Chicago News

  • A proposal to build apartments on top of the century-old Isaac G. Ettleson building in the city’s East Lake View Neighborhood and a scaled down Helmut Jahnskyscraper for South Michigan Avenue are up for review today by the city’s Plan Commission.

    Today’s agenda is also noticeably less packed than those held over the past six months, when the Plan Commission was hearing about 6 to 8 applications a month.

    The applications in agenda order:

    #1 - 352 East Monroe Street (42nd Ward) -  An application forwarded by the Chicago Park District for the construction of an 8,000 square-foot concession building within Maggie Daley Park awaits Plan Commission review. The park is protected by the Lake Michigan and Chicago Lakefront Protection Ordinance. In January 2015, the Park District Board of Commissioners approved a concession stand contract with the Four Corners Tavern Group for the design, build-out and operation of a restaurant, a concession kiosk, and the right to cater special events at the park.

    #2 - 3100 South Lake Shore Drive - Application (4th Ward) - This is another application from the Park District seeking a zoning change to expand an existing parking lot.

    #3 - 3817-45 North Broadway Avenue. (46th Ward) - The owner of the former Spin nightclub in Boystown, David Gassman, who also owns several properties in Rogers Park, is behind a proposed eight-story mixed use building that would incorporate the existing Isaac G. Ettleson building currently located on the subject site. Built in the early 1900s, and once occupied by the Hamilton State Bank, the corner lot, two-story structure is known for the white terra cotta eagles crowning the building. According to the zoning application Gassman filed with the city in September, the proposed structure will keep retail at the ground floor, office space and 15 dwelling units on the second floor, and the remaining 110 residential units spread among the third through eight floors. The site is currently zoned B3-3 and Gassman is seeking to establish a planned development. He’s represented by zoning attorney Thomas S. Moore.

    #4 - 920-1006 South Michigan Avenue and 1011-1015 South Wabash Avenue (4th Ward) - The Plan Commission will conclude its meeting with Helmut Jahn’shighly anticipated, but somewhat scaled down, skyscraper for 1000 S. Michigan Avenue. Originally proposed as a more than 1000-foot building for the Historic Michigan Boulevard District, the building would reach 832 feet in height. It includes 506 units, according to the specs listed on the meeting agenda.

    The developers, JK Equities and Time Equities, are seeking a planned development to build an 86-story residential tower on a surface parking lot. The building will have enough parking stalls for 486 cars. Roughly half may be leased out to the public. The neighboring office building, located near the corner of South Michigan Avenue and 11th Street, would be included in the PD. Proposed uses include “school, college and university.” (Columbia College is located on the same block.) Somewhat related, the Landmarks Commission adopted new design guidelines in February that provide parameters for new construction in the historic district. The scaled-down renderings, which shaved about 200 ft from the original plan, align with those guidelines.

    Items Deferred As of Wednesday:

    #1 - 11127-29 South Langley Avenue and 704-706 East 112th Street (9th Ward) - A team of art and neighborhood organizations are behind a plan to transform a 18,500 square foot parcel of vacant land sandwiched between two historic apartment buildings in the city’s Pullman neighborhood to build lofts for artists. The so-called Pullman Artspace Lofts project has been more than five years in the making and calls for the rehabilitation of the two existing historic apartment buildings coupled with the construction of a new 34,000-square-foot, three story building to be located in the empty lot.

    Pending zoning approval, the two rehabilitated buildings would have six units each, while the newly constructed masonry building will hold 26 units, with ground floor communal artist and exhibition space. “[The project] provides the opportunity to integrate historic preservation with cutting edge new construction and create an iconic group of buildings that anchor Pullman’s eastern boundary,” the project’s website notes. All 38 live/work units will be made affordable.

    Pullman Artspace, LLC filed a planned development application with the city in February 2016. According to the Economic Disclosure Statement, the LLC is made up of Minnesota-based Artspace Projects, Inc. (55%), Chicago Neighborhood Initiatives (40%), and Pullman Arts (5%). The project is also designated as a Transit Oriented Development (TOD) due to its proximity to the the Metra. Plans call for 17 parking spaces and 25 bike stalls.

    #2- 1050 West Wilson Avenue (46th Ward) - Cedar Street Capital Partners filed an application with the city in September 2015 under the name “Halsted Commons, LLC” to rezone the former Wilson Avenue Theater and later TCF Bank building into a planned development. Plans call for the restoration of the century-old building and construct an adjacent seven story, dark grey brick mixed-use residential building that would include ground floor retail, 110 dwelling units, and 16 parking spaces. Due to the September filing date, the application falls under the old, 2007 affordable housing regulations.

    The development team is represented by Paul Shadle & Katie Jahnke Dale of zoning law firm DLA Piper. According to the Illinois Real Estate Journal, Ceder Property bought the historic theater building for $625,000, and, according to DNAinfo, local housing advocates are not thrilled with the housing plans for the site. Four people are listed on the Economic Disclosure Statement for Halsted Commons, LLC: David Duckler (33.3% ownership); Alex Samoylovich (25.5%), Jay Michael(25.5%), and Tom Kim (10%). Michael, a well-known developer in Uptown, died in January from non-Hodgkin lymphoma.

  • Committee funds controlled by the city’s 50 aldermen contain more than eight million dollars, with Ald. Ed Burke (14), Ald. Brendan Reilly (42), and Ald. Walter Burnett(27) controlling the biggest war chests as of the most recent reporting period. Details of all 77 committees are on this spreadsheet, with links to D-2s for the first quarter of 2016, spanning January 1 through March 31, 2016.

    Last quarter’s most successful fundraisers were involved in tight campaigns. Ald. Michelle Harris (8), who lost her bid for Clerk of the Circuit Court against incumbent Dorothy Brown and Jacob Meister, reported close to $200,000 in individual contributions to her Clerk campaign committee for the most recent quarter, though her spending, as we detail below, didn’t help her chances. Ald. Brendan Reilly (42) who supported state legislature hopeful Jay Travis with mailers against Rep. Christian Mitchell, reported about $275,000 in total receipts for the quarter.

