Committee on Finance meeting, October 2, 2024
- When: Wed, Oct 2, 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/1014940209
- Transcript: full text (44,334 words, automatic 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 opened with a combined TEFRA public hearing on bonds for the Avenue Southwest and Sacred Apartments affordable housing projects, followed by public comment that focused largely on the proposed Pilsen TIF expansion (not on the agenda for a vote) and TIF funding for three North Lawndale STEAM schools. The committee recommended passage of three Department of Law settlements, with Alderperson Nicholas Sposato and Alderperson Raymond A. Lopez recorded as no votes on one settlement each. After extended questioning of the Department of Finance, the committee recommended passage of a wastewater bond refunding and a general obligation and sales tax securitization refunding authorization of up to $1.5 billion; a motion to table Alderperson Raymond A. Lopez amendment raising the minimum bond sale price from 85% to 90% passed 13 to 12 after a contested roll call. The committee also recommended passage of TIF agreements for three CPS STEAM schools, Bandwidth, Dank Haus, Timeline Theater, Double Door, the Ramova Theater amendment, a volume cap ceding ordinance, the Avenue Southwest and Sacred Apartments housing projects, and the 79 West Monroe office-to-residential conversion. Small claims orders and a tag day permit were placed on the omnibus.
Topics: TEFRA bond hearing, legal settlements, bond refinancing, budget deficit, TIF funding for schools, cultural venue TIF agreements, affordable housing, volume cap, Loop office conversion, Pilsen TIF
Agenda items discussed
- 16:27 Combined TEFRA public hearing on Avenue Southwest and Sacred Apartments multifamily housing bonds: discussed
- 49:22 Public comment: discussed
- 1:19:51 Approval of September 2024 monthly Rule 45 report: passed
- 1:20:59 Settlement: Bass v. Deur et al., $332,500: passed
- 1:27:33 Settlement: Wade v. Doherty and City of Chicago, $445,000: passed
- 1:30:13 Settlement: Banks v. City of Chicago and Tinker, $1.75 million: passed
- 1:41:14 Second lien wastewater transmission revenue refunding bonds, Series 2024B: passed
- 1:41:26 General obligation and sales tax securitization corporation refunding bonds, Series 2024 (substitute): passed
- 2:31:28 Motion to table amendment raising minimum bond sale price from 85% to 90%: passed
- 2:55:52 IGA with Chicago Board of Education for TIF funds at Johnson, Collins Academy and Chalmers STEAM schools: passed
- 3:16:34 Redevelopment agreement with Bandwidth Music at 134 S. California Ave.: passed
- 3:22:23 Replacement redevelopment agreement with Dank Haus German American Cultural Center: passed
- 3:30:17 Redevelopment agreement with Timeline Theater Company at 5033-5035 N. Broadway: passed
- 3:36:23 Redevelopment agreement with Double Door for the Wilson Theater building: passed
- 3:51:27 Second amendment to Ramova Theater redevelopment agreement (substitute): passed
- 4:05:00 Ordinance authorizing ceding of tax-exempt volume cap to IHDA and CHA (substitute): passed
- 4:31:36 Avenue Southwest LLC affordable housing redevelopment agreement and bonds: passed
- 4:45:10 Sacred Apartments affordable housing redevelopment agreement and bonds: passed
- 4:52:21 TIF redevelopment agreement for 79 West Monroe office-to-residential conversion: passed
- 5:19:04 Small claims orders and Nature Conservancy tag day permit
Alderpersons who spoke
- Pat Dowell (chair): Said the wastewater materials were sent Monday and the substitute ordinance changes were made in response to member feedback. (1:59:48); Said the refinancing should be acted on next week to give the department time to go to market before January. (2:17:59); Asked Alderperson Raymond A. Lopez to let the CFO finish her answer. (2:23:35)
- Nicholas Sposato (alderperson): Asked to confirm the plaintiff was held in the hospital for two days and said he would vote no on the settlement. (1:26:42)
- Raymond A. Lopez (alderperson): Asked how fault would be apportioned between the city and the fleeing driver and whether the settlement reflects that. (1:33:32); Asked what the law department's policy is for recovering costs from a co-defendant, such as placing liens. (1:36:47); Said he would vote no because the city makes no effort to recoup costs from other responsible parties. (1:38:02)
- William Conway (alderperson): Said the case shows the city's liability exposure in police chases and urged looking at technology, and supported the settlement. (1:39:34); Commended the removal of operating-expense language from the bond ordinance and asked why savings figures on page seven differed. (2:03:19); Asked where savings come from in tendering previously issued sales tax securitization bonds. (2:04:30)
