Chicago News
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Ald. Edward Burke (14) — the longest serving alderman in the history of the Chicago City Council and the chairman of the powerful Finance Committee — has been charged with one count of attempted extortion, according to a criminal complaint filed Wednesday and unsealed Thursday.
Ald. Ed Burke (14) in September 2018. [A.D. Quig/The Daily Line]
Burke, 75, has served on the City Council for 50 years and is running for another term.
The complaint comes five weeks after FBI agents raided Burke’s City Hall, 14th Ward offices and campaign offices, papering over the windows while they searched for hours before hauling away boxes and computers.
“The transaction described in the complaint does not make out an extortion or an attempt to extort,” Burke’s attorney Charles Sklarsky told reporters. He is also represented by Anton Valukas. “We look forward to a prompt day in court to prove the innocence of Alderman Burke.”
According to a source in Mayor Rahm Emanuel's office, Emanuel believes it is "unacceptable" for Burke to continue as Finance Committee chairman.
Under the City Council's rules, is Burke if removed or resigns as chairman, he would be replaced by Finance Committee Vice Chairman Ald. Pat O'Connor (40), who also chairs the Committee on Workforce Development and Audit, until a permanent leader is selected.
"Members, chairmen and vice-chairmen of committees may be removed only by resolution of the Council adopted by an affirmative vote of a majority of all the Aldermen entitled by law to be elected," according to the City Council's rules.
Burke's departure could threaten Emanuel's plans for the end of his term — Ald. John Arena (45) said Thursday night he would push for City Council's caucuses to select their own choice for Finance Committee chairman, and that Emanuel should halt the push for new major tax increment financing districts and a potential pension obligation bond ordinance until a trustworthy chair can be installed. Arena's choice is Ald. Scott Waguespack (32).
"The decision on who chairs the committees is made by the aldermen. It should be made by the aldermen, it shouldn’t be at the advice and consent of the mayor," Arena said. "We are our own legislative body and we control our own destiny and we should represent ourselves in this."Related: FBI agents raid Ald. Ed Burke’s ward, City Hall offices, setting off shockwaves
Brown paper covers the windows at 14th Ward Ald. Ed Burke's City Hall office on Nov. 29. [A.D. Quig/The Daily Line]
Burke did not enter a plea during a court appearance Thursday afternoon. Wearing his trademark pinstripe suit with a red and white pocket square, Burke was released after posting an $10,000 unsecured bond. Among the requirements of his release is that he must dispose of the 23 firearms kept in his offices.
Burke's travel is also limited to the Northern District of Illinois, and to and from another residence in Powers Lake, Wisconsin.
A preliminary hearing is scheduled for 2 p.m. on Jan. 18. If Burke is indicted by a grand jury, that hearing will be canceled. Amarjeet Bhachu, who also worked on the case of Burke's convicted colleague former 10th Ward Ald. Ed Vrdolyak, is the lead prosecuting attorney for the federal government. He was joined in the filing by Assistant U.S. Attorney Sarah Streicker and FBI Special Agent Edward McNamara.
The charges revolve around an effort to remodel a fast-food restaurant in Burke's Southwest Side ward, according to the 37-page criminal complaint. The Burger King at 4060 S. Pulaski Road in Archer Heights was renovated during the period detailed by the criminal complaint, according to city records.
Laquan McDonald was fatally shot 16 times by Chicago Police Officer Jason Van Dyke in 2014 near that Burger King.
The restaurant was not identified in the complaint, which notes that the two owners of the eatery are considered by federal officials to have been victims in the incident, and are not targets of the investigation. The eatery is part of a chain with more than 100 locations in Illinois, according to the complaint.
Burke is accused of using his power as an alderman to block permits for the work until the owners hired his private law firm, Klafter & Burke, to represent them in tax matters.
Burke's cell phone was tapped during the course of the investigation and the alderman — who is married to Illinois Supreme Court Justice Anne Burke — was placed under surveillance, according to the complaint.
The complaint alleges that Burke was explicit, telling the owners during a phone conversation on June 27, 2017, "we're going to talk about the real estate tax representation and you were going to have somebody get in touch with me so we can expedite your permits."
