the Pitchfork lineup before speaking on the project.
- 2:35:21 The chair told Alderperson Raymond A. Lopez that the Park District capital project list would be emailed to members.
- 2:39:14 Alderperson Walter R. Burnett thanked Alderperson William Conway for sharing the Skinner Park project.
- 3:03:42 The chair asked Alderperson William Conway whether he wanted to add anything on behalf of Alderperson Brendan Reilly project.
- 3:51:13 The chair added information for Alderperson Jason C. Ervin about CDOT's new light pole testing practice.