    Reilly and Ald. Pat Dowell (3) both supported Juliana Stratton in her successful bid against Rep. Ken Dunkin. Dowell spent $122,000 last quarter, including on printing services and consulting.

    Some committee funds took big hits this past quarter, not all due to campaign spending. Ald. Brian Hopkins’ (2) committee took a $68,000 hit in its final fund tally that wasn’t campaign related. He made $30,000 in principal payments to himself, and also paid staff and consultants. Ald. Ed Burke (14) also ended the quarter down by about $120,000, which didn’t put much of a dent in the $2.1 million account balance. Ald. Danny Solis (25) also ended the quarter down by about $50,000. His committee spent thousands on food (including many Costco trips), parking meter costs, $15,000 to New Chicago Consulting, and on a $10,000 contribution to Friends of Anita Alvarez.

    Biggest spenders:

    • Citizens for Pat Dowell (3) spent close to $125,000 in the first quarter of 2016, mostly on campaign work and advertisements. A sizable chunk, nearly $40,000, went to campaign work provided by Bamani ObadeleIn 2011, Obadele, an Illinois Department of Children and Family Services appointee under Gov. Rod Blagojevich, was sentenced to half a year in prison for steering and pocketing DCFS money to companies in which he held a stake, and using some of that money for a trip to Jamaica.

    • Citizens for Michelle Harris, the committee for Ald. Harris’ (8) run for Clerk of the Circuit Court, spent $379,450 this past quarter. More than half, about $225,000, went toward printing and postage from Breaker Press. $7,200 was paid to Loren Harristhe alderman’s daughter, for “contract work.” Harris also paid $30,000 in early February for a poll from Tulchin Research, a San Francisco-based firm.

    • Ald. Brendan Reilly’s (42) committees, Citizens for Alderman Reilly and the 42nd Ward Democratic Org, spent a combined $310,000 last quarter. Reilly paid $7,500 to his former special assistant, Melissa Hoffman, for consulting work, as well as $25,000 each to LBH Chicago LLC and VX Consulting. LBH is also counts Cong. Robin Kelly and State Rep. Ann Williams as current clients.

    • Ald. Ed Burke’s (14) Friends of Ed Burke committee paid exactly $61,000 for federal and $21,000 for state taxes last quarter, per its expenditure reports. That’s not counting quarterly estimated taxes and an additional $5,100 paid out of Burke’s Burnham Committee. About $24,000 total was spent between the “Friends” committee and another Burke-controlled committee, the 14th Ward Regular Democratic Org, on gifts from Bentley Consulting Services. Burke also spent about $13,000 on printing services from Rider Dickerson.

    Odds and Ends

    • More than half the committees run by aldermen owe debt, ranging from $1,000 - $5,000 for aldermen like Leslie Hairston (5), Anthony Beale (9), Mike Zalewski (23) –to the $20-$30,000 range like Ald. Gilbert Villegas (36), Ald. Scott Waguespack (32), and Ald. Michele Smith (43). Many are personal debt or from colleagues’ campaign committees. But Ald. Howard Brookins (21) takes the cake, with about $320,000 of debt between three campaign committees. The bulk, $317,000 worth, is from his Friends of Howard B Brookins, Jr committee, and dates back to 2007 and 2008. Brookins owes $125,000 to IPA Travel Services, LLC, close to $50,000 each to John E. Davis and John Davis Montgomery, more than $45,000 to the Competence Group of Chicago, Inc., and $25,000 to attorney Larry Rogers Sr.

    • Only two aldermen have invested committee funds - Ald. Tom Tunney (44) and Ald. Ed Burke (14). Tunney has about $192,000 invested at MB Financial. But like much else, Burke does it bigger, investing a whopping $6 million: about $3.1 million in Credit Suisse, and $2.9 million in Northern Trust.

    • The 43rd Ward’s new Democratic Committeeman, Lucy Moog, will inherit a nice nest egg. The 43rd Ward Democrats fund, managed by Ald. Michele Smith, ended the quarter $36,000 up from the previous one, and has a balance of more than $100,000.

    • Ald. Pat O’Connor had some of the highest in-kind contributions to his committee for the quarter, at more than $10,000. Most of those contributions were donated gifts fit for a raffle or auction, including diamond and sapphire jewelry, White Sox tickets, Wrigley Field rooftop passes, and iPad Airs.

    • Ald. Ariel Reboyras (30) had nearly as many itemized as non-itemized expenditures.

  • Gathered on stage at the auditorium of Drake Elementary in Bronzeville, a 96% black and 98% low-income school, CPS CEO Forrest Claypool, Board of Education President Frank ClarkAld. Pat Dowell (3) and a group of mostly black pastors and community representatives said Gov. Bruce Rauner’s education budget proposal–which reduces CPS’ allocation by $74 million–discriminates against Chicago children. Claypool called the press conference the launch of a “grassroots campaign” to get equal funding for the system.

    “The message from Springfield is clear: your children are not as important. Your children’s future are not as valuable. Your children can do with less,” Claypool said, calling the budget “morally repugnant” and repeating that it was “separate but unequal.” He referred the crowd to a new CPS website, which says the current funding approach discriminates against low income and minority children across the state. The website auto-fills emails to local legislators calling the recipient to work with State Rep. Christian Mitchell and State Senator Andy Manar, “who are fighting for fair funding for all of our schools.” Claypool also has a new Twitter handle.

    “Most Chicago Public Schools students are children of color. Most are from families that are in the low income bracket,” Clark told a crowd with members of the Power of Parents, Metropolitan Faith in Action, and Illinois Grassroots Chicago that filled half the auditorium. Clark called Rauner’s budget “punitive and discriminatory,” and said it punishes kids for living in Chicago.

    Some of the biggest applause from the bussed-in parents came during Dr. Byron Brazier’s turn at the mic. “[Gov. Rauner] has no regard for people, especially those that have been systematically and institutionally differentiated, disadvantaged, discriminated, and victimized,” said Dr. Brazier, a pastor of the Apostolic Church of God in Woodlawn and a member of the city’s powerful Public Building Commission. “It is intended to continue these racial and economic practices of the past and further accelerate the differences between the haves and the have nots.”

