Committee on Economic, Capital and Technology Development meeting, September 4, 2024

When: Wed, Sep 4, 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/995139053
Transcript: full text (18,752 words, official captions)

Video chapters

11:34 Public comment
29:36 Rule 59 remote participation for Alderperson William E. Hall
43:30 Subject matter hearing on a substitute resolution recognizing and promoting employee ownership as a strategy…
1:09:30 Michael D. Rodriguez: As Workforce Development chair, said the city needs creative ways to build wealth…
1:10:31 Michael D. Rodriguez: Asked about the differences among employee stock ownership plans, worker cooperatives…
1:14:48 Michael D. Rodriguez: Asked where Chicago stands on scale of employee ownership and what best practices…
1:17:03 Daniel La Spata: Asked what share of employee-owned companies started that way versus converted from private…
1:20:08 Daniel La Spata: Asked about Clark and Devon Hardware's conversion as a case study.
1:21:57 Daniel La Spata: Said his ward has legacy manufacturing businesses likely affected by owner retirements and…
1:23:44 Andre Vasquez Jr.: Asked what city government can do to incentivize more employee stock ownership plans and…
1:26:12 Andre Vasquez Jr.: Suggested the Law Department look at procurement scoring incentives for employee-owned…
1:27:26 Leni Manaa-Hoppenworth: Spoke as a longtime small business owner, said employee-owned institutions build…
1:30:00 Ruth Cruz: Asked how at-risk businesses would be identified and enter a program, and how decision-making…
1:34:26 Nicole T. Lee: Described losing a longtime Chinatown restaurant whose owners had no successor and asked…
2:04:33 Leni Manaa-Hoppenworth: Thanked the second panel, expressing interest in the Chicago Market cooperative in…
2:07:47 Gilbert Villegas: Said he had been working with panelists on legislation addressing challenges faced by…

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 held a subject matter hearing on a substitute resolution recognizing and promoting employee ownership as a strategy for economic sustainability and equity in Chicago. After ten public commenters spoke and the committee approved remote participation for Alderperson William E. Hall, a first panel from the Illinois Center for Employee Ownership and S&C Electric described employee stock ownership plans, the expected wave of business owner retirements, and barriers such as access to capital and loss of minority and women business certification after conversion. A second panel from the Mayor's Office, the Department of Planning and Development and Chi Fresh Kitchen described the city's community wealth building initiative, its 15 million dollar ARPA investment in shared ownership models, a planned manufacturing succession program and a legacy business initiative. Members asked about differences among ownership models, how the city can encourage conversions, outreach to at-risk businesses and restaurants, and the committee chair said legislation on the topic is forthcoming. No vote was taken on the resolution at this hearing.

Topics: employee ownership, worker cooperatives, employee stock ownership plans, business succession planning, community wealth building, MWBE certification, legacy businesses

Agenda items discussed

11:34 Public comment
29:36 Rule 59 remote participation for Alderperson William E. Hall: passed
43:30 Subject matter hearing on a substitute resolution recognizing and promoting employee ownership as a strategy to maximize economic sustainability and equity: discussed

Alderpersons who spoke

Gilbert Villegas (chair): Said he had been working with panelists on legislation addressing challenges faced by minority, women and veteran business enterprises after ownership changes, and that Chicago should take the lead on employee ownership. (2:07:47)
Michael D. Rodriguez (alderperson): As Workforce Development chair, said the city needs creative ways to build wealth through its workforce and thanked the sponsors of the resolution. (1:09:30); Asked about the differences among employee stock ownership plans, worker cooperatives and employee ownership trusts in building wealth and productivity. (1:10:31); Asked where Chicago stands on scale of employee ownership and what best practices exist elsewhere. (1:14:48)
Daniel La Spata (alderperson): Asked what share of employee-owned companies started that way versus converted from private ownership, and how S&C's transition went. (1:17:03); Asked about Clark and Devon Hardware's conversion as a case study. (1:20:08); Said his ward has legacy manufacturing businesses likely affected by owner retirements and that he would follow up on outreach to them. (1:21:57)
Andre Vasquez Jr. (alderperson): Asked what city government can do to incentivize more employee stock ownership plans and what city hurdles make it harder. (1:23:44); Suggested the Law Department look at procurement scoring incentives for employee-owned firms and asked for informational materials ward offices could share with business owners. (1:26:12)
Leni Manaa-Hoppenworth (alderperson): Spoke as a longtime small business owner, said employee-owned institutions build community, and asked how the city can lift up small and minority- and women-owned businesses. (1:27:26); Thanked the second panel, expressing interest in the Chicago Market cooperative in Edgewater and Chi Fresh Kitchen's work. (2:04:33)
Ruth Cruz (alderperson): Asked how at-risk businesses would be identified and enter a program, and how decision-making works with employees in employee-owned companies. (1:30:00)
Nicole T. Lee (alderperson): Described losing a longtime Chinatown restaurant whose owners had no successor and asked whether restaurants have successfully converted to employee ownership. (1:34:26)

Exchanges between members

1:10:04 Alderperson Michael D. Rodriguez thanked Chair Gilbert Villegas and the panelists for bringing the resolution forward.
1:16:44 Alderperson Daniel La Spata thanked the vice chair before asking questions.
1:22:47 Alderperson Andre Vasquez Jr. thanked the chairman for putting the hearing together.
1:28:35 Alderperson Leni Manaa-Hoppenworth seconded Alderperson Andre Vasquez Jr. point about working together to lift up workers.
1:28:53 Alderperson Leni Manaa-Hoppenworth echoed the Workforce Development chair's call for creativity.
1:29:46 Alderperson Ruth Cruz thanked the vice chair for starting the September committees well.
1:34:23 Alderperson Nicole T. Lee thanked the vice chair before asking her question.
2:05:08 Alderperson Michael D. Rodriguez again thanked the chair for putting the hearing together.

Documents

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