Committee on Finance

@CHIdocumenters The meeting gets going in around half an hour. We will be covering a few topics.
-The issuance of the bond program for the Barbara Jean Wright Court Project,
-The ordinance for the Mortgage Credit Certificate Program
-Around $27m in TIF funding for various project

@CHIdocumenters Additionally there are several additional CPD settlements, including one totaling $14m for two plaintiffs, who were wrongly imprisoned for a total of 43 years.
https://innocenceproject.org/cases/kevin-bailey/

@CHIdocumenters Additionally 3 other settlements
-$125,000 settlement for Terrance Harris who was shot 29 by police in 2013,

$425,000 for Dejuan Harris who was shot by CPD in 2016 while running away

$115,000, for Grayer and Holt, in a somewhat complicated case related to pre-trail detention

@CHIdocumenters We get going! At 10:06 Ald. Waguespack opens the meeting up.

@CHIdocumenters There is a quorum, but the following alderman are out.
-Hopkins
-Sawyer
-Cardenas
-Brookins
-Villegas
-Osterman

-Ald. Sigcho Lopez, and Cardona who are not on the committee are present

@CHIdocumenters The Rule 45 report passes without objection.

@CHIdocumenters Hopkins shows up to the meeting leaving only 5 absent.

@CHIdocumenters Next up is the 2022 Municipal Depositories designation. This was already discussed and approved in December, but due to an error in wording this has to be approved again, which it is without objection.

@CHIdocumenters Next up is the Multi Family Revenue Bond for the Barbara Jean Wright Court, around Morgan and 14th pl. In the 25th ward.

@CHIdocumenters Dinah Wayne from the DoH is up to discuss this, which is a large affordable housing unit.

The cost for the full rehab is around $72 million. https://t.co/AtZpCz2wTq

@CHIdocumenters This is largely funded on bond, with some tax credit funding.
Wayne talks in detail about the importance of the project due to the number of larger sized affordable units. https://t.co/GYvbp0UTdX

@CHIdocumenters Ald Sposato is up, is says that many of his colleagues are “locked in on affordable housing” but he asks for rough rents for the units.

Wayne says that on average these units around around $1200-$2000, but that these are voucher subsidized to 30% of their rent

@CHIdocumenters Sposato asks about the process, and Dinah Wayne says that the rent is set by HUD based on average median income

@CHIdocumenters Ald. Thompson is up. He points out that half of Barbara Jean Wright is in the 11th ward, and points out that he has not been consulted for this.

He says that this is a needed investment and says he supports it despite the lack of consultation.

@CHIdocumenters Ald. Curtis is up, he talks about how he grew up in the Barbara Jean Wright homes, and the power of the local Tenants Association.

He says he supports the project 100%.

@CHIdocumenters Ald. King is up, she asks questions about the developer.

Wayne clarifies that their primary locations is Houston and New York.

King asks about the diversity of the company, and asks about the intentions around the spend.

@CHIdocumenters Wayne says that of the Jonathan Rose Staff, of the 418 employees, 99 are African American, and 57 are Hispanic, and 27 are Asian, with around 180 white.
With a roughly 50/50 split male/female.

In terms of Senior staff, 50% are white, 23% are not specified and remainder are POC

@CHIdocumenters Dinah Wayne says that the diversity shines through based on local staff, The orgs they are hiring in the city to do the development work are (with one exception) MBE/WBE.

@CHIdocumenters King asks for a budget break down based around budget. “You might have alot of diversity in a team but not alot of spend.”

Wayne says that the Construction’s $40m developers have one MBE/ and one non MBE. Though King points out that this doesn’t mean the spend is split evenly.

@CHIdocumenters King points out that they just bought a building in her ward, and hasn’t met or interacted with him. She just wants to get to know who the org is now that they are doing business in the ward.

@CHIdocumenters Ald. Sigcho-Lopez is up:
He says that the tenants union, Ald Ervin, and the representative from the area have been working heavily with his office on the project.

One of the commitments of the development is to avoid any displacement of residents.

@CHIdocumenters Motion to approve the item is passed unanimously.

@CHIdocumenters Next up is item 4: This is a motion to establish the Single Family Mortgage Credit Program.