    The new CPS campaign, 20% for 20%, argues that Chicagoans contribute 20% of the state income tax, but CPS students receive 15% of the state’s total funding. The missing 5%, CPS says, is “enough to save our teachers and class sizes,” and is essential for the balanced budget Claypool has promised in the coming weeks.

    He said CPS does not have plans to engage in long-term borrowing. Instead it will issue tax anticipation notes. “We are talking about a revolving line of credit, which is renewed based on cash flow needs and then paid back as the revenues come in from the two big chunks of funding… to cover the differential between timing of when payments come in and when we need to spend funds,” he told reporters after the event.

    By the time Claypool and Clark’s media availability had wrapped, the auditorium was emptied and parents from the audience were loaded onto school buses.

  • The Chicago Police Department has been making courtesy calls to influential South Side pastors this week in anticipation of a release this week by CPD of a police-involved shooting video stemming from an armed robbery incident from several years ago, Aldertrack has learned from pastors who received the calls.

    The video shows a female armed robbery suspect pursued by police in a car, shot at while in pursuit, pulled out of the car, and, in a melee with the police, then tasered, a source familiar with the video told Aldertrack yesterday. The victim has since pled guilty and is currently serving time in prison, the source said.

    One South Side pastor, who spoke on the condition of anonymity, called the courtesy call “unusual” and that the department anticipates public outcry, possibly because of the way officers allegedly confronted the woman. Sources could not confirm the woman’s name or race or when the incident occurred.

    That information was not provided in the calls, multiple sources said. Contacted for comment late yesterday afternoon, the Police Department’s News Affairs Office would not confirm the video release.

  • After rejecting an independent fact finder’s report over the weekend on the stalled contract negotiation between its members and the school district, Chicago Teachers Union President Karen Lewis repeated her demands for more concessions and threatened to strike after a state-mandated 30 day cooling off period if Chicago Public Schools does not comply. All while CPS CEO Forrest Claypool reiterated the bargaining terms outlined in the fact finder’s report and urged ratification, so the district can focus on finding money to pay its bills.

    On Monday, Lewis called the fact finder’s report “dead on arrival,” because despite across the board raises for its members, which she says don't factor the added pension contributions members will be forced to pay, the contract doesn’t go far enough to close what Lewis described as “devastating loopholes.”

    “The biggest drivers for the district’s fiscal crisis are charter expansion and debt service,” Lewis told reporters at CTU headquarters in downtown Chicago. She said she wants enforceable class-size limits, a “real” charter moratorium, an end to school closings and consolidations, a dedicated pension levy, and a commitment to “progressive revenue” solutions in Springfield.

    “CPS is searching for cash under rocks, seat cushions and in their uncle’s pants pocket,” Lewis went on to say. “Instead of robbing Peter to pay Paul, the Board should work aggressively to fight for progressive, long-term revenue options in order to stabilize the school district and protect public education in our city.”

    The union has 27 days left (as of today) in a state-mandated “cooling off period” before it can legally authorize a strike. And to call a strike, the union must provide 10 days notice. Asked if this could impact the end of the 2016 school year or if the union plans to strike next fall, Lewis said, “I’m not giving CPS my playbook,” adding that the union needs time to regroup and discuss next steps.  

    Meanwhile, Claypool, in a separate availability with reporters held less than an hour after Lewis’, said that the deal on the table–the contract the district gave CTU leadership back in January–is the best contract the union will get given the district’s “unprecedented” financial crisis. The district is facing a $1 billion deficit and expects to finish this school year with barely enough cash on hand to cover two payroll days.

    “We offered an incredibly generous deal given the fact that the district is near insolvency,” CPS CEO Claypool told reporters, saying he was “perplexed” the that the rank and file members of the union weren’t given the opportunity to vote on the contract the leadership had earlier approved.

    “It’s sort of an Alice in Wonderland world within the CTU these days,” he added, saying he was available around the clock to negotiate. Claypool used the Alice in Wonderland analogy when referring to Gov. Bruce Rauner’s school budget proposal last week. Lewis, on the other hand, said “we’re too old for 24/7 negotiations,” and asked for time to talk with members to get a sense of what teachers want.

    ”We’re not going to kill ourselves going over the same stuff,” Lewis said. “What we’re going to try to do is meet on Thursdays like we have been. Try to find where other areas to close these loopholes.”

    Pressed to explain the likelihood of a strike, Lewis said “100 percent today,” but that could go down to “95 percent” next week.

    The contract proposal on the table would phase out the 7% pension pickup the district pays on behalf of teachers by 2017, adds an 8.75% cost of living adjustment (COLA) and step and lane increases, a retirement incentive, and includes classroom changes regarding testing and paperwork, among other items.

    Earlier this year, CTU President Lewis called that contract proposal a “serious offer” and forwarded it to the union’s Big Bargaining Team for approval. The 40-member bargaining team unanimously rejected the offer on February 1st, prompting an independent arbitrator to commence fact-finding.

    Both sides do however agree that Springfield and, more specifically, Gov. Rauner are to blame for the district's budget gap.

    “We are together on [lobbying in Springfield]. We are not together on the silly contract proposal,” Lewis explained. CTU plans to go to the state capitol on Wednesday to lobby on behalf of a proposed millionaires tax and a bill that would make state education funding a priority.

    Somewhat echoing that sentiment, CPS CEO Claypool urged the union to agree to the contract, so they both could join “hand in hand in Springfield.”

    The district is expected to unveil its budget next month for the 2016-2017 school year. It will be balanced, Claypool said, adding that it will rely heavily on borrowed money. “We have to secure a new line of credit to stay solvent,” he said. “We can’t pay for anything absent a line of credit.”

  • On Saturday an independent fact finder released a report on the Chicago Public Schools and Chicago Teachers Union bargaining process. Below are the basic details of what happened and the positioning of the two groups.

