Chicago Public School principals received their budgets for the upcoming school year yesterday. The budgets project a per-pupil spending rate of $4,087, an amount based on reductions made in February, when the district was anticipating a $1.1 billion deficit for the 2016-17 school year.

But according to CPS CEO Forrest Claypool, who briefed reporters at Coleman Elementary School in the South Side’s Grand Boulevard neighborhood, the district has cut the deficit by about $600 million thanks to anticipated money from Springfield and a new $250 million property tax levy for teacher pensions. Details for how the district plans to relieve the remaining $300 to $330 million hole are expected to be released in the full budget next month.

The Council’s Human Relations Committee will take up a symbolic resolution from Ald. Carlos Ramirez-Rosa (25) and Ald. Ed Burke (14) calling on the Department of Homeland Security to designate Ecuador for temporary protected status and to provide temporary immigration relief to eligible Ecuadorians living in Chicago. The resolution follows a devastating earthquake there that resulted in 660 deaths and racked up about $3 billion in damages earlier this year.

A proposed ballot question on infrastructure spending ended in a rare tie roll call vote, leaving aldermen unsure if the motion carried or failed. The stymied motion called for creating a referendum to ask Chicago voters this November whether state and federal government should invest more money in local road repairs and new infrastructure projects.

After months of considering contested regulations, from Uber to Airbnb, the Council’s License Committee has a fairly light agenda for today. Most of the items are related to expanding liquor licenses and booting of vehicles on private property.

An ordinance up for consideration today by Chair Emma Mitts (37) would let booting companies charge an additional convenience fee to remove boots from vehicles when those car owners pay with credit or debit card.

The Council’s Rules Committee meets this morning in the Council Chambers to consider an appointment to the Board of Ethics and two potential ballot referenda for Chicago voters this November, although one of those ballot questions had yet to be drafted as of yesterday afternoon.

Mayor Rahm Emanuel has appointed Nancy Andrade, legal counsel for the Commission on Hispanic Legal Rights and Responsibilities, to finish out the unexpired term of Judge Julia M. Nowicki to the Board of Ethics. First appointed in 2012 by Mayor Rahm Emanuel, Cook County Circuit Court Judge Nowicki has since resigned. Her term, which Andrade will complete, is set to expire on July 31, 2017.

The Council’s Public Safety Committee approved a new Executive Director for the city’s Office of Emergency Management and Communications (OEMC), even as several aldermen raised concerns about long 911 response times and the proliferation of illegal guns on city streets.

The ban on chewing tobacco and other smokeless tobacco products at Chicago ballparks takes effect today. The ban includes players on the field. The City Council approved the the ordinance championed by Ald. Ed Burke (14) and Ald. Patrick Daley Thompson (11), whose ward includes U.S. Cellular Field, in March. Violators will face a minimum $250 fine for the first violation, a $500 fine for the second violation, and a $2,500 fine for each additional violation that occurs within one year of the first offense.

A roll call vote on a proposed ballot question on infrastructure spending ended in a rare tie roll call vote, leaving aldermen unsure if the motion carried or failed. The stymied motion called for creating a referendum to ask Chicago voters this November whether state and federal government should invest more money in local road repairs and new infrastructure projects.

Attendance: Chair Michelle Harris (8), Brian Hopkins (2),  Sophia King (4), Rod Sawyer (6), Sue Sadlowski Garza (9), Patrick Daley Thompson (11), Mary Quinn (13), David Moore (17),  Michael Scott, Jr. (24), Walter Burnett, Jr. (27), Ariel Reboyras (30), Scott Waguespack (32), Carlos Ramirez-Rosa (35), Anthony Napolitano (41), Michele Smith (43), Deb Silverstein (50)

Aldermen on the Rules Committee were sharply divided on the last-minute proposed ballot question from Ald. Walter Burnett (27). Most committee members had not seen the ordinance language until the morning of the meeting, which convened 30 minutes behind schedule.

Aldermen were originally slated to consider a referendum question from Ald. Joe Moore (49) asking voters if the city of Chicago should divest in fossil fuel companies. But environmental groups opposed the ballot question, saying that putting it to the voters as a non-binding referendum would delay their efforts.

“In Chicago, there is an active campaign for municipal divestment from fossil fuels,” the group Chicago 350 said in a letter addressed to aldermen and Mayor Rahm Emanuel. “But the proposed referendum could have the effect of delaying this important effort. The nature of climate change and the science behind it are no longer a matter of debate, and thus divestment is not an issue to take to the electorate. The power to divest lies in the executive and the legislative branches.”

In explaining the reason behind his new ordinance, Ald. Burnett said that he has been trying to get the city’s Department of Transportation (CDOT) and the Chicago Transit Authority (CTA) to invest in new L stops in his Near West Side ward.

“CTA is [trying] to get me to use TIF money to do it, instead of the federal government and the state government [trying] put cash on it,” said Ald. Burnett. “We need our TIF dollars for something else. And I feel as though everybody else should pitch in. It should not just be burden upon the city and the TIF dollars in those communities.”

But the question Ald. Burnett wants to pose to Chicago voters is vague, a point that Ald. David Moore (17) was quick to point out. “I don’t know what all of that means. It’s all words to me,” said Ald. Moore, adding that the city has “always been pushing for new funds” and that a ballot question on the matter was redundant.

A proposal by the Emanuel Administration to eliminate the $30 fee for the police exam easily advanced out of the Council’s Workforce Development and Audit Committee on Friday. While only four aldermen on the committee were present, which is below the ten needed for a quorum, the group approved a substitute ordinance that would also eliminate the $30 fee for the fire exam, as well.

Aldermen on the Council’s Public Safety Committee will meet back in the Council Chambers today to take care of some regular business: the appointment of Alicia Tate-Nadeau as the Executive Director of the Office of Emergency Management and Communications (OEMC).

