Committee on Finance meeting, September 16, 2024
- When: Mon, Sep 16, 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/1008606051
- Transcript: full text (27,074 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 met on September 16, 2024, first holding a combined TEFRA public hearing on proposed city debt for the Care Manor and Prairie District Apartments affordable housing projects, during which the room was cleared for several minutes after disruptions. The proposed Pilsen TIF expansion and related items were deferred at the request of the alderpersons of the 11th, 12th and 25th Wards, though most of the public comment period addressed that proposal, with speakers both for and against it. The committee approved its July and August Rule 45 reports and recommended five legal settlements, including $150,000 in McClendon, $2.5 million in Liggins and $11.6 million in Jakes (with Alderperson Emma Mitts recused), and members called for a working group on wrongful conviction liability and risk management. The committee also recommended TIF and other assistance for Care Manor in West Garfield Park, Legends South A3 in Bronzeville, and the Mercy Housing Prairie District buildings, after questions about per-unit costs, as well as an additional $16.4 million in TIF for a new Kells Park fieldhouse; item 7 was held at the Department of Housing's request.
Topics: TEFRA hearing, Pilsen TIF expansion, legal settlements, wrongful convictions, affordable housing financing, per-unit housing costs, Kells Park fieldhouse, public comment
Agenda items discussed
- 14:16 Combined TEFRA public hearing on multifamily housing debt for the Care Manor and Prairie District Apartments projects: discussed
- 12:46 Pilsen TIF Amendment No. 4, expanded project area designation and TIF adoption (items 8-10): deferred
- 54:57 Public comment: discussed
- 1:31:18 Approval of the July and August 2024 Rule 45 reports: passed
- 1:32:58 Settlement: McClendon v. City of Chicago ($150,000): passed
- 1:38:48 Settlement: Han v. City of Chicago and Felicia White: passed
- 1:43:20 Settlement: Wadi v. City of Chicago: passed
- 2:00:05 Settlement: Liggins v. City of Chicago ($2.5 million): passed
- 2:08:55 Settlement: Jakes v. Boudreau ($11.6 million): passed
- 2:19:46 TIF redevelopment agreement and financing for Care Manor affordable housing (28th Ward): passed
- 2:38:02 TIF redevelopment agreement and financing for Legends South A3 mixed-income housing (3rd Ward): passed
- 2:52:37 Multifamily housing revenue bonds and assistance for MHL 2 Prairie District Apartments at 1801 S. Wabash (substitute): passed
- 2:53:32 Financial assistance for MHL 3 Prairie District Apartments at 1800 S. Michigan: passed
- 3:10:29 Agenda item 7 (held at Department of Housing request): held
- 3:22:34 First amendment to intergovernmental agreement with the Chicago Park District for TIF funds for Kells Park fieldhouse (27th Ward): passed
- 3:34:32 Small claims payments and denials, and charitable tag day permits
Alderpersons who spoke
- Pat Dowell (chair): Announced that the Pilsen TIF expansion items would be deferred at the request of the 11th, 12th and 25th Ward alderpersons. (12:46); Noted that 16 people spoke and that the committee received written comments both supporting and opposing the Pilsen TIF amendment. (1:30:00); Said a working group on wrongful conviction risk and the Law Department's risk management role was an appropriate request. (1:51:55)
- Raymond A. Lopez (alderperson): Said recurring Streets and Sanitation vehicle settlements warrant deeper review of department accountability and accident policies. (1:41:14); Questioned the $719,000 per-unit cost of Care Manor and asked for a breakdown by unit size. (2:28:28); Said the city appears to pay far more per unit through nonprofit affordable developers than for-profit construction would cost. (2:30:55)
- Nicholas Sposato (alderperson): Said he asked the Streets and Sanitation commissioner to implement a safe driving plan for the department. (1:42:05)
- Gilbert Villegas (alderperson): Asked about the plaintiff's second arrest and how many Watts-related cases remain, which staff said was 183. (1:48:02); Said potential wrongful conviction liabilities could reach billions of dollars and asked what the city's plan is, raising concern about insurers and outside counsel performance. (1:48:27); Asked the chair to convene a working group on wrongful conviction liability. (1:51:24)