    • The report, authored by neutral party negotiator Steven Bierig, was released Saturday morning, it largely endorsed the offer to teachers put forth by CPS January 29 and rejected by CTU.

    • The fact finding plan (download here) recommended:

      • A four year contract.
      • Varying wage increases between zero and 3.75% over four years.
      • A resumption of “step and lane” wage increases, but not until second year.
      • Phase-out of 7% pension contribution over two years.
    • The Chicago Teachers Union immediately rejected the fact finder plan (download here) arguing that the plan effectively reduces teacher pay.

    • Teachers have been demanding:

      • A two year contract.
      • A 2% salary increase each year.
      • No change to step and lane wage increases and pension contributions.
    • CTU says the schools are “broke on purpose” and as a result, CPS “simply cannot afford to sign a contract” because of the debt it carries. In CTU’s opinion, the negotiator should be allowed to take into consideration the school system’s need to seek additional funding, not merely its current finances.

    • CTU points out the school system will have a negative cash position of -$846 million by June 30 through short-term borrowing. Including long-term borrowing, CPS will be $6.7 billion in debt.

    • CTU claims the problems stem from CPS refusing for years to “secure stable… funding” for operations, and that problems are compounded by “Governor Rauner's jihad against CPS”

    • CPS concurred with fact-finder plan (download here) rejected CTU demands, saying it would cost $140 million more over two years

    • CPS projects it will have only $24 million cash on hand at the end of the school year, two days of payroll.

    • CPS says the “root of the problem” is with the state and Gov. Bruce Rauner who has committed “treachery” by subverting last January’s bond issuance.

    • CTU leaders have said they are preparing to strike. They may legally strike 30 days after the release of the fact finding plan, beginning May 16. CTU must provide a 10-day notice before striking. The school year is scheduled to end on June 21.

  • Chicago has a new Police Superintendent, Eddie Johnson, and 4th Ward Alderman, Sophia King. As the Council approves both, a scathing task force report takes on the CPD over racist policies, and aldermen vote to settle two police-involved deaths totaling nearly $7 million. We’ll look at a couple introductions reforming the department, and an upcoming report that will impact the contract fight between Chicago Public Schools and the teacher’s union.

  • An ordinance authorizing up to $375 million in general obligation bonds was introduced by Board President Toni Preckwinkle Wednesday. The issuance planned for June 1, 2016, “would permit the refunding of approximately $330 million of Series 2006A Bonds, which currently are subject to an average interest cost of 4.83%,” the President’s Office said. “The Refunding Bonds that would be issued are anticipated to have a blended cost of capital below 4%. This is expected to provide reduced interest cost savings of approximately $20 million and is part of the County’s long-term plan for managing debt service.” The senior manager is Loop Capital Markets LLC, Barclays Capital Inc.

    Last June, Moody’s downgraded the County’s general obligation debt to A2 from A1 with a negative outlook, citing the county’s unfunded pension liability and pressures on the County’s tax base from CPS and the City of Chicago. The downgrade also cited strain from the Cook County Health and Hospitals System on the County’s general operating fund.

    Some of those concerns were addressed in the FY16 budget. The County’s allocation to CCHHS has gone down by 75 percent since FY09. It was $481 million then, and is $125 million for this fiscal year. Commissioners have also voted to begin contributing actuarially required funding to County pensions. They will use part of the proceeds of the County’s sales tax hike to make those increased payments.   

    Property Tax Exemption

    property tax break exemption sailed through the board Wednesday, allowing employees who worked for the former owner of a property to be eligible for the Class 7C tax break. The current owner or employer who can prove they weren’t responsible for site contamination can also be eligible for the break. A 7C break gives new construction or rehabilitation a reduced property tax assessment for five years–10% for the first three years, 15% for the fourth year, 20% for the fifth year, then returning to the 25% assessment afterward. Comm. Larry Suffredin said the speedy passage ahead of the next board meeting was for “exigent purposes,” a pending 7C break. 

    New Local Business Bid Incentives

    A doubling in bid incentives for local businesses was one of many introductions from Comm. Richard Boykin Wednesday. This ordinance amends the County’s procurement code to give local companies an even bigger advantage in the bidding process. The preamble offers the justification that “spending public dollars with Cook County businesses serves the sound policy of increasing employment, fostering economic development and strengthening the economy of the County.”

    The amendment compels the county’s procurement office to choose local bidders as long as their bid is no more than 10 percent higher than the lowest non-local bid, or if the lowest bidder receives Earned Credit, the local bid doesn’t exceed that credited bid by more than 7.5%. Boykin introduced a series of job creation measures Wednesday, funded by a $0.04 hike in the gas tax.

    County Employee Retirement Savings Loans

    A resolution to start allowing Cook County employees to loan themselves retirement savings was introduced by Comm. Luis Arroyo, Jr. His resolution asks the county’s Deferred Compensation Committee to work with the County’s deferred compensation plan administrators to establish a loan provision option in the county’s retirement fund, which has more than $1.2 billion in it. The preamble to Arroyo’s resolution says other governments have opened up the option of letting employees borrow against their own contribution to make down payments on homes, reduce credit card debt, or pay for tuition. “Employees who take a loan, are borrowing from their own Plan account with no credit check, easy approval and repayment of the loan, plus competitive interest rates back to their own Plan account in monthly installments within a specified period of time.” Arroyo would like to see a plan by the end of the 3rd Quarter of this fiscal year.

    New Unincorporated Cook Landlord Fee

    A $50 per year, per unit renter’s license for landlords in unincorporated Cook County would be mandated starting next summer, under a proposal from Board President Toni Preckwinkle. Rentals would be subject to inspection every four years from the Department of Building and Zoning to ensure compliance with local building and zoning regulations codes, and the county’s Public Health and Private Nuisance Ordinance. According to a 2014 Civic Federation report, approximately 2.4%, or 126,114, of Cook County’s 5.2 million residents live in unincorporated areas of the County.