Irma Morales is up to talk about this program

@CHIdocumenters This is the program that is usually called Tax Smart. This will allow the city to use $75m of bond volume to help assist around 300 home buyers

@CHIdocumenters The program has been around since 2005 and has helped with around 2,132 households in purchasing homes.

On average around 30% of the program recipients are in areas below 80% of median income.

@CHIdocumenters Home buys are allowed to claim a tax credit of 25% of the mortgage interest paid. It also lets them use this credit as “income” when applying for a mortgage.

@CHIdocumenters The program has “targeted” areas which are in areas of low SES. This informs the income limits for the program. https://t.co/HuGWaJNqIF

@CHIdocumenters If approved the program will begin in April. The following banks worked with the most recent iteration of the program. https://t.co/TLSCNcfAV4

@CHIdocumenters Ald. Moore is up asking for a breakdown by ward from the latest program, which is provided. https://t.co/IC0CpEdoTn

@CHIdocumenters Ald. Thompson is up. He asks about the income recipients.

Morales explains that there are several income levels that HUD uses. She explains that the buys go up to 150% of median income.

@CHIdocumenters Ald Thompson asks if the only benefit is the $2000 tax credit.

Morales responds that it is, but it creates an ongoing credit that supports their income requirements for the mortgage process that can be layered with other programs such as downpayment assistant.

@CHIdocumenters Ald. Thompson asks about the 2100 houses that have been a part of the program. He asks about the program status.

Morales says that the program only assists households in good standing and largely recipients have kept their houses and are not in default.

@CHIdocumenters Ald Thompson asks about the selection and advertisement process.

Morales says that the city in January will collect lenders, and then in April when the program launches it will be advertised across the city.

@CHIdocumenters Thompson is asking about if it is a lottery system. Morales explains that there is not a limit to the program. That the program runs until the certificate amount is completed, and if they need more funding they will come back to request it.

@CHIdocumenters Ald. Smith asks if this is a national program.

Morales says that this is a national program that is available through the IRS. However, the Chicago Housing has a larger tax credit.

@CHIdocumenters Morales explains that this is not a credit based on your mortgage but is based on the INTEREST on the mortgage. Thus the program was more popular and attractive during times when interest rates were higher.

@CHIdocumenters Chair Waguespack calls for a vote on the program, which passes unanimously.

@CHIdocumenters Next up is a proposed ordinance changing some aspects of the municipal code in regards to waiving city debt for distressed resident sites

@CHIdocumenters Commissioner Navarra is up to talk about the program titled the Encumbrance Ordinance.

@CHIdocumenters Navarra presents the problem is that sometimes the fees and debt attatched to distressed properties sometimes prevents purchasing and redevelopment. https://t.co/817IAqs0OA

@CHIdocumenters The example she finds is that in the 7th ward, there are 97 vacant buildings, The aftermarket value of an avg vacant 185k building of the average building is $250k, but the cost of city debt/back taxes and soft cost adds an additional 110k on to the cost making it not worthwhile.

@CHIdocumenters The program will do the following https://t.co/dutfb0HHgf

@CHIdocumenters This program would only take a building that the owner is unavailable or deceased, So if the original owner is not able to handle the property. https://t.co/53LGHOtaRn

Navarra explains that there are plenty of local developers that would be required to be used for these programs.

This pool of local developers has been developed by the DoH over the last 5 years.

We are opening up to the floor, Alderman Scott is up: He asks about the issue with back-taxes.

The Landbank does have the ability to get rid of back taxes, and the DoH will work with them to layer support on projects.

@CHIdocumenters Edit . Commissioner Novara.

Alderman Scott asks how the Aldermanic offices can help in the partnerships with the Landbank.

Deputy Commissioner Edwards speaks on this. He says that as he looks into multiple properties in an area each case is looked at by itself.

So sometimes the city DoH will just pay the back taxes, while other areas, when the taxes are too high they will work with the landbank

Alderman Lopez asks about how this is different.

Novara says that we currently don’t have the ability to waive fines/fees/and debts.

Lopez asks if this authority is being given to prevent having to go through court systems.

Lopez points out that when there is a lean on the property it is a primary way that the city will take over abandoned properties.

