The Committee votes to approve a $7.2 legal settlement pertaining to wrongful conviction.
Good morning! I’ll be live-tweeting today’s Chicago City Council Finance Committee meeting for @CHIdocumenters –
The meeting will address 4 settlements totaling 9 million as well as TIFs for developments across the city.
This will also be Pat Dowell’s first meeting as chair.
10:04 AM Jun 14, 2023 CDT
And here are the meeting items: https://chicago.legistar.com/MeetingDetail.aspx?ID=1105911&GUID=F84F5F35-BCD9-4C66-8E89-F81FDECD8BCD&Options=info|&Search=
Ald Vasquez is attending this meeting remotely because of surgery. Feel better Alderman!
Beginning public comment.
Andrea Kluger from the Chicago Federation of Labor asks for a “no” vote on the provision of (TIF) funds to Hudson Michigan Avenue Owner LLC for construction at 2222 S Michigan Ave – there is ‘no path to good jobs’ for this development.
Johanna Chambers lives in the 3rd Ward (Dowell’s ward). A Navy Pier hospitality worker (and member of @unitehere) – she echoes Kluger’s concerns re: 2222 S Michigan.
“We need to invest in high quality job training… the developer at 2222 S Michigan has made no commitments.”
Dowell says that Alder Villegas, not a member of the committee, has joined… then says, “Oh, you are a member.”
Alan Rodriguez, in a culinary apprenticeship at McCormick Place, also urges Alders to vote against TIF provisions for 2222 S Michigan:
“If the development at 2222 S Michigan wants $10 million from the city, they need to give our communities a fair share.”
Another speaker (sorry, missed his name, but also a 3rd Ward resident) speaks against the provision of TIF funds to 2222 S Michigan – he has worked in hospitality for 30 years.
5th Speaker is Elliot Malan – @UniteHereLocal1 researcher. The union stands against the developer of 2222 S Michigan because they have not included the union’s hospitality agreement in their redevelopment agreement, which includes: high-quality job training.
Last speaker (missed the name, sorry again) is also speaking against the development at 2222 S Michigan and in the 3rd Ward. She emphasizes the difference between a good hospitality job and a bad hospitality job.
“My neighbors deserve to see a doctor when they need to.”
Chair Dowell says that she received 6 written comments against TIF provision for 2222 S Michigan and 22 in favor.
Item 1 on the agenda:
Restructuring loan w/ Renaissance Partners Corporation for additional financial assistance or modification through Multi-Family grant and Tax Increment Financing (TIF) funds for acquisition and rehabilitation of building at 3757-3763 S Wabash Ave
Department of Housing project manager presents this project – a YMCA that’s been vacant since 1969.
It’s been an SRO since then – units are at 30% AMI or below.
(Some housing terminology definitions are here, btw:
Developer looking for money from the city for rehab internal/externally in order to be accepted into HUD’s RAD program. https://www.hud.gov/RAD
The project seeks 5 mil from TIF, sales tax credit money, and a loan from the Chicago Community Loan fund.
Alder Burnett commends Chair Dowell for having “diversity in her ward” and Pat Abrams for being one of the only Black affordable developers in the city
His Q:
Wards (and developments) like this “are more unique than they were in the past.”
“The market is different since this development was built” – he references a similar building in his own ward, the Viceroy Hotel.
“We use affordable housing to prime other development to come.”
He says – mixed-income housing doesn’t bring property value down, it’s how you “get people to build”
“Build affordable housing and everything else comes after it.”
Alder Taylor asks a question about the internal setup for the building – no pictures but there is a pool, and she asks if this could be used by the community.
Alder La Spata commends this project because in his ward so many SROs were lost to the private market.
He asks about where current tenants will go during renovation + funding – 6 units will be worked on and those tenants can be moved internally.
Some context on affordable housing: https://www.chicago.gov/city/en/depts/doh/provdrs/developers/svcs/aro.html
SRO context: https://www.chicagotribune.com/news/breaking/ct-met-sro-wilson-men-hotel-20180111-story.html
Jack Brothman from the Department of Finance is giving a quick “101” for new members on how the city’s bond program works before the next few items concerning this topic.
Bonds:
Secured by a pledge of revenue stream (say, revenue generated from O’Hare or sales tax) are pledged to repay debt.
Or “full faith and credit” for the city of Chicago. Not one single source of payment – a pledge to repay the debt “with every resource available.”
Why not go to a bank or get a loan?
There’s no real entity that could afford to do this for a borrower like the City of Chicago. Those bonds can also be traded on the open market, which facilitates the sale of large issuances.
Why do we issue debt instead of paying up front?
It’s more efficient.
An example: for a building, it will be used for 30 years, doesn’t necc. make sense for them to have to pay it all up front.
Much of this is at O Hare as part of the O’Hare Modernization Plant.
Last slide: Conduit Debt.
Enhance the affordability of the project.
The city’s name is on the bond, but the city isn’t responsible for repayment.
This is a fundamental tool for @ChicagoDOH Affordable Housing – issued 434 million dollars + created 2000 affordable units across the city.
