The City is leaving two leased offices for a building it wants to sell. Its facilities chief says now isn't the time to sell

Ald. Gilbert Villegas pressed the Department of Fleet and Facility Management on office space, a promised list of surplus properties and Riverwalk fees. Ald. Scott Waguespack asked what became of a $24 million advertising idea.

By Chicago PoliticsUpdated Oct 29, 2026

The City plans to move out of two leased offices and into a building on East Randolph Street that it has said it wants to sell, and its facilities department told alderpersons Tuesday that this isn't a good time to put that building on the market.

Why it matters: the department manages 476 facilities, 423 owned and 53 leased, and Villegas built his questions on Ernst & Young's review of City operations. Every year the City pays for space it doesn't need is money that isn't going to services, and every building it holds off the market pays no property tax.

The exchange came at the Department of Fleet and Facility Management's budget hearing. Video and a transcript are on our meeting page.

What was said

Office moves. Ald. Gilbert Villegas (36th) said the City plans to leave 1900 S. Western Ave. in December and 111 W. Washington St. when its lease ends in August 2027, and to move into 66-72 E. Randolph St. until that building can be sold. He said Ernst & Young values it at about $130 million (watch at 6:08:52). He asked when it would be sold and returned to the tax rolls. A department official said the City has appraisals but is watching the market: "It's not a steady time in the market right now for office space" (watch at 6:10:21).

A promised list. Villegas said the budget office had promised the Council, in April, a list of more than 30 City-owned sites by Sept. 30, and asked whether it had been sent. The department said it would check. He also asked how much the City will pay in 2027 for space it doesn't need; the department said it would get him that number.

Riverwalk fees. Villegas said Riverwalk businesses paid about $2.5 million in license fees in 2024 and that Ernst & Young found matching peer cities could raise about $13 million over 10 years. The department said it has to balance revenue against keeping Riverwalk spaces affordable for small businesses (watch at 6:10:59).

Advertising. Ald. Scott Waguespack (32nd) asked what happened to a proposal for up to $24 million in advertising on City vehicles and light poles, which he said was in last year's budget. The department said it was not aware of any advertising on fleet vehicles and would report back through the chair (watch at 6:19:47).

Fire trucks and ambulances. Commissioner Juan Pablo Prieto said the department has bought 225 new fire department vehicles and 754 Streets and Sanitation vehicles, due between 2027 and 2031, and expects 81 more police vehicles in early 2027 (watch at 5:40:20). Ald. Anthony Napolitano (41st) pressed on repair capacity for Fire Department rigs and spare apparatus (watch at 5:42:45).

The budget. The Council's financial analysts said the department's proposed budget is $565.1 million, up $61.7 million or 12.25%, with 1,040 positions (watch at 5:34:28).

What our records add

The advertising idea came from the Council. Last December's alternative revenue ordinance, which passed 29 to 19 without the Mayor's head tax, relied in part on new advertising revenue, including ads on light poles, WTTW reported at the time. Villegas and Waguespack were among its co-sponsors.

How each ward voted

29 yea, 19 nay, 2 not voting · Dec 19, 2025 · Passed

Yea Nay Not voting

SO2025-0021719: the roll call, the timeline and the documents

The Ernst & Young review. On the first day of hearings, budget officials said $52.2 million of the Mayor's $120 million in savings came from the consultant's work, as we reported.

What's next

Today, Oct. 29: Streets and Sanitation, Transportation, Technology and Innovation, and Water Management (meeting page).
Nov. 6 to 10: remaining department hearings, including the budget office's wrap-up.
Dec. 8: the Council's public hearing on the budget.

Sources: Chicago Politics: SO2025-0021719, 2026 revenue ordinance alternative.