The owners of the restaurant were well aware of Burke's immense power at City Hall.
“I know these guys are very powerful and they can make life very difficult for all of our Chicago stores,” one of the restaurant owners is quoted as saying in the complaint.
However, owners did not hire Klafter & Burke, prompting the alderman to tell a staffer in his office — identified as only Ward Employee 1 — to interfere with the renovation by playing "hard ball" with the restaurant owners.
That delay — which started in October 2017 and ended in January 2018 — had a "major effect on sales and cash flow" to the restaurant, the complaint said.
The complaint, filed in federal court with U.S. Magistrate Judge Sheila Finnegan, alleges that Burke and his office halted the renovation by claiming that the restaurant needed a driveway permit, although the renovations did not involve the eatery's driveway or drive-thru window and the proper permits had been issued in 2012.
The issue of the driveway permit was used as a "pretext" to hold up the renovation and force the restaurant's owners to hire Burke's law firm, according to the complaint.
One of the items seized during the raid on Burke's City Hall office was a hard copy of an email dated Nov. 28, 2017, between Ward Employee 1 and an employee of the Department of Buildings about the driveway permit — which Burke's office insisted they get, but was preventing from being issued, according to the complaint.
One of the restaurant owners said they believed Burke was doing something "very shady and inappropriate," according to the complaint.
The owners met with Burke in person in December 2017 to resolve the impasse, and agreed to hire Klafter & Burke. Soon after, the remodeling project was allowed to restart, according to the complaint.
Ultimately, the restaurant's owners "strung the process out over several months and did not end up giving Burke's law firm any tax business," according to the complaint.
In addition, one of the restaurant's owners told federal agents that he made a $10,000 contribution to another Chicago politician at Burke's request in order to ensure there were not additional problems with the alderman. That contribution was later reduced to $5,600 —the limit on contributions — but was never reported to the Illinois State Board of Elections, according to the complaint.
That contribution was made to Cook County Board President Toni Preckwinkle who was running for re-election at the time and is now a candidate for mayor of Chicago.
Preckwinkle said Ald. Burke and Judge Burke as well as mayoral candidate and former Burke aide Gery Chico volunteered to host a fundraiser for her Cook County board campaign.
"As event hosts, they were solely responsible for organizing and fundraising of this event," Preckwinkle said in a statement. "Today, it has come to my attention that at that time an individual attempted to contribute through my website. This contribution was not accepted. My campaign has never been contacted by the authorities, and I am confident that my staff followed proper protocol."
Scott Cisek, Preckwinkle's campaign manager, said on Twitter late Thursday that "the contribution in question exceeded the state limit for an individual and was never accepted by the campaign. It was promptly returned in full."
However, the restaurant owners told federal officials they made the contribution and provided correspondence that "reflects that the committee confirmed the contribution was made," according to the complaint.
Preckwinkle filed an amended report with the Illinois State Board of Elections late Thursday that reported a $10,000 donation from Shoukat Dhanani, who is identified in the criminal complaint as Individual A, on Jan. 12, 2018.
The contribution was "rejected" 10 days later on Jan. 22, according to the filing. There is no evidence in Preckwinkle's amended filing that Dhanani's contribution was ever reduced to $5,600, as detailed in the criminal complaint.
The amended form was filed in the interest of "transparency," Preckwinkle's spokeswoman Monica Trevino said.
Preckwinkle called for Burke to resign as alderman and said as mayor she would strip Burke of the chairmanship of the Finance Committee and remove the worker's compensation program from his control if he is re-elected alderman in February.
Chico was not a host of the event, but attended the event and made a $750 contribution, his spokeswoman Kelley Quinn said.
"In typical fashion, Toni Preckwinkle is being dishonest about her role outlined in a criminal complaint and deflecting responsibility," Chico said in a statement. "Let me be clear, I have no knowledge whatsoever about the $5,600 contribution that she accepted and is referred to in the criminal complaint."
In a separate statement, Quinn said Chico was "extremely disappointed" in Burke, whom he has known for three decades. Burke endorsed Chico in the race to replace Mayor Rahm Emanuel.