Edwards says that as of now, there is no one to use leverage against, as there is no ownership available in these properties.

Lopez continues, he says that often the city acts as a passthrough. He speaks on the system where the city places the building in receivership, takes the building over and then lets a developer take it over.

Edwards explains that this would cut out the city as the middleman.

Lopez talks about the vacant properties. He says that he is sure that some of the properties are total rehab, while others are salvageable. He asks about if there is any process to secure a building while waiting for a developer.

He asps asks about the sample $205k rehab cost

Edwards says that the 205k number is not city wide, it is just for a sample building in Ald. Mitchells ward (11). To explain the way that the cost of the rehab and taxes might excede the cost of the rehabbed property.

Edwards explains that this system can be layered with downpayment support, loan-lease support etc,

Lopez says that he wants to not just use non-profit developers, but also for profit developers.

Ald. Dowell is up. She asks for what other reasons other than deceased the property might come into play.

Edwards says that this is when the owner has walked away, and is not responsive to court proceedings.

Ald Mitts is up.
She asks about situations when a person passes away but their banks are involved and tied up in the property.

Edwards responds and talks about that the ordinance will not be able to address bank related debt. That the DoH will work with those banks, but has no legal authority.

Alderman Osterman is up, he talks about how this isn’t about new construction but all the buildings that can be reactivated. He gives the program his full support.

Alderman Mitchell is up, he thanks the Commissioner for coming up with new tactics and listening to the Alderfolks. He says that this is a first but important step.

The motion passes unanimously.

Now we switch to the Department of Planning and Development. This is a series of TIF requests for Chicago Public Schools.

First is an upgrade to the mechanics at Eric Soloria Academy in the 14th ward for $329,000

Ald. Sposato asks how old the school is.

Ald Burke says that the school was built in 2010, and was named for a Chicago Police hero.

Burke waxes poetical about schools named after police officers. He then clarifies the address of the school is different on the ordinance.

Ald. Smith asks what a building automation system as listed in the ordinance.

Ivan Han from CPS explains that it controls the vents, temperatures, actuators etc

This measure passes unanimously.

Next up is item 9, for a TIF funding of $3.8m for replacements of mechanical systems at Irma C Ruiz in the 25th ward.

Hansen from CPS explains the process https://t.co/sPY6pzWAhi

This project passes unanimously.

Next up is a TIF funded project at Spencer Elementary in the 28th ward for $4.2m to replace the roof.

The project will actually cost $8.5m though a little over half of the funds will come straight from CPS.

Ald Ervin speaks in support of the program.

This passes unanimously.

Up to item 12. This is the supplemental agenda, for the city settlements.

First up is the Grayer and Holt v City of Chicago.

This is a lawsuit related to the search warrant of Grayer and Holt. The gun was seen outside, one of which was the gun for the search warrant.

The plantiffs claim that the police did not see the firearm outside ,and that he legally possessed both guns, and that the search warrant was illegally executed.

The guns were returned to the plantiff.
The settlement is for $115k

Ald Cardenas is up. He asks if the officers executed the warrant properly.

Law Department Benson says that it is unclear if he was actually outside with the firearm.

Cardenas says that he believes the officer over the plantiff.

Tabares asks why Holt was at the address.
Benson says she will provide the information after the meeting.

Ald. Napolitano, asks about the gun that was inside the house.

Benson says the officers claim that it was inside a coat pocket, but the plantiffs claim it was inside a lockbox.

The $115,000 settlement passes.

Tabares, Beale, Cardenas, Quinn, Reboyas, Austin, Reilly, Napolitano all vote no.

Next up is Bonds vs Chicago. This is a case where Bonds, the mother of Harris, calls the police on Harris who was having a mental health crisis.

Harris had assaulted an officer previously, officers who responded to the case found Harris who lunged at the officers and was killed

Cardenas is up. He asks why she is suing.

Benson says that the lawsuit is about the CIT training that the City of Chicago had provided at the time. She says that this is a question about the cost of litigation.

Cardenas is asking if this will lead to more lawsuits. He asks if there might be cases where people sue due to the cops not showin gup.

Benson says that the is not a legal liability (as cops do not have a duty to respond)

Ald. Osterman. asks about if the plantiff was killed, the year, and the number of CIT trained officers then and now.