    Animal Abuse Registry

    An animal abuse registry is being pitched by Commissioners John Fritchey andLuis Arroyo, Jr. “The number of cruelty cases reported daily on various media sources is not reflective of the actual number of cases, as most cases are never reported, and most animal suffering goes unrecognized and unabated,” theordinance’s preamble says. It creates a registry of animal abusers that will be maintained by the Sheriff’s Department. No shelter, pet shop, pet seller, or rescue organization would be able to transfer ownership of any animal to someone listed on the offender list, or someone living with an abuser. The ordinance would take effect November 1, 2016. Comm. Fritchey has been a frequent critic of the County’s Animal Control agency, and also introduced an ordinance putting the Sheriff’s office in charge of enforcing the ordinance regulating pet sales, instead of Animal Control.

  • The City Council’s Zoning Committee has scheduled a May 17 hearing on the Mayor’s proposal to simplify and update the city’s downtown floor area bonus formula for the first time since 2004.

    The plan Mayor Rahm Emanuel introduced this week would completely overhaul the process currently used to manage square footage to buildings in the city’s downtown area, and links fees collected for those increases to investments in some of the city’s most economically underserved neighborhoods. The proposed changes are threefold:

    1. Simplify and update the downtown floor area bonus system;

    2. Provide new funding sources to encourage commercial development in neighborhoods lacking private development; and

    3. Accommodate ongoing central area growth through an expanded downtown zoning district

    #1 Simplifying the Bonus System

    First, the plan throws out the current list of mostly design-based bonuses that developers can choose from, such as winter gardens and front setbacks, in exchange for a greater Floor Area Ratio (FAR). A building’s FAR is the total square footage of a project divided by the area of the lot. Under the current zoning code, there are 20 different bonuses to choose from, each with its own funding formula.

    Under the revised plan, a developer doesn’t pick a type of bonus, they simply decide if they want to take advantage of the bonus, making a single payment to the city. As the code is currently written, a developer can pick more than one bonus and pay a fee for each. For example, a developer can commit to adopting a local landmark and add a public plaza in exchange for more density.

    Under the proposed changes, any new construction project seeking to increase its FAR would have to go through the Planned Development process, which means more paperwork, department scrutiny, and approval by the Plan Commission, before it reaches the City Council for approval. Currently, a developer can take advantage of an FAR bonus through a simple map amendment application subject only to department and Council review.

    This could lead to longer wait times.  A planned development review takes an average of about 6 months, while a map amendment application takes 2 to 3 months. Lately, there has been a surge in the number of planned development applications, resulting in a slight backlog. But that was due mostly to a rush of applications filed before the beefed up affordable housing requirements took effect last October, and DPD is nearly done reviewing those applications, a DPD staff member told Aldertrack.

    The calculation for the new bonus: Cost of 1 square foot of floor area over the the base FAR = 80% x median cost of land per buildable square foot.

    According to an example provided by DPD, if one square foot costs $43 and the proposed building is 36,000 square feet, then the total bonus payment is $1,238,400.

    The city would base the cost of land on sale prices in the last five years, and DPD would be in charge of updating those numbers at least once every five years.

    If a developer has a pending zoning application that takes advantage of an FAR bonus under the current system, they won’t be impacted by this ordinance, unless they plan to amend their application. And any existing development in a DC-16 or DX-16 zoning district could apply for additional density, up to a 10% increase in FAR, if this ordinance is approved in its current form by the City Council.

    #2 Where the Money Goes

    Like the current bonus system and the affordable housing requirements, a developer would make that payment prior to receiving a building permit. If the project is to be constructed in phases, payment is due at the start of each phase. The city would disperse the money among three funds, with the largest chunk, 80%, put into a Neighborhood Opportunity Fund, which would help support commercial development projects in the city’s poorest neighborhoods. This includes parts of Austin, West Garfield Park, North and South Lawndale, Englewood, West Englewood, Chatham, Pullman, South Deering, and Hegewisch, among others. (The full map).

    According to DPD, the city used 40 years worth of census data (1970-2010) and relied on a recent neighborhood analysis by E.C. Delmell to determine eligible neighborhoods. Specific criteria the department looked at includes: percent of single women, percent of dropout rates, percent of food stamps, and percent of unemployment. Other variables pulled from the Delmell study: median home value, owner-occupancy rates, and age (over 59 and under 19).

    As for the types of community amenities that could be supported through this new fund, the city gives the example of grocery stores, restaurants, and cultural facilities. The money could also offset site preparation costs, like acquiring or rehabilitating existing buildings, as well as providing job training programs.  

    The goal is to create an anchor development that will lead to further investments, similar to the new Whole Foods currently being built near Kennedy King College in Englewood. In fact, the draft ordinance explicitly states these new investments must “complement and revitalize the areas in which they are located.”

    Priority will be given to projects that have the potential to leverage private, state and federal dollars; show a clear path to financial closing and construction start; provide goods and services where they are lacking; commit to hiring from the local neighborhood; among other criteria.

    Chicago Neighborhoods Now, a city-run initiative created within the last year, would be in charge of determining project eligibility and the community review process. Housing and Economic Development Deputy Commissioner Brad McConnell oversees the program and their website already has several neighborhood opportunity plans detailing potential investment needs. The site will be regularly updated, and DPD is drafting a form that businesses, entrepreneurs, and developers can use to apply for the funds.

    City Council approval would be required for any project with a price tag that is more than $250,000. And the DPD Commissioner would have the discretion to set additional parameters and enter into third party grant agreements to disperse the funds.

    To make sure that downtown residents aren’t left out of the equation, since they have to live with the new bigger and taller buildings, DPD will split the remaining 20-percent of the money collected into two separate funds: a City-wide Adopt-A-Landmark Fund and a Local Impact Fund.

    The former would support the restoration of official city designated landmarks, ofwhich there are 334. The Commission on Chicago Landmarks would have the authority of approving the scope of work and budget for restoration projects. But there are caveats: “[DPD] may direct the applicant to make payments directly to landmark property owners for authorized uses”; and the improvements must go towards renovation work that is publicly visible (so, mostly facade work).