Tate-Nadeau was appointed to the position in March. In addition to serving as an Assistant Adjutant General of the Illinois National Guard, Tate-Nadeau made history in 2015 by becoming the first female in Illinois history to be promoted to the position of General. More recently, Tate-Nadeau served on FEMA’s regional team in Flint, Michigan to help address the ongoing crisis with the city’s water system.

Responding to criticisms that their public hearings on police accountability were a “sham”, the two chairmen of the Council’s Public Safety Committee and Budget Committee announced a plan to create “at least three subcommittees” to organize additional public forums on police reform across the city.

As expected, few expert witnesses and no one from the Chicago Police Department showed up to testify at a nearly two hour long joint committee hearing on police reform held at City Hall yesterday, leaving the two chairmen to rethink their strategy to overhaul the department and the Independent Police Review Authority (IPRA).

After sitting through more than a dozen witnesses, many of whom testified about the poor decision to hold only two public meetings at City Hall during business hours with limited public notice, Budget Chair Carrie Austin (34) and Public Safety Chair Ariel Reboyras (30) suggested they’d be open to extending the timeline for reform. They said they may hold additional meetings at public venues across the city.

Starting today, two City Council committees are scheduled to hold two days of public hearings on reforming the city’s policing policy, as part of a pledge to bring in subject matter experts and the public together to craft meaningful reforms. The first meeting is scheduled for today at 1:00 p.m., the second will be held on Thursday at 10:00 a.m. But, after a day of reaching out to subject matter experts, the Chicago Police Department, aldermen and their staff, Aldertrack has learned that the hearings Public Safety Chairman Ariel Reboyras (30) and Budget Chairman Carrie Austin (34) promised in a letter released last month are not what is to be expected over the next two days.

Last month, on the same day the chair of the Mayor’s Task Force on Police Accountability (PATF), Lori Lightfoot and more than a dozen other activists released an open letter and held a press conference condemning the Emanuel Administration's delayed response to PATF's more than 100-page report on the structural and racial problems that plague the police department’s oversight apparatus. Hours after the Lightfoot presser, Reboyras and Austin released their own letter announcing their decision to hold two days of public hearings on police reform.

Yesterday afternoon the Illinois General Assembly passed a bill (SB2562) that would give Chicago the authority to create new Tax Increment Financing (TIF) districts near mass transit as a way to help fund improvements and new infrastructure projects at the Chicago Transit Authority. The bill, which had languished in committee, suddenly sprung to life following successful negotiations between the Assembly’s four leaders and Gov. Bruce Rauner on yesterday's stopgap budget bill.

“This is a TIF omnibus bill,” explained one of the lead sponsors, State Rep. Barbara Flynn Currie (D-Chicago), on the floor yesterday. “It provides the opportunity in Chicago for the development of transit oriented development around various kinds of subway stations and elevated lines.”

In May, Mayor Rahm Emanuel raised $72,500 from a fundraising event he reportedly held last month at the Gold Coast home of developer Robert Wislow of CBRE. The mayor reported sixteen checks at an average amount of $4,500. All carried the date of May 24, 2015. The Astor Company, a recycling consulting firm, donated the largest amount to the Mayor: $10,000.

[May Contribution Report - Spreadsheet]

The Mayor reported seven checks with the maximum allowable contribution from an individual: $5,400. This includes checks from Kevin J. McKenna, the Executive Vice President of Clayco, a real estate, architecture, engineering, and construction firm that moved its headquarters from St. Louis to Chicago in 2013. Clayco reported $1.35 billion in revenue for 2015 and more than 1,645 employees across the country, according to its website. The firm worked on some big ticket projects across the city of Chicago: renovating an old sausage factory into a medical office for Mt. Sinai Hospital, upgrades at Harold Washington Library, and renovations for Thompson Coburn’s law offices. McKenna’s wife, Patricia, who is listed as a “homemaker”, also donated the maximum amount to the Mayor.

The McKennas are followed in maximum donations by restaurateur Richard Melman, the owner of Lettuce Entertain You; Alexander Tompsidis, President of AT Mechanical LLC, an HVAC contractor and mechanical service provider based out of Franklin Park, Illinois; and Erich Worple, a senior contract administrator for Ryan Inc. Central, a general contracting company based out of Janesville, Wisconsin.

One company, Adamson Plumbing Contractors, a commercial plumbing contractor that works closely with Walsh Construction, donated $5,400 to the mayor. Adamson helped work on numerous municipal contracts as a subcontractor for Walsh, including a $5 million contract at the 31st Street Harbor, a $1 million contract for the Wacker Drive Reconstruction project, a $3 million contract for improvements at CPS’ Westinghouse High School, and a $1 million contract for the Cook County Jail Dormitory, among a slate of other projects.

Mayor Emanuel received three checks for $5,000 from Chicago business leaders Shawn Clark (Vice President of GRC-Clayco), Robert Wislow (chairman of real estate firm CBRE Inc.), and Wislow’s wife, Susan.

CBRE brokered the 2015 sale of four city-owned River North parking lots, making a 3.75% commision on each. The parking sites were used by city employees who work at the Administrative Hearings building at 400 W. Superior St., which is where people go to contest or pay city owed debt related to red-light, speed camera, and other city violations. Due to the parking lots’ high property values and the increase in development in the area, the Inspector General’s Office recommended the city sell those lots to help fill the 2016 budget hole. The Mayor agreed and announced his intent to sell in early September. The city made approximately $12.4 million.

On the City Council side, Ald. Brian Hopkins (2) was the biggest fund raiser in May, reeling in about $82,000. Ald. Ed Burke (14) came in second place, collecting $67,000 in donations to his PAC, the Burnham Committee.