Though Benson says the the number has increased drastically now since 2013.

Ald. Reboygas asks if this is the man that was shot 29 times.

It is clarified that he was shot at 33 times and was hit 29 times.

Napolitano and Rielly both ask about the fact there was a CIT trained officer who was injured at the start of the interaction.

Benson points out that the plaintiff had left and there are no CIT trained officers to respond and that the plantiff will point out that there was no need to enter the house until a CIT officer shows up.

Ald. Scott is up. He asks about the initial offer.

Benson says that it was initially $3m. The current offer is $125m. She says that production alone is over $100k let alone litigation costs.

Ald. Dowell asks if this was the case where the deceased was shot twice in the back of the head.

Benson says yes .

Dowell asks if ballistics shows that it came from the same gun (aka a double tap).

Benson says she doesn’t have the info but she can see if it is around.

Ald. Cardenas is up. Is asks if COPA was involved.

Benson says that that IPRA was involved at the time and says that it was ruled a justified shooting.

Ald. Sposato asks how many times offiers are trained to shoot.

Benson says that “they are trained to shoot until the target is eliminated.”

Ald. Sposato asks for the motion to be held. Waguespack overrules, and says that questions will be answered before the city council meeting on these Wednesday.

Beale, Garza, Thompson, Cardenas, Quinn, Moore, Curtis, Oshea, Tobares, Reboyas, Sposato, Nopalitano, Rielly, are all nos.

The vote is currently 13-13.

Ald. Waguespack is trying to take a recess. Ald Thompson is objecting.

Ald. Waguespack concedes and keeps the item in committee as it doesn’t pass.

This next case is the big case of Bailey and Bachelor v Chicago (it is two separate cases but the same incident) The proposed settlement is $14m

Their convictions were overturned in 2018.

The two folks combined spent 43 years in prison. Their main evidence was their confession which they claim was fabricated and forced out of them physically.

Chicago has the highest rate of false confessions in the country.

The city thinks if it goes to trial it will settle for 43-50m

There are no questions on this motion.

Lopez pops in to ask if he can vote no on the previous settlement. Which Ald. Waguespack said no.

Ald. Beale asks for a procedural. The previous settlement was “held” not ruled “do not pass”

Waguespack says he knows it does not pass.

Waguespack says the case will go forward as a do not pass and will go to a jury.

Back to the role call.

The $14m Settlement with Bailey and Bachelor passes unanimously.

This is the case of a police interaction over potentially stolen license plates.

The passengers fled on foot. The plaintiff was seen with a handgun in his hand.

The officer claims that plantiff fell to the ground where he crouched and raised his gun.

The plantiff, said that while he was running, he through his gun, slipped , fell, and while he was falling was shot.

The plantiff claimed that he was then shot a second time, while he was yelling “stop. dont shoot me”

There is a witness supporting the plantiff who witnessed the second half of the shooting

Sposato is up next. He says that he has a statement not a question.

“I don’t base my vote on the amount, I vote on what is right”

He says he wants to start fighting these in courts to make sure that the city will not pay people who “do wrong”

Ald. Ervin is up. He says in comment to Sposato that we are “rolling the dice with taxpayer dollars”

Ervin says that he thinks that maybe we should have a briefing on the 1983 process. That if they get the the award the city might be on the hook for 800k+

Ald. Cardenas says the he understands the actual cost in terms of money. But he says there is a moral cost.

Ald Cardenas asks Benson if the guy “was a bad dude”

Benson says that just because someone has a criminal background doesn’t make him a “bad dude”

Cardenas says that this person is a man who shouldn’t be getting anything. That he thinks this is a moral issue that makes it so cops will start saying ” I am not policing, I am not enforcing ” etc

Ald. Sposato says the he is willing to put his money where his mouth is. That as long as other alderman put the money where their mouthes are, he would gladly put it down.

It somewhat seems like we are advocating for betting on court case verdicts?

Roll call vote on this one.

Beale, Thompson, Quinn, Lopez, Moore, Curtis, Oshae, Tabares, Austin, Sposato, Napalitano, (two other Nays that I missed) are no’s

That is a 15-13

On that this meeting closes at 1:30