- Daniel La Spata (alderperson): Said members' votes on settlements are informed by confidential briefings and that the plan to reduce misconduct includes the consent decree and the CCPSA. (1:52:25); Praised Care Manor's three-bedroom and 30% AMI units and asked about its low land acquisition cost. (2:27:19); Asked CHA to explain the Faircloth-to-RAD conversion and why vouchers are subsidized at a higher level than public housing units. (2:48:00)
- Andre Vasquez Jr. (alderperson): Called for a working group to examine Law Department practices and CPD tracking of officer credibility to reduce misconduct settlements. (1:54:31); Asked the Department of Housing to explain its requirements that may increase construction costs. (2:31:49); Asked why the Kells Park project grew from $600,000 to $17 million and how fieldhouse costs compare, noting the city's housing needs. (3:27:06)
- Byron Sigcho-López (alderperson): Said implementing the consent decree is the plan to limit future liabilities and urged action on extremist group membership within CPD. (1:56:50)
- William Conway (alderperson): Welcomed risk management discussions and said, as a former prosecutor, the Wadi settlement appeared reasonable given time served. (1:58:02); Asked whether a certificate of innocence was issued in the Liggins case. (2:06:34); Said liability is very hard to fight once a certificate of innocence issues and the Jakes amount was reasonable compared to a prior Boudreau settlement. (2:17:49)
- Jason C. Ervin (alderperson): Asked about the employment and disciplinary status of the officers in the Liggins case. (2:07:29); Said West Garfield Park has had no affordable housing development in 25 years and high per-unit costs reflect disinvestment, and asked for support for Care Manor. (2:34:46)
- Emma Mitts (alderperson): Recused herself under Rule 14 from the Jakes settlement, stating the plaintiff is her nephew. (2:18:56); Supported the Kells Park fieldhouse, saying the area has long had vacant space and needs it. (3:31:09)
- David H. Moore (alderperson): Thanked the chair and developer for persisting with Legends South A3 and asked whether TIF funds the affordable or CHA units. (2:46:15)
- Gregory I. Mitchell (alderperson): Asked the AMI for the Prairie District area and asked that future presentations state the local AMI for context. (3:07:21)
- Walter R. Burnett (alderperson): Said the Kells Park fieldhouse has been sought for years in a high-crime area to give young people a safe indoor place, and that nearby TIFs have helped the city budget. (3:31:49)
Exchanges between members
- 1:41:14 Lopez suggested to the chair a larger discussion of recurring Streets and Sanitation settlements.
- 1:41:56 The chair told Lopez she is open to further discussion after he reviews the information sent.
- 1:51:24 Villegas asked the chair to convene a working group on wrongful conviction liability.
- 1:51:55 The chair said Villegas's working group request was appropriate.
- 1:54:31 Vasquez said he appreciated Villegas's comments and asked to join any working group.
- 2:07:21 Ervin asked the chair to allow a question about the officers in the Liggins case.
- 2:18:56 Mitts requested Rule 14 recusal from the chair, and the chair asked her to state the specific reason.
- 2:31:43 Vasquez asked the Department of Housing to explain cost requirements to help answer Lopez's question.
- 2:32:58 Lopez asked the chair to require per-unit cost breakdowns for future affordable housing items.
- 2:34:46 Ervin responded to the per-unit cost discussion by citing decades of disinvestment in West Garfield Park.
- 2:37:56 The chair congratulated Ervin on the Care Manor project.
- 2:46:15 Moore thanked the chair for staying on top of the Legends South A3 project.
- 2:51:40 The chair said she shared Moore's view on how long CHA transformation projects have taken.
- 3:07:52 Mitchell asked the chair to have presenters state the local AMI in future.
- 3:08:03 The chair said Mitchell's request made sense and offered to discuss it further.
- 3:21:24 Lopez thanked the chair after arriving late for the per-unit cost explanation.
- 3:29:47 Conway echoed Vasquez's concerns about the Kells Park fieldhouse cost.
- 3:31:46 The chair invited Burnett to add comments on the Kells Park project in his ward.
- 3:34:01 Vasquez said he appreciated Burnett's response and found it fair to invest TIF there.