All the donations to Ald. Hopkins’ personal campaign fund, Hopkins for Chicago, were in the $1,000 to $5,400 range. Attorneys and developers made up a large chunk of the donations: JDL Development ($2,500); Jack George, a well known land-use attorney for Schuyler, Roche, & Crisham ($1,000); Dave Cocagne, CEO of Vermilion Development ($1,000); Sudler and Company, a property management firm ($5,400); and Structured Development ($2,500).

Oddly, at the June City Council meeting, Ald. Hopkins voted against a redevelopment agreement with JDL Development for nearly $16 million in TIF reimbursements for a luxury high-rise they plan to build at the former Cuneo Hospital/Maryville Academy site in Uptown.

Meanwhile, Burke’s Burnham Committee received donations from about 40 individuals and businesses, including: $5,000 from Brackenbox, Inc., a garbage collection service; $2,500 from Choice Benefits of America, a Massachusetts-based tax preparation agency; $2,500 from J.N. Pritzker; and $3,000 from Geoffrey Ryan, and executive at Exxonmobil.

New Non-Candidate D-1s

• A D-1 (Statement of Organization) was filed for a new 41st Ward Regular Democratic Organization. The Chair of the new PAC is Timothy Heneghan. John Delaney is listed as Treasurer. The organization hasn’t raised a cent, yet. Heneghan won a three-way race to succeed former 41st Ward Ald. Mary O’Connor as the new Democratic ward boss. O’Connor, who lost her seat on the council to former firefighter Ald. Anthony Napolitano (41), chose not to run for re-election and instead supported Heneghan, a veteran firefighter and member of a local school council, as her successor. Ald. Napolitano supported a different candidate.
• Another D-1 was filed on May 19th for the creation of a political action committee titled, “Citizens Against Rauner.” The stated purpose is simply to “Save Illinois.” No funds have been raised. Dillon C. Clark is listed as Chair and Treasurer.

Stray Highlights

• Ald. Mike Zalewski (23), who rarely raises money to his personal campaign, brought in a sizable $44,500. Most of the donations to the Chairman of the Council’s Aviation Committee are in the $1k and $1.5k range. A few of the checks are from companies or individuals in the surrounding suburbs, such as Schiller Park, Dundee, Park Ridge, Hampshire, and Westmont. One $1.5k check came from Monte Kushida, the Owner of O’Hare Ventures, another $1.5k check came from Lettuce Entertain You Enterprises, which owns a handful of concession stands at O’Hare airport. Zalewski also received a $1.5k donation from a company called “Midway Restaurant Development/Subway”, which is owned by Hamid Hussein of Glenview.

• Ald. Proco Joe Moreno (1) donated $18,750 to himself on May 3rd.

• Ald. Scott Waguespack (32), Chairman of the Council’s Progressive Caucus, received $10k from AFSCME Council 31.  

• The Burnham Committee, a political action committee controlled by Ald. Ed Burke (14), received three separate $2.5k checks from Pete’s Fresh Market. Each donation is cited from a different store location, but all share the same address (4333 South Pulaski). A separate $1K check to the Burnham Committee from Peter Michael Realty, Inc. lists the same address.

• The 13th Ward Democratic Organization, controlled by House Speaker Mike Madigan, collected a total of $50k in two separate checks from the Chicago Regional Council of Carpenters Political Action Committee.

• Speaking of construction PACs, the Construction and General Laborer’s District Council of Chicago, a labor union representing about 20,000 construction workers in Chicago, donated $1k each to Ald. Rod Sawyer (6), Ald. Leslie Hairston (5), and the Chicago Progressive Caucus.

• New 2nd Ward Democratic Committeeman Tim Egan donated $1.5k to Ald. Burke’s Burnham Committee and $2.5k to Ald. Hopkins’ personal campaign fund. Egan successfully won the committeeman seat following Ald. Hopkins’ decision not to run. Egan is the CEO of Roseland Hospitals and a two-time 43rd Ward aldermanic candidate.

• A West Humboldt Park day care center, All Things Are Possible for Kids, Inc., gave $1k to the New 37th Ward Democratic Organization, which, interestingly, isn’t controlled by Democratic Ward Committeeman Emma Mitts, but rather her Ethics Officer, Mary Phillips, who is listed as the committee’s Chairperson.

• After a failed bid for congress, Ald. Howard Brookins, Jr. (21) transferred $5,335.97 from his congressional campaign committee, Brookins for Congress, to his aldermanic campaign fund, Committee to Elect Howard B. Brookins, Jr.

• Utility company ComEd gave $1.5k each to the Burnham Committee and City Treasurer Kurt Summers’ personal campaign fund.

• David Gassman, the president of DLG Management, a property management firm that owns apartments in Lakeview, Uptown and Edgewater, donated $1.2k to Ald. Pat O’Connor (40) and $1.5k to Ald. Joe Moore (49).

• The real estate developer behind the Montclare Senior Residences, MR Properties, LLC, donated $8k to the 8th Ward Democratic Organization, run by Ald. Michelle Harris (8).

• The president of Riot Fest, an annual music festival held in Chicago, Michael Petryshyn, donated $3k to Ald. George Cardenas (12). In 2015, when Ald. Roberto Maldonado (26) blocked festival organizers from renting out Humbolt Park for a fourth year in a row after it got trashed the year before, Ald. Cardenas offered up Douglas Park.

The Council’s Education Committee meets today to consider one agenda item: a resolution calling for a hearing to determine the impact and consequences of consolidating child development programs at City Colleges to a single location: Truman College.

It’s the Education Committee’s first meeting since Ald. Howard Brookins’ Jr. (21) took over as chairman. He succeeded Ald. Will Burns (4), who resigned from the Council in April. It's also the committee's first meeting of 2016. 