    The Local Impact Fund would support local improvements within 2,640 feet of the new development. (This fund was excluded in the original draft, and was only added following concern from one downtown alderman, a City Hall source told Aldertrack.) This fund would pay for all the sidewalk and local improvement that are currently available under the existing bonus system, e.g. off-site parking and open space (public plazas), pedestrian and streetscape improvements (like wider sidewalks, trees and lights), and transit infrastructure (CTA improvements).

    Money from the local impact fund could also go towards the local public school. “Upon the recommendation of the Commissioner of Planning and Development, after consultation with the Chicago Board of Education and the alderman of the ward in which the planned development site is located, the planned development ordinance may allocate all or a portion of the 10% local impact component” to the Public Schools Capital Improvement Program, the ordinance states. That program supports construction of new schools, school expansions, and related improvements. Ironically, there is currently a “Chicago Public Schools Capital Improvements Fund” listed among the 20 bonuses developers can currently take advantage of, but according to DPD, no one has taken advantage of this bonus within the last four years.

    Developers would have the opportunity to opt out of the Local Impact Fund and instead invest in a project of their choosing as long as they receive approval from the local alderman and DPD.

    #3 Expanding the Downtown District

    As the zoning code exists today, a developer can only take advantage of an FAR bonus if they plan to build within the designated downtown district. This ordinance would expand those boundaries to make more land available for the bonus, netting more money for the overall plan. This doesn’t mean that the ordinance would automatically rezone the surrounding neighborhoods into a D-zoning district, but rather, through the planned development process, developers would be allowed to apply for an upzone to a D-district.

    Preliminary Maps: (West Expansion / Northwest Expansion / North Expansion / South Expansion )

    Downtown Districts provide for the greatest density and it is intended to promote a “high-intensity office and employment growth within the downtown core,” by accommodating a “broad mix” of office, commercial, public, recreation, and entertainment uses.

    This expansion, according to Marisa Novara with the Metropolitan Planning Council, could help Chicago with its declining population. “We have talked a lot about the need to grow population more aggressively, where there is demand...we should grow,” Novara told Aldertrack, explaining that the city’s biggest areas of population growth were in the downtown Loop area.

    Asked if this could potentially lead to lead to a long, drawn out neighborhood review process, since density tends to get a lot of local homeowners up in arms about lost sunlight and views, clogged sidewalks, and snarled traffic, Edward Kus, a zoning attorney with Taft Stettinius & Hollister, said these areas already have their fair share of density. “It's not like you are going into the bungalow belt,” he explained.

    New Design Requirements

    The ordinance also updates on-site building and surrounding landscaping requirements for new developments. Some highlights:

    • Transportation: It adds one provision: “When new streets are required for large-scale, multi-building developments, the new streets should reconnect the existing street grid.”

    • Parking in “D” Districts: A parking overhang, or “porte cocheres”, is “strongly” discouraged. Under the current code, these structures are “generally” discouraged. The draft ordinance also emphasizes the city’s disdain for above ground parking in downtown buildings, which seems to be the norm of late. “Underground parking is strongly encouraged for superior building design that eliminates blank walls at street level for an improved pedestrian experience,” the ordinance reads (the italicized section was added to the ordinance).

    • Building Features: Primary pedestrian entrances should be “obvious to pedestrians”, and “active uses such as retail or residential, as appropriate” should be included to screen parking garages from view. (Again, DPD does not like these massive parking garages at the base of buildings). Developers are strongly encouraged to make sure building facades at pedestrian level are “appropriately scaled within the context of the existing streetscape.”

    • Building Design: New developments should respect the “existing context of a site” in its design. “This includes the existing general size, shape and scale, site plan and materials of surrounding properties.” And buildings to be located at intersections should have “prominent design and lighting programs, due to their visibility.”

    • Adds Definition For What Constitutes A “High-Rise” Building: Any new construction over 80 feet in height. Under the new plan, these buildings would be required to use upper-story setbacks of at least 10 feet (under the current code they are only “encouraged” and no space requirement is listed). There are exemptions to this rule: Setbacks are not permitted on LaSalle Street between Madison Street and Jackson Boulevard, “unless the upper-level setbacks occur at a height above 175 feet.”  Upper-level setbacks are not required and may not be used on State Street or Wabash Avenue, between the Chicago River and Congress Parkway, “unless the upper-level setbacks occur at a height above 55 feet.”

  • Out of more than 1,000 introductions at City Council this week, here’s a few interesting ones we didn’t get to yesterday.

    New City Gas Tax

    fuel tax ordinance from Ald. Gilbert Villegas (36) would increase the city gas tax from $0.05 to $0.12 starting May 1, 2016, with proceeds dedicated to pay for construction, repair, upkeep, and maintenance of roads, highways bridges, alleys, crossings, tracks and other public ways going forward. At a press conference Wednesday, Mayor Rahm Emanuel said he’s pro-infrastructure, but believes the plan should go through Springfield and that “Chicago not try to create itself an island.”

    B&B Fee For Homeless Housing

    A new 4% tax on gross rental or leasing charges at B&Bs and shared housing units would fund supportive services attached to permanent housing for homeless families, under a proposal from Ald. James Cappleman (46). Cappleman, a Licensed Clinical Social Worker (LCSW) whose ward includes Uptown, has been a proponent of “housing first” to address homelessness. His introduction is just one of many proposals changing regulation or imposing new fees on shared housing or vacation rental units: there’s one from Mayor Emanuel, another regulating renting bungalows from North Side aldermen, one tightening B&B restrictions from aldermen with wards close to downtown, and another calling for better enforcement of current rules from Ald. Brendan Reilly (42). Hearings on the proposals have been delayed, in part, sources say, because of former Ald. Will Burns’ (4) exit from council to lobby for Airbnb.   

    Animal-Related Ordinances

    Several animal-related ordinances were also introduced Wednesday. Ald. Brian Hopkins (2), whose communications director cited coyote spottings as far south as Streeterville, is calling for a humane coyote management programAld. Raymond Lopez (15), the father of eight dogs, has called for hearings on “state-sponsored euthanasia” at the city’s Animal Care and Control. He also co-sponsored an ordinance with Ald. Ed Burke (14) calling for dog catchers to use micro-chipping technology when impounding strays to get them home faster.