"No one is above the law," Quinn said. "While we will closely watch the case as it plays out in the court system, Gery obviously will not accept support from Ed Burke in the upcoming mayoral race."
Chico said Burke should step down as Finance Committee chairman.Mayoral candidate Lori Lightfoot alsoblasted Preckwinkle's role in the scandal.
Ald. Ed Burke (14) departs the Dirksen federal courthouse Thursday. [A.D. Quig/The Daily Line]
“At a minimum, in light of allegations in the federal criminal complaint, Toni Preckwinkle must explain what Ed Burke has received in exchange for contributions. Ed Burke does not make contributions out of the goodness of his heart," Lightfoot said. "Additionally, Toni Preckwinkle must disgorge all contributions made or raised by Ed Burke and make good on her promise to strip Ed Burke of his power to slate judges for the Cook County Democratic Party."
Trevino did not respond when asked whether Preckwinkle would move to strip Burke of his position as 14th Ward Democratic Committeeman or as chairman of the party's judicial slating committee.
The municipal election is 54 days away. Burke faces four challengers — Tanya Patiño, Irene Corral, Jose Torrez and Jaime Guzman.
Patiño called for Burke to resign and withdraw from the race in order to "do what's best for the residents of the 14th Ward."
Torrez also called for Burke to resign, saying, "We can no longer allow our neighborhoods and communities to be run and affected by corrupt machine politics."
In a federal courtroom on the 17th floor of the Dirksen Building, Burke only spoke three times, including to simply tell the judge he understood the charges against him. "Yes, your honor."
Burke did not speak after his court appearance on Thursday, but was defiant after the FBI raids in late November, promising to cooperate fully — but noting that he had been under FBI investigation before and never faced an indictment or charges.
“I am completely confident that at the end of the day nothing will be found amiss in this instance either,” Burke said on Nov. 29.
Mayoral candidates have since scrambled to distance themselves from Burke, who rejected calls for him to step down as chairman of the Finance Committee after the raids. The committee controls the city’s $100 million workers compensation fund.
In a Thursday release, mayoral candidate Bill Daley said, “From the start of this campaign I have said that the 14th Ward needs new leadership. Today’s charges just confirm it. We must all work together on obvious reforms to our local government.”
Comptroller Susana Mendoza and Preckwinkle returned contributions from Burke earlier this month.
After Burke appeared in court, Mendoza issued a statement calling on Burke to resign as Finance Committee chairman.
"Furthermore, the time has come for new leadership in the 14th Ward," said Mendoza, who was married at Burke's Gage Park home. "While due process should be afforded to everyone, should he choose to continue as alderman in light of this formal federal investigation, voters will have an opportunity to voice their concerns in February.”
Read the full complaint here. -
Ald. Ricardo Muñoz has led the 22nd Ward for 25 years.
CHLOE RILEY/ DNAINFO
Ald. Ricardo Muñoz (22) was arrested Wednesday in connection with a domestic violence incident that took place on New Year’s Eve, Chicago police said.
Muñoz was taken into custody at his aldermanic office without incident, Chicago police spokesman Anthony Guglielmi said.
The victim told police “that a verbal argument took place between [the alderman] and his wife where the offender pushed and struck the victim throughout the body.”
The investigation is ongoing, Guglielmi said.
Muñoz, who was still in custody Wednesday afternoon, did not respond to a text message from The Daily Line. The alderman has not been charged.
Muñoz' wife, Betty Torres-Muñoz, filed Wednesday for an order of protection in Cook County Domestic Violence Court, according to the Tribune.
Muñoz announced in July that he would not run for another term representing the 22nd Ward, which includes North Lawndale, Little Village, Brighton Park, LeClaire Courts, Archer Heights and Sleepy Hollow.
Muñoz, 53, first appointed to the City Council by Mayor Richard M. Daley in 1993, belongs to the council’s Latino and Progressive caucuses, and has been long a thorn in the side of Mayor Rahm Emanuel.
Joanna Klonsky, a spokeswoman for Muñoz, declined to comment on the alderman's arrest.
Muñoz has been open about his struggles with alcohol. When he told NBC5’s Carol Marin the news of his retirement, he said he revealed his alcoholism eight years ago in an effort to take “alcoholism and mental health out of the shadow.”
