Committee on Finance meeting, May 13, 2024
- When: Mon, May 13, 2024, 9:30 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/944242658
- Transcript: full text (27,835 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, chaired by Alderperson Pat Dowell, heard three public commenters and approved its April rule 45 report. It recommended passage of a two-year water leak relief pilot program that lets owners of small properties have bills adjusted for leaks on underground service lines, retroactive to January 2023, after extensive member questions about eligibility, capacity, look-back periods and repairs. The committee also recommended a $25 million tax-exempt bond inducement for affordable housing at 3601-3625 West Chicago Avenue, additional TIF funds for Park 598, an amendment extending the street construction deadline in the Commerce Park redevelopment agreement (with the chair voting no), a $10 million TIF agreement for the Fillmore Center in North Lawndale, and replenished Small Business Improvement Fund money with new rules including tavern eligibility. Small claims were placed on the omnibus, Law Department reports were placed on file, and four lawsuit settlements were recommended, with Alderperson William Conway voting no on the Chavez settlement.
Topics: water leak relief pilot, water billing, affordable housing bonds, TIF funding, Park 598, Commerce Park, Fillmore Center, Small Business Improvement Fund, police settlements, public comment
Agenda items discussed
- 17:13 Public comment
- 27:57 Approval of the April rule 45 report: passed
- 28:19 Ordinance establishing the water leak relief pilot program (new section 11-12-470): passed
- 1:31:00 Multi-family housing revenue bonds up to $25 million for The Avenue Southwest LLC at 3601-3625 West Chicago Avenue: passed
- 1:42:02 First amendment to intergovernmental agreement with the Chicago Park District for TIF funds for Park 598 at 1514 North Larrabee Street: passed
- 1:48:13 Amendment to redevelopment agreement with NP Avenue O LLC for Commerce Park (10th Ward): passed
- 1:57:33 TIF redevelopment agreement with North Lawndale Catalyst Initiative for the Fillmore Center at 4100 West Fillmore Street: passed
- 2:11:47 64th amendment to administrative services agreement with SomerCor 504 Inc. and Small Business Improvement Fund rule changes: passed
- 2:34:37 Orders authorizing and denying payment of various small claims: passed
- 2:35:13 Department of Law reports of verdicts, judgments and settlements for April 2024
- 2:40:15 Settlement: Jose Eufrazio v. Tyrone Gamble and City of Chicago ($190,000): passed
- 2:43:06 Settlement: Washington v. City of Chicago ($525,000): passed
- 2:49:10 Settlement: Lamar Johnson v. City of Chicago ($940,000): passed
- 2:59:47 Settlement: Chavez, estate of Irene Chavez v. City of Chicago ($1.75 million): passed
Alderpersons who spoke
- Pat Dowell (chair): Said Alderperson David H. Moore raised a good point and the committee would follow up with the controller on reimbursing those who already paid. (55:25); Clarified that Alderperson Raymond A. Lopez suggested looking back before 2023 and the controller committed to doing so. (1:07:39); Congratulated the controller and water commissioner for addressing long-standing issues raised in committee. (1:29:30)
- Raymond A. Lopez (alderperson): Commended the water leak program, hoped it would go beyond a pilot, and asked how far back it could go. (35:49); Proposed a flat credit for verified leaks before 2023 for residents whose ward offices worked with them on leak issues. (36:46)
- William Conway (alderperson): Asked whether the leak program has a specific budget and the estimated total relief, and said the city rather than customers is arguably at fault. (38:30); Asked whether the TIF assistance for the West Chicago Avenue housing is a loan or grant and its interest rate. (1:37:24); Asked why the Fillmore Center TIF is a grant rather than a loan and whether the laundry tenant will pay rent. (2:08:27)
- Chris Taliaferro (alderperson): Asked how long it would take for the Water Department to inspect a suspected leak and whether it has staff for a surge of requests. (41:06)
- Gregory I. Mitchell (alderperson): Asked how the eligible leak period is determined and how spike notification letters factor in. (55:41); Asked why eligibility is limited to one- to three-unit residences and commercial properties with service lines of one inch or less. (57:36); Asked how owners living outside Chicago prove eligibility and how private drain program and non-metered accounts are treated. (1:02:07)
- Michael D. Rodriguez (alderperson): Said he expects many applicants to the leak program and asked about capacity and a formal process to report back on the pilot. (46:34)
- David H. Moore (alderperson): Asked whether the city could proactively check for water leaks like gas companies do. (50:04); Asked that residents who already paid inflated leak bills be reimbursed even beyond the pilot. (50:43); Asked about the nature and total cost of the Commerce Park development and the city's share. (1:54:05)