Okay, on to Item #2 on the agenda:
Issuance of tax-exempt multi-family housing revenue bonds to DL3 for property acquisition at E 79th St and S Exchange Ave to develop low-income rental units, commercial space and federally-funded health center.
I’m taking this pause as an opportunity to urge you (or anyone) to always let me know if I’ve missed something, or if there’s more context needed in these livetweets. đź‘€
This ordinance passes the committee (which means it will head to Council) and we’re on to the next.
$29 million dollars is total project proposal – today’s proposal is only for the bond issuance.
Committee Questions:
Alder Harris: This would be part of an overall project that’s taken 8 years – asks for Committee to support.
South Shore Corridor https://www.chicago.gov/city/en/depts/dcd/supp_info/south-shore-corridor-study.html
Alder La Spata asks “a learning question” re: sources of revenue –
This proposal today is only for the revenue bond issuance, not for the rest of the funding for the project.
Leon Walker + DL3 Developer involved with this project explains more:
“There’s a reasonable question here about a 29 million dollar project with 29 million funds” from bonds – from previous plan. Department of Housing has discretion to pull back to reasonable funding.
Alder Taylor asks about affordability levels for apartments:
60% AMI.
Alder Burnett commends the project + Alders Mitchell/Harris for the project since affordable housing “often costs more” than regular development.
Motion for a vote – the ayes have it, and the recommendation will move to the next City Council meeting.
Item #3 – Issuance of multi-family housing revenue bonds to New City Redevelopment Limited Partnership for property at 515 W 47th St and 1635-1641 W 47th St for construction of “United Yards” low-income housing in the 20th Ward (Taylor’s Ward)
Vanetta Jones from the Department of Housing introduces the proposal – revenue bonds up to 21 million for units on different sites, an opportunity hub for youth of color
Total cost: 48 mil.
From the city: 14.5 million in TIF, 4.5 million in CFB funds.
Alder Dowell asks – the construction cost per unit seems high. Presentee is working with the contractors to address this before this comes back to committee.
Alder Taylor: This is not a project I was happy with at first.
The city picked a developer, but community picked a local developer (who ran into issues with financing).
The project is a joint one so they could work together.
Alder Taylor: Ultimately I’m okay with it – lemons into lemonade.
But we’ve got to get in the habit of asking people what they want.
Upkeep ends up being the community’s actual priority – keep this in mind for amount of money we’re spending.
Item #4 – Amendment of redevelopment agreement with Imani Senior Village Phase 1 LLC for development at 9633 S Cottage Grove Ave
(Michelle Harris’ Ward)
City Council approved plans to build 70 units of affordable senior housing and mixed income, $32 mil project
The amendment is to provide a cap – interest rate was blank when brought to Council, capping this at 7%. They hope to begin construction this summer.
Alder Harris asks Committee to support this minor change.
“All this paperwork and we forgot to put in the interest rate”
She adds –housing for seniors is a premium in her Ward.
Affordable housing for seniors will transform the universe (calls out Alder Burnett)
Alder Martin has a question: was this actually an error or a waiting game?
A: Needed to come back because of developer error.
Alder Burnett calls out developer – “when are you building something in my ward, man?”
Discusses need for affordable senior housing: seniors often lose 20% of their income when they retire – it’s about helping the whole community.
Agenda Item #5 –
City-owned property at 4553, 4555, 4559, 4569 North Pulaski Rd and provision of Open Space Impact Fee funds to First Nations Garden Project (in Ward 33, Alder Rodriguez’s Ward)
TIF funds + Chicago Recovery Funds – $1.1 million
These funds will be used to “clean the land” – not up to city environmental standards and build a garden.
A collab between Chi Nations and Neighborspace (city’s only nonprofit land trust)
https://chinations.org/first-nations-garden/
.
Alder Taylor asks how the community can access this space, presenter clarifies this garden is managed by the community, Neighborspace is just the developer.
Agenda item passes.
Item #6 First amendment to intergovernmental agreement with Chicago Park District to increase TIF funds for renovation of public fieldhouse at Blackhawk Park, 2318 N Lavergne Ave
Alder Lee and Alder Rosa have joined the meeting.
This project includes a major renovation of the fieldhouse – the cost was vastly underestimated, and the greater cost is at 5.7 million dollars.
The cost of “every line item” roof, window, and door replacement (plus ADA access) was underestimated -
discovered conditions.
Alder Scott asks as a former Park employee – need to do a better job of being proactive with old park buildings. Many other buildings need “exact same thing”… 10 years ago.
Chair Dowell says “well said” + wants to bring Parks to this Committee more regularly.
Parks District says “We are a huge entity with 600+ parks, fieldhouses, shoreline, harbors, playgrounds,… and 30 million dollars.” bc of state cap.
Chair Dowell is unmoved.
Alder La Spata – “the park district deserves all the support they can get… I hear where you’re coming from. This isn’t my ward, but – does the park already have HVAC?”
“No because of cost.” – at least a million dollars.
Alder Martin: why the 3 year delay (initial proposal came through in 2020). Mentions TIFs that are expiring, could extend those potentially. This TIF expires in 2024.