The resolution, introduced by Ald. Scott Waguespack (32), requests that the Council look into a decision by Mayor Rahm Emanuel and City Colleges Chancellor Cheryl Hyman to shut down all Child Development programs at five City Colleges and consolidate the program to Truman College, located on the North Side of the city. The programs teach students how to interact with and instruct children up to three years of age.  

“This decision will result in the loss of access to Chicago Citizens from the South and West Sides to high quality, nationally recognized education in Child Development that is currently available to them within their communities as of Fall 2016,” the preamble of the resolution states.

The resolution also accuses the Emanuel Administration of making the decision to consolidate without input from impacted communities, and argues that the programs should be halted until the hearing is conducted.

Twelve aldermen have signed on as co-sponsors.

Yesterday’s City Council meeting was one for the history books. Not only were there an unprecedented number of divided roll call votes during the nearly five hour meeting, there was also an attempt to adjourn the meeting early and reconvene Friday after two aldermen tried to block a vote on Uber regulations.

[Full breakdown of attendance and divided roll call votes at the City of Chicago City Council Meeting, provided by the Clerk's Office.]

As Council debated, City Hall endured two of its largest protests in recent memory. One group calling for a Civilian Police Accountability Council (CPAC) to replace the Independent Police Review Authority (IPRA) took over the 2nd floor lobby, chanting so loud they could be heard in the Council Chambers. Hundreds of Chicago Teachers Union members dressed in red overwhelmed the City Hall 1st floor lobbycalling for more school funding and removal of Mayor Rahm Emanuel. 

Ald. Ed Burke (14), surprising many on the Council, made a motion to adjourn the meeting and pick up the agenda again on Friday afternoon after two aldermen, Scott Waguespack (32) and Chris Taliaferro (29), tried to use parliamentary procedure to block a vote on Ald. Anthony Beale’s (9) watered-down ride-share ordinance, citing their preference for the more strict regulations, including fingerprinting.

After Ald. Waguespack made the motion, which would have normally delayed a vote on the Uber and Lyft regulations for a month, Burke suspended the rules to bring up the agreed calendar and adjourn the meeting early. He announced the next City Council meeting would be 1:00 p.m. Friday afternoon. Adjournment would have stopped the meeting cold, before aldermen had a chance to consider other big ticket items like Airbnb, paid sick leave, and the new Wrigley plaza. 

It all happened in a matter of minutes, confusing and annoying several Council members. Several looked puzzled and asked each other what was going on. One asked out loud, “Is that a special meeting or is that going to be a regular meeting?”

Housing Chairman Joe Moore (49) then made an attempt to report out his items, but was stopped because of all of the commotion. Mayor Emanuel then asked the Clerk to again read Ald. Burke’s request to reschedule the meeting and announced the meeting was done for the day. “City Council is adjourned until that time,” he declared, pounding the gavel.

“Wait!” Ald. Ameya Pawar (47) yelled from the Council floor.

“No, no, no,” Corporation Counsel Steve Patton said, loud enough for the Mayor's microphone to catch it. But Burke seconded the motion to adjourn, and City Clerk Susana Mendoza began reading the roll to close out the meeting. Mayor Emanuel stopped her by the time she got to Ald. Milly Santiago’s (31) name, just as Ald. Waguespack was approaching the dais to tell him that he’d withdraw his motion to delay the Uber vote. Ald. Taliaferro (29) also withdrew his motion, and then followed by Ald. Burke, who also backpedaled on adjournment. The regular order of business continued.

But several on the Council were not happy with how the Emanuel Administration went about drafting and releasing regulations for Uber/Lyft and Airbnb. In fact, most of the debate over the ride-share ordinance had more to do with the procedural aspects of how it came about, than the actual details of the regulations themselves.

“Your ordinance for the ride-share came to us, most aldermen, early this morning. It removed all of the protections that were put in and passed in the last meeting of Ald. Beale’s committee. So, to come forward with an ordinance that takes all of that out this morning, and expect aldermen to vote on it is not the way to run City Council,” Ald. Waguespack told the mayor after withdrawing his motion to defer and publish. He conceded the Mayor’s version would have passed through the Council on Friday, regardless. Waguespack received a round of applause from the gallery for his comments. Soon after, the Mayor’s Office distributed copies of the new ordinancealong with a one-sheet explainer detailing the changes to the press corps.

“The concern I had was more procedural than substantive, quite honestly,” said Ald. Rod Sawyer (6). “Quite frankly, it’s hard for us to stomach this as Council members getting something minutes or hours ahead of time and being pressed to vote on it. Even if it is something we fundamentally agree with.”

But amid all the division among aldermen on Airbnb and Uber, there was common ground on paid sick leave. It was the only controversial matter to receive unanimous approval by roll call vote. It passed out of Council yesterday 48-0. Other divided votes are detailed below.

Breakdown of Divided Roll Call Votes

Montrose-Clarendon TIF Redevelopment Agreement: The first and second most divided roll call votes of the day were for a redevelopment agreement with JDL Development, the company behind a plan to convert the former Cuneo Hospital/Maryville Academy site into luxury apartments. The conflict was over TIF funds, as detailed in this committee report.

Under the redevelopment agreement, the city would reimburse JDL with $11.2 million in TIF funds for constructing the high-rise development, in addition to dispersing $4.6 million in TIF funds for improvements at neighboring Clarendon Park. The money would come from the Montrose/Clarendon TIF, created specifically to encourage redevelopment of the long vacant site. All property currently within the TIF is tax exempt. All property tax revenue collected through the TIF would come from the new residential high-rise.

But Ald. Harry Osterman (48), who voted against it in Finance Committee on Tuesday and argued that the city shouldn’t spend valuable resources on a luxury high-rise development, urged his fellow colleagues yesterday to join him in voting against the agreement, saying priority should be given to the beleaguered Chicago Public Schools. Uptown Ald. James Cappleman (46), whose ward includes the hospital, shot back at Ald. Osterman, saying the public benefits, like the park upgrades and new taxable rental property, far outweigh the issue over TIFs. “Politics is politics. But children should not pay the cost of making an alderman look good,” said Cappleman.

