Committee on Finance meeting, July 17, 2023
- When: Mon, Jul 17, 2023, 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/845350649
- Transcript: full text (36,246 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 heard five public commenters, including union representatives who supported TIF assistance for the Congress Theater and 2222 South Michigan Avenue, and approved its June 2023 Rule 45 report. The committee recommended passage of a Durkin Park lease tied to the Joliet water supply agreement, a Fullerton/Milwaukee TIF extension and up to $27 million in TIF for the Congress Theater restoration, up to $10 million in TIF for the Hudson Motor Company building redevelopment, a PACE program administrator extension, amendments for Discovery Partners Institute infrastructure, ceding up to $150 million in volume cap to IHDA, and funding for the Boulevard Apartments preservation. An ordinance adding signers for a $350 million federal WIFIA loan for lead service line replacement was held in committee after members raised concerns about the absence of Black-owned prime contractors, bonding requirements and program progress. The committee also recommended four police-related settlements, three of them on roll call votes, including $750,000 each in the Tucker and Parish cases, $2 million in the Cole Garrett case, and $4,987,500 in the Smith investigatory stops class action.
Topics: Tax increment financing, Congress Theater, Lead service line replacement, Minority contracting, Affordable housing, Police settlements, Joliet water supply, PACE program, Volume cap
Agenda items discussed
- 16:48 June 2023 Rule 45 report: passed
- 17:17 Lease agreement with the Chicago Park District for a portion of Durkin Park for the Joliet water supply project (18th Ward): passed
- 36:01 Third amendment to the Fullerton/Milwaukee TIF redevelopment plan: passed
- 36:17 Substitute redevelopment agreement with BR Congress Owner LLC for the Congress Theater at 2135 North Milwaukee (1st Ward): passed
- 1:03:21 Redevelopment agreement with Hudson Michigan Avenue Owner LLC for 2222 South Michigan Avenue (3rd Ward): passed
- 1:17:08 Extension of the agreement with Loop Counterpoint PACE as PACE program administrator: passed
- 1:36:12 Amendment to the TIF appropriation ordinance for Discovery Partners Institute infrastructure at 15th and Clark (3rd Ward): passed
- 1:45:13 Amendment expanding authorized signers for a $350 million WIFIA loan for lead service line replacement: held
- 2:40:43 Authority to cede excess volume cap of up to $150 million to the Illinois Housing Development Authority: passed
- 3:02:28 Substitute ordinance for multi-family loan funds for Boulevard Apartments preservation (1st and 26th Wards): passed
- 3:14:24 Small claims payments approved and denied, placed in the omnibus
- 3:15:03 Charitable solicitation permits for the Salvation Army and the ASPCA, placed in the omnibus
- 3:15:47 June 2023 report of verdicts, judgments and settlements, placed on file
- 3:16:13 Settlement in Vincent Tucker v. City of Chicago for $750,000: passed
- 3:31:19 Settlement in Bernard Parish v. City of Chicago for $750,000: passed
- 3:38:48 Settlement in the Cole Garrett case for $2 million: passed
- 3:48:22 Settlement in Darnell Smith v. City of Chicago class action for $4,987,500: passed
Alderpersons who spoke
- Pat Dowell (chair): Asked whether the city has any obligation to spend money under the Joliet water agreement. (24:10); Told Alderperson Jeanette B. Taylor that information on suburban water payments would be provided through the chair before the council vote. (32:55); Said restoring the Congress Theater could open up opportunity to improve Milwaukee Avenue. (1:02:05)
- Marty Quinn (alderperson): Asked what the Durkin Park structures would look like and urged sensitivity to the adjacent residential area. (25:12); Asked for data on how long parkway restoration takes after lead service line work in the 13th Ward. (2:01:20)
- Jeanette B. Taylor (alderperson): Asked how much the city is fronting for the Joliet project, what community benefits the park would receive, and whether suburbs owe the city for water. (27:49); Said the city needs accountability on collections from suburbs that owe for water given the $65 million upfront financing. (32:25); Asked about securing the vacant Congress Theater from further damage and about its historic tax credits. (52:47)
- William Conway (alderperson): Confirmed the Joliet agreement would bring the city over $30 million a year for 93 years. (33:26); Asked about support from affected alderpersons for the TIF extension, the TIF budget cap, deferred development fees and a clause reducing TIF if project costs fall. (47:04); Asked how often the PACE program has been used, noting his background as a solar developer, and whether administrative fees match national norms. (1:25:33)
- Daniel La Spata (alderperson): Said the Congress Theater agreement includes enforceable affordable commercial rents, 14 affordable units and nonprofit space requested by residents, and that the TIF extension adds time, not money. (57:48); Asked for details of pedestrian and cycling infrastructure in the Discovery Partners Institute design. (1:41:14); Asked about the relationship between ceded volume cap, CHA projects and IHDA fees. (2:56:19)