In addition, Muñoz was arrested as a teenager on drug and gun charges, which were later expunged.
Muñoz has endorsed 22nd Ward committeeman Mike Rodriguez, the executive vice president of the Cook County Democratic Party, to replace him as alderman.
“I am deeply troubled by the reports surrounding Ald. Muñoz’s arrest," Rodriguez said. "Domestic violence is never acceptable in any form, and these allegations should be taken extremely seriously.”
Also running to replace Muñoz are Lisette Lopez, Richard Juarez and Neftalie Gonzalez. -
Ten more aldermanic candidates and four mayoral candidates found themselves off the Feb. 26 ballot as elections officials worked their way through dozens of still-pending challenges. Mayor Rahm Emanuel continued to make good on his promise to leave no ally behind, and gave $20,000 to former aide and 47th Ward candidate Michael Negron. In addition, the five-member City Council LGBT Caucus won the backing of the Equality Illinois PAC in their bids for re-election.
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Aldermen have introduced hundreds of resolutions and ordinances that have languished in committee this term. Some may see new life as aldermen seek to burnish their records as they run for re-election. Others may stay buried for similar reasons until the new term in May 2019 wipes the slate clean. The Daily Line has combed through notable introductions dating back to the spring of 2017 and found dozens still pending, including major pushes for police oversight, changes to scheduling practices for workers, and conditions and staffing at Chicago Public Schools.
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Members of the Chicago City Council may have breathed a sigh of relief after approving a 2019 budget that added no new taxes or fees.
But Chicagoans will still have to dig deeper in 2019 as three previously approved tax and fee hikes click into place.
A host of new laws — some imposing new taxes and fees — are now in effect. -
Mayoral candidate Gery Chico called for Mayor Rahm Emanuel to end the Chicago Infrastructure trust, noting that it had completed just one project since 2012. Toni Preckwinkle drew fire from Lori Lightfoot over an email that invoked the plight of a woman sentenced to life after suffering from sex trafficking, and later apologized.
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Ald. Ariel Reboyras (30) said he does not know the man who threatened the staff at the Logan Square office of U. S. Rep. Luis Gutierrez (D-Chicago) Wednesday afternoon, even though the man identified himself as a Reboyras precinct captain.
An image from the video released by the office of U. S. Rep. Luis Gutierrez showing a man who threatened staff members.
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Ald. Walter Burnett (27) and Ald. Tom Tunney (44) clashed at Thursday’s Plan Commission meeting over whether a new tower at the Atrium Village apartment complex contains enough units for low- and moderate-income Chicagoans.
A rendering of the tower proposed by Onni Group. [City of Chicago] -
Cook County Board President Toni Preckwinkle ended 2018 much like she began it — running for office – one eye on her political opponents and another on keeping the lid on sweeping changes to county operations, redevelopments, and managing scandal.
The county saw massive turnover in 2018 — on the board of commissioners, on Preckwinkle’s team and in county offices recovering from layoffs and new leadership. -
A plan to restore the Congress Theater to its former glory and build a seven-story, 72-unit tower next to it got the green light Thursday from the Chicago Plan Commission.
A rendering of the renovated Congress Theater. [City of Chicago]
The unanimous vote sends the project — which totals $95 million — to the City Council’s Zoning Committee, which could consider the proposal from developer Michael Moyer next month.
Ald. Proco Joe Moreno (1) said he was very proud of the project in the heart of Logan Square.
“This is a gem that needs a lot of polishing,” Moreno told the commission, noting that the theater once generated negative “citywide and worldwide headlines” and once operated as if it was located in the “wild, wild west.”
The theater building itself would include shops, 14 apartments and a 50-room hotel. The property at 2117-63 N. Milwaukee Ave. is currently zoned B3-1 Community Shopping and C1-1 Neighborhood Commercial, and would be rezoned to B3-3 Community Shopping if the project is approved by the city’s Zoning Committee.
The shops in the theater building will be marketed to businesses owned by Chicagoans, according to the development plan.