- Nicole T. Lee (alderperson): Clarified that the pilot covers the leak's added cost while the property owner remains responsible for the initial repair. (1:00:37); Supported the pilot, asked about notifying residents of possible leaks in multiple languages, and asked how owners who cannot afford repairs are handled. (1:11:09)
- Emma Mitts (alderperson): Asked whether the Finance Department stopped sending leak warning letters and why nothing was done about bills after residents were notified. (1:05:25)
- Gilbert Villegas (alderperson): Said residents had faced water bills as high as $80,000, credited news coverage, called the program transformative, and called the question. (1:08:05)
- Nicholas Sposato (alderperson): Called the leak relief long overdue, saying residents were charged for problems they did not know about and also bore repair costs. (1:10:13); Asked about the circumstances of the Washington settlement, including whether the plaintiff had items from looting and whether anyone was arrested. (2:46:08); Asked whether the officer in the Johnson pursuit case was disciplined. (2:51:39)
- Ronnie L. Mosley (alderperson): Asked whether residents who paid off water debt when selling property could be credited, and how a family received no bill but was sent to collections. (1:15:58); Said SBIF outreach increased applications in his ward and thanked DPD's small business team. (2:31:53)
- Byron Sigcho-López (alderperson): Supported the pilot but asked how leaks are confirmed, citing concerns about discrimination in the Water Department and disproportionate debt in poorer areas. (1:19:47); Asked Finance and Water Management to show grace to small homeowners and businesses facing disputed water debt. (1:23:13)
- Walter R. Burnett (alderperson): Expressed full support for the West Chicago Avenue bond project and the Park 598 TIF funding, both in his ward. (1:25:18)
- Marty Quinn (alderperson): Suggested the program consider sidewalk restoration costs residents face after service line digs. (1:27:02)
- Jason C. Ervin (alderperson): Asked members to complete ARPA surveys ahead of an upcoming ARPA meeting. (1:30:19); Called the Fillmore Center a game changer for the West Side that keeps hospital laundry work in the city. (2:06:39)
- Brian Hopkins (alderperson): Asked that ineligible leak cases, such as leaky toilet valves, be tracked during the pilot. (1:28:31); Asked whether the Park 598 design accommodates a future extension into the 2nd Ward and moved approval on behalf of Alderperson Walter R. Burnett. (1:45:56)
- Brendan Reilly (alderperson): Said the West Chicago Avenue project costs about $765,000 per unit with over $9 million in soft costs and asked how to reduce them. (1:38:12)
- Peter Chico (alderperson): Said building Burley Avenue will move heavy truck traffic away from residential areas in his ward. (1:53:39)
- Monique L. Scott (alderperson): Said the Fillmore Center's hiring is focused on West Side residents and called the project historic for North Lawndale, pledging support. (2:05:28)
- Matthew J. Martin (alderperson): Asked what happens if the Fillmore Center's occupancy falls below the required 75%. (2:09:38); Commended DPD staff for working with him and Alderperson Andre Vasquez Jr. on allowing longtime taverns to use SBIF grants. (2:23:09)
- Scott Waguespack (alderperson): Praised the SBIF staff and said the new tavern vetting rules should prevent abuse of funds. (2:23:53); Asked why the fleeing driver in the Johnson case bears no financial responsibility and whether the Law Department has sought state law changes. (2:52:59)
- Andre Vasquez Jr. (alderperson): Thanked staff and the chair for the two-year operation requirement for taverns, said supporting good businesses strengthens corridors, and moved to pass. (2:33:08)
Exchanges between members
- 55:25 The chair called Alderperson David H. Moore point a good one and said the committee would follow up.
- 1:00:37 Alderperson Nicole T. Lee thanked Alderperson Gregory I. Mitchell for his question.
- 1:05:25 Alderperson Emma Mitts followed up on Alderperson Gregory I. Mitchell question about how far back billing goes.
- 1:07:39 The chair restated Alderperson Raymond A. Lopez suggestion to look back before 2023 and asked him to confirm.
- 1:07:47 Alderperson Raymond A. Lopez confirmed the chair's description of his suggestion.
- 1:13:55 Alderperson Nicole T. Lee referred to a point Alderperson Nicholas Sposato had raised about repair costs.
- 1:26:45 Alderperson Walter R. Burnett thanked Alderperson Brian Hopkins for working with him on Park 598.
- 1:47:45 Alderperson Brian Hopkins moved approval of Park 598 on behalf of Alderperson Walter R. Burnett.
- 2:06:39 Alderperson Jason C. Ervin echoed Alderperson Monique L. Scott comments on the Fillmore Center.
- 2:23:18 Alderperson Matthew J. Martin noted he and Alderperson Andre Vasquez Jr. had raised tavern owners' concerns together.
- 2:23:53 Alderperson Scott Waguespack reiterated Alderperson Matthew J. Martin praise for the SBIF staff.
- 2:29:46 Alderperson Gregory I. Mitchell added to what Alderperson David H. Moore said in briefings about BACP's role.
- 2:33:35 Alderperson Andre Vasquez Jr. thanked the chair for the amendment requiring businesses to operate two years.