    The same day, Mayor Rahm Emanuel announced he’d concluded a new search for the new head of Animal Control: Susan Russell. She is “an attorney by trade,” according to a release from the Mayor’s office, and an “an active volunteer over the past 20 years in a number of animal and community groups.” Russell has also authored Shelter Dog Kisses, We Can’t Go There. We’re Bears, and A Ruff Road Home: The Court Case Dogs of Chicago.

    Arming Airport Police Officers

    Ald. Chris Taliaferro (29), a former police officer, has introduced an ordinancerequiring special policemen at City airports to carry guns, which they are currently unauthorized to do. Taliaferro has been working on the ordinance for months, in part in response to a CNN report from December: “Guidance to unarmed aviation police: Run and hide”.

    Patio Alcohol Sales

    Outdoor patio alcohol sales would be cut off at midnight in the central business district under an ordinance from downtown Ald. Brendan Reilly (42). Nearly identical ordinances have been passed by Reilly in years past, just ahead of warm weather, and all expiring December 1.

    Speed Camera Warnings

    Ald. Roberto Maldonado (26) wants to warn drivers when they’re approaching a speed camera. He introduced an ordinance calling for “No less than three such signs visible to traffic approaching the automated speed enforcement system.” The ordinance has 29 sponsors.

    Property Tax Rebate

    Members of the Progressive Caucus have introduced a property tax rebate program ordinance, a few weeks before a deadline for Springfield to consider Mayor Emanuel’s expanded homeowners exemption. In a resolution passed alongside this year’s record property tax hike, aldermen agreed to pursue a rebate program if Springfield didn’t pass Mayor Emanuel’s amendment doubling Chicago’s homeowner’s exemption from $7,000 to $14,000 by April 30. Ald. Joe Moreno (1), a sponsor of one of many rebate ordinance, called for a hearing on rebate programs weeks ago, but there’s been no movement so far.

  • The Cook County Democratic Party yesterday unanimously re-elected Joseph Berrios to a sixth two-year term as its chairman.

    While the event lacks much of a surprise today, this time a year ago, Berrios’ leadership seemed to be in doubt, as the alderman he backed in his 31st Ward was defeated by political newcomer Millie Santiago, despite millions of dollars available to the campaign and a vaunted ward organization at his disposal.

    Since then, Berrios seems to have mended fences with fellow Northwest Side pols, affording him a bit more breathing room.

    In addition, the party unanimously re-elected its eight other officers – Cook County Board President Toni Preckwinkle, executive vice-chairman; State Rep. Lou Lang, executive vice-chairman; Cook County Commissioner Tim Bradford, first vice-chairman; Ald. Carrie Austin, city vice-chairman; State Sen. Don Harmon, suburban vice-chairman; Norwood Township Comm. Robert Martwick, Sr., secretary; State Sen. Antonio Munoz, treasurer, and County Recorder of Deeds Karen Yarbrough, sergeant-at-arms.

  • Releasing what is likely the most forceful Chicago city-sponsored document on race and criminal justice ever, Police Accountability Task Force Chair Lori Lightfootdelivered a 45-minute, unflinching presentation at the Harold Washington Library yesterday afternoon with her fellow Task Force members, recommending a wholesale overhaul of Chicago Police Department training, the police union bargaining agreement, personnel discipline and a significant increase in civilian oversight of the department.

    Download 18 Page Executive Summary – Download Full Report

    Few sacred cows went untouched by the report, beginning with the opening sentence, “A painful but necessary reckoning is upon us. That is what these times demand.”

    Originally scheduled to be released today, according to a source familiar with the task force, the report release was moved up a day to respond to the leaked executive summary reported by the Chicago Tribune on Tuesday afternoon. There were few differences between the leaked version and the final release: some softening of language and a few more bullet points added.

    Lightfoot personally wrote most of the 200 page report, the Aldertrack source said, especially the executive summary–the part that packs the most punch. While there were 39 people on the task force, the main contributors were Lightfoot, Deval Patrick, Joe Ferguson, Randolph Stone, Sergio Acosta, Victor Dickenson, Maurice Classen, Alexa James and Sybiil Madison-Boyd (bios here).

    Quoting the four most poignant findings:

    “We arrived at this point because of racism.

    “We arrived at this point because of a mentality in CPD that the ends justify the means.

    “We arrived at this point because of a failure to make accountability a core value and imperative within CPD.

    “We arrived at this point because of a significant investment in human capital.”

    The majority of the executive summary builds a careful case, using data and testimony from the four community meetings and three youth meetings, that change to Chicago’s criminal justice system is long overdue.

    The final portion of the executive summary contains 25 specific recommendations that run the gamut from recommending creating a Community Safety Oversight Board, replacing the Independent Police Review Board with a different system, expanding body cams and to create an anonymous hotline for police officers to lodge complaints.

    When Lightfoot released the report yesterday afternoon at 2:00 p.m., she was still scheduled to deliver the report to Mayor Rahm Emanuel for the first time at 4:15 p.m., so she could not speak to the Mayor’s level of support. For his part, Mayor Emanuel said in his 1:00 p.m. press briefing yesterday that he had not looked at any part of the report, so he could not comment on it.

    Asked during the question and answer session of her presentation yesterday how she expected the recommended changes to be implemented, Lightfoot said, “We call upon all of you to not be on the sidelines, but to roll up your sleeves and be champions of change.”

  • Noting that the criminal justice system failed two African-American men who died while in the custody of the Chicago Police, and in light of the subsequent $6.5 million payout the Council approved to their families, Finance Chairman Ed Burke (14) is calling for more accountability to make sure that police procedures are properly followed.

    Ald. Burke introduced an ordinance at yesterday’s City Council meeting that would require the Police Superintendent to refer all cases involving the death of a suspect in custody to the Cook County State’s Attorney's Office.

