Committee on Finance meeting, February 10, 2025

• When: Mon, Feb 10, 2025, 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
• Transcript: full text (40,974 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 first held a TEFRA public hearing on up to $10 million in multi-family housing revenue notes for the Humboldt Park United Methodist Church redevelopment, then held its regular meeting. The committee recommended passage of four legal settlements (Kramer, $250,000; Cervantes, $690,000; Pellegrino, $3.5 million; and the estate of Angela Parks, $27 million including $7 million from insurers), while the settlement involving the estate of Dexter Reed was held in committee. After lengthy questioning about the city's debt, credit downgrade, federal funding threats, project lists and broad bond language, the committee recommended an $830 million general obligation bond substitute ordinance for capital projects; two amendments offered by Alderperson Raymond A. Lopez were tabled on roll call votes, and several members were recorded as voting no. The committee also recommended the municipal depository designations for 2025, a $14 million TIF agreement for the Oak and Larrabee mixed-income development, financing for the Humboldt Park church housing conversion after debate over its per-unit cost, $15 million in TIF for a Franciscan Outreach non-congregate shelter, and a contract authorization for the Haven on Lincoln, and placed small claims items on the omnibus.

Topics: legal settlements, general obligation bonds, capital improvement plan, aldermanic menu, affordable housing costs, TIF agreements, homeless shelters, municipal depositories, lead service lines, credit rating

Agenda items discussed

• 13:39 TEFRA public hearing on multi-family housing revenue notes for the Humboldt Park United Methodist Church redevelopment project: discussed
• 45:19 January 2025 Rule 45 report: passed
• 45:43 Report of cases in which verdicts, judgments or settlements were entered in January 2025: passed
• 46:24 Settlement order: Kramer v. City of Chicago ($250,000): passed
• 54:14 Settlement order: Cervantes v. City of Chicago ($690,000 plus pension contributions): passed
• 1:01:54 Settlement order: Banks, administrator of the estate of Dexter Reed, v. City of Chicago: held
• 1:02:05 Settlement order: Pellegrino v. City of Chicago ($3.5 million): passed
• 1:14:23 Settlement order: estate of Angela Parks v. City of Chicago ($27 million, $20 million from the city): passed
• 1:24:51 Ordinance designating municipal depositories for the City and Board of Education for fiscal year 2025: passed
• 1:27:41 Substitute ordinance authorizing up to $830 million in general obligation bonds for capital projects: passed
• 1:59:06 Lopez amendment to raise the minimum bond sale price from 85% to 92.5% of principal: failed
• 2:17:55 Lopez amendment to remove loans and grants to individuals, nonprofits and institutions from the bond ordinance recital: failed
• 3:43:45 TIF redevelopment agreement with Oak Larrabee LLC for a mixed-income development at 955 N. Larrabee St. ($14 million): passed
• 4:03:10 Substitute ordinance authorizing city loan and financial assistance for the Humboldt Park United Methodist Church housing redevelopment, 2120-28 N. Mozart St.: passed
• 4:32:56 TIF redevelopment agreement with Franciscan Outreach for a non-congregate shelter on West 21st Street ($15 million) and Western/Ogden TIF amendment: passed
• 4:46:48 Ordinance authorizing TIF-funded rehabilitation of the former Diplomat Motel for the Haven on Lincoln, 5230 N. Lincoln Ave.: passed
• 4:54:37 Orders authorizing and denying payment of small claims, and a charitable solicitation permit: passed