- Gilbert Villegas (alderperson): Asked about the Congress Theater's current and projected property taxes and its MWBE participation. (54:21); Asked why part of the Hudson building assistance is structured as a loan rather than a grant. (1:10:49); Asked whether PACE financing requires a clean energy component. (1:28:04)
- Raymond A. Lopez (alderperson): Asked whether DPD would update redevelopment agreement language to reflect council requests and suggested a working group. (56:24); Requested a ward-by-ward list of PACE projects and contractors. (1:27:50); Questioned the WIFIA ordinance's wording, moved to table it, and asked for ward-level data on service lines replaced and costs. (1:56:43)
- Nicole T. Lee (alderperson): Expressed support for the 2222 South Michigan project near her ward. (1:09:58)
- David H. Moore (alderperson): Said he supports the loan structure and asked how the city ensures the loan is repaid, and whether the project qualifies for the Neighborhood Opportunity Fund. (1:12:03); Asked for a list of funds that can be paired with volume cap, including any city surplus funds. (2:58:56)
- Brian Hopkins (alderperson): Supported the Hudson building project as progress on the long-discussed revitalization of Motor Row and an appropriate use of TIF. (1:14:22); Asked whether infrastructure items restored to the developer agreement would again be funded by TIF. (1:44:11)
- Brendan Reilly (alderperson): Asked for the PACE marketing plan and the fees collected by the administrator, questioning the return given only three projects. (1:31:15); Asked why leaks-and-breaks replacements began only in November 2022 and what homeowners pay under the homeowner-initiated program. (2:25:44); Asked what interest rate the loan carries and whether water rates must rise to service it. (2:28:59)
- Jason C. Ervin (alderperson): Questioned giving the issuing department authority to sign the loan and asked how smaller and Black contractors are included in lead service line work. (1:48:46); Objected that no Black prime contractors were selected and said waiting for future contracts was not acceptable. (1:54:36); Said the city reserves the right to rebid and asked that no lead line contracts be awarded until equity concerns are addressed. (2:34:20)
- Derrick G. Curtis (alderperson): Said lead line replacement means long-term careers and that bonding requirements of $50 million to $70 million are too high for minority firms. (2:01:40)
- Gregory I. Mitchell (alderperson): Said the low share for minority contractors was unacceptable and asked for clearer information on the six lead line programs. (2:08:14); Said poor street restoration after lead line work created a safety issue and called for better coordination of utility work. (2:10:14); Asked that all lead service line programs be reviewed holistically before more contracts proceed. (2:36:23)
- Walter R. Burnett (alderperson): Concurred with colleagues' concerns on minority contracting and asked about the loan's interest and total program spending. (2:11:54); Urged aggressive workforce training so enough people and contractors are ready for lead line work. (2:19:25); Asked whether delaying the loan would affect interest rates and whether borrowing and contracting are separate. (2:38:21)
- Andre Vasquez Jr. (alderperson): Said members should have been briefed beforehand, asked for regular progress reporting, and said MBE participation figures should be ready when departments seek funding. (2:21:02); Asked whether the officer in the Parish case had a body camera. (3:37:40)
- Byron Sigcho-López (alderperson): Called the volume cap proposal a generally positive development and asked the Department of Housing to follow up on members' questions. (3:01:35)
- Nicholas Sposato (alderperson): Said video in the Parish case showed the plaintiff spitting in the officer's face. (3:35:54); Asked about the split of the Smith settlement and said he supports it. (4:04:11)
Exchanges between members
- 28:39 Taylor echoed Quinn's concern about disruption to neighbors near Durkin Park.
- 32:25 Taylor told the chair the committee needs accountability on suburban water payments before supporting $65 million in financing.
- 32:55 Dowell responded that the information would be provided through the chair before the vote.
- 37:30 Dowell told Curtis the Durkin Park item passed and asked him to talk with Taylor about park improvements.
- 1:02:05 Dowell commended La Spata for taking on the Congress Theater project.
- 1:58:15 Lopez asked the chair to table the WIFIA item until a final version is available.
- 1:58:25 Dowell asked Lopez to hold his motion until all members had spoken.
- 2:02:09 Curtis said he was building on Ervin's concerns about lead line contracting.
- 2:08:19 Mitchell echoed Ervin's sentiments about MBE participation.
- 2:10:14 Mitchell agreed with Quinn's point about street restoration.
- 2:12:30 Burnett concurred with colleagues' concerns and referenced Ervin's question about prime contractors.
- 2:23:32 Vasquez said Mitchell had made a great point about delays in street work.
- 2:31:07 Dowell asked Lopez to withdraw his tabling motion so the item could be held.
- 2:31:16 Lopez withdrew his motion at the chair's request.
- 2:33:58 Dowell responded to Villegas that the committee was not trying to change the bid contracts.
- 2:34:20 Ervin responded that the city reserves the right to rebid contracts.
- 2:36:52 Mitchell supported Ervin's request that lead line contracts be reviewed.