- Scott Waguespack (alderperson): Said members received a significantly changed document only that morning and asked for detail supporting projected savings above 10%. (1:52:26); Asked why the city pays underwriters about $5 per bond when other cities and the state pay around $2 to $3.25. (1:56:53); Said the short pricing window means underwriters must price aggressively regardless of fee level. (1:58:37)
- Gilbert Villegas (alderperson): Asked to confirm the expected tender size within the additional $500 million authorization. (2:11:30); Asked which specific debt issuances would be retired and their effective interest cost. (2:12:19); Requested a list of outstanding bonds approaching their 10-year call period. (2:13:38)
- Matthew J. O'Shea (alderperson): Raised concern about the city's credit rating and whether the $1.5 billion authorization adds risk. (2:15:03); Said he still had questions and asked whether the item could be moved to the next meeting. (2:17:37)
- Daniel La Spata (alderperson): Explained his motion to table Alderperson Raymond A. Lopez amendment so the committee could vote on the bond ordinance without amendment. (2:37:41); Supported the STEAM school projects, saying students should not be deprived over the pension dispute, and asked about the living museum concept. (3:10:35); Said preserving the Double Door sign reflects the theater's history and matters to First Ward residents. (3:43:35)
- David H. Moore (alderperson): Said he wanted to hear from the CFO on the financial impact of the proposed amendment before voting. (2:32:13); Confirmed the transaction is only a refinancing and asked whether expected Federal Reserve rate cuts would affect timing. (2:42:00)
- Gregory I. Mitchell (alderperson): Said Alderperson Raymond A. Lopez proposal merited further discussion before members were asked to vote on tabling it. (2:38:20)
- Brian Hopkins (alderperson): Asked when the next opportunity for a rating agency status change would be. (2:44:58); Asked what budget actions could potentially earn a rating upgrade. (2:46:05)
- Monique L. Scott (alderperson): Said her community has been disinvested for decades and that updating the three existing schools will help revitalize it, and asked colleagues to support. (3:12:43)
- Andre Vasquez Jr. (alderperson): Supported the Dank Haus agreement, citing its classes and cultural programming before the shared TIF expires. (3:28:40); Supported the Double Door project, citing his personal history with the venue and its youth program. (3:42:39)
- Anthony Beale (alderperson): Asked the 40th Ward alderperson to confirm on the record that the Dank Haus project is in the best interest of his ward. (3:29:37)
- Nicole T. Lee (alderperson): Supported the Ramova amendment, describing the developers' persistence and new businesses opening along Halsted. (4:00:14); Said a delayed state grant forced the project to draw on its SBA loan early, adding to its financial strain. (4:03:51)
- Jason C. Ervin (alderperson): Asked why ceding volume cap to CHA for a prior project took so long. (4:18:21); Asked how MBE requirements would apply when CHA or IHDA administers projects using ceded cap. (4:19:47); Expressed concern about the city losing control over projects after ceding volume cap. (4:23:47)
Exchanges between members
- 1:59:43 Waguespack asked the chair whether to hold his remaining questions so others could speak.
- 1:59:48 Dowell told Waguespack the wastewater materials were sent Monday and the substitute was changed the day before.
- 2:03:11 Dowell offered to return to Waguespack for further questions.
- 2:03:19 Conway commended the chair for working through concerns about operating-expense language.
- 2:17:37 O'Shea asked the chair whether the bond item could be moved to the next meeting.
- 2:17:59 Dowell replied that the committee should act so the department has time to go to market.
- 2:18:45 Lopez echoed Conway in thanking staff for removing operating-expense language.
- 2:23:35 Dowell asked Lopez to let the CFO finish answering.
- 2:32:13 Moore said he was not saying Lopez was wrong but wanted the CFO's view on the amendment's impact.
- 2:37:25 Dowell asked Lopez to explain the tabling motion.
- 2:37:31 Lopez replied that the tabling motion was made by another colleague, not him.
- 2:37:36 Dowell asked La Spata to explain what he was moving to table.
- 2:37:41 La Spata explained he moved to table Lopez's amendment so the full ordinance could be voted on unamended.
- 2:38:17 Mitchell said Lopez's proposal was worth further discussion before a vote.
- 2:44:58 Hopkins picked up O'Shea's line of questioning on rating agencies.
- 3:06:52 Dowell told Lopez the CPS pension question was not up for discussion at this meeting.
- 3:06:56 Lopez objected to being cut off and rephrased his question.
- 3:29:32 Beale asked Vasquez to confirm the Dank Haus project was in the best interest of his ward.
- 3:29:46 Vasquez answered that it was in the interest of his ward and the city.
- 3:43:29 Dowell asked La Spata whether he wished to comment on the Double Door project.