In addition to all of the apartments in the theater building, the tower will include 22 studio, one-bedroom and two-bedroom units earmarked for low- and moderate-income residents — more than required by the city’s Affordable Requirements Ordinance.
A third of the affordable units will be set aside for residents earning no more than 50 percent of the area’s median income, which is $42,300 for a family of four. Another third will be set aside for those earning 60 percent of the area’s median income and the rest for those earning 80 percent of the area’s median income.
Moreno said two-bedroom apartments were added to the tower at his request.
“This has taken a long time,” Moreno said.
In June, the city’s Community Development Commission unanimously approved $9.7 million in tax-increment financing for the project.
Moreno said the project merited funding from the area’s TIF district, which is designed to eradicate blight.
“This project is a model for what TIF should be used for,” Moreno said.
Ward Miller, the executive director of Preservation Chicago, praised the restoration of the former movie palace.
“It has been a long time coming,” Miller said.
Commissioners also approved the $75 million redevelopment of the Uptown Theater, which is set to get $13 million from the area’s tax-increment financing district. Jam Productions and Farpoint are leading the renovations.
The developer wants to rezone the theater at 4812 N. Broadway from B3-3 and B3-5 Community Shopping Districts to a unified B3-5 and create an Entertainment Planned Development, which would increase the capacity of the theater to approximately 5,800 people, according to city officials.
The Plan Commission also approved a 17-story building with 318 units proposed for 808 N. Wells St. in the 27th Ward.
The $75 million project would include 6,300 square feet of shops, 16 vehicle parking spaces and 318 bicycle parking spaces — as permitted under the city’s transit-oriented development ordinance. The site would be rezoned to DX-7 Downtown Mixed Use.
Thirty-two of the rental units will be set aside for those earning no more than 60 percent of the area’s median income, which is $67,700 for a family of four, according to the proposal. All will be included on site
Ald. Walter Burnett (27) said the affordable units would help address the area’s “affordability crunch.”
The development would also pay $3 million into the Neighborhood Opportunity Fund for permission to build more units than allowed under the current rules, officials said.
Originally, the property was to have been home to a 23-story building with 58 units and a 105-space garage. However, after slower than expected sales and the death of a company executive in 2016 doomed the plan.
Commissioners also endorsed a new master plan for the area around the Jefferson Park Transit Center backed by Ald. John Arena (45).
Arena said the plan — designed to address the “loss of [Jefferson Park’s] center” — provides for more dense development around the transit center, which includes several bus lines, a station on the CTA Blue Line as well as a Metra station.
“It will help Jefferson Park transition from a neighborhood of single-family homes and two flats,” Arena said, adding that 316 new units are set to be built near the transit center, which is currently undergoing a renovation.
The master plan will give Arena a framework to present to developers when they consider Jefferson Park for a development and help “herd the cats” who live in Jefferson Park.
“We’re in a good place,” Arena said. “It gives us direction.”
The commission also endorsed a plan five-story addition to the Chicago Tabernacle of the Assemblies of God at 3201-33 N. Cicero Ave. The new building would house a community center, commercial space, medical services and 115 parking spaces.
The church wants to rezone the property, which is now B3-1 Community Shopping District and C2-1 Motor Vehicle-Related Commercial District, to C1-5 Neighborhood Commercial District, according to the proposal.
In addition, plans for an observatory deck atop the Aon Center at 200 E. Randolph St. got the green light from the commission. -
The $69 million Congress Theater renovation project that includes a seven-story, 72-unit tower in the heart of Logan Square is at the top of Thursday’s agenda for the Chicago Plan Commission.
A rendering of the proposed residential tower near the Congress Theater. [Block Club Chicago] -
Most candidates will skate by the city’s dropout deadline of Dec. 20, as many attorneys and hearing officers who met Wednesday simply met to decide when to meet again for next steps on ballot objections. Attorney Ed Mullen, who is handling 26 cases this municipal election, remarked the difference in timing on one hearing meant the difference between starting the drive from his mother’s home on Christmas night or the morning after. At least one mayoral candidate is in the clear, as Toni Preckwinkle’s campaign announced they’d drop their objections to Susana Mendoza.









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