COVID, talent exodus, “the perfect storm.”
She discusses a relationship with the Blackhawks, and the lack of transparency with the department.
Alder Villegas: I know your budget capital plan is at $30 million + you have hundreds of facilities, but to come here with a plan that’s double your initial proposal for TIFs, I think that’s an issue.
“Nothing against you Beth, you’re just here… but this is ridiculous”
Item #7 – Tax Increment Financing (TIF) funds to Steep Theatre Company for renovation and construction of new theater venue and community space at 5300-5318 N Kenmore Ave (48th Ward) – Alder Hoppenworth
Previously a Christian Science Reading Room – needs roof repair. Committed to local engagement, community support.
Motion passes – next agenda item is abt Overton School + provision of Tax Increment Financing (TIF) funds to 221 E. 49th Street LLC for development of Overton Center of Excellence at 221 E 49th St
Building is one of the schools closed in 2013 – it would house many businesses and local entrepreneurs – I’ve heard people describe it as similar to Experimental Station https://www.experimentalstation.org/
Cost: 16.8 Million Dollars
Funding comes from a variety of sources (not just City) and includes grant from https://wrtogether.org/
Alder Martin: Congrats on this project, what a tremendous amount of work.
Chair Dowell: We were nervous when this school closed, they’ve been operating this building as a community hub, and this city support would take it to another level.Motion passes.
Item #9 (which generated many public comments at the beginning of the meeting) re: provision of Tax Increment Financing (TIF) funds for construction of varied income residential units, commercial, retail and event space at 2222 S Michigan Ave will be held in committee. đź‘€
So we’re on to settlements:
- Lana Triplett v. Adam Corona and the City of Chicago (2019) – $400,000
Alder Spasato asks – This amount doesn’t add up. It feels simple but we’re looking at $400,000 5 years later. Why did it take so long? Negotiation?
Presentee: Causation was disputed in terms of injury.
(“Thank you {presentee}, I’m sure your friends warned you about me.”}
Alder Taylor: Is the driver still employed by the City of Chicago? Was he drug tested at the scene?
Presentee: No. He retired in 2022. He should have been but I will provide report through the chair.
Alder Taylor: Why did it take so long?
Presentee: Pandemic progress slowed.
Motion passes.
- A $500,00 settlement for Joshua Habasek-Bonelli v. City of Chicago.
Lawsuit is re excessive force, unlawful detention by CPD.
On August 27th 2021, CPD officer Simonetti deployed taser that caused the plaintiff to fall into the sidewalk in front of his home. Simonetti was stripped of his police power and later resigned from CPD in Jan 2023.
This was passed, on to the second settlement:
Joshua Habasek-Bonelli v. The City of Chicago for $550,000 for unlawful detention and unlawful use of force after a CPD Officer tased him in front of his home in 2021.
(Having some technical issues so re-upping this agenda item)
Had some technical issues and will follow up with the details of the settlements of the cases I missed – for now, I’ll skip to the details of the final settlement:
From the case text:Â Arthur Brown spent nearly 30 years in prison for a crime he insists he did not commit.
https://casetext.com/case/brown-v-city-of-chicago-302
On May 28, 1988, an arson occurred in a video rental store on the south side of Chicago, resulting in the death of two persons who were asleep in the restaurant next door.
Mr. Brown was arrested by the Chicago Police Department + charged with the arson and murders, and convicted.
He is suing the City of Chicago for damages associated with him being wrongfully convicted and incarcerated due to the Defendants’ misconduct.
Brown alleges that the defendants (3 CPD officers) maliciously prosecuted him, violated his rights. All 3 CPD officers involved are now deceased. Brown spent 29 years in custody.
This case will go to trial if not settled (for potentially 60 mil + half of Brown’s attorney fees)
Alder Questions:
Alder Hopkins: Any evidence to support claim there was physical coercion to the confession? (He will support).Â
Law Dept Presentee: No medical records but without other info we just have the plaintiff’s word.
Alder Taliaferro: Request to the Chair – can the Law Department provide you with the things can not be discussed in a public forum (and are there rules re: Committee going into Executive Session for cases with information like that).
Chair Dowell will follow up.
Alder Spasato confirms Brown received a certification of innocence from the Cook County Court.
Alder Vasquez: Officers who were not deceased – is it possible there are other cases like this based on their records? Â
Presentee: No lawsuits for Campbell that the department is aware of – did the best to search. There were lawsuits against at least one of these officers.
Alder Taylor: How old is Mr. Brown now? (He is 72.) And he would ask for 60 million in trial? (Yes). And he got 7.2 million from the county (Also yes.)
This settlement passes.
Ooof. Chair Dowell acknowledges this was her first meeting, and “it was a long one.”
Again, I’ll follow up with context on the settlement I missed – Angela Williams, Independent Administrator of the Estate of Sherrell Brown, Deceased, V. The City of Chicago, Officer Robert Rhodes, Officer Joseph Lisciandrello for $1,000,000
There’s a motion to adjourn, and that’s a wrap on today’s Finance Committee meeting.
Follow @chidocumenters for more reporting on Chicago City Council.