Committee on Economic, Capital and Technology Development meeting, September 11, 2024
- When: Wed, Sep 11, 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 Economic, Capital and Technology Development
- Video: https://vimeo.com/showcase/8928495/video/1008183847
- Transcript: full text (21,872 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 Economic, Capital and Technology Development met on September 11, 2024, heard eleven public commenters largely focused on the proposed data residency ordinance, approved its July 2024 report, and observed a moment of silence for September 11. The committee deferred agenda item 11 at the applicant's request and recommended approval of several special service area appointments, an amendment to Chapter 2-45 extending redevelopment agreement requirements to the new Class 7D grocery incentive, Class 6B incentives for properties at 1474 West Hubbard and 2512 West 24th Street, and the first Class 7D incentive for a Pete's Fresh Market at 3250 West 87th Street, with Alderperson Raymond A. Lopez recorded as voting no on the 7D item over the lack of M/WBE participation. The committee then debated a substitute ordinance creating an earned procurement credit for vendors that store city data in Chicago and Illinois; DTI and Procurement said they were neutral, members raised questions about revenue, cybersecurity, environmental impacts and rulemaking, and the substitute was recommended for passage with Alderperson Daniel La Spata recorded as voting no.
Topics: data residency ordinance, data centers, property tax incentives, Class 7D grocery incentive, M/WBE participation, special service areas, city budget deficit, environmental impact, public comment
Agenda items discussed
- 15:42 Rule 59 remote participation requests: passed
- 16:33 Public comment: discussed
- 47:38 Approval of the July 2024 monthly report: passed
- 48:48 Agenda item 11 (deferred at applicant's request): deferred
- 49:04 Appointments and reappointments to special service area commissions (items 1-8): passed
- 51:37 Amendment to Municipal Code Chapter 2-45 regarding property tax incentive redevelopment agreements and reporting (substitute): passed
- 1:00:03 Class 6B tax incentive for 1474 West Hubbard Street (1st Ward): passed
- 1:07:21 Class 6B tax incentive for 2512 West 24th Place (25th Ward): passed
- 1:11:23 Class 7D tax incentive for 3250 West 87th Street (18th Ward): passed
- 1:25:46 Data residency ordinance amending Chapter 2-68 regarding processing and storage of city data (substitute): passed
Alderpersons who spoke
- Gilbert Villegas (chair): Said he was disappointed that Pete's Fresh Market did not include diverse contractors in its rehabilitation while seeking incentives and asked that the concern be taken back to management. (1:23:57); Introduced the data residency ordinance as a new revenue idea amid a nearly $1 billion deficit, saying less than 15% of $3 billion in Illinois data center activity has come to Chicago. (1:26:24); Said the substitute reflects compromise after hearing colleagues' concerns about energy and the share of data stored in the city. (1:27:58)
- Daniel La Spata (alderperson): Asked how the Class 7D program functions. (55:36); Said the Hubbard Street project shows industry and manufacturing can succeed in the Kinzie Industrial Corridor and asked colleagues to support it. (1:06:05); Asked how the city data definition would apply in practice to a recent planning data contract and to a typical software-as-a-service contract. (1:39:58)
- Raymond A. Lopez (alderperson): Requested a moment of silence for the lives lost on September 11, 2001. (48:08); Asked how many incentive recipients have reported and whether any have failed to meet reporting obligations. (56:20); Asked whether a reverter clause could be built into incentive resolutions for failure to comply, and requested a legal opinion through the chair. (57:46)
- Nicole T. Lee (alderperson): Asked whether bidders would know at the start of a contract how they will be evaluated for the earned credit. (1:33:04); Asked whether the ordinance still requires all data to be stored locally and whether that is realistic. (1:36:24); Asked for the size and scale of city contracts that include data storage, noting the credit applies to the whole contract value. (1:38:15)
- William E. Hall (alderperson): Asked about energy and service impacts on residents living near data centers and whether studies have been done. (1:57:34); Asked how many construction and permanent jobs a data center would create. (1:59:01); Asked whether there are plans to connect students near data center sites to STEM career pathways, and said he looks forward to the plan evolving. (2:00:11)
- Leni Manaa-Hoppenworth (alderperson): Said many groups had contacted her with concerns about the ordinance and many appeared to have been addressed. (2:02:34); Asked how much land would need to be devoted to data centers for the city to benefit. (2:03:21); Said she had held the ordinance previously over environmental concerns and that Edgewater lacks land for a data center. (2:06:22)
- Scott Waguespack (alderperson): Asked how many data centers there are in Chicago proper. (2:12:40); Noted large state incentives to data centers, including $468 million in sales tax incentives, and asked whether the ordinance interacts with other incentives. (2:13:50)
- Brendan Reilly (alderperson): Said as a co-sponsor that attracting data centers should also be addressed through zoning and land use planning in manufacturing districts. (2:18:41); Asked why the departments testified as neutral rather than as proponents, and whether the administration has a position. (2:20:45); Asked how much money is involved in city data storage contracts annually. (2:23:26)
Exchanges between members
- 59:16 Lopez asked the chair to obtain a legal opinion on including a reverter clause in incentive resolutions.
- 1:23:57 Following Lopez's objection, the chair said the body was concerned about the lack of diverse contractor participation on the 7D project.
- 1:32:51 Lee thanked the chair before asking questions about the earned credit.
- 1:39:45 Lee asked that contract value figures be provided through the chair.
- 1:48:13 La Spata told the chair he appreciated his transparency and engagement while stating his remaining concerns.
- 1:49:08 Lopez noted that the alderperson of the 1st Ward had already asked his question about taxation.
- 1:51:25 The chair responded to Lopez's question on data monetization, agreeing the city is behind.
- 1:52:55 Lopez clarified to the chair that his comment was not a criticism of the CIO or department.
- 1:59:24 The chair answered Hall's question about construction and permanent data center jobs.
- 2:01:54 The chair thanked Hall after his questions.
- 2:02:34 Manaa-Hoppenworth thanked the chair for his work and collaboration on the ordinance.
- 2:03:34 The chair answered Manaa-Hoppenworth's land question, saying local zoning gives alderpersons a say over siting.
- 2:08:39 The chair read a note from the chief sustainability officer in response to Manaa-Hoppenworth's concern about her absence.
- 2:10:33 The chair answered Manaa-Hoppenworth's question about the working group and existing sustainability requirements.
- 2:12:09 Manaa-Hoppenworth thanked the chair for his commitment to trailer legislation.
- 2:12:40 Waguespack asked the chair how many data centers are in Chicago.
- 2:14:42 The chair responded to Waguespack that state incentives have generated about $3 billion in data center investment.
- 2:16:44 Lee told the chair she would support the ordinance with the understanding it would continue to be reviewed.
- 2:17:44 The chair agreed with Lee that they need to start somewhere and committed to monitoring the ordinance.
- 2:22:46 Reilly asked the chair whether the administration has taken an official position on the ordinance.