No Votes: Proco Joe Moreno (1), Brian Hopkins (2), Sue Sadlowski Garza (10), George Cardenas (12), Rick Munoz (22), Scott Waguespack (32), Deb Mell (33), Carlos Ramirez-Rosa (35), Brendan Reilly (42), Michele Smith (43), John Arena (45), Ameya Pawar (47), Harry Osterman (48)

Motion To Consider Substitute Ordinance On Ride-share Regulations: This motion would have swapped out the original ordinance, which included the beefed up regulations with fingerprinting and city administered background checks. That version passed through committee in less than five minutes, but the Mayor and Beale worked out a watered down compromise after the weekend.

Those who voted no on this motion wanted the more strict regulations. Some questioned the process the Administration used to change the regulations, criticizing the mayor for making last minute changes to ordinances and giving aldermen limited time to review new language. Debate over this ordinance was the longest of the day, with many senior aldermen complimenting Ald. Beale's hard work on compromise, and urging others to not let the perfect be the enemy of the good. 

No Votes: Leslie Hairston (5), Sue Sadlowski Garza (10), Raymond Lopez (15), Toni Foulkes (16), David Moore (17), Rick Munoz (22), Roberto Maldonado (26), Chris Taliaferro (29), Milly Santiago (31), Scott Waguespack (32), Carlos Ramirez-Rosa (35), Nick Sposato (38), Anthony Napolitano (41), John Arena (45), Harry Osterman (48).

Abstentions: Gilbert Villegas (36) and Howard Brookins, Jr. (20)

Vote To Consider Pared Down Regulations On Ride-share Operators: After the motion to consider the original ordinance failed, a roll call vote was called on the substitute ordinance, which removed the fingerprinting aspect and the 5% handicap accessibility requirement. Under the new ordinance, an independent study will be conducted on the feasibility of fingerprinting, and Uber and Lyft will have six months to come up with a plan to make their fleet of cars more handicap accessible, followed by an additional six months to implement the plan.

No Votes: Leslie Hairston (5), Susan Sadlowski Garza (10), Raymond Lopez (15), Toni Foulkes (16), David Moore (17), Rick Munoz (22), Roberto Maldonado (26), Chris Taliaferro (29), Milly Santiago (31), Scott Waguespack (32), Nick Sposato (38), John Arena (45)

Vote On Airbnb Regulations: Despite vocal concerns from Ald. Michele Smith(43), who has some of the highest concentration of Airbnb rentals in her Lincoln Park ward, the Airbnb ordinance passed out of Council with seven aldermen voting against. Even one the most vocal opponents of Airbnb and its business practices, Ald. Brendan Reilly (42), voted in favor. He did warn he’d be keeping a close eye on the Department of Business Affairs and Consumer Protection to make sure the company adheres to the new policies. “I suspect when Airbnb shows their true colors, we’ll be back here in a few months to put more strict regulations in place,” he said.

No Votes: Sue Sadlowski Garza (10), Patrick Daley Thompson (11), Marty Quinn (13), Derrick Curtis (18), Scott Waguespack (32), Michele Smith (43), John Arena (45)

Other Divided Votes (Where Roll Wasn’t Called)

Four Aldermen Vote Against Aviation Contract over Minority Hiring Issues:There was no roll call vote on an ordinance amending an agreement with Aero Chicago LLC for a new 400,000-square-foot cargo facility at O’Hare Airport, but four aldermen asked to be recorded as no votes. The debate was largely over minority hiring. When the item was brought up in committee on June 15, Ald. Dowell scolded John Leach, the Chief Operating Officer at the Department of Aviation, and Juan Manzano, a representative from Aero Chicago, for not having a detailed breakdown of minority hiring numbers. She had asked for that information ahead of yesterday’s vote.

At the full City Council meeting, Ald. Dowell explained she was voting no on the item, “to send a message to the Department of Aviation and Commissioner [Ginger] Evans, that we must have a greater and stronger commitment to real diversity at contracting at the airports.” Noting that the contractor had “dismal participation from African Americans, only five out of 50 contractors for the company are African American, Ald. Dowell urged Aviation Chairman Mike Zalewski (23) to hold committee hearings to discuss how the Department of Aviation could do more outreach to minority-owned contractors. Three aldermen joined her in voting against the agreement.

No Votes: Ald. Pat Dowell (3), Sophia King (4), David Moore (17), Willie Cochran (20)

Abstentions: Ald. Ed Burke (14)

Vote On Transgender Access to Public Restrooms: This ordinance, drafted in response to North Carolina's controversial law by Mayor Emanuel, the Council’s LGBT Caucus, and Ald. Ed Burke (14), would prohibit a private business or public venue from requiring that patrons show ID proof of gender when using the restroom. The item wasn’t called up for a roll call vote, but five aldermen asked to be recorded as no votes.

Those aldermen who voted against it raised concerns over enforcement of the changes when it was brought up in committee. They said it would be hard for police to determine if someone was abusing the law (Ald. Thompson had given the example of a person at a White Sox game choosing which bathroom to use based on wait times, not gender identification. Ald. Napolitano had questioned what would prevent a man from going into a woman’s locker room to watch women shower and telling law enforcement officials, when questioned, that he had a right to be there because he is transgender.)

No Votes: Patrick Daley Thompson (11), David Moore (17), Willie Cochran (20), Nick Sposato (38), Anthony Napolitano (41)

Proposed City-Wide Ballot Referenda: Municipal ID Question Held 

Only two of the three proposed ballot referenda for the November Election made it out of Council yesterday: Mayor Emanuel’s question on gun control and Education Chairman Howard Brookins, Jr.’s (20) question about equitable funding of Chicago Public Schools.

Rules Committee Chairman Michelle Harris (8) held Ald. Danny Solis’ (25) question about Municipal IDs for undocumented immigrants living in Chicago, after immigrants rights groups lobbied the mayor to remove it from consideration. The groups were concerned that given the political climate over immigrants, largely due to the presidential campaign of Donald Trump, the ballot question could lead to unfavorable results, and that civil rights issues should not be put on a ballot.

Ald. Carlos Ramirez-Rosa (35), who almost made an attempt to block the Municipal ID question when it was brought up in Rules Committee by requesting a quorum call, told Aldertrack yesterday that the question would set a dangerous precedent. City’s shouldn’t legislate civil rights through referendum, he explained, noting that other cities, like New York, bypassed that step and made it official city law.

Since state law limits the number of ballot referenda to three per jurisdiction, there’s still one spot open. That could give the Progressive Caucus another opportunity to put pressure on Aviation Committee Chairman Mike Zalewski (23) to bring up a proposed ballot referendum question asking voters if Chicago’s airports should be governed by an independent body instead of the Department of Aviation. It was the only proposed ballot question not sent to the Rules Committee. But it’ll likely face an uphill battle, as Ald. Joe Moore (49) yesterday introduced yet another ballot question, which was sent to Rules Committee. It would ask voters: "Should the City of Chicago establish a policy of not investing City funds in corporations that produce fossil fuels?"

The City Council has until August 22 to adopt the three advisory questions that will go to voters in the upcoming November election. And petitions to file an advisory question must be filed by August 8 with 8% of the total votes for governor cast in the last election within that jurisdiction, or 52,519 signatures for Chicago. Once the three slots are filled, no further questions may be submitted.

Unscathed: Paid Sick Leave, Towing Bill of Rights, Wrigley Plaza

Three ordinances with a big impact on business passed the Council unchanged and without debate. There was no comment for Ald. Tom Tunney (44) and Mayor Rahm Emanuel's compromise ordinance establishing limits for the new outdoor plaza at Wrigley Field. The item sailed through License Committee earlier this week, despite concerns from representatives from the Chicago Cubs, who said their hands were tied by limits on big events. It joined the towing bill of rights ordinance championed by Ald. Ameya Pawar (47). The ordinance is aimed at cracking down on ill-reputed companies like Lincoln Towing. Pawar has argued the company should be stripped of its license by the Illinois Commerce Commission. Both the plaza and the bill of rights passed easily during committee reports.

Paid sick leave passed with more pomp, including short speeches from the ordinance's lead sponsors, Ald. Pawar, Ald. Toni Foulkes (16), and Ald. Proco Joe Moreno (1), as well as the mayor. Each aimed squarely at accusations from big business groups–the Illinois Retail Merchants Association and the Chicagoland Chamber of Commerce–that the ordinance overburdens businesses in Chicago.

“I know that the opponents of this will say that all we’re doing is continuing to layer on one thing after another to businesses,” Pawar said. “We are also layering good public policy that helps people get out of poverty.” He says the rules establish a “baseline of decency” that build on five years of progressive citywide ordinances including minimum wage, protections against wage theft, and the Chicago Transit Authority’s ex-offender program.

“I consider this a pro-family policy,” he the mayor said, not anti-business. “While this is a contribution and complement to the minimum wage… it is my fervent hope that the state of Illinois catches up. There are a lot of people in the city of Chicago that work outside the city that are making less than the minimum wage here in the City of Chicago.” 

After the vote in a statement to Aldertrack, Mike Reever, VP of Government Operations for the Chamber, said he was encouraged by a brief mention by Ald. Pat O’Connor (40) yesterday that there was still room for negotiation. “It was clear to me that there’s work that remains to be done… and there’s an opportunity to address that in the rulemaking,” O'Connor, the Chair of the Workforce Development and Audit Committee said. “When we pass something, it doesn’t mean it’s over, it means it’s part of a dynamic and it continues.”

Reever said his organization, which will be included in the rule making process, will have to wait and see how much wiggle room they’re allowed. “If it's the same rules process that got us the cloud tax, it's not a good rules process.”

Despite heated public testimony and numerous insults thrown at Ald. James Cappleman (46) for his support of reimbursing JDL Development with $11.2 million in TIF funds for their proposed luxury high-rise for the former Maryville Academy site, the item advanced out of Finance Committee yesterday. Two aldermen voted against it.

Attendance: Chairman Ed Burke (14), Pat Dowell (3), Sophia King (4), Leslie Hairston (5), Greg Mitchell (7), Michelle Harris (8), Anthony Beale (9), Patrick Daley Thompson (11), George Cardenas (12), Marty Quinn (13), Raymond Lopez (15), Toni Foulkes (16), David Moore (17), Matt O’Shea (19), Mike Zalewski (23), Roberto Maldonado (26), Walter Burnett (27), Jason Ervin (28), Ariel Reboyras (30), Scott Waguespack (32), Carrie Austin (34), Emma Mitts (37), John Arena (45), James Cappleman (46), Harry Osterman (48)

Ald. Proco Joe Moreno (1) and Ald. Harry Osterman (48), the sole opponents, requested a roll call vote on the agreement. Both argued it was inappropriate for the city to use tax increment financing dollars to support luxury units. Both cited hot button personal issues: for Osterman, the use of TIF funding to help Chicago Public Schools, and for Moreno, luxury developers paying into the city’s affordable housing fund rather than building affordable units on site.

According to Aarti Kotak, the Managing Deputy Commissioner for Economic Development with the Department of Planning and Development, JDL will construct a 381-unit residential high-rise with 36,000-square-feet of commercial retail space at the vacant Maryville Academy site on the corner of Montrose and Clarendon. The building has been vacant for more than a decade and the Montrose Clarendon TIF was created specifically to encourage development of the site. The property within the entire TIF is currently tax exempt, but is expected to generate $2 to $3 million in annual property tax revenue once the high-rise is built.

All the money collected through the new TIF, about $15.7 million, will be given back to the developer. $4.6 million will be immediately put in an escrow account to pay for improvements at the neighboring Clarendon Park within 6 to 8 months of the building’s completion. Construction of the new building is scheduled to start this August.

“These are luxury units on the lakefront, am I correct?” Ald. Osterman asked Kotak after her testimony. “I don’t think there is another piece of lakefront land that will be developed in the next 15 or 20 years. So this site is going to be marketed as the last piece of lakefront land developed. So it’s going to be luxury units smack dab there.”

Twenty of the units, about 5% of the total, will be made affordable. The remaining will be sold at market rate. Since the project was first introduced under the 2007 Affordable Housing Ordinance, now sunsetted with more stringent requirements, the developer is paying about $5.7 million in in-lieu fees to the affordable housing trust fund.

“If the developer wants to develop luxury units on the lakefront, albeit it’s a tough corner, we should not be extending TIF funds. Bottom Line,” Ald. Osterman explained, prompting cheers from the gallery. Dozens of Uptown residents, most of them with the community group One Northside, attended the meeting to oppose the project. “I’m not doing this for the applause. I don’t see this is in the public interest.”

“I find it incredibly troubling, given the financial situations that we’re in with CPS and all of our places, that we are going to use TIF funds for luxury units,” Osterman added. Numerous opponents echoed his argument during public testimony.

Osterman was also skeptical that the Park District would properly use the funds for the improvements at Clarendon Park. “They promise a lot but they don’t deliver,” he claimed.

“I agree 100% with what he said,” Ald. Moreno added. “It just doesn’t pass the smell test.”

Members of the public were less kind about the project, raising the issue of the the homeless population living under the viaducts near Montrose Beach and claiming the City Council was condoning segregationist policies. A few witnesses insulted DPD Commissioner David Reifman, suggesting he made his money as a zoning attorney by rigging the system and taking advantage of tax breaks. One characterized Ald. Cappleman as “corrupt and greedy.”

“You should be stripped of your social work license,” said Patricia Snowden told Cappleman. A self-proclaimed lifelong resident of Uptown, she called the agreement “utterly reprehensible.” 

This went on for more nearly two hours, as Chairman Burke waived the three minute limit to testimony until the meeting started to eat into the scheduled time for the Airbnb hearing. Even Ald. Nick Sposato (38) made a point to tell the witnesses in the gallery to “stop with the personal attacks.”

Ald. Cappleman, who spoke last, gave a similar speech to the one he gave at an earlier Plan Commission meeting, when the zoning for the the project was approved. “The perception that this TIF money could be used for other things doesn’t exist,” he said, adding that if the development agreement failed to pass nothing would be built at the site and no money would go toward the park improvements. The item passed 18-2.

The Montrose/Clarendon agreements, items 14 and 15 on the Finance Committee agenda, were the only ones to receive testimony, questions, and public comments. The remaining redevelopment agreements and Class L tax breaks advanced out of committee unanimously by voice vote.

Chairman Burke abstained from voting on the Class L tax break for a two-story, 21,375 square foot red brick building in the landmark Fulton Market area owned by Sterling Bay, citing Rule 14.k

Highlights of Approved Items 

• TIF For Pullman Whole Foods: The committee approved a redevelopment agreement with Chicago Neighborhood Initiatives Inc. that would support the construction of a new Whole Foods distribution center in Pullman. The company plans to move from its Indiana location once complete. Local Ald. Anthony Beale (9) called the project a “huge testament” to Pullman improvements following the area’s growth after it won designation as a federal national historic monument. The distribution center is expected to create 150 new jobs. Whole Foods has signed a community benefits agreement committing to local and minority hiring, Ald. Beale said. Interestingly, the amount of the TIF to be dispersed, $7.4 million, was not mentioned prior to the voice vote.

• $3.4 Million in Police Settlements: Going out of the regular order of business, Chairman Burke called up three police settlements near the start of the meeting (right after the Pullman TIF was approved). Steve Patton with the City’s Law Department testified on the largest settlement, a $2 million payout to Saremm Saenz and her young son, Moises Motato, who were struck by a squad car while crossing the street. Ald. David Moore (17) asked for a quick synopsis of the settlement. According to Patton, Saenz was crossing the street with her son at 9:30 p.m. when an officer, who was making a left turn, hit both of them.
  
  The officer claims he didn’t see the two crossing the street. Camera footage obtained from a nearby business shows the two plaintiffs had the right of way. “The driver wasn’t speeding or distracted, he just didn’t see them,” Patton explained. The son had a pre-existing medical condition where his organs are located outside his body, Patton said, and the accident exasperated the condition. Both survived, but the son racked up $500,000 in medical expenses. The family originally asked for $7.7 million. The other two settlements are for police related shooting incidents, and no questions were asked regarding those matters.

• Comptroller Appointment: Erin Keane, the city’s acting Comptroller, faced a relatively warm reception from the Finance Committee, although she was immediately pressed for specifics on how she plans to address the backlog of unpaid fines and parking tickets owed to the city, health insurance plans for city workers, and the payment system for delegate agencies. As a city of Chicago employee since 1996, Keane has worked in the city’s Department of Environment, spent eight years in the Budget Department, and has been with the Finance Department for the past two years.
  
  She said she hasn’t found a replacement for her old position as First Deputy Comptroller, so she’ll be acting in both capacities for the time being. In her brief opening remarks, she mentioned her time with the city, her residence on the South Side and her two sons who attend CPS. “My chief focus will be ensuring that we are operating as efficiently as possible,” she explained. But when asked by Ald. Scott Waguespack (32) what specific recommendations she has to address the backlog of city fines, she asked for more time to get the lay of the land and come back with “concrete answers.”
  
  Ald. Harry Osterman (48) also took the opportunity to urge Keane to work with Chicago Public Schools as it faces a $1.1 billion budget deficit next school year. “I think we need revenue, and positive revenue ideas. I think we also need to look at trying to help support CPS. While it’s a sister agency, even the best case scenario out of Springfield is going to leave us short. That’s going to have a devastating effect on families in Chicago, students in Chicago.” Ald. Osterman said he’s already seeing families flee his ward because of school funding uncertainty.

A joint meeting of Housing and Zoning Committees approved a rework of Mayor Rahm Emanuel’s proposal to regulate Airbnb rentals in Chicago after provisions were added to provide more community control over where those units could be located in neighborhoods made up predominately of single-family homes.

Attendance: Chairman Danny Solis (25), Chairman Joe Moore (49), Pat Dowell (3), Sophia King (4), Leslie Hairston (5), Greg Mitchell (7), Michelle Harris (8), Anthony Beale (9), Sue Sadlowski Garza (10), Patrick Daley Thompson (11), George Cardenas (12), Marty Quinn (13), Raymond Lopez (15), Toni Foulkes (16), David Moore (17), Matt O’Shea (19), Mike Zalewski (23), Roberto Maldonado (26), Walter Burnett (27), Jason Ervin (28), Ariel Reboyras (30), Scott Waguespack (32), Carrie Austin (34), Emma Mitts (37), Marge Laurino (39), Brendan Reilly (42),  Michele Smith (43), Tom Tunney (44), John Arena (45), James Cappleman (46), Harry Osterman (48)

The item considered yesterday was a direct introduction to the joint committee on Housing and Zoning Committees. The previous plan that advanced out of a joint License and Housing Committees meeting last month, but was held in committee, will not advance for a full vote. Confusingly, yesterday’s item had the same ordinance number. An aide for Ald. Joe Moore (49) says it will be assigned a new ordinance number.

The item up for a full City Council vote today makes it possible for residents living in R1, R2 and R3 zoned districts to organize and block Airbnb rentals from locating in their neighborhood through a process similar to the one the city uses to create moratoriums on liquor licenses. Those districts are zoned specifically for single-family homes.

But R4, the zone for multiflat units, was left out of the compromise ordinance, an issue that didn’t sit well with Ald. Michele Smith (43), who due to the committee switch couldn’t vote on the plan yesterday. Smith testified that those buildings make up a majority Lincoln Park, and even presented a large map of her ward at the meeting, expressing worry that corporate investors would buy up those properties and put all the units on the Airbnb platform.

Under the community approval process, residents within a specific precinct would be able to the petition their aldermen to institute a moratorium on Airbnb rentals. Depending on the number of signatures gathered and the amount of public opposition, the local alderman, in turn, could introduce an ordinance blocking new rentals from going on the platform. But the number of signatures needed is lower than those for liquor moratoriums, which requires a majority of registered voters in a precinct. 

But as is the case with the liquor moratoriums, existing rentals that are properly licensed for vacation rentals would be grandfathered in.

As was the case with the last hearing on Airbnb, several aldermen raised doubts the city has the resources to effectively track rental units and crack down on bad actors. According to Business Affairs and Consumer Protection Commissioner Maria Guerra Lapacek, a list of buildings that prohibit Airbnb rentals will be place on the city website for public view.

If a renter sees that their apartment or home is on that ineligibility list, they’ll have up to ten days to contest it. The city would then have up to 60 days after the hearing date to make a final determination on whether that person can rent out their home. On average, the process should take about a month, said Commissioner Lapacek.

“It seems like we are loosening regulations in higher density areas and we are over-regulating, like Mabel, who is renting out a room because she has to feed her kids,” Ald. Sue Sadlowski Garza (10) said of the new changes. It was a claim that directly contradicts the recent flood of Airbnb commercials that argue the city is siding with the Gold Coast and the “one percent” in the ordinance.

As for the 4% surcharge that would be added on all Airbnb rentals to fund homeless initiatives, Airbnb would be responsible for collecting those fees and remitting them to the city. A small percentage of those fees collected would cover the city’s cost of regulating Airbnb rentals.

The issue of how future assessments could be impacted by Airbnb rentals was also a point of contention. Ald. Smith asked if three-, four-, and five-flat homes owned by LLCs solely for the purpose of renting out the units on Airbnb would be taxed at the same rate as bed and breakfasts. Under the Cook County property tax code, bed and breakfast establishments are taxed as commercial buildings, which is twice the rate as residential. No one from the city or Airbnb had an answer to that question.

And in an interesting twist, Airbnb retained Mike Kasper, a well known lobbyist closely connected to Speaker Mike Madigan and who argued Mayor Rahm Emanuel’s residency, as their counsel. He appeared before the committee yesterday to say Airbnb believes the ordinance is “okay” but could be improved.

Airbnb is opposed to the limit of rentals in high-rise buildings, argued Kasper, because it creates a system of “winners and losers.” For example, he said, a 100-unit high-rise building where only 6 units would be allowed to go on the Airbnb platform is unfair, because those six units would be more valuable than the remaining 94. He also anticipated a mad rush for licenses, given the limits on units. He said Airbnb would have prefered if the limit was imposed on the number of units at any given time, and not the number of units that can operate on the platform.

But Airbnb doesn’t plan to sue the city over the regulations, said Chris Nulty, Public Relations Director for the company. He told Ald. Brendan Reilly (42), who has repeatedly argued Airbnb purposely doesn't follow laws it doesn’t like, that the city wouldn’t get slapped with a lawsuit after the regulations become law.