Alderpersons who spoke

• Pat Dowell (chair): Read the notice and terms of the TEFRA hearing, noting the notes would not be a general obligation of the city. (16:12); Responded to Alderperson Gilbert Villegas that a calendar is set and his committee has work ahead on capital bonds. (2:40:26); Said the Law Department has been open to updating antiquated bond ordinance language and could be asked to review it further. (3:42:14)
• William Conway (alderperson): Said he did not see maliciousness by the officers and would vote no on the Kramer settlement. (53:22); Asked how federal threats to cut funding to Chicago should affect thinking about the bond offering. (1:44:06); Asked whether the bond ordinance's tax levy provision amounts to a property tax increase. (1:47:55)
• Daniel La Spata (alderperson): Asked how many medical denials the fire department makes yearly and whether policy changes could prevent similar lawsuits. (1:00:40); Thanked departments for MBE, WBE and DBE commitment information and asked that ADA ramp replacements be funded where needed. (2:40:42); Said 3,078 open hazardous sidewalk requests could lead to future settlements and asked about the timeline to address them. (2:42:50)
• Nicholas Sposato (alderperson): Said he supports the tree settlement but asked when an incident is considered an act of nature and what the 311 call reported. (1:05:43); Said the city pays whether or not police pursue, and asked the crash speed and how the settlement is divided among the children. (1:21:03)
• Raymond A. Lopez (alderperson): Asked how many recent settlements involved falling trees or unanswered service requests and said forestry responded quickly in this case. (1:08:55); Said the branch likely fell due to unusual wind rather than city neglect and said he would vote no. (1:12:49); Moved to raise the minimum bond sale price from 85% to 92.5% of principal, saying the discount amounts to high fees. (1:58:43)
• Jason C. Ervin (alderperson): Proposed that Alderperson Raymond A. Lopez restriction on nonprofit grants apply only to the 15th Ward. (2:18:35); Described the bond as a routine item consistent with past years and asked colleagues to pass it. (3:11:19); Thanked Alderperson Byron Sigcho-López for accepting Franciscan Outreach's move into his ward. (4:44:25)
• Walter R. Burnett (alderperson): Asked whether African Americans are on the underwriting teams and share in fees, requesting team details from each firm. (1:39:42); Asked why bond funds are needed for lead service lines if federal money is available. (1:42:12); Supported the Oak and Larrabee development, citing its mixed-income housing, resident stake through the local advisory council CDC and partnership with an African American contractor. (3:59:52)
• Scott Waguespack (alderperson): Asked whether any of the bond could be used for the housing and economic development bond projects. (2:21:28); Asked whether the funding would address remaining ADA compliance issues. (2:24:39); Asked whether sister agencies have submitted budget requests related to the bond. (2:26:13)
• Gilbert Villegas (alderperson): Asked about outstanding settlement liabilities and whether insurers might drop the city or raise the threshold. (1:23:44); Asked what the $33 million in menu support covers. (2:30:38); Said $100 million a year cannot replace roughly 380,000 lead service lines in time and requested a funding plan. (2:32:21)
• Nicole T. Lee (alderperson): Asked whether Asian American firms participate in the bond work. (2:49:49); Asked why the bond amount stayed the same after eligible uses were removed in the substitute. (2:51:14); Asked whether another bond will be needed in 2026 and why this one covers only one year. (2:52:10)
• Jeanette B. Taylor (alderperson): Requested data on service requests and repair times for the smart lighting program. (2:59:23)
• Brian Hopkins (alderperson): Asked which bridges are funded by the bond and whether they are new additions to the capital plan. (3:08:26)
• Derrick G. Curtis (alderperson): Asked whether the bond includes repaving old WPA streets. (3:10:50)
• Andre Vasquez Jr. (alderperson): Said even routine items deserve scrutiny given public concerns and asked for examples of grants to individuals and nonprofits. (3:13:06); Requested five years of data on city funds going to CPS and the Park District as CPS moves to an elected board. (3:15:40); Asked CDOT for guidelines on how many surveys and estimates wards should request. (3:18:49)
• Brendan Reilly (alderperson): Said rating agencies faulted one-time budget fixes rather than the lack of a property tax increase. (3:24:03); Said routine practices contribute to the city's budget problems and supported colleagues' questions. (3:25:04); Asked that boilerplate bond language on grants to individuals and nonprofits be tightened. (3:25:52)
• Michael D. Rodriguez (alderperson): Praised the Oak and Larrabee project and asked about right-to-return residents. (4:01:52)
• Byron Sigcho-López (alderperson): Supported the church housing project and committed to work in the Housing Committee on reducing affordable housing costs. (4:24:13); Thanked the department and Franciscan Outreach for the community process and urged support for the shelter. (4:45:14)
• Matthew J. O'Shea (alderperson): Praised Franciscan Outreach's work providing food and shelter and urged support. (4:43:29)

Exchanges between members

• 2:18:10 Alderperson Michael D. Rodriguez moved to table Alderperson Raymond A. Lopez amendment on the bond recital.
• 2:18:35 Alderperson Jason C. Ervin proposed that Alderperson Raymond A. Lopez restriction apply only to the 15th Ward.
• 2:40:26 The chair responded to Alderperson Gilbert Villegas comments about capital bonds coming through his committee.
• 3:08:29 Alderperson Brian Hopkins thanked Alderperson Nicole T. Lee for asking one of his questions.
• 3:13:06 Alderperson Andre Vasquez Jr. said the item may feel routine to Alderperson Jason C. Ervin but members' concerns warrant questions.
• 3:25:04 Alderperson Brendan Reilly responded to the description of the bond as routine, saying routine practices contribute to budget problems.
• 3:42:14 The chair responded to Alderperson Brendan Reilly that the Law Department is open to modernizing bond language.
• 4:16:19 Alderperson Daniel La Spata answered Alderperson Brendan Reilly question about the project's per-unit cost.
• 4:21:39 Alderperson Brendan Reilly thanked Alderperson Daniel La Spata for his detailed explanation.
• 4:22:25 Alderperson Brendan Reilly agreed with Alderperson Andre Vasquez Jr. point about showing the city's share of costs.
• 4:22:56 Alderperson Brendan Reilly disagreed that union labor explains the higher costs.
• 4:24:19 Alderperson Byron Sigcho-López agreed with Alderperson Daniel La Spata and committed to work on reducing housing costs.
• 4:44:25 Alderperson Jason C. Ervin thanked Alderperson Byron Sigcho-López for allowing Franciscan Outreach to move into his ward.
• 4:45:50 Alderperson Byron Sigcho-López thanked Alderperson Jason C. Ervin for supporting the TIF use.
• 4:45:50 Alderperson Byron Sigcho-López thanked Alderperson Monique L. Scott for her letter of support.

Documents

• Summary
• Agenda
• Notice

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