    According to the ordinance, an “officer involved-death” includes any death that results directly from “an action or directly from an intentional omission, including unreasonable delay involving a person in custody or intentional failure to seek medical attention when the need for treatment is apparent.” Any police-involved death that occurs while an officer is off duty would fall under this rule, as well, if that officer was “performing activities that are within the scope of his or her law enforcement duties.” The ordinance would take effect upon passage.

    Public Safety Chairman Ariel Reboyras (30), Budget Chair Carrie Austin (34), and Pedestrian and Traffic Safety Chairman Walter Burnett (27) are listed as co-sponsors.

    Ald. Austin’s constituent, Philip Coleman, was one of those victims whose family will receive a $4.95 million settlement from the city. After suffering a psychotic episode in which he attacked his mother and father, Coleman was taken into police custody where he was tased more than a dozen times before he was taken to a hospital and given an antipsychotic drug from which, according to the medical examiner’s report, he suffered a “rare allergic reaction.” The attorney representing Coleman retained an expert witness on the drug who argued Coleman’s death resulted from dehydration, stress, and physical encounters stemming from his time in lockup, according to testimony from Steve Patton, Corporation Counsel with the city’s Law Department.  

    Ald. Burke also worked with Ald. Scott Waguespack (32) on a separate police-related ordinance also introduced yesterday that would require members of the Independent Police Review Authority (IPRA) appear before Burke’s Finance Committee when police-related settlement cases are brought to the body for approval.

    Under the measure, representatives from the city agency that reviews cases of police misconduct would be required to provide aldermen with a “written status report on any and all investigations involving department members who are named parties to said lawsuits or controverted claims.”

    In recent Finance Committee meetings held post-Laquan McDonald in which legal settlements are reviewed, aldermen had asked the city’s Corporation Counsel to provide details on these IPRA investigations only to be told that the Law Department has limited information, and that their inquiries would be provided through the chair at a later date.

  • Last week, a Northwest Side attorney used a little-known city rule to directly introduce into City Council an ordinance that would create a recall provision for Mayor. The rule used by John J. Lag, who has offices in Jefferson Park, is seldom used, according to the Clerk’s office. Lag’s ordinance has been referred to Rules Committee, where it is unlikely to see the light of day without a Council sponsor.

    Lag’s city loophole is approved by the City Clerk, and if correctly formatted, the Clerk will allow “just about anything” to be introduced as an ordinance or resolution to Council so long as Chicago citizens present their draft in paper form at City Hall Room 107.

    “We vet it for correct formatting, not for content,” said Clerk spokesman Pat Corcoran.

    In 2013 a sign company, GreenSignsused the rule to directly introduce sign ordinances to Council. Since sign ordinances are typically passed out of Committee dozens at a time, Aldermen did not realize what they had passed until unfamiliar signs began going up in their wards. To stop the loophole, Council instituted a nine month moratorium on new small signs.

    Lag says he learned of the process since he’s, “been around for a long time and as a community activist.”

    He’s dabbled in politics a bit here and there too. In 1992, Lag ran for Cook County Circuit Court Judge and lost. Lag also says he prepare to file to run for 32nd Ward Alderman in 2007, but dropped out before the filing deadline.

    Lag has used the citizen introduction rule before. On June 23, 2005, the Council’s Journal of the Proceedings mentions a, “proposed ordinance which would prohibit any elected city official from knowingly accepting, receiving or retaining any benefit, either directly, or indirectly of monies or services or in-kind political contribution, or any other valuable consideration from the Hispanic Democratic Organization” from a Mr. John J. Tag, which Lag says was a typo of his name.

    Lag’s anti-HDO ordinance was shunted into Rules Committee, never to be seen again.

  • Mayor Rahm Emanuel introduced his plan to revamp the city’s zoning rules for the floor area bonus system, which allows downtown construction projects to increase their height and size in exchange for voluntarily paying into a fund that would help support commercial projects and job creation in the city’s poorest neighborhoods. Aldertrack will provide a more in-depth report on the ordinance tomorrow, but here are some of the highlights from our preliminary read of the measure.

    The plan completely revamps the floor area bonus system, which currently gives developers up to 20 different ways that developers can add more density than is allowed under the zoning code. The Emanuel Administration anticipates the changes would net the city an additional $50 million over the “next several years.”

    It replaces bonuses with three separate funds that developers would voluntarily pay into to build taller or bigger buildings in the city’s downtown area, and would simultaneously expand the boundaries of the downtown district by 25 percent. New projects in the expanded D-designated zoning district would be eligible to take advantage of the bonus system.

    The formula the city would use to calculate payment is based on an existing formula the city uses to calculate the cost of each additional square foot of space added to a project:

    Cost of 1 square foot of floor area = 80% x median cost of land per buildable square foot

    Eighty-percent of the money collected through the new voluntary bonus would go into a Neighborhood Opportunity Fund. That pot of money would support projects within “underserved neighborhood commercial corridors,” and could include grocery stores, restaurants, and cultural facilities. The Department of Planning and Development would be in charge of administering the fund and all projects funded under the new initiative. But any project that costs more than $250,000 would need approval from the full City Council.

    The remaining funds collected would be evenly split among a citywide Adopt-A-Landmark Fund and a Local Impact Fund. As the zoning code is currently written, the Adopt-A-Landmark bonus could only be used for a city-designated landmark located within 2,000 feet from the development site. The changes would make that money available to any city-designated landmark.

    The money collected for the Local Impact Fund would help support improvements to local transit, streets, open spaces, river walks and other public amenities located within 2,640 feet of the development site.

    Similar to the city’s affordable housing requirements, payment would be due upon receipt of a building permit, unless the project is designated a planned development to be constructed in phases. Phased projects would pay on a “pro-rata” basis for each new permit applied for.

    Six aldermen co-sponsored the plan: Zoning Chairman Danny Solis (25), Pat Dowell (3), Emma Mitts (37), Michael Scott, Jr. (24), Michelle Harris (8), andWalter